401(K) Plans

In the past year or so, we’ve seen some interesting options emerge for 401(k) account holders … “new wrinkles” that everyone with a 401(k) should be aware of, regardless of whether you’re contributing $50 a month or $15,000 per year.

New help for “do-it-yourselfers”. You can now get advice on managing your 401(k). You can get it online from the financial company overseeing your account, or from the financial advisor who helped you set up your account.

The new Roth 401(k)s. The Roth 401(k) combines features of the traditional 401(k) with those of the Roth IRA. The contributions come from after-tax dollars, the account grows tax-free, and you get income tax-free withdrawals during retirement (provided you’re at least 59 ½ with a five year-old account).

Professionally managed 401(k)s. You can now ask to have your 401(k) directed by a money manager, if your plan is serviced by one of the big investment firms such as Fidelity, Charles Schwab and others.

Lifecycle funds. Many of the major investment firms now offer these age-appropriate mutual funds that automatically put a suitable balance of stock and bond funds into your 401(k) at various ages of your life.

“Autopilot” 401(k)s. Companies can now automatically enroll you in a 401(k) as soon they hire you. An in-house employee benefits manager may pick the investment mix and contribution level for you if you decline to do so.

If you’re unsure which of these options is best for you, consider giving us a call or send us an e-mail.  We are happy to help you learn how to diversify your 401k and welcome the opportunity to speak with you at no charge.

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About the Author ()

Mark K. Lund is the firm's founder, CEO and author of The Effective Investor, a #1 Best Seller. He has written articles for or been quoted in: The Wall Street Journal, The Salt Lake Tribune, The Enterprise Newspaper, The Utah Business Connect Magazine, US News & World Report, and Newsmax.com, just to name a few.  Mark publishes two newsletters called, “The Mark Lund Growth Report” and “Mark Lund on Money.”  Mark provides CPE (continuing professional education) courses for CPAs.  You may also have seen him on KUTV Channel 2, or as a guest speaker at a local association or business. Mark provides investment and retirement planning services for individuals and 401(k) consulting for small businesses. In his book, The Effective Investor, Mark exposes the false narrative magazines, media, big Wall Street firms, and most advisors want you to believe. The good news is that Mark will show you that you don’t need their speculative ways of investing in order to be successful. Get a free copy when you schedule your initial consultation.

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