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1-2-1 August 2022 Thumbnail

1-2-1 August 2022

Insights Newsletters

1-2-1: Understand Your 401(k) or 403(b) and a Breathing Exercise

Happy One 2 One Day!

Here is 1 tip, 2 quotes, and 1 habit to consider this month.

1 Tip: Understand Your 401(k) or 403(b)

If you have a job with the state or you’re a public school employee, your retirement plan is likely a 403(b), otherwise 401(k)’s are a common retirement account. What’s nice about these plans is that you can deduct a portion of your paycheck each month and “set it and forget it.” Both plans also comes with the following perks:

  • Transfer your account: If you go into a new industry, you can potentially transfer your account to your new employer plan or into a traditional IRA.
  • Leave your plan in place: If you move to a new job, you can also keep your plan where it is and continue to grow your savings tax-deferred, but you won’t be able to contribute more money once you leave your employer.
  • Flexibility: Many plans allow you to change strategies, so it's possible to tweak the funds you’re invested in or have a professional manage your account. Choose savings vehicles that best suit your needs, which could include mutual funds, stocks, bonds, and real estate.

A 401(k) or 403(b) can help fill the retirement savings gap, especially if you’re entitled to a pension. Since contributions are typically made pre-tax, you will only pay taxes when you take money out of the plan.  

2 Quotes From Others

 "The question isn't at what age I want to retire, it's at what income." – George Foreman  

“I learned that when life pulls you under, you can kick against the bottom, break the surface, and breathe again. – Sheryl Sandberg 

1 Habit: Breathe to Relax

Sure, we need to breathe to live, but have you tried breathing to relax? Try this exercise to work out any tension:

  1. Stand with your knees slightly bent and bend at the waist; let your arms and shoulders dangle close to the floor. 
  2. As you inhale, return to a standing position by rolling up slowly, lifting your head last.
  3. Hold your breath for just a few seconds in this standing position.
  4. Exhale slowly as you return to the original position, bending forward from the waist
  5. Notice how you feel at the end of the exercise.

Breathing can do wonders for stress and the mind. Give it a whirl.