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ScaredyCatGuide to the 401(k) - Part 16: Your Checklist for Success

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As I write the last post in the 401(k) series the economic outlook is uncertain and the stock market has made some wild swings. There are millions of people suddenly unemployed who may need to make tough decisions about their 401(k) plans.

Regardless of the situation you find yourself in, the tools you learned in this book position you to weather the storms and achieve long term success. You now have the power to make a positive difference on your retirement savings by simply taking a day each year to apply these tools to your account.

The initial review will be the most work. Consider it a tune-up for your 401(k). Once done your account will be running at its most efficient, working as a lean mean earning machine.

THE CHECKLIST TO GET STARTED

Know Your Fees

• What are my total 401(k) fees? • How much are my mutual funds charging? • What amount will I gain over the lifetime of my retirement savings by cutting fees even just a half of a percent? (check it here: https://www.mywealthtrace.com/compare-investment-fees-calculator)

Rebalance and Allocate

• What are my current 401(k) investment allocations? • Which is the right allocation mix for my age? • Am I holding target date funds and what is the investment allocation within them?

Investment Choices

• How often have mutual funds beaten the market over 15 years? • Should I use index funds instead of mutual funds? • Does my 401(k) plan offer investments I want? Should I contact human resources asking for other options?

Asking yourself these questions will put to work what you have learned in this book and give your 401(k) that tune-up, one that could be the difference between enjoying retirement as planned or having to work well into those years.

Cheers to your retirement success!

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