Deferred Comp- Start Contributing Today!

by Anne Strine, Relationship Manager- Empower Retirement

One year can make a difference!

Waiting just one year to start saving and investing in deferred comp may cost you more than you realize. The sooner you start to save and invest, the sooner your money can start working for you. Having a VRS retirement benefit is an important step in the right direction, but that benefit on its own may not be enough for you to retire. So, get started contributing to deferred comp now!

Even investing a small amount now can really add up over time. What’s most important is to just get started. Then, if you increase your contribution on a regular basis, the impact to your paycheck will not seem too great. The bottom line, saving today will definitely help you down the road when you retire.

There are also tax benefits for participating in this 457-deferred compensation plan. You can contribute pre-tax money to decrease your overall tax burden now. Or, you also have the option of contributing to a post-tax ROTH account. Why is ROTH a great option? You will pay taxes based on your current tax rate now and, if your tax bracket is higher later in life, you avoid paying higher taxes when you withdraw funds in retirement!

It’s too late if you wait until you think you are ready to retire. Pick the age you want to stop working and meet with our 457-deferred compensation plan advisor to set your goals. Your journey to retirement savings needs to start today!