Planning with Parker: Advantages of 401k (Financial Safari)
You may not be maximizing your 401k or fully understanding how it works. We got your back.
We're back on financial safari in consumer advocate Steve's at all, and this is planning with Parker. And this is Parker Parker, chief wealth strategist, Capital Financial. So, Parker, this is this time we're going to talk about the 41 K certainly is the retirement tool that most of us have access to when most of his U. S court and so what are some advantages to a 41 K? And then let's talk about some things that we should think about getting out of the forward. It's become the breadwinner for retirement Planning says pensions went away, and a lot of people I mean, we see a few of them, but I mean, pensions are dinosaurs, and now the savings is with the employees versus the employer, and that's where the 401 K came to be about. And there is a huge advantage. You can put money away tax deferred, write it off your income, and then also put money in tax after tax. It grows tax free because there are Roth 41 K options. It's a great tool to safe, but a big concern is a lot of people aren't maximizing. Therefore, one case as efficiently as they need to, or they're getting an employer match and not putting in enough to get the full match. That's free money left on the table. So just so you get the savings side of it, you get the tax. Write off for tax efficiency side of it, but you need to know if you're maximizing it or if it's enough because there are limitations of what you can put in. Let's talk about the Roth for a one care. You're seeing more of those available. Oh, the Roth option is what they're calling. It is what's coming into a lot of these 41 K plans, and a lot of them are doing it now. If an employer's matching, they're not gonna put it in a knot. They need that right off. Yeah, but the employee can, and that's the Roth works, just like a Roth IRA. But you can put more in, and it grows tax free. And with these 41 K plans, with a lot of investment strategies they're offering now. I mean, it could be a great tool to generate tax free retirement income. A lot of people forget when they're looking at the compound ing or the magic $1,000,000 in a retirement. If that's all tax deferred, that's not a $1,000,000 not even close. Uncle Sam hasn't even touched it. And then also, the growth and interest you've earned has yet to be taxed, Whereas a Roth, it's vice versa. You pay taxes on on it already. It's going in. There is growing tax free. And if it's doing that for 10 15 years, Uncle Sam can't touch that interests. And when it comes out, you're not having to worry about it affecting any other income source. Well, what if my company doesn't have a 401 K? What are some other alternatives that I can do? Toe save for retired? Well, there's always their traditional IRAs and Roth IRAs. If you're self employed Sepp Simple IRAs, there's dozens of options out there and just need to sit down and know exactly what they are. And there are ways to do what's called tax advantaged after tax or just tax free strategies. There's multiple ways that can work. There's multiple strategies to use, but there's a lot of moving parts for some of those nontraditional routes that need to be checked to see if it's the best option for that person. Let's talk about the 401 k again, and this was my experiences were in for a pretty big company. I go in and they say, Well, you've got a 401 k You're automatically enrolled. It's in a target date fund. See you later. Bye. I mean, that's it. That's that's the only in target date. Funds were a blessing and a curse at the same time. Okay, they are targeted dates, meaning that they change the aggression were lower the aggression, the closer it gets to that date. So if it's 2060 is targeting retirement. 2060 2020. Target retirement in 2020. But the problem is, it's not touching everything, and it too many people think it means that it's protected against volatility, or this or that. That is not all 100% true at all. And you need to know out of your options what are the best for you. Ah, so a lot of great information there from Parker Holland really, really sets the tone and lets us know what we need to do. Doesn't my dad used to have a term back in the day. Easy would call Parker a smart cookie. Ah, like orders. A millennial. But gosh, he's really on the ball. You're really new to. You guys are both on the ball. You guys were, you know, not the typical. And so if we have a staff, a lot of staff over millennial send you say all of our millennials are not the kind you picture about being lazy and apathetic and not being proactive. So it's very important, folks figured, being proactive, it's very important for you to be proactive on your plan. And we talked about the advantages and disadvantages there. 41 k We can educate you. We can even help you make your decisions on what you currently have. But more importantly, help you design that 41 K that was supposed to be designed for a lifetime income. I guarantee if you look at your 41 K statement right now, there's no column that says, Here's what you get every single month for the rest of your life, folks, we can help you with that. We can show you based on the battle is three or 41 k What you can really have from that, how you can really benefit. And that's the most important part is benefiting from all this money you put away. You know, it's no fun to put money away, but it's more fun to get income folks. And next 20 people call will do that. No cost, no obligation. You'll get their box set. You'll get that review session. You'll get your very own plan and you get this DVD. Absolutely. Folks, let's truly take the words off this disk and do it. Don't worry. Retire happy with coach feeding the team here. A capital financial. All you have to do is give us call 888910 80 to 65 888910 80 to 65 or, as always, you can. 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