Concerns are rising around the globe as the delta variant of the coronavirus takes hold. Some countries are considering re-imposing restrictions as cases rise.
Could the delta variant pose a challenge to the U.S. economic recovery? We talked to Mike Reeves with Strategic Wealth Designers about the markets and what delta could mean from an economic standpoint.
Investing in a 401(k) is a widely popular way to plan for retirement that is often offered through a traditional or Roth 401(k) by your employer. Fiduciary retirement planning advisor Mike Reeves of Strategic Wealth Designers joined us on the newscast to dive into these retirement savings plans and how to maximize earnings.
“Taking full advantage of your employer’s match gives you the opportunity to double your money for free,” Reeves says. “A common misconception is that to be better prepared for the future, the more you contribute to your 401(k), the better. It is very important to note that overfunding a traditional 401(k) may cause tax liability later in life and is not the most efficient way to grow your money.”
Mutual Fund offerings are provided in your 401(k), allowing individuals to know where their money is being invested within the savings plan. The investment options are often limited and may be associated with high expense ratios. This consists of a variety of fees that can impact the growth of your nest egg. A good reference point is to keep the percentage of fees under one percent.
“It is easy to look at the short-term and select the traditional 401(k) as your retirement saving option due to the tax break granted upfront,” Reeves says. “However, many people do not realize that more often than not, they could be in the same tax bracket if not higher, upon retirement. In considering the options to get the best return your long-term investment, look at your after-tax, retirement savings option, the Roth 401(k).”
A traditional 401(k) and Roth 401(k) are two differently taxed retirement savings accounts that are suited to your specific retirement. To see additional stories surrounding business and economic news for the Indianapolis area, visit https://CBS4Indy.com/Strategic-Wealth and if you have a question for Mike send an email to email@example.com.