National 401(k) Day began in 1996 by the Profit Sharing/401(k) Council of America (PSCA), known today as the Plan Sponsor Council of America. The Friday following Labor Day (Monday) was chosen so employees can “start the week with Labor Day and end the week with Retirement.”
We think that this is a day worth celebrating! If you are unsure of how to celebrate this day, we have got you covered. Below are a few ideas to help you celebrate the day:
- Increase your contribution
- There is no right or wrong time to increase your 401(k) contribution. No increase is too small; even a 1% increase could help you to work towards your goal of achieving financial independence.
- Ensure you have a beneficiary on your account(s) and that they are updated.
- Beneficiaries should be updated as life events occur. If you recently got married or had a child, you want your beneficiaries to reflect these changes. Equally as important is if you are going through a divorce, you will want to make sure that your 401(k) reflects that. Your 401(k) reflects your work and savings, and it should go to those that mean the most to you.
- Create a plan for any dollars you may have from a previous employer.
- If you have changed or are changing employers, it is essential to know where your dollars are and where they are going. Ensuring that you are enrolled in your new employer’s 401(k) is important, but keeping track of the money you have saved from your previous employer is equally important.
- Confirm your investments are still in alignment with your risk tolerance and your age.
- Depending on when you started work with your employer, your risk tolerance could have changed. Your tolerance in your 20’s could be different than your tolerance in your 30’s. It is important to know where your tolerance is and make sure that it aligns with your current goals.
If you have any questions on how to celebrate this day – please contact us today. We know that you worked hard for your 401(k), and we believe it is worth celebrating!
Meet the author:
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.