By the time you reach the age of 45, you should have at least two times your current salary saved in your 401K, according to a recent article by MoneyWatch. You’re probably thinking, ‘Easier said, than done.’ While the stock market has been on the rise, many investors are still hesitant to participate for several reasons, including continued easing by the Federal Reserve and inaction by Congress. So, what are some tips you can use today give your 401K investments a more predictable boost?
401K Tip 1: Pay Yourself First
First of all, you should always pay yourself first. At any age, it’s a good idea to build your 401K by making it a priority to meet the yearly contribution limits. Many people do not contribute and do not feel the repercussions of it until it’s too late. Consistency and commitment are the keys to steadily building your retirement and ensuring that your 401K investments are substantial enough to actually support you in your golden years. This will also save you the headache of having to save so much money at crunch-time that you don’t have enough to live on in the now. So, resist the appeal of paying other expenses first, and make sure your 401K is #1 on the payroll.
401K Tip 2: Take Advantage of Matching
Secondly, take advantage of employer match and other 401K contribution boosters. If your contribution isn’t enough to qualify for the employer match, increase it immediately. This is one of the easiest ways to boost your 401K investments and it’s as simple as filling out a form with Human Resources. Also, if you were recently given a raise, even if it was just a basic cost-of-living raise at the beginning of the year, increase your 401K contributions instead of succumbing to the temptation to increase your lifestyle. You’ll thank yourself for it in 20 years. The bottom line, though, is that you should always take advantage of any opportunity to match or increase your contributions.
401K Tip 3: Diversity for Uncertainty
Finally, and most importantly, diversify. If you’re relying on your 401K investments alone to support you through retirement, then you’re doing yourself a disservice. If ever the phrase, ‘Don’t put all your eggs in one basket’ were true, it’s now. During times of economic uncertainty, many individuals are looking to add precious metals to their retirement accounts. Gold and silver can offer protection and stability for any portfolio.
Over the past decade, precious metals have often out-performed their traditional paper counterparts. Many industry experts believe that gold will continue to post gains in 2013, making this the 13th year in a row. If you really want to be proactive with your retirement and attempt to safeguard your portfolio, then consider adding precious metals to your IRA. American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call 1-800-326-9598 to speak with a precious metals specialist. American Bullion and it’s agents are not registered or licensed by any government agencies and are not financial or tax advisors.