5 money disasters that could wreck your retirement

As easy as it can be to save for retirement, we often get sidetracked on the road to our golden years. Here are some pitfalls to avoid.

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VIDEO ON MSN MONEY

238Comments
Jan 1, 2014 12:50AM
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One pitfall not mentioned is helping family members with money problems. Do NOT give your kids money from your savings because you will never be paid back and it will encourage them to come back for more and when you can not give it will cause an argument. Do not count on anyone supporting you in your old age, it wont happen.
Dec 31, 2013 10:02PM
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Health issues and other situations beyond people's control do wreck some retirements, but by and large, the most common cause of wrecked retirements by far is bad planning and poor decisions.  Long-term stupidity has its cost.
Jan 1, 2014 11:21PM
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Pay yourself 10-15% first. It's a popular saying that if you can't live on 90% of your income, then you probably can't live on 100%. Whether its in a 401K or IRA, or whether its invested aggressively or more conservatively, the key is to just start doing it. Start in your 20s and you will have a sizable nest egg by retirement. Sounds simplistic but its definitely doable.
Dec 31, 2013 7:30PM
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Duh??   Missed the biggest issue...your health.
Jan 2, 2014 11:58AM
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Divorce is probably the most common retirement wrecker....

Dec 31, 2013 9:36PM
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"W-a-a-a-a-h!! I made bad choices and now I'm broke.  Other people OWE ME the money that they STOLE from me by doing their homework and making the right choices."

Ummm... No.
Jan 1, 2014 12:55AM
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If BOTH spouses are not good money managers then the one who is better take over the finances because many times the paycheck comes in and is wasted on trinkets and not used wisely. Many people just live for today and do not plan for their later years, then expect others to pay their way.
Dec 31, 2013 10:57PM
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I worked and my wife managed the finances. She did a terrible job. I was able to take over in time. I had to make a couple loans to pay off some debt. When I retired, I got a demand pay pension and SS. My pension is now guaranteed. My wife got a raise in her SS because of my earning level. We managed to save and invest some money. I avoided a couple of crashes in the market. Pulled all our money out of the market and invested in the money market. I am back in the market on a conservative track. We have no debt. Our house is not paid for, but that money was used for education of the kids. They got their inheritance front loaded and they won't know that until the wills are read. If the homes appreciate more I will get a reverse mortgage and take some of the money and put it away for home maintenance and the balance will spend as necessary.We are not rich, but we are ahead of most Americans who are or are facing retirement. We travel a little in retirement. We are fortunate that we enjoy staying home and doing yard maintenance and improvements as a hobby.
Jan 2, 2014 1:27PM
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I've got enough money to last me the rest of my life, as long as I don't buy anything.
Jan 1, 2014 11:49PM
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Forgot to add marrying a dirty lying pig.
Jan 2, 2014 3:47PM
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Pay yourself first. 10% of your gross salary into a savings account. This "bill" is more important than your car, credit card, or mortage payment and treat skipping a payment like you would a payment to a loan shark with a shotgun. Once you have six months of take home pay in that account, move the excess into an investment account. Only invest in safe stable assets like long-term mutual funds, real estate, dividend stocks with put option insurance, etc... this isn't play money.

 

If you can do this, you'll change your life forever. If you keep making excuses why you can't, you deserve your fate.

Jan 5, 2014 1:56PM
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i find it amazing how it was just the dems. or all the republicans fault. There are plenty of mistakes on both sides  to go around.  If your going to wait on gov. to fix everything so you can retire. good luck. There is  alot people cant control but not saving and bad spending while they cry how its not there fault is going to get you nowhere but broke. i work in manufacturing so does my husband we have to grown kids. we started an ira early and when our job offered 401k about 10years ago we got on that.  We dont have a new car or a house that we cant afford.  we have nice cars and a nice house and at 45 we have 250,000 in retirement are buying a house my parents live in and own a small house my son and wife live in. we dont make big money buy we have always put money away and read books on investing and take our retirement seriously. i have heard people at work on how they cant save but they have a new truck and she was wearing 100 jeans. no i guess she cant save. do what YOU can for YOUR self, sorry but no one else really gives a sh$t .
Jan 1, 2014 11:23PM
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Here's another mistake to avoid.


