Instead of putting the money in 401 k one can as well make their own portfolio for stable long term stocks with good dividends. This method is to invest in stocks with increasing revenues and increasing dividend every year. Stocks like KO, MCD, JNJ, WMT have been doing that for a long time now.
This for a really long time investment like 15-20 years. There is a good think in not selling of the stocks. One need not pay the taxes on capital gains and the long term capital gains is only 15 percent compared to 30 percent on short term. So that is the advantage and it is much better than investing in some Universal or Variable life insurances which charge exorbitant administration and other charges.
But the only problem is that one has to stick to the plan. That is the reason why one has to put affordable amount of money and not too much into these account every month. Since I also scaled down on my 401 K , I have to invest in something for long term. And this is the best way to do it. Just leave it for many many years to come. What ever the circumstances never sell this portfolio. Just let it grow.
This for a really long time investment like 15-20 years. There is a good think in not selling of the stocks. One need not pay the taxes on capital gains and the long term capital gains is only 15 percent compared to 30 percent on short term. So that is the advantage and it is much better than investing in some Universal or Variable life insurances which charge exorbitant administration and other charges.
But the only problem is that one has to stick to the plan. That is the reason why one has to put affordable amount of money and not too much into these account every month. Since I also scaled down on my 401 K , I have to invest in something for long term. And this is the best way to do it. Just leave it for many many years to come. What ever the circumstances never sell this portfolio. Just let it grow.
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