Retirement Money Is for Retirement. Period.

November 7, 2014

by Michelle Perry Higgins

The biggest misconception many people seem to have about their retirement savings is that it should be accessible for things they want prior to retirement.

Retirement savings should remain untouched until your golden years. Purchasing a car with funds from your 401(k) plan is not a good idea when you are 40 years old. Going to the Bahamas for your big 50th birthday celebration with all your friends, and paying the bill by liquidating your Roth IRA does not make sense.

It is tempting when you see the stock market hit historic highs to buy into the market euphoria and forget that what goes up must someday come down.  Remember, you will need every last penny of your retirement savings for your retirement.

Disclaimer: Emergencies can occur where tapping retirement savings are the only option, although this should always be a last resort.