401k Subscription

• For those of you who have your life savings in your 401k but aren’t sure how it should be invested, a 401k subscription is right for you. A good 401k subscription provider will help you keep your 401k allocated properly for the current market conditions. The methods used to determine proper allocation should be based upon time tested and proven investment techniques. This sounds simple, but investing is a very tedious topic. It is very difficult for even seasoned financial analysts to get a handle on the condition of the market at any given time.
  
  There are tons of 401k providers; those who offer the 401k plan to the employer. Unfortunately once the 401k is implemented with the employer, very little effort is spent by the provider helping the employee choose the investment options right for him or her. This is where a good 401k subscription fills the gap. The recent changes in 401k’s brought about by the Federal Government mentioned this gap. They found there should be more assistance to employees in allocating their 401k’s. They realize that Social Security is less than funded and shouldn’t be relied upon. They also saw that 401k’s are sorely underfunded for the average worker. How well is your 401k funded? That depends upon 8 key factors:
• Your current age.
• Current Income (assume you want to make as much in retirement as before).
• Projected Inflation Rate.
• What percentage of your current income is being saved for retirement.
• Current Retirement Savings Balance
• The age to which you want your retirement income to last (Life expectancy plus a couple years at least – I use 90).
• Rate of return prior to retirement.
• Rate of return after retirement (usually a little more conservative investor after retirement).
  
  Based upon the relationship of these 8 factors, you can determine at which age you can retire. Hopefully the answer you get says you can retire sooner rather than later. Here is a wonderful Retirement Age Calculator that allows you to input these factors. It immediately projects your retirement age and gives you the option of printing out a spreadsheet with the annual cash flow and savings amounts.
  
  Once you play with this calculator, you will see how important it is to get a good return within your 401k. A good 401k subscription service can provide assistance in doing this. When selecting this service, make sure it fits your risk profile. I’ve seen many people who thought they were more aggressive investors than they actually were. All it takes is a bear market to let you know exactly how aggressive you AREN’T. Unfortunately by then, it takes many years for you just to break even again. A good 401k subscription service will offer programs that have double digit returns with risk levels that will keep you comfortable and in the program for the long haul.
  
  John M. Norquay