Top 3 Things to Think About…401(k) or 403(b) Qualified Plans

Investing doesn’t have to be intimidating or overwhelming.

Wealth Planning Corporation is here to help you understand your options when it comes to your tax-advantaged retirement plans.

We’ve created a “Top 3” series to get your thoughts focused on a variety of financial planning topics. Have a specific area that you want guidance in? Let us know! You can contact us here or browse the blog to view other articles, like the Top 3 Things to Think About College Planning.

Top 3 Things to Think About…401(k) and 403(b) Qualified Plans:

In your early years, invest as much of your money as possible. Ideally, you would invest at least enough to receive the company match. The younger you start, the more aggressive you should be regarding your investments.

- Your investment in these plans will benefit from the power of compounding interest. The impact of this compound interest can set you on a great savings path. View this PDF to see an example of how compound interest can work for you.

Diversify the types of accounts that you allocate your funds to. Our certified financial planners can help you better understand your allocation and help you set targets for them. As the market changes, you want to rebalance your opportunities for investment.

- Need a primer on some of these investment terms and definitions? Check out this handy resource from the U.S. Securities and Exchange Commission.

Adjust your targets you get nearer to retirement to adjust for risk. The closer you are to your ideal retirement age, the more secure you want your retirement funds to be.