401(K) Investing For Your Retirement

The aging of the population and the potential failing of social security has brought the subject of saving for retirement to the forefront for many people. There are many avenues available to acquire the nest egg that we will need to survive on during our golden years. IRAs, mutual funds, annuities and 401(k)s are just some of the options to research as we prepare for our future.

With all of these choices, the 401(k) is the most popular. The popularity of the 401(k) is due in a large part to the fact that many employers not only offer this option, they also match a certain percentage of your contribution. The amount that employers will match varies from as little as 25% to as much as 100%, although the number of employers that do not match at all is, unfortunately on the rise. Another outstanding benefit a 401(k) offers is that the contributions made by you as an employee are made with pre-tax monies.

A 401(k) plan is also very flexible, giving you choices in regards to your investment strategy. There are some tried and true methods for investing in a 401(k) that depend upon your age at any given time. For example, a young person investing in a 401(k), whether the employer matches or not, has time on their side. This person can invest aggressively, if they feel comfortable doing so. The market will have ups and downs, but the younger the investor the more time is available to ride out these fluctuations in the stock market. As the investor nears retirement, it would be prudent to change the investment strategy to a more conservative approach. This will, in theory make investing money "safer." but still more profitable than a traditional savings account.

In the past, only larger companies were able to offer their employees a 401(k) plan for retirement. A 401(k) retirement plan was simply not an option for the self-employed person. Thankfully, this is not the case in todays marketplace. Today there is a plan called Solo 401(k) or individual 401(k). These plans allow business owners with no employees, with only partners or a spouse to set up retirement plans that are very similar to the traditional 401(k) offered by larger, more established companies.

If you leave an employer that you have a 401(k) plan with, you dont need to leave your retirement investing in their hands. You have the option to do a 401(k) rollover, and it is highly recommended that you take advantage of this option. By rolling over a 401(k), you keep control over your investing options, as you should. When a rollover occurs, the money that is in the 401(k) is rolled all together into an approved investment vessel. These include programs such as a SIMPLE IRA, a SEP IRA account as well as another 401(k) to name a few. It is best to speak with a financial advisor who can help you to accurately weigh the pros and cons of each type of investment opportunity that is available to you.

What is almost never recommended is to take out the 401(k) money either all or in part. This is because there will be a 10% penalty on the portion that is withdrawn, if the withdrawal takes place before the age of 59 . When a rollover is chosen as a way to deal with accrued 401(k) investment, it should be done as one transaction to avoid any of these penalties or fees.

If you are looking for an investment tool as a way to save for retirement, the first place to look is your employer. Get all the facts from them, find out what they contribute, how much your are allowed to contribute and then speak with a good financial advisor as to what steps to take next.

Linda Moore writes on a variety of subjects including home ownership,family matters,personal enrichment,protecting your 401K Retirement nestegg and Retirement Annuities

Planning For Your Retirement
Are you ready for retirement? For most hard working individuals, retirement doesnt seem like it is close enough. But, for t...

Saving for Retirement
The government wants you to save for retirement. When the government wants you to do something they encourage you by giving y...

How Do I Prepare for Retirement?
When the day finally arrives, will you be ready? What do you need to do? How do you need to prepare? Well, if you are ove...

Retirement Plans for Solo Entrepreneurs
Saving for retirement is even more important for solo-entrepreneurs because you dont have a company sponsored pension plan or...

Early Retirement The Dream of the Working Classes
Everyone dreams of early retirement. The idea of no longer having to work at an early age is very attractive to some people ...

The Roth 401(k) Option - Making the 401(k) a More Flexible Retirement Tool
The Roth 401(k) option combines elements of a traditional 401(k) plan and a Roth IRA to offer employees an alternative method...

Prioritizing Your Retirement Umbrellas
A few years ago I met a gentleman who retired from the old American Telephone and Telegraph Company. It was at the time Lucen...

Retirement Planning Services
Financial services companies usually offer retirement planning services. More often than not, they charge fees for this purpo...

How to Prioritize Your Retirement Investments
You hear it over and over in the media: "Invest for your retirement!" But with so many retirement options and a limited amou...

Financial Retirement Planning
Many people retire after they find themselves financially stable enough to support all their needs. There are also some who ...

Setting Up A Retirement Plan
One of the best possible things you can do to provide for your retirement years is to set up a small business. Between the ta...

The Joy of Retirement
Everyone looks forward to a long and fulfilling retirement after a long and fulfilling career. Those years to do all the thin...

Saving for Retirement
During our working lives, many people fail to realize the importance of saving for retirement. In order to live the lifestyle...

How To Do Retirement Financial Planning
There has always been a need for retirement planning and today is certainly no different. There are 401(k)s and many other t...

The Golden Years: Planning for Retirement
It is easy for an adult to ask a child what they want to do when they grow up. There are limitless possibilities available to...

Early Retirement Planning Consultant - How To Best Utilize These Services
So you want an early retirement planning consultant to help you achieve your retirement goals? Before you start utilizing one...

How to Earn Extra Retirement Income
Retiring doesnt necessarily mean youre totally going to depend on your pension check. Although youre past the prime of life,...

Retirement Plan Services
It is natural for people to get caught up in the demands of today and forget about tomorrow. To afford the necessities that o...

Women Need Retirement Plans Too
Although the income gap between men and women is shrinking, there is still a sizeable gap in how well women are prepared for ...

Retirement Plans
Retirement is one of lifes biggest worries and retirement plans play a crucial role in providing a source of income in a pers...