Why Your Company Retirement Plan Matters in an ABA Career

Intro from Dr. Autumn Flick

I ignored my company retirement plan well into my mid-thirties, and I would like to spare you that mistake. With prices this high, it’s tempting to keep every hard-earned cent in your pocket. I’d push back on that. Even setting aside a small portion of your income for retirement can yield significant benefits in the long run. Chris and I want every Orchid Academy team member to be able to buy a home and feel financially stable, and a paycheck alone rarely gets anyone there. That’s why we offer our Stepping Stones Career Path Program and an IRA matching plan. Please take advantage of it.

Here is why enrolling in your employer’s retirement plan is worth doing now, and how to start.

1. Use the Power of Compounding

Compounding is the main reason to start early. Money you contribute now earns returns, and those returns earn returns of their own. Every dollar invested now can multiply several times over by the time retirement rolls around.

2. Capitalize on Employer Matching Contributions

Many retirement plans include employer-matching contributions, which is free money your employer adds when you save. Contribute enough to get the match and your savings grow faster with no extra effort on your part.

3. Take the Tax Benefits

Contributions to a 401(k) or IRA are often made with pre-tax dollars, which lowers your taxable income and can lower your tax bill. Investment gains inside these accounts also grow tax-deferred, so more of your money stays invested.

4. Build Financial Discipline

Regular contributions turn saving into a habit. Once it’s routine, other good money decisions get easier too.

5. Secure Your Future Self

Saving now buys you security and choices later in life, whether that means traveling, pursuing hobbies, or spending time with the people you love.

6. Partner with a Financial Planner

A financial planner can help you set realistic goals, build a retirement savings plan, and sort through investment options. At Orchid, we work with Amber Trader from Edward Jones, an experienced financial advisor. Schedule a consultation with Amber to talk through your retirement planning needs.

An Example

Consider this scenario: Suppose you’re 30 years old and decide to contribute an additional $100 per month to your 401(k) plan, taking advantage of your employer’s matching contributions. Over the next 35 years, assuming an average annual return of 7%, this additional contribution could grow to over $150,000 by the time you reach retirement age.

A retirement plan is one of the few benefits that keeps paying you back for decades. If you haven’t enrolled yet, start this month, even if the amount is small.

Interested in growing with Orchid? Explore careers at Orchid Academy or see open positions.