Automatic enrollment: Save Without Thinking
Photo’s in order by DOT. ; Murilo; _ES and dmax3270.
Taking control of your destiny is better than waiting for devine intervention to get you thorough retirement. I have not heard of any God promising cash to live on. The other aspect of future savings is to not use retirement for emergencies. Saving for retirement should not involve an internal debate for anyone. Do not allow a logical delaying choice which place ones future at risk.
Here is a suggestion from On Line 401K:
Sometimes we all need a little boost or push—even when it comes to things that benefit us and are in the best interest of our financial future. Automatic enrollment requires employees to opt out, rather than opt into a 401(k) plan. It compels them to at least reflect on retirement, even if they choose not to participate.
If the contributor chooses not to select an investment strategy, funds are automatically allocated into an appropriate investment, such as a target date mutual fund where the investment platform adjusts accordingly to the target
retirement age for each employee.
What are the benefits of automatic enrollment?
*Increases your employees’ participation
Statistics show that automatic enrollment in a 401(k) plan greatly increases the percentage of participation.
*Encourages saving without thinking
For many, signing up for a 401(k) plan is intimidating – automatic enrollment allows them to save without going through those steps.
If you’re on the fence about putting a retirement plan in place because you’re not sure if your employees will participate, consider automatic enrollment!
This article comes to you from The Online 401(k), a provider of 401(k)s for small businesses. For more information or a free consultation on your 401(k) plan, contact John Wasiejko at jwasiejko@theonline401k.com or call us at 415.477.8800 xt 828.
