There are so many other things to think about besides saving for retirement. You, like so many people, may want to avoid worrying about it until you have the rest of your financials in order.
“I can save for my retirement after I pay off my student loans.”
The truth is, you should already be saving for your retirement, which is why it’s important that we work on your strategy together. Thankfully, there’s a simple way for you to start (or continue) saving – your 401k. More and more companies are offering 401ks as part of their benefits package, but are you getting the most out of yours?
What is a 401K?
Not every employer will set up a 401k for you or contribute to a 401K account, so when you find a company that will do either (or both) of these steps, you should jump at the chance to use it.
Why should you invest in a 401k?
In most cases, your company makes it easy for you to contribute. They’ll help you set up automatic deductions from your paycheck that go directly into your account, so you never have to think about it. Depending on the type of 401k you have (Roth or traditional), you'll pay taxes on the funds before they're added to the account or when you withdraw the funds from the account, respectively.
How can you get the most out of your 401k?
What if you change jobs?
There are yearly limitations to how much you can contribute to a 401k, there are taxes, and there are limits to your employer’s contributions, but ignoring this investment opportunity could be a mistake you’ll wish you could take back.
If you’d like to discuss your 401k plan in more detail, please contact the office.
Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty.