Category: Retirement Trends

Small Business Owner’s Guide to SECURE ACT Tax Credits

Siân Killingsworth / 9 Aug 2022 / 401(k) Plan Information, Retirement Trends, Safe Harbor

If you’ve held off on providing a 401(k) plan to your employees in the past due to startup expenses, then it’s time to look into the SECURE Act tax credit. As of January 1, 2020, small business 401(k)s are eligible for a tax credit that offsets the cost of plan setup and administration for the first three years.

As a small business 401(k) provider, the experts at Ubiquity will provide all the information you need to offer a new retirement plan at a low, fixed cost.

Step 1: Determine your SECURE Act eligibility.

For SECURE Act 2022 eligibility, you must:

• Have less than 100 employees who receive $5,000+ per year in compensation.
• Have at least one plan participant who is a non-highly compensated employee.
• Not have had a 401(k) or other qualifying retirement plan within the past 3 years.

Step 2: Set up your small business 401(k) plan.

Next, you’ll need to work with a small business 401(k) plan provider to set up your plan. You’ll need to create a plan document that complies with IRS Code and outlines all the details of your retirement plan. You’ll also need a trust to hold the plan assets and a broker to help you select funds and execute the investments.

Over the years, your 401(k) administrator will help you maintain 401(k) records, enroll new employees, track employee deductions, provide information to plan participants, and keep your plan in compliance with the law.

Ideally, you will choose a low-cost 401(k) provider that focuses on small business clientele and charges a flat fee for service. Administrative costs can vary considerably, with some providers charging per-person fees and assets under management fees — expenses that grow along with the size of your plan. Alternatively, Ubiquity provides flat-fee plans whose cost will never rise, no matter how much your savings grow.

Step 3: Claim your SECURE Act credit.

When you file your taxes, you’ll need to file IRS Form 8881 to claim your startup tax credit. Taking this simple step can qualify you for a tax credit worth $500 to $5,000, put toward up to 50% of your 401(k) setup and administration expenses. If you choose the automatic enrollment feature, you qualify for an additional $500 per year, dollar for dollar.

These credits can be applied for the first three years of your new plan. In total, you can get up to $16,500 in free money for your business just for starting a retirement savings plan, which can help you save more for your own retirement and make your company more competitive in the job market.

Keep in mind that even after the first three years, you’ll be able to write off any non-elective or matching contributions to reduce your company’s taxable income. What’s more, any money put into your own 401(k) will reduce your personal taxable income. The saved money will gain compounding interest over the years, helping you to feel more financially secure in your retirement.

Questions about 401(k) retirement plans for your small business? Contact Ubiquity today.

SECURE Act 2021 Eligibility Updates

Siân Killingsworth / 29 Mar 2021 / Business, Retirement News, Retirement Trends

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 was the first major update to retirement plans in more than a decade.

Certain provisions already debuted, but one of the most significant changes — expansion of eligibility to participate in 401(k) plans – went into effect on January 1, 2021. Wondering what these changes are and what they mean for your small business this year? As a leading small business 401(k) administrator, Ubiquity is here to clarify matters.

Who Is Eligible to Participate in 401(k) Plans, Under the SECURE Act?

The 401(k) retirement savings vehicle is no longer just for long-term, full-time employees working more than 1,000 hours. Under Section 112 of the SECURE Act, eligibility expands to workers who:

• Are at least 21 years old by the last day of the 401(k) plan year
  and
• Work part-time for at least 500 hours per year, over the past three consecutive years.

When calculating whether or not an employee has worked “at least 500 hours,” plan sponsors are not required to count before January 1, 2021. So, while you have to start tallying up the hours your part-time workers are putting in starting this year, you may not have to formally enroll these workers into your 401(k) until the 2024 plan year.

The SECURE Act Eligibility Update’s Impact on Nondiscrimination and Top-Heavy Testing

The SECURE Act change will add a layer of administrative complexity, as plan sponsors develop new systems for tracking and reviewing hours for part-time employees over the one to three-year tracking periods.

