is key to success when it comes to investing money. As your company was smart enough to offer the management of mutual funds in your 401(k), doesn't mean you should pump in all your money into one fund. Many listed and openly traded companies offer their own stock in the 401(k) plan. Enron and many other big companies that went out of business have proved that investing in your company stock can be dangerous. To avoid a huge loss diversify the investments. Investment of funds should not be limited to only one sector, diversify it across all sectors and invest in blue chip companies to get more returns.
Leave the Money Alone
Do not take out the 401k funds until it is really necessary and is a matter of life and death, and no other source of money is available at that time. Other than the problem of not saving money for retirement, penalties to the extent of 20% of the funds is levied on withdrawal of 401k funds. There is also a 10% penalty to be paid, plus state income taxes. To avoid the penalties and double taxation wait till you're aged 59 1/2. Moreover, a long-term investment gives more returns than a short-term investment. By following these few tips, you'll have a healthier 401k for your retirement, whether you've started saving at 25 or at 40.
Article Source: http://articlecrazy.com
You can also find more info on Retirement Plan and Active Living. 1retirementplan.com is a comprehensive resource to know about Retirement.
Here are some more retirement articles...
Don’t Wait To Plan Your Retirement By David Chazin In conjunction with Sagemark Consulting, a division of Lincoln Financial Advisors, a registered investment advisor. Mr. Chazin is a regular contributor to PlannerConnect Read more...
|
Why Retirement Homes In Florida Are The Best By John Each retiree has different needs, preferred leisure, abilities, and financial support. Most of them have only one thing in mind: comfortable living. Although many of the retirement homes in Florida Read more...
|
Benefits Of Continuing Care Retirement Community By Alan Lim Because of the growing trend in retirement issues and programs, one area of retirement is gradually taking the limelight. This is known as the continuing care retirement community or the Read more...
|
Suriviving And Planning For Retirement By John The financial security umbrella that most wage earners would like to shelter under after retirement is now leaking very badly indeed! Money savvy experts block up news channels and advertisement Read more...
|