New Job? Here’s What You Can Do With Your Old 401(k)

Welcome back, savvy savers!

It’s Emma, again (who’s still trying this whole saving thing)! Today we’re navigating a topic many of us will face at some point in our careers: when switching jobs, what do I do about my 401(k)? It’s an exciting (but definitely nerve-wracking) phase. Between the inevitable LinkedIn update and making the oh-so important decision that is your first-day outfit, it’s nice to know at least one major decision is in good hands. Saveday helped guide me through my options, so I’m here to pay it forward! 

A Glimpse at Your 401(k) Choices

1. Let It Be:

What it entails: Letting your cash stay put in your prior employer’s 401(k) setup. It’s the path of least resistance for many.

Upsides: The comfort of known investment avenues.

Downsides: Risk of a fragmented retirement plan over time, the potential lure of better options elsewhere, and the need to juggle plan particulars. The provider may have time limits on holding accounts for inactive employees, meaning the money could be returned to you in the form of a check if you don’t take action on it before the deadline. Then you’ll need to move the money into a new retirement account or face the possibility of penalty taxes.

2. Roll It Over:

What it entails: Funneling your former 401(k) assets into your new employer’s plan.

Upsides: Streamlined retirement funds, possibly superior investments or fewer fees.

Downsides: Potential rollover restrictions or hoops and the hustle of paperwork.

3. Cash Out:

What it entails: Withdrawing your 401(k) dollars, right here, right now.

Upsides: Immediate funds for emergencies or pivotal expenditures.

Downsides: Penalties for those below 59 ½, taxable withdrawals, and truncating your retirement growth.

4. Shift to an IRA:

What it entails: Redirecting your old 401(k) into an Individual Retirement Account.

Upsides: Augmented investment horizons, coalesced accounts, and tax-free direct rollovers.

Downsides: Greater autonomy may need more of your time, and watch out for provider fees.

Your Savvy Saver Checklist

Fees: Every 401(k) comes with a price tag. Always evaluate your option’s economic viability. Here’s where saveday’s candidness on pricing stands out.

Investment avenues: Ensure your pick resonates with your investment philosophy and risk appetite. Dive into saveday’s swift quiz to decode yours.

Taxes: Everyone’s (least) favorite subject! The timing of your 401(k) moves can influence your tax savings. Saveday has great guides for optimizing this.

In essence, those are your moves. Remember, every twist and turn on the savings route is a learning curve. With the right insights and tools, you’re not just saving; you’re building the future you deserve. 

The Saveday Edge

Job transitions are a whirlwind, even without the added 401(k) puzzle. That’s where saveday came in handy for me. Their user-centric dashboard coupled with a goldmine of informative assets demystifies the decision labyrinth. Rolling over? Consolidating? Or keen to up your knowledge quotient? Saveday’s got your six. Check out their blog to learn more.

Best of luck,

-Emma

Tackling the Hidden Villains: Understanding 401(k) Fees

Welcome back, savvy savers!

Emma here, your young adult saving guide to all things 401(k). Today we’re taking on the sneaky realm of 401(k) fees. That’s right. It’s not just those unexpected concert ticket fees that can surprise you anymore.

We all dream of stashing away more money for a fun-filled, carefree retirement. And 401(k)s? They’re the chariots that drive us to that dream. But lurking in the shadows, there are villains known as fees, threatening to derail your journey. These seemingly small fees can, over time, devour a surprising slice of your precious savings.

Unmasking the Fee Percentages

At a glance, 401(k) fees might appear trivial. A tiny 1% here, a little 0.5% there. But let’s crunch some numbers: with a balance of $100,000 in your 401(k), a 1% annual fee snatches away $1,000 each year. Stretch that over years, and coupled with compound interest, you’re losing out on a significant sum.

Saveday to the Rescue

This is where saveday swoops in like a superhero. With its crystal-clear dashboard and transparent fee structures, understanding and minimizing your fees is a breeze. Our primary mission? Ensuring you get optimum value for every penny you invest.

