Retirement Savings 101
Explore the reality of retirement and how it impacts your future decisions. Don’t miss this opportunity to learn from the best and take control of your retirement.
Download the slide deck and watch the webinar recording above.
This session covers retirement savings practical tips and breaks down the nuances of the world of investing so you can make the most of your retirement plans. Whether you’re just starting out or looking to refine your strategy, this webinar has you covered.
Presenter: Gary Ruybalid, CFP, Retirement Plan Manager at Slavic401k
Gary brings a wealth of knowledge and experience, making complex concepts easy to understand and actionable. You’ll walk away with valuable insights and a clear plan.
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Session Highlights
- Foundation of Retirement Savings
- Contribution Amount
- Risk/Return Tradeoff
- Time Compounding
- Fund Lineup Basics
- Generational investing
- Small Steps Now for Big Gains Over Time
Key Questions Answered
- Q: Does it make sense if I am 59.5 to pull $ out to pay off my mortgage? If you are at least 59½ years old, you can withdraw money from your 401(k) account without penalty. However, using the money to pay-off your mortgage is a personal decision and would depend on several factors to determine if it’s the right choice for your needs. We would suggest consulting with a financial advisor.
- Q: I’m interested in retiring around the age of 50. What are your recommendations to achieve this? Are there penalties for withdrawing at that age? If you are planning for early retirement, your best bet is to first maximize your contributions to your 401(k), while also investing other money into a Roth IRA or other retirement savings accounts. You will not be able to withdraw money from your 401(k) prior to age 59½ without facing IRS penalties. However, you can withdraw from a Roth IRA or traditional IRA prior to that age. It is important to have money in both places if possible. Also, IRS Rule of 55 can be a helpful tool if you are 55 (or older) and want to begin taking distributions from your 401(k) before you normally would!
- Q: What happens if you stop working, do you still get interest? Do you need to continue to add? Yes, if you stop working and making contributions to your account, the money in your account will still gain/lose interest based on market fluctuations. Long term, it is likely your account would still gain value based on historical market trends.
- Q: If my company goes under, do I lose the company match? Employer matching contributions are subject to the vesting schedule of the plan (this varies by plan). If you have been at your company long enough to be fully vested, the money is yours even if the company goes out of business. However, if you are not fully vested yet, you may lose all or a portion of the company’s match, depending on your vesting schedule. If you find yourself opening the door to a new career, learn what to do with your 401(k) when you change employers.
- Q: Can you invest in a Money Market account with a bank while I am still employed or do I have to stick to this platform? Yes, you can utilize both your 401(k) account and a money market account at the same time.
- Q: Could you touch briefly on the subject “market crash”? Can one lose all 401K funds? Technically, it is possible to lose all your funds during a market crash, however, it is unlikely. Market fluctuations are normal, and it is common for the market to lose value before it gains. It is important to stay patient and invested long-term. Historical trends point to the market increasing over the long-term.
- Q: Realistically what is the recommended amount to have in your 401k? It used to be 1 million. The more the better. Start early and take advantage of any match. Remember, don’t withdraw if you don’t have to.
- Q: What do you recommend for someone just starting out, percentage-wise when investing in both Pre-Tax and Roth? The short answer is the more you can invest early on, the better off you’ll be when you reach retirement thanks to the benefits of compound interest. However, it is not always reasonable for people to max out their 401(k) early on. We would suggest making a budget that allows you pay all of your living expenses and set aside money for an emergency savings fund in case you need money for home/car repairs or other unexpected expenses. Whatever money you have left over, should be the percentage you invest in your 401(k).
- Q: Can we contribute to employer 401K and separately in Roth IRA? Is there any income limitations? Yes, you can contribute to both a Traditionally 401(k) and Roth IRA at the same time. There are contribution limits to your 401(k) and Roth IRA. Roth IRA limits are influenced by your income while 401(k) limits are not. Please refer to the IRS page here for their stipulations for each type of account.
- Q: We had Slavic401k before and then my company shifted plans, and it automatically put me into the digital Bespoke plan. I’d like to change the allocations. What is the best way to handle? You can change your allocations and contribution amounts using our website. Go to Slavic401k.com and log-in using your credentials or set up online access if you have not already done so.
For more in-depth information on the topics above, as well as real-life examples, watch the webinar recording above.
