Happy National 401(k) Day!
It’s not your average holiday! National 401(k) Day began in 1996 by the Profit Sharing/401(k) Council of America (PSCA). The PSCA now provides annual 401(k) Day materials—free of charge—to its member companies and promotes retirement savings education. This holiday is a great reminder to focus on your financial health and revisit your savings goals for retirement on an annual basis.
Here are five ways to tune up your 401(k) Plan:
- Start saving today: if your company offers a 401(k) Plan, and you are eligible to participate, take advantage of this tax-deferred opportunity to save for your retirement. If you are unable to save a lot right now, get started with what you can afford to contribute. The sooner you start the sooner your contributions can begin compounding and growing.
- Get the free lunch (employer match)!: if your employer’s plan offers a matching contribution try to save enough to get the full match. It’s like an instant raise to help fund your future retirement.
- Consider Roth (after-tax) contributions: many plans offer Roth contributions—after-tax contributions—where you pay upfront taxes on your contributions today, but qualified withdrawals will be tax-free in retirement.
- Diversify your investments: one of the best ways to grow your account is to diversify your investments among several different types, such as stocks and bonds. Having a diversified portfolio can help manage risks and may help you weather the market’s ups and downs. It can also help you remain focused on the long-term (which is the goal)!
- Update your beneficiary: life happens and sometimes the less obvious things such as beneficiary designations, are forgotten. When a life event occurs—the birth of a child, marriage, or divorce—this is a good time to keep your beneficiaries up to date.
Do you still have questions or would like to know more about saving for retirement? Reach out to your Aldrich Wealth retirement plan consultant for more information.
MEET THE EXPERTS
Lead Retirement Plan Consultant
Neil Plein, CPFA™, AIF®
Aldrich Wealth LP
Neil is a Certified Plan Fiduciary Advisor (CPFATM) and Accredited Investment Fiduciary (AIF®) who acts as the quarterback of a retirement plan. He guides employers through the overall plan management with the knowledge to do a deep dive into any aspect of plan operation. Neil connects the dots between internal staff and external service providers…
- Corporate retirement plans
- Recordkeeper selection
- Strategic planning and consultation
- One-to-one consulting participant meetings
- Certified Plan Fiduciary Advisor (CPFATM)
- Accredited Investment Fiduciary (AIF®)