Making the most of your nest egg; Managing your 401(k), 403(b) or 457 plan
One of the most popular avenues for retirement investing is employee sponsored plans. Although 401(k), 403(b) and 457 plans differ to varying degrees, they all function basically the same way. They each offer packaged investment opportunities with an employer contribution from cents on the dollar, to matching an employee’s contribution or contributing a percentage of the employee’s salary.
These plans are a great way to begin building your nest egg, but with a little attention, and possibly supplementation, they can really go far in helping to set you up for where you’d like to be in the future.
The following ideas may help you get the most from these popular retirement vehicles.
Get someone to help you if you don’t have a clue.
- Consider investing some of your money in a Roth IRA at a place that offers a wider range of investment choices.
- Get actively involved in your retirement. The more you know, the better prepared you'll be.
- Understand your Social Security benefits earned to this point. Know how much you would receive at age 62 and at age 65. You should receive a statement each year from the Social Security Administration, or you may request one online at www.ssa.gov.
- Read the prospectus (the booklet) that came with your fund(s).
- Learn the major stocks within your fund and use tools that tell you about how to choose funds that suit your risk personality. Many Web sites are excellent sources of information; do some searches.
