Company Switched Pension Plan To a 401k
My company recently switched from pension to 401k. what is the percent of my money should i put in there. I have heard that people should try and put at least 15 percent.
Your company has put you in the driver’s seat with your retirement. They have removed “their guarantee” of a base line income for your retirement and are letting you choose to save your own money for retirement. Investing is not so simple as putting your money into an account and watching it grow magically like 20 years ago. The stock market is in a bear market, and in bear markets they key is preservation of capital. I would first set up an emergency fund of 6 months of income before I began investing in a 401(k) plan. Next, pay off all those credit cards and other consumer loans. Then you can look at the investment choices the company will offer you. If you don’t do these things first, you may need the money and will have to take penalties for contributing to the 401(k) plan. So it is very important to have an emergency fund first before you begin any tax deferred plan.
God Bless
Doc
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The more you put in, the more your company will contribute.
1References :
Your company may match a maximum amount. Its usually a good idea to put up to the amount they will match. If its not a variable annuity or B shares or something else with high fees its a good idea to put in as much as you can.
2References :