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Welcome back to the Successful Financial Strategies blog! In our last post, we were happy to announce our partnership with AssetLock®. Through this partnership we are better able to provide our clients and our advisors assess to 401(k) and other retirement saving accounts so they can have a faster response to changes in the market climate that directly affects their accounts. To learn more about this exciting partnership and how you can have access to pertinent information right on your phone, read “AssetLock® & SFS Join Forces.”

Basics of 401(k) That You Need to Know

Since we just discussed the benefits of AssetLock, we thought it would be a good idea to discuss the basics of a 401(k). In many cases, we find that clients know very little about their retirement accounts and assume that is all is well. However, as we have discussed many times, to have a sound financial future, you must make proactive steps toward your goals. The only way to do that is to understand what your 401(k) is and how it can serve you.

What Does 401(k) Mean?

The term “401(k),”which has become synonymous with the actual retirement account name, is a section of tax code that allows for individuals to create such an account: specifically, individuals are allowed to legally utilize tax-advantage retirement accounts.

What is a 401(k) Account?

A traditional 401(k) account allows an individual to make contributions into a savings account pre-tax. Because deductions are made before tax, the individual pays less income tax. Tax-deferment lasts until retirement when the individual begins to withdraw from their account. Taxes, however, will never be paid on dividends, interest, and rents. The owner of the account can start making withdrawals when they turn 59 ½.

What is a Roth 401(k) Account?

A Roth 401(k) is similar to a traditional 401(k) account. However, tax deductions occur when the individual makes their contributions to their account. This means that when they begin to withstand from their account during retirement, that they will not owe any taxes.

What Are the Benefits of a 401(k) Plan?

A 401(k) isn’t the only retirement account available. However, it has been one of the most popular retirement savings plans and here’s why:

  • Lowers your taxable income
  • Dividends are never subject to taxes
  • Many employers offer matching contributions which is essentially free money
  • You can contribute to your 401(k) for as long as you want
  • Protected from judgement creditors as a Employee Retirement Income Security Act account

Though a Roth 401(k) plan allows you to pay taxes upfront, unlike its counterpart the Roth IRA, there is never an income limit for contributions.

The Bottom Line

A 401(k) plan isn’t the only retirement plan, but it is one of the most popular types of retirement savings accounts. If you are given the opportunity to contribute to a 401(k) plan and, on top of that, your employer offers matching or contribution sharing, we would highly recommend you take advantage of these benefits.

If you have questions about 401(k)s, retirement savings accounts, financial planning, or other related questions, the financial advisors of Successful Financial Strategies would love to help you. We offer our services to clients in the Arden and Hendersonville area and beyond. Learn more about what we can offer you and more by visiting our website.

upcoming seminar

How to Teach Your Kids About Money


Dates: 1/29/2019 and 1/31/2019

Topics we will cover:

  • The game of money
  • The value of money
  • Wealth transfers
  • Opportunity cost and the true cost of borrowing
  • The family bank

To RSVP, call our hotline at: (833) 818-6989 or register online at www.youRSVP.com and enter code: DARMEG

Seating is limited so please reserve your spot today!
Register Now
Or contact us for more information by filling out the form below!

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Schedule a Complimentary Consultation With Us

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Should you own life insurance? How much should have? Is your current life insurance structured to do what you think it should do? All questions you need the answers to.

Starting Social Security without a plan could means thousands of dollars missed. With Social Security planning, you can see when would be the most beneficial time to start you benefits, and make an educated decision.

We are not CPA’s but we do understand that taxable investments can cause short-term and long-term financial consequences.

Call Us Now(828) 229-2745

Arden Location

15 Loop Rd
Arden, NC 28704

Business Hours

  1. Mo, Tu, We, Th, Fr
    1. 9:00pm – 5:00pm

Hendersonville Location

100 Chadwick Square Ct E
Hendersonville, NC 28739

Business Hours

  1. Mo, Tu, We, Th, Fr
    1. 9:00am – 5:00pm

Contact Us Now

  • Do not fill this form out if you're a solicitor.
  • This field is for validation purposes and should be left unchanged.

Welcome back to the Successful Financial Strategies blog! In our last post, we were happy to announce our partnership with AssetLock®. Through this partnership we are better able to provide our clients and our advisors assess to 401(k) and other retirement saving accounts so they can have a faster response to changes in the market climate that directly affects their accounts. To learn more about this exciting partnership and how you can have access to pertinent information right on your phone, read “AssetLock® & SFS Join Forces.”

Basics of 401(k) That You Need to Know

Since we just discussed the benefits of AssetLock, we thought it would be a good idea to discuss the basics of a 401(k). In many cases, we find that clients know very little about their retirement accounts and assume that is all is well. However, as we have discussed many times, to have a sound financial future, you must make proactive steps toward your goals. The only way to do that is to understand what your 401(k) is and how it can serve you.

What Does 401(k) Mean?

The term “401(k),”which has become synonymous with the actual retirement account name, is a section of tax code that allows for individuals to create such an account: specifically, individuals are allowed to legally utilize tax-advantage retirement accounts.

What is a 401(k) Account?

A traditional 401(k) account allows an individual to make contributions into a savings account pre-tax. Because deductions are made before tax, the individual pays less income tax. Tax-deferment lasts until retirement when the individual begins to withdraw from their account. Taxes, however, will never be paid on dividends, interest, and rents. The owner of the account can start making withdrawals when they turn 59 ½.

What is a Roth 401(k) Account?

A Roth 401(k) is similar to a traditional 401(k) account. However, tax deductions occur when the individual makes their contributions to their account. This means that when they begin to withstand from their account during retirement, that they will not owe any taxes.

What Are the Benefits of a 401(k) Plan?

A 401(k) isn’t the only retirement account available. However, it has been one of the most popular retirement savings plans and here’s why:

  • Lowers your taxable income
  • Dividends are never subject to taxes
  • Many employers offer matching contributions which is essentially free money
  • You can contribute to your 401(k) for as long as you want
  • Protected from judgement creditors as a Employee Retirement Income Security Act account

Though a Roth 401(k) plan allows you to pay taxes upfront, unlike its counterpart the Roth IRA, there is never an income limit for contributions.

The Bottom Line

A 401(k) plan isn’t the only retirement plan, but it is one of the most popular types of retirement savings accounts. If you are given the opportunity to contribute to a 401(k) plan and, on top of that, your employer offers matching or contribution sharing, we would highly recommend you take advantage of these benefits.

If you have questions about 401(k)s, retirement savings accounts, financial planning, or other related questions, the financial advisors of Successful Financial Strategies would love to help you. We offer our services to clients in the Arden and Hendersonville area and beyond. Learn more about what we can offer you and more by visiting our website.

Investment advisory and financial planning services offered through Planners Alliance, LLC, a SEC Registered Investment Advisor. Subadvisory services are provided by Advisory Alpha, LLC, a SEC Registered Investment Advisor. Insurance, Consulting and Education services offered through Successful Financial Strategies. Successful Financial Strategies is a separate and unaffiliated entity from Planners Alliance, LLC and Advisory Alpha, LLC.

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