Sponsored article written by Steve Corcoran
Financial Consultant at Abbey Credit Union
Congratulations! Visiting this site proves that you are already ahead of the rest. You know that, like everything else in money matters, you have to do your research.
A 401(k) is a retirement savings plan that automatically sets aside money from your paycheck before taxes are taken out. This plan is set up between you and your employer, either upon hiring or after you have been with the company for a specified amount of time.
There are many options available concerning your own 401(k) plan. Here are a few quick tips to get you on your way.
The best way to get the most out of your 401(k) opportunity is to begin as soon as possible.
Most of the time, your employer will match what you put in to your 401(k) if you contribute a minimum percentage. Try to at least reach this minimum percentage so you can get this “free money” from your company.
Taxes will not be taken out of these funds until you begin withdrawing from them, much later in life. This allows you to earn more interest throughout the years!
Don’t avoid setting up a 401(k) plan because you don’t know if you will be with the company long enough to be “vested.” (If you are not vested, the amount that your employer puts into your account is not technically yours until you have been with them for so many years.) Know this: the money you put into your 401(k) will always be yours, whatever you can get from the company is just icing on the cake.
You can always adjust the percentage of your income that you put into your 401(k)- depending on if you feel you can afford to save more or need to slow it down for a little while. For example, say you get a 3% pay raise, allow 1% of this raise to be set aside and your income will still increase by 2%!
Upon establishing your 401(k) plan, you will be provided with a list of available mutual funds in which you can invest your money.
If you need help with choosing what mutual funds to invest in, get a professional to help. We have contracted a full time advisor here at Abbey that will be happy to help you at no fee. (Contact Steve Corcoran for an appointment at 937-898-3345) If you wish, you may also call the company directing your 401(k) to see if they can provide any advice.
Follow these links for more detailed information on 401(k) plans and all they have to offer!
The information contained in all articles, links, sponsored articles, and FAQs within this website does not necessarily represent the views of Abbey Credit Union and its affiliates. This website is designed to offer helpful hints to consumers. Please consult an attorney, CPA, or other professional for expert advice.
