|
Knowing Your 401k Plan.
By Simon Fox
Taking full advantage of your 401k plan today can help you
achieve financial goals sooner, and provide enough income for a
comfortable retirement. For most working people, Social Security
checks alone will not be enough to maintain the standard of
living they are used to, once they are no longer working. If you
are lucky, your employer offers a 401k plan which, if used
wisely and to the fullest advantage, can provide you with
additional income for your golden years.
401k plans differ greatly depending on the employer who sets the
rules. The only way to get the most out of the plan is to get to
know it and make educated choices.
Things you should know:
- What is the maximum percentage of your salary you are able to
contribute?
- Is your employer matching the contributions? If yes, what is
your minimum contribution, before your employer’s contribution
starts, and what is the maximum?
- What are the number of years you have to be with the company
(so called vesting) to be eligible for the employer’s
contributions to your 401k?
- How often can you switch among available investment options?
- Are earnings posted to your account on a weekly, monthly or
quarterly basis? When do you get your account statements? Note,
it is always more beneficial if earnings are added to your
balance more often.
- What methods can you use to access the account? By phone, on
the internet or only in writing?
- Did you spread your money among different investments to
reduce the risk?
- Did you learn enough about the investments you are using?
Do you know that 401k plans are not insured by the federal
government, and its investments are at risk? However, different
investments carry different degrees of risk. It is always best
to diversify your investments by investing in different types of
assets. To find out more about 401k investment options, ask your
plan administrator for information. Financial magazines,
prospectus and brochures can be a good source for learning about
particular investment options.
About the Author:
For more tips regarding
401k plan,
Roth IRA , and other
retirement investing topics visit: How Much? Related
Articles:
401k CODA - Cash Or Deferred Arrangement Plan - 401k Plan Facts
Cash Out 401k -
It's Your Money
Cash Out 401k To Pay Bills Or Pay Off Debt
Did You Forget About Your 401k?
Reg-108639-99
401k News:
Bing: 401k site:msnbc.msn.com
Search results
Index funds, ETFs gain popularity as 401k options - Business ...
Investors are becoming more price conscious. In response to the increased pressure to lower 401(k) costs, alternatives to traditional mutual fund ...
New 401k plan rewards for nothing - Business - Personal finance ...
New 401k plan rewards you for doing nothing Just-enacted pension law seen helping employees save for retirement Below: x Jump to discuss ...
Why did the housing mess clobber my 401k? - Business - Answer Desk ...
Why did the housing mess clobber my 401k? Also: What exactly does the Dow Jones Industrial average represent? Below: x Jump to discuss comments ...
How can I fight nuisance bank fees? - Business - Answer Desk ...
No matter where you invest, you'll still get the two main benefits of 401k that you wouldn't get from conventional savings: the tax advantages ...
'Super 401k' redrawing the route to retirement - Business - US ...
Ken Eason, 57, recently made what he describes as "one of the major financial decisions" of his life. The accountant's employer, Devon Energy, had offered ...
Newsfeed display by CaRP
|
Personal Finance Information
|