Easy Ways to Enlarge Your 401k


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People don’t often think of the question, how much money do I have saved in my 401k ? This is something that has become a problem today. But don’t worry if you are one of these people, because there are ways to increase your 401k with ease and there are a good amount of people that are in the same boat. According to Bankrate1 they report that in America that there is 20% of people that don’t have a dollar for retirement. Saving your 401k is not the easiest thing to do for everyone, people are spending more money than saving and living paycheck to paycheck does not help either.

There is always a generalization that saving for retirement is a hard task to do but if you do it the right way through some simple steps, then it becomes something of second nature. Here are some simple but effective steps that will help increase your retirement funds.

Find Out What Your Company Will Match

Most companies today now have a 401k plan that they offer to their employees. A 401k means that the employer will match whatever money that you are putting into your retirement every time you make a deposit. This program helps a lot of people in America save their 401k to a reasonable amount. Companies usually will offer a dollar to dollar match every time you put in, so doing this regularly will help boost your 401k significantly. Another way companies will match is at a percentage of your paycheck, so if you were to give 20% of your paycheck to 401k the company would match that same percentage every paycheck.

Even though there are different ways to contribute to your 401k, every single one of them will help you increase your retirement funds in a dramatic way. A simple way to increase your 401k to its peek potential is to contribute as much funds as you are comfortable with. A reasonable amount to save every paycheck is somewhere around $100 and if you are making a good amount of money increase it more. The more money that you put in now the more you will have when you are older.

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What to look for to Increase Savings Rate

One of the most important steps to saving is to increase your saving rates gradually, this doesn’t mean you have to increase it at high amounts every time. The best way to do it is to increase your percentage by a little every month, year or day. You should increase it to something that is comfortable with you but don’t get too comfortable because that is one of the biggest reasons why people don’t have that much in their 401k. Just any increase to your 401k is just only going to help you for your future.

Sure you won’t be getting the full amount from your paycheck but when it’s time for retirement and you look into your savings you will be happy that you saved that whole time. Say that you increase your percentage by a little by doing so, you would be saving thousands of dollars.

Different Plans, Different Interest Rates

There are many different plans that people can choose from that offer different interest rates, how your money is invested and how you are able to acquire the money. People that switch could earn more money by just making a simple switch, this is why it is important to check interest rates regularly to help increase your 401k.

There are two main 401k plans that people often go with one is the standard 401k and the other is Roth 401k. These two both help you build your retirement but have different advantages for the way you build your money. With your standard 401k your contributed money is not taxed, with Roth 401k your contributions end up getting taxed but the gains that you receive do not. Another difference between the two is 401k is done through your employer while Roth 401k is done through a private business which gives you more leisure with your money. You can either go with one of these or you could look to a private investor but make sure that you are looking at every plan to determine the best way to save.

Save up to Prepare for the Future

Now that you have these great steps it is time to take advantage now and start saving. Increase your percentages and you will not be let down. Once you start making more of an income start raising that percentage every time and anytime that you get a bonus or raise make sure to contribute to your retirement plan. Before you know it you will be ready for retirement and you will be grateful that you were contributing the whole time.

The best part about these 401k plans is that you are building interest and you have your employer matching whatever that you are putting in. You are not even going to notice how much money you have saved by just raising that percentage. Even though people now still have nothing in their retirement funds, it only takes these simple steps to help get you on track to save your 401k. By staying on top of your 401k, you will be able to save a good amount for you and your family in the future. Now is the time to start searching and remember these important steps to help you succeed.

Start searching today for the best 401k plan for you.


Sources:

1 https://www.bankrate.com/banking/savings/financial-security-0318/  

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