Simple Steps to Save on Fees

  1. Review Regularly: A quick monthly glance at your statement can save you loads in the long run.
  2. Switch to Low-Fee Funds: Check out the range of low-fee fund options available with saveday to maximize your savings.

So, as we close the chapter on our 401(k) fee adventure, here’s the moral of the story: arm yourself with knowledge. By understanding these fees, you’re in the driver’s seat, ensuring more money remains where it should – with you!

Want more finance hacks? Dive deep into saveday’s treasure chest of resources. And always remember, every penny saved today is a step closer to your dreamy, beachside retirement. 

Keep saving!

-Emma

P.S. Gear up for my next post where we dive into the world of tax savings with retirement contributions. Trust me, you won’t want to miss this!

Navigating Retirement Planning as a Small Business Owner

As a small business owner, you juggle numerous responsibilities, from managing operations to nurturing growth. In the midst of it all, it’s crucial not to overlook employee benefits. That’s why we specialize in 401(k)s for small business. This blog post will guide you through the key considerations of retirement planning as a small business owner and introduce you to saveday, a trusted partner in offering 401(k) solutions. Get ready to sail on a smooth and secure journey to your small business’s success.  

Understanding the Unique Challenges of a Small Business:

Retirement planning as a small business owner comes with its own set of challenges. You may not have the luxury of a large HR department or access to the same resources as larger corporations. However, by recognizing these challenges, you can proactively navigate the path to retirement success. 

  1. Establishing a Retirement Savings Plan: 

One of the first considerations is selecting the right retirement savings plan for your small business. Saveday offers an array of solutions designed specifically for small businesses. These options provide flexibility and tax advantages, allowing you to save money while maximizing benefits for yourself and your employees. 

  1. Meeting Regulatory Requirements: 

Navigating the complex landscape of retirement plan regulations can be overwhelming. Saveday simplifies this process by providing expert guidance and ensuring your plan remains compliant with the latest regulations. With saveday, you can rest easy knowing that your retirement plan is in good hands, allowing you to focus on what you do best – growing your business. 

  1. Balancing Cost and Value: 

As a small business owner, every dollar counts. Saveday understands the importance of cost-effectiveness without compromising on quality. We offer some of the lowest and most transparent pricing in the industry, ensuring that your retirement plan remains affordable while delivering exceptional value and benefits to you and your employees.

  1. Engaging and Educating Employees: 

Engaging and educating your employees about the importance of retirement planning is vital. Saveday provides comprehensive educational resources, empowering your employees to make informed decisions about their financial futures. By fostering a culture of retirement readiness, you can strengthen employee loyalty and attract top talent to your small business.  

Solutions for Small Businesses:

Saveday is your partner in navigating the complexities of retirement planning as a small business owner. Our tailored solutions address your unique needs and provide the following benefits: 

  1. No-hassle Plan Set-up and Administration:

Easy payroll integration and simple plan offerings make set-up and roll-out a breeze. No administrative headaches or multi-vendor back-and-forth. You’re just fifteen minutes away from offering a simple, affordable 401(k) plan!

  1. Zero Employer-Cost: 

Saveday’s transparent, all-in pricing model is always $0 for employers. There’s no cost for plan set-up, and no hidden fees. Our low participant cost keeps your employees’ contributions where they belong: growing in their portfolio!

  1. Opt-out Participant Models: 

Auto-enrollment drastically increases employee engagement rates, ensuring employees get the most out of their retirement benefits. Saveday has a wide variety of employee engagement tools including educational resources, retirement calculators, and personalized dashboards. Empower your employees to take control of their financial futures, fostering a sense of ownership and financial well-being. 

As a small business owner, retirement planning should be a top priority. By understanding the unique challenges and leveraging the tailored solutions offered by saveday, you can embark on a successful retirement journey. 

Saveday is your trusted partner in navigating 401(k)s for small business. 

Secure your business’s future today and enjoy the rewards of a well-prepared retirement. Claim your financial freedom and set up your business’s 401(k) now.