Sponsors will need to consider whether part-time employees will also be eligible for employer contributions and whether to set a vesting schedule. If a long-term, part-time employee becomes eligible for employer contributions, each of the years they were employed and worked 500 hours (even before January 1, 2021) must count for vesting.

For employers who are subject to nondiscrimination and top-heavy testing, adding long-term, part-time employees can skew the results. The SECURE Act allows a testing exclusion for employees working 500 hours a year, but employees working 1,000 or more hours in one year must be included. If, when you start your plan, it contains more than 100 participants, you will require an independent qualified auditors report to accompany your annual Form 5500. If you’re a growing business that has been considered a small plan in the previous year, you will not be audited until you hit 120 participants.

If you are worried about your ability to pass these annual tests, you may want to consider contacting Ubiquity about adding a Safe Harbor provision to your plan for hassle-free administration.

Eligibility Questions to Consider

Plan sponsors may want to consider this short list of questions to ensure they are prepared for the change:

• Is the hours of service tracking system updated as of January 1 to stay compliant?
• Have you updated your plan administration documents to note the new eligibility criteria?
• Do you wish to expand eligibility for matching or non-elective contributions to these employees?
• Do you need to update new-hire and recruiting materials to ensure plan participation?

What’s Next?

The House Ways and Means Committee introduced SECURE Act 2.0, otherwise known as the Securing a Strong Retirement Act bill, on October 27, 2020. If passed, this bipartisan bill would, among other things, reduce the 12-month measurement period for long-term, part-time employees from three years to two years. Simply put, don’t plan on making the changes in 2024; prepare your business to increase plan enrollment today.

If you think now is the right time to start your 401(k) retirement savings plan, or have questions about switching providers, call Ubiquity, a leader in setting up and administering low-cost 401(k) plans for small businesses and solopreneurs.

2020 Changes to RMD

Siân Killingsworth / 30 Jul 2020 / Retirement Trends

A 401(k) is an optimal tool for reducing your tax liability, but you can’t dodge payment to Uncle Sam forever. Required Minimum Distribution rules ensure that people do not accumulate wealth in tax-free retirement savings accounts to leave as an inheritance.

Once employees with 401(k) or IRA accounts reach a certain age, they must withdraw a minimum required amount from their funds. The withdrawal is generally included on income tax forms, with the exception of a Roth account that was already taxed when first contributed to the account. Your RMD is calculated by your retirement account balance as of December 31 of last year, divided by your Life Expectancy Factor.

In 2019, U.S. workers had to take their RMDs at age 70.5, but much has changed amid the global pandemic crisis. The Setting Every Community up for Retirement Enhancement (SECURE) Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Act both include provisions affecting RMDs in 2020.

Continue reading or contact your 401(k) plan provider with specific questions about 2020 RMD changes.

The starting age for RMDs increased from 70.5 to 72 – but not until 2021.

• In late 2019, the SECURE Act increased the age for RMDs to 72.
• In March 2020, the CARES Act waived RMDs altogether for the 2020 calendar year.
• If you turned 70.5 by the end of 2019, resume taking your regularly scheduled RMDs in 2021.
• If you were under 70.5 by the end of 2019, you don’t have to take your RMD until April 1 after you’re 72.

Those over 70.5 can undo RMDs already taken this year if they are eligible for a rollover.

• RMDs can be rolled back into the retirement account if you have received the funds within 60 days.
• RMDs must be directly rolled, but can be taken even if you have completed a rollover within the year.
• Non-spouse beneficiaries can undo RMDs already taken as long as they do so by August 31, 2020.
• Rolling the money back means you do not have to include these amounts on your 2020 income taxes.

Beneficiaries can take the year off RMDs

Prior to 2020, inheriting an IRA or 401(k) account meant taking RMDs based on one’s own life expectancy. This was great news for young heirs who were able to stretch tax deferral for decades. However, this changed with the SECURE Act.

