How Can I Invest With a 401K Plan?

Investing in a 401K is the best way to secure your future and have a snug retirement plan in place for when you stop working. Each year a report on How America Saves is released by Vanguard. According to the latest research, Americans save an average of 7% in their employer retirement plan. For most workers, that will not be enough to support a healthy retirement income. And there are still about 32% of workers that have not elected to begin saving at all in their employer plan. Even though the economy is still not what it used to be, investing in your plan is the best way to secure your future.

how can I invest with a 401k

Experts suggest that you keep on investing in your 401K account because any amount of social security you may get will not be able to cover your bills with today’s rising costs. It is also speculated that Social Security benefits will start running out in the near future so a 401K will make a great little nest egg for when you retire.

You don’t want to set your goals based on what is going on in the here and now. You need to set long term goals, because that is what your long term investment is all about. Keeping an eye on your superannuation fund is also a wise investment decision. Visit the Suncorp Super website here for more information on superannuation.

This is a sound investment and you need to treat it as one; that means avoiding early withdrawals, because you are going into the money for your future. When you withdraw early you forfeit tax-free compounding features that are a benefit of this type of retirement nest egg.

Many people are bad about living in the here and now, never thinking about tomorrow. Investing in a 401K plan, and keeping up with that investment, is an easy thing to do. If you have the option then it only makes sense to take it. Your future and the future of your family may very well depend on it, in these harsh economic times. Contact your employer today to see if they offer 401K.

How about you? Have you taken advantage of your employer’s retirement plan options?

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About LaTisha

"Money is a tool. Use it to get where you want, but don't let it control you."- LaTisha

Author, motivational speaker, entrepreneur. Love to laugh and make others laugh. Focused on helping you build success and stay motivated along the way. Start investing now and let’s build wealth together.

  • krantcents

    Not only do I participate, but I max out my 401k, IRA and Roth IRA.

    • http://YoungFinances.com/ LaTisha Styles

      Nice! That’s definitely my goal in the next few years. I’d like to max out my Roth starting this year. I should be getting closer to maxing out my 401k as well. It all depends on how well I do paying down debt first.

  • http://my2centopinion.weebly.com/ David @my2centopinion

    I contribute 6% because my employer will contribute 50% up to 6% of my salary. So it’s a free 3%. I like to put the rest in my IRAs so I can have more control over where they are invested.

    • http://YoungFinances.com/ LaTisha Styles

      That’s a pretty good strategy. I started with 6% as well but each time I get a raise I change my contribution percentage. The matching doesn’t increase but it’s better for me because it comes out before I even get my check.