Your 401K plan allows you to control your own retirement destiny. Deferring as much as you can afford to into your 401K and taking advantage of your employer’s matching funds are key components to maximizing your benefit. Being diligent with your savings, however, is just half the battle.
The are countless stories about 401K accounts being slashed by 50% or more during the bear markets of 2000-2002 and/or 2008-2009. Many other 401K participants are invested too conservatively to realistically reach their retirement goals. Others simply have no idea how their 401K should be invested, so they take the least painful path of keeping the funds sitting in an interest bearing cash or money market fund. All of these scenarios are completely understandable, because the typical 401K participant does not work in the investment industry, has not received formal training, and many times feels intimidated by all the fund choices and industry jargon.
Educating yourself about your investment options and the power of saving early and compound growth allows you to take control of your retirement assets. It gives you the confidence to know you are investing your 401K in a manner that allows you to maximize your return potential for the level of risk you are comfortable with. It also emphasizes the importance of diversification, risk containment, and protecting this retirement asset you have worked so hard to accumulate.
401k Rollover Frequently Asked Questions
Here are some answer to your frequently asked questions regarding 401k rollovers.
- What will the stock market do tomorrow, next month, or next year?
- How do I know what my investment return is?
- Why is my 401k such an important benefit?
- How important are taxes when investing?
- What is a 401K Rollover?
- Is there such a thing as a “free lunch” in investing?
- What is an IRA Rollover?
- What is an investment policy statement?
- What do I do after I inherit an IRA?
- What are Treasury Inflation Protected Securities (TIPS)?
- How much risk should I be taking in my IRA rollover and other retirement assets?
401k Rollover Section Menu:
- 401k Rollovers
- Sample Fee Disclosure – Detailed Fee Disclosure
- Investor Resources – Investment Management Process – 401k Rollover Errors
- Common Investing Mistakes – No Guarantees of Continuance – Not All Investors are Experts – Nobody is Perfect – It’s All About Discipline
- 401k Rollover Options – Direct Rollover IRA – Direct Rollover to Your Current Employer’s Retirement Plan – Lump Sum Distribution
- Glossary of Investment Terminology
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