It’s tempting to tap your retirement savings or reduce the amount you’re investing when faced with conflicting financial priorities. Yet an increasing number of individuals are doing so without understanding the long-term implications.
Even in a strong economy there are large expenses that will tempt you to tap into your retirement accounts, from paying for a child’s education or wedding, to paying off credit card or medical bills. A weak economy makes it even tougher to stay the course. And while taking money from your 401(k), IRA, or another qualified retirement account may seem like a good solution at the time, it can create hardships down the road, forcing difficult lifestyle choices.