Maximizing Your 401(k)

401(k) plans, whether company-sponsored or not, can be great vehicles for retirement saving. Maximize this account with a few simple steps.

  • Get Growing – Many people can’t start contributing the maximum amount right away. To get to the maximum contribution, individuals should up their contributions by one percent each year. This is an amount that can be scheduled into the budget, but doesn’t break the bank.
  • Maximize Bonus Checks – Instead of using that annual bonus to buy something fun, live off of it for the month. That way investors can use their regular paychecks to max out their 401(k) accounts. It isn’t as glamorous, but will help out in the future.
  • Remember the 401(k) – When moving over to a new job, investors should make sure they take their 401(k) with them. After years of contributing, it would be a waste to leave that money sit.
  • Plan for Emergencies – Always make sure to have a separate emergency fund. Those who don’t set one up ultimately have to take money out of their retirement funds for emergency situations, cheating themselves out of money later.
  • Minimize Withdrawals – After retiring, investors should be careful not to withdraw a high percentage of their 40(k) a year. That money needs to last quite a few years. However, if investors have other investments such as real estate that bring in an income, they could withdraw more per year.

Being aware of how much money they are putting in and trying to make it last can help investors maximize their 401(k) account. Consider transferring to or opening a self-directed 401(k) with Mountain West IRA.

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Retirement Saving as a Small Business Owner

Small business owners are in a different boat when it comes to saving for retirement. Unlike their employees, business owners don’t just check a box once to keep taking money out of their paycheck each payday. This means they have to be even more disciplined when it comes to saving money. They don’t have the luxury of not thinking about it.
To stay disciplined, many business owners have found setting a goal to challenge themselves can encourage them to set a certain amount aside each month. Goals are good motivators and increasing those goals every couple of months could help set aside a decent amount for retirement.
Treating saving for retirement like a bill, is another trick used by many successful small business owners to consistently save each month. A self directed SEP IRA account can be the perfect vehicle for business owners to use when saving for retirement.
Business owners who have a flexible income often find deciding on a percentage of their income rather than a fixed amount can be a more practical approach. Also, taking small steps into saving can help. Instead of planning on a huge percentage if it isn’t practical at the time, start small and build up.
The individuals at Mountain West IRA can help small business owners set up a retirement plan to help them successfully save. They offer many options and can help determine which retirement program will best fit the situation.

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