From the spring selloff to the recent record-setting rebound for stocks, it has been a dizzying six months for Wall Street. The sharp swings have many checking their 401k balances more than usual. We are stretching your dollar with what you can be doing to maximize your savings.
2020 has been a rollercoaster ride for Wall Street, and likely, your retirement accounts. It’s why the Motley Fool recently mapped out how to maximize the value of your 401k and five mistakes to avoid.
First and foremost, make sure you’re contributing to the account — always. Taking a break, even for a few months, reduces the time you have to save and grow the money before retirement.
Make sure you’re contributing as much as needed to get your full employer match. Every dollar your company puts in is a dollar less you have to contribute.
Double-check the vesting schedule — that’s simply the timetable for when the funds are fully yours to keep if you leave the company. Some employers offer immediate vesting, others have accounts that vest over a period of time.
Try to avoid withdrawals or loans from your 401k — that slows its growth and forces you to have to save more down the road.
Keep an eye on the fees you’re paying. They come directly out of the account so you may not see a bill for them to know exactly what you’re being charged. If possible, try not to pay more than 1% of your assets in fees annually — it may slow the growth of your savings.