401K Balances Rising, Highest Levels In 10+ Years
DENVER (CBS4)- Fidelity Investments said 401K balances are at their highest level in more than a decade.
While the Dow Jones Industrial Average is still about one percent below where it was in Oct. 2007, two-thirds of all mutual funds have posted new highs since that time.
Investment analysts give this advice when it comes to planning for your future with your 401K:
- Start Saving- if you don’t have a 401K or other sources of income, get one. If you depend only on Social Security, it will be tough to make ends meet.
- Set Your Contribution Level- keep in mind your company’s match when contributing.
- Boost Your Contribution- some plans allow automatic increase of contributions each year.
- 50 or Older- those who meet the age requirement may be eligible to contribute additional pre-tax savings through the catchup contribution.
- Avoid 401K Loans- it can be tempting to borrow against your 401K but you could end up paying more for your own money.
Analysts say even with recent progress, most retirement accounts have a long way to go before anyone can celebrate.
Also, keep in mind a 401K is not a complete financial plan, it should only be part of your retirement plan.