As individuals invest their retirement money, it is easy to make mistakes and end up with less than what might be possible.  In this profession, we see it all.  Is it possible that you could be making one or more of these mistakes?

Here are some of the more common “Uh-Oh’s” to avoid when investing in your 401k:

1. Over investing in company stock: Just because employers offer company stock, does not mean 401k investors have to buy it! Think of it this way.  You’re already investing yourself in the company, why compound the risk?  Things happen.
2. Making too many high-risk investments at the wrong time: An aggressive investment attitude can be a double-edged sword! You might make more, but you can also lose more.  Make sure not to get bullish just because the market is going up or simply because you’re young.
3. Spreading too much money across low-risk investments at the wrong time: Just like when the market is going up, just because it is going down does not mean it is time to avoid stocks. Always try to remember the very old adage to “buy low and sell high”.
4. Never changing contribution levels: It is common for investors to set their 401k contribution levels and then leave them alone! Remember you are investing yourself in the company.  When you get raises, consider increasing your contribution levels.  The main point here is to always meet the match your company may offer.
5. Borrowing from your future: Taking a loan from a 401k plan may sound ideal because it may be fast, have low interest rates, have no lenders involved, and you’re paying yourself back. But there are many more factors to consider! For example, many plans will not allow additional contributions until the loan is repaid.  Companies may not match the amount applied toward paying the loan.  Also, if you leave your job, the loan may be due and payable immediately.

These mistakes can be avoided!  Here at 401kSelections.com, we are here to help you retire comfortably! Be proactive, take control of your future.

 

Info@401kSelections.com

800.800.6563

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