Actively Managed 401(k)s

An option that may help your retirement efforts. How should your 401(k) be invested? While some investors manage their 401(k)s themselves, others may seek a different kind of “hands-on” approach: having their retirement plan assets actively and professionally managed. Why should a 401(k) be actively managed? In a volatile stock market climate, there are potential drawbacks to leaving a 401(k) alone. If 401(k) participants don’t adjust asset allocations in response to market conditions or don’t adjust their investment mix for years, they can potentially lose on their investment. While “buy and hold” can be a successful investment strategy at times, … Read more

The Escalators and Elevators of the 401k World

The individual 401k plan is probably your biggest retirement asset but is neglected the most. The bull market that we are currently enjoying turned eight years old last March.  That has been a good thing for your 401k account.  The bad news is that the average length of a bull market is just under 5 years. A bull market behaves a lot like an escalator.  It climbs slow and steady over time. But bear markets behave a little differently.  They behave almost like an elevator.  They can almost free fall and have huge losses in short amounts of time. If … Read more

The Reasons for a Roth Solo 401(k)

The Reasons for a Roth Solo 401(k)

Here is a way for a solopreneur to save much more for retirement. Self-employed? Seeking to ramp up your retirement savings? You should look at the potential of the Roth Solo 401(k). If you are a high-earning solopreneur, this savings vehicle may be a great choice because it allows you to make both employee and employer contributions to a 401(k) plan in the same year, with the potential for tax-free income in the future.1   How does a Roth Solo 401(k) work? Think of it as a standard Solo 401(k) with an added Roth account. The magic word is Roth. … Read more

5 Tips For Maximizing Your 401(k)

401k

For the majority of us, our retirement hopes hang on our 401(k). In an effort to help you improve awareness and control over your 401(k), I have listed five tips to help you maximize your 401(k)’s performance. Make sure your contribution is (at a minimum) equal to your employer’s match. By not doing so, you are in no uncertain terms losing out on free money. Check your plan regularly, even if it hurts. Is the allocation of funds still to your liking, or are some changes necessary? Many plans allow you to make changes throughout the year and not just … Read more