![%POST_TITLE% Thumbnail](https://static.twentyoverten.com/5a2960f547c4357916a4f2d5/FOQx6jIE9UW/cropped/AdobeStock_169320426.jpeg)
How Much Do You Know About Your Retirement Plan Quiz?
Many people often find that they know far less about their retirement plan than they thought. Test yourself with the quiz below and see how much you know about your financial future.
1. What type of retirement account do you have with your employer?
- 401(k)
- 403(b)
- 457(b)
Depending on your industry your retirement account will look different. As a rule of thumb, for-profit companies tend to have 401(k)s while non-profits typically use 403(b)s. State government jobs tend to be 457(b)s. These are not hard rules however and it's important to reach out to your plan sponsor to find out what plan you are involved in.
2. How risky are your investments?
- Aggressive
- Moderate
- Conservative
Once your money is in a tax-deferred retirement account, you need to choose how to invest it. Choosing how aggressively to invest that money is important. Depending on how much you contribute relative to your income as well as how close you are to your retirement, different levels of risk are best to maximize your retirement returns. If you are early in your career or make smaller contributions, a more aggressive strategy could grow your nest egg faster (albeit with more risk involved). On the other hand, if you are later in your career or are making bigger contributions, you may need your money to grow as much to have a secure retirement, so a more conservative strategy could be more suitable.
3. Do you know the employer match limit for your retirement account (if they have one)?
Finding out your employer's match limit is important. If you contribute less than that number, you are missing out on “free” money to put away for your retirement. Ensuring you contribute at least that much will allow you not to leave anything on the table.
4. Who is your Beneficiary?
- Spouse
- Child(ren)
- Sibling(s)
Many people are unaware of who the beneficiary of their retirement account is in the event they were to pass on. If they are married, then the default is their spouse and if someone is single then the account is included in their estate. Naming a beneficiary is typically very easy to do and can save your loved ones a significant amount of time and money in their time of mourning. Questions like the ones above are important to know the answers to, to make the most of your retirement plan. Reaching out to your advisor or plan sponsor is a great way to get answers to these key questions. If you can't answer one or more of these questions, reach out to your advisor or plan sponsor.
Return to Participant Insights
For more information, contact your MCF Financial Advisor today!
Hunter Nighbert
Financial Advisor
hnighbert@mcfadvisors.com
859-967-0990
Schedule a meeting
IMPORTANT DISCLOSURE INFORMATION
MCF Advisors, LLC (“MCF”) is a SEC registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. More information about the adviser can also be found by visiting: https://adviserinfo.sec.gov/firm/summary/130372. The above commentary is for informational purposes only. Information prepared from third-party sources is believed to be reliable though its accuracy is not guaranteed. This is not intended as an offer or solicitation with respect to the purchase or sale of any security. MCF may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Please remember that past performance is not indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by MCF), or any non-investment related content, made reference to directly or indirectly in this blog/newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog/newsletter serves as the receipt of, or as a substitute for, personalized investment advice from MCF. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. MCF is neither a law firm nor a certified public accounting firm and no portion of this content should be construed as legal or accounting advice. A copy of MCF’s current written disclosure statement and customer relationship summary (“Form CRS”) discussing our advisory services and fees continues to remain available upon request. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement. If you are a MCF client, please remember to contact MCF, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services.