By Steve Seals
As a Baptist Health employee, you have access to valuable Baptist Health retirement options that can play a significant role in making the most of your golden years. Our retirement planning services at Seals Financial Planning & Investments are specifically designed to work with you to build a stable financial future.
I want to help you navigate the different Baptist Health retirement options available to you and make informed decisions to optimize their potential. So in the following article I explore contribution strategies, tax planning, and investment choices to get you on the right track to a worry-free and fulfilling retirement.
Let’s dig into the secrets to getting the most out of your Baptist Health retirement options!
Baptist Health Contribution Matching
The substantial matching program offered by Baptist Health can greatly increase your retirement savings. Essentially, the matching contributions act just like free money that has been added to your retirement account. Up to a predetermined amount, the plan typically matches a percentage of your contributions.
For example, let’s say you contribute 6% of your paycheck to your retirement savings. If Baptist Health’s match is 50%, that means they’ll contribute an additional 3%. So, effectively, their match increases your contribution to 9%!
To get the most out of Baptist Health’s retirement matching program, it’s essential to contribute at least up to the matching limit. To get the precise match percentage and limit, review the specifics of your plan and the available contribution options.
If it’s not possible to contribute the largest amount at first, we often suggest to our clients to consider progressively increasing contributions until they reach the match limit. Setting up automated payments is a great way to automatically capitalize from this “free money” opportunity.
Roth Contributions
Roth 403(b) options are accessible through Baptist Health. Roth 403(b) contributions can be made with after-tax dollars. That means you won’t get a tax deduction on your contributions today. However, an even greater feature is that eligible withdrawals can be made tax-free throughout retirement.
This may be appealing if you anticipate retiring in a lower tax bracket or if you want more flexibility accessing your contributions without incurring a penalty after a certain amount of time.
Keep in mind that seeking professional guidance on Roth contributions can be extremely helpful in making informed decisions about budgeting for your retirement savings.
Fidelity Brokerage Investments
Baptist Health’s retirement plan frequently provides access to Fidelity BrokerageLink. This makes it possible to choose from a greater variety of investment possibilities outside of the main plan choices.
You can think of Fidelity BrokerageLink as having your own personal brokerage account inside your retirement plan. As a result, you have more control over your investing plan and can select from a wide range of Fidelity’s mutual funds, equities, and exchange-traded funds (ETFs).
But it’s crucial to keep in mind that increasing authority comes with more responsibilities. Unlike the main plan options, Fidelity BrokerageLink investments are not pre-selected or screened by Baptist Health.
This means that in order to pursue your long-term retirement objectives, you need to do your own research to choose investments that align with your risk tolerance. Fidelity BrokerageLink can be a useful tool for Baptist Health employees who feel comfortable with self-directed investing to personalize their retirement strategy.
Partner With a Professional
If you’re not entirely comfortable self-managing the strategies discussed in this article, consider consulting with a professional retirement advisor.
As a Registered Investment Advisor Representative at Seals Financial Planning & Investments, I frequently work with Baptist Health employees to help them optimize their retirement options. My firm works with you to create a comprehensive plan that aligns with your specific financial situation.
If you would like to schedule a time to meet, please give us a call at (859) 230-3476.
About Richard Stephen (Steve) Seals
Steve Seals is owner and independent Registered Investment Advisor Representative at Seals Financial Planning & Investments VI, LLC, a financial planning services firm based in Lexington, KY. As an independent Registered Investment Advisor Representative with about two decades of experience in the investment and insurance industries, Steve’s firm is founded on getting to know each client personally, allowing him to provide sound financial advice throughout their career and into retirement. With the mission of guiding clients on the path of success, Steve is fueled by his commitment to excellence and goes the extra mile to make sure clients are fully satisfied. He believes in maintaining a positive mindset, creating partnerships with a purpose, and always striving for significant outcomes.
Born in Jenkins, Kentucky, Steve grew up with a love for basketball and serving his community. After high school, he served nine years in the United States Marine Corps, then earned a bachelor’s degree in accounting. He was eventually able to put his degree and desire to help others to work as a fiduciary financial planner. Prior to founding his own firm in 2014, Steve learned from working with Edward Jones, US Bank, University of Kentucky Federal Credit Union, and CUSO Financial. He also received his Security Series 63 and 65/66 through Keystone Financial Group, LLC, and holds various life, health, and variable insurance licenses.
Steve and his wife, Angie, have three daughters (Lauren, Peyton, and Ashton) and two grandsons (Kenyon and Kai). Steve holds a private pilot’s license, and the family enjoys sports, spending time at the lake, and traveling. To learn more about Steve, connect with him on LinkedIn.
