How do you know if you’re on track for retirement?
Sure, you can call your broker or harass your employer, but there’s no real way to know how much will be enough.
The last thing you want when you finally get to retire is to run out of money.
There’s a way to know if a secret process (meant to prevent exactly that) is happening when it should be.
Let me show you how one magic number can fast-track you to a $1 million retirement.
Did you know that your employer holds the health of your retirement fund in their hands?
If you work for a company that offers a 401(k) plan (which most do), chances are you think your employer has got your back.
That may not be true.
In recent years, financial mishaps have come to light where a person’s employer or financial consultant did not look out for their best interests.
One man claimed he had no idea he was supposed to be investing with his 401(k).
For 25 years of work, he used his 401(k) as a savings account.
His $60,000 savings would have been worth $30,000 more if someone had taken the time to explain what a 401(k) is, and how it works.
Now that man has to face the terrifying possibility that he has wasted his time and money for years, only to have meager savings at the end of the road.
Protect yourself from this outcome and be informed about your retirement even if your employer doesn’t insist.
Think about it. Your employer loses money when you know exactly how your 401(k) works.
They are usually required to match a certain percentage of your contributions, to then be invested and grown as you see fit.
If your employer does not meet this magic number, your retirement is at risk.
Employers on average contributed 4.7% to 401(k)s as of the beginning of 2019.
Check your records. Does your employer meet that number?
If they come up short, you could be missing out on tens, if not hundreds, of thousands of dollars in savings.
Experts claim that appropriate contribution matching could be the difference of a million-dollar retirement, or something disappointingly less than that.
That being said, saving is still on you.
If you start saving smart, and saving early, your employer’s contribution match will be higher just because you’re saving more.
Take responsibility for your quality of life once you close the chapter on your working years.
If your employer offers anything less than that magic 4.7%…GET OUT.
Rollover your money into an investment retirement account (IRA) with good returns.
You’re risking your hard-earned money, and your satisfactory retirement, if you don’t.