Investing through workplace retirement plans
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SPEAKER 1: Retirement is the ultimate financial goal for most of us. A simple rule is that the more you save today, the more likely you are to achieve the financial security you want in retirement. A workplace retirement savings plan is often the centerpiece of retirement saving. And it offers some important advantages. 
Although your focus is on the future, you'll see immediate tax benefits. Contributions come out of your paycheck on a pre-tax basis, reducing your current taxable income and your tax bill. Your earnings grow on a tax-deferred basis, which allows your savings to build more quickly. Keep in mind that you'll be taxed on any withdrawals and pay additional tax penalties for withdrawals before age 59 and 1/2. 
Many employers offer to match at least a portion of your workplace plan contributions. For example, if you set aside 3% of your income and your employer offers to match that amount, you effectively double the value of your contribution. It's important to put your retirement savings to work by investing in a way that fits your time horizon and risk tolerance level. One option to consider is a target date fund that's invested for a specific amount of time you choose, such as your anticipated retirement date. Your asset allocation will automatically rebalance to reduce risk as you near your target date. 
There are limits on how much you can contribute to a workplace retirement account each year. The maximum contribution amount is even higher for those age 50 or older. A good rule of thumb is to save 10% to 15% of your pre-tax income for retirement. 
Required Minimum Distributions, or RMDs, must be taken annually when you reach age 73. If you're still working and not a 5% or more owner in the business sponsoring your retirement plan, you can delay your RMD until April 1 of the year after you retire. 
If you change jobs and have a 401(k) or 403(b), don't forget to explore the many rollover options available to you. These include transferring funds to your new employer's workplace savings plan or rolling them into your own individual retirement account, or IRA. An IRA can offer more investment flexibility while retaining the same tax deferral benefits. 
An employer-sponsored retirement plan can serve as a cornerstone of your retirement savings strategy. Consider participating in, increasing your contributions to your employer sponsored plan, or setting up a plan for your business today to get you closer to the retirement lifestyle you want. 
[UPBEAT MUSIC]