Your 401K

and what it can do for you

Are you preparing for a prosperous retirement?

Investment opportunities are a dime a dozen, but what exactly do you stand to benefit by reinvesting your cash not in a stock or bond, but in yourself? 401k’s are the best way to save money that can be used after you retire. But what are the rules? how does it work and what are your options? Lucky for you,

We have the answers you’re looking for.

What is it?

A 401k is a retirement savings plan sponsored by an employer (in this case Alterra). It lets our family invest a piece of their paycheck each pay period before taxes. Most often, employers have a match program where the employer sponsoring the savings plan contributes a percentage of the contribution made by the investor. Taxes on these funds are only paid once they are withdrawn from the account.

You Have Two Options

Traditional 401K

Roth 401K

So, what’s the difference?

The difference is that in a traditional 401k, you are not taxed upon deposit, you are taxed upon withdrawal. Meaning that you can save for the next 30 ears without ever being taxed but once you withdraw the money from the account, you are taxed on the amount taken and if you take all of it, you’re taxed in one lump some which can be bad as your numbers get higher. On a Roth 401k, the money you deposit is deposited after-tax and therefore can be drawn in its full amount as long as you are 59 years old or disabled.

Meet our 401K advisor, Sonny Flores

sonny“I wanted to take the time to introduce myself.  Aside from 401(k) management, my team and I provide overall financial planning for our clients.  This can mean investment strategies around retirement or college planning, distribution strategies, risk management (insurance) or trust planning (revocable or irrevocable, charitable, generation skipping etc.)”

– Sonny Flores

santino.flores@nm.com

702-734-4430

Reach out to Sonny for extra help with your 401k today!

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