The 401k benefits are excellent, but you have to know and work with the limitations to get the best that you can.
If your company offers a 401K retirement plan you should take advantage of it.
Depending on how much your employer matches, this is like having free money with growing interest. This savings account is one facet of your retirement nest egg.
Put in as much as you can without affecting your current living expenses.
However, you must keep an eye on your 401K because it can shrink, even with your employer contribution. This has happened to many so do not get lulled into false assurances. The 401K is based upon specific funds and stocks. If they go down, so does your money. See 401K Plan Pitfalls.
There are restrictions on how much can be put in, and when the funds can be withdrawn (401K withdrawal rules). There are usually penalties placed on early withdrawals.
However, there are some 401K withdrawal exceptions that you should know about.
Another free benefit to the 401k plan, is that you are given choices as to which type of investments to place your money into. You are allowed to make changes within a group of investments. A 401K is best when you can personally micro-manage your account.
Some plans allow you to switch to different investment company's altogether...
Check with your employer on the details of your company's 401k plan.
Do Everything Possible
You should also see that you are doing everything possible to generate the most income you can, when you retire...
Find out about annuities and how they may be beneficial to your future retirement.
* A deferred annuity can grow a small monthly amount to a large retirement nest egg...
* An immediate annuity can provide you with guaranteed steady immediate income...
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 "You'll be glad you did the right thing!"
best decision for your needs.
Return to 401K Planning
Return from 401K Benefits, to Annuities Financial Planning