Get More Control of Your 401k: What It Could Mean for Your Future
Points to ponder as you consider what can be done to maximize your 401k returns:
1. Are you maximizing the returns from your 401k?
2. Is your plan working efficiently?
3. Do you need to maximize retirement income?
4. Do you want a simple yet powerful strategy to increase your retirement wealth?
For most people, their 401k investment strategy is “set it and forget it.”
he”.
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 these people know what is possible, or will tell you if they do, to maximize 401k returns.
Unfortunately, accepting the given type of strategy at your company will often result in sub-optimal returns. However, many people believe that if there was more to be gained, 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, that would work out to 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 what you could expect when you retire simply by learning how to increase your performance by 8%.
it’s possible? Not only that, but the 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. Consciousness
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 are close to a predetermined amount (5% to no more than 10% suggested), you should switch to a money market. Or if you are knowledgeable and have the ability to enter an index fund that is designed to profit from a decline (a bear fund).
The biggest advantage you will gain is NOT letting your account value sink to such dismal levels that it takes a 40%, 50% or more profit just to get back to par.
This alone could significantly increase the size of your 401 over time.
Is this the only strategy that can safely increase the rate of return on your 401k?
You are welcome. 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 in [http://wealthscientist.com]
There are also plenty of resources available online to help you understand what you can do with your 401k to maximize your default returns no matter how your administrator now sets up your 401k.
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 near idle with the minimal returns you’re earning right now. Calculate what it will be worth when you retire now compared to what it would be worth when you retire with an 8% higher return.
That should get you interested in pursuing the education you need to get a whole different kind of retirement savings!