Episode 29 - David Elder

Key Takeaways
- Defined Contribution Plan - A retirement plan in which an employee contributes money and their employer typically makes a matching contribution
  - 401(k) - For employees of public corporations
  - 403(b) - For employees of schools, healthcare entities and non-profits
  - 457 - For public sector employees
  - Thrift Savings Plan - For federal employees
  - SIMPLE - For employees and employers of businesses with 100 or fewer employees
    - Defined Contribution Plans are the most widely-used type of employer-sponsored retirement benefit plan in the US
    - Employees invest in these plans to supplement their Social Security benefits since Social Security alone is typically not enough to pay for the average retirement.
    - These plans have grown in importance since Defined Benefit Pension Plans, where the employer is responsible for all planning and investment risk, have become less common.
- Individual Retirement Account (IRA) A type of tax-deferred or tax free retirement account that individuals can open at many financial institutions.
- Questions to consider when starting/evaluating retirement savings:
  - Defined Contribution or IRA?
  - Contribute before or after tax (ROTH)?
  - What’s your investment time horizon and spending goals?
  - What’s your risk tolerance?
  - Is your asset allocation aligned with your goals?
  - If you have multiple accounts, are you optimized across them?
  - Is your retirement account coordinated with your spouse’s plan?
- Factors to consider when selecting a Financial Planner for Retirement
  - Professional credentials (CFP?)
  - Experience
  - Give yourself the proper time to evaluate
    - What they tell you
    - The questions they ask
    - How well they’re listening to you
    - Have a honest discussion about the pros and cons of working together

Ways to contact/follow
- Meritfa.com
- Delder@meritfa.com

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