Fred Harteis News Articles - Here are some top tips on how to keep your retirement on track.
1. Know what you need
You need to figure out how much you'll need. Some experts say that you should take your final salary when you're about to retire and times that by 10. So, if you're final salary is $80k, you'll need $800,000 in retirement.
That might seem like a lot. But keep in mind, you need to account for how much you've already saved, how much you're saving, what your costs may be in retirement and how your money is invested.
You should also check out CNNMoney.com's retirement planner or bankrate.com to ensure you're on track. Enter your income, your savings information and any other investments you have. The web site will show you how likely it is that you'll be able to reach your goals. What will it take to get there? You can ask your 401(k) plan sponsor to do a quick calculation on how much you should be putting a way each month.
2. Keep your wits
Do not adjust your 401(k) allocations to favor more conservative investments. Short-term market moves and downturns are completely normal. You do need to check up on your portfolio and examine what kind of investments you have and how they're doing. But don't stay on the sidelines or stop investing in stocks altogether. Even if you are close to retirement, you want to have some of your portfolio dedicated to stocks. If you don't, you'll run the risk of outliving your money.
3. Know the fees
Fees can really eat into your returns. Look for the expense ratio for your funds. This is the actual amount that a fund takes out of its assets each year to cover expenses. According to Morningstar, the average expense ratio of a balanced fund is about 0.9 basis points. So, if you have 10,000 invested, deduct fees of about $900. But remember, you also want to focus on the return and the quality of the fund. If you have any questions about the fees in your fund, call the plan administrator.
4. Get the lowdown
401(k) fees have recently come under congressional scrutiny. Hearings last year were held on whether these fees are too high and hard to find or hidden. There's a bill sponsored by Rep. George Miller that may go to vote in the Education and Labor Committee shortly. This bill would call for greater transparency of fees and call for more disclosure of potential conflicts of interest.
You shouldn't be paying more than 1.5% a year in 401(k) fees says Rick Meigs of the 401(k)
Source; Cnn.com
About Fred Harteis: Fred Harteis leads Harteis International. Fred Harteis has a background in agriculture and has created many successful business ventures.