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Here Are the Biggest 401(k) Mistakes Each Generation Is Making

The article from AOL discusses common 401(k) mistakes made by Generation X, born between 1965 and 1980. It highlights that many Gen Xers are not saving enough for retirement, with the median balance being significantly lower than what is needed for a comfortable retirement. Key mistakes include not contributing enough to get the full employer match, which is essentially free money; withdrawing funds early, which incurs penalties and taxes; not diversifying investments, leading to higher risk; and neglecting to rebalance their portfolio as they age, which can expose them to unnecessary risk or missed growth opportunities. The article also points out the lack of financial literacy, leading to poor investment choices, and the failure to increase contributions over time to keep pace with inflation and rising living costs. It emphasizes the importance of starting early, understanding one's risk tolerance, and regularly reviewing and adjusting one's 401(k) strategy to ensure a secure retirement.

Read the Full AOL Article at:
[ https://www.aol.com/biggest-401-k-mistakes-generation-170000172.html ]