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Could Your AT&T 401(k) Use Professional Help?

May 22nd, 2024 | 3 min. read

By Advance Capital Team

att 401k financial adviser

Although AT&T employees receive a pension, your ability to retire comfortably relies heavily on your 401(k). The AT&T 401(k) plan helps you grow your retirement savings, but managing it can be complex and time-consuming.

Advance Capital Management has been serving AT&T employees and retirees since 1986. So, we have a deep understanding of AT&T’s benefits and how they can make a difference in your financial future.

That’s why we think AT&T employees could benefit from our professional 401(k) management service, ACM 401(k) Builder. Check it out here!

With ACM 401(k) Builder, we handle the allocation and management of your investments, make necessary adjustments, and provide full-service financial planning for all your financial needs.

Here are the ways our service could help you take control of your AT&T 401(k).

Setting the right contributions

Let’s start with saving money. While you’re working, AT&T allows you to save a portion of each paycheck into your 401(k) account, where it can grow tax-deferred for future use.

Generally, you should try to max out your basic contribution so you do not miss out on the AT&T 401(k) match. As with your own contribution, AT&T’s matching dollars can compound over time. (This article explains how AT&T's 401(k) match works.)

Saving beyond your basic contribution will definitely help you grow your retirement savings even more, and you can do so by making a supplemental contribution.

But how much exactly should you contribute? After all, everyone’s situation is different.

Why consider ACM 401(k) Builder: a financial adviser can help ensure you’re making the most of AT&T’s matching contributions – and catch-up contributions if you’re eligible – helping to maximize your savings potential.

Making appropriate investment choices

Now, what should you buy with your savings?

The process of selecting the right mix of investments in your 401(k) is critical to your financial success. It is also the part people often find the most challenging.

While managers and non-managers have different 401(k) investment options, there are choices in each program that can help your money grow at a level of risk you are comfortable with.

Investment needs vary from employee to employee, but a common strategy is to start with a more aggressive allocation to stocks when younger, gradually shifting to lower-risk investments as retirement approaches. 

The challenge is in determining what funds to select and how much to invest in them.

A common investing mistake we see when helping AT&T employees plan for the future is an excessive amount of their retirement savings invested in AT&T stock. While it can be rewarding to own a share of a respected company like AT&T, it is risky from a retirement planning perspective.

Why consider ACM 401(k) Builder: Selecting the right mix of funds can be daunting. Our advisers help you choose investments that match your goals and risk tolerance. That includes avoiding the common mistake of over-investing in AT&T stock. Diversifying your investments can lower risk and provide more stable returns.

Managing your account as markets and your life change

A fact of life is that things change.

Your investment values will move up and down as the market and economy change. If they move too much, you may need to rebalance – sell what’s up, buy what’s down – to maintain your investment choices.

And, of course, your life will change, too.

For instance, as you progress through your career, you may need to adjust your AT&T 401(k) to better manage risk and keep it aligned with your retirement goals.

You have to ask yourself honestly, are you regularly keeping your AT&T 401(k) on track to meet your goals?

Why consider ACM 401(k) Builder: We don’t just set up your account; we continuously monitor and adjust your investments as market conditions and your needs change.

Comprehensive financial planning support

As an AT&T employee, you receive benefits beyond a 401(k), such as the AT&T pension, health savings account, health and life coverage and more.

Beyond managing your 401(k), ACM 401(k) Builder provides full-service financial planning, including guidance on your AT&T pension and other retirement benefits.

Learn how an adviser can manage your 401(k) for you, providing support on your journey toward your retirement goals. Schedule your free 401(k) review and consultation with an ACM 401(k) Builder adviser today.

Advance Capital Team

Advance Capital Management is a fee-only RIA serving clients across the country. The Advance Capital Team includes financial advisers, investment managers, client service professionals and more -- all dedicated to helping people pursue their financial goals.