WHAT ARE SOME INVESTMENT TIPS FOR A 401K ACCOUNT?

I minister 13% of my paycheck to my 401K. Is which sufficient if my income continues to enlarge any year? I work in the IT industry.

{ 5 comments… read them below or add one }

Ohio_Golfer34 June 20, 2010 at 9:22 am: Go with the higher risk/higher reward investments offered by your employer early in your career and then go safer later in your career when you get closer to retirement.

And open a Roth IRA every year!
Gryvon June 20, 2010 at 9:56 am: Yeah, that’s pretty standard. Most people I know put in 5-8%. Trick is to find whatever funds/stocks/whatever that have a good long-term investment rate and just let your money sit there. Set it when you start then don’t look at it again for at least six months…
Rich June 20, 2010 at 10:00 am: Only contribute to the 401k to max out the company match, then max out with a Roth IRA. If you still have some money to put away after that, check out I Bonds.
CRJ-PILOT June 20, 2010 at 10:57 am: Contribute as much as you can to it especially if your company matches a percentage of it.

ERISA laws, and your company will inform you how much that is, it depends on your income. After you reach 100k salary per year, there’s a max pre-tax contribution and a max after-tax contribution.
HonestAnswers June 20, 2010 at 11:04 am: Look for available funds offered through your employer’s 401K that say “Balanced Fund”. These funds have good diversification and you can feel comfortable that your contributions will get goot 8 to 10% return over the life. Also, look at fees charged as sometimes managed mutual funds will have hefty management fees.