New Job? Here’s What You Can Do With Your Old 401(k)

Welcome back, savvy savers!

It’s Emma, again (who’s still trying this whole saving thing)! Today we’re navigating a topic many of us will face at some point in our careers: when switching jobs, what do I do about my 401(k)? It’s an exciting (but definitely nerve-wracking) phase. Between the inevitable LinkedIn update and making the oh-so important decision that is your first-day outfit, it’s nice to know at least one major decision is in good hands. Saveday helped guide me through my options, so I’m here to pay it forward! 

A Glimpse at Your 401(k) Choices

1. Let It Be:

What it entails: Letting your cash stay put in your prior employer’s 401(k) setup. It’s the path of least resistance for many.

Upsides: The comfort of known investment avenues.

Downsides: Risk of a fragmented retirement plan over time, the potential lure of better options elsewhere, and the need to juggle plan particulars. The provider may have time limits on holding accounts for inactive employees, meaning the money could be returned to you in the form of a check if you don’t take action on it before the deadline. Then you’ll need to move the money into a new retirement account or face the possibility of penalty taxes.

2. Roll It Over:

What it entails: Funneling your former 401(k) assets into your new employer’s plan.

Upsides: Streamlined retirement funds, possibly superior investments or fewer fees.

Downsides: Potential rollover restrictions or hoops and the hustle of paperwork.

3. Cash Out:

What it entails: Withdrawing your 401(k) dollars, right here, right now.

Upsides: Immediate funds for emergencies or pivotal expenditures.

Downsides: Penalties for those below 59 ½, taxable withdrawals, and truncating your retirement growth.

4. Shift to an IRA:

What it entails: Redirecting your old 401(k) into an Individual Retirement Account.

Upsides: Augmented investment horizons, coalesced accounts, and tax-free direct rollovers.

Downsides: Greater autonomy may need more of your time, and watch out for provider fees.

Your Savvy Saver Checklist

Fees: Every 401(k) comes with a price tag. Always evaluate your option’s economic viability. Here’s where saveday’s candidness on pricing stands out.

Investment avenues: Ensure your pick resonates with your investment philosophy and risk appetite. Dive into saveday’s swift quiz to decode yours.

Taxes: Everyone’s (least) favorite subject! The timing of your 401(k) moves can influence your tax savings. Saveday has great guides for optimizing this.

In essence, those are your moves. Remember, every twist and turn on the savings route is a learning curve. With the right insights and tools, you’re not just saving; you’re building the future you deserve. 

The Saveday Edge

Job transitions are a whirlwind, even without the added 401(k) puzzle. That’s where saveday came in handy for me. Their user-centric dashboard coupled with a goldmine of informative assets demystifies the decision labyrinth. Rolling over? Consolidating? Or keen to up your knowledge quotient? Saveday’s got your six. Check out their blog to learn more.

Best of luck,

-Emma

Boosting 401(k) Participation: The Power of Automatic Enrollment for Small Businesses

Small business leaders know ensuring financial wellness is paramount. Optimal participation in 401(k) plans can be your big solution to give your employees and business the future they deserve. The answer is simpler than you think: Automatic Enrollment. 

Understanding Automatic Enrollment

Automatic Enrollment is straightforward. When new employees come on board, they are automatically integrated into the 401(k) plan. They, however, maintain the choice to opt-out if it doesn’t align with their financial plans. What seems like a small adjustment can significantly elevate participation rates.

Data Speaks Louder than Words 

  1. Increased Participation: Vanguard’s recent findings emphasize the efficacy of automatic enrollment. An impressive 90% of newly hired individuals stay committed to their employer’s plan for at least three years after their auto-enrollment.
  2. Reaching the Underrepresented: The study also underscores automatic enrollment’s role in democratizing savings. It remarkably boosts 401(k) participation rates among historically underrepresented groups, such as the young, those earning lower wages, and minority employees.
  3. Simplifying the Process: The true genius of automatic enrollment resides in its streamlined approach. It transitions those who might never contribute into proactive savers. Over time, this not only bolsters their financial standing but also fosters a sense of security and well-being. Even just $1 a day can mean thousands in the future.

