What Your 401K Plan Should Have
photo credit: Mr. T in DC
Everyone is always excited when they obtain a 401k plan that often times they don’t review their plan to even see what it offers and what it doesn’t offer. This is important stuff here, you can’t just file it away under the good category without taking a look at it. What you think is awesome may just be mediocre.
Your 401k plan should have a large menu in the aspect that it offers several different choices on investment opportunities so that your not stuck with just one. Your plan should also have low hidden fees. Recently it was discovered that some small businesses were charging well over 3% of what you put into your 401k plan, your fees should be kept to a bare minimum as stated on Forbes.com.
Believe it or not, one of the largest barriers to getting employees set up with a 401(k) is the set-up itself. Automatic enrollment increases participation dramatically. Look for providers that offer automatic set-up for new employees, as well automatic deduction and re-balancing of funds.
Think about a matching program for the 401k plan participants. This not only increases those who sign up and invest but it is tax deductible for you as well. You of course may not be able to match dollar for dollar with them, but even matching a small percentage is incentive for them and still tax deductible for you.
Ronald H. on July 17th, 2009 9:46 pm
I’m only 24 so I’m not really thinking about a 401K. But I should.
Jaclyn Wells on July 18th, 2009 5:58 am
Ronald,
It is never too late to think about a 401k plan. In today’s economy it is so important to plan for your future, and the longer you have your plan the more money you will have to retire on and live comfortably.
RedHotFranchises on July 19th, 2009 12:50 am
You definitely should consider a 401k plan. It is a life-long investment, and you wouldn’t have to worry about the temporary ups and downs of the market. Even if this recession lasts 5 years, just think of it as an opportunity to buy while stocks are low.
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