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How To Get The Most From Your 401k

| March 13, 2018
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Retirement is something that a lot of people brush off because it’s so far in the future. While planning for your future is strongly encouraged to ensure you’re taken care of, a majority of Americans brush it off. In What Is A 401k?, we went over the big picture of what a 401k is and how it can be beneficial. It’s vital that you start planning as soon as you can for your future because it can be the difference between being prepared for your retirement and feeling a little like you’ve fallen behind.

Four Tips To Get The Most From Your 401k

At Gate City Advisors, we’re able to help you learn how to plan accordingly for your future. We can do this by offering assistance with our wealth management services and retirement plans. Even though a 401k is set up by your employer, we can help guide you to get the most from your retirement plan. Even though you set up a 401k, it’s vital that you know how it works and ways that you can benefit in the best way possible. These tips will help you feel more comfortable with your future. For any questions about your 401k and how to get the most from it, reach out to Gate City Advisors.

Start Small

One way to plan for your future is to start small. Most 401k plans can be determined by you. If you’d only like to put in five percent, then you’re able to do that. You can also decide if you want to choose a percentage or a monetary amount for how much you want to take out of your paycheck and put into your 401k. Most people who are below the age of 32 are not putting money into a 401k even though they have the option to. If you are not putting money into a retirement plan, then keep in mind that even the smallest amount will help you in the long run. You can start as small as you want, but even putting in $10 per paycheck can help you. It’s best to start small instead of not putting any money into your account at all.

Match Your 401k

Many employers offer a matching program and if you work for one of them, make sure that you take advantage of this. An employer matching your 401k can easily make you more money without you having to do much. Matching is one of the most beneficial retirement planning strategies that you can take advantage of because it doubles the amount in your retirement savings account without you needing to take more out of your paycheck or decrease your salary.

Most matching plans have limitations and certain rules, but it’s beneficial to contribute as much money as you can with as little hassle as possible. If you’re not sure if your employer matches, then take the time to ask or find out how much an employer can match without you needing to contribute any more from your paycheck.

Work Backwards

Another great tip to get the most from your plan is to work backward. If you have the ability to be more flexible with your 401k plan, then this tip will carry you a long way. If you’re someone who is ambitious and is aware of your finances, then you’ll want to start working backward to determine what your financial future will look like. You’ll need to do some math to figure out what you can realistically afford to put into your 401k.

While earlier we mentioned that you should start small, if you have the wherewithal to contribute more, you’ll want to figure out how much you can contribute to your salary. To do this, you’ll take the maximum allowable contribution and divide it by the number of the pay periods that you have in a year to see where you are financially. Before you go with that number, ask yourself if you can realistically afford it and if you can, then get started.

Talk To A Professional

If you feel at a loss for what you should do with your 401k, then you’ll want to talk to a professional. A professional will help to educate you on the many other ways that you can take advantage of your 401k. When you come to Gate City Advisors, we’ll provide you with some financial planning, as well as retirement planning, to ensure that you are prepared for your future.

Are you ready to plan for your future? Let’s get started!

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