Online Management Of Your Funds
Written: Apr 02 '01 (Updated Jul 09 '01)
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Pros: Online Control Of Your Own Account
Cons: System down once a week for updates.
The Bottom Line: Read this for investment tips regarding your 401K. Prepare for your retirement! Be ready for your future.
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| greenspan's Full Review: Fidelity Investments 401K Services |
One of the biggest advantages of the Fidelity Investment 401K Services is the fact that your employees and/or you can access your account via the internet. All funds are based on a daily basis at their closing of the market. The system is updated and you can view your accounts status. Don't panic just because the market goes down. A market which is down is a blessing for the investor. The downward direction of the market allows the investor to buy in a a much lower price. One has to remember that the market has and always will have it's ups and downs. If you dump your stock or stop buying because the market took a dive you are responding exactly the opposite as the wise investor should. This is when you should run to invest. The small and uneducated investor many times has the tendency to pull their funds when a dip in the market takes place. While it is true that the market has experienced the longest downward plunge that it has experienced in some years, the investor who decides that their monies are far better off in the bank or in their wallets is unable to look into the future. Remember, you are building for the future. The market will rise and you are buying at the lowest point possible. I guess I should have listed the fact that you can manage your own funds as being a con, however more and more people are learning to understand their money. If you don't Fidelity has numerous helpful editorials and they update these on a regular basis. Fidelity also offers an 1-800 number where you can speak with an account executive during normal working hours. If the web site is being updated you can contact an 1-800 number and review your account. Altering your account is most easily done on the internet. Depending on the 401K program your company sets up with Fidelity online changes are not charged as they are all automated.
Advise to the young: If your company offers a 401K program and has matching funds, USE IT! Have the amount (usually about 5% of your paycheck will be matched by the employer, but the amount differs from company to company. If you don't take advantage of the matching funds it is like refusing FREE MONEY! Let's face it, everyone needs to save for their retirement. The present maximum amount which the government allows you to invest in a 401K is 17%. Yes, I know it was 15% for years , but the government wants to make the general public more responsible for insuring their own well being post retirement. Remember that this money tax exempt ( until the time it is withdrawn from the 401K program ) meaning that many times you might not notice a big change in your take home pay, This can take place as it will reduce the deductions that go to the tax column. A good method to reach the maximum allowed percentage that you are allowed to put in your 401K by the government is to place a portion of any raise you get into your 401 until the maximum is reached. Example: you get 6% raise, increase your contributions to your 401k by 3%. The difference in 5% and 17% would only be four raises. This includes pay adjustments to adjust for cost of living. After all, you were living on the amount made prior to the adjustment, you will be fine living on half of the increase as well. It doesn't matter how rich a person gets as it is a proven fact that it is people's nature to live within their means. Remember that the 401K is like an insurance policy against major times of need. There are provisions in most 401k programs for early removal of your funds in the event that you are about to loose your house or find yourself in need of funds due to medical necessity.
Enough free advice, however this is one time the free advice is worth more than it cost. As for Fidelity you can obtain more good financial advice online.
Notice that www.Fidelity.com is listed as one of my favorite sites. Now you know why. Hope this helps.
Recommended:
Yes
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greenspan
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Location: In Front of My Computer
Reviews written: 42
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Diagnosed with Multiple Sclerosis.Thanks for all your prayers! They are helping.
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