401(k) Strategies That Work

Whether you've been waiting for the right time to enroll or are not sure how much to contribute to your 401(k), you're in good company. Here are four scenarios and strategies that may help you.

Find the one that’s best for you

However you define it, financial independence probably means having more money saved than you
have today. And your first, best step to achieving it is to start saving in your 401(k) account.

Enrolling in the 401(k) plan is easy and only takes five steps:
  1. Select how much of your paycheck you want to save (your contribution rate). Check out Megan’s approach
  2. Select the funds to invest in. You can always choose the default investment and change it at any time. Look at Paula’s decision.
  3. List your beneficiaries. You can do this later, too - just don’t forget.
  4. Verify your elections.
  5. Confirm and done.

Your 401(k) contributions will start within one to two paychecks. If you are eligible for matching contributions, those will also start. If you have questions or want help enrolling, the Insperity 401(k) Contact Center at 888-401-5273 can help.

Jason | Web Developer
$31,355 in his 401(k)
Why he enrolled after four years

Wondering if you have a 401(k) match?
The Insperity 401(k) Contact Center can help.


An employer match is free money

When Jason started his current job, he was focused on his fiancée and upcoming wedding. He figured saving through a 401(k) was something he could start later. The birth of his first child, however, made him start thinking about the future. When he learned that he was eligible to receive a match through the 401(k), Jason knew he was leaving money on the table, and he enrolled in the plan that night.

Contribution rate: 6% each paycheck (his employer’s match limit)

Investment approach: To get started quickly, Jason invested in the default investment fund, and decided to learn about the other investment options before making changes later.

A good tip: Jason made a smart move by contributing up to the limit of his employer’s match in order to get all the additional dollars available to him.

Log in to Insperity Premier™ to enroll.

Megan | Marketing Specialist
$5,355 in her 401(k)
Enrolling in her first 401(k)

Questions about the default fund?
The Insperity 401(k) Contact Center can help.


Small contributions still pay off big

Megan felt like retirement was too far away to worry about, but a favorite uncle always told her to start saving early to retire early like he had. And she did like the idea of financial independence. She enrolled in her company’s 401(k) as soon as she was eligible, even though she had a new car loan, college loans and other expenses. She couldn’t afford to save much right now, but she knew that her $50 monthly contributions would grow over time.

Contribution rate: 2% each paycheck – hardly noticeable in her budget

Investment approach: Having never invested before, Megan got started by selecting the default investment fund.

A good tip: Megan was smart to set a comfortable contribution rate to get started on saving as soon as she joined the workforce. By starting in her 20s, her small contribution has the opportunity to grow more than a larger contribution started later.

Log in to Insperity Premier™ to enroll.

Steve | Operations Manager
$122,340 in his 401(k)
Rolling over another 401(k)

Questions about rollovers?
The Insperity 401(k) Contact Center can help.


Don’t let a change in jobs stop your savings

Steve has been saving through a 401(k) for many years. When he changed jobs, a 401(k) was an important benefit to him. He liked being able to enroll in the plan right away, so the growth of his nest egg wasn’t interrupted. And to make things easier to manage, he rolled over the money in his previous 401(k) to his new account.

Contribution rate: 8% each paycheck with an eventual goal of 10%

Investment approach: Steve invested in the default investment fund, giving himself time to use the plan's online tools to develop an investment portfolio.

A good tip: Steve wanted to make sure there was no pause in his 401(k) savings, so he enrolled in the plan as soon as he was eligible.

Log in to Insperity Premier™ to enroll.

Paula | Administrative Assistant
$9,185 in her 401(k)
She started saving later in life

Questions about taking a loan?
The Insperity 401(k) Contact Center can help.


It’s never too late to begin

Paula re-entered the workforce when her children reached high school age. She looked specifically for an employer offering a 401(k) benefit, knowing it would help her save on taxes while she saved money for the future. Three years later, she was pleasantly surprised to learn that she could borrow from her 401(k) savings to help her college-bound daughter with tuition and books.

Contribution rate: 3% each paycheck

Investment approach: After initially investing in the default investment fund, she was glad to see the plan's investment options provided many different strategies to select.

A good tip: Paula learned that while she had limited access to the money in her 401(k), which is intended for retirement, she has options to access it when she really needs it.

Log in to Insperity Premier™ to enroll.