401(k) Power Tools You're Not Using
The 401(k) features most participants never touch, and how to put them to work.
Read the transcript
Your 401(k) is a really powerful tool in your tool chest. The thing is, though, most people don't realize just how powerful it is, because there's often options in their 401(k) plan that they're totally unaware of.
Pre-tax and after-tax contributions
A very simple one would be: you can contribute both pre-tax and after-tax. The after-tax option is often very powerful, because it allows you to put a lot more into your tax-free bucket than you could otherwise.
The self-directed 401(k) option
Another really powerful option is the option to do what's called self-directed 401(k). All that means, in very simple terms, is it allows you to have access to a much more powerful set of investment choices, and it allows us to help you actively manage that account. So we have the ability to actively manage that, but it first starts with you looking into your corporate plan, seeing if that's even an option. And obviously, we help advise you on how to invest that, given whatever choices you have, so that it's consistent with your financial plan.
Transcript edited for readability from the video. Machine-transcribed; may contain minor errors.
