For many people the only real nest egg they have for retirement is their 401K plan, and though 401Ks won’t always give you the retirement income you desire, you need to make the absolute most of your account because some savings is better than no savings. The true value of your 401K account depends on a few different things – how much you earn a year, how much of your earnings you save, how many years before you actually retire and how well the stock market performs during that time.
Here are 7 simple strategies for growing your 401K account so you can have as much retirement income as possible.
7. Don’t Borrow Against Your 401(k) Plan
Just because you can do something doesn’t always mean you should. Yes, you can borrow against your 401K, and yes it is your money to do with what you wish, but the more you borrow against it the less money you have that is working for you and your Golden Years. On top of this you have a small window of time to pay this money back – usually five years.