And are you watching what’s happening with your funds? Are the values going up? How much of the increase is due to your contribution and your company’s contributions, if applicable?
As the saying goes, “Even if you’re broke, you can pay attention!”
Do you know what the fees are for each of the funds available to you? These are some simple questions that should be readily available to you from your company’s 401k plan administrator. Be advised that the best fit for one person, may not be the best for another – choosing options because another employee has recommended them or your boss told you what to do, may not be in your best interest.
If you’re participating in your company’s 401k plan, you are to be commended for saving. If you’re contributing up to the company match amount – congratulations are due. If you’re contributing over the match amount, have you considered the benefits versus the costs – both today and in the future when you withdraw the funds?
Does your company have a Roth option and do they match funds contributed there as well?
These are some of the questions you need to be asking your administrator and understand your options, the costs and the benefits. Teske Financial Advisors are available to help you think through the options and understand the implications of each decision, both for today and for the impacts on future outcomes. We can help you to get important advice on tax implications, market fluctuations, interest rate changes, inflation effects and many other considerations that aren’t often discussed thoroughly when making these choices.
If you knew you’d be in a better posture after this type of evaluation, what would prevent you from starting now? Select the Contact Us option and we’ll help you to a better financial posture.