Is 401k Plan Right for My Retirement Savings?
We only need to analyze our own retirement goals and plan and prepare for it today. There are many investment vehicles you can choose from to acquire enough money for your retirement. There is the stock market, the mutual funds, the 401k, IRA, etc.
Is 401k Plan Right for My Retirement Savings?
You alone can answer this question, not me, not even someone. Ask yourself, how much money do you want when you retire? Is it half million dollars? Is it $250,000, what? Write it down and analyze how much money did you saved in your 401k.
You need to invest $300 every month to get $259,000 after 20 years. Your $300 per month investment should earn at least 12%. In this example computation, the 5% inflate rate per year was calculated.
You Need a Financial Planner to Know if 401k Plan is Right for You
Can 401k plan earn 12% per year?if yes, then continue it. You need a financial goal (be specific in amount of money do you really want). Now, analyze if 401k plan is enough to achieve that goal. if not, you can add other investment funds in other investment vehicle.
Noone can help you aside from financial experts. Do not ignore the skills of a certified financial planner when you need a retirement planner. Consult only with the CFP. If you liked this article, please share it with your friends! Thank you!