Welcome Hilton Employees!
As a Hilton employee you work diligently in your career and have access to a variety of generous benefits including health and welfare benefits, a retirement savings program (401k), hotel discounts, PTO and more.
Greenway Wealth Advisory can help you access a benefit of your 401k retirement plan that you may not be aware of! This benefit is called a Self Directed Brokerage Account (SDBA).
Understanding your Hilton 401k, Retirement Benefits and Investments
Let’s talk about your retirement savings program, specifically your Hilton employee retirement savings plan, also known as a 401k. A 401(k) is an employer-sponsored plan for retirement savings. It allows an employee to contribute to their retirement savings straight out of their paychecks before taxes and invested. The Hilton 401k is provided through T Rowe Price.
If you are investing in the Hilton employee’s 401k, you are currently in a wealth development phase. As a result, you have plans to retire and are saving towards that goal. What are you doing to make your goal of retirement a reality?
But, the reality is American workers are not financially prepared for Retirement.
According to the Bureau of Labor Statistics, only about 55% of the American workforce has access to a 401(k) and only about 38% of the total workforce participate. So, that means roughly 31% of those who have access to a 401k are not participating!
Why participate in Hilton’s 401k?
Making contributions from every pay is painless because it is automatically deducted from your paycheck.
You are able to contribute a lot of money to your 401k every year. The maximum contributions for 401k’s are:
If you are not near maxing out your 401k contributions that is OK, every little bit helps to accumulate a nest egg for your retirement. But you should make it a goal to increase your contributions each year and eventually max out.
Hilton matches your 401k contributions
In addition to your salary deferral contributions, Hilton Worldwide matches your contributions up to 5%*. This is free money! A match is a great way to give your savings extra umph!
*subject to change
Taxable income is reduced by 401k salary deductions. So, the more you contribute to your 401k, the less your taxable income is, the less you pay in taxes.
There are a variety of mutual fund investments available to you in your 401k plan. Many of the mutual funds are target date funds, you choose the target date fund based on your anticipated year of retirement. And the fund is then managed according to that designated date, getting more conservative over time. But, the issue with target date funds, is that they assume that everyone invested in that fund has the same investment objectives and risk tolerance.
401ks defer taxes. Because of the tax-deferred status of 401ks, you do not pay taxes on your 401k assets until you start taking withdrawals. Your 401k contributions, match and earnings grow tax deferred.
Roth 401ks allow for after tax contributions into your employer sponsored 401k. These after-tax contributions grow tax deferred and withdrawals are tax free. Roth’s are an enormously powerful retirement investing tool!
Although they do not outweigh the pros, there are some cons with 401k’s.
Mutual funds in 401s may be expensive. A myth with 401ks is that they are free. An employee does “pay” for their 401k, through the fund expenses of the mutual funds they’re invested in. You do not see these costs, but they can be higher than 1%.
It is up to you to pick your investments when you sign up for the 401k plan and reallocate the funds when appropriate. Odds are, you may not have been given much guidance on what mutual fund investments to select.
How do you know you are diversified? How do you know you’re invested at all? There is a 1-800 number you can call with questions, but they don’t know you, your investing experience or risk appetite. What about reallocation? You need to do that yourself, usually in the online portal, as well.
Do you have confidence in your mutual fund picking?
We help Hilton employees feel empowered about their financial future.
At Greenway Wealth Advisory, we can help! We are Financial Advisors for Hilton employees.
Hilton employees can work with a Financial Advisor on their individual 401k account. By working with a Financial Advisor, such as Greenway Wealth Advisory, you can have your retirement assets professionally managed and advised through a Self-Directed Brokerage Account (SDBA). You participate in a Self-Directed Brokerage Account while you are still working and contributing to your 401k retirement. Our first priority is to help you realize and achieve your financial goals.
Why participate in a Self-Directed Brokerage Account?
For many years, employees were limited to allocating their 401ks to the mutual funds offered by their plan. Today, some plans, including Hilton’s, allow their 401k participants to create Self Directed Brokerage Accounts (SDBA) within their 401k account. A SDBA allows a participant to choose additional investments for their 401ks such as stocks, bonds and ETFs. Many people are not comfortable with picking their own investments, so Self Directed Brokerage Accounts also allow the employee’s Financial Advisor manage their 401k for them. This is a fantastic benefit that Hilton provides their employees! 401ks are usually a person’s largest asset, shouldn’t it be getting the attention it deserves? Greenway Wealth Advisory is experienced in the management of Self Directed 401ks and can give you confidence when it comes to your retirement savings.
Your money stays in the 401k and you continue contributing to your 401k account. So, instead of plan-provided mutual funds, you have personal money management as your investment.
Are you eligible for the Hilton Defined Benefit Plan?
Hilton Worldwide provides defined benefit pension plans and defined contribution pension plans. A defined benefit retirement plan pays employees a fixed amount when they reach retirement. With a defined contribution retirement plan, companies help employees save and invest for retirement.
Hilton employees are also offered a profit-sharing plan. A profit-sharing plan is a defined contribution plan that allows Hilton to make discretionary contributions based on the company’s profit.
Are you confused about your choices?
I am a financial advisor for Hilton Employees. I help you get the most out of your retirement benefits
I work with Hilton employees to help them navigate and get the most out of their Employer-sponsored retirement and health care benefits. Let’s schedule a call today!