DON'T CASH OUT YOUR RETIREMENT SAVINGS
In the long run, it’s not just how much money you make that will determine your RETIREMENT. It’s how much of that money you put to work by saving and investing it.
If leaving your employer
One of the important financial decisions you will need to make is what to do with your retirement savings if you leave your current employer.
Changing jobs brings temptation that could impact the rest of your life. The option of withdrawing your retirement savings in cash is very tempting, especially if you start thinking about everything that you could do with that money. Short-term satisfaction seems to get the better of you, rather than weighing up the long-term benefits of preserving and growing your retirement savings.
One of the issues you will face along the way is cashing out your accumulated retirement savings when resigning. The consequences of this can be disastrous.
While saving for retirement throughout your career is important, preserving your funds when changing employers must be at the top of your list of priorities.
Preserve your funds!
Not cashing out your benefits will help to ensure that you are in a better position to retire comfortably one day.
If you do not preserve your funds:
Preserving your benefits will also earn you compound interest, where your interest earns interest.
The interest on your investment returns compounds over time, turning even modest savings into sizeable amounts after only a few decades. Compound interest means you are earning interest on interest. This is basically growth on growth. We are also living longer, so we will need even more money to retire comfortably.
NEVER CASH OUT – your future self will thank you!