Careful retirement planning is the key to enjoying your golden years, especially if you want to pursue other dreams after you stop working. However, common misconceptions and myths can lead to avoidable mistakes that could disrupt your retirement and put your long-term goals permanently out of reach. Below are a few facts experienced accountants wish everyone knew about retirement planning.

Dispelling 3 Common Retirement Planning Myths

1. You Should Pay Off Large Debts First

At first glance, paying off your student loans or credit cards before you start saving might seem like the best move, but saving for retirement should be your first priority. The most effective financial savings strategies rely on compound interest to grow your investments over time, so it’s always in your best interest to start as soon as possible. Even if you can only save a little every month, set that money aside and pay yourself before focusing on debts.

2. You Should Prioritize College Expenses

Every parent wants to support their children as much as possible, but think twice before spending your retirement savings on college tuition. If you’re in your late 30s or 40s, you likely won’t have time to make back anything you withdraw before retirement.

3. You Can Handle Planning Yourself

There might be a variety of online tools, books, and worksheets available, but these formulas won’t give results tailored to your unique goals and lifestyle. Hiring an accountant to create a customized savings strategy and establish benchmarks to measure your progress can be one of the best investments you’ll ever make.

For over 20 years, Gillette & Associates LLC CPA has been one of the top financial firms in La Crosse, WI. Their team of accountants offers wide-ranging expertise in everything from retirement planning to bookkeeping, giving them the tools to help almost everyone meet their goals and accomplish their dreams. Visit their website for an overview of their services, or call (608) 784-8355 to discuss your retirement plans with a skilled accountant.