Setting up your workplace retirement account is one of the most essential steps to secure your future financial stability—but retirement plans can be confusing! That’s why SMARTMap is here to help.
SMARTMap is a benefit provided by your employer to help you get the most out of your retirement plan. Our Financial Advocates are here to assist you with each step of the process, from enrolling in the plan to selecting investments and beyond.
Here are four important questions you can ask our SMARTMap team to get a better handle on your employer’s retirement plan.
Am I enrolled in the plan?
Although some plans feature automatic enrollment, others require you to take action to participate. The first question you need to ask is whether you’re enrolled!
If you were automatically signed up, ensure your contribution rate makes sense based on your age and financial goals. Some plans automatically start with a 1% contribution, but many financial experts recommend saving 10-15% of your salary for retirement.1
How much should I contribute to my retirement plan?
The amount you contribute depends on various factors: your age, your goals, how long until you retire, and so on. The IRS limit for 2024 contributions is $23,000 (or $30,500 if you’re over 50).
Ideally, you’ll contribute 10-15% of your paycheck. However, a reasonable minimum is contributing enough to get your employer match if you have one available in your plan. Then, challenge yourself to increase the amount each time you get a raise!
If your employer offers a matching contribution as part of your plan, our team can help you determine the requirements and if there are any vesting rules.
Do my investments match my financial goals?
Our SMARTMap team can help you create a personalized investment portfolio based on your time horizon, risk tolerance, and investment costs for your retirement account.
One approach might be to choose a target-date fund, a professionally managed fund that adjusts your investment allocations based on a specific date (in this case, the year you plan to retire). Target-date funds are a great option if you prefer a hands-off approach to investing.
You can also build your own portfolio with the funds available in your retirement plan. Feel free to schedule a call with one of our FINRA-registered Financial Advocates here if you would like assistance choosing your investments in the plan.
Is my beneficiary information up-to-date?
Your beneficiary is the person (or people) who will inherit your assets. Setting your beneficiary information is a simple process; you can usually add and update these details in your account anytime.
Don’t put off this important step! If you don’t have a designated beneficiary for your retirement account in the event of your death, you may not have control over who inherits it.
Choosing your beneficiary (or beneficiaries) only takes a few minutes and can help ensure your assets are passed on according to your wishes.
Taking the next steps
Feel free to schedule a call with our team here if you have any of the questions above, or check out more answers to frequently asked retirement questions here.
1) Curry, Benjamin. “Retirement Savings Calculator: How Much Money Will You Have for Retirement?” Forbes, Forbes Magazine, 30 June 2023, www.forbes.com/advisor/retirement/retirement-calculator/.
Prepared by a third-party.