74 results for:

401(k)

How can I rebuild my 401(k)?

As a matter of arithmetic, there are only three ways: work longer, save more, and get high returns.

If you are within 10 years of retirement and had your 401(k) money in anything but the most conservative funds, you’re almost certainly going to have to delay retirement. Each year you work provides another year of savings; it’s also another year that you don’t have to draw from your 401(k), which may mean you don’t need as much as you thought.

You’ll also need to save more. To recoup a 50 percent loss in your 401(k), you need to increase your account by 100 percent. Unless you’re willing to wait for the market to double from today’s level, you’ll have to shovel in fresh money of your own.

The other way to recover from your losses is to earn high returns — that means investments that carry some risk, including stocks. But there is one low-risk, high-return incentive available from your 401(k), and that’s your company’s matching contribution. An employer that kicks in 50 cents for every dollar you save is handing you a 50 percent return on your investment, so be sure to save at least enough to get all you’re entitled of your company’s match. To dig out of the hole created by this market, you’ll need all the help you can get.

Editor's Pick
Sort By

  • What to Do with Your 401(k) Now

    The list of mutual funds in your company retirement plan was overwhelming enough ? and that was before the stock market plummeted, and then rallied. Now it may seem as if any move you make could be the wrong one. Snap out of it with this four-step action plan for whipping your 401(k) into...

    Articles | Oct 21, 2009

  • Benefits Going to Waste? Here?s How to Cash In

    Every year, American workers leave thousands of dollars on the table by not maxing out their benefits. Just in time for this year?s enrollment period, we offer suggestions for taking full advantage of your employer?s offerings ? everything from 401(k) matches to gym membership reimbursements....

    Articles | Oct 29, 2009

  • Solo 401(k) Offers Big Tax Savings For Self-Employed

    If you're self-employed, here's how you can contributre almost $50,000 into your own 401(k) and get a tax deduction for your efforts. by Charlie Farrell

    Blog posts | Nov 2, 2009

  • No Promotion? Blame It on the 401(k)

    Yep, yet another reason to pile even more scorn on the the flawed 401(k): A just-released GAO study that takes a look at the 401(k) auto-enrollment trend presents an interesting motivation for why employers are warming up to auto-enrollment: “A representative of a large plan consulting...

    Blog posts | Oct 27, 2009

  • 401(k) Mistakes to Avoid

    You?re counting on your 401(k) to provide a cushy retirement. Or at least food, shelter, and a broadband connection. But many investors undermine their savings plans without even knowing it. We?ve compiled a list of the most common mistakes, and explained how to avoid them. Here are the 12...

    Articles | Oct 26, 2009

  • The Fees Behind Your 401k

    Many Americans are outraged as they have witnessed much of their 401k retirement investments dwindle dramatically during this recession. As Jim Axelrod reports, banking corruption may be to blame.

    Videos | Apr 22, 2009

  • The 401k Fallout

    Checked your 401(k) lately? The recent financial collapse has devastated this retirement resource. Older workers are hardest hit, as their financial futures may now be at risk. Steve Kroft reports.

    Videos | Apr 20, 2009

  • Why 401(k) Auto-Enrollment Is Seriously Flawed

    In 2006 Congress finally got around to addressing one of the easier-to-confront shortcomings of the 401(k): the fact that about 25 percent of folks eligible to join a plan don’t bother. Thanks to the Pension Protection Act, employers now can more easily automatically enroll employees in...

    Blog posts | Oct 16, 2009

  • Retire the 401(k). Replace it With This.

    Now that Time Magazine and the New York Times have joined CBS MoneyWatch at beating up on the 401(k), it's only fair to ask what the country ought to have instead. The traditional pension that worked out fine in the Mad Men era turned out to be too static for a modern mobile workforce. So jilting...

    Blog posts | Oct 15, 2009

  • Dow 10,000: Double Teaming Katie Couric

    What could be better than talking about Dow 10,000 with CBS Evening News pros Katie Couric and Anthony Mason? Answer: NOTHING! In prepping for the segment, it was clear that some recent trends reinforce an old truism of investing: people often chase performance. Of course it doesn't make...

    Blog posts | Oct 15, 2009

advertisement

Active MoneyWatch What are folks in the community talking about

advertisement
track your portfolio