• Heirs must now draw down the inherited account within 10 years if inherited in 2020 or later.
• Beneficiaries can skip RMDs for 2020, but they may want to take them if they need the cash now.
• Holding off on RMDs for a Roth account makes sense, as you accrue tax-free money for a longer time.
• IRA beneficiaries operating under the five-year rule can take one extra year to draw down the account.

Should you take your RMD in 2020?

The question as to whether or not you should take advantage of the RMD waiver is a personal one.

YES, TAKE IT if…

• You were planning on these distributions for your living expenses in retirement.
• You risk getting bumped into a higher tax bracket with a higher balance and withdrawal percentage.

NO, HOLD OFF if…

• You don’t need the full amount to cover your costs, and you’d like to reduce taxable income for 2020.
• Some of your investments have decreased in value due to the downturn, and you’d rather wait to sell.

You may also consider taking a distribution this year, but capping it so that you won’t move into a higher tax bracket or trigger steeper Medicare premiums. Whether you’d like a full annual/quarterly/monthly RMD, a partial RMD, or a deferred RMD, you’ll need to contact your Third Party Administrator to discuss your preferences.

Ubiquity is a flat-free 401(k) plan provider that can offer free, efficient, expert advice on retirement savings. Questions about retirement planning? Employers and employees alike may contact us for details.

Your Small Business Is The Right Size For A 401(k)

Siân Killingsworth / 21 Mar 2019 / 401(k) Plan Information, 401(k) Resources, Personal Finance, Retirement Trends

It’s no secret that the life of a small business owner is a lot of work. Especially in situations where you only have a few employees (or none at all), you have to act like the Swiss army knife of your business––ready for anything and prepared for any situation. So, why add the hassle of having to pay for and run a retirement plan along with everything else? You might even wonder, is my business too small to for a 401(k) plan?

Here’s the scoop: A 401(k) is no longer a benefit reserved exclusively for large businesses with budgets to match.

There are budget-friendly, easy-to-use 401(k) solutions designed specifically for small businesses. Small business owners can now take advantage of the business tax benefits of a 401(k) plan and offer competitive retirement plan benefits for employees.

Not too familiar with 401(k) plans? No problem.

What is a small business 401(k)?

First things first: A 401(k) plan is a type of company retirement plan under Section 401(k) of the Internal Revenue Code. That part isn’t so important — here’s what is: A 401(k) allows you to save for retirement by putting away money on a pre-tax basis, which helps you to lower your taxable income. What’s that mean to you? It means you’ll get less of a tax bite on your annual salary in the short term, while your long-term investments grow tax-free until you’re ready to retire. Some 401(k) plan providers (including Ubiquity) also offer an after-tax (Roth) option, which means you won’t be taxed at the time you withdraw that money because you’ve already paid taxes on it.

A small business 401(k) is defined as a 401(k) plan for a company with anywhere from one to 100 employees. Here at Ubiquity, we specialize in the retirement plan needs of small and growing businesses, including owner-only and start-up businesses.If your business only employs you, your spouse or partner, and employees who would not be eligible to participate in a plan, a Single(k)® plan would your best option.

Small business 401(k) plans offer unique benefits to both business owners and their employees who participate in the plan.

Busting 401(k) Myths

Myth #1: 401(k) plans are too expensive for small businesses.

It’s true that many 401(k) plans are designed to only suit larger businesses. But the growing trend is to offer efficient, Web-based 401(k) plans that are more affordable to businesses of all shapes and sizes. Plans cost less than a daily latte, and employers have options for splitting costs with their employees.

Myth #2: 401(k) plans require an employer match.

An employer match or profit-sharing contribution is entirely optional with a 401(k). If you choose to offer this feature to your employees, it could help to boost participation. Keep in mind that employer contributions are also tax-deductible for your business.

Myth #3: Our employees won’t participate because they don’t make enough money.

There is no minimum contribution required with a 401(k). Offering an employer match can provide additional incentive for your employees to participate in the plan.

Myth #4: It’s too complicated.

Starting a 401(k) plan doesn’t have to be convoluted. With the right plan, you can get a new plan running in just a few hours of your time. And it’s easy to manage, with tools and reports available right at your fingertips.

