How to Get the Most From Your 401K


Olde Hornet

Well-Known Member
https://www.yahoo.com/finance/news/most-401k-130000640.html

https://www.annualcreditreport.com/index.action - is where you go for your free credit report.

Perhaps you've heard of 401Ks or already contribute to one, and you're intrigued about how you can use them to fund your retirement. These employer-sponsored plans are there to help you do just that, so it's in your best interest to take advantage of one, especially if your company offers saving incentives, like a company match. We asked Robert Dowling, a financial planner with Modera Wealth Management in Westwood, New Jersey, who's worked with high net worth individuals for 18 years, for tips on getting the most from your 401K. Here's what he said.

1. Contribute More Than 3%

Most people who sign up for a 401K start out by contributing 3% of their salary, Dowling said. But if your budget can handle it, it wouldn't hurt to raise that percentage, even just a bit. "Try to participate as much as you can without putting yourself in dire straits," he said, noting the danger of overspending. Over time, your savings will thank you. "We suggest every year to work it into your expectations to increase your contributions by 1%," Dowling said. Some plans even allow you to fill out paperwork so your contributions rise automatically.


2. Enroll in Your Company's Match

"Take advantage of your company match to maximize company contributions," said Dowling. "It can be quite powerful." And besides, it's free money!
 
Honestly, Americans don't have a choice; and the bad part is that they don't know they have no choice. Employers' shift towards Defined Contribution retirement plans is corporate America's way of saying, "We're done providing for you when you leave us. Put on your big boy pants and take care of yourself.". I work with corporations and small businesses every day, and most have frozen their pensions or they have never had one to begin with.

A 401k can be a gift and a curse because they are impacted by the market. Some years I've had a 30% ROI. During the recession years, I lost thousands of dollars. Luckily, I was in my 20's. But I had co-workers in their 50's and 60's who had to put retirement on hold.
 
Click here to visit HBCUSportsStore
Back
Top