Latest 401k Articles

  • 401k
  • Advantages of Making Salary Deferral 401k Contributions
  • 5 Characteristics of your 401k
  • Effects of the Pension Protection Act of 2006 on Lump Sum 401k Distributions
  • Tax Increase Prevention & Reconciliation Act of 2005 and 401k Retirement Plans
  • What Happens to your 401k when you are Divorced?
  • Risks of Investing 401k Retirement Plan Savings in Company Stock
  • Become a Millionaire with your 401k Plan
  • Roth 401k - A Look at the Final Roth 401k Rules
  • Common Files

    401k Investment Questions

    If you invest in a 401k or are planning to do so, then you must read our section on the different types of 401k investment options. Each investment option has its own level of risk. The best way to minimize this risk is to diversify your portfolio of investments into both low and high risk. Here is a summary of 3 different types of investors and their profiles:

    Low-Risk (Conservative Investor) Medium-Risk (Moderate Investor) High-Risk (Aggressive Investor)

    - Nearing retirement age

    - Can't risk losing principal amount

    - Guaranteed return rate on 401k investments

    - Not nearing retirement age

    - Ok with fluctuations in investment values

    - Can take high/low risk investments

    - Who cares about retirement?

    - Ok with fluctuations in investment values - want higher gains and returns

    - Highest interest rates with highest risk

    Ask yourself these questions when choosing your 401k Investment Options:

    - Do i know each of these 401k investments in depth, before i invest in any of them?

    - Am i diversifying my portfolio of investments? Never put all your $$ into one investment! If your tolerance of risk is high, you can afford to put your $$ into higher interest rate investments with higher risk. However if you cannot afford to lose the principal money, you should invest in low risk options with lower interest rates.

    - How many years do I have up until retirement when i will withdraw the $$? If you invest in mutual funds over 10-15 years, you will realize that they perform much better than other investments such as stocks, bonds, etc.

    - How has a particular investment performed over the past several years? Using financial tools like Yahoo Finance, you can determine via graphs and tables how a particular investment has performed over past several years:
    Note: Past performance does not guarantee future performance, as all investments are subject to economic cycles.

     

     

    Contact Us - Privacy Policy - 401k Frontpage