401(k) tips for 2019 to Help You Save Efficiently

If you are going to contribute to the 401(k) that your employer offers, there are some tips that can help you save even more. Anyone who wants to save enough for their retirement needs to be aware of how to get the most out of this savings instrument. It has the potential to help you earn thousands each year, but only if you know what you are doing. This article will help you get the most out of your 401(k).

Utilize Your Employer’s Match

The first thing you need to do is make sure that you are contributing enough to where your employer will match the amount each time. This can help you save money quickly and efficiently. Those who do not do this are missing out on free money. While you might want to keep your contributions low due to the fees or other reasons, you should definitely try to get your employer’s match.

Decide How to Best Allocate Your Assets

At some point you will need to decide how you are going to allocate your assets, because it will ultimately affect your saving potential. This is not going to be the same for everyone, so you need to consider your own circumstances. You should set aside at least 10-15 percent of your portfolio for stocks. There are lots of different types of investment options available that you will need to consider. The more diverse your portfolio is, the better off you are going to be in the end.

Re-evaluate your Investments Every So Often

Make sure that you take a look at all of your investments on a regular or at least semi-regular basis to see how they are doing and where improvements can be made. You don’t want to just keep everything the same forever, because you’ll never be able to meet your saving/earning potential that way. One of the most common reasons to re-evaluate your investments is because you have gotten older and your priorities are different.

Look for Low-Fee Investment Opportunities

It’s always a good idea to look for investment opportunities that won’t charge you ridiculously steep fees. There are plenty of options out there that can help you save more without huge administration and management fees. Take all the time you need to look at the choices you have so that you can pick the best ones for saving as much money as possible.

Don’t Get Spooked During a Market Crash

It can be very tempting to sell your stocks when there is a market crash, but you should generally try to stick it out. This will benefit you in the long term, even though it can be pretty scary and stressful in the moment. If you are trying to formulate a solid long-term saving strategy, this is an essential tip to keep in mind. Don’t let your emotions get the best of you when it seems like things are taking a turn for the worst. This is actually a great opportunity to buy certain stocks, because you can get them cheaper than ever. While everyone is freaking out and selling, you will buy low and sell high later in the future.

Keep Increasing Your Contributions

You should make a point of increasing the contributions you make to your 401(k) over time. As you begin earning more due to raises and/or changing jobs, you will also need to put more in your account. This will help to ensure that you save as much as you possible can for retirement. It is a good general rule to keep increasing this amount by at least one percent each year.

Don’t Touch Your Funds

It is almost never a good idea to touch any of the money in your 401(k) because of the potential consequences. Make sure that you keep all of the money in your account until you are ready to retire. The fact is that withdrawing a significant amount early can cost you in a very big way. Even 401(k) loans are a bad overall idea for numerous reasons. You need to look at it as money that is only for your retirement, because that is exactly what it is.

When you are trying to save up money for your retirement, you will have to be careful about what you do with your 401(k). It is important to keep checking on it regularly to see how your investments are performing. You also need to change things up once in a while so your savings don’t become stagnant. If you want to keep growing your money as quickly as possible, you must take all of these things into consideration. These tips will help you save as much as possible so you can retire in comfort when you are older.

Important Questions to Ask a Mortgage Lender

When you are looking for a mortgage lender to borrow from to buy a house, there are certain questions you need to ask. These questions will help you narrow down your list of options so you can select the very best one overall. You don’t want to choose just any lender, as this is not something that you want to simply leave up to chance. The more effort you put into finding the right lender, the better of a deal you will get on your home loan.

What Are Your Origination Fees?

One of the most important things that you need to ask any mortgage lender is what their origination fees are. Each lender is going to charge something different, so this is definitely something you must consider. You should also ask about their discount points. The higher this number is, the less interest you will end up paying. Both of these things will play a major role in how much your mortgage ends up costing you overall.

What is the Process for Preapproval?

You also want to find out what kind of timeline you will be looking at when it comes to preapproval as well as closing. This will depend on your own specific priorities and goals when it comes to buying a home. You have to make sure that both your timelines are in sync before moving forward. Ask the lender what exactly they need from you to complete the preapproval process. When it comes to closing, ask them where it is going to happen and whether they coordinate with an outside law firm or do it all in house.

What Kind of Down Payment do I need to make?

Not all mortgage lenders have the same requirements when it comes to down payments, so this is something you need to find out right away. A down payment of 20% is ideal but not necessarily required. Some lenders have stricter requirements than others when it comes to this particular issue.

You should find out what sort of down payment you will be expected to make so you know whether or not the lender is a good match. These days some lenders only require as little as three percent down. Keep in mind that the lower your down payment, the more interest you are likely to pay on your loan.

Can You Offer me Any Assistance with my Down Payment?

Some lenders participate in programs that are designed to help borrowers with making their down payments. It’s always good to look for one of these lenders, especially if you think you will need this sort of help. This could help you save quite a bit of money on your down payment, so it is certainly worth looking into.

How Do You Keep in Touch with Your Borrowers?

It’s important to find a lender that makes a point of staying in contact with their borrowers, giving them important notifications when necessary. Will the lender send you a traditional letter, email, or text message? The better they are at communicating with borrowers, the better things will be for you.

What is My Monthly Payment Going to be?

You need to know what the final amount for your monthly mortgage payment is going to be. This is called an estimate, and it’s something that any lender can give you fairly easily. It will give you an accurate idea as to whether or not you can afford to borrow from the lender. Make sure that they include interest and any other fees. When you are trying to decide if you can afford the loan, don’t forget to factor in all of your other expenses. This includes property taxes, utilities, and everything else.

How did You Arrive at this Interest Rate?

When the lender tells you what the interest rate on your loan would be, make sure that you ask them exactly how they got that number. Their answer will tell you a lot about them, including just how reasonable they are. There are many different factors that a lender takes into consideration when calculating a borrower’s interest rate. It is important for you to learn all about this before asking them this question.

If you are ready to buy a home but haven’t selected a lender to borrow from yet, you will need to ask all of these questions. Make sure that you approach a few different lenders before settling on one to apply with. Submitting too many home loan applications in a short span can damage your credit. This is precisely why it is a good idea to prequalify. It will give you a good idea as to whether or not you will be approved for the loan you need. You will also find out what kind of rate you can expect from the lender.