The Pension Protection Act of 2006 encouraged many companies to automatically enroll their employees in their 401(k) plans. By many accounts, this was a positive development, since the default choice, that requiring no action on the part of an individual, often proves to be the most popular. On the other hand, the timing of this law could have been better in retrospect since its enactment was shortly followed by the biggest stock market correction in decades.
Nonetheless, it's a net win for employees who, on average, are now more likely to save for retirement through their 401(k) plans than previously. However, even if you or a loved one have been automatically enrolled in your plan, that's just step one. Other considerations for those who have been "opted-in" to their workplace retirement plans include:
Nonetheless, it's a net win for employees who, on average, are now more likely to save for retirement through their 401(k) plans than previously. However, even if you or a loved one have been automatically enrolled in your plan, that's just step one. Other considerations for those who have been "opted-in" to their workplace retirement plans include:
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The contribution level: is it high enough? Often it is set at a relatively low rate.
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Are the investment selections appropriate? If you're particularly risk-averse and your default investment selection is a target date fund, you may need to scale back your equity allocation. Another possibility is that you've been placed in guaranteed income or stable value funds yet are young enough to benefit from and handle the corresponding risk of a stock-based investment selection.
is a great idea to get an annuity online, because our money is sure.
Andrew, you’re absolutely correct in that, with an anuity, the “money is sure”. Tread lightly, however, on the anuity waters; the key is ROI (Return On Investment). Remember the multiple flavors of ice cream Howard Johnson used to hawk (maybe not)? Anuitys also come in a variety of “flavors”, each with positives and negatives. While I do not pretend to be any kind of financial advisor, I know one thing…with any flavor of anuity, you will lose a modicum of control over your assets. In return, you will receive that “sure money” which may or may not be the best money. TREAD LIGHTLY!
Sarge