If you haven’t already received your 401(k) retirement statement, get ready for a bombshell in your mailbox. Thanks to the fluctuating markets – along with the growing threat of inflation – balances for your retirement savings could be at an all-time low. For those on the verge of retirement, it’s time to learn ways to control sticker shock – and how you can turn any panic into bona fide action.
Take A Deep Breath. Like with most statements, sticker shock is a normal feeling. Remember when you first took out that mortgage? How about when you discovered how much interest you’ve been paying on those credit cards? Don’t let sticker shock regarding your 401(k) retirement fund overwhelm you; remember, you have plenty of time to make up for any losses incurred. On the bright side, markets recently have been looking up, with consumers showing more confidence in the economy (www.msn.com). This means that your savings and investments have already been gaining on any losses since 2008.
Take Action. You can sit and bemoan that your 401(k) retirement fund isn’t up to par – or you can take action to ensure that you’ll have a comfortable retirement! Visit your investment advisor to see how you can boost your numbers by the time you reach your retirement age. Whether you need to heavily invest in an IRA (putting aside $500 a month for ten years can net you up to $300,000, assuming an 8% return) or move your money to safe investments, your investment advisor will help you come up with a better retirement plan.
Cut Expenses. For those on the edge of retirement, a smaller fixed income will definitely necessitate cutting any extra expenses. Instead of paying for your child’s college education or buying that second home, use that money to vigorously invest in the market. After all, who says that you’ll stop investing once you reach your retirement age?
The bottom line is that you shouldn’t regard your 401(k) retirement statement as final. Thanks to savvy investments that will last well into retirement – along with smart budget cuts – you’ll have a long and happy retirement to look forward to.
For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!
Authored by Kenneth Himmler, Sr.