This can be a complicated question for many. Understanding your needs at retirement is difficult. Even more reason to take care of and charge of your 401(k).
The 401(k) is a savings program in which the employee can enroll. Many companies will match up to fifty percent of the first six percent you invest. This “contribution” is set aside in various investment options to which you have the ability to dictate. Whether it’s stocks, bonds or mutual funds you can chose how and where to invest your money.
The importance of the 401(k) is undeniable. With concerns over Social Security running out of money and with many companies no longer offering pensions plans, the 401(k) may be your primary retirement nest egg. It is vital that you understand and remain engaged with your 401(k). Simply signing up is not enough. You need to manage your investments and percentages to realize the best profits.
Many employers use brokerage firms such as Fidelity or ING to manage the company’s portfolio. These firms offer help to the employee, a sort of roadmap to success that you should definitely utilize to increase your opportunity for success. Stay engages as your retirement depends on it.