The Best Place to Live in Retirement

Andrew Meadows / 21 Mar 2018 / Retirement Trends

As you are planning your retirement, it is fun to think about moving somewhere new, maybe even a beach destination.

However, it is essential to consider a variety of factors that will help you identify the best fit for you and your new phase of life. The factors workers most frequently say are important to their decision-making are affordable cost of living (71%), proximity to family and friends (54%), good weather (49%), low crime rates (49%), access to health care (43%), and recreational activities (41%).

If you think you have found the location for you, you may want to vacation there during different times of the year or spend a month or more there at a time, just to make sure you get the full perspective of a resident versus a vacationer.

Some experts also recommend that you open a bank account, have a medical appointment, or conduct other kinds of personal business in your selected location to make sure you experience the aspects of the culture and understand what will be available to you once you move there.

Several organizations routinely analyze data to identify the best places to live in retirement. Their research can help you evaluate the things that are most important to you when deciding whether you want to relocate retirement.

Best places to retire in the U.S.A.

Forbes’ annual Best Places to Retire list takes into consideration things like access to medical care, crime rates, air quality, unemployment, cost of living, and factors that can make for a fulfilling retirement, such as opportunities for volunteering and exercise. According to Forbes’ analysis, and its admitted preference for college towns, here are the 25 best places to retire in 2017 (listed alphabetically).

• Athens, Georgia
• Bella Vista, Arkansas
• Bethlehem, Pennsylvania
• Boise, Idaho
• Brevard, North Carolina
• Clemson, South Carolina
• Colorado Springs, Colorado
• Fargo North Dakota
• Grand Prairie, Texas
• Green Valley, Arizona
• Harrisonburg, Virginia
• Iowa City, Iowa
• Jefferson City, Missouri
• Lawrence, Kansas
• Lewiston, Maine
• Lincoln, Nebraska
• Maryville, Tennessee
• Ocean Pines, Maryland
• Peoria, Arizona
• Port Charlotte, Florida
• San Marcos, Texas
• Savannah, Georgia
• Summerville, South Carolina
• The Villages, Florida
• Wenatchee, Washington

Best cities to retire

If big cities are more your style, you might want to look at the Milken Institute’s Best Cities For Successful Aging report.

This study considers nine factors that make the “best” city for retirees: general livability, healthcare, wellness, financial security, education, transportation and convenience, employment opportunities, living arrangements and community engagement.

It has also found that cities with colleges rank higher on quality-of-life factors that affect older adults, including economic strength and recreation. Here are Milken’s top 10 big cities for aging successfully.3

1. Provo-Orem, Utah
2. Madison, Wisconsin
3. Durham-Chapel Hill, North Carolina
4. Salt Lake City, Utah
5. Des Moines-West Des Moines, Iowa
6. Austin-Round Rock, Texas
7. Omaha-Council Bluffs, Nebraska-Iowa
8. Jackson, Mississippi
9. Boston-Cambridge-Newton, Massachusetts-New Hampshire
10. San Francisco-Oakland-Hayward, California

If you are more comfortable in a smaller setting, those have been ranked too. The top 10 best small cities tend to have moderate living costs, quality healthcare, educational facilities, and a community feel.3

1. Iowa City, Iowa
2. Manhattan, Kansas
3. Ames, Iowa
4. Columbia, Missouri
5. Sioux Falls, South Dakota
6. Ann Arbor, Michigan
7. Ithaca, New York
8. Lawrence, Kansas
9. Logan, Utah-Idaho
10. Fairbanks, Alaska

How livable is your hometown?

Ever wondered about how your hometown ranks on the list of great places to live? AARP’s Livability Index will tell you. Follow this link and type in your address or town name to find out how livable your community is.

