401K Retirement Savings Plan
How Can You Save The Fastest?
Do you have a 401k retirement plan worked out?
No doubt you have thought of this at some point in your life: What is life going to be like after you retire?
"No worries if you don't have a 401k plan" -- we'll help you!
First, let's look at some of the basics of what a 401k is all about...
401k is the number of a rule from the IRS that created this savings plan in 1978. This plan calls for a voluntary "cash or deferred" system of obtaining employee contributions.
As part of the employee contributions, the employer often matches the contributions up to a certain percentage (usually small). Thus one could have a "match" by the employer of 5% of their pay. The "match" could be 50% and up to 100%...
lt depends on the specific employer and their rules. Check with your employer on what their rules specifically are.
Let's explain this another way. Let's say that 5% of your paycheck = $100. And let's say that the employer matches 50%. Then, that means, you put in $100 and the employer puts in $50. That gives you $150 in your 401k for that pay period!
That's a nice bonus and there are over 50 million people taking advantage of a 401k retirement savings plan today.
Now, as described at 401k planning there are some issues that you need to know about:
- There are limits to the amount one can put in.
- Your employer usually matches a small percentage.
- There are penalties for early withdrawals (401k withdrawal rules).
- Funds performance is up to the manager, or your direction.
- You are ultimately in charge of the profit your account makes.
401k rules and guidelines can and do change. For 2008, you can defer as much as $15,500 per year. And if over 50 years old, you can defer up to $20,500.
"A 401k is free." However, if you are free at reading between the lines, you can see that there is no guarantee that the fund will grow.
If the investments do badly one year, then that means the amount of money in your 401k goes down. There is no other way to put it, other than simply: "There is a risk."
Not everyone loses. No, not at all. But I have seen small drops in funds over a whole year, and sometimes more.
With inflation racing ahead of us by a few percent, then even a small drop in a fund is the wrong way. You need that money to grow steady, stable and strong. Going down is not an option!
If you like to be "all over" your investments, and micro-manage them, then this can work for you...
But if you want to have some stability, some security, then let's examine another option:
Guaranteed Income Program
A guaranteed income program that is safe and secure....
With guaranteed interest.
That would leave no room for doubt when you retire...
You would know exactly and precisely how much you will get and when.
You can do all this with annuities...
An annuity has significant benefts to your retirement financial planning.
You can grow a small monthly amount to a large retirement amount (deferred annuity)...
Or, you can obtain steady monthly income right away (immediate annuity)...
Let our retirement financial advisor review your scenario and let you know your options...
Get a free annuity quote - let us help guide you through the options to make the best choices for you!
Or, get a free consultation from a Certified Financial Planner to go over your plans to help you make the best decision for your needs. That will help you with your 401K retirement planning!
"You'll be glad you did the
Return from 401K Retirement, to 401K Planning
Return from 401K Retirement, to Annuities Financial Planning