7 Characteristics a Good Retirement Plan Has That Will Help You Save More
“Neighbor-hoodwinked!” Uh oh! Mr. Rogers had a potluck dinner and didn’t invite the people next door. How foul! Now, they want to put him on his train trolley and run him out of town! Wait! There’s been a misunderstanding; he’s interested in a smart retirement plan, so he had some PBS coworkers over for a Q & A session. You see, he’s trying to secure his financial future, not become a Fake Fred!
We, at Achieve Financial Group, are going to put on our cardigan sweaters and pay him a visit. We plan to tell him what type of retirement plan he should have with his company. And since, he’s so into make-believe, we’ll put on a puppet show to define some of the factors he should consider before deciding to participate in an employer sponsored plan:
- Eligibility – Make sure there’s a short wait period for your plan to work
- Contribution Limits – It is important to determine how much you can potentially contribute to a company sponsored plan.
- Matching Incentives- Many retirement plans will offer special incentives to encourage participation and give your account an immediate boost.
- Vesting – Get vested quickly, so you can have 100% access to your funds when you leave the company.
- Investment Costs and Fees – Understand the costs involved with your retirement plan and how much it will eat into your savings.
- Simplicity and Convenience –The plan should be simple, easy and automatic to encourage smart financial decisions.
- Asset Allocation Guidance and Advice – Have a strategy that is designed to help you spread out your long-term investment money over a variety of different investment products.
Neighorhooray! Now that Mr. Rogers has an ideal retirement plan in place, he should do some community outreach and throw a block party. He can celebrate his future financial freedom with everyone in his zip code. For all the sour residents who gave up on him, it’s a beautiful day in the neighborhood, so please, won’t you be his neighbor?
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