Do You Have a 401k? Doing This Might DOUBLE Your Return!

ELK GROVE, Calif. - April 27, 2015 - PRLog -- Many 401k accounts and other retirement accounts are filling their options up with Target-date funds. These funds are very useful because they keep things simple and in many cases are designed to be very conservative. There have been concerns raised because these funds usually invest in large cap U.S. equity funds and then as the year approaches (the target-date) more income funds.

Paul A. Merriman points out in his article,

In Vanguard's Target Retirement 2055 VFFVX, +0.39%  , for example, 92% of the portfolio stocks are giant-cap, large-cap and midcap. Small-cap value stocks, arguably the asset class with the best long-term returns, account for just 3%.

If someone were to invest their funds in their estimated year of retirement target date fund they could be growing their money in what's considered a safe way. However, it is very possible a younger investor could be missing out on some serious gains over the years.

There is one tip that might work very well to increase gains for younger investors or those with at least 10 years until retirement. Use the target-date fund as the foundation and a small cap equity traded fund or mutual fund to gather some additional potential

Paul gives an example of someone in their mid 20's investing systematically in three different portfolios with one fully target-date, the other with a small portion in small cap and the rest in target-date, and the last with just over fifty percent in target-date and the rest in small cap. The difference in his hypothetical portfolio is nearly a million dollars over the working years.

If you want to have a larger 401k with increased earning potential give me a call or email me for a 401k/Retirement account analysis. If you would like to see what you can learn from our analysis check out the video Is Your Portfolio Managing Risk?

I also recommend viewing the entire article at http://www.marketwatch.com/story/how-to-double-your-targe...

I can be reached at matt.golab@aaronmatthewsfinancial.com.

Matt Golab,

Chief Advisor of Aaron Matthews Financial Resources

Matt Golab was recruited to write a chapter in Tom Hopkins recent book, Victory which became a National Best Seller. Matt also received the Editors Choice Award for his contribution to Victory, not every contributor is selected for this high honor.

Matt is an authority on creating innovative tax and investment solutions to help his clients succeed in their retirement years.  The strategies Matt Golab has established and passed on through successful financial planning with hundreds of clients over the years has launched him into the national spotlight.

He is often featured in Retirement Advisor Magazine, a publication which attracts the top financial planners in the country. Matt has been featured in newspapers around the country passing on the principals for a successful retirement. Golab is often asked by national websites that focus on the education of consumers to present his knowledge on the areas of retirement and retirement income plans.

Matt is frequently featured in The Wall Street Journal, CNBC, MSN Money, The San Francisco Chronicle, Newsweek, TheSmartRetiree, Burlington County Times and appeared nationwide on ABC, CBS, Fox, and NBC as well as USA Today.

Matt has a weekly radio show where he discusses all aspects of retirement planning, total wealth management, and estate strategies. Through his relationship with Retirement Radio Network experts such as David Walker former Comptroller General of the United States, Harry Dent of the H.S. Dent Foundation, John Bogle of the Vanguard Funds and many more have been heard on his show Income Forever.

Golab is the Author of The Consumer's Guide to Planning Your Retirement: Your Guide to Mental Peace and Financial Well Being. Matt Golab continues to expand the geographic reach of his audience and desires to bring his expertise to a nationwide television audience. Matt emphatically states his mission, “I want to change the way Americans view their retirement. They can succeed (stay retired) regardless of what happens in the market".

Contact information for Matt is available at his website, http://www.aaronmatthewsfinancial.com/

Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.