Best warm places to retire

Even with all the conveniences that cities have to offer, many people dream of living by the beach or in a warmer climate. AARP researchers found ten great places to retire – all of which boast at least 250 days of sunshine each year. Other factors considered include cost of living, the range of activities for retirees, and a low crime rate.4

1. Asheville, North Carolina
2. Grand Junction, Colorado
3. Sarasota, Florida
4. San Diego, California
5. Las Cruces, New Mexico
6. San Luis Obispo, California
7. St. George, Utah
8. Santa Fe, New Mexico
9. Bend, Oregon
10. Fort Worth, Texas

Best places in the world to retire

If you are thinking more globally, International Living’s Annual Global Retirement Index measures factors that are important to those who are considering a move to another country, including ease of buying property, ease of attaining a visa, cost of living, entertainment, healthcare, climate, and governance. Here are the top 10 international locations for retirees in 2018.

1. Costa Rica
2. Mexico
3. Panama
4. Ecuador
5. Malaysia
6. Columbia
7. Portugal
8. Nicaragua
9. Spain
10. Peru

Learn more

Despite some locations showing up on multiple lists (Lawrence, Kansas, and Iowa City, Iowa), researchers have identified places all over the U.S. and the world as great places for fulfilling the needs and desires of retirees. Wherever you decide to live, you will need retirement income to support your lifestyle.

If you’re a small business owner and need a 401(k) plan for yourself and your company, only Ubiquity offers flat-fee plans plus free expert advice. We’ll fully customize your 401(k) to meet the specific needs of your small business.

Check out our cost-effective, plan solutions

Resources for best places to retire

1. Transamerica Center for Retirement Studies: Wishful Thinking or Within Reach? Three Generations Prepare for “Retirement,” December 2017
2. Milken Institute Center for the Future of Aging: Best Cities for Successful Aging
3. AARP: 10 Great Sunny Places to Retire
4. International Living: The World’s Best Places to Retire in 2018

Saving for Your First Retirement Savings Plan? Talk to HR

Siân Killingsworth / 8 Dec 2017 / Retirement Trends

Participating in your first retirement savings plan can seem overwhelming and may stir up a whirlwind of questions. Remember: even though getting started can be difficult, you are taking an important step in investing for your future.

As you navigate your company’s retirement benefits, talking with your Human Resources (HR) person, department, or whoever is managing your company’s plan, is your best place to start.

For some insight on how your HR department can help you get your savings plan in gear, we sat down with our own HR people here at Ubiquity Retirement + Savings.

Q: Does being overwhelmed prevent individuals from enrolling in retirement plans? Are there any other reasons why people don’t enroll?

A: It’s not necessarily that employees feel overwhelmed with choices, but rather, depending on their age, they feel overwhelmed with their financial situation and obligations. Employees just now entering the workforce have always heard they need to save for retirement. But because that date is so far in the future, many don’t feel it’s the proper savings vehicle, especially when they may have student loans to pay off, for example.

It’s hard to conceptualize an event that is 30 to 40 years in the future. For people in the middle of their careers, it’s almost a no-brainer that you must establish retirement savings. Depending on your financial situation, saving any amount from your paycheck can be difficult. Still, most people who are GenX and Y know they need to open a 401(k) sooner than later. Probably the biggest reason for not enrolling is the lack of extra funds. If someone is living paycheck to paycheck, there isn’t much to save.

Q: What’s the best way for employees to learn their options for retirement savings vehicles at their company?

A: The best way would be to ask their HR department, or if they are at a small business, to approach the owner or person responsible for payroll and benefits. At companies with dedicated HR departments, it’s important to continually remind employees of this benefit. Having a “benefits fair” is a great way to educate and publicize the options available to employees. If an employee learns there isn’t a retirement plan available, I would encourage them to educate their HR department or company owner on how these plans benefit the company. Retirement plans attract and retain talent, and the associated tax savings almost entirely cover any additional costs.

Q: If an employee is new to a company, how should they approach HR to inquire about retirement benefits?

A: A good HR practice is always to have information on benefits available to employees and to go over this at orientation or in new hire meeting. A lot of established companies have defined new hire orientations and a section on benefits is part of that.

However, even at a smaller firm, you still have an onboarding meeting where you have to complete administrative paperwork. If an employee doesn’t notice any information on retirement when completing this new hire paperwork, that would be the time to ask.

