4 Ways To Maximize Your 401K, With Bob Jain
If you don't know what a 401k is, it's essentially a savings plan that is used to help someone prepare for retirement. As money is regularly taken out of one's pay, it is then pooled into a separate account that can be used once retirement is reached. You might know the importance of saving, but did you know that there are other ways to get the most out of your 401k? Here are 4 tips, offered by Bob Jain, to help you do so.
Robert Jain, as well as other authorities on finance, will tell you that your raises matter. If you receive an increase in pay at your job, it's the perfect opportunity to increase how much you contribute to your 401k every week or two weeks. The more that you contribute, the earlier that you can retire. While you don't have to dedicate the entirety of your raise to your 401k, increasing the amount saved to any degree pays off.
What if your employer is able to match your contribution? Believe it or not, many workplaces match what their employees put into their respective 401k plans, which means that those men and women earn more money toward said plans. This accumulation of "free money," for lack of a better term, ensures that these individuals retire sooner in life. If you feel like you're not receiving this benefit, ask your employer to learn more.
You should also resist dipping into the money in your 401k plan, as it can have many negative consequences. First, you will be penalized for taking money out, meaning that you'll have to make a payment on top of what you've withdrawn. Second, you will reduce progress made from a retirement saving standpoint. While it's understandable that someone may fall on hard financial times, taking money out of the 401k is an absolute last resort.
Lastly, if you are truly focused on getting the most out of your 401k plan, make it a point to review your progress at the end of the year. This will give you the opportunity to evaluate the progress you've made, not to mention implement any changes that you see fit. These could relate to savings, meaning that you might increase or decrease them depending on your financial situation in general. Whatever your goals entail, a review session at the end of the year is recommended.
Robert Jain, as well as other authorities on finance, will tell you that your raises matter. If you receive an increase in pay at your job, it's the perfect opportunity to increase how much you contribute to your 401k every week or two weeks. The more that you contribute, the earlier that you can retire. While you don't have to dedicate the entirety of your raise to your 401k, increasing the amount saved to any degree pays off.
What if your employer is able to match your contribution? Believe it or not, many workplaces match what their employees put into their respective 401k plans, which means that those men and women earn more money toward said plans. This accumulation of "free money," for lack of a better term, ensures that these individuals retire sooner in life. If you feel like you're not receiving this benefit, ask your employer to learn more.
You should also resist dipping into the money in your 401k plan, as it can have many negative consequences. First, you will be penalized for taking money out, meaning that you'll have to make a payment on top of what you've withdrawn. Second, you will reduce progress made from a retirement saving standpoint. While it's understandable that someone may fall on hard financial times, taking money out of the 401k is an absolute last resort.
Lastly, if you are truly focused on getting the most out of your 401k plan, make it a point to review your progress at the end of the year. This will give you the opportunity to evaluate the progress you've made, not to mention implement any changes that you see fit. These could relate to savings, meaning that you might increase or decrease them depending on your financial situation in general. Whatever your goals entail, a review session at the end of the year is recommended.
About the Author:
Get in touch with Bob Jain if you would care for more advice regarding what you've just read.. Also published at 4 Ways To Maximize Your 401K, With Bob Jain.
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New Unique Article!
Title: 4 Ways To Maximize Your 401K, With Bob Jain
Author: Jason McDonald
Email: seo@fishbat.com
Keywords: 401k, retirement planning, retirement, financial tips, finance
Word Count: 414
Category: Finance
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