Meet Alexandra Sbordone — Our Dedicated Fidelity Workplace Financial Consultant
All Einstein employees have the opportunity to enroll in the Einstein 403(b) Plan, a defined contribution plan that Fidelity Investments provides administrative services for. Certain new employees are automatically enrolled in the plan at a 4 percent contribution level, unless they opt out of contributing or choose to contribute more.
Employees can contribute as much as they wish from their salary, on a pre-tax or an after-tax Roth basis, up to the IRS annual limit, which for 2024 is $23,000 for the year. Employees over age 50 can contribute toward an additional $7,500 “catch up” amount as well, if they wish.
Knowing What’s Best for You
Alexandra Sbordone is Einstein’s Fidelity Workplace Financial Consultant. Contact Alexandra to discuss your options for managing your money or planning for retirement.
You may wonder, how can you know what might be best for your particular needs? That’s where Alexandra Sbordone, Einstein’s dedicated Fidelity Workplace Financial Consultant, can be of help. Alexandra has more than six years with Fidelity and was previously an investment consultant for Fidelity’s Upper East Side Investor Center. A Chartered Retirement Planning CounselorSM, investment advisor representative, registered securities representative, and licensed insurance representative, she holds a bachelor’s degree in marketing from the City Of New York – Brooklyn College.
As our Workplace Financial Consultant, Alexandra promotes financial wellness for plan participants through one-on-one planning and educational events. Below are some questions we asked Alexandra about enrolling in the 403(b) and building one’s retirement savings. Her responses may help you determine if making contributions—and how much--is for you. You also can schedule a virtual meeting with Alexandra, who will be happy to answer your questions and to guide you in making the best decisions to help meet your investment and retirement needs.
Why is enrolling in the plan so important?
Enrolling allows you to set aside money for your retirement. Both you and Einstein play a significant role in helping you to reach your retirement goals. For eligible employees, Einstein provides a non-elective contribution equal to 7.5 percent of base pay, up to annual IRS compensation limits. This non–elective contribution is provided regardless of whether you choose to make your own contributions. Einstein does its part to help you get closer to reaching your retirement goals, but the rest is up to you. That’s why we suggest you start contributing to the plan as soon as you can.
When should I get started?
At Fidelity Investments, we suggest that the single most important thing you can do is to start saving early in your career. The sooner you start, the more time you have for your investments to potentially grow—and to help recover from the market’s inevitable ups and downs.
How much should I aim to save for my retirement?
Fidelity suggests saving at least a total of 15 percent of your income each year. Together with other steps you may take, this percentage may help you reach your retirement goals. While 15 percent may seem like a lot, the good news is that Einstein’s 7.5 percent, non–elective contribution counts towards your annual savings rate. Of course, 15 percent is just a guideline.
Your annual savings rate may be higher or lower depending on when you want to retire, how you invest, and how you want to live in retirement. Alexandra can help you determine what will work best for you and your comfort level with investing your money. Your plan offers a variety of investment options to help meet your retirement goals.
What are my options for contributing to my 403(b) retirement savings?
The Einstein 403(b) plan is a tax–advantaged savings account. It’s convenient because your contributions are automatically deducted from your paycheck each pay period. If you choose to contribute on a pre–tax basis, your taxable income will be reduced, meaning you get a tax break each year that you contribute. Plus, that money can grow tax-deferred until you withdraw it during retirement. You will only be taxed on the money, both contributions and earnings, when you withdraw it.
Or, you can choose to make Roth after–tax contributions to the plan. When you select this option, your taxable income will not be reduced in the year you make the contributions; however, you will be able to withdraw the money tax-free if you have a qualified distribution from your Roth account. A qualified distribution is generally a withdrawal that is made from an account that has been held for at least five years and is made either on or after the date you reach age 59 ½, or after your death, or is attributable to your being disabled.
Either way, we encourage you to join the plan as soon as you can and contribute as much as you can to help assure you’ve got resources for when you’re retired. This will allow you to make sure that your retirement goals remain within reach and, ultimately, to make the most of your retirement benefits.
Meet with Alexandra One-on-One
Whether you’re just starting out in your career or nearing retirement, you have a lot to think about as you plan for the future. Alexandra can help you develop a comprehensive retirement and investment plan that aligns with your overall financial goals. Spouses, planning partners, and other family members are invited to participate. Visit www.Fidelity.com/Schedule to book your consultation today!
Investing involves risk, including risk of loss.
Investment advisor representatives are licensed with Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser, and registered with Fidelity Brokerage Services LLC (FBS), a registered broker-dealer. Whether a Fidelity representative provides advisory services through FPWA for a fee or brokerage services through FBS will depend on the products and services you choose.
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Posted on: Thursday, August 01, 2024