81 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

  • Grab Your Reinstated 401(k) Match Post-Haste

    Many employers who eliminated 401(k) matching funds during the recession have reinstated them or plan to do so in the year ahead. If you reduced or halted your 401(k) contributions for that reason, you may soon get notice from HR that your match is back, if you haven't already -- and you should...

    Blog posts | Nov 19, 2009

  • 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

  • Is Your 401(k) a Dog or a Darling?

    A fledgling web site can allow you to see how your company's 401(k) stacks up when compared to others. And it can give you the sickening news of what it costs when your plan is poorly operated. by Kathy Kristof

    Blog posts | Nov 17, 2009

  • Indicator to Watch: 401(k) Match

    The good news: More firms that slashed or suspended their 401(k) matching contribution now say they plan on reinstating the benefit in 2010. The not so good news: some employer matches will be less generous than before. by Carla Fried

    Blog posts | Nov 16, 2009

  • Don't Tap Into Your 401(k)? Easy for Experts to Say

    You know it's unwise to ransack your 401(k) or IRA funds even if you face a serious cash crunch, but you do it anyway. Shame on you! If only your sure-to-be-impoverished, 70-year-old self could come back in time and smack you silly to prevent such foolishness. In the real world where people...

    Blog posts | Oct 29, 2009

  • Contribution Limits for 401(k)s Hold the Line for 2010

    For all the belt-tightening the economic slump has caused, at least it hasn't undercut how much Americans can contribute to their 401(k) retirement savings. Contribution limits for 401(k)s are linked to inflation, and many financial advisors feared the IRS would cut the maximum for 2010 due to...

    Blog posts | Oct 17, 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 1, 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

advertisement

Active MoneyWatch What are folks in the community talking about

advertisement
Click Here
track your portfolio