The Basics of a 401k

Schedule a Meeting

Have you wondered about the basics of a 401k plan? Your 401k or 403b is different than other benefits like insurance that you cross your fingers and hope you never use….

Everyone dreams of retiring one day and using your retirement benefits. So lets talk about the basics of how you can do that.

But first, let me ask you a question. The question is, how do you as a 401k or 403b participant become a 401k superhero to your future self?

That is the question, and these videos will give you the answers. Hey, I’m Jonathon Schultheiss and welcome to the Becoming a 401k Superhero videos.

The basic 401k or 403b plan is designed for you to save money for retirement. The less you save in it, the less you will have at retirement. The more you save in it, the more you will have at retirement. It’s really that simple.

And, if your company offers a match, that match is usually based on how much you save. The more you save, the more your company will usually match you, up to a percentage of your income.

So, if you are saving less than what your company is matching, you are leaving money on the table. If you have questions on your company match, let me know.

Plus, the sooner you get started and saving, the more you could have at retirement. In other words, someone who started saving in their 20s, could have much more money than someone who started saving in their 40s.

When you enroll in your plan, you need to determine how much you want to contribute. I recommend choosing a percentage you feel comfortable with. Then making increases every year of as little as 1%, if possible. See my video on the power of 1% for info on this.

So here are three things you need to remember when getting enrolled in your retirement plan.

1. Get enrolled as early and as soon as you can.

2. Make sure you are saving at the company match if you can.

3. Try to increase your contribution every year.

If you follow these three simple tips, you could potentially have a more successful retirement. And you would be well on your way to becoming a 401k superhero to your future self.

If you want talk about ways to maximize your 401k plan, then click on the link above and let’s have a conversation about your plan today.