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:
- Stand with your knees slightly bent and bend at the waist; let your arms and shoulders dangle close to the floor.
- As you inhale, return to a standing position by rolling up slowly, lifting your head last.
- Hold your breath for just a few seconds in this standing position.
- Exhale slowly as you return to the original position, bending forward from the waist
- Notice how you feel at the end of the exercise.
Breathing can do wonders for stress and the mind. Give it a whirl.