We'd like to inform our clients, it is important that you take the time to review your 401(k) plan and make any changes that fit your needs. Let's discuss some important concepts you need to know for reviewing your 401(k) plan.

When is the last time you reviewed your 401(k) plan account or made any changes to it? If it’s been a while, you’re not alone. 73% of plan participants spend less than five hours researching their 401(k) investment choices each year, and when it comes to making account changes, the story is even worse.

When faced with a problem or challenge, many of us are programmed to try to figure it out on our own rather than ask for help. The Christmas Eve ritual of assembling toys without looking at the instructions and that road trip when we refused to stop to ask for directions come to mind. But when we’re talking about 401(k) investing, choosing to go it alone rather than get help can really hurt.

Improved savings rates – 70% of participants who used 401(k) advice increased their contributions.
Increased diversification – Participants who managed their own portfolios invested in an average of just under four asset classes, while participants in advice-based portfolios invested in a minimum of eight asset classes.
Increased likelihood of staying the course – Getting advice increased the chances of participants staying true to their investment objectives, making them less reactive during volatile market conditions and more likely to remain in their original 401(k) investments during a downturn. Don’t try to do it alone.

Get help with your 401(k) investments. Your nest egg will thank you.

 

Before rolling over your 401(k), take stock of the broader benefit structure GEN has in place for you. Without a traditional pension, your 401(k) - alongside Social Security - forms the foundation of your retirement income at GEN. GEN may offer a 401(k) employer match - review your Summary Plan Description for current match rate and vesting details. Your overall withdrawal strategy, account sequence, and Roth conversion opportunities leading up to and into retirement deserve careful, personalized analysis given the income-sequencing implications.

On the healthcare side, GEN does not offer continued medical coverage to retirees, which means coverage through the company ends when employment does. Planning for the cost of health insurance during any gap between your retirement date and Medicare eligibility at age 65 is a critical step - marketplace coverage, COBRA continuation, or a spouse's employer plan are common options. Building an accurate estimate of bridge-coverage costs into your retirement income projection prevents underestimating one of the largest variable expenses retirees face. Building a retirement plan that weaves in every GEN benefit - pension, healthcare, savings - is the most reliable way to project your future income.

Sources:

The Retirement Group or www.theretirementgroup.com
“Retirement Plans-Benefits & Savings.” U.S. Department of Labor, , www.dol.gov/general/topic/retirement.