FAQ

A good starting point is your employer match. At minimum, contribute enough to get the full employer match—it’s essentially free money. If you start later in life, you may need to contribute more to catch up.

• Traditional 401(k): Contributions are pre-tax, reducing your taxable income today, but withdrawals are taxed in retirement.
• Roth 401(k): Contributions are made after taxes, but withdrawals are tax-free later*. If you expect higher taxes in the future, Roth may be beneficial. Many people choose a mix of both for flexibility.

^{*To qualify for the federal tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 1/2 or due to death, disability, qualified education expenses, qualified medical expenses, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending upon state law, Roth IRA distributions may be subject to state taxes.}

If anyone depends on your income—such as a spouse, children, or even business partners—life insurance is important. It helps cover expenses like living costs, debts, and education if something happens to you. Life insurance can also be used as a asset class and in many cases, acts as the foundation for many peoples’ financial portfolios.

A common guideline is the values of debt combined with the expenses it would cost your family to live on for a certain period of time, but your needs may vary. Consider your debts, mortgage, future expenses (like college), and how long your family would need financial support.

The earlier, the better. Starting young allows your money to grow through compounding over time. Even small, consistent contributions can make a big difference over the long run.

You don’t need a lot—many platforms let you start with $50 to $100 or less. The key is consistency and regular investment flows, not the initial amount.

Simple, diversified options are usually best, such as: Index funds, Exchange-traded funds (ETFs), and Target-date retirement funds. These spread your risk across many investments and require less active management.

You typically have a few options: Leave it with your old employer (if allowed), Roll it into your new employer’s plan, Roll it into an IRA, or Cash it out (not recommended due to taxes and penalties)

You can manage finances on your own, especially with simple strategies. However, a financial advisor can provide personalized guidance, help you avoid costly mistakes, and create a long-term plan that includes investing, retirement, and insurance.