Home > 401k...time to make some changes

401k...time to make some changes

February 22nd, 2013 at 02:33 am

One of my (long?) term BHAG actually... is to retire at 60, if not sooner.

I currently contribute 8% to my 401k, which is the max that my job matches. (I love that they contribute this much, so nice!) I plan to raise my contribution amount once debt is paid off...In the meantime, I am embarrassed to admit that I set my investment options up years ago and have never changed them. This is primarily because I dont understand them. However, our job allows each employee a few hours a year to talk to an investment counselor for this very purpose. I have just never taken advantage of it.

So today, I emailed my investment profile to the counselor and set up an appointment for next month to get a solid plan in place. He briefly looked over my current investments and let me know that they need updating... since they currently conflict with each other. At least he didnt laugh. Smile

He asked a few questions and pointed out that with the hubs pension (he is fully vested from the union job he left to go to the slope), what I currently have invested plus an additional 8 years of 15-20 years left for the hub to work and invest (the hub is 7 years younger than me), we are in a good position to meet our goals. (yay!)

So, debts are being paid and I am getting the financial house in order to achieve the retirement goal. 8 years feels like a long time, but I know it will go quicker than I expect...and I very much want to be prepared.

Feels good to face the financial details head on and learn that it very well could work as planned. Smile

BHAG = Big hairy a$$ goal...Big Grin

5 Responses to “401k...time to make some changes”

  1. mjrube94 Says:

    First, thanks for telling us what BHAG means. I love it! Second, I didn't know you were a cougar Wink.

    8% match is fantastic! I work for the government and I thought my 7% match was pretty sweet. We can use a company called Ayco to give us free financial planning advice. I haven't taken advantage of that for many've just given me the inspiration to give them a call!

    One other thing to check with your 401(k): Beneficiaries. I set mine up when I first started working, pre-marriage. Hubby did the same. Our beneficiaries are listed as our parents, 3 of 4 of whom are deceased. Always pays to check! Oops!

    Thanks for another great post!

  2. Looking Forward Says:

    BHAG! HaHa! Big Grin 8% match = Wow! But I am easily impressed as I don't get any type of retirement from work.. Frown

  3. Thrifty Ray Says:

    mjrube...the hub actually FIBBED about HIS age when I met him...whats the opposite of cougar...cause that is him!! lol And YES, beneficiary updates are sooo important..working in the financial industry, I have heard MANY sad stories about those who didnt get around to it in time...should be something everyone does once a year. Thank YOU for the reminder.

    LF - it is getting harder to find jobs that offer retirement plans..Frown
    Thanks ladies!

  4. snafu Says:

    Good on you! I'm delighted you stepped up, filled in an investment profile and made an appoint to review your retirement plan
    holdings. You really need to know what you have as investments and why. You need to know the allocation...what percentage is in equities [stock] and what is in income producing instruments and breakdown between corporate and government.

    This is also the right time to create and monitor a statement of your Net Worth. I was at a financial seminar yesterday and they asked how many participants have a Will, Health Care Directive and Enduring Power of Attorney to permit the designate to carry out your plan. Their opening segment gently chided all who had not yet realized the importance of those 3 documents. The on-line forms are adequate and if you're uncomfortable, perhaps an in-house lawyer or bank's Notary would be willing to review and witness.

    Before you finalize changes to your retirement holdings you might find it beneficial to run it past the smart folks on the Forum part of Saving Advice site.

  5. Thrifty Ray Says:

    great advice snafu! Thank you! I am hoping my brain will wrap around investment information when I have my appointment..if not, SA is a good place to ask for help! Thanks!

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