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Businesses look to 401(k) plans to cut costs: Here's what you should know

NASHVILLE, Tenn. (WZTV) — COVID-19 has impacted nearly everyone in one way or another. The job loss, income uncertainty and the well being of friends and family can cause an insurmountable amount of stress. That's why Securian Financial Group is working to separate fact from fiction when it comes to saving for the future.

As businesses look to cut costs during the pandemic, some are turning to your 401(k). Latest Nashville News The coronavirus is impacting businesses big and small, so some have decided to end or delay matching contributions to employees' retirement plans.

"Every business is different, but this is somehow impacting every one in some way. To stop a company match, it highly depends on retirement plan design," says Senior Director Ted Schmelzle.

He advises people should be mindful about their 401(k)'s and be checking in every so often to make sure you have a diversified portfolio. Making certain changes now could greatly benefit you in the future, he says.

"These are long term investment vehicles so they are set up to provide income far into the future. You've got people in all walks of life; early in their career, middle of their career or nearing retirement. What you should do is really evaluate how long you've got until you need that money."

Securian Financial Group says focus on your long-term goals, diversify your portfolio, avoid emotional decisions and stay the course.

"Many of the worst decisions we can make, with respect to investment, are driven by emotion," Schmelzle warns. "The dollars you invest now will likely be the most impactful you ever invest in a down market."

While Schmelzle understands finances are tight for many people, Press Release Distribution Service especially those who are facing furloughs or lay offs, he believes you should take a step back before deciding to access your retirement money early.

"I would say before that decision is made, you have to step back and really divorce yourself from the noise. If you take [money] out of your plan, what you're doing is you're selling at a low point and locking in the losses."

The CARES Act, established due to coronavirus, does impact retirement savers. Securian Financial Group recommends talking to a trusted financial advisor to see how these changes could impact you moving forward.

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