Labor Day gives us an opportunity to recognize the hard work that keeps our businesses, communities, and economy moving. But now that the long weekend is behind us and we head into the fall, there’s another part of work worth thinking about: Are you getting the most out of the benefits you’ve earned?
For many people, workplace benefits are something they select when they start a job and rarely look at again. Retirement plans, insurance coverage, and other benefits can sit on autopilot for years even as your career, family, income, and financial goals change.
Fall is a great time to give them a review.
What Happened to Your Old Retirement Plans?
If you've changed jobs during your career, you may still have a 401(k), 403(b), or other retirement account sitting with a former employer.
It happens all the time. You leave a job, start the next chapter of your career, and the old retirement plan gets pushed to the bottom of the to-do list.
Take a few minutes to make an inventory of your retirement accounts. Ask yourself:
- Do I have retirement accounts from previous employers?
- Do I know how those accounts are invested?
- What am I paying in fees?
- Are my beneficiaries current?
- Does it make sense to leave the money where it is, move it to my current employer's plan, or consider an IRA?
- How do all of these accounts fit into my overall retirement strategy?
Consolidating isn't automatically the right answer. The important thing is knowing what you own and making an informed decision about it.
Review Your Current Workplace Investments
Your current retirement plan deserves attention, too.
You may have selected investments years ago based on your circumstances at the time. Since then, markets have changed and, more importantly, your life may have changed.
Review your contribution rate, investment allocation, risk level, and employer match. If your employer offers a match, understand how it works and whether you're taking full advantage of it.
Your workplace retirement plan shouldn't operate in isolation. Ideally, it should complement your IRAs, brokerage accounts, Social Security strategy, pensions, and other assets as part of one coordinated financial plan.
Don't Forget About Insurance
Your benefits package is about more than retirement.
Review your employer-provided life insurance, disability coverage, health benefits, and any supplemental insurance you've elected.
Think about what's changed over the past year. Did you get married? Have a child? Buy a house? Receive a promotion? Take on additional debt? Are your beneficiaries still correct?
Employer coverage can be an important part of your financial safety net, but it's worth understanding exactly what you have, how much coverage it provides, and what happens to that coverage if you leave your employer.
And Then There's Open Enrollment...
Open enrollment season will be here before we know it.
That's when many employees will have an opportunity to make important decisions about health insurance, HSAs, FSAs, life insurance, disability coverage, and other workplace benefits.
We'll tackle open enrollment and what you should be looking for in an upcoming blog.
For now, use the weeks after Labor Day to get organized. Find those old retirement statements, log into your current workplace plan, review your investments and insurance, and make a list of questions.
Your employee benefits are part of your compensation. You've worked hard to earn them. Make sure they're working hard for you.
At Northern Peak Financial, we help clients look beyond individual accounts and benefits and understand how everything works together as part of their overall financial plan.
If you've changed jobs, have old retirement accounts, or simply haven't reviewed your workplace benefits in a while, fall is a great time to have that conversation.
Ready for a financial checkup? Schedule a time to meet and let's review your financial plan, retirement accounts, workplace investments, and insurance coverage together.