Are you sabotaging your retirement savings?

It's hard enough to save for retirement with our current financial obligations, and maybe it's time to make some changes that will have a lasting effect. If you're hoarding cash, living paycheck to paycheck, or constantly running up credit card debt, you are likely lowering your retirement savings. Source Are you aware that you may be sabotaging your retirement savings, but don't know it? As you are probably well aware, it can be difficult to save for retirement. Between mortgage payments, utility bills, pricey vacations, and your daily latte habit, it might seem like there simply isn't room in the budget to save for retirement.
Source Maybe, when you think of saving for retirement, it's easy to get discouraged by the sheer magnitude of the task. But helping yourself would be easy if you took on some simple habits — the right ones — that would help you accomplish your savings goals.
Source The good news is that small changes can make a big difference. And the bad news is you probably aren't doing most of these things. Here are seven money habits that hurt your retirement savings.

You Aren't Automating Your Savings.

Source If you aren't automatically transferring a fixed percentage of your income into your retirement account, you are likely missing out on some serious savings. By automating your savings, you can make sure that you are contributing regularly to your retirement fund without having to think about it. This is a great way to ensure that you are staying on track with your goals.

You Are Withdrawing from Your Retirement Account.

While it may be tempting to dip into your retirement savings when you need extra cash, this is generally not a good idea. Not only will this reduce the overall amount of money that you have saved for retirement, but it can also trigger taxes and penalties. If at all possible, try to avoid withdrawing from your retirement account until you are ready to retire.

You Aren't Diversifying Your Investments

Many people are afraid of losing money in the stock market, so they invest only in safe, low-yielding investments like bonds and CDs. While it's important to diversify your portfolio, investing too conservatively can hurt your chances of having enough money to retire comfortably.

Investing in a variety of different assets is important for two reasons. First, diversification helps to protect against losses in any one particular investment. Second, it can help improve overall returns by giving you exposure to a wider range of investments. When saving for retirement, be sure to diversify your investments across multiple asset classes such as stocks, bonds, cryptocurrency, real estate, etc.

You Are Paying High Fees

There are a lot of ways to save for retirement, but some methods come with higher fees than others. Be sure to compare the fees associated with different investment options before deciding where to put your money. Every dollar that you pay in fees is one less dollar that is working for you and growing over time.
Source For this reason, it is important to try to keep fees low when investing for retirement. Look for index funds with low expense ratios and avoid actively managed funds that tend to have higher fees. In addition, beware of hidden fees such as commissions and advisory fees which can eat away at your investment returns over time.

You aren't reviewing your progress Regularly

Source It's important to periodically review how much progress you've made towards your retirement goals so that you can adjust your savings plan if necessary

Not contributing to a 401(k) or IRA

Even if you have a low-paying job, every little bit counts when it comes to retirement savings. If your employer offers a 401(k) match, be sure to contribute at least enough to get the full match. At the same time, withdrawing from that retirement account sabotages you too.
Source Once you've started saving for retirement, resist the temptation to spend those funds on other things. Withdrawals from 401(k)s and IRAs are taxed as income, so you'll end up paying more in taxes than you would have if you'd left the money alone.

Not planning for long-term care costs

Source Long-term care costs can eat up a large chunk of your retirement savings if you're not prepared for them. Be sure to factor in these costs when planning for retirement so you don't end up with an unpleasant surprise down the road.

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