This DC Update is specifically written for mid-career employees, as well as those nearing retirement.
Whether you believe it or not, you my friend, are going somewhere. Each passing minute, every passing day brings you closer to the ultimate prize: Retirement – a time for kicking your feet up and enjoying the spoils of a hard-worked career. The path to get there? Well, no two retirement journeys look entirely the same, but what most successful state retirees have in common is a pension and a history of saving with MO deferred comp.
Before this retiree was here, they were rolling their BackDROP into the deferred compensation plan. A neat trick they learned when they attended a Pre-Retirement seminar, which contains loads of great information about pension benefits, health insurance, and deferred compensation. Before prepping for retirement, this retiree utilized the deferred compensation plan’s catch up contributions, which allows older workers to contribute beyond the IRS maximums to “catch-up” on missed savings. Prior to that, as the kids headed off to college, this retiree made the difficult decision to increase his personal contributions to the deferred comp plan, despite financial pressures elsewhere. This retiree knew that creating a personal safety net might actually benefit his children most in the long run. Before all of this, when he was in line for a promotion, our retiree made the decision to utilize percent of pay contributions, which he learned about after attending a FREE deferred compensation plan seminar at his office. Percent of pay deferrals ensure contributions to your retirement savings plan will change automatically any time your salary changes. Prior to that, between road trips to baseball, soccer, and the occasional piano recital, this retiree decided to invest his money in Missouri Target Date Funds, which take the guess work out of creating a diversified portfolio. These convenient funds, designed for the busy professional, invest more aggressively at the beginning of an employee’s career and transition, automatically, to more conservative investments as retirement draws near. And before thoughts of retirement, college, promotions, Mozart, or even parenthood, had entered this retiree’s mind, he made an innocent, but smart decision – he enrolled in the deferred compensation plan after meeting with his friendly education specialists. Even though his first contribution wasn’t a lot, he knew time was on his side and there’d be a day when that money came in handy.
Wherever you are on your journey, whatever event is on the horizon, remember it’s never too late to start thinking about and saving for retirement. Your future self will thank you.