by Wendell Whitman
Take Advantage Of Employee Financial Education
Along with their 401(k)s, many employers also provide some level of financial education - so take full advantage of it. Pay particularly close attention to the descriptions of investments. Your 401(k) plan might offer a dozen or more investment options, including accounts made up of stocks, bonds and money market instruments. Study these investment choices carefully as you put together your 401(k) portfolio.
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|You’ll also want to study the “nuts and bolts” of your strategy. What fees, if any, are involved in your 401(k)? How often can you change your investment allocation? How often will you get statements? These are the types of questions you will definitely want answered as you continue to explore your strategy.
To get the maximum benefits from your plan, you’ll need to fully understand how it works - so take a close look at those employee education materials.
When Changing Jobs, Don’t Shortchange Your 401(k)
Your 401(k) plan is a popular retirement savings vehicle. But what should you do with your 401(k) if you leave your job before you retire? Let’s consider a few of your possible options.
First, you could cash out your plan, but some money will be withheld for taxes and you might have to pay a penalty. Even worse, you’ll lose a key source of your retirement income.
If your employer allows it, you could leave the money in your 401(k) even after you leave your job. Or you might be able to roll over your entire 401(k) to your new employer’s plan.
Another alternative is to move the money to an IRA, which can provide you with a variety of advantages, such as almost unlimited investment choices.
Before making any moves with your 401(k), consult with your tax advisor. Take your time and make the choice that’s right for you.
Contact Wendell at Edward Jones www.edwardjones.com.
P.O. Box 61901
Boulder City, Nevada 89006
Phone (702) 294-1392 Fax (702) 294-1392
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