5 Tips to Tune Up

Your 401K7TaxTraps.com

Take Full Advantage ofthe Company Matching

What if someone could guarantee you a 30%,50%, or even 100% annual return on everydollar you invested into your retirementplan? Pretty good deal, eh?! That’s exactlywhat many companies do, to some degree

anyway, for their employees.

1

Guard Against an Obese401k.

It is still a wise philosophy to do everything inmoderation! Too much of a good thing can

really work against you. With income tax ratesincreasing and the pressure on social securitylooming, it may benefit many savers to buildsavings outside of their 401k now – while tax

rates are lower.

2

Take Control of YourAccounts.

Most people think that they don’t have any optionbut to just hang in there and suffer through poorplan alternatives.

Actually, many employers have adopted rules thatallow employees to withdraw a significant amount oftheir plan balance while they are still activelyemployed and continuing to contribute to the plan.This ‘in-service distribution’ amount can be rolledover to a self-directed IRA for greater control, service,and investment options.

3

Assign CorrectBeneficiary Designations

More than one beneficiary has beenundesirably dragged in or through the courtsto defend the bequest of a loved one.

Just leaving it to the oldest child andassuming they’ll divvy it up among the othersis a recipe for disaster – even in the best offamilial circumstances. Seek the counsel of anestate planning attorney for the best advice.

4

Update Your InvestmentStrategy

Unfortunately, most financial advisers stillrecommend a traditional buy-and-hold strategy thatsuggests you just ‘sit tight’ during difficult markets.Following this advice over the last decade has simplynot produced long-lasting returns.

This wild roller-coaster ride of late produces greatshort term returns, only to be lost to the nextdramatic downturn. Measuring over a longer periodof time this strategy has not produced the resultsmost savers have hoped for.

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5

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