CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Nate Obringer, CFP®, RICP®
Financial Planner
Prudential Advisors
9800B McKnight Road, Suite 223
Pittsburgh, PA 15237
Phone: 412-318-4129
Fax: 877-840-2322
Email: nate.obringer@prudential.com
July/August 2018
Beyond Plan Defaults
If you have a 401(k) plan at work, you have a powerful vehicle through which you can save for retirement. Today, more employers are offering automatic tools to help participants put money away into their 401(k)s. While these work for many employees, they may not be right for you. Here’s a look at some of these auto tools and ways you might improve on them.
Auto Enrollment
The idea behind this innovation is that employees fail to contribute to a retirement plan because of inertia, so they are automatically enrolled in the plan when joining the company (with the choice to opt out). Contributing toward your retirement is good, so there’s little to improve on here. You might, however, compare it to a Roth 401(k) plan if you have that option.Auto Contributions
With this option, employers choose the percentage of employees’ salary to initially contribute to a plan. This is often a low number: With many plans, 3% is the default rate. Anything, of course, is better than nothing. But you will typically have the option to raise or lower your contribution on your own. Consider raising it, especially if you’re not putting away enough to match a potential employer contribution match.Auto Escalators
Automatic contribution escalators raise the percentage of salary contributed to a 401(k) plan overtime. This is an attractive way to bump up your retirement savings efforts as you receive promotions and pay increases. You might even decide to raise it more on your own, perhaps up to the maximum allowed by the plan.
Auto Accounts
The default account of the majority of plan sponsors is a target date fund — a diversified fund that includes stocks, bonds and cash. Typically, this is a somewhat conservative way to invest according to your retirement timeframe. However, you may want to choose your own investments if you have a more conservative or aggressive approach to investing.Talk to your financial professional to learn how investing in a 401(k) plan or IRA can help you prepare financially for retirement.
0314589-00001-00
Nate Obringer is a Financial Planner with, and offers securities and investment advisory services through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
"Prudential Advisors" is a brand name for the proprietary retail sales channel of The Prudential Insurance Company of America ("PICA") and its insurance company and other affiliates (collectively "Prudential"). Prudential Advisors financial professionals are licensed insurance agents of Prudential.
Pursuant to a strategic relationship among Prudential, LPLE, and LPL Financial, Prudential Advisors financial professionals provide securities brokerage services and/or investment advice on securities solely as registered persons of LPLE, an affiliate of LPL Financial. These financial professionals are permitted to brand under "Prudential Advisors". LPLE and LPL Financial are not affiliated with Prudential.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Prudential Advisors and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.