Another 401(k) day to celebrate!
Posted on September 5th, 2008 – 1:29 PMBy Kara McGuire
Happy Friday and happy 401(k) day.
Sponsored by the Profit Sharing/401(k) Council of America, 401(k) day is “is an annual celebration spotlighting the importance of employer-sponsored profit sharing and 401(k) plans.”
A lot of the features on the web site are for members or the PSCA, so if your employer isn’t celebrating, you can’t play the “Amazing Road to Retirement” game, for example. But some of the calculators are open to all.
What can you do to celebrate 401(k) Day?
- Open one up, if you haven’t already.
- Check to make sure that you are contributing enough to receive the full company match, so you aren’t passing up free money. If you’re not, make that change today.
- If you are contributing, consider increasing your contribution by a mere 1 percent. Most 401(k) plan web sites will have a calculator showing you how contributing a little more to your retirement plan has less of an impact to your take-home pay than you’d think.
- Check your portfolio’s mix. Are you still in the stable value fund that your company stuck you in when you started? Do you have too much company stock? Are you overloaded in commodities waiting to fall? If you have no idea what I’m talking about, use the asset allocation tools that your 401(k) provides to figure out your model portfolio.
- Readers, suggest a fifth “to-do” for the list.
2 Responses to "Another 401(k) day to celebrate!"
Don’t buy company stock with your 401K if you have other options such as an ESPP that gives you a discount. You’re not maxmizing the investment tools made elligible.
Two suggestions: Open up ALL of your 401k accounts, including those now stagnant from a recent job transition. Decide whether to rollover some of those monies; more often than not, you’ll have more investment choices and flexibility in an IRA brokerage account.
Also check to see if your 401k plan offers a Roth option (especially if you are younger and in a lower marginal tax bracket)
