Also, the average deferrals were 5.4% for average compensated participants. Companies were averaging 4.7% matching in contributions.

According to other sources people invest in 401k as much as they could. It leaves question can you really affect you investment. The answer yes, and here is what should be done. So many things affect average family, gifts, clothes, appliances and food.

And here are Thanksgiving and Christmas traditionally high consumer spending holidays. The average income family would try to balance current season gift spending and the next year balance. It is important to remember to follow your 401k or your stock investment. Also, look trough quarterly statements and to make adjustments.

Majority of 401k investors think that there is nothing they can do to improve their fund performance, it is not true. Here are some tips for coming season:

Review your employer matching policies, you could ask at HR department where you work what is maximum your employer is matching on 401k. Any decisions should be made upon your budget. If you increase your portion would it hurt you on your income side? Usually, increase from 5% to 7% matching does not make difference in your contribution.

Review risk of your 401k. Read your statement and it should indicate risk of your investment. The risk factor should be adjusted according to your age. Younger investors could keep higher risks, and older investors should stay away from risk. The reason is that portion of you investment could fade away quickly with negative development on the market. Younger folks have time to recover market downs.

Look trough your portfolio, witch sectors you are investing. Follow major market news to see how certain industries are doing. All the major financial news agencies present sufficient data on market performing, inside trading, comparison to industries and future trends.

Make changes only if you see long term benefits. Sometimes, quick market speculation at the end of quarter drive price up, but it is only for the short time. Analyze your investment based on 2-5 years performance.
Try to set the goal for your 401k performance for the next year. Compare with other funds using online tools. Ultimately you are planning for your retirement and earnings from 401k should be enough to make your retirement pleasant.

Finally, it is your own interest how much you will earn investing into 401k. Your close attention will be paid off, plus it will give you security for your retirement.

Vladimir Dubchak
Finance and Investment Analyst.
www.eFamilyFinance.com

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