A 401(k) plan for most is an easy way to save for retirement - if for no other reason than the money is taken from your paycheck before you have a chance to spend it. If your employer offers a 401(k) plan, sign up for it!
You probably know by now that you can build a sizable pool of savings if you take part in your company's 401(k) retirement plan. And guess what? Enrolling in a 401(k) is usually so easy.
One of the many great things about 401(k) plans is that your assets are usually “portable” when you leave a job, meaning you have the ability to take your benefits with you. But what should you do with that pool of retirement assets when the time comes?
When you build a 401(k) portfolio, one of the first decisions you will make is choosing how much of your money you want to invest in stocks vs. bonds. The right answer depends on many things, of course, including your experience as an investor, your age, and the investment philosophy you plan on using.
No one wants to see the retirement savings they worked for take a severe hit when the markets go south. But markets do go down, sometimes pretty dramatically. The truth is that these downward movements are inevitable for long-term investors.
Among the most important — and perhaps most intimidating — decisions you must make when you participate in a 401(k) plan is how to invest the money you are contributing to your account. The investment portfolio you choose determines the rate at which your account has the potential to grow and the income that you will be able to withdraw after you retire.
When it comes to retirement planning, it is never too early to start saving. Unfortunately, it is never that easy either. It is normal to procrastinate a bit when you are focused on bills that are due today and the things you want right now.
You probably do not think about your financial wellness in the same way you think about your healthcare. Most people do not, but there are plenty of good reasons why you should. The holistic approach you employ to achieve a higher standard of physical and mental well-being are similar to that you might apply to your financial wellness.
We know you have diligently been contributing to a 401(k) plan, and you have probably enjoyed seeing your net worth grow each year. For many Americans, a company-sponsored 401(k) account will be the most valuable piece of their retirement income pie someday.
You may have heard somewhere, probably on an online ad, that it takes more than a million dollars to retire. Whether or not that is true (it is not), many people feel they are not putting enough money away to last throughout retirement.
