401K Do I have Say?

Do you have a 401k? Do you know what it is? Do you know what it’s for? Do you know what’s in it? Now I know I asked a ton of questions and it seems odd to start a conversation with so many questions. Hey it’s my blog but more importantly it’s your 401K, so let’s forget about being politically correct. You would be amazed at the hundreds of people I have spoken to that have 401K’s but don’t have a clue what they are.

I often hear people say “my employer offers it and I put money in it, and that’s all I can tell you”. When I hear those words I think of a doctor’s visit where the patient comes home and says the doctor gave me this medicine, I don’t know what it is but I am taking one a day for the next 30 days, and I should feel better. Why do we do it America? Do what you may ask? Leave our health and wealth into other people’s hands, and get mad when they both fail?

Let’s start with what a 401K is it’s a qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Alright let me break it down in laymen terms. A 401K is a tax sheltered(benefit) vehicle that allows you to save your hard earned money for retirement with contributions by your employer to help you along the way. Basically it’s the Car (shelter) what you put inside of it (investments) determines how fast the car goes. Many know the dollar amount in their 401K but they don’t know the investments inside of it, and that is why so many cars (401K’s) are crashing and at retirement the retiree is in shambles.
I am all about education and helping you help yourself become financially independent so keep reading.

Quick testimony my husband had invested in a 401K with one of his employers. My husband had only been employed for about 2 years, and my husband had more money in his 401K than one of our family members who had been invested the entire 9 years they had been on their job, and contributing the same amount my husband was contributing. You may ask Ebony how could this be, simple he was married to me, LOL! Okay the part about him being married to me was a joke but really it’s true. I chose the investments that went into my husband’s 401k, not the employer or a cookie cutter retirement horizon they offered.

I could go on and on but I know long blogs don’t get read to the end. Do us a favor call your Employer Sponsored plan (company that handles your 401K) ask them questions like what’s in your 401K, ask them to explain to you how it works? If you’re still confused, or really want to know how to take control of your retirement and not let it control you meaning what you do at retirement, how you eat at retirement. Give me a call to attend my next free 401K workshop. 401K yes you do have a say! I’m passionate about what I do and I love educating. Thank you for Stopping by!