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401K Retirement Savings Plan
How Can You Save The
Fastest?
Do you have a 401k retirement plan worked out?
No doubt you have
thought of this at some point in your life: What is life going to be
like after you retire?
"No worries if you don't have a 401k plan" -- we'll help you!
First, let's look at some of the basics
of what a 401k is all about...
401k is the number of a rule
from the IRS that created this savings
plan in 1978. This plan calls for a voluntary "cash or deferred" system
of obtaining employee contributions.
As part of the employee contributions, the employer often matches the
contributions up to a certain percentage (usually small).
Thus one could have a "match" by the employer of 5% of their pay. The
"match" could be 50% and up to 100%...
lt depends on the specific
employer and their rules. Check with your employer on what their rules
specifically are.
Let's explain
this another way. Let's say that 5% of your paycheck
= $100. And let's say that the employer matches 50%. Then, that means,
you put in $100 and the employer puts in $50. That gives you $150 in
your 401k for that pay period!
That's a nice bonus and there are over
50 million
people
taking
advantage of a 401k retirement savings plan today.
401K Issues
Now, as described at 401k
planning there are some issues that you need
to know about:
- There are limits to the amount one can
put in.
- Your employer usually matches a small
percentage.
- There are penalties for early
withdrawals (401k
withdrawal rules).
- Funds performance is up to the manager, or your
direction.
- You are ultimately in charge of the
profit your account makes.
401k rules and guidelines can and do
change. For 2008, you can defer as
much as $15,500 per year. And if over 50 years old, you can defer up to
$20,500.
"A 401k is free." However, if you are free at reading between the
lines,
you can see that there is no
guarantee that the fund will grow.
If the investments do badly one year, then that means the amount of
money in your 401k goes down. There is no other way to put it, other
than simply: "There is a risk."
Not everyone loses. No, not at all. But I have seen small drops in
funds over a whole year, and sometimes more.
With inflation racing ahead of us by a few percent, then even a small
drop in a fund is the wrong way. You need that money to grow steady,
stable and strong.
Going down is not an option!
If you like to be "all over" your investments, and micro-manage them,
then this can work for you...
But if you want to have some stability,
some security,
then let's
examine another option:
Guaranteed
Income Program
A guaranteed income
program that is safe and
secure....
With guaranteed interest.
That would leave no room for doubt when you retire...
You would know exactly
and precisely how much you will get and when.
Sounds interesting?
You can do all this with annuities...
An annuity
has significant
benefts to your retirement financial planning.
You can grow a small monthly amount to a large retirement amount
(deferred
annuity)...
Or, you can obtain steady monthly income right away (immediate
annuity)...
Let our retirement financial advisor review your scenario and
let you
know your options...
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 best decision for
your needs.
That will help you with your 401K retirement planning!
"You'll be glad you did the right
thing."
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from 401K
Retirement, to 401K
Planning
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from 401K
Retirement, to Annuities
Financial Planning
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