Your To-Do List Before Participating In A 401(k) Plan

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

When seeking employment opportunities, one of the first (and considerably most important in our eyes) questions candidates ask is whether or not a 401(k) plan is offered. Since the purpose of a 401(k) is to help individuals save and prepare for retirement, it is crucial for employees to take advantage of such plans the moment they become available to them.

However, entering into a company sponsored 401(k) plan is more than just saying "sign me up;" a lot of thought and decision making goes into the process! If the opportunity to participate in a 401(k) plan is in your future, here are a few things you must find out and consider first:

Company Contributions: One of the greatest benefits of some 401(k) plans is that companies match the contributions their employees make in one way or another. Since matching rates will likely differ from company to company, the first step you should take is to figure out how much you have to contribute to get the most in return from your employer!

Plan Management: Many 401(k) plans come with fees attached for the management of the plan. When deciding how much you plan to contribute, keep in mind that some of your savings will be deducted for reasons such as investment management and general bookkeeping by your plan sponsor. Though they may be minimal, they are certainly something to consider since they directly influence your account.

Investment Opportunities: Chances are your 401(k) plan will have a variety of investment options available for you to split your money between. Rather than make a snap decision about where your contributions will go, do some research to learn more about what each investment means and how they match with your personal financial goals.

Considering that 401(k) plans play a critical role in saving for retirement, it's important to fully understand all of the aspects of your plan. But since financial topics like 401(k) plans can be confusing, we at American Investment Planners LLC have a team of retirement planning experts ready to educate you so can fully understand your 401(k).

Here at American Investment Planners LLC, we also offer tax planning, estate planning, retirement planning and more to generations of families throughout the United States. For more information about our services, please visit www.americaninvestmentplanners.com.