401(k) Strategies
On this episode of Better Money on WFSB, Joel Johnson, CFP® and Kara Sundlun discuss 401(K)s, which are often people’s biggest retirement asset. Some important factors to consider are:
- Risk level
- Company match requirements
- Fund selection
- Rollovers
When considering your risk level, you’ll want to ask yourself, “How would I feel if I lost 10% or 20% of the money?” and think of it in dollar amounts. If you are not okay losing that amount of money, lower your risk to a more appropriate level.
Many employers offer a match in addition to contributions by employees. For example, contribute 6% to receive a 3.5% match. It is highly recommended to save at least the minimum for the match, or you end up throwing away free money. Like Joel said, “It’s like walking over $100 dollar bills on the sidewalk and not picking them up.”
Making a fund selection is much more challenging than it was, say, 20 years ago when there were only 4 options to choose from. Nowadays, there are over 70 different funds. A lot of people will spread their money out between too many; choosing just 4 or 5 funds will do the job.
When you’re over the age of 59 1/2, consider looking at rollover options. Look at this with a financial advisor; some people shouldn’t move this money out, but others will see more flexibility with a rollover.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
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