When it comes to 401k investing, every person is different. We have different retirement timeframes, tolerances to risk, investing personalities and ideas about the perfect way to spend our days after leaving our current careers. But there are some traits 401k investors in-the-know share, placing them in the best position to reach their retirement goals. Here are ten traits of remarkable 401k investors.
Responsible- Socking money away for the future can be hard to do, especially during difficult economic times. Remarkable 401k investors understand the importance of saving for retirement and embrace the responsibility that is necessary when saving money now, so it can be used later.
Knowledgeable- It’s not necessary to have a complete understanding of every investing term and philosophy, but a working knowledge of common 401k investing terms is important to make informed decisions with your 401k investments.
Goal Oriented- A major part of retirement planning is setting goals. Whether it is a large-scale goal, like deciding what you want out of your retirement; or a small goal, like increasing your contribution percentage 1% each year, a remarkable 401k investor is always creating and working towards goals.
Patient- Observing the wild market ups and downs we’ve seen over the last few years could cause some investors to frequently pull money in and out of their retirement fund, but a remarkable 401k investor understands the long-term approach to retirement investing and is patient enough to ride out market volatility.
Aware-Many factors go into 401k investing and a remarkable 401k investor monitors the important information. New 401k fee disclosure rules, changes to their fund line-up and the availability to tools and resources to aid in the planning effort are just a few of the things they keep up with regularly.
Vocal- A remarkable 401k investor does not sit around quietly. When they have a question or concern about their 401k they say something and keep talking until their questions are answered.
Forward Thinking- Decisions you make today with your 401k plan (like trades, loans, and contribution changes) can have a large effect down the road. A remarkable 401k investor understands that the decisions they make now can greatly alter their retirement plans down the road.
Frugal- A remarkable 401k investor is always looking for ways to save; and the best way to save is to avoid wasting money whenever possible.
Honest- Maybe you don’t have enough time to do adequate research or maybe you don’t have the necessary knowledge to make 401k investment choices on your own. Whatever the reason, a remarkable 401k investor is honest with themselves and knows when it is time to look for 401k help with their investment questions and decisions.
Persistent- The road to retirement is a long haul and it is easy to get diverted from your path. From budgets to goals, a remarkable 401k investor sticks with their plan even when times get a little tough.
The list certainly doesn’t stop there. Any other traits we missed? Let us know in the comment section.
photo credit: .reid.
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Smart401k is a web-based investment advisory service providing unbiased recommendations to help people invest in employer-sponsored retirement plans. Smart401k provides service to nearly 11,000 clients who collectively have more than $2 billion in assets. Plan participants receive personalized, fund-specific investment recommendations and the support of professional investment advisers available to discuss all investment questions. Based in Overland Park, KS, Smart401k is online at www.Smart401k.com.