Saving for a big expense can be challenging for most people. Unfortunately, saving for retirement can be even more overwhelming. A 401k plan helps many people save without putting much thought into it, but you may not be utilizing this popular savings method properly. With this guide, you will learn the signs you need professional help with your 401k account.
You're Not Investing Enough
Most people do not know how much they should be investing into their retirement savings. Alternatively, you may be part of the group that feels you cannot afford to save any more than you already are. Fortunately, sitting down with a 401k advisor can help.
An advisor can look at your current savings to determine how much you will realistically need to continue saving for your retirement needs. The advisor can also help you adjust accounts, ensuring you are taking advantage of investment opportunities.
Advisors can also look at your current financial state, allowing you to see that there are ways to save more money for your retirement account.
Your Employer Doesn't Match
Many employers will match what you are investing into your 401k up to a certain amount. If your employer does not offer any type of matching benefit, consult an advisor. Without a match from your employer, you may not be benefitting from all the possible investment options that you have available to you.
An advisor can help you design your current 401k accounts to be more aggressive, which may help you see a higher return on your investment. Or, you can weight out the options of switching from your traditional 401k to a Roth IRA or another type of retirement savings account. Since you do not have the match from your employer, an alternative may be a better option for you.
If you're self-employed or run a small business, you will not have access to the traditional employer-sponsored 401k plans. However, you do have options available so you can effectively invest for your retirement.
Consider a solo 401k, for example. This account allows you to make pre-tax contributions just like an employer-sponsored 401k since you will be acting as both the employer and the employee.
Roth and traditional IRAs are also options to consider if you are self-employed. An advisor can help you weigh out the pros and cons of both before you decide on which will help you save the most money over a period of time.
For more information, contact a 401k advisor.