401k Tips and AdviceIf you have a 401k plan or other retirement plan at work, Consider these 401k tips...
If you want to retire comfortably , you are probably not depending entirely on social security. Common ways to save for retirement include 401k plans, roth IRA ‘s, and conventional IRA’s etc. wer are all familiar with these types of savings plans but that is only part of equation. Once you set aside the money, you still need to decide how to invest it. That's where you need some sound 401k advice Growth and income funds, bonds, conservative insurance contracts, are just a few of the many choices available as 401k retirement investments.
If you are a little confused about all the options available, here are a few 401k tips: Contribute at least enough to benefit from a company match if you have that option. That’s a no brainer and you are giving away free money if you are not contributing at least enough to get the maximum company match. Beware of company stock - If you have a choice about investing in your own companies stock as part of your portfolio, just say no. That makes for too many eggs in one basket. Keep it simple – even though diversification is a good thing, investing in too many options makes it more difficult to track and manage. Along with some bond and money market investments, most money experts also recommend having a portion of your retirement savings in stocks. But how much?Here is a simple rule: subtract your age from 100 and invest that percentage in stocks.Example : A 40 year old makes for this formula 100 – 40 = 60% invested in stocksThe remainder can be divided evenly between money market and bond funds. Review it – Review your account regularly…at least once a year, and make adjustments as needed. As you get older, the 100 minus your age formula becomes a guide for moving money around and shifting some out of stock funds. Beware of fees – Making excessive trades in and out of funds that carry heavy fees can erase most of your earnings.
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