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3. Buying too much of your company’s stock professional(s) before an appropriate investment
If your employer’s stock is an investment choice in strategy can be selected. Also, since our firm does not
your 401(k), you might want to consider limiting the provide tax or legal advice, investors need to consult
amount you own. With your salary already tied to your with their own tax and legal advisors before taking any
company’s fortunes, you may not want a sizable part of action that may have tax or legal consequences.
your retirement savings to be similarly dependent. This article was written by/for Wells Fargo Advisors
4. Borrowing from your retirement plan and provided courtesy of Christopher J. Carbone, CFP®,
Many QRPs offer loans to participants. Unless you AWMA®, LUTCF® First Vice President - Investment
need the money for an emergency, try not to use this Officer - Financial Advisor in New Hartford, NY at
option. Borrowing can be an expensive choice in two (315) 723-7386
ways: Investment and Insurance Products are: • Not Insured
· Smaller retirement savings: When you take out a by the FDIC or Any Federal Government Agency • Not
loan, you are losing the benefits of potential investment a Deposit or Other Obligation of, or Guaranteed by,
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growth, and that could leave you with a smaller the Bank or Any Bank Affiliate • Subject to Investment
Christopher J. Carbone Risks, Including Possible Loss of the Principal Amount
retirement savings. Also, if you stop contributing while Invested
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Avoid These Five you are paying back your loan, you won’t receive any Wells Fargo Advisors is a trade name used by Wells
employer matching contributions.
you are leaving free money on the table.!!"k#$+KkLLMkNO%P0+&3kL+KkL+$&ROQ/2K$V3kWQ1Vk593k<9)99kk[k U k Ugggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggk k +.&+ON1%&(.&3k65
If you are unable to contribute the maximum amount U%&k'55869:#k;k<869LMk=Q11+23kN./&k.&k(O+kN.Sk$&KkL++/3k'.T(k>/%&0<AkY+/kY+/2.&kk k\]^k_]_ak k k b cU ? kd? eHk=EF:'Fk=Cf*Rkggggggggggggkgggggggggggkgggggggggggkgggggggggk kk+$2$&(2kCQ&3k &%(k!k*-k566<6kA 7<A !6
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Retirement Mistakes · Repayment requirements: If you leave your employer, Fargo Clearing Services, LLC, Member SIPC, a
Making retirement planning errors at any time, but the plan may give a short period of time (e.g., 30 or registered broker-dealer and non-bank affiliate of Wells
Fargo & Company.
especially when there’s economic uncertainty and 60 days) to repay that outstanding balance. However,
market volatility, can create difficulties in achieving if not repaid, the outstanding loan balance is generally ©2020-2023 Wells Fargo Clearing Services, LLC. All
your long-term goals. Here are five common, and subject to income tax and possibly an IRS penalty for rights reserved. PM-04222026-7217273.1.1
potentially costly, mistakes you’ll want to avoid. younger workers.
1. Getting out of the market after a downturn In addition, cashing out of your 401(k) when you
When the market takes a big hit, you may be tempted move to a new employer might be costly. Know your
to sell investments in your retirement portfolio and distribution options when changing jobs.
hold the proceeds in cash. If you do, you may miss the 5. Underestimating the cost and length of retirement
gains if the market suddenly turns around. Some crucial factors to take into account:
Consider taking a long-term approach by keeping a · Longevity: If you retire around age 65, you could
strategic mix of asset classes in your portfolio: stocks, spend 25 years in retirement. As a result, you may need
bonds, and cash alternatives. The combination that’s to save enough to last that long, or longer.
right for you will depend on a variety of factors, · Health care: Even with Medicare, you could have
including how comfortable you are with market expenses for supplemental insurance, some prescription
volatility (risk tolerance), what you’re investing for drugs, and nursing home care.
(objectives), and how long before you’ll need to tap into · Lifestyle sticker shock: Retirees may need
your accounts (time horizon). approximately 80% of their preretirement income each
And think about periodically rebalancing by checking year.
your accounts to see if market activity has shifted your A financial advisor can help educate you regarding
investments away from your desired asset allocation. your options so you can decide which ones make the
If it has, you may want to buy and sell investments to most sense for your specific situation.
bring your accounts back into alignment. This article has been prepared for informational
2. Not taking full advantage of retirement accounts purposes only and is not a solicitation or an offer to
Consider contributing up to the maximum allowable buy any security or instrument or to participate in
amount into your qualified employer-sponsored any trading strategy. Investing involves risk including
retirement plan (QRP), such as a 401(k), 403(b), or the possible loss of principle. Asset allocation cannot
governmental 457(b) plan. This can help fund your eliminate the risk of fluctuating prices and uncertain
returns. The accuracy and completeness of this
information is not guaranteed and is subject to
and your employer offers a matching contribution, try change. Since each investor’s situation is unique you
to contribute at least as much as the match — otherwise, need to review your specific investment objectives,
risk tolerance, and liquidity needs with your financial