Nurse Your 401(k) to Health: A Retirement Game Plan for Busy Caregivers

"Preparation for old age should begin not later than one's teens. A life which is empty of purpose until 65 will not suddenly become filled on retirement." - Dwight L. Moody

As a nurse, you're dedicated to the well-being of others, but how well do you know your own rights when it comes to your 401(k) investments? Understanding your rights can help you make informed decisions and secure a comfortable retirement. Here, we'll break down the essentials, so you can take control of your 401(k) with confidence.

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First things first: information is power

You have the right to know about your 401(k) plan's investments, performance, fees, and strategies. Your plan administrator should provide you with an annual report, as well as quarterly statements. Make sure you know how to read them – it's crucial for your retirement future.

Remember, your 401(k) is your responsibility. Many people mistakenly believe their employers manage their 401(k) accounts. But it's up to you to make changes and keep track of your investments, especially when switching jobs.

You also have control over your investment choices.

You can decide how your contributions are invested among the options provided by your plan. Feel free to make changes as your risk tolerance or financial goals evolve. Just be mindful of any restrictions or fees associated with altering your investments.

Target Date Funds (TDFs) might seem like a convenient option, but they're not one-size-fits-all. While they adjust allocations based on your expected retirement date, they don't consider factors like profession, salary, or market trends. This can lead to underperformance or poor risk management.

With the recent Secure Act 2.0, employers can now match the Roth option in 401(k)s, but this is optional. Keep in mind that company match dollars may not be yours to keep until you're fully vested. Each employer has different vesting requirements, so familiarize yourself with your plan's specifics.

New Limits, Protections, and RMD Changes

In 2023, you can contribute up to $22,500 to your 401(k) or $30,000 if you're over 50. Your 401(k) is usually protected from bankruptcy, but there are some exceptions. If you face financial hardship, you can borrow from or withdraw from your 401(k), but both options come with consequences.

As you approach retirement, be aware of the changes to required minimum distributions (RMDs) introduced by the Secure Act 2.0. RMDs now begin at age 73, with penalties for not taking RMDs on time being reduced.

Lastly, professional help is crucial. Studies have shown that investors who receive professional help enjoy higher returns than those who manage their 401(k)s alone. Armed with this knowledge, you can make the most of your 401(k) and plan for a well-deserved, relaxing retirement.

Are you ready to take control of your financial future and unlock the prosperity you deserve? Click here to schedule a 15-minute call directly with Michael and begin your journey towards a financially rewarding life. When you schedule you'll receive a complimentary copy of Michael's groundbreaking book:

Michael Budnick is a seasoned financial planner, coach, and author with over 25 years of experience in empowering individuals to achieve their financial goals. As the author of three groundbreaking books, including The 401(k) Survival Guide for Nurses and The Prosperous Nurse: Your Roadmap To Wealth, Health, and Happiness, Michael has made it his mission to provide valuable financial insights specifically tailored for nurses and other healthcare professionals.