First, you may want to read our current market commentary. It details why the markets are particularly attractive right now. You can check it out here.
Employer retirement plans are often your greatest investment, for several reasons.
- Funds tend to stay invested long-term, riding out down cycles to capture real growth
- Salary-deferral investments made with every paycheck take advantage of market moves buying more shares when markets are down, and less when prices are higher.
- Many employers match some contributions to help build your retirement funding.
Don’t limit your contributions to only capture your employer’s match.
- Remember that Traditional 401(k) deferrals are pre-tax, so an extra $100 a month typically reduces your bi-weekly paycheck by only $32.
- The 2025 contribution limit is $23,500. If you’re 50 or older, you can add another $7,500.
Do you still have money in a former employer’s plan?
- Employers have greatly narrowed plan investment choices to avoid liability after the tech bubble of 2001.
- Some plans restrict investment choices to “target date” and generic index funds.
- If you’re retirement-minded, you can “rollover” an old 401(k)’s balance to an IRA without tax impact, usually getting greater freedoms in how you invest and spend your savings, including your own tax withholding choices.
Contact us to discuss your situation.
