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Although a surprising percentage of senior investors are faced with the threat of additional investment losses due to volatile market conditions, they should not stop participating in their retirement savings accounts and toss aside the benefits of sure 401K returns. 401Ks can help strengthen your retirement funds and give you the extra push due to its tax advantages.

Here is a relatively simple way to boost your nest egg with a maximum 50% return on your investment without increasing the risk involved with your retirement portfolio: Contribute enough money to your 401K so you can get the largest matching contribution from your employer. Stop at that amount, and then put all of the combined employer matches and your overall contributions into a strong value fund. Of course, this method depends on the chance that your employer still matches employee contributions and your plan uses the most popular matching feature.

A good number of 401K plans use the fixed-match system. It is common among many 401K plans to match 50% to a maximum of the initial 6% of the income of the employee. Other matching systems give you a dollar for every dollar you make to a maximum of three or four percent of your salary. This two-step way to sure 401K returns can work if your company uses any one of these matching systems.

Now, how do you get guaranteed returns? Many 401Ks use stable value funds to grow your money. The usual returns from these venues may be a comparatively measly two to four percent, although the low yield does come with low risk. You are assured of the safety of your investment because of an insurance feature these funds use to guarantee and protect the assets in the value fund. To further explain, here is a walkthrough of the two-step way to guaranteed 401K income:

Assume that you earn $75,000 every year, and contribute to a 401K plan that has your employer match half of your contributions to a maximum of 6% of your earnings. An overall contribution of $4,500 (which is 6% of your annual earnings) will result in an employer contribution match of half of your contribution or $2,250. After this, you can tell your plan manager to put the total of the employer matches and yours ($6,750) into a stable value fund. These sure 401K returns will be placed into your retirement account, which can be further compounded by a 3% return from the fund itself.

About the Author:

Katherine Smith is an author who specializes in financial topics concerning seniors. Puritan Financial Group gives seniors reliable investment options, as well as investment advice that can help strengthen their retirement planning. For more information on how Puritan Financial Group can help you, please visit our website at http://www.puritanlife.com.

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