There are a lot of people that invest into a 401K and don’t pay any attention to where their money is going. The account is badly allocated, which will cause you to be behind on reaching your retirement goals. There is over $4.3 trillion that is invested in various 401K plans. With approximately 52 million employed individuals participating in a 401K plan, many of them don’t know where they should be investing their money. Overall, it is better to receive investment from anyone than to invest with no advice at all. The difference is receiving advice can be generating a mere 3%, every year or generating as much as 80%, every year.
When a person opens a 401K plan, they will either pick poorly or do nothing at all. When it comes to making the right decision, here are some key areas to achieve more success.
– Your company’s human resources department. Most employees already have access to advice and just don’t know it. If you are employed with a large company, you could be part of the Financial Engines. Financial Engines provides free services that include performance data and allocation device. Even if your employer is not a part of Financial Engines, they may have their own consultants that provide important advice during your periods of open-enrollment. They may also have access to advice and calculators through the 401K provider’s website.
Those that work for smaller companies may have to do their own research to obtain more information. There are still a lot of do-it-yourself options that are available as well.
– Search the web. With a billion sites with information circling the World Wide Web, there are a lot more options available besides a general retirement calculator. You can also search for advice on properly allocating your funds into a specific retirement plan through several providers.