401(k) plans are a quite popular tool used to put aside money for retirement. They are traditionally tax-free and have high annual contribution limits. This enables employees to set aside money that will accrue interest and compound over time until they can withdraw
Fremont, CA: The coronavirus pandemic has compelled everyone to review their financial approaches. Times like this call for a business leader to ensure employee financial wellness in the current challenging situation as well as in the future when conditions are more stabilized.
Let us look at how employees can build financial security in times of uncertainty:
Pay-Off Debt
Not all kinds of debts can be avoided. But, an important step towards building financial security is to pay off any high-interest consumer debt first. Debts like educational loans and home loans are beneficial in the long run. One can save money on their interest payments by avoiding high-interest debts.
[vendor_logo_first]Start 401(k) Contribution
401(k) plans are a quite popular tool used to put aside money for retirement. They are traditionally tax-free and have high annual contribution limits. This enables employees to set aside money that will accrue interest and compound over time until they can withdraw. If employees contribute from each paycheck, it can have a huge impact over many years.
Build an Emergency Fund
Emergencies can pop up anytime. Hence, building an emergency fund for unexpected costs is imperative to overall financial wellness. Individuals need to have at least six months of income in order to live comfortably, regardless of unexpected events. This amount needs to cover up everyday needs and expenses, such as monthly bills, including mortgage payments or rent.
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