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After retirement, many people live mainly on 401 (k) retirement benefit plan. Here are some tips to make sure you get the most out of your plan.
- 1. Don’t miss the money that the company should pay. If you haven’t saved enough money and your employer hasn’t allocated your 401 (k) yet, don’t read this article. Call the HR Department and let the company pay at least the minimum amount of money from now on. Don’t miss the money you can take for nothing!
- 2. Save more if you don’t want to. Most people’s retirement will last a long time, perhaps longer than you expect. Be prepared to save more money to 401 (K) even if you don’t want to. With the help of your financial adviser, your employer should open an account for you, and you should decide how much money to deposit each month.
- 3. You can get more money by saving now than by saving later. Whenever you save money to 401 (K), you give up the opportunity to get investment income from the savings. People who plan in advance spend their savings income; People who have no plans spend their own money.
- 4. In step. Everyone will encounter various problems at different times, which will bring pressure to the budget. Look at retirement savings as holistically as possible, and easily do not use it to solve ordinary problems. Don’t save less money every month or quarter. Plan to save more to make up later. You can never make it up. Year after year, adhere to principles.
- 5. Invest in both stock and bond funds. While managing investments in 401 (k), ensure that both equity and bond funds are invested. In the long run, it is usually wiser to invest in five to seven different projects than just one or two. Think about the asset ratio between stocks, bonds and cash. To retire, you usually have to put most of your money into stocks and bonds, leaving only a small amount of cash. Before the age of 50, you can put all your money into stocks and bonds without saving any cash, so that you can earn more money than the average.
- 6. Self study knowledge. You are unlikely to become a financial expert overnight. If you insist on attending 401 (k) education lectures for employees and reading business newspapers, you can master abundant knowledge and make better decisions. the sooner the better.
- 7. Patience. If you put $100 into 401 (k) as soon as you get paid, it won’t be long before you can save $1000, and a little longer, you can save $10000 or even $100000. If 10% of the income is spent throughout the career, they will contribute a large part of the $1 million pension. Patience. It takes time.
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Follow these simple guidelines to better prepare for retirement. Retirement requires a lot of money; If you plan well, you can have what you want.