Dollar Wise Podcast

401(k) Fundamentals: What You Need to Know

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Description

Welcome back to the Dollar Wise Podcast. In this episode, Brett Herron, CFP® is joined by Valentina Lucchetti-Gallo, HFM’s Marketing & Events Coordinator, for a candid Q&A on one of the most frequently asked-about financial tools: the 401(k). Brett addresses common questions about contributions, taxes, investment options, retirement timelines, and employer matches. Whether you're just starting your career or eyeing retirement, this episode offers practical answers to help you better understand and manage your 401(k) plan.

Tune into this episode to also learn:

● How Roth vs. Traditional 401(k) contributions impact your taxes

● The importance of risk tolerance and how it guides investment selection

● What actually happens to your 401(k) when you retire

● How employer matches and vesting schedules work

What we discussed

● [00:01:27] What a 401(k) is and why it’s a foundational retirement savings tool

● [00:02:17] How much you should contribute and how your goals affect that number

● [00:03:22] Can you access your 401(k) money before retirement—and should you?

● [00:05:25] Roth vs. Pre-tax contributions and their long-term tax implications

● [00:08:47] Choosing investments based on risk tolerance and age

● [00:12:14] What happens if the market crashes when you’re ready to retire

● [00:14:24] How to know if you have enough money to retire

● [00:17:14] What physically happens to your 401(k) when you retire

● [00:19:26] Rolling over an old 401(k) into a new plan or IRA

● [00:20:43] Understanding employer matches and vesting schedules

3 Things To Remember

  1. Your 401(k) is just one piece of your financial plan—contribution decisions should be based on your individual goals.
  2. Pre-tax and Roth 401(k) contributions offer different tax advantages depending on when you pay taxes—know which is best for you.
  3. Understand your employer’s vesting schedule to ensure you don’t leave potential retirement savings on the table.

Useful Links

Connect with Brett Herron: bherron@hfmadvisors.com | LinkedIn

Connect with Valentina Lucchetti-Gallo: vlucchetti@hfmadvisors.com | LinkedIn

Like what you’ve heard…

  1. Learn more about HFM HERE
  2. Schedule time to speak with us HERE

Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

HFM Investment Advisors, LLC is a...