Get More Control of Your 401k: What It Can Mean for Your Future
Points to ponder as you consider what can be done to maximize your 401k returns:
1. Are you maximizing your 401k returns?
2. Does your plan work efficiently?
3.Do you need to maximize retirement income?
4. Want a simple yet powerful strategy to increase your retirement wealth?
For most people, their 401k investment strategy is “set it and forget it.”
it’s”.
This mentality has been around for a long time and has been perpetuated
by 401k administrators and human resources departments alike. Don’t make the mistake of thinking that these people know what is possible, or that they will tell you if they do, to maximize 401k returns.
Unfortunately, accepting the given type of strategy at your company will often result in suboptimal returns. However, many people believe that if there was more to earn, their employers would have a system in place to capitalize on that fact. They do not do it!
If you could implement a strategy to squeeze a little more out of your 401k plan, say 8% more each year, this would result in four times the amount of money you would have at retirement due to the power of compound interest!
Think about it for a minute: 4 times more than you could expect when you retire just by learning how to increase your performance by 8%.
it’s possible? Not only that, but people in the know are doing it by the thousands right now.
A very simple yet powerful 401k strategy that works with any 401k plan involves two things.
1. Awareness
2. Use of an index fund (where available)
By knowledge, I mean track the value of your 401k holdings on a weekly basis if possible. With this level of awareness, you can easily spot a portfolio decline. If you get close to a predetermined amount (5% to no more than the suggested 10%), you should switch to a money market. Or if you are well informed and have the ability to get into an index fund that is designed to profit from a decline (a bear fund).
The biggest advantage you will get is NOT letting your account value sink to such dismal levels that it takes a profit of 40%, 50% or more just to get back up to par.
This alone could significantly increase the size of your 401 over time.
Is this the only strategy that can safely increase your 401k return rate?
No problem. He just needs to know what most people won’t tell him. I have written a book on the subject called “Scientific Wealth Strategies”. You can find it at [http://wealthscientist.com]
There are also plenty of resources available online to help you understand what you can do with your 401k to maximize default returns no matter how your manager sets up your 401k now.
A site in our editorial network helps you find this information. It can be found here: http://www.401kinfo4u.com
The worst thing you could do is let your 401k sit mostly idle with the minimal returns you’re getting now. Calculate what it will be worth when you retire now compared to what you would expect when you retire with an 8% higher return.
That should get you interested in pursuing the education necessary for an entirely different kind of retirement savings!