Q: If an employee is not currently enrolled in a retirement savings plan, how can they get started?

A: First, look at your paycheck and current financial obligations to determine what percentage of your income you can save. Then, speak to your plan sponsor and find out when you can start contributing. It’s important to remember that it’s not a direct calculation where if you decide to save $200 per paycheck your net check is automatically $200 less. With the tax benefit, you are getting taxed less, so your net paycheck might only be $150 less.

Q: Why are company match programs especially important when choosing an employer?

A: Two words: FREE MONEY! That match is so important because it’s literally free money that is going into your savings vehicle. At a minimum, you should always contribute as much as your company will match, otherwise you are leaving cash on the table.

Download your Definitive Guide to Small Business 401(k) Plans

5 Ways to Save like a BOSS (or a Millennial)

Siân Killingsworth / 27 Nov 2017 / Retirement Trends

As a busy career woman and Millennial who is hyper-conscious about saving and being a socially responsible investor, I search out simple automated apps so I can practice the “set it and forget it” method of saving.

Blooom is my go-to robo 401(k) advisor. You can sign up in less than five minutes. It visually shows you if your 401(k) is healthy in the form of a flower. The only time I have spent on my 401(k) was setting up my Blooom account. They take care of all the maintenance, such as rebalancing my account and making sure I follow the golden long-term investment rule: Always diversify your portfolio.

Stash is my preferred long-term investing app With Stash you don’t have to have all the money upfront to buy shares, it only takes a minimum of $5 to start, and then you own a percentage of an exchange-traded fund (ETF).

Bonus! It has an auto-Stash feature, which I use to pull funds every pay period to invest in my designated ETFs. This app took the fear out Wall Street for me, as the app is intuitive and educational.

Before discovering Stash I was anti-Wall Street and investing because I found it to be expensive and scary, and I thought you had to have an economics degree to comprehend it. Stash allows me to invest in the companies and ETFs I believe in and want to support like their “Do the Right Thing” ETF which include socially responsible businesses. Being able to choose what company I invest in means I can put my money where my values lie, which is super important to me.

Digit.co is my “because life happens” savings app. Digit.co analyzes your bank account and spending patterns. The software analyzes your daily checking account balance and learns your spending habits. Powered by this information, the software knows when and how much to move from your checking account to your Digit account. The amounts vary depending on your checking balance and spending habits for that day/week/month. I notice they tend to pull smaller amounts between $5 and 10.

Simple is my bank. After more than a decade with Bank of America, I took a risk on banking with a start-up, online-only bank. Simple, has single-handedly changed my spending behavior and saving psychology, it offers two savings features—Goals and Safe-to-Spend. Goals allow me to save for anything from my upcoming trip to Maui to my student loan payment, by auto-transferring money each day to the Goals. My money is still in my checking account (Simple does not make you open a traditional savings account), but when I look at my account, I just see a Safe-to-Spend balance, which excludes funds in my Goals. I no longer have to sit down and figure out how much I need to save because Simple does it for me.

My conclusion? Because of recent financial technological (FinTech) advances, investing and retirement saving has become much simpler, if not easier. I can be a savvy saver who takes into account my immediate goals, my potential emergency needs, and my future needs. While we, Millennials, have the odds stacked against us in many ways, the ew technology that helps us get ahead in the savings race, is not one of them.

Millennials: Take These Steps to Prepare for Retirement

Siân Killingsworth / 17 Nov 2017 / Retirement Trends

Millennials make up the largest labor force in the U.S. and are expected to work longer due to college debt, rising rent costs and uncertain retirement benefits such as Social Security.

The Millennial generation, which spans 18 years, hasn’t been dealt the best hand, having come of age during the post-9/11 and Grand Recession era. However, that doesn’t mean that they should abandon hopes for the the future, or consider a “work till I’m dead” approach. Financial education and smarter decision making will help this generation overcome obstacles, while also potentially being the savviest generation on record.

1. Your teens

One of the biggest mistakes you can make in your teens is not seizing the opportunity to learn about money and establish a foundation for the rest of your life.

