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Investing Alongside your 401(k) or Pension Plan
A company-sponsored 401(k) is perhaps one of the best retirement benefits and
investing plans to come our way. Unfortunately, some employees fail to take
advantage of these plans, while others rely upon them solely as their
retirement future.
Max your 401 (k)
We encourage people to utilize their employer’s 401(k). First and foremost - you
should be striving to “max out” on your contributions to gain the maximum
allowable tax benefits and to take advantage of matches offered by your
employer.
Your 401(k) is strictly designed for your retirement years and will most likely
fail to meet your lifestyle expectations and financial goals to retire
comfortably. Once your 401 (k) is maxed, you should look beyond that plan for a
means to build additional wealth for your retirement and/or the “other things”
in life that may come your way.
Investments on the side
A 401(k) is a great start, but should not represent your entire strategy for
financial freedom. Investing alongside your 401 (k) at the same time will help
you achieve your goals, to build additional wealth, one investment at a time.
Maybe you are looking to invest in a vacation home or a piece of real estate in
five, ten or 15 years from now. Maybe you are planning to upgrade your home or
need to fund your child’s education. Begin your investing now.
Avoid 401 (k) borrowing
People borrow against their 401 (k) equity for lack of other resources.
Borrowing against your 401(k) or withdrawing funds before the age of 62 is
seldom a good idea. Borrowers face withdrawal restrictions and hefty tax
penalties. Build your other resources by investing now through your MyStockFund
account.
Summary
Investing now with a long-term horizon alongside your 401(k) will help you reach
your goals. Additional investments through your MyStockFund account can help
you build supplementary assets for retirement and for those other important
items in life to which you aspire.
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