Why Saveday Champions Automatic Enrollment

At the heart of saveday lies a commitment to amplifying employee savings without any added burden on employers. We’ve meticulously crafted our platform to be in perfect sync with businesses keen on embracing the future. When savings become an effortless endeavor for your employees, it directly correlates with heightened job satisfaction and unwavering loyalty.

Incorporating automatic enrollment isn’t merely a tactical move—it’s a visionary step. It empowers you to proactively confer a straightforward yet potent benefit, shaping a financially robust future for your workforce.

Behind in Your Retirement Savings? Seize the Power of Catch-Up Contributions

Hello again, savvy savers!

Emma here, and as previously teased, we’re answering the tough questions today. We’ll do it by diving into an often-overlooked strategy to supercharge your retirement savings: Catch-Up Contributions. Time to address the all too common concern, “Is it too late for me to save for retirement?” Spoiler alert: with saveday, you’re just in time!

Understanding Catch-Up Contributions:

Believe me, I get it. Life happens, and saving for retirement might have taken a backseat. Whether it was unexpected expenses, prioritizing other life goals, or simply not having enough financial education early on (there’s no judgment here!) I’ve got good news. If you’re 50 or older, you have access to the lifeline of “Catch-Up Contributions”. 

Unpacking the Benefits:

As of 2023, younger folks (like me) can contribute up to $22,500 in a given year. But…

Those aged 50 and up get to push their savings even further. They can contribute a whopping $7,500 more. If you were to start at 50 and retire at 65, it would only take investing that amount once to reach $125,317 by the time you decide to claim your nest egg at a 10% rate of return with compounding. 

Saveday – Making Your Money Work for You:

When it comes to saving, I’ve learned that your biggest asset is time. Want to see how these catch-up contributions can give you the future you deserve? Plug in your savings to saveday today. Anyone else up for celebratory beachside mimosas? 

The journey to retirement is a marathon, not a sprint. Whether you started your savings journey early or are lacing up your shoes a bit later, tools and strategies are available to ensure you finish strong. With catch-up contributions, you’re given a powerful boost to sprint toward a comfortable retirement. And that’s just the tip of the iceberg. Read on more to see how your dollar can work harder.

Saveday is here to unravel all your tough money questions, and to make it work for you.

Hungry for more saving insight? Check out the saveday blog for some more inspiration!

Until next time,

-Emma

Tackling High Turnover Rates with Saveday’s Streamlined 401(k) Solution

High turnover rates can be a relentless cycle for small businesses. With employees coming and going, it becomes a steep climb to invest in long-term benefits like 401(k) plans. But here’s an industry secret: offering 401(k) benefits can be the key to reducing high turnover rates, fostering loyalty, and boosting overall employee morale. The best part? We’ve made it hassle-free.

Let’s journey into the world of high turnover jobs and discover how saveday’s straightforward and cost-effective 401(k) solution can become the game-changer small businesses have been waiting for.

The High Turnover Puzzle

Industries plagued with high turnover rates, such as retail, hospitality, and fast food, often face the challenge of an ever-changing workforce. This flux can amplify training costs, decrease productivity, and lead to uneven customer experiences.

 A question often arises – if employees are constantly transitioning, is there value in offering long-term benefits?

The missed mark here is that a primary reason for these high turnover rates might be the absence of such benefits. In today’s world, where everyone’s seeking financial security, a 401(k) plan can be the difference between an employee choosing to stay or seeking greener pastures.

Why Saveday is the Solution to High Turnover Rates

Enter saveday. Our streamlined, fully automated 401(k) solution has been crafted with the challenges of high turnover rates in mind. How does Saveday tackle the high turnover rate dilemma?

