With a 401(k), you're in control of your own financial future. You can choose how to invest your contributions and whether to take a loan against them, and you'll have access to funds that can be used for emergencies or other important needs. But if you don't analyze your 401(k) plan regularly, you might be missing out on opportunities to improve your retirement savings—and even worse, you could end up contributing too much or too little money into your account each month.
A 401(k) is a tax-deferred retirement savings plan that allows employees to save for their retirement. The money you contribute to your 401(k) is deducted from your paycheck before taxes are calculated, which means that you don't pay taxes on it until you withdraw the funds in retirement. It's important to understand how this type of account works and what its benefits are so you can make an informed decision about whether or not you want to participate. A 401(k) comes with several advantages:
Most people will be unprepared for retirement without taking steps to ensure their financial security during this period. Building wealth can help ensure that your golden years are not spent worrying about money, but rather enjoying the freedom retired life provides. Unfortunately, with a 401(k), you can't just choose any investment you want. Instead, you're limited to the plan's list of pre-approved investment options. Knowing more about the options available can ensure that you are getting the best return without wasting valuable money on fees and other surprises. By analyzing their plans, investors can improve their chances of success by making smart decisions that optimize their portfolios.
When you're trying to decide what kind of retirement program to offer your employees, it can be difficult to determine whether a 401(k) plan is right for you. There are many different types of plans available, and each of them has its own pros and cons. You’ll need to consider the tax implications, whether or not it's going to be easy for your employees to enroll in their chosen plan, and if there are any hidden fees. If you're not sure how to go about making this important decision, a professional analysis can help. A financial advisor will work with you and your HR department to evaluate all the different options available so everyone who works for your company has access to an effective retirement savings plan.
Are you concerned that your current 401(k) plan isn’t going to provide the retirement savings you expected? Do you need to choose the right 401(k) plan for your company? Let Mike Garcia help you find the perfect solution with a professional 401(k) analysis. Contact our office to learn more or to schedule an appointment.