Ask Your Employer About Getting Started

Does your employer offer a retirement plan like a 401(k), 457 or 403(b)?

If the answer is yes and your employer matches a portion of contributions, you should consider taking advantage of it or you could be missing out on free money. Many employers will match contributions up to a certain limit, for example: 50 cents for every dollar you invest up to 6% or 7% of your salary. Keep in mind that the employer match may be subject to a vesting schedule. Withdrawals are taxed as ordinary income and if taken prior to age 59½ they may be subject to a 10% penalty. Investing is subject to market risk, including possible loss of principal.

Give yourself a raise

If you don’t contribute to your retirement plan, neither does your employer – and that portion of your potential benefit is lost. Not getting your company’s matching contribution is like volunteering to take a cut in benefits.

Start now

It’s never too early to plan for retirement. Contact your company’s human resources representative to see how you can get started.

Be sure you know the ins and outs of the plans available to you. Not sure what questions to ask? See our article on questions to ask about plan features.

Next steps

Talk with your investment professional to determine how much you should be contributing to retirement. Don't have one? Learn how to choose an investment professional and find out what they can do for you.