Once you’re in the habit of saving for retirement, it’s easy to put everything on auto pilot — you have a little going into your 401k, an auto payment to an IRA and maybe even some regular stock purchases. But this good habit can turn on you if you don’t keep an eye on things.
“Some people will take an income from their 401k that they may not necessarily need to live on and begin putting that into a savings account,” said Toumayants. “Psychologically, you feel good about growing your savings account but in actuality, you’re taking funds from a higher producing asset into something that is giving you little to no return on investment.”
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