April 21, 2023
If you are a Verizon associate, you probably are familiar with the 401(k) plan the company offers. Typically, this plan establishes a separate account for each participant, to which the participant, the employer, or both contribute a predetermined amount.
Are you wondering if you have made the right investment choices for your 401(k) plan? There is no need to worry, but there may be some need to take action. Hapanowicz & Associates (H&A) has guided Verizon employees in creating retirement plans and managing their retirement benefits for more than two decades.
This article looks into some investment options for Mid-Atlantic Verizon associates.
What if I Am Not a Mid-Atlantic Associate?
If you are not a Mid-Atlantic Associate—say, a manager—you may want to keep an eye out for our future article, as these options may differ for your employee group.
How Many Funds Are There to Invest In?
The 401(k) plan has 28 funds you could invest in, with each option consisting of various investments or securities, each carrying its own set of risks and potential returns.
The investment returns from your 401(k) will depend heavily on how you invest your contributions. You should consider how each option will affect your personal circumstances, its associated risks, and if it has a potential path for growth.
Although diversification cannot guarantee against loss, it is an effective strategy for risk management.
What Are the Tiers of Investment Options in the Verizon 401(K) Plan?
There are four tiers of investment options in the Verizon 401(k) plan, as follows.
1. Target Date Funds
Currently, there are ten target date funds you can choose from.
Each of these funds is designed to be a convenient, all-in-one investment vehicle, professionally managed to provide you with a diversified portfolio of stocks, bonds, and other investments that take into account your retirement goals.
As you approach retirement age, each fund’s asset allocation will leverage more conservative investment options, with a higher percentage invested in bonds and shorter-term instruments.
2. Balanced Strategy Portfolios
This tier of investment options in the Verizon 401(k) plan includes five risk-based or balanced investment strategy portfolios.
The options range from a 100% fixed income/bond portfolio in a conservative strategy to a 100% stock portfolio in an aggressive strategy. These portfolios are designed to give you a professionally managed and diversified investment account.
3. The Nine Asset Class Investment Options
The nine asset-class investment options target those who want to play a more active role in the allocations of their investments. The investment options include:
- US and international stock funds
- Real estate fund
- Bond fund
- Money market fund
- Company stock fund
4. Single-manager Investment Options
The 401(k) plan at Verizon also allows participants to invest in a portfolio overseen by professional investment managers. The single-manager investment option is typically suitable for investors open to using special investment vehicles to realize their financial goals. These funds consist of a bond fund and three stock funds.
Final Word
Verizon provides its associates with a wide selection of investments in their 401(k) plans. You can help secure your financial future in retirement by taking advantage of the company match.
Contributing the right amount of money to your 401(k) each month and year and making smart investment decisions within your 401(k) is crucial to pursuing your long-term investment and retirement goals.
Reach out to one of the advisors at H&A who works with Verizon employees. They will provide all the information you need to make the right investment choice in your 401(k) plan or advise you on the appropriate amount of savings you need to accumulate to pursue your retirement income goals.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
Investing involves risk including loss of principal. No strategy assures success or protects against loss.
Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions, and it may not achieve its investment objective.
Neither Hapanowicz & Associates, Hapanowicz & Associates Wealth Management nor LPL Financial are affiliated nor endorsed by Verizon Communications Inc., Verizon Wireless, or any other subsidiary of Verizon. Neither Hapanowicz & Associates, Hapanowicz & Associates Wealth Management nor LPL Financial are affiliated with any of the other entities referenced on this website. This should not be construed as an endorsement of a particular firm by any CWA-Local including 13000/13500 as well as any IBEW-Local.