Finally, 2019 has come and a new year lies ahead. With this in mind, it might be time to update your 401(k) contributions. When you save up money during your time as an employee, you get to have some extra cash and a more comfortable life as a senior. This gives you a much more satisfying life in retirement because you can avoid future financial struggles, especially since Social Security is just not enough anymore.
There are many Americans who are unaware of this process and probably lack financial literacy overall, but it’s never too late or too early to get a grip on your finances. Here are three simple ways to be smart with your 401(k) in 2019.
1. Set up a plan.
There are many ways you could go about doing this, but it’s important you create a proper plan with long-term goals. This keeps you organized and allows you to constantly be aware of your finances. All you need to do is talk to your company if you are eligible to opt in. If you work for yourself or if your job does not offer a 401(k) plan, you might want to consider an IRA or individual retirement account.
2. Perpetuate your contributions toward the fund.
After you have opened an account, you can force yourself to stay on track with your goals by setting up a regular reduction whenever you get a paycheck. By doing this, you can avoid the pain of thinking about making the reduction, and the entire process is going to be much easier on you. Setting aside 5-10% of your salary is a recommended amount to start with.
Over time, you are probably going to be receiving raises and bonuses, so make sure to contribute more as this happens. In fact, there are 401(k) plans with a feature that can automatically increase your savings rate without any extra actions from your part, so make sure you look into this as well.
3. Be wise when investing.
This can be difficult at times when you are not sure what exactly to do with the money. You should make sure that your savings are being invested correctly. One way this could be accomplished is by investing in the stock market.
Another great way is to consider real estate investing with DCT Capital Fund. They offer an exciting and organized plan called the DCT Freedom Plan, which creates wealth for those who seek financial freedom.
Furthermore, their team has over six decades’ worth of experience in brokerage, investing, and real estate development. They are trustworthy and ensure that their strategies minimize investment risks. Investment in real estate is an effective way to build wealth over time when done correctly and can even result in cash flow for retirement. If you want to be smart about your investments, be sure to contact DCT Capital Fund today to get started.