How to Make 401K and Retirement Plan Work for You: Investment Advice from Wall, New Jersey Expert

More info click here: www.mclaughlinfg.com

Your 401K Plan might be losing potential income.

Although many companies offer a 401K plan, most people don´t know much about their plans. You may not realize that 62% of all 401K plans offer inadequate investment choices. Because you are limited to the investment selections dictated by your 401K plan, you may not be able to choose the investment you prefer. This means that your 401K plan may yield inferior investment results that could affect your future retirement.

The difference in retirement funds produced by inferior 401K plans can be as much as 300%. That can produce less income for your retirement and may mean you will not have enough money to last for the duration of your lifetime.

Yet, 71% don´t even have a clear chain of authority for their plan´s governance. That means that no one is in charge. In fact, 65% of 401K´s have no requirement for the plan management to sign conflict-of-interest statements. And over 70% do not hire a professional to analyze plan fees.

According to a study conducted by Boston College, trading costs alone average 3% of assets each year. Putting that into concrete terms, if your investment is $100,000, you could lose almost $79,000 over a 10-year period, factoring in trading costs and lost investment return.

How you can protect your 401K retirement income:

The only way to know how your 401K plan is working for you is to have it analyzed by a Certified Financial Planner. Boston College concluded that "the average investor can´t even begin to get a strong grasp on these additional costs. There´s just not enough information." Do not fail to understand the importance of getting sound investment advice for retirement plans that perform well and protect you in your later years.

There are ways to counter the risk of a 401K plan. Selecting investments that protect your principal will help balance that risk. For example, an annuity is an insurance product that functions as a savings vehicle. Because it provides guaranteed principal with guaranteed minimum savings, it can protect your retirement income for the duration of your lifetime or other specified period of time.

Bill McLaughlin, a Wall, New Jersey retirement expert, provides 401K advice.

Bill McLaughlin, principal of the McLaughlin Group, is a Certified Financial Planner who has studied the risks of 401K plans. He is a wealth protection and safe money advocate who can assess your 401K plan and help you understand your investment choices. The McLaughlin Group provides investment strategies that offer protection of your retirement principal and specializes in minimizing risk. Located in Wall, New Jersey, the McLaughlin Group also safeguards retirement funds through tax reduction methods and secure growth of assets. For more information, visit www.mclaughlinfg.com