401k Investment Policy Statement
What is a 401k investment policy statement
A 401k investment policy statement is used to help an individual plan and manage their retirement assets. A 401k investment policy statement can contain a combination of bonds, mutual funds, stocks and other equivalent assets.
Please continue reading for a comprehensive overview on how to review your 401k investment policy statement in 5 simple steps.
Reviewing your 401k investment policy statement in 5 simple steps
1. 401k investment policy statements should be reviewed bi-annually, meaning every 6 months. With the state of the economy constantly fluctuating, it is important to remember that changes may need to be made to your 401k investment policy statement.
2. Secondly, take a look at your 401k investment policy statement to determine the amount of money you have put into your 401k pension plan for the current year. Most companies will match the amount you have put into your 401k plan in full or by a pre-determined percentage. Add your contribution total with the matched amount from your company to resolve a total amount of money added to your 401k plan for the year. Always ask a professional what the maximum contribution amount is for the year, because if your total amount is below the maximum, you will want to consider increasing the amount you have put in.
3. Be certain that all withdrawals and deposits for the year are reflected on your 401k investment policy statement.
4. If you are beyond 50 years of age, consider the "catch-up" provision, which will allow you to increase the amount of money you deposit to your 401k investment policy statement for the year. On average, you are able to deposit $5,000 past the usual maximum in your 401k investment policy statement.
5. Be aware of charges that are added to your 401k investment policy statement by your brokerage company. Things such as commission fees are important items to watch for. Be wary of brokers that are charging fees beyond 2%.
Retirement planning ideas at ShortTermRetirement.com
Please visit ShortTermRetirement.com for information on 401k investment policy statements and strategies for better retirement planning solutions.
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