Don’t Give Up the Dream of being a 401(k) Millionaire
This article makes a lot of great points regarding 401(k) investing and the need for employees to continue saving in their retirement accounts no matter what the circumstances. If an employee were to review their first quarter statement they may have found themselves down 30 – 40% or more on their 401(k). That turned around very quickly in the 2nd quarter and they may find themselves closer to breakeven now. Fidelity Investments did a survey of 302 companies and found that 82% aren’t considering a match reduction or suspension of their plan. While 9.6% of companies have cut or suspended their match, about half say they have active plans to reinstate it in the future. Another important topic from this article is that if you have lost your job during this pandemic, don’t ignore your 401(K) account. You should consider rolling it over to an IRA account and manage the account that way. Just because you lost your job doesn’t mean you need to lose your 401(K) as well.