How to Start Making Money Using Your 401k
- 1). Financial Advisors
If you want to make money, and you know nothing about the stock market trading, you might want to see a professional to get stock market trading tips if you do not have knowledge of how stocks, bonds, CD's, 401k's or IRA's work. They will be able to help you take a look at your account and decide what is good and bad about your investments. It has been shown that when investors do this for themselves, they may make substantially less than when qualified financial advisors are handling your portfolio. - 2). Get Diversified
Your financial advisor will probably tell you that diversity is key to making money in the stock market. In a bear market, you may want to increase your investments in safer investments, and decrease your high risk stocks. You might invest in stock market trading software to help you along in the trading process. You want to have money in stocks, bonds and CD's to stay safe in a bear market. - 3). Watch Your Investments
Good stock market advice is to keep an eye on your investments. If they are continually decreasing, talk to your financial advisor about what you should do. It is helpful if you become somewhat knowledgeable about your investments so you can give some educated input. In order to earn money using investments you have to be aware of fluctuations in the market. - 4). Keep Investing
It is probably not the time to pull out of the market. Keep your money in, and some even suggest investing more. When the stock market rebounds you do not want to be left out of the loop. Sometimes a down market is the best time to earn the most money. - 5). Roll Over
If you leave your job, do a 401 k rollover and put your money into an IRA. It may cost you substantially to cash out now. You can also put your money into an individual 401k plan until you get employment. - 6). Retirement Contributions
If you are forty years or more years away from retiring you should continue to make, and even increase retirement contributions. Just remember to continue to keep an eye on your asset allocations. If you have ten years or less, then you want to go towards a more conservative investments. Watch your money grow and adjust as need to increase income. - 7). Invest in Index Funds
Index funds are a relatively safe investment. The return is not as high, but the risk is relatively low. The problem here is if the market rebounds, you may miss out on making substantial returns. Some index funds include, S&P 500 Index Fund, Small Cap Index Fund, International Index Fund (Europe and Asia) and Value Fund. Talk to your financial advisor about options. - 8). Stable Funds
Look into investing a stable value fund. These invest in high-quality bonds. The rate of maturity on average is about 3 years. Talk to your financial advisor. You can make good money from stable value funds. - 9). Try to Stay Calm
Yes, it is scary in the stock market right now. Just try to remain calm and take proactive measures to protect your income. In order to keep your money safe you will need to know what to do with your 401k now, so keep on top of what is happening with your money to ensure that your money is safe in your 401k account. Talk to your financial advisor for further information on how to protect your 401k, money market fund, or accounts IRA account from stock market fluctuations. You will make more money if you stay educated, informed and aware.
Source...