PART 2: The Basics of Retirement Accounts

Assalamu Alaikum girlie! 🌺

If you’re ready to become an investor by Friday, knowing the right questions to ask can make a world of difference in your retirement investment strategy.

Picking up from last week, here’s what we’ll cover today:

• 10 Questions to Ask Your Employer

• Tips for Maximizing Your Retirement Savings

Let’s jump in

10 Questions to Ask Your Employer

1. What types of retirement accounts do you offer?

   • Understand the different options available, such as a 401(k), 403(b), or SIMPLE IRA, and their unique benefits.

2. Is there a company match?

   • Find out if your employer matches contributions and up to what percentage. This is essentially free money for your retirement!

3. What are the vesting requirements?

   • Learn how long you need to stay with the company to keep the employer contributions if you leave.

4. What are the investment options?

   • Ask about the types of funds or investment options available within the plan. Are there low-cost index funds, mutual funds, or target-date funds?

5. What are the fees associated with the plan?

   • Understand any administrative or management fees that might be deducted from your account. Lower fees can mean more money stays in your retirement fund.

6. Can I make changes to my contribution amount or investment choices?

   • Check how flexible the plan is. Can you adjust your contributions or switch investment options easily?

7. What resources are available for financial advice?

   • See if your employer offers any tools, resources, or access to financial advisors to help you make informed decisions.

8. Are there any additional benefits or perks?

   • Some employers offer extra perks like financial wellness programs, retirement planning seminars, or bonuses for participating in the retirement plan.

9. What happens if I leave the company? 

   • Clarify the process and options for rolling over your retirement account if you change jobs.

10. Is there a brokerage options within my investment account?

    • If your employer has limited mutual funds/ ETFs you can choose from, a brokerage account will allow you to choose an investment option outside of the selected ones.

Tips for Maximizing Your Retirement Savings

1. Start Early: The sooner you start contributing to your retirement account, the more time your money has to grow. Compounding works best over long periods.

2. Contribute Regularly: Make consistent contributions to your retirement account, even if they’re small. Regular contributions add up over time.

3. Take Advantage of Employer Match: If your employer offers a 401(k) match, contribute enough to get the full match. It's essentially free money.

4. Diversify Your Investments: Spread your investments across different asset classes to reduce risk and increase potential returns.

5. Review and Adjust: Periodically review your retirement account and adjust your contributions and investment choices based on your financial goals and market conditions.

Beyond all of this, the most important this is to START!

Here’s YOUR challenge: schedule a meeting with your hr/ benefits rep in the next week to ask these questions. Shoot me an email letting me know how it went (I’ll be your accountability partner 😉)

I’ll catch you next week Inshaa Allah

Invest now and build wealth,

Fatimah ✨

disclaimer: this is intended for educational purposes only, none of which constitutes specific financial advise.