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401K

What is a 401(k)?

A 401(k) is company-sponsored retirement plan that allows employees to save for retirement by taking a portion of their wages and investing them in a tax advantaged account containing various investment vehicles like stocks, bonds, mutual and index funds. The employee can typically choose to either 1) defer income taxes on the contributions and growth until withdrawn at 59 1/2 (Traditional), or 2) pay taxes and contribute the net amount which grows tax free and is withdrawn tax free at age 59 1/2 (Roth).  Employees who participate in a 401(k) choose the amount they wish to contribute and a portion is withheld from their paycheck until the total desired annual contribution is attained.

Why do I need it?

According to the Retirement Benefit Research Institute, 43% of American workers indicated they have less than $10K in retirement savings, 27% said they had less than $1,000, and only 16% said they have confidence in their ability to save enough for a comfortable retirement.  Your financial future and retirement security depends on what you save for yourself today.  This is more challenging than ever in an environment where the Social Security system is cash flow negative, federal monetary and fiscal policy is creating the potential for hyper-inflation, and entitlement programs such as Medicare and Medicaid are becoming increasingly expensive and may not be available when you need them.  A 401(K) plan allows workers to systematically save for retirement and take advantage of tax deferred or tax free compound growth over a significant period of time.

How does it work?

Your employer works with CSI to establish a 401(k) plan and then enlists the aid of retirement plan specialists and investment professionals to help guide you through the process of setting up your individual account and choosing investment vehicles that map to your personal retirement goals and objectives.  Ultimately, 401(k0) plans are self-directed, which means you have control over how you invest your contributions pursuant to the investment options available to you in your particular plan.  You will have ongoing access to these investment professionals throughout the year.

Why CSI?

CSI has partnered with premier boutique investment advisory firm Three Bell Capital LLC to provide ongoing support and investment advice to CSI 401(k) plan sponsors and participants.  The Three Bell team has extensive experience working with companies to establish a retirement plan that reflects the goals and objectives of each individual organization.  Three Bell structures and administers 401(k) plans at the corporate level, and then provides ongoing personalized individual retirement counseling, investment advice, enrollment support, and educational workshops to ensure plan participants are maximizing their 401(k) benefits.

For more information about our 401(k) plans, please visit our website and contact Jon Porter at 650-485-2338, or jon@three-bell.com.

 

 

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