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By awareness, I mean tracking value of your 401k holdings on a weekly basis if possible. With this level of awareness you can easily spot a portfolio decline. If it approaches a predetermined amount (5% to no more than 10% suggested) you should switch into a money market. Or if you are well informed and have ability to do so, switch into an index fund that is designed to profit from a decline (a Bear Fund).
The biggest advantage you will gain is NOT letting your account value sink to such dismal levels where a 40%, 50% or greater gain is required just to get back to even.
This alone could significantly increase size of your 401k over time.
Is this only strategy that can safely increase your return rate on your 401k?
Not at all. You just need to know what most people won’t tell you. I have written a book on subject called “Scientific Wealth Strategies.” You can find it at http://wealthscientist.com
I also have some more retirement strategies and resources located here: http://wwww.retirementinfo4u.com
Whatever your situation is right now, how much time you have left to make a change, and how much you calculate your need to be for a comfortable retirement, you cannot benefit from leaving things as they are.
Only education and strategic investment can net you returns needed to have a safety net in place so that when you retire, you are not stuck in a constant monthly deficit spending cycle.
That’s not what retirement was supposed to be about. And it doesn’t have to be that way for you!
C.C. Collins is a Wealth Building Advisor and Author of “Scientific Wealth Strategies” at http://wealthscientist.com Find more information at www.retirementinfo4u.com