Facts You Need to Know About Your Retirement Plan
This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend Reading
Your retirement plan is one of the most powerful financial tools you have, but to make the most of it, you need to understand how it works.
READ THE ARTICLEHere are five key facts every retiree should know:
📌 Every Dollar You Save is Worth More: Contributing to your retirement plan lowers your taxable income, meaning each dollar you invest could be worth far more in the long run. If you’re in a high tax bracket, your contributions stretch even further.
📌 Employer Matching is Free Money: If your employer offers a 401(k) match and you’re not contributing enough to get it, you’re leaving money on the table
📌 Avoid Overloading on Company Stock: Even if you believe in your company, putting too much of your retirement savings into one stock is risky. Diversify to protect your portfolio from unexpected downturns.
📌 Diversification is Essential: Your allocation should align with your risk tolerance, time horizon, and overall financial picture, not just what’s available in your retirement plan
📌 Don’t Borrow from Your Future: Taking a loan from your retirement plan can seriously derail your savings. You not only have to pay it back with interest, but you also lose out on potential investment growth.
Bottom Line: If you prioritize making informed financial decisions and follow a comprehensive retirement framework, you can maximize your wealth and help ensure financial security for the years ahead.