Some of you are starting a new job this year – congrats! Others have maybe been at the same place for a while. Just like offseason evaluation, it can be a good time to review your financial situation to make sure different pieces to the puzzle are in good order. A great place to start is your employer plan. Below are a couple of practical tips to consider now before the “grind” of a new season starts.
1. Review how your employer retirement plan 401k/403b is invested.
For some people it maybe hasn’t changed since you started and just had it set up by default. Or have you moved around jobs and have a couple old plans out there that are being neglected? As a result, you could be leaving a lot of wealth accumulation on the table. I would recommend you call your custodian provider (Fidelity, Schwab, etc.) or get with your financial advisor. If you don’t have one, I am just one email away. 😊
2. Do you have a ROTH 401k/403b option?
Because many employer plans get set up by default, your contributions are most likely going into the pre-tax bucket…along with the employer match if there is one. Most employer plans over the past 5-10 years have implemented a ROTH bucket where you can put your contributions towards. It goes in after-tax but grows and gets distributed TAX FREE down the road. We don’t know where taxes are going, but we can only guess up since they are at historic lows. I recommend you consult with your tax professional based on your specific situation.
3. Review your group disability insurance policy (if you have it).
If the only long-term disability policy you have is through work, we need to talk!
4. Review your group life insurance coverage.
Most companies/schools will offer 1-2x your salary. However, like disability insurance, you must check and see if that is enough coverage for you and/or your family, especially if that is all you have. This is where having some conversations with a professional is critical.
This list might feel mundane, but it’s a few quick actionable steps that can set you up for financial success – just like off-season preparation!
If you have questions about any of these steps, shoot me a quick email and I would welcome the opportunity to talk through these in more detail with you.
Until Next Time,
AT
austint@wealthag.com