The majority of people in the workforce have a 401k plan in place. These are the most common type of retirement savings account for employees; most medium to large companies offer them to their workers.
A 401k is one of the best ways to fund your retirement years but many people make serious mistakes when it comes to managing their plan and getting the best possible outcome.
This is because few people really understand how to make the most of their 401k. According to a survey conducted by the Employee Benefits Research Institute, the median account balance of a 401k plan is a measly $18,000. This isn’t going to take you very far in retirement!
In fact, one of the most common financial mistakes American workers make is in regard to their 401k. So I’m going to look at a few ways you can improve the management of your 401k and maximize your returns. [Continue reading]