Change Your 401(k)s Behavior with a Time-Out
My son is approaching the end of his “terrible twos.” He’s actually been quite good during this timeframe; especially after he learned to talk (it helped end some frustration on his part). Every once in a while, when tempers flare or he pushes the edges of acceptable behavior, we give him a time-out. It’s amazing the transformation that occurs; by the end of two or three minutes, he is back to his usual good-natured self.
Time-outs are used in other ways, such as in sports – coaches are quick to call time-outs, to stop the momentum building on the other side. The team comes together, figures out what they are doing wrong, and plans a strategy on how to perform better.
How about your 401(k) plan? Has it been bad? Do you need to change your behavior – were you putting money into emerging markets funds a year ago, or are you moving all your money into cash now? Or maybe you made some selections when you started the plan and haven’t done anything since. Have you stopped your contributions to wait for the market to turnaround?
Markets as volatile as this one strengthen the argument for a solid retirement plan. No matter what stage of life you are, it’s never too late to stop, evaluate where you are, and how you are going to get to the next level (and one step closer to retirement). At Smart401k, we help clients get into the right funds and portfolios that are suitable to their situation. Although this goes a long way to getting you to your retirement goals, you need to also periodically step back and evaluate your entire plan. We encourage all our clients to not only make sure they are invested properly, but also look at the big picture and understand that a retirement plan is a lifelong process – one that needs frequent monitoring. For further information on tips for all stages, please read our Smart Savings series here.
Here are some other links that may help develop or fine-tune your retirement plan:
- Take a look at your current retirement outlook using the following calculator:
- See the impact of raising your current contribution:
- Simulate how long your hard-earned money might last during retirement here:
If you are already with us, and even if you’re not, please do not hesitate to contact us for any help. We may just need to take a quick time-out, make some adjustments and get you back on track.
Kevin Jaegers, Senior Investment Advisor