  1. Attract and Retain Quality Talent: In a world of high turnover rates, stand out by offering a 401(k). It’s an unmistakable message to potential hires that you prioritize their future. This invaluable perk attracts the best and makes them want to stick around, effectively reducing those pesky high turnover rates.
  2. Simple and Hassle-Free: We know small businesses already have a full plate. That’s why saveday ensures the setup is as easy as 1-2-3. And once you’re onboard, our automated payroll integration and auto-enrollment ensure your plan runs smoothly with minimal oversight. You get to concentrate on what you love – growing your business.
  3. Increase Employee Satisfaction: Employees value employers who value them. Offering a future-focused benefit like a 401(k) boosts morale, leading to more dedication, better performance, and, you guessed it, lower turnover rates.
  4. Tax Incentives: If you decide to contribute to your employees’ 401(k) plans, tax deductions await you. With saveday, you get a double win: free setup and potential tax benefits.

Elevate Your Business with the Right Move


It’s time to challenge the status quo. Let’s visualize this: your business thriving, with dedicated employees, customers receiving consistent, top-notch service, and the shadow of high turnover rates becoming a distant memory. With saveday, this can be your reality.

By offering a 401(k) through saveday, you’re investing in your employees’ futures and cementing the foundations of your business. And remember, while the costs to you are negligible, the potential benefits in terms of employee retention and satisfaction are monumental.

So, if you’re tired of battling high turnover rates, maybe it’s time for a new approach. One that focuses on long-term employee benefits. Let saveday guide you toward a stable, prosperous future for both your business and your indispensable team.

The Secret To Saving More On Taxes

Welcome back, savvy savers!

It’s Emma, back at it again, and as promised, we’re about to embark on an enlightening journey into the world of tax savings associated with retirement contributions. After conquering the labyrinth of 401(k) fees last time, let’s unveil another vital topic that will help you keep even more of your hard-earned money. 

Taxes & Retirement:

Picture this: you’ve been claiming the future you deserve – contributing diligently to your 401(k). Your dream retirement is in the bag. But did you know that you can strategize your savings even further? It can be your shield against the monster under all of our beds: taxes. 

The Power of Pre-Tax Contributions:

When you funnel your hard-earned cash into a traditional 401(k), that money is plucked straight from your paycheck before taxes are taken out. The magic? This reduces your total taxable income for the year. A lower taxable income means less money going to the government now and more staying snug in your account. 

Roth 401(k): A Different Approach

Opting for a Roth 401(k) takes a different path. You’ll pay taxes upfront on your contributions. But here’s the good part: when retirement arrives and you start withdrawing, those funds are tax-free. Imagine sipping a cocktail at your beachside retirement spot, knowing the funds you’re enjoying aren’t being nibbled at by taxes.

Strategize with Saveday:

Our heroes at saveday offer tools to help you decide which approach aligns with your goals. Play around, see your savings potential, and craft your perfect strategy.

To wrap up this savings showdown: By strategizing your retirement contributions, not only are you paving the way for a luxurious retirement, but you’re also tactically minimizing the tax bite. 

Curious about more wealth-building strategies? Saveday’s blog has got you (and your wallet) covered. 

Happy saving!

-Emma

P.S. Next week, we’re taking on the world of “Catch-Up Contributions”. Ever wondered how you can boost your retirement savings if you started a bit late? Don’t miss the next post’s tips and tricks!

Tackling the Hidden Villains: Understanding 401(k) Fees

Welcome back, savvy savers!

Emma here, your young adult saving guide to all things 401(k). Today we’re taking on the sneaky realm of 401(k) fees. That’s right. It’s not just those unexpected concert ticket fees that can surprise you anymore.

We all dream of stashing away more money for a fun-filled, carefree retirement. And 401(k)s? They’re the chariots that drive us to that dream. But lurking in the shadows, there are villains known as fees, threatening to derail your journey. These seemingly small fees can, over time, devour a surprising slice of your precious savings.

Unmasking the Fee Percentages

At a glance, 401(k) fees might appear trivial. A tiny 1% here, a little 0.5% there. But let’s crunch some numbers: with a balance of $100,000 in your 401(k), a 1% annual fee snatches away $1,000 each year. Stretch that over years, and coupled with compound interest, you’re losing out on a significant sum.

