Many companies are preparing for a recession. In doing so, they're looking for ways to reduce expenses - and unfortunately, 401(k) matching is one of the first things to go. If your employer has eliminated 401(k) matching, the first step is to understand the impact of this loss to your overall savings for retirement goal. Read on to learn some of financial consultant Steve Sexton's best actionable items to consider if your 401(k) matching has been cut.
increase your spouse's 401(k) or ira contributions
If your spouse isn't maxing out their 401(k) or IRA, increase contributions or set up an IRA for him/her and contribute up to the maximum amount for the year.
set up and fund a brokerage account
If you don't already have a brokerage account, this would be a good time to open one and learn more about investing. It's OK to start small.
consider contributing to a non-deductible 401(k)
If your employer has a non-deductible 401(k), consider contributing. This will require you to pay tax on the contributions, but the growth is tax-deferred.
fund a cash value life insurance policy
Depending on your age and health, fund a cash value life insurance policy with contributions to create a tax-free income when you retire.
fund a cash value life insurance policy
Put savings aside to create a deposit for a down payment on a rental property, which can help create future income in retirement.
Want more tips to a happier relationship with money? Tune into the Saving with Steve Show with host Steve Sexton of Sexton Advisory Group.
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