We all know that taking advantage of the 401(k) plan at work is a great way to conveniently invest for our future. Unfortunately, the plans do not come with a user manual or much in the way of advice on how to invest. Here are a few tips to help you maximize your 401(k).
- The first step is to take a hard look at yourself. How much money can you afford to lose without freaking out? Would you prefer to see a low, but steady return on your money or do you prefer a balance between the two? This is your risk level. This may change as the years pass. This online tool may help…http://www.vanguard.com/us/FundsInvQuestionnaire
- Many companies that manage 401(k) funds offer a prepackaged bundle that uses your expected retirement date to determine investments and adjustments. If you are really unsure how to allocate your funds, this may be the way to go.
- Never leave a 401(k) with an former employer. Always rollover the funds. This will allow you to manage your money more easily.
- Take advantage of your employer’s full match. Why leave free money on the table?
Having a 401(k) is ubiquitous with a good job. Managing that 401(k) is on a plain with rolling the dice with your future. Arm yourself with knowledge and you should be able to maximize your funds and avoid the need to ever speak with a Utah credit counselor.