Statistics on Saving and Investing

What’s typical when it comes to saving and investing? We review a report to get the most recent statistics on things like using target date funds and making use of a Roth 401(k). How do you compare?
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Today’s Question:

What’s typical when it comes to saving and investing? We review a report to get the most recent statistics on things like using target date funds and making use of a Roth 401(k). How do you compare?

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Confidence Corner

Vanguard recently did a report about how America saves. On today’s episode of the podcast we talk about what these statistics mean and how it might apply in your financial plan.

The study shows that 78 percent of investors use target date funds in their 401(k). What does Nathan think about target date funds for retirement? Is this choice appropriate for this many people? Are all target date funds the same? Have you checked to see that the target date fund is working the way that you want it to?

Are you taking advantage of the Roth 401(k)? Taxes are bound to go up in the future and that is one way to minimize your taxes in retirement. Is your company matching? Remember that the company contribution continues to go into the regular 401(k), not the Roth option.

Do you have company stock? Is this an investment you want to have? Make sure your portfolio is diversified. How much should company stock should you have?

Finally, is it ever wise to take a hardship withdrawal from your 401(k)? Major emergencies such a job loss or health scare may mean you’ll want to withdraw from it. Major emergencies should not include things like buying a boat, paying off a car, or replacing the roof. If you do need to withdraw from it, make sure to know the restrictions and taxes that come with that.

Listen to the entire episode or click on the timestamps below to skip ahead to a particular segment.

0:29 – Nathan shares about his latest catch.

1:50 – A recent study shows the majority of people use target date funds in their 401(k).

3:30 – What is a market cap weighted fund?

6:08 – Should you be using a Roth 401(k)?

7:53 – Should you be holding more or less company stock?

10:25 – Is it logical to take a hardship withdrawal from a 401(k) if needed?

 

A Point Of Wisdom:

“You’ve got to make sure the fund is doing what you want. Every target date fund is not managed the same.“

-Nathan O’Bryant

 

 

Related Content:

PODCAST: Don’t Assume When it Come to Retirement

PODCAST: Industry Insights Amidst Coronavirus

 

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Download Your Retirement Rescue Toolkit – Learn More About Our Firm

 

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YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

Facebook Linkedin Twitter Youtube

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

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This content is provided for informational purposes only. It is not intended to provide tax or legal advice. O’Bryant & Associates, Inc., is a registered investment advisory firm in Tennessee.

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