By: John Glover (MBA)
Searching for a job is like hunting for prey in the wild. You have to be aggressive, but not too aggressive and scare off potential managers. You have to be patient and hit the target at the right time. You have to wait for a callback, or maybe you need a job ASAP, but it doesn’t have everything you are looking for. It might feel like the entire job search is out of your control. The current job market is scary, but you are in charge of your future.
Everybody’s experience with finding a job is different. There are many things to consider when taking your next role: salary, vacation, and benefits. Perhaps one of the most important things to note is the company’s 401k plan. It’s never too early to prepare for your future, and your next job can help set you on the right path for saving. It’s survival of the fittest out there, but having a solid retirement plan can help you be prepared for the next stage of your life.
Finding a 401k plan that works for you can help bring you to the top of the food chain regarding your savings. Without a solid plan, you risk not saving as much as possible, making it harder to retire in the long run. Retirement allows you to do what you love with the people you love, so it’s a good idea to research a plan to help you get there. Eligibility and 401k matching are some of the top things to consider as you enter the job market.
Before accepting a new job, make sure to ask all the critical questions about the company’s 401k plan. When can you enroll? Are you eligible from the beginning? It can be nerve-wracking to ask these questions, but if you don’t, you may be putting your savings at risk. You might think you are earning money towards your 401k right away when you could have to work for a certain period before that begins. That can set you back when you didn’t even know it.
A lot of companies will also provide a 401k percent match. This is akin to free money the company is giving you as a part of your benefits, so make sure you understand how much you are getting. 401k matching varies from employer to employer. Maybe you have multiple job offers and are deciding which one is right for you. The deciding factor could be how much a company will pay to your retirement fund.
“Understanding your 401k plan is crucial when evaluating a new job to maximize retirement savings. If you are early in your savings journey, focus on employer matching, as it provides free money for your retirement savings. Pay attention to eligibility requirements and vesting schedules, as some plans require you to stay with the employer for a specified period before these benefits fully accrue. Additionally, the Roth 401k option offers tax-free savings benefits and is especially valuable for high-income earners,” says Michael A Scarpati, CEO of RetireUS.
The key to picking the right job is to ask the right questions and understand your savings. As you get closer to that retirement age, there are other things to consider. If your job does not provide what you need for retirement, consider Roth IRA as a viable way to save. You can put money into this account, and it’s already tax-free by the time you use it. This gives you more power over your future and can help you reach your goals, no matter what the job market throws your way. You must proactively plan for your future, consider starting with picking the right 401k plan. You don’t have to settle for less when more is out there.
Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.
Published by: Nelly Chavez
