Jun 28
New Job and Four Tips for Your New 401(k)
June 28, 2021
Saving for retirement is important for all ages, the key is to start early.
Land a great new job? Awesome. Now is the perfect time to think about your 401(k) and retirement plans, whether you had one before or not. Saving for retirement is important at all ages; do not let this opportunity fall to the bottom of your list.
Here are four tips to consider when starting a new job and a new 401(k).
- Make more contributions if you have a bigger paycheck. When you get a raise, it is a good idea to increase the amount you contribute to your 401(k). You did not have this money in your pocket; therefore you do not miss it when you put it straight into your 401(k).
- Do not pass up the new employer’s match.
- Name your beneficiaries for your new 401(k) plan. Keep your beneficiaries consistent across all retirement accounts and according to your estate plan. Be sure to update your new plan to reflect changes in your beneficiaries. Are you now a parent or do you have a new spouse? Updates allow your 401(k) account to pass directly to the person of your choice should you pass away.
- Above all, do not forget to enroll in your new plan. Many employers offer automatic enrollment in the company’s 401(k) plan. Find out whether this benefit is available at your new job. While this may seem obvious, it is easy to forget signing up for your new company’s 401(k) plan, because many employers require a short waiting period before new employees are eligible to join. If you have to wait, put a reminder in place – circle the enrollment date on your calendar and set an alarm on your smartphone. Just do not forget.