401(k) Participants

This page was created to help plan participants make informed decisions about their company retirement plan and to address the most common 401(k) questions we receive. If you have a question that you do not see listed here please send us an email. 

"How much should I save?”  Obviously this is not a one answer fits all kind of question.  However, you can get a really good idea within 30 seconds by clicking on this Cost of Retirement Calculator.  We also encourage participants to not get discouraged if they are way off track.  If the calculator says you need to start saving a ridiculous amount of your annual salary (i.e. 45%) Just take Baby Steps and keep increasing the percentage you contribute 2% every 3-4 months.

What should I do if the Market is not doing well and my account value has gone down?  The markets will go up and down and unless something has changed in your circumstances we encourage you to stay the course.  The last thing you want to do is sell out, or change your investments, based on emotion.  We find it interesting that people wake up to go shopping at 4am the day after Thanksgiving because of the sales but when the Markets are on sale everyone runs for the door.  That is when the institutional investors come in and get the bargains from the small investors that let their emotions get the best of them.  When in doubt, seek professional guidance, and No your buddy at work doesn't count.  Our door is always open just call 407-349-9828. 

 “What if I need to withdrawal early?”  Not all plans allow for in service withdrawals and we would encourage you to double check that your situation warrants a early withdrawal.  Even if you can get at your retirement monies it will most definitely cost you and we would recommend you use the Retirement Plan Early Distribution calculator.  This simple form will tell you how much you really take home with an early distribution (after taxes and penalties).

What are “Target Date Funds” and who should I invest in them?   Target Date funds are Mutual funds that invest in a combination of other Mutual funds Based on your age and/or your target retirement year.  They are considered a one fund solution.  As your retirement date gets closer, the mutual funds within the Target Date Funds are automatically adjusted to be less volatile in preparation of your retirement.  As for who would want to buy a Target Date Fund I normally recommend them to participants that do not feel comfortable selecting and monitoring their own investments. 

What are the advantages of saving "Before tax"  or "Tax deferred" are those the same?  Yes these terms are the same and to answer your question the benefit is that money which, otherwise, would be going to current federal and possibly state income taxes is, instead, going to work for you in your retirement plan.  To see a good comparison of the impact of tax deferred savings vs. investing in a taxable account check out the Tax-Deferred Savings Calculator.