Believing that benny the counterfeiter is going to fix the economy!!!!


Hello?  FIVE GD years, and the economy blows as bad now for 75% of the population now as it did then.


And, the middle class is struggling even HARDER NOW, than it was THEN.


Jan 2, 2014 1:50PM
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As the "vote for a living"  crowd gets larger and larger under the democrats (and  since they didn't save schit) they will vote to grab a bigger bite of your wealth down the road. They will do this by implementing higher taxes on your retirement income and making SS benefits "need based" since they will need it more than you.
Jan 1, 2014 11:44AM
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Obamanomics is the biggest money disaster that will affect our grandchildren and theirs.
Jan 2, 2014 12:00PM
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Mistake #6.  Voting Democrat.  Guaranteed higher taxes, lower social security, cuts to medicare, medicare death panels and abusive property taxes to support condoms for chimpanzees.
Jan 1, 2014 10:13AM
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These are only a few that will wreck your life and not just your retirement! Most don't even take time to think about the possibilities....
Jan 2, 2014 1:53AM
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The Obama Pelosi 17 trillion dollar debt on our families will destroy our dollar, Obama promised to in half in 2008..Remember??? That was when it was at 8 Trillion...
Jan 5, 2014 7:28PM
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Now consider this: 

If I want to upgrade my policy to a low-deductible premium policy, such as what I had with my last employer, my cost is $886 per month. But my girlfriend can upgrade her policy to the very same level, for just $4 per month. That's right, $4 per month. $48 per year for a zero-deductible, premium healthcare policy - the kind of thing you get when you work at IBM (except of course, IBM employees pay an average of $170 per month out of pocket for their coverage). 

I mean, it's bad enough that I will be forced to subsidize the ObamaCare scheme in the first place. But even if I agreed with the basic scheme, which of course I do not, I would never agree to subsidize premium policies. If I have to pay $482 a month for a budget policy, I sure as hell do not want the guy I'm subsidizing to get a better policy, for less that 1% of what I have to fork out each month for a low-end policy. 

Why must I pay $482 per month for something the other guy gets for a dollar? And why should the other guy get to buy an $886 policy for $4 a month? Think about this: I have to pay $10,632 a year for the same thing that the other guy can get for $48. $10,000 of net income is 60 days of full time work as an engineer. $48 is something I could could pay for collecting aluminum cans and plastic bottles, one day a month. 

Are you with me on this? Are you starting to get an idea what ObamaCare is really about? 

ObamaCare is not about dealing with inequities in the healthcare system. That's just the cover story. The real story is that it is a massive, political power grab. Do you think anyone who can insure himself with a premium policy for $4 a month will vote for anyone but the political party that provides him such a deal? ObamaCare is about enabling, subsidizing, and expanding the Left's political power base, at taxpayer expense. Why would I vote for anyone but a Democrat if I can have babies for $4 a month? For that matter, why would I go to college or strive for a better job or income if it means I have to pay real money for healthcare coverage? Heck, why study engineering when I can be a schlub for $20K per year and buy a new F-150 with all the money I'm saving? 

And think about those $4-a-month babies - think in terms of propagation models. Think of just how many babies will be born to irresponsible, under-educated mothers. Will we get a new crop of brain surgeons and particle physicists from the dollar baby club, or will we need more cops, criminal courts and prisons? One thing you can be certain of: At $4 a month, they'll multiply, and multiply, and multiply. And not one of them will vote Republican. 

ObamaCare: It's all about political power.
Jan 1, 2014 2:45PM
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Don't get yourself into Roth or other "tax free" plans unless you know how the government will tax them in the future. No one has read the entire IRS tax codes and the same number of people understand it. The IRS has the same number of answers to a question as they have employees. Everyone already has a government retirement plan, Social Security. If you think I'm paranoid, no I'm not. I know the government, the financial planners, the insurance people and even some young women are not after me, but my money. The old saying goes "if you can't trust your wife, who can you trust"?  The answer is in the mirror.
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