Do you have a full time job? Are you working more than 30 hours per week? Then you most likely have a 401k plan through your employer. Listen to Troy Sharpe, CFP®, walk you through what a 401k plan is and what you need to know about it to help you prepare for retirement.

Troy Sharpe is the president of Oak Harvest Financial Group, a local family-owned financial services firm. Troy leads a team of experienced professionals, analysts, and support staff to help clients create customized financial strategies that align with their unique retirement goals.

Troy holds a Series 65 license as well as a Texas life insurance license. He also earned a finance degree from Florida State University and completed his Certified Financial Planning certification at the Susanne M. Glasscock School of Continuing Studies at Rice University. Additionally, Troy is a Registered Financial Consultant with the International Association of Registered Financial Consultants.

You can hear Troy at 12 p.m. Sundays on KTRH 740AM when he hosts “The Retirement Income Show.”

Do you have a retirement plan that goes beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at (877) 404-0177

If you have $500K or more and would like a partnership with a firm to help you manage your investments and financial plan as in these videos, click on this link to connect with our advisors:

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401K for Dummies: A Beginners Guide to 401K Plans

If you are new to the workforce or have recently started a new job, you may have heard about a 401k plan. A 401k plan is a retirement savings account offered by many employers. It is a valuable tool that can help you save for your retirement and secure your financial future. In this article, we will provide a beginner’s guide to 401K plans, explaining what they are, how they work, and why you should consider participating in one.

What is a 401k plan?

A 401k plan is a retirement savings plan sponsored by an employer. It allows employees to save and invest a portion of their paycheck before taxes are deducted. The money invested in a 401k plan can then be used to grow over time, providing a source of income during retirement.

How Does a 401k plan Work?

When you enroll in a 401k plan, you choose a percentage of your salary to contribute to the plan. This money is deducted from your paycheck before taxes are taken out, which means you can lower your taxable income. The contributions are then invested in a variety of options, such as stocks, bonds, and mutual funds, chosen by the plan administrator.

Over time, your contributions and any accumulated earnings grow tax-deferred, meaning you won’t pay taxes on the money until you withdraw it during retirement. This can help your investments grow faster and maximize your savings.

Why Should You Participate in a 401k plan?

Participating in a 401k plan is an important step in securing your financial future. Here are a few reasons why you should consider enrolling in a 401k plan:

– Employer Matching: Many employers offer a matching contribution to your 401k plan. This means they will match a portion of your contributions, effectively giving you free money to grow your retirement savings.

– Tax Advantages: Contributions to a 401k plan are made with pre-tax dollars, reducing your taxable income. This can lower your tax bill and help you save more for retirement.

– Long-term Savings: A 401k plan is a long-term savings vehicle that can help you build a nest egg for retirement. By starting early and consistently contributing to your plan, you can take advantage of the power of compounding and maximize your savings potential.

How to Get Started with a 401k plan

If your employer offers a 401k plan, you can typically enroll during your onboarding process or through your HR department. You will need to decide on a contribution amount and choose your investment options. It’s important to review and understand the plan’s investment options, fees, and any employer matching contributions.

In conclusion, a 401k plan is a valuable tool for saving for retirement, and it’s never too early to start planning for your future. By participating in a 401k plan, you can take advantage of tax benefits, employer matching contributions, and the potential for long-term growth. If you are new to the workforce, now is the time to start saving for retirement and take control of your financial future.