Saveday to the Rescue

This is where saveday swoops in like a superhero. With its crystal-clear dashboard and transparent fee structures, understanding and minimizing your fees is a breeze. Our primary mission? Ensuring you get optimum value for every penny you invest.

Simple Steps to Save on Fees

  1. Review Regularly: A quick monthly glance at your statement can save you loads in the long run.
  2. Switch to Low-Fee Funds: Check out the range of low-fee fund options available with saveday to maximize your savings.

So, as we close the chapter on our 401(k) fee adventure, here’s the moral of the story: arm yourself with knowledge. By understanding these fees, you’re in the driver’s seat, ensuring more money remains where it should – with you!

Want more finance hacks? Dive deep into saveday’s treasure chest of resources. And always remember, every penny saved today is a step closer to your dreamy, beachside retirement. 

Keep saving!

-Emma

P.S. Gear up for my next post where we dive into the world of tax savings with retirement contributions. Trust me, you won’t want to miss this!

Saveday’s Fiduciary Responsibility: Safeguarding Your Retirement Investments

At saveday, we take our fiduciary responsibility seriously. When you entrust your retirement savings to us, we prioritize transparency, security, and expertise. Our goal is to provide you with a seamless and reliable investment experience while meeting and exceeding the highest regulatory standards. Let’s explore how we fulfill our fiduciary duty to protect your retirement investments:

Highly Regulated and Transparent:

We’ve integrated the advisory, broker/dealer, and administrative functions into one comprehensive product. This approach allows us to operate under the watchful eye of regulatory bodies such as FINRA, SEC, ERISA, IRS, and DOL. Transparency is a key principle, and you can easily find information about our advisory business and leadership on the SEC’s official website (sec.gov). Likewise, our broker/dealer history and disclosures are accessible on finra.org.

Clearing House Relationship:

To enhance security, saveday doesn’t hold custody of your assets. Instead, we partner with APEX Clearing, a trusted asset custodian serving millions of users and managing billions of dollars in assets. This seamless integration ensures efficient financial operations and provides peace of mind. APEX also serves as a clearing house for other leading FinTech institutions like Stash, SoFi, and FirstTrade.

Asset Security:

When you invest with saveday, your accounts are protected through our custodian clearing company, APEX. We offer SIPC insurance coverage of up to $500,000 per account, along with additional third-party insurance of $1,000,000 per account. Rest assured that your hard-earned savings are in safe hands.

Data Security:

We prioritize the security of your data in line with FINRA and SEC guidance. Our robust data security protocols include annual penetration testing and data encryption. By handling only ACHs from trusted payroll providers and adhering to SOC 2 protocols for asset delivery, we minimize the risk of fraud and ensure the confidentiality of your information.

Diversified Portfolios & Brand Name ETFs:

We follow Modern Portfolio Theory (MPT), a Nobel Prize-winning investment approach. Our diversified portfolios consist of low-cost Exchange-Traded Funds (ETFs) covering major asset classes like US Stocks, International Stocks, US Bonds, International Bonds, and US TIPS. These ETFs, managed by industry leaders, have minimal tracking errors and high liquidity. Our proactive portfolio monitoring and rebalancing strategies align with your long-term goals.

Saveday’s Regulatory Principal:

Barry Mione, our Regulatory Principal, brings over 25 years of experience in creating financially efficient products. With his background as the founder of DLJdirect (now E*Trade) and his expertise gained at Credit Suisse, BMO, and BNY Mellon, Barry ensures that saveday adheres to the highest regulatory standards. You can trust that your retirement savings are in capable hands.

At saveday, safeguarding your retirement investments is our top priority. We strive to provide you with a secure, transparent, and expertly managed investment experience. With our highly regulated platform, trusted clearing house relationship, asset and data security measures, diversified portfolios, and the guidance of our experienced Regulatory Principal, you can have peace of mind knowing that saveday is dedicated to protecting your financial future. Trust us to fulfill our fiduciary duty and help you achieve your retirement goals.

