This Way to Retirement
By Jim Matheu, Retirement Services Manager
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In our years of helping people plan for retirement, we have never met an investor who lamented the fact that they started funding their retirement plan too early. Too often, the opposite scenario presents itself and our clients are forced to either work longer than they wish or reduce their standard of living. Fear not, it is never too late to start saving for retirement, and the Vista 401(k) Plan is here to help.
OPENING AN ACCOUNT
Opening a Vista 401(k) account is a simple process: Go to Vista401k.com and open an account online. Another option is to visit the website, select 401(k) Plan, then Forms, and download the Vista 401(k) Enrollment Form. Fax the completed form to (850) 425-8345 or mail it to: FBMC Benefits Management, P.O. Box 1878
Tallahassee, Florida 32302-1878
If you have any questions or prefer the personal touch, contact our Retirement Services Department at (866) 325-1278 and someone will walk you through the process.
CHOOSING YOUR CONTRIBUTION AND INVESTMENTS
The Vista 401(k) offers you the flexibility to determine how much you wish to contribute to your Plan per paycheck, and you have the flexibility to increase or decrease your contribution throughout the year.
Once you have determined how much you wish to contribute, it is time to choose your investment(s). The Vista 401(k) Plan offers 28 mutual funds for you to choose. The investments offer you the flexibility to move from fund to fund throughout the year as well. These funds are from well-known fund families and offer options that appeal to conservative investors, aggressive investors, and everyone in between.
The Vista 401(k) Plan also offers a series of Target Date Funds which are designed to be appropriate for an average investor who is similar to you in age. The Target Date Funds utilize what is called a “glide path,” which automatically adjusts your account to become more conservative as you approach retirement age.
If you need assistance selecting funds, please call our Retirement Services Department at (866) 325-1278 to set up a one-on-one meeting with a registered investment advisor at Cerity Partners, LLP, a Registered Investment Advisory Firm. This financial coach will help you understand your Vista 401(k) investment options, answer your questions, and help you to make sound decisions about your retirement account. This service is provided at no additional charge to the participant.
Like many things in life, consistency is important in creating a successful retirement plan. That is, do not stop contributing to the plan and avoid making premature withdrawals of funds. If you receive a raise, consider increasing your contribution to your Vista 401(k) account. If the market performs poorly, your steady investment every pay period will allow you to purchase more shares of your selected funds at a discounted price. When the market recovers, you will reap the reward of having purchased those funds at a lesser value.
Note: Each contribution is made on a pretax basis. This serves to reduce your taxable income, which results in a lower tax burden.
MONITOR YOUR INVESTMENTS
It is important that your portfolio reflect your risk tolerance. Each participant approaches risk differently. For most investors, the younger you are, the more aggressive you may want to invest because you have time on your side. Historically, the market has outperformed more conservative investments over long periods of time. As you accumulate more assets in your plan and are approaching retirement, most investors become more conservative as they have less time to make up for short term market corrections. Additionally, they have larger nest eggs which are more affected by day-to-day market volatility. Unfortunately, too often participants invest aggressively and fail to revisit their portfolio over the years. That is why you must periodically revisit your investment choices and ensure they accurately reflect your risk tolerance.
As discussed earlier, you may want to consider investing in a Target Date which will tailor your risk to that of an average investor based on your age and make adjustments over time to manage your risk.
Invest today. Select and monitor your investment choices over the years. Remain steady and do not stop investing or withdraw from your Vista 401(k) account until retirement. If you follow this straightforward approach to investing, come retirement you will reap the rewards of your diligence!
Remember, Vista 401(k) is focused, flexible and here for you. Please feel free to contact our Retirement Services Department at (866) 325-1278 for any help.