Video: This Is One Way Millennials Are Destroying Their Financial Future
A 401(k) is a prime way to build wealth, but there are plenty of pitfalls to watch for.
A 401(k) is a prime way to build wealth, but there are plenty of pitfalls to watch for.
Anytime money is withdrawn from the account before the age of 59.5, a 10% penalty typically applies.
"If you look at the mistake millenials make, one out of three, when they leave their [job], cash out the 401k plan," said David Bach, founder of AE Wealth Management and a panelist on TheStreet's Investing Strategies for Millennials webinar. "If you want to destroy your retirement plan, leave your company and cash out it out."
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