Points to ponder as you consider what can be done to maximize your 401k returns:1.Are You Maximizing Your 401k Returns?
2.Is Your Plan Working Efficiently?
3.Do you need to Maximize Retirement Income?
4.Do you want Simple but Powerful Strategy to Increase Your Retirement Wealth?
For most people their 401k investment strategy is to "set it-and-forget it".
This mindset has long been in existence and has been perpetuated by 401k administrators and human resource departments alike. Don’t make
mistake of thinking these people know what is possible, or that they will tell you if they do, to maximize 401k returns.
Unfortunately, accepting given type of strategy at your company will most often result in less than optimal returns. Yet so many people believe that if there were more to be gained, their employers would have a system set up to capitalize on that fact. They don’t!
If you were able to implement a strategy to squeeze a little more out of your 401k plan, say 8% more every year, this would result in four times amount of money you would have at retirement because of power of compounding interest!
Think about that for a minute: 4 times what you might expect when you retire just by learning how to raise your return by 8%.
Is this possible? Not only that, but people in know are doing it by thousands right now.
A very simple but powerful 401k strategy that works with any 401k plan involves two things.
1. Awareness
2. Use of an index fund (where available)
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 into an index fund that is designed to profit from a decline (a Bear Fund).
