In this episode, we delve into how your 401(k) can continue to grow post-retirement through:
- Investment Performance: Your investments in stocks, bonds, and mutual funds can still generate returns. If the market performs well, your account balance may increase even without additional contributions.
- Reinvestment of Dividends: Many plans automatically reinvest dividends and interest, allowing your wealth to compound over time.
- Interest and Capital Gains: Fixed-income investments like bonds continue to earn interest, and capital gains from asset sales can boost your account.
- Employer Contributions: If you're working part-time or on a contract and your employer allows it, they might keep contributing to your 401(k).
However, growth isn't guaranteed. We'll also explore factors that could affect your 401(k)'s performance:
- Market Volatility: Fluctuations can decrease your balance, so it's crucial to review your investment strategy, possibly shifting to more conservative options.
- Withdrawals: Starting distributions will decrease your balance. If withdrawals outpace growth, your savings may dwindle.
- Required Minimum Distributions (RMDs): Beginning at age 73, RMDs are mandatory and can impact your account longevity.
- Fees and Expenses: Management fees can erode your growth over time.
To help protect your retirement funds from market risks, we'll discuss safer investment avenues:
- IRA CDs (Certificates of Deposit): Offer fixed interest rates with guaranteed returns.
- IRA Multi-Year Guaranteed Annuities (MYGAs): Provide predictable, stable returns over a set period.
- IRA Fixed Index Annuities (FIAs): Link returns to market indexes while protecting your principal from downturns.
Join us as we unpack these insights and strategies to ensure your 401(k) continues working for you—even after you've stopped working. Visit our website for more information.
