Skip to content

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

Mailbag: When Should I Take Social Security?

July 2, 2020

Are you wondering how much longer you really have to wait before claiming Social Security? Or are you looking to find the perfect financial advisor but haven’t found them yet? Eric answers three questions from the mailbag in this week’s podcast.

Read More

Financial Lessons Learned from the Farm

June 25, 2020

Whether you are growing some backyard tomatoes or have 100 acres of farmland, what are some financial lessons to be learned? You don’t need a green thumb to understand these financial principles.

Read More

Financial Truth Bombs

June 18, 2020

Need someone to tell it to you straight? On today’s episode, Eric gives four financial truth bombs that might change the way you think about your financial plan and your portfolio.

Read More

Outdated Financial Rules

June 11, 2020

What financial rules are worth following and which ones need an update? On this episode, we discuss several known financial rules to see which ones are dated and which ones stand the test of time.

Read More

How To Mess Up Your Retirement Plans

June 4, 2020

How can you know your retirement plans are what they should be? What thoughts and assumptions can ruin your retirement? One thing’s for sure–you don’t want to mess it up!

Read More

The Customer Ain’t Always Right In Financial Planning

May 28, 2020

When you see a financial advisor, do you want them to always tell you “you’re right” or do you want someone to coach your through your financial plan? Let’s talk about when the customer isn’t always right when it comes to financial planning.

Read More

What To Do With Unexpected Extra Cash & Other Mailbag Questions

May 21, 2020

While many are hitting hard times financially, maybe you are among the few who are doing well and trying to make the most of it like Grace in Ames. Eric gives some advice on what to do with extra cash as well as answering two other questions from the mailbag.

Read More

Coronavirus Update and a Look at Interest Rates

May 14, 2020

When you retire, it’s important to set up several sources of income, particularly predictable income. What are some forms of reliable income and what streams of income are more vulnerable? We’ll explore the options and help you determine if they might work for you.

Read More

Finding Predictable Income Sources in Retirement

May 7, 2020

When you retire, it’s important to set up several sources of income, particularly predictable income. What are some forms of reliable income and what streams of income are more vulnerable? We’ll explore the options and help you determine if they might work for you.

Read More

What’s The Difference Between These Important Financial Terms?

April 30, 2020

Do you know the difference between a Roth contribution and a Roth conversion? What about individual bonds and bond funds? Eric explains the difference between these important financial terms so you can decide what should be included in your financial plan.

Read More

Leave a Comment