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15 Retirement Mistakes That Will Ruin Your Retirement

Reader's Digest Logo By Sheryl Nance-Nash of Reader's Digest | Slide 1 of 15: Your 401(k) is not a checking account. You can withdraw from it, but it should only be done in emergencies when all other options are exhausted. You will get hit with taxes and penalties if you withdraw from a 401(k) before age 59 and a half. 'It could cost you at least 25 percent of what you withdraw, not to mention you will need that money later,' warns Matthew Peck, a certified financial planner and co-founder of SHP Financial. 'Every dollar you take out of your 401(k) early will cost you $10 to $20 in lost future retirement income. Leave the money alone so it's there when you need it,' he says. Here's the perfect retirement age (it's not 65).

Withdrawing early from retirement accounts

Your 401(k) is not a checking account. You can withdraw from it, but it should only be done in emergencies when all other options are exhausted. You will get hit with taxes and penalties if you withdraw from a 401(k) before age 59 and a half.

'It could cost you at least 25 percent of what you withdraw, not to mention you will need that money later,' warns Matthew Peck, a certified financial planner and co-founder of SHP Financial. 'Every dollar you take out of your 401(k) early will cost you $10 to $20 in lost future retirement income. Leave the money alone so it's there when you need it,' he says.

Here's the perfect retirement age (it's not 65).

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