Do You Have a 401(k) Set Up?

Whether you are in your 20’s or in your 40’s, the time to start investing in your future and retirement is NOW!

It’s best to start saving as early as possible, but it is never too late to start!

Here are some tips when creating your 401(K):

• Find out if your employer does a 401(K) match! → If so, accept it, it’s free money!
• Decide how much you want to contribute. Remember, traditional 401(K) contributions aren’t taxed.
• Consider a Roth 401(K) instead.
  • Decide which is best for you:

“Traditional 401(k) deposits give you a tax break for the year you make the deposit, but income tax is due when the money is withdrawn. Roth 401(k) contributions are made with after-tax dollars and withdrawals in retirement are tax-free.” – U.S.News.com

• Start with small contributions & gradually increase them as your income increases.
• Research and decide which is right for you:
  • Choose between a target-date fund / life-cycle fund or choosing a diversified portfolio of stocks/bonds/etc.
• The lower the fees, the more money your 401(K) will make you.
• Do not borrow against your 401(K). It will have to be paid back in a certain amount of time or it could be considered premature distribution.
• Mutual funds are long-term investments, so watch them, do not touch them.
• When you change jobs, roll over your 401(K).