More isn’t always better. It’s not uncommon to have several retirement accounts, especially if you’ve changed jobs a couple of times. However, it’s not a good idea to leave your retirement accounts behind when you make your exit. It’s just too easy to forget about them. Instead, your best bet is to do a rollover. And, as tempting as it might be, don’t cash out and take a lump sum. That’s because you’ll be hit with a 10% early withdrawal penalty in addition to income taxes on the money you receive if you’re younger than age 59½.
Next: Don’t let a smaller paycheck scare you.
You might not be saving as much as you could because you don’t like seeing a smaller paycheck. Sure, it feels good to see a bigger paycheck, but failing to contribute to your retirement account is not going to serve you well in the long run. If your employer offers to match your contributions, make an effort to at least save up to the match so you don’t leave free money on the table.
Next: Divorce is the real retirement killer.