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5 Signs Your Financial Future is Dire
- Joseph Carpenito's Featured Quote:
You've raided your retirement account. If you've tapped into your retirement account, that's a big clue you may encounter financial trouble down the road. "I see many people make the same mistake, which I feel is a precursor for a future financial disaster," says Joseph Carpenito, a financial advisor in Boca Raton, Florida, at Raymond James Financial Services. Carpenito says he often will see clients with a 401(k) plan taking money out of their account in the form of a cash distribution.
"Most of these individuals are under 59 1/2 years old, and even after explaining the penalties and tax implications of taking an early cash distribution, I hear the same excuse: 'Well, it's only a couple thousand dollars.'
"Although now it only seems like a couple thousand dollars, investors are giving up growth and compounding interest potential, which over a long time horizon could be the equivalent of having hundreds of thousands of dollars less in retirement," Carpenito says.
Views expressed in this article are the current opinion of the author and are subject to change without notice. Information contained in this report was received from sources believed to be reliable,but accuracy is not guaranteed. Opinions expressed are not necessarily those of Raymond James or your financial advisor.