As you begin your 401(k) review, your first question might be: “How much should I contribute?” At the very least, put in enough to earn your employer’s matching contribution, if one is offered.
You’ll also want to review your 401(k) investment allocation, which may need to change over time, based on your age, your goals and your other retirement income sources.
You also may want to roll over any 401(k) plans still held at previous employers into one account with your financial advisor. You might save money on fees and reduce paperwork, but, more importantly, you’ll be able to concentrate your resources and pursue a unified investment approach.
A 401(k) review is important so consider taking action soon.Brush Up on Your Estate Plan Basics
You work hard to provide financial security to your loved ones. Yet, to help preserve your family’s financial well-being, you also need to create an estate plan.
For starters, you’ll need a will to distribute your assets according to your wishes. But you also may want to design a living trust, which provides you with more flexibility than a will. For example, with a living trust, you can determine at what ages your grandchildren will inherit the money you’ve left them. A living trust also allows you to bypass the time-consuming probate process.
Other estate-planning tools include a power of attorney and a health care directive, both of which empower others to make decisions on your behalf if you become incapacitated.
Estate planning can be complex, so you’ll need to work with your tax, legal and financial advisors. Developing an estate plan can take some time, but it’s worth the effort.
Contact Wendell at Edward Jones www.edwardjones.com.