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How to be a 401K millionaire.

Working towards your retirement can be an incredibly rewarding achievement. How to be a 401k millionaire.Even more so when your 401(k) reaches upwards and over $1 million! Recently, the number of retirees that have reached that million dollar mark has increased from 89,000 to 133,000 in just the third quarter of 2017. Women also seem to be the ones bringing home the bacon, or in this case, saving the bacon. Over the past decade, the percentage of female 401(k) millionaires has doubled; going from 10% to 20% according to Fidelity reports.

So how does one come about being a 401(k) millionaire? The answers may be simple, but it requires a lot of work.

1. Save! Save! Save! The increase in these high-rolling retirees comes from a recent market run-up, but it comes down to setting aside money for future endeavors. Saving money and setting it aside for a rainy day can quickly turn into a retirement fund if handled correctly. It could quickly take an entire career to save up enough for retirement, but that's what you work towards. Putting aside that little extra every paycheck can really make a difference at your career end.

2. Don't be afraid to put your money in different outlets. Investing is a great asset to building up a 401(k), and you shouldn't be scared to spread your money out in your company if they offer stock. Skirting away from stocks to dance with bonds could potentially short-change you in the grand scheme of things.

3. If your company offers a match, take it! Not very many companies take part in a full match of your investment in your 401(k) due to auto-enrollment at a lower level than the matching ceiling. That being said, if your company gives you the change to match, make sure you take full advantage of it. You can change that auto-enroll issue by increasing your savings, working your way up to that level. If your savings is at 5%, bring it to 20% by the end of the year.

A good sight to keep in mind is taking your annual income and multiplying it by 10; this will give you a good indication if you will reach that millionaire status by retirement. Not many jobs will offer an annual salary of $100,000 but with savings and investments throughout your career, it's not just a dream anymore!

Contact West Financial Group for guidance on planning your ideal financial future! 

Make the REST of your life
the BEST of your life.

For more than 14 years our mission at West Financial Group has been to guide our valued clients to financial security. We strive to address all of your concerns, ensure you understand the products we recommend and take pride in knowing you’re comfortable with the direction and strategy we provide you.

Our goal is to provide a “WOW” experience at every client interaction! We want every meeting, phone call and event to be an interaction worth talking about. We want our clients to be able to say, “WOW, what an experience! I can't wait to tell my friends about our financial professional.”

Whether it’s financial, retirement, legacy planning or optimizing your future wealth, our approach includes understanding your unique situation, exploring your goals and discovering the best way to make the REST of your life, the BEST of your life. By getting to know you and your family, we serve as financial guides who keep your best interests in mind throughout the entire process.

Skip West | Financial Planner | West Financial Group

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