Cautionary Reminders Regarding 401k Account Funds

The headlines have been warning about the drop in 401k balances. Here is what you should be aware of! Have a question you want to be answered on the show? Call or text 574-222-2000 or leave a comment! Want to speak with a Certified Financial Planner™? Visit or call 574-247-5898. Find more information about the Wise Money Show™ at LINKS: Be sure to stay up to date by following us! Facebook - ​ Instagram - Twitter - ​ Want more Wise Money™? Read our blog! ​ Listen on Podcast: ​ Subscribe on YouTube: Mike Bernard, CFP® offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results....(read more)

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LEARN MORE ABOUT: 401k Plans REVEALED: Best Investment During Inflation HOW TO INVEST IN GOLD: Gold IRA Investing HOW TO INVEST IN SILVER: Silver IRA Investing

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Warnings About 401k Balances: Plan for Adequate Retirement Savings As retirement approaches, many workers rely on their 401k balances to sustain them during their golden years. However, it is crucial to understand the potential pitfalls and make informed decisions about your 401k savings to ensure a financially secure retirement. Here are some warnings that you should consider when assessing your 401k balance. 1. Inadequate Savings: One of the most significant concerns is having an insufficient amount in your 401k account. Many financial experts suggest saving at least 10-15% of your income consistently throughout your working life to have an adequate nest egg. Falling short of this recommendation may lead to a lower quality of life during retirement. 2. Overreliance on 401k: Relying solely on your 401k savings can be risky. This is especially true if factors beyond your control, such as market downturns or unexpected expenses, deplete your balance. It's important to diversify your retirement savings with additional investment options, such as individual retirement accounts (IRAs) or taxable investment accounts. 3. Neglecting Asset Allocation: Your 401k balance can suffer if you neglect proper asset allocation. Diversifying your investments across different asset classes, such as stocks, bonds, and cash, can help mitigate risks and stabilize returns. Regularly reviewing and rebalancing your portfolio can ensure your investments align with your risk tolerance and retirement goals. 4. Short-term Market Volatility: The stock market is known for its short-term volatility, which can significantly impact your 401k balance. While it's essential to keep an eye on market movements, making impulsive decisions based on short-term fluctuations can be detrimental to long-term gains. Consult a financial advisor or do thorough research before making any major changes to your investment strategy. 5. High Fees: Many 401k plans charge administrative fees, investment management fees, and other expenses that can eat into your overall returns. It's crucial to understand the fees associated with your plan and compare them to alternative investment options. Consider switching to lower-cost investment vehicles if the fees in your current plan seem exorbitant. 6. Inadequate Employer Contributions: Some employers offer matching contributions to their employees' 401k plans. It's essential to take full advantage of this opportunity, as it is essentially free money. Failing to maximize employer contributions is akin to leaving potential earnings on the table. 7. Inflation's Effects: It's important to factor in inflation when evaluating your 401k balance. Over time, inflation erodes the purchasing power of your savings. To combat this, focus on investments that offer returns higher than the inflation rate, such as stocks, and periodically adjust your savings goals accordingly. 8. Longevity Risk: Underestimating your life expectancy can be a grave mistake when planning for retirement. With advancements in healthcare and rising life expectancies, you need to ensure your 401k balance is sufficient to sustain you throughout an extended retirement period. Plan for longevity to avoid running out of money in later years. In conclusion, while a 401k balance is a valuable retirement asset, it's essential to be aware of potential warning signs. Take steps to ensure adequate savings, diversify your investments, and avoid common pitfalls such as neglecting asset allocation or high fees. By actively managing your 401k balance and seeking professional advice when needed, you can be on your way to a financially secure retirement. https://inflationprotection.org/cautionary-reminders-regarding-401k-account-funds/?feed_id=136403&_unique_id=6504941c30c4c #Inflation #Retirement #GoldIRA #Wealth #Investing #401kbalances #401kinvesting #average401kbalancebyage #financial #korhorn #whatisa401k #wisemoneyshow #401k #401kbalances #401kinvesting #average401kbalancebyage #financial #korhorn #whatisa401k #wisemoneyshow