Experts say while a 401(k) can be a vital aspect to one's retirement plan, not enough employees are using theirs to its fullest effect. Using strategies to maximize their 401(k) - and protecting their strategy with a life insurance policy - can be an effective way to compound one's savings.
Bankrate.com noted the advice of experts speaking at a recent Employee Benefit Research Institute seminar. They suggested workers also save at least 10 percent of their salary, which can be a daunting task for some. Even putting aside 6 percent of their salary to begin with, and then increasing that amount by 1 percent annually, can lead to a much more comfortable retirement, said the report.
Workers are also advised to invest in a diverse array of stocks rather than just the typical mutual fund. Simply leaving their money in their 401(k) and avoiding taking out a loan puts employees in the driver's seat, said the report, though replacing the money after a loan at least brings them back to where they started.
Keeping in good health and consulting a financial expert can also assist in one's retirement goals.
One unfortunate event could unravel a lifetime's worth of retirement planning, making it important for consumers to invest in a term life insurance policy, according to experts.