401(k)s: They Are A-Changin’
Many companies are revamping their retirement savings programs and employees need to revise their financial plans to protect their nest eggs. What's the best way to do it?
First, do not stop contributing even if you are unhappy with the new option. You still should keep contributing to your company’s 401(k) plan. There are few investment options that allow you to save as much money in one year — especially if your company matches some or all of your contributions.
Secondly, don't only think about your current 401(k). If you've had other jobs in your working career — and most people have — you probably have some old 401(k) plans or IRAs set aside for retirement. You need to think about all funds when you evaluate your overall asset allocation.
Lastly, if you don't think your current 401(k) plan is as good as it could be, do some research and then talk with your employer. Start by checking up on your company's 401(k) with Brightscope, an independent firm that rates 401(k) plans. Then, get a copy of your plan's annual report, which will detail costs paid by employees and by the employer. Next, check in with Morningstar.com to review the funds offered in your plan. If your plan's funds are below average, you have some powerful ammunition to take to your employer.
To read more about changing 401(k)s, visit Fox Business.