Personal finance tips: Why you shouldn't raid your 401(k), and more

Three top pieces of financial advice — from planning a career change to what to know about secured cards

401-K
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Don't raid your 401(k)

Quit treating your retirement savings like "a piggy bank," says John Schmoll at Daily Finance. More and more Americans are "pilfering from their 401(k) accounts." In 2011, American workers withdrew $57 billion from their 401(k)s prematurely — a 37 percent increase from 2003. The trend has been fueled in part by younger workers cashing out of their company-backed savings plans when they change jobs. But early withdrawals are not good. In fact, the best thing to do when switching jobs is to either open an IRA or roll your existing 401(k) into your new employer's plan. "Not only will this allow you to avoid losing money due to early withdrawal penalties, but it will also keep the power of compound growth on your side as you build up a retirement nest egg."

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Sergio Hernandez is business editor of The Week's print edition. He has previously worked for The DailyProPublica, the Village Voice, and Gawker.