Often times when employees are hired by their employer they are given investment and retirement decisions to make amidst their onboarding process. These investment and retirement decisions could include contribution amounts, investment mix, and tax qualifications of their retirement investments. For even a savy investor, this could be a time consuming decision. For individuals who do not feel confident making such decisions, they may make a quick decision and not look at the results for many years. Because of this, usually employers offer a “default” option that should apply to most of all their employees. Problem solved right? Not so quick…
There are many factors that contribute to a successful retirement and financial plan. Age, desired retirement date, desired retirement income, desired risk tolerance, desired projects in retirement, future tax rates, current tax rates, and other factors are all to be considered when making investment decisions for retirement. It is very improbable that the default option your employer offers is in line with all of the above in your situation is very low. This is why some time and attention is warranted to these decisions. Part of working with an advisor entails rethinking the decisions employees have made at the beginning of their employment and if necessary changing what needs to be (and can be) changed. This could align your retirement investments with your particular risk tolerance, goals, and retirement aspirations. If you or a colleague want to reevaluate the retirement plan you have, reach out to University Wealth Advisors at the contact information below. We look forward to helping you create wealth!