HERE IS HOW TO OPTIMIZE YOUR 401(K)!
Everyone is freaking out about that 401(k) time of year! Many people are scratching their heads as what assets they should buy with their 401(k) savings. I have my related articles on this site. The articles will help you figure out what you should do in your 401(k). Make sure you subscribe to my personal finance ezine at www.WalletDoctor.com and you will become savvier over time. In general here are the guidelines as to what you need to do to optimize your 401(k):
1. Only contribute up to the limit that your employer is willing to match in your 401(k).
>>> a. If you want to save more than the 401(k) matching contribution limit then you should open a Roth IRA online at someplace like etrade.com, ameritrade.com, or Scotttrade.com.
>>> b. Put the extra savings in your Roth IRA.
2. If there is no matching in your employer’s 401(k) plan then don't contribute to your 401(k) just open a Roth IRA.
3. Here is how you should allocate your savings contribution in the 401(k):
>>> a. Stay out of bond mutual funds right now because of rising interest rates (rising rates make bond funds lose money…I know I should write an article explaining why but just haven’t had time).
>>> b. Only buy indexed stock mutual funds.
The Roth IRA is a whole other ball game because you can and should buy individual stocks that are
1. undervalued,
2. likely to have high insider ownership,
3. thus likely to have spectacular rises in the next ten years more or less as I teach you in my home study course available through the Delano Max Wealth Institute.
If you are saving more than the combined amount of the 401(k) matching and the Roth IRA contribution limit then
1. open an individual trading account online,
2. put the additional savings in the individual trading account,
3. get my course to learn how to invest in individual stocks directly.
IMPORTANT NOTE: If for some reason you don’t want to invest in individual stocks AND have the option of a fully indexed mutual stock fund in your 401(k) then and only then would you add money beyond the 401(k) matching contribution combined with the Roth contribution. In this case you would only buy more of the indexed mutual fund. Also remember that when you buy company stock in your 401(k) you are NOT diversifying your retirement savings. For this reason I so very strongly recommend indexed mutual funds if you INSIST in putting money in your 401(k) above and beyond the matching limit INSTEAD of opening a Roth IRA!
To help you understand why the steps above will optimize your 401(k) I have posted on this blog my related articles that are circulating around the web. I describe how to do all of this in my short articles below that will bring you up to speed about this specific area of personal finance dealing with 401(k) optimization. The Vanguard 500 (VFINX) is my favorite as you will learn from reading my articles! Please be on the free wallet doctor ezine teleseminar call where I can answer your specific questions and take action toward greater financial abundance in your life today! To do so you will have to join the Wallet Doctor Free Personal Finance and Investments Ezine to get on the list to be notified of how to get on the call!
1. Only contribute up to the limit that your employer is willing to match in your 401(k).
>>> a. If you want to save more than the 401(k) matching contribution limit then you should open a Roth IRA online at someplace like etrade.com, ameritrade.com, or Scotttrade.com.
>>> b. Put the extra savings in your Roth IRA.
2. If there is no matching in your employer’s 401(k) plan then don't contribute to your 401(k) just open a Roth IRA.
3. Here is how you should allocate your savings contribution in the 401(k):
>>> a. Stay out of bond mutual funds right now because of rising interest rates (rising rates make bond funds lose money…I know I should write an article explaining why but just haven’t had time).
>>> b. Only buy indexed stock mutual funds.
The Roth IRA is a whole other ball game because you can and should buy individual stocks that are
1. undervalued,
2. likely to have high insider ownership,
3. thus likely to have spectacular rises in the next ten years more or less as I teach you in my home study course available through the Delano Max Wealth Institute.
If you are saving more than the combined amount of the 401(k) matching and the Roth IRA contribution limit then
1. open an individual trading account online,
2. put the additional savings in the individual trading account,
3. get my course to learn how to invest in individual stocks directly.
IMPORTANT NOTE: If for some reason you don’t want to invest in individual stocks AND have the option of a fully indexed mutual stock fund in your 401(k) then and only then would you add money beyond the 401(k) matching contribution combined with the Roth contribution. In this case you would only buy more of the indexed mutual fund. Also remember that when you buy company stock in your 401(k) you are NOT diversifying your retirement savings. For this reason I so very strongly recommend indexed mutual funds if you INSIST in putting money in your 401(k) above and beyond the matching limit INSTEAD of opening a Roth IRA!
To help you understand why the steps above will optimize your 401(k) I have posted on this blog my related articles that are circulating around the web. I describe how to do all of this in my short articles below that will bring you up to speed about this specific area of personal finance dealing with 401(k) optimization. The Vanguard 500 (VFINX) is my favorite as you will learn from reading my articles! Please be on the free wallet doctor ezine teleseminar call where I can answer your specific questions and take action toward greater financial abundance in your life today! To do so you will have to join the Wallet Doctor Free Personal Finance and Investments Ezine to get on the list to be notified of how to get on the call!
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