Practical Money Saving Strategies for Young Adults: An Easy Guide to Boosting Your Savings and Planning for Retirement

Hey there, fellow financial enthusiasts!

Your guide, Emma, is back again with more adventures into the world of savings. Today, we’re veering off from the usual explanations of complicated investment theory or finance jargon. Instead, we’re focusing on a subject that resonates with everyone: saving money!

You see, saving is the crucial cornerstone of any successful financial plan, particularly when it comes to retirement. However, for many of us (myself included), it seems to be the most challenging aspect. When you’re young and building your financial foundations, saving can often seem like a formidable mountain to climb. How can we potentially put aside enough for our golden years when we’re grappling with student loans, rent, and striking that delicate balance between treating ourselves and extravagant spending?

Let’s simplify the process. I’ve compiled a list of fail-safe tips that have significantly helped me save more of my hard-earned money. And the best part? They are all easy enough for anyone to apply.

Set Clear Goals

Vague statements about wanting to save have never quite done it for me. Instead, define your goals. What are you saving for? How much should you save each day, week, month, or year to attain this? Platforms like saveday have been incredibly beneficial for me in this regard. Their visual aids and automatic saving formulas have kept me on track for the relaxed, sun-soaked retirement I aspire to.

Create a Practical Budget

Yes, the infamous ‘B-word’ can be daunting, but believe me, having a budget is indispensable. My budget is divided into categories that go beyond the standard “rent,” “utilities,” or “groceries.” I incorporate categories like “gifts” and “eating out.” Budgeting doesn’t necessarily mean cutting out life’s little luxuries. For me, it signifies enjoying life, secure in the knowledge that I am still sticking to my financial goals.

Automate Your Savings

The power of automated savings lies in the old adage, “out of sight, out of mind.” By setting up automatic transfers to your savings account or retirement fund with services like saveday, you can set your money to work for you and eliminate saving as a chore.

Evaluate Your Subscriptions

Recurring expenses are killer. No one has the time to run a full cost-benefit analysis to see if they’re getting the full utility out of their Netflix account but making it a monthly habit to check recurring expenses in your bank account is never a bad call. 

Cultivate Your Emergency Fund

Grow Your Emergency Fund: Having a cushion for unexpected expenses (hello, flat tire!) prevents you from digging into your long-term savings. Aim for three to six month’s worth of living expenses. But remember. Even a small emergency fund is better than none at all!

So there you have it, my top strategies for saving money as a young adult. Remember, the journey of a thousand dollars begins with a single step– or in our case, a single dollar saved. Consider implementing just one tip from the advice above. Best of luck!

Ready for more saving-padding insights? The saveday blog is brimming with valuable advice and effective strategies to help bolster your bank balance. Be sure to revisit my previous post on the benefits of starting your 401(k) journey early– it’s one of the best financial moves you can make!

Next up, we’re pulling back the curtain on the often overlooked aspect of 401(k)s- fees. They’re those pesky little numbers that nibble away your retirement savings. I’ll be here to tell you why. Stay tuned!

Happy saving!

-Emma

ERISA Fidelity Bonds and the 401(k): Eligibility, Requirements, and You

If you’re an HR administrator, Benefits Coordinator, or small business owner, you might be a 401(k) plan sponsor. If so, you may have heard about the ERISA Fidelity bond. This article will help you understand what it is, who it covers, and why it’s crucial for Department of Labor compliance.

What is an ERISA Fidelity bond?

ERISA or the Employee Retirement Income Security Act, provides guidelines for private sector employee benefit plans. This includes 401(k)s and other defined contribution plans. ERISA also covers those who manage and invest plan assets.

In 1974, the U.S. Department of Labor introduced ERISA. Why? To address public worries about the mishandling of private pension funds and other employee benefit plans.

