In this month’s Educating Edison video, Casey Bartels, CFP® discusses ideas for your 401(k). If improving your retirement investment plan is part of your New Year resolutions, this video explores three concepts worth considering.

Educating Edison is our monthly video series aimed at helping Southern California Edison employees better navigate their financial lives.

If you have questions, please contact Casey at Cbartels@guardianfinancialpartners.com…(read more)

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Educating Edison: Ideas for Your 401(k)

When it comes to saving for retirement, the 401(k) plan is one of the most popular options available to employees. Named after a section of the Internal Revenue Code, the 401(k) plan allows workers to save and invest a portion of their paycheck before taxes are taken out.

While the concept of the 401(k) plan is widely understood, many individuals may not be taking full advantage of the potential benefits it offers. This is where “Educating Edison” comes into play. Coined after the renowned inventor Thomas Edison, who once said, “Opportunity is missed by most people because it is dressed in overalls and looks like work,” the term “Educating Edison” emphasizes the importance of educating oneself about the intricacies of 401(k) plans to maximize their potential.

Here are some key ideas for making the most of your 401(k) plan:

1. Start Early: Time is your best friend when it comes to saving for retirement. The earlier you start contributing to your 401(k), the more time your money has to grow through compounding interest.

2. Take Advantage of Employer Matching: Many companies offer to match a percentage of their employees’ contributions to their 401(k) plans. This is essentially free money that can significantly boost your retirement savings.

3. Diversify Your Investments: Instead of putting all your eggs in one basket, consider diversifying your 401(k) investments. This can help reduce risk and potentially increase returns over time.

4. Review and Adjust Regularly: It’s important to regularly review and adjust your 401(k) investments as your financial goals and risk tolerance changes. This may involve rebalancing your portfolio or making other adjustments to ensure it aligns with your long-term objectives.

5. Understand Fees: 401(k) plans often come with administrative and investment fees, which can eat into your returns over time. It’s crucial to understand these fees and seek lower-cost investment options whenever possible.

6. Seek Professional Advice: If you’re unsure about how to best manage your 401(k) plan, consider seeking advice from a financial advisor. They can help you create a personalized investment strategy tailored to your individual needs and goals.

By proactively educating yourself and implementing these ideas for your 401(k) plan, you can take a proactive step towards securing your financial future. Remember, the decisions you make today can have a significant impact on your retirement lifestyle tomorrow. Don’t miss out on the opportunity to make the most of your 401(k) – start “Educating Edison” about your retirement savings today!