Your Money Tips

Your 401K, which is a retirement plan that’s funded by both your employer and yourself, plays an extremely important role in the overall makeup of your retirement fund.  Think of your 401K as the meat and potatoes of your retirement planning: it’s one of the few funds that grows tax-free until your retirement and is portable from company to company.  Without the 401K retirement fund as an investment strategy, your retirement dreams can quickly become bust – fast!

 

So how can you make sure that your 401K retirement fund stays protected, especially during harsh economic times?  Simple: stay involved in your company’s investments!  This is your money!

 

Thanks to historic examples like Enron – coupled with the bust economy that we are now facing – many baby boomers fear that they’re 401K’s are in danger. Not to worry: there are some government regulations in place that protect your retirement fund.  However, it’s important to make sure that your company is doing proper investment research and allocating your funds across a wide and diverse portfolio of investments.  Remember, now that the stock market is so volatile, it’s important to educate yourself as to your company’s investment terms.  For example, be sure that no more than 10 percent of your 401K is invested in any one company; should that company’s stock plummet, your 401K could take years to get back on track. 

 

In other words, read the fine print of your 401K retirement fund!  Always do your due diligence and ask questions and speak up if you in any way feel uncomfortable.

 

It is important to do your research before deciding on any investments-do your homework. For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401K experts!

 

 

Authored by Kenneth Himmler, Sr.