One requirement of ERISA stands out. Those who handle plan funds and other assets must have a fidelity bond. This bond helps protect the plan from fraud-induced losses.

Simply put, an ERISA Fidelity Bond is like insurance. It protects workers’ retirement savings from fraud or dishonest acts.

Who needs to be bonded?

According to Department of Labor (DOL) regulations, if you handle plan funds or assets, you must be bonded.

How much coverage is necessary?

You need Fidelity Bond coverage equal to at least 10% of plan assets. However, the bond amount can’t be less than $1,000. And the Department won’t require a bond of more than $500,000. Or $1,000,000 for plans with employer securities. These amounts apply to each plan listed on a bond.

How can I purchase a bond?

Bonds can be procured from a surety or reinsurer listed on the Bureau of the Fiscal Service’s Certified Companies roster.

Saveday has teamed up with Colonial Surety Company to help clients secure the correct bonding. If you need to purchase an ERISA Fidelity Bond for your plan, you can click here to conveniently buy a bond today.*

For further details on ERISA Fidelity Bonds, you can access the “Fiduciary Responsibilities” PDF via the Department of Labor here.

*saveday is an affiliate of Colonial and earns commission on referrals.

How Saveday’s Modern Portfolio Theory Approach Works for You (and Your Wallet)

Welcome back, savvy savers!

Emma here again, your trusty guide to the world of 401(k)s. Believe me, if I can navigate these financial waters, anyone can! Today we’re venturing into the exciting realm of Modern Portfolio Theory (MPT). If you, like me, have been caught in the Google rabbithole of investment strategies, or if you’ve been offered a 401(k) by your employer, chances are you’ve stumbled upon MPT. 

Maybe you’ve even been just as intimidated as I was. Don’t worry, I’m here to demystify Modern Portfolio Theory for the both of us. Get ready to call yourself an expert!

What is Modern Portfolio Theory?

Harry Markowitz, a groundbreaking economist, discovered the formula behind Modern Portfolio Theory in 1952. It revolutionized investing and even bagged a Nobel Prize! The central idea of MPT revolves around the belief that considering the expected risk and return of a single investment isn’t enough. Instead, it encourages investors to evaluate the risk and return of their entire portfolio.

How does Modern Portfolio Theory Work?

Let’s decode this a bit: MPT operates on a key assumption that investors are risk-averse, meaning they prefer a lower-risk portfolio to a high-risk one if the level of return is the same. As someone who treasures her hard-earned money, I couldn’t agree more with this philosophy. This is where the concept of diversification enters the scene. MPT proposes that by owning a variety of assets with different risk levels, your portfolio can potentially achieve higher expected returns for a specific level of risk.

Minimum Risk with Greater Profit

If this sounds complex, let’s simplify it with an analogy. Picture you’re at a horse race, ready to place a bet. Instead of putting all your money on one horse, you decide to spread your bets across several runners. This way, if one horse doesn’t perform as expected, others might still deliver a win, thereby minimizing your losses. That, in a nutshell, is diversification, an integral part of MPT.

That’s where saveday, my chosen 401(k) platform, comes in. Saveday employs Modern Portfolio Theory to tailor the perfect investment mix based on your preferred risk level. The best part? You retain full control. Saveday strategically spreads your investments across various asset classes such as stocks, bonds, and other securities, aiming for stable, long-term returns.

So, not only does diversification make your portfolio more resilient, but it also allows you to potentially enjoy higher returns. That’s the beauty of Modern Portfolio Theory, and why platforms like saveday use it as their compass in the vast ocean of investments.

In the end, understanding Modern Portfolio Theory equips us with the knowledge to chase the financial future we deserve. Here’s to us, navigating the seas of savings, investments, and a prosperous retirement!

Ready for more savings? The saveday blog has tons of tips and tricks to stuff your wallet. And don’t forget to check out my last post on why claiming your 401(k) young is the best thing you can do! Up next, we’ll talk about lifestyle changes to boost your savings (without cutting the simple pleasures)!

Stay savvy,

Emma