How Early Withdrawals from a 401K or IRA Kills Your Retirement

401k and IRA tips

Protect the money you worked so hard to earn, save, and invest with.

When it comes to investing your future, you need a calculated plan in order to preserve the majority of your savings. After all, the money you sink into a 401K or IRA is non-taxable until you withdraw it. Doing so early comes with hefty penalties which kill your retirement fund. Each time that you withdraw from your 401K or IRA early, you’re taking a gigantic risk with your financial future. You may wind up having nothing more than some lofty dreams if you’re not careful.

Tax-Free Contributions Until You Withdraw

Think about it for just a second so you understand the result of your actions. Throughout your working career, you have the opportunity to put money into a 401K or IRA without paying taxes on your earnings until you reach retirement age. Your employer may even offer to match your contributions up to a certain dollar amount as long as you don’t attempt to withdraw the money early.

What You Lose by Borrowing from Your Future

If an emergency situation arises and you choose to take money from your retirement account before you reach retirement age, you’re slapped with a hefty fine which reduces the amount of money that you receive after it has been taxed accordingly. It doesn’t earn you interest and you can lose out on what your employer would have paid in throughout the lifetime of the 401K if you decide to stop contributing to the fund yourself.

A Better Way to Invest

Buying gold, silver, and platinum with taxed dollars gives you a safety net when it comes to your retirement funds. Because the money that you used to purchase precious metals was already taxed at the time of purchase, it’s not subject to being taxed a second time when you decide to sell it. It’s an option that we give our customers who don’t necessarily want to transfer their IRA into a Gold IRA.

Even if you were to transfer funds, you’d be able to earn a significant amount of money off your savings given that you didn’t withdraw from your account early. A Gold IRA gives you the opportunity to invest in precious metals which are scarce, retain their value better than paper currency, and often increase in value due to customer demand. As your retirement fund grows, so does your confidence in caring for yourself as you retire.

Educating our customers about the importance of having emergency savings while contributing to retirement funds is key. It makes the difference between you being able to enjoy a long, healthy retirement and barely making ends meet. By adopting a future-thinking mindset, you’re able to avoid the pitfalls that come with having too little money saved for when you retire.

Your Ideal Lifestyle Awaits You with Red Rock Secured

Secure your ideal lifestyle during retirement with Red Rock Secured. Make the most that you can out of the investments you make while working. Transferring your retirement savings into a Gold IRA takes little time and effort. There are no fees or penalties involved in doing so, and you can keep your precious metals wherever you prefer including our high-security Depository.

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