Trump said he doesn't see a recession after the bond market spooked investors and the Dow suffered its worst day of the year last week.Marketsread more
Ahead of the deadline, U.S. President Donald Trump told reporters that Huawei was a national security threat.Technologyread more
Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
Stocks in Asia edged up Monday afternoon as U.S. Treasury yields bounced higher after plunging last week.Asia Marketsread more
The problem with tanking equities lies elsewhere, writes Michael Ivanovitch, because traders see no end to America's unfolding trade disputes with Europe and China.World Economyread more
Beijing wants to use reforms to support a slowing economy.China Marketsread more
Trump said Cook made a "good case" that it would be difficult for Apple to pay tariffs, when Samsung does not face the same hurdle because much of its manufacturing is in...Technologyread more
The yield on the benchmark 10-year Treasury note briefly fell below the 2-year rate on Wednesday, a phenomenon in the bond market known as yield curve inversion, which is...Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
The hearing will now begin next Monday to allow time for the completion of a previous trial that revolves around former 1MDB unit SRC International, a Kuala Lumpur High Court...Asia Newsread more
"I don't want to do business at all because it is a national security threat," Trump told reporters.Technologyread more
Financial advisors who beat the save-early-and-often drum might want to stifle their agonized groans.
To that point, 59 percent of investors ages 18 to 34 say they already have taken money from their retirement account, according to recent research by E-Trade Financial. That figure has been growing steadily since 2015, when it was 31 percent.
"There's a temptation to access retirement accounts, but it should be an option of last resort," said Mike Loewengart, vice president of investment strategy at E-Trade.
Despite the prevalence of these early withdrawals, most younger investors (89 percent) are either somewhat or very confident that they will save enough to enjoy their retirement, the research shows.
They also should make sure they fully understand the impact of tapping retirement savings before age 59½. Early withdrawals from 401(k) plan accounts and IRAs — excluding Roth versions of both — are subject not only to regular income taxes, but also a 10 percent early withdrawal penalty unless you meet one of a few exclusions.
On top of the potential tax cost, you're removing money intended to stay put so it can grow over several decades, experts say. In other words, when you withdraw, for example, $10,000, you're taking out more than that amount — you also are eliminating all the potential earnings and interest it would earn over several decades.
Those compounding gains are nothing to sneeze at. For illustration purposes: $10,000 invested in the S&P 500 index in January 1988 would have grown to $211,900 by the end of 2017, according to MoneyChimp's online calculator.
Despite the consequences, many people who find themselves in a financial pinch turn to their retirement savings. The top reason cited for the withdrawal was medical emergencies (23 percent), followed by education expenses (22 percent) and unemployment (17 percent).
However, 36 percent of workers who make early withdrawals do it to either make a big purchase, go on vacation or spend it on themselves or family.
"That's when it's about personal discipline," Loewengart said. "You have to be disciplined about your contributions during changing market environments and know the impact of compounding returns. If you're willing to take out the money for just any reason, you're jeopardizing your path to retirement."
Members of Generation X also are turning more often to their 401(k) plan for cash, with about 45 percent reporting having made early withdrawals. That's up from under 30 percent three years ago.
More from Personal Finance:
On the IRS naughty list: You failed to withhold enough pay for taxes in 2018
7 steps to start paying back your student loans
Online lending hasn't removed discrimination, study finds