We all know that the last several months of 2020 have been a drag. The markets have fluctuated and unemployment rates, too. However, there are still numerous things you can be doing within your retirement accounts to make sure you still can work towards the retirement of your dreams. To learn more about some of the best practices for your 401(k) in the middle of a pandemic, keep reading!
1.Continue Contributing
As mentioned above, your 401(k) may have taken a hit or two over the last couple months. It is essential to continue contributing to your 401(k), even if it is less than before. While it is nice to contribute the maximum amount to your 401(k), it is not logical right now for some people, and that is okay. When it comes to contributing during this time, invest as much as you can without straining your finances.
2. Try to Refrain from Withdrawing
If you can, refrain from withdrawing from your 401(k) unless absolutely necessary. Withdrawing early significantly reduces your future financial benefits. If you have to take money out of your 401(k), you need to make sure you have a plan to pay them back. This is key.
3.Frequently Review Your Account
Keeping up with your 401(k) account is crucial to knowing how much you have invested and contributed so far in your career. You never know what areas of your retirement accounts need adjusting, and with markets like today’s, you never know what could happen next which is why you need to stay on top of your account status and your contributions.
4.Take Note of What Your Employer Matches
If your employer offers a match program, continue to invest as much as you can during this time, as your employer match is technically free money up to a certain limit. Depending on where you work and the size of your company, your employer might offer a pretty good match program that you should take advantage of if possible.
As you can infer, 401(k) plans are extremely helpful when it comes to retirement planning. You work hard to make a living, and one day, you will want to retire comfortably. With the world being in the state it is in right now, thinking about the future can be a bit uncertain. However, there are numerous ways to plan for your financial future right now, with the first being to take care of your 401(k) plan.
If you would like to have your portfolio reviewed, Heritage Oak Wealth Management would be more than happy to help you decipher which plans are best for you moving forward. To get started, give me a call at (985) 237-4033 or email me at matthew.greene@lpl.com
I look forward to helping you plan the rest of your financial future!