Nurse's 401(k) Setup Guide (Fidelity)

The nursing field is entering a new age. New nurses are younger, and the older nurses are retiring. Yes, retiring, because they can. 

They have put their time in, and I’m sure many of them have set up their retirement, including a 401(k), Roth IRA, etc. If you’re not familiar with any of these, you’ve come to the right place!

I’m on the younger side myself, and I definitely want to retire one day. To be honest, Bedside nursing is not what I want to do forever. I want to enjoy the fruits of my labor. So, for all you new, young nurses out there, listen up. You may think you don’t need a retirement plan, but guess what? You do. 

One of the most popular ways organizations offer this is by giving you a 401(k). 

In this blog post, I’m going to guide you through setting up your 401(k) for all the newbies. I will provide steps to setup a 401(k) with Fidelity since the organization I work for offers a 401(k) through them.

Step-by-Step Guide to Setting Up Your 401(k) Account with Fidelity

Congratulations on your new nursing job! Setting up your 401(k) with Fidelity is a smart move toward securing your financial future. Follow these simple steps to get started:

Step 1: Gather Required Information

Before you begin, make sure you have the following information handy:

• Social Security Number
• Date of Birth
• Address
• Email Address
• Employer’s Name and Address
• Employment Start Date

Step 2: Access Fidelity’s Website

Go to the Fidelity website at www.fidelity.com.

Step 3: Click on “Workplace Savings”

Hover over the “Investing & Savings” tab on the top menu and click on “Workplace Savings” from the dropdown menu.

Step 4: Select “Register”

If you are a new user, click on the “Register” button. If you already have a Fidelity account, log in using your existing credentials.

Step 5: Choose “Register Now”

Under “New to Fidelity?” click on “Register Now.”

Step 6: Enter Personal Information

• Provide your Social Security Number, Date of Birth, and Zip Code.
• Click “Continue.”

Step 7: Verify Identity

• Follow the prompts to verify your identity.
• You may need to answer security questions or provide additional information.

Step 8: Review Terms and Conditions

• Review and agree to the terms and conditions.

Step 9: Create Username and Password

• Create a username and password for your Fidelity account.
• Choose security questions and answers.

Step 10: Log In to Your Account

• Log in to your newly created Fidelity account.

Step 11: Navigate to “Workplace Savings”

• Once logged in, click on the “Workplace Savings” tab.

Step 12: Enroll in Your Employer’s 401(k) Plan

• Under “Actions,” select “Enroll” next to your employer’s 401(k) plan.

Step 13: Choose Contribution Amount

• Select the percentage of your salary you wish to contribute to your 401(k) account. (10% is a good start in my opinion)
• You can choose to contribute a percentage or a fixed dollar amount.

Step 14: Select Investment Options

• Choose your investment options based on your risk tolerance and retirement goals.
• You may opt for target-date funds, index funds, or actively managed funds.
• The default is a typical target-date fund.

Step 15: Review and Confirm

• Review your selections and confirm your enrollment.

Step 16: Set Up Beneficiary Information

• Provide beneficiary information for your 401(k) account.
• This ensures your assets are distributed according to your wishes in the event of your passing.

Step 17: Finalize Enrollment

• Once you’ve reviewed and confirmed your selections, finalize your enrollment.

Congratulations! You’ve successfully set up your 401(k) account!

What investments do you choose?

Most 401(k) plans automatically enroll you in a retirement fund like “Target Ret 2055”. This indicates the approximate year 2055 when an investor in the fund would retire and leave the workforce. 

However, you have the freedom to choose your investments as well. You can either rely on Fidelity to guide you in this process or select your own investments, such as stocks, bonds, and more. 

Personally, I opted to diversify my contribution investments from the generic retirement fund to bonds and stocks. Currently, I follow the 60/40 rule, with 60% invested in stocks and 40% in bonds.

Another important aspect to consider is the percentage of your paycheck you want to contribute. This is your contribution rate. 

I believe a good rule of thumb is to contribute at least 10% (or more if possible) of your overall income. 

However, it’s essential to note that you should contribute at least the percentage matched by your company (e.g., 6%) and then allocate the remainder to a Roth IRA of your choice.

This strategy ensures you’re taking full advantage of your employer’s contribution while also building your retirement savings in a tax-efficient manner. Again not financial advice, please do your own research and talk with a financial advisor.