“Formulate and stamp indelibly on your mind a mental picture of yourself as succeeding. Hold this picture tenaciously. Never permit it to fade. Your mind will seek to develop the picture.” -Norman Vincent Peale

Most employees, today, offer a 401k to help its employees save for retirement. While they supply the investment opportunity, they rarely supply the information and education which can allow the employee to maximize their 401k returns. Most people consider 401k’s to a passive investment however that does not mean the fund should not be monitored and adjusted as needed. There are several things to consider if you have a 401k. Are you ensuring that you are getting the best return you can? How efficiently is your 401k working? Is the goal of your 401k to be used for retirement?

Most people do not understand how 401k’s work or how to adjust them to fit personalized needs and demands. The 401k has the reputation that you can just set one up and let it go, and magically it is going to make a profit.

However, that is simply not true. Retirement funds can be manipulated and adjusted to make sure it is working at it’s maximum potential. Many people also assume that the company they work for is watching after their interests and that if there was a better way to do something, the company would suggest it. The truth is most managers and human resource people do not know the first thing about 401k’s.

There are ways to maximize your 401k. For example, if you developed a plan to get about 8% more out of your 401k it every year, it would result in your retirement being four times as large. If your predicted retirement fund is $100,000, you could potentially have $400,000 dollars if you manage your 401k efficiently.

Having a solid 401k plan is easy and really centers on two things. The first step is for you to be aware and monitor your fund regularly. Check your 401k at least once a week. If you see a stock that is declining by 5% to 10%, switch it out of the stock and into a money market mutual fund. There are many websites which allow you to log in and keep track of your stocks and investments.

In addition, it is extremely important to utilize index funds. The single most common reason people do not success in investing is inactivity. They fail to make decisions and act. If you have a 401k, you can not let it stagnant and be unprotected from the fluctuations of the stock market and economy.

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