Happy Quitter’s Day!
Well, that didn’t take long. When you rolled out of bed on January 1st, laced up your jogging shoes and strapped on your reflective vest, you were confident you would be on your way to the ‘new you’. You couldn’t wait to try on that outfit you looked so good in ten years ago. But this morning, as you contemplate your jelly doughnut and Starbucks Frappuccino breakfast, your 2024 life has returned. For all of us who know we will eventually fail despite our best intentions, there is a reason to celebrate. The second Friday of January is ‘Quitter’s Day” and was created to celebrate our lack of willpower. By Quitter’s Day, most of us have picked up that old habit we thought we might break.
But what if we made the second Saturday of January “Keeper’s Day”? What if we could, in one day, without requiring any willpower, keep a New Year’s resolution for the whole year! Toss a throw rug over your brand-new Peloton, gift your weight set to your high school neighbor kid, sit down at your computer and let’s get this done!
What resolutions am I suggesting we can keep in a day? We all know that we should be saving more in our 401(k), we all know we should have a well-diversified mix of funds in our retirement plan. We know we need to regularly rebalance our accounts, so our portfolio doesn’t drift. And we need to become more conservative as we approach retirement. The problem is, who has time to think about their retirement account?
Enter automatic features. Your retirement plan may have automatic features like auto-enrolment, auto-rebalance, auto-escalation, and target retirement date funds. These features are designed to help you do what you know you should be doing even if you don’t have the willpower to make yourself do it. So, let’s take advantage of these features.
Log into your account online. I’ll wait here while you reset the password you haven’t used since you enrolled. . . Okay, now find and click on the link to change your contribution amount. Hopefully you are already capturing your match, but in case you’re not, increase your contribution by one percent. (You probably won’t notice the difference in take home pay.) Then, before you click “submit”, select an automatic increase of 1% each year. Now click submit and make sure you get a confirmation number or email. There! You just kept a New Year’s resolution for each of the next several years. Each year you will increase your contribution by one percent; no willpower required. I know, we should celebrate with some ice cream, but not yet!
While you are online, find the link to the investment change. It’s the one that takes you to the page that has a bunch of Greek and numbers on it. (Call your Francis planner if you need an interpreter.) Now we must do some math. Open the calculator app on your phone. Add the number 65 to your birth year. Find a mutual fund in your list that has a number in its name that is closest to the number on your phone. That is a target retirement date fund designed just for you. This fund is invested in a well-diversified mix of mutual funds that is rebalanced on an ongoing basis and becomes more conservative as you approach retirement. Now, type 100 into the percentage box next to that fund. Before you hit submit, look for the radial button that allows you to change both your existing balances and future contributions. There, now submit. Break out the Oreos, you just kept a future annual New Year’s resolution each year until retirement!
Finally, while you are there, click on the personal preferences link and let’s take a look at your beneficiary designation. Let’s finally get them set. I’ll wait while you text your kids for their Social Security number and check the calendar for your spouse’s birthday – our little secret. Click submit and voilà, you are done.
Now before you log off your computer, put a repeated entry on your calendar to reach out to your financial planner once each year to check to see if there is anything else you should be doing.
There, now you are done! Congratulations, you are a “Keeper”. Crack open your favorite preservative laden snack, log onto your eBay account, and start selling all that lightly used exercise equipment!
Did You Know?
Your employer sponsors this financial wellness benefit from Francis LLC. The benefit connects you with down-to-earth financial planners who educate and advise on any money matters…without the sales pitch. We are exclusively engaged by employers like yours and have no investment products to sell, so you can feel confident that you will always receive objective advice.
Your financial planner will help you set priorities and achieve your money goals, without judgment or financial jargon. Know that all discussions are kept strictly confidential. This service is offered as an employee benefit with no per-session co-pays, so you can meet with a financial planner as often as you wish. Services are paid by your retirement plan or your employer.
Connecting with a financial planner is easy! Here’s how:
- Visit FrancisWay.com > Services > Participant Portal
- Call (866) 232-6457
Download the free mobile app (Search for Francis LLC)
