Today we’re going over home buying tips so you can snag a great deal on your dream house! What You Need to Know About Buying a House This summer is wrapping up, but things are about to get busier for us. My mom was recently offered a job in the area and so she’s asked […]
Want to get the most out of your 401(k)? Learn the key guidelines on how you can choose the best investment options for you!
Making the Most of Your 401(k)
Chances are if you’re investing for your retirement, the bulk of that money is stashed away in your 401(k).
For those whose employers offer them, they’re an easy option to sign up for and contribute towards.
But are how comfortable are you with how it is doing?
To help sort things out, Jonah Kaufman is joining me for this episode.
Jonah is a financial advisor at Coastal’s Wealth Management Services.
These will give you some starting points and ideas on what you need to talk about.
In this episode we’ll discuss:
- Why your 401(k)s are a great foundation for retirement savings
- What factors to consider when you’re investing
- Understanding some of the different options that your 401(k) may offer
Hope you enjoy!
Just to make sure we’re on the same page, this episode is NOT about specific investment advice.
You would need to consult a qualified financial professional who can evaluate your unique circumstances.
Resources to Stay on Top of Your 401(k)
Here are some resources to make managing your money much easier!
- Best Budget and Money Apps: Personal Capital, Tiller, Mint
- Free 401(k) Analysis: blooom
- Grow Your Stash Faster: High Yield Savings with CiT Bank
- Automatic Saving: Qapital
- Jumpstart Your Marriage and Your Money
- Master Your 401(k): How Much Do We Need to Contribute?
- Master Your 401(k): Why You Need to Keep an Eye Out for Fees
- Robots Can Manage Your Money. But Even They Need Humans
- A Smarter Way to Think About Financial Decisions
Thank You to Our Sponsor Coastal!
Support for this podcast comes from Coastal Credit Union! If you’re living in the Raleigh Durham area and looking to bank better, come check out Coastal today.
If you want to be better prepared financially for retirement, please check out Coastal’s 401(k) Planning Calculator.
Key Takeaways on Optimizing Your 401(k)
Before we wrap up I want to focus on some key takeaways I got from speaking with Jonah and preparing for this episode:
- Understand yourself as an investor.
- Performance isn’t tied to cost with your investments.
- Don’t check your investments too frequently.
If you’d like to chat more about your financial goals, please join us in our private and free Facebook group – Thriving Families.
Hope to see you there!
Support the Podcast!
Thank you so much for listening to the podcast!
- Spread the word! If you enjoyed this episode and think it can help a buddy get on the path to dumping debt and become financially free, please share.
- Leave a review. Honest feedback and reviews make a big difference and gets the word out about the podcast. Leave your review on Apple or Stitcher.
- Grab a copy of Jumpstart Your Marriage and Your Money. My book is designed for a busy couple to set up their finances in 4 weeks. Get tips and tools that have worked for other couples on their journey of building their marriage and wealth together!
Last week we started the conversation on finding the best way for you to invest for retirement. Today we’ll talk a bit about rolling over your old 401(k) into an IRA.
Why Rolling Over Your 401(k) Makes Sense
There are a few reasons that make rolling over your retirement money a financially smart move.
- More Control: One complaint some people have with 401(k) is that they can only choose what is available in the employer plan.
- More Choices: Tied with control, you generally also have more choices with an IRA. You can rollover your account with a ton of providers including brokerage firms, online discount brokerages, banks, mutual fund companies, and robo-advisors.
- Lower Costs: Reviewing my husband’s 401(k) plans, I’ve noticed that the mutual funds selected aren’t the cheapest. They are actively managed and have fees associated with purchasing them. Having an IRA can allow you to find lower cost funds.
Simplify: I’ve seen people move their money to also consolidate their account, but usually it’s simply cutting down accounts and using the best one they currently have.
Where to Rollover Your Old 401(k)
For those looking at moving their money, the good news is that you have plenty of provider who would love to have your account.
There are a few thing you’d probably want to keep in mind when looking for a provider:
- Solid Reputation: Is this a brand who is known for their dependability and outstanding customer service?
- Account Fees: Do they charge an annual fee to maintain your account? Are there minimum investments and or contributions you need to make to avoid these fees?
- Investment Fees: Even if you go with index funds, double check to make sure your provider are competitive with their charges.
I definitely like Vanguard and Betterment as places to invest your IRA contributions. They are both some great no hassle, low cost options that make it simple to invest in your future.
No matter whomever you choose, just check in enough to make sure they are treating you and your money with respect.
If you have a provider you’d like to give a shout out to, please share them in the comments below, I’d love to get the word out on companies treating their customers right.
Until next time, take care!