The amount that you contribute to your 401K each year is extremely important to reaching your retirement goals.
But no matter where you are on your retirement savings contributions – whether when you’re strapped for cash and can’t contribute more or you’ve already maxed out your contribution levels – there are a few things you can do to really support your retirement plan without just contributing more.
Here are a few tips for bolstering your 401K without putting in more money:
Set it and forget it? Not for a responsible investor like you. Talking with your financial advisor regularly about what your goals are, what your current risk tolerance is, where you’ve set your contribution levels and your investment portfolio makeup can keep your plan performing in tip-top shape.
Leaving your retirement on its default settings – whether that’s the portfolio makeup or your contribution levels – will not get you customized results. Small changes can make a big impact over time – just like your contributions, while small amounts at a time, can add up to a big future.
Trust your strategy.
Once you’ve setup a retirement strategy and made appointments to check in with a financial professional regularly, it’s time to trust your plan. That means not reacting to news or trying to beat the market by chasing returns. Let go of the day-to-day market fluctuations and embrace the long-term investing strategy that you’ve setup. You’ll be doing your stress levels and your portfolio a huge favor.
Want more tips on how to avoid the emotional investment rollercoaster? Here’s an article from our archives on exactly that.
If you’re changing careers, roll it over.
Don’t make the major mistake of cashing out your 401K when you change jobs. Whether you choose another 401K or an IRA, rolling over your 401K is the right way to go to avoid paying penalties and taxes. And that doesn’t even factor in the future returns you’ll miss out on.
For more information on rolling over your 401K, check out our post answering the question: Should I Rollover My 401(k) To My New Employer? Or, talk to a qualified financial advisor to help you determine a course of action that helps your portfolio meet your needs!