When Eric Berner was 12 years old, he bought his first stock.

“My dad would invest in stocks now and again, and I wanted to be like my dad, so I used the money in my savings account I'd gotten from birthdays and bought 50 shares in a company that made travel trailers,” recalls Eric, co-owner of Rock Castle Wealth Advisors in Hendersonville. “I bought at $3 a share and sold at almost $13 a share.”

In the years to come, what began as a burgeoning interest in finance led to a career as a financial advisor, creating strategies for investment goals and wealth management. In the process, Eric has become an expert on advising his clients on ways to ensure a financially stable and comfortable retirement.

According to Eric, one of the best ways to save for retirement is a 401(k), an employer- or company-sponsored investment plan and retirement savings account. The benefits of having a 401(k) are twofold: it allows an employee to save for retirement while reducing the tax burden, and contributions are automatically deducted from each paycheck. The employee decides how much to contribute and which investments to choose, based on selections the employer offers.

As Eric explains, “I think it's a convenient and easy way to save and invest. If it's never in your pocket, if you never see it, you don't miss it.”

While Eric’s interest in 401(k) plans emerged as a product of his interest in financial wellness, one of the first opportunities he had to share his knowledge on the subject presented itself before he was actually a financial advisor.

“I was managing operations for a company that was rolling out a non-matching 401(k) plan, and I took it upon myself to sit down with every one of my 45 employees and explain to them what it was and how it worked,” he says. “Some of those folks had never even heard of a 401(k), so I explained if they sacrificed a few bucks every month by contributing into their plan, over time they would have a nice account that would help them supplement their Social Security income when they retire.

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“After that, out of 72 branches, the only one that had 100 percent participation in the 401(k) plan was mine because every employee I explained it to had signed up.”

In addition to the benefits of saving for retirement and reducing tax burdens, many employers choose to match employee contributions, effectively providing employees the opportunity to save and invest more money.

As Eric describes, “If there are two employees and one participates in the 401(k) and one does not, the one who participates in a matching 401(k) is getting free money.  All they have to do is save some of their own money in order to have their employer put free money into their account on their behalf.”

Although not all employers match employee contributions, one common approach is for an employer to match employee contributions dollar for dollar up to a total amount equal to 3 percent of an employee’s salary. For example, if an employee contributes 5 percent of their annual pay and receive $2,000 every pay period, they will contribute $100 out of every paycheck while their employer contributes $60.

Perhaps one of the greatest advantages of a 401(k) plan is the ability to tailor it according to changing needs, Eric says.

“My advice for 401(k) enrollees is to discuss whether they are able to tolerate more volatility and a more aggressive portfolio in their younger years, then think about adjusting their investments to be a bit more conservative as they get older.”

Eric also suggests that 401(k) providers should be able to offer some level of education to assist employees in making decisions on how to invest their 401(k) account.

For more tips on financial wellness, reach out to Eric Berner and the team at Rock Castle Wealth Advisors at 615-235-1058, or their Hendersonville location at 100 Bluegrass Commons Blvd.

About Eric Berner:

Prior to working in financial services, Eric managed operations in the transportation and distribution industries. In these roles, he managed large employee populations and spent hundreds of hours with individuals facing wage garnishments, levies, income tax arrearages, and foreclosures. Eric’s experiences helping employees work through these issues, as well as a variety of personal tragedies, gave him an appreciation and understanding of the impact financial wellness has on individuals and their families during times of stress and suffering. Eric is one of the owners of Rock Castle Wealth Advisors and is a Certified Divorce Financial Advisor (CDFA).