Question I am currently enrolled in a 401k at 5% of my pay with a company match at 5% (the max they will match). My wife has never been enrolled in any type of retirement plan nor does her company offer any plans. My question is should I increase the amount I put into my plan to help cover for the lack of a retirement plan for my wife, even though I maxed-out the company match, or are there better alternatives? I like having my 401k automatically deducted from my paycheck, and not having to rely on myself to put the money back. If age is a factor, we are both 36. Thank you for your time.
Answer The rule among most advisors (including myself) in most cases is that one participate in the 401(k) to the point where the employer matches, as you have. After that, assuming one is eligible, one should participate in other tax-qualified plans; namely IRAs, Roth in particular. However, if you are particularly happy with your 401(k) options, there is nothing wrong with the ease and simplicity of increasing your plan participation in lieu of other alternatives. It may be a good idea to discuss your options with an advisor. You can find one in your area who will do this type planning at little or no cost at www.christianfinancial.vpweb.com.
Retirement planning, tax qualified retirement plans (401(K), IRAs, etc.), mutual funds, insurance used in retirement planning, estate planning (tax planning, transfer of assets, creditor protection).
Comprehensive financial planner, 14 years; Executive Director, Association of Christian Financial Advisors, the nation's largest nonprofit financial planning network. Financial writer and frequent contributor to journalists and media sources.
Organizations Association of Christian Financial Advisors (Executive Director), National Association of Insurance and Financial Advisors (NAIFA).