Contributing to a 401K plan is one of the most important things you can ever do. The days fly by so swiftly, and before you know it, you look up and realize you've reached your golden years. If you have planned well, you could be sitting pretty, no longer needing to work, and able to fully rest and enjoy your time the way you want to. Structuring your 401K plan the right way is the key to making it all happen. Read through the information below to see how a financial planner can help you create a 401K plan design that works for you.
Maximize Your 401K Profitability With A Financial Planner
Setting aside a specific percentage of each paycheck to be sent directly to your 401K plan is really only the first step. This gets the ball rolling immediately so you can begin building your nest egg as soon as possible. However, if you rely solely on what you put into the retirement account you could be selling yourself short. There are usually other ways to increase your savings and the goal of your financial planner is to uncover these techniques so you are able to increase your haul exponentially.
Planners will usually start by figuring out the maximum amount an employer will match. Matching is essentially the process whereby your employer will put the same percentage of your salary into your retirement account as you do. You definitely don't want to miss out on the matching process because it's basically the same thing as leaving free money on the table!
Also, perhaps the organization you work for offers additional matching if you fulfill certain job positions or work additional hours. Your financial planner can find out more about these sorts of things so your 401K grows and grows.
Know When You Are Vested
You should also partner with a financial planner because they can keep you aware of your vesting status. Being fully vested means you have complete ownership of your 401K account and won't risk losing some of the hard-earned money you've put into it because you left the plan too early. This is important because if you are ever thinking about leaving a company you want to make sure you are vested so your careful planning won't be in vain.
Putting your 401K house in order starts by talking to the right people. Set aside some time to speak with a financial planner to glean from their expertise today.