Increase Your 401 (K) or IRA Contributions for 2019
In our quest to improve our finances by one percent in the new year, here’s a simple task you can accomplish in just a few minutes today: increase your 401 (k) or IRA contribution.
If you are not exhausting the employer’s maximum possible contribution at work, bet on 401 (k). Otherwise, it would probably be better to invest a little more in your IRA / Roth , assuming you haven’t reached that maximum yet (or your SEP if you’re self-employed). One percent is manageable now, especially with year-end bonuses and increased cost of living – if you think you can do more, just give it a try and see how it works.
If you’re thinking why bother, it won’t do anything for my long-term financial well-being and the world ends anyway, well, knows that a small increase in this will add up over time, and the world will probably be around for the next 40 years. during which you will still need money to survive. Invest in Roth to have access to your deposits when needed.
Too easy? Then don’t just add money to your account, make sure it works for you. What are the fees associated with your investment? If you invest one percent more, but pay one percent in commission, you are not actually making any money, you are losing more in the long run . Find out how much you pay to invest and adjust your portfolio as needed ( this is a good example of how 401 (k) “millionaires” do this). There is no room in 2019 for underfunded or overpriced portfolios.