5 Frequently Asked 401k Questions

Today’s Prep:

Do you have a question about your 401(k)? There’s a good chance you’ve wondered about at least one of these five frequently asked questions when it comes to your 401(k).

(Click the featured times below to jump forward in the episode)

 

Equipping Points:

401(k)s are often a person’s largest asset outside of their home, especially because it is relatively simple to sign up for through your work. A typical rule of thumb is to save between 10-15 percent of your income toward retirement. But past that, there are common questions everyone asks at one point or another when it comes to 401(k)s. Eric answers five FAQs on today’s episode of Retirement Ready.

Is it worthwhile to use the advice offered through the 401(k) plan at work or not worth the fees? Eric says to ask what kind of services you are actually receiving for that advice. Will the funds be managed or is it a one-time thing to get the funds set up?

Should you contribute beyond the company match? Definitely always contribute at least up to the match! But after that it can get a little more complicated. You may want to contribute more to a Roth IRA after you’ve contributed to the 401(k). There may be future tax benefits in doing this.

Are target date funds a good idea? The target date will shift the allocation as you get older so they are less aggressive. Eric says to choose a target date a few years beyond when you actually plan to retire if you do a target date fund.

Finally, when should you take money out? While these accounts are relatively easy to set up, be sure to work with a financial advisor so that whatever you do with the money aligns with your financial plan.

Listen to the full episode above as we revisit this topic or click on the timestamps below to get your 401(k) FAQs answered.

[1:47] – Should you get advice through the company’s 401(k) program?

[3:21] – Should you contribute as much as possible to a 401(k) or just up to the match?

[6:00] – Should you use a target date fund?

[8:28] – Is it a bad idea to take a loan against the 401(k)?

[9:54] – When should you take money out and rollover the 401(k) to an IRA?

 

 

Related Resources:

A Message For The Good Savers

7 Deadly Sins of Financial Planning

Getting Your Health And Wealth In Shape

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Do You Agree or Disagree with this Retirement Advice?

April 8, 2021

Which of these statements is worth paying attention to and which ones should you take with a grain of salt? Eric shares whether he agrees or disagrees with five retirement planning statements.

Read More

Mailbag: Can I Sell My Home and Just Rent in Retirement?

April 1, 2021

Ever consider a retirement plan that seems a little unorthodox? There’s no one-size-fits-all when it comes to financial planning, so Eric answers three questions in the mailbag from people considering a less traditional decision to make their plan work for them.

Read More

What Creates A Sense of Urgency With Your Financial Plan?

March 25, 2021

Have you been procrastinating putting together a financial plan or do you have a sense of urgency? What events may prompt you to act quickly?

Read More

Should You Follow Dave Ramsey’s Financial Advice?

March 18, 2021

Is the baby step program and financial advice from Dave Ramsey for everyone? What does a registered financial consultant have to say about it?

Read More

Financial Wisdom from Calvin and Hobbes

March 11, 2021

Perhaps a bit unexpected, the comic strip Calvin and Hobbes had a lot of great life and financial advice to dole out. Which of these apply to your financial situation?

Read More

Can You DIY Financial Planning?

March 4, 2021

What reasons might someone debate going DIY when it comes to a financial plan? Is it better to go to an advisor or is sometimes DIY right for you?

Read More

Translating Financial Jargon

February 25, 2021

Do you know the difference between large cap and small cap funds? What are basis points? This episode will discuss various financial jargon to help translate what these really mean.

Read More

Financial Fill in the Blank

February 18, 2021

What’s the best way to not run out of money in retirement? What are most people worried about when retirement planning? Eric fills in these blanks in today’s episode.

Read More

What to Know About Biden’s Initial Executive Orders

February 11, 2021

Let’s take a look at some of Biden’s executive orders so far in his first few weeks. How could they alter your financial plan?

Read More

Mailbag: Retirement Planning With Separate Bank Accounts

February 4, 2021

From managing your income as a contract employee to managing your income in retirement, Eric answers three questions from the mailbag in today’s episode of the podcast.

Read More

Leave a Comment