Some of us are lucky in that our states require us to complete personal finance courses to graduate high school, so we’re forced to pay attention to the importance of learning about savings.

However, regardless of whether financial education is required or not, you should make it a priority at this point in your life.

A lot of people complain that personal finance is boring, but if you listen to the experiences of the people you know — parents, grandparents, relatives, family friends, etc. — you will learn a life lesson and probably hear some great stories in the process. At this stage in your life, it is all about the basics. You don’t have to start investing now!

Lastly, consider getting your feet wet in the job market with a part-time job you enjoy so you can start understanding the value of money and learning how to budget for yourself.

2. Early 20s

In your early 20s, you may be in college or just entering your first full-time job. Either way, both these paths bring a new kind of freedom. However, while it’s easy to embrace and experiment with that independence, you can’t forget that earning extra income will give you cash to spend now and to save for later.

Whether you’re in college or working after high school, don’t wait to start saving for retirement until you have access to a 401(k) plan. Consider using a saving app, or even going to your local bank to set up a savings account. Not only are you saving money early, but you’re building a financial reputation with your bank, which will come handy if you seek a loan in the future.

3. Mid- to late-20s

By now, you’re probably either a full-time member of the workforce or actively pursuing your career. This is when you want to look for jobs that value their employees enough to offer the right benefits that will help you save for retirement and other necessities.

It’s okay if your first job does not offer an employer-sponsored retirement plan – you are still investing in your career by gaining useful experience. However, you want to make sure your next company offers some kind of employer-sponsored savings plan.

Even if it seems like a flashback to a classroom, go to your company’s open enrollment meetings, which are filled with useful information.

After you start contributing to a retirement plan and building the foundation for a nest egg that will grow over time, you will start to learn about yourself and your investment style. Are you risky, conservative or somewhere in between?

4. Early 30s

As your salary and responsibilities grow, so will some of your expenses, but it’s important to increase your savings contributions with those raises and promotions. This is the right time to identify bad financial habits you may have developed and correct them before it’s too late.

If you miss out on savings opportunities now, it will cost you a lot more down the road. Everyone has retirement dreams, but they won’t become a reality without implementing a healthy savings strategy!

How FinTech is Revolutionizing the Retirement Space

Chad Parks / 10 Oct 2017 / Retirement Trends

FinTech, or financial technology, is receiving loads of attention, but there is still a great deal of confusion over what it is and what it means—especially as it applies to retirement. Let’s try to clarify this.

We’ve all been incredibly frustrated by the fallout from the financial crisis, regardless of which generation we hail from. Retirement plans and every single financial, legacy-laden organization out there still include a ton of nest egg-sucking fees hiding in their fine print. FinTech cuts against this, ushering in the age of transparency. The traditional financial institution, from banks to retirement, is being crowd-transformed – by the people – for the people.

This includes a financial humanization overhaul. A vast portion of people—women and minorities for example—will now be included in this conversation from which they’ve previously been excluded.

Questions to ask

In this respect, advisers and employers have to ask themselves what financial providers are they working with and what do they stand for? Are they part of the financial literacy revolution? Do they offer fee transparency? Or are they part of the legacy problem? Remember—employers hoping to attract and retain talent these days, must align with what candidates and employees are looking for. 401(k) and health benefits remain at the top of that list.

FinTech heralds a financial revolution that is for everyone – not just the country’s top earners. It’s cloud-based, consumer-friendly and offers education in a consumable manner. It makes an employer’s life easier, with low-cost tools that enable them to offer better products and greater resources to an audience that is starving for entrée to a financially secure future. Basically, it’s like taking all aspects of the financial realm and making them as simple and frictionless as ordering a cab from Uber.

Like Uber, FinTech offers simplicity, transparency, mobility, and portability. It embraces flat-fee, paper-free, transparent, simple, humanistic service. In other words, especially as it pertains to retirement, FinTech is here and it’s here to stay.

Download Ubiquity’s Definitive Guide to Small Business 401(k)