401k Savings: What's the Safe Strategy?

The safe strategy for 401k savings is the most involved strategy. The more you take action with your account and understand your role in growing your savings, the more you can protect those savings. Here are some examples of where to take charge:

  • Understand your enrollment options. You may not be immediately eligible for a 401k account with your company, but this does not mean you will be automatically enrolled once you are. Make sure you take action to gain the benefits as soon as possible.
  • Find your default contribution. You may realize the default is set well below the company match. This would mean you lose out on valuable compensation.
  • Contribute the annual maximum matched amount. Even if you cannot contribute the maximum level allowable for your income bracket by the IRS, try to contribute the maximum your company will match. These dollars are part of your employee compensation, and leaving them on the table is the same as failing to cash several paychecks each year. 
  • Read performance reports. You do have a say in the way your 401k is managed, even if it is a passive say. If you do not like the options being chosen for you, you can speak with the company directors to ask questions and discuss your grievances.
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