401(K) Now More Important Than Ever
Two years ago if you had a 401 (K) and went through the stock market crash, and financial panic, you were pulling your hair out of your head.
If you held on during the panic you were up 23% on average in 2009.
For 50 million 401(K) holders, you were far better off than bailing out.
Your first order of business is to tailor make the 401(K) to fit YOU, and YOUR investment objectives.
Don't go by what anyone else is doing.
This is your life, and your future.
What is your personality like? If you have decades to go before retirement, you need to be in growth stocks, or hedged for the future growth of the economy in the future.
Does anyone think America is not going to dominate the planet for at least the next 40 or 50 years? You can always talk to your boss about improving the 401(K) the company currently has.
Remember small, incremental changes over a long period of time have a huge impact.
Many employees will match your contribution or at least make a partial contribution to the plan, and you want to jump on it if this is the case.
That added contribution can amount to a fortune over a period of years.
Make sure your plan mails you constant statements that will tell you like your child's report card, how you are doing.
If you are unhappy with the boss's plan, tell him.
We have found that as long as his brother Herman isn't responsible for the plan, most bosses are very comfortable changing to something the employees are more comfortable with.
Some companies offer 401(K) plans that are ten times more informative than others, and that's what you want.
So hunt around until you find a company that is in your corner.
We have looked at hundreds of plans, and we are personally very surprised at how uninformative some plans are, while others bend over backwards to keep you informed.
Also keep in mind that fees charged for the 401(K) can really impact the returns.
Smaller companies which means smaller plans, can pay fees very often amounting to 3% of the gross investment.
Large companies tend to pay about 1% of the assets under control.
If you take the time to shop around, you can get those fees down close to 1%.
You will probably need to both switch the provider, and redesign the 401(K) plan you currently have.
We have dealt with this, and believe me, it's worth it.
We have seen dozens of companies with dozens of plans chop their fees in half with better service, but you cannot take an attitude of it will be okay, because it never is.
You must be proactive in the process.
In my next write-up I will deal with investment mix, and how much to put away.
If you need advice, get in touch, no axe to grind, and we are objective.
Visit us today StocksAtbottom.
com
If you held on during the panic you were up 23% on average in 2009.
For 50 million 401(K) holders, you were far better off than bailing out.
Your first order of business is to tailor make the 401(K) to fit YOU, and YOUR investment objectives.
Don't go by what anyone else is doing.
This is your life, and your future.
What is your personality like? If you have decades to go before retirement, you need to be in growth stocks, or hedged for the future growth of the economy in the future.
Does anyone think America is not going to dominate the planet for at least the next 40 or 50 years? You can always talk to your boss about improving the 401(K) the company currently has.
Remember small, incremental changes over a long period of time have a huge impact.
Many employees will match your contribution or at least make a partial contribution to the plan, and you want to jump on it if this is the case.
That added contribution can amount to a fortune over a period of years.
Make sure your plan mails you constant statements that will tell you like your child's report card, how you are doing.
If you are unhappy with the boss's plan, tell him.
We have found that as long as his brother Herman isn't responsible for the plan, most bosses are very comfortable changing to something the employees are more comfortable with.
Some companies offer 401(K) plans that are ten times more informative than others, and that's what you want.
So hunt around until you find a company that is in your corner.
We have looked at hundreds of plans, and we are personally very surprised at how uninformative some plans are, while others bend over backwards to keep you informed.
Also keep in mind that fees charged for the 401(K) can really impact the returns.
Smaller companies which means smaller plans, can pay fees very often amounting to 3% of the gross investment.
Large companies tend to pay about 1% of the assets under control.
If you take the time to shop around, you can get those fees down close to 1%.
You will probably need to both switch the provider, and redesign the 401(K) plan you currently have.
We have dealt with this, and believe me, it's worth it.
We have seen dozens of companies with dozens of plans chop their fees in half with better service, but you cannot take an attitude of it will be okay, because it never is.
You must be proactive in the process.
In my next write-up I will deal with investment mix, and how much to put away.
If you need advice, get in touch, no axe to grind, and we are objective.
Visit us today StocksAtbottom.
com
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