Four Steps to Enroll
1. Determine How Much You Want to Contribute: In 2012, the IRS allows you to contribute up to $17,000. If you are over the age of 50, you can contribute an additional $5,500. Sometimes your employer will cap how much you can put in, so check with them just to be sure of your limits. To learn more about how you can boost your retirement savings rate, click here.
2. Decide How Much Investment Risk is Appropriate: You may be a conservative investor, an aggressive investor, or somewhere in between. Before you can choose your investments, you need to know your risk tolerance. Access a printable risk tolerance questionnaire.
3. Select Your Investments: Your employer-sponsored retirement plan should give you the opportunity to build a diversified portfolio. Many employers offer simple "do it for me"-type investment options, or they may give you the opportunity to select from a broad array of options. Either way, you need to be sure you are comfortable with the investments you choose while taking into consideration your age, tolerance for risk, time horizon, investment style, and goals. If you are an employee of a retirement plan managed by Grinkmeyer and Leonard Wealth Management, we may be able to offer you advice specific to your situation. Learn more.
4. Complete an Enrollment Form: Your employer can offer you more details about the enrollment process. Keep in mind that you may be limited by your plan's eligibility provisions and entry dates. Contact your employer to learn more.