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It is becoming more common for us to see retirement plans where the owners are not able to fully fund their portion because it is tremendously expensive because of the employees.  We have a special retirement plan design that may allow you (the owner) to maximize your contributions in a very efficient way for the pharmacy cash flow.  We believe that this is one way you should be rewared for taking the risk of pharmacy ownership.  This site is dedicated helping you create a more efficient benefit for the company and fulfill your responsibilities for being a plan sponsor.

Pharmacy 401k plans are a great way to save money and provide a benefit to your employees. Please visit the website at www.pharmacy401k.com to learn more.  Below is Waypoint's blog dedicated to pharmacy 401k plans and retirement planning for pharmacy owners.

The dangers of using your 401k to pay off debt

Posted by Tyler Campbell on Fri, Jan 19, 2018 @ 11:22 AM

This month, we are talking with a lot of people about working towards being debt free. While it is important to focus on getting out of debt so you can use that money for better things (such as adding to your 401k...wink wink), there are folks who are using their 401k to pay off that debt. If you are considering using your 401k to pay off debt, be sure to check out this video on the dangers of doing so.

As we've said before, the only thing we can control in the market is the amount of time that we are in it. There have been multiple studies showing that those who start saving earlier vastly outperforms those who start later. When you take money out of your 401k, you set yourself up for both short-term and long-term ramifications.

The short term ramifications of pulling money out of your 401k before you are 59.5:

  • Taxes
  • A 10% penalty

The long term ramifications:

By removing that money you have saved, you are losing time in the market, which is costing you what that money could have compounded in to. 

You have worked hard to save for retirement, and it is important to try and keep that money safe. There are other ways that you can try and pay off debt, whether it is by budgeting, being proactive, living within your means, getting a part-time job or lowering other unneeded expenses. 

If you need help paying off your debt, we recommend using a debt reduction tool to help you make a plan and stick to it. To download a free copy of the tool, click the button below:

I want to be DEBT FREE



For more information on our custom approach and to discover your pharmacy's optimal plan, click here to download our company census tool or contact us by emailing tyler@pharmacy401k.com or call Tyler Campbell at 843-720-3756. 

Topics: 401k, debt reduction, saving money

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