Recently, you may have received notifications from Empower about a few changes they are making to the investment options inside your 401k. I’ll talk about a few of those changes and try to explain them. As always, if you have questions, feel free to reach out to me at Brian@TheAeroAdvisor.com or click on the link at the bottom of this email to schedule a 100% free (and I mean it) no-obligation phone call to talk you through the changes.
What is changing?
Basically, they are removing some of the investments choices you have to choose from inside your 401k. They are also renaming some of the existing funds and changing some of the strategy that goes into the Target Date retirement funds. One fund is also being added to your choices.
These changes will take place on April 8th and will be completed on April 13th. The time between is a “black-out period” where you won’t have access to your 401k account, so make sure to take care of any changes before then.
Why are they changing?
There are a number of reasons 401k providers change investment options but according to the Lockheed Martin Investment Management Company (LMIMco), they decided these funds weren’t being used by a lot of employees and wanted to reduce the amount of fund selections to make it easier to decide on an investment mix.
If you are invested in the Target Date retirement funds however, you might still have exposure to these funds despite them being eliminated from the investment options.
What are my options?
If one of the funds you are invested in is being removed you can either do nothing – and those funds will be moved over to a Target Date retirement fund. Your birthday will determine which target date fund you will be moved to.
If you don’t want to move those funds to the Target Date funds, you can move those assets to whatever investment selection you like – you just need to do it before Thursday, April 8, 2021 at 4 p.m.
What about my future contributions?
If you are putting money out of each paycheck into one of the funds being eliminated, you’ll need to select how you want your future contributions invested going forward by that April 8th deadline. If you don’t select anything, the future contributions will be moved to the Target Date fund as well.
How do I make the changes?
Log-on to your account at lockheedmartinsavings.com or you can call 833-562-4015 to make the changes.
Have further questions about the changes or want to find out if you are putting enough into your 401k to retire when you want? Feel free to email me at Brian@TheAeroAdvisor.com or click on the button below to schedule a time for us to chat. This is a free, 100% no-obligation phone call.
