Learn answers to the common 401(k) questions that many people have. Learn how to use your 401(k) to your utmost advantage and keep an eye on your investments.

 

Main Questions Asked:

How can I get the most out of my 401(k)?

Is now the time to rebalance and protect some of the gains that my investments have made?

 

Key Lessons Learned:

Listener Questions

• What do I do about health insurance when retiring before age 65? Before retiring, you need to create an income plan and see if you have enough money to retire and afford your insurance premium.
• Which is better: term life insurance, universal life insurance, or whole life insurance? This depends on your circumstance, but for most people term insurance with 10x your income is a good idea.
• Can I spend money after retiring? Sometimes this is fear based. A financial plan can ease your mind. It could be a family philosophy but having a good plan can ease fears about spending after retirement.

 

Common Questions Asked About 401(k) Plans

• Should I use the advice from my company plan? This advice is better than nothing. It’s basic asset allocation advice. It’s not true financial planning.
• Should I contribute as much as I can? Most should. Especially up to the max. Save 15% of your income.
• Should I use a target date fund? It’s better than nothing and takes emotions out of it. You are better off talking to a qualified financial advisor.
• Is taking a 401(k) loan a bad idea? Yes. Don’t touch this money.
• When should I roll over my 401(k)? When you leave the company. Consolidate and talk with an advisor for a plan that covers the whole picture.

 

Income Planning Essentials

• Plan on being retired for decades not just years. Retirement has changed. People are living longer. Plan to be retired for 30 years.
• Don’t ignore inflation. If you live longer, you need to get raises each year to protect against inflation. The power of inflation and the cost of living can make people run out of money.
• Taking social security at the wrong time. The less money you have, the longer you should wait. People with more money should take it earlier. It depends on your circumstance.
• Understand all of your income generating investment options. Bonds, preferred options, REITs, and many other options are out there.  

 

Links To Resources Mentioned

Money Map Retirement Review

1-800-757-0436

The Ultimate 401(k) Guide

Thank you for listening!