Setting up your 401K retirement plan is one of the most important steps you can make toward your future. However, it isn’t without risks and unfortunately, the wealth of misinformation out there easily leads people into making the wrong decisions with their savings. Here are some of the worst offenders witnessed by today’s 401K professionals.
Your 401K Will Suffer During Career Transitions
Some jobs may allow you to roll your 401K retirement plan over to your new position with relatively little harm. It may help to do your research in order to know the specific policies of both your new and old workplace.
Setting Up Your 401K Comes at Absolutely No Cost
Starting your 401K retirement plan tends to be free of charge, at least initially. However, you and your employer will be responsible for some payments. The first is an investment fee, which pays for the maintenance of your 401K. The second is an administrative fee that covers the accounting aspects of your plan.
Your 401K Is Your Best Bet for Saving Up for Retirement
While a 401K is definitely a great choice for your retirement plan, it isn’t your only option and isn’t always the best or the most immediately accessible for many people. The truth of the matter is most of the time, a 401K retirement plan is only worth setting up if your employer is the one footing the bill. If you have to start funding this plan out of your own pocket, you may lose much more than you think you’ll save.
There is much more to know about setting up and maintaining a 401K retirement plan than what’s been covered in this article alone. To learn more in-depth information regarding everything related to your 401K retirement plan, contact Mountain West IRA by calling 866-377-3311 or visiting their website.
