New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Are American National Group Employees Consistently Making These 401(k) Mistakes?

This paper is for American National Group employees who will have to know the basics of their 401(k) plans, including the role of the company's contributions and the way the assets are invested in order to understand the basics of the retirement planning process.'

'['Free' means that, as a American National Group employee, you can optimize your retirement savings and, thus, your future financial independence by frequently checking and changing your 401(k) contributions, as well as by consulting for a Roth 401(k)].

In this article, we will discuss:

1. How to increase your chances of retirement savings by taking advantage of employer contributions.

2. What are the conditions under which you own the company contributions? Do not miss the money! A simple guide to the basics of stock investing within your 401(k) plan.

3. It is not intended to be an exhaustive treatment of the subject, but rather a general introduction that will help you understand the basics and consider whether or not to participate.

In a time of increasing financial complexity, it is essential to know how to make the most out of your savings, especially when you are planning for your retirement. The 401k plan has been and will be one of the best ways to build wealth over the long term. However, as with any instrument, its effectiveness depends on the user’s understanding of its capabilities and potential risks.

Harnessing Matching Contributions:

Most of the American National Group companies provide for matching schemes under which they pay for a certain percentage of the amount an employee places into a 401k. On average, companies match 4.5% of employee contributions, as per Vanguard’s annual report. Although this percentage may not be very high, it can amount to a lot of money over the years. When you include the interest that is charged on the account, this can make for a good retirement portfolio.

Vesting Requirements - Patience Pays:

Vesting refers to the conditions under which an employee is entitled to the company contributions to a 401(k) plan. Two main types are:

Cliff Vesting: Contributions are fully vested at the end of the set period, which is usually three years.

Graded Vesting: The employer’s contributions become vested at 20% annually from the second year and at 100% by the end of the sixth year.

Thus, if you change jobs before your contributions become vested, you will deny yourself access to the money. So, it is important to know your company’s vesting policy.

The Risk of Company Stock:

While it may be tempting to invest in your company’s stock, it’s wise to limit such investments to 5-10% of your total 401(k) assets. This is because too much money is at risk in the event the company is not doing well.

The Dual-Edge of Stock Investments:

Equities, or stocks, shouldn’t be avoided entirely. Although they are risky, very conservative products may not perform well versus inflation, and, thus, reduce your buying power in the future. This is where balanced equity investments come in to help with this.

Sources:

Featured Video

Articles you may find interesting:

1. Internal Revenue Service (IRS). 'Matching Contributions Help You Save More for Retirement.' IRS, https://www.irs.gov/retirement-plans/matching-contributions-help-you-save-more-for-retirement . Accessed 17 Feb. 2025.

2. Internal Revenue Service (IRS). 'Retirement Topics - Vesting.' IRS, https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-vesting . Accessed 17 Feb. 2025.

3. Empower. 'What is 401(k) Matching & How Does It Work?' Empower, https://www.empower.com/the-currency/work/how-does-401k-matching-work . Accessed 17 Feb. 2025.

4 Investopedia. '401(k) Vesting Rules.' Investopedia, https://www.investopedia.com/401-k-vesting-rules-5323652 . Accessed 17 Feb. 2025.

5. National Council on Aging (NCOA). 'Leverage Employer Matching Contributions to Your 401(k).' NCOA, https://www.ncoa.org/article/matching-contributions-101-how-to-maximize-your-retirement-savings-now . Accessed 17 Feb. 2025.

What type of retirement savings plan does American National Group offer to its employees?

American National Group offers a 401(k) retirement savings plan to its employees.

How can employees of American National Group enroll in the 401(k) plan?

Employees of American National Group can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does American National Group provide matching contributions to the 401(k) plan?

Yes, American National Group provides matching contributions to the 401(k) plan, subject to certain eligibility criteria.

What is the vesting schedule for employer contributions at American National Group?

The vesting schedule for employer contributions at American National Group typically follows a graded vesting schedule, which means employees earn ownership of the contributions over a period of time.

Can employees take loans against their 401(k) plans at American National Group?

Yes, employees may have the option to take loans against their 401(k) plans at American National Group, subject to the plan's terms and conditions.

What investment options are available in the American National Group 401(k) plan?

The American National Group 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can employees change their contribution amounts to the 401(k) plan at American National Group?

Employees at American National Group can typically change their contribution amounts on a quarterly basis or as specified in the plan documents.

What is the minimum contribution percentage required for the 401(k) plan at American National Group?

The minimum contribution percentage for the 401(k) plan at American National Group is usually outlined in the plan documents, often starting at 1% or 2%.

Does American National Group allow employees to make catch-up contributions to their 401(k) plans?

Yes, American National Group allows eligible employees aged 50 and older to make catch-up contributions to their 401(k) plans.

What happens to an employee's 401(k) balance if they leave American National Group?

If an employee leaves American National Group, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the plan if allowed.

Additional Articles

Check Out Articles for American National Group employees

For more information you can reach the plan administrator for American National Group at One Moody Plaza Galveston, TX 77550; or by calling them at (409) 763-4661.