The 401K Support Center

Every person is unique, but when you face a challenge like a big financial hit to your 401k, you are never alone.  Countless men and women have faced the exact same challenge and have survived and thrived. The following guide is designed to help you navigate your journey with the best information and resources that helped other survivors when they faced the same challenge. 

TSC has scoured the Internet and assembled links to the very best 401k resources: articles, blogs, forums and tools that can help you make better decisions and take action to overcome the range of financial challenges that you face.

As you’ll see, we always welcome your ideas and suggestions to make this 401k Guide even more helpful to survivors like you.   

JUST FOUND OUT 

Survivors Say: Best Resources for 401k Information

• 401kHelpCenter  A useful variety of articles and calculators about employee 401k plans
• Motley Fool: Is Your 401k Foolish?  A 10-part miniseries of information, covering everything from how much income to put aside in your plan to what investment funds to select.
• Internal Revenue Service  Information about 401k plans for employees, independent contractors, and businesses of all sizes

The Big Picture

401(k) is the section of the Internal Revenue Code that allows employees to participate in a retirement savings plan.
Contributions are tax-deferred, and interest and earnings accumulate on a tax-deferred basis. A 401k retirement plan is an effective and powerful method of saving.

Research401K.com

Your 401K

There are various types of 401K plans, from SIMPLEs and SEPs to Roths and thrift savings plans. Find out which one works best for your situation.

CNN Money.com: Ultimate Guide to Retirement - 401ks & Company Plans

Your World

Each person’s retirement plan needs are different, so you need to figure out your goals first, then determine if you will be able to have the money to achieve all of them.

MyMoney.gov: Retirement Planning

Make sure you don't make major mistakes, like missing out on your employer match or investing in a manner that doesn;t meet your goals.

MSN Money.com: 7 Ways to Mess Up Your 401k

401K Myths

• 401K plans are risky
• You can't get rich with a 401k
• You should invest heavily in your company's stock
  

Information and Recommended Links for Survivors

• US News & World Report:  5 Ways to Protect Your 401k if You're Laid Off
• MSN Money: Do 401k Plans Still Make Sense?
• Bankrate: Leave 401k or Roll It Over?

Methods that can help

Calculating your 401K

See how much you will get from your 401K based on what you (and sometimes your employer) puts in.

• Bankrate: 401K Savings Calculator
• Financial Calculators: 401k Savings with Profit Sharing
  

401K modification

You should know what steps to take with your 401 when you lose or switch jobs.

• Money Girl: How to Roll Over Your 401k When You Leave Your Job
• MainStreet.com: Leaving Your Job? Don't Strand Your 401k

Creating a Support Circle

• Set up your TSC Survivor Profile
• Join support groups of other survivors or set up your own
• Interact and provide updates on your profile or our forums

Professionals Who Can Help

A financial planner or financial advisor can help you make wise decisions about how much and where to invest your 401k money. Pick a professional who understands your financial goals and investing strategy so that you both agree on what steps to take.

Charles Schwab: How to Find a Financial Advisor

The Emotional Roller Coaster

Losing your 401k or having to cash one in can certainly be a financial challenge and a emotional burden. Some people feel overwhelmed by the stress of dealing with a damaged 401k. It's important to not to let these stresses run your life. Educating yourself on the reality of 401Ks and how to wisely manage them can help you and your loved ones while you are rebuilding your nest egg.

Books 401K Experts Recommend

• The Smartest 401k Book You'll Ever Read: Maximize Your Retirement Savings...the Smart Way! by Daniel R. Solin
• 401Ks For Dummies by Ted Benna and Brenda Watson Newmann
• Your Complete Retirement Planning Road Map: A Comprehensive Action Plan for Securing IRAs, 401(k)s, and Other Retirement Plans for Yourself and Your Family by Ed Slott

What People Wish They’d Known About Their 401K

Communicating with Your Financial Professionals

• Bring a friend or family member with you when discussing investment options with a professional, not only to provide support but to lend an extra ear to understand everything the financial experthas to say, and to ask any quesitons you may have forgotten about.
• Don't be afraid to ask any questions , even if you may be scared of the answer.
• Write down any questions you may have ahead of time, then write down the answers to those questions as your financial professional walks you through them.  Don't be afraid to ask for clarification on anything.

Dealing with the 401K: Information for Co-Survivors

 

How you can help

• Don't just focus on your friend or family member's financial woes.
• Talk to your friend or family member about their retirement goals.
• Educate yourself to help him make decisions and schedule appointments with the right professionals.
  

What to say to someone who has lost their 401k   

• "Let's see a professional and come up with a plan to fix this."
• "You'll still be able to retire if you handle this the right way."
• "I care about you and I am here to help."
  

What not to say to someone who has lost their 401k

• "You probably won't be able to retire now."
• "I can't believe you invested the way you did."
• "You can handle this yourself."

Things you can do for a survivor every day

Offering day-to-day support is a great gift to give a family member, friend or neighbor who is dealing with 401k woes. Help her plan a budget, make appointments with financial professionals, and figure out  her options. It's not always easy to think clearly when financial disaster strikes, so try to make the process as stress-free and easy as you can.

How to build a support network

• Set up your TSC Co-Survivor Profile
• Create a support group for your friend or family member.
• Interact and provide updates

As your 401k starts to recover, assess and share with others how you feel emotionally, mentally and financially. Recovering from a 401K crisis takes time, but as soon as you start to approach the problem realistically and optimistically, you'll begin to see ways you can move forward.

Repairing Your 401K

Make sure you have an investment strategy for your 401k that keeps it secure in both good and bad times.

Kiplinger.com: Protect Your 401K in Turbulent Times

Every cent counts, so make sure you are not paying too much in administrative fees and expenses that can eat away at your investment returns.

US Department of Labor: A Look At 401K Plan Fees

Some employers are stopping their 401k matches for employees. Don't panic, just wise up on your investment strategy.

About.com: Stocks - What to Do If You Lose Your 401K Match

Give Back

What helped you while you were dealing with finding a solution to your financial problem? When did you realize you had recovered? Take a look back at your journey and share with other what helped you and what you wished you would have known or done better during your 401k crisis. You can create a profile, reach out to other survivors, join support circles or share your story by following the links at TheSurvivorsClub.org

Company Bankruptcy

 If your company has shut down or filed for bankruptcy, you do have options for recovering your 401k money.

401k Help Center: If a Company You Work for Goes Bankrupt, What Happens to Your 401k?

401k Loan/Hardship Witdrawals

If you need money from your 401k before you are officially allowed to take withdrawals, determine whether it's the best move for you because the government does put steep penalties for 401k loans if they're not taken for the right reasons.

• MSN Money: Warning: 401(k) Loans are Hazardous to Your Wealth
• 401kHelpCenter.com: 401k Plan Loans - An Overview
• Bankrate: Calculator - Should I borrow from my 401(k) plan?
  

If your 401K is losing money, don’t give up on it. Wise investing takes time to reap the rewards.

Gather Little By Little: Your 401K Losing Money? Here’s What to Do