Planning to retire with a fidelity 401k Plan?

With fast rising inflation rates many of the younger generation are already planning their pensions – and for those that have left it too late, the fidelity 401k plan has proven to be one of the most popular options

How do I start a Fidelity 401k Retirement Plan?

Ask your company’s Human Resources Department or consult your company documents to see whether there is an option to sign up to a 401 (k) retirement plan.

It’s very easy because nearly every workplace in the USA has the option for you to request that a percentage of your wages are put towards your retirement plan. You do this by enrolling in the 401k and 403b or any other savings plan that your workplace has available for pensions and saving plans.

5 Advantages of a 401 (k) Retirement Plan

  • The money is deducted from your pay check before tax (Tax Free)
  • Automatic deductions (Hassle Free)
  • Your employer should also contribute to this plan (Matching Contributions)
  • Long Term Financial Savings Plan (Financial Security)
  • Change the plan as your 401k plan matures (Flexible Savings Plan)

The Earlier You Start a 401k Fidelity Savings Plan, the Better

 Look at the chart we have created below – you can see that starting at the age of 40 leaves you with a little over $500,000 when you retire depending on your plan. That’s $25,000 per year over 20 years – of course you will earn some more interest on this, but then when you begin to think about inflation, then you can imagine a $25,000 a year pension plan is not great.

Fidelity Saving Chart
Retirement Age Savings


What Happens if I am Already 40 Years Old?

It is never too late to start saving or to enrol in a Fidelity 401k plan. For everyone out there, no matter what your age, it is never too late to start contributing to a pension fund.

How much should I save?

Only save what you can realistically afford. We cannot stress enough how important this is. It is only human nature for some of to be rather overzealous with our ambitious savings plans; however, you still need to enjoy the now in life.

If you are not sure how much you need to save, then maybe consult with a financial advisor. Your financial advisor will be able to break down your current monetary situation and give you tips on where and how you can save extra cash, where you are going wrong with your current finances and usually come up with a better deal than some of your current financial facilities are offering.

  • Better mortgage deals
  • Bank accounts with better deals
  • Improved insurance quotes

Despite many financial advisors earning commission from their suggested financial packages, they are in fact also experts in the field of finance. What they are offering is a fair deal for all. They get commission by recommending you to sign up to financial tools that will save you money; while the financial advisor is paid for their skill and knowledge of the financial market that has assisted you and your family in saving extra cash that can be used for your fidelity 401k plan.

What Happens if I am in Debt?

Understandably there are tens of thousands of US citizens struggling with debt right now. This is another good reason for consulting a financial advisor. There could be special circumstances that could help you reduce your interest or maybe with the extra savings coming courtesy of your financial advisor’s advice will help you pay debt off quicker and get on the 401k fidelity ladder quicker.

What are the Limits?

You can contribute as much as you wish, but not all of this will be tax free. You will need to check the current IRS standards – we haven’t listed an amount here because the non-taxable amount changes from year to year.

If you are over 50 years old and you have only just decided to start a 401k fidelity retirement plan, then you may also want to check whether you get any additional tax benefits.

Increasing your Pension Plan Each Year by 1%

If your workplace offers a pay rise at the end of each year’s service, you should compare this to current inflation rates, or just take the jump and increase your contributions by 1% each year.

Where can I find out more useful advice about 401(k) retirement plans?

Keep looking through our website. We have plenty of blogs titles so you get the answers to your questions. If we don’t have the answer here, then you can always email us. Good luck, and happy hunting.

401k Fidelity retirement Plan