Investing Basics with Chris Strivieri, Founder and Senior Partner of Intuitive Planning Group in Alliance with Equitable Advisors
It’s easy to get wrapped up in stories over the holidays. Themes of love, redemption, and generosity dominate seasonal tales dating back centuries, and they’ve taken many forms, from a lonely green sasquatch living in a mountain-top cave desiring social interaction, to the down on her luck city-dwelling everywoman meeting her prince charming in a country town. But whether it’s classics like Christmas Vacation, It’s a Wonderful Life, A Christmas Carol, or the Hallmark catalogue, money tends to play a role. But one doesn’t need to rely on a Christmas bonus as lucrative as Clark Griswold’s, the unexpected arrival of giving homeowners in Bedford Falls, or a haunted boss’ change of heart to overcome the financial pinch that often accompanies the holiday season.
For many, the new year brings revised financial visions. All one needs is the right strategy and an experienced advisor to turn long-term financial dreams into a reality. “One of the best areas for clients to start investing is with either their employer plan (401k, 403b, 457b) or with an individual IRA or Roth IRA,” said Chris Strivieri, an advisor with Equitable. With 33 years at Equitable, Strivieri, a Villanova grad and former basketball coach, recently started a firm within the company called Intuitive Planning Group, whose mission is to help clients achieve their lifelong goals while being guardians of their financial wealth.
“At a minimum, it is suggested to take advantage of any matching contribution that your employer provides. For example, if your employer matches dollar for dollar up to 3% of your compensation, make sure you are saving 3% from your paycheck. The match is money that comes to you for just participating.”
Sounds like free money? Old Ebenezer Scrooge’s eyes just burst. In an employer match, an employer will contribute to the employee’s retirement account dollar for dollar what the employee contributes. Most companies offer up to a 3% match, with a partial match up until a certain percent, for example 4% or 5%, when they no longer match. After that limit, the contribution is up to the employee’s discretion. If an employee was debating how much to contribute, decided they had other financial priorities, and only contributed 2%, they’d be leaving a full 1% percent off each period of their own money in addition to another 1% of what the employer would pay. Not only is that giving up free money in the present but also provides less money that can grow over time, which could lead to a significant reduction of value compared to taking a full match.
Many employees may not have access to an employee sponsored plan, so other options are available to ensure the safety of an individual’s money and the potential to compound earnings over time. “If you don’t have a plan at work,” Strivieri said, “make sure you are saving into a traditional IRA or a Roth IRA. The difference is important to understand. The traditional IRA provides a tax deduction up front and the money grows tax deferred. The Roth does not provide a tax break but allows for the funds to grow tax-free.”
To clarify, when an employee puts money into a traditional IRA, it is taken after taxes, which can be fully deducted if the individual is under the limit for Modified Adjusted Gross Income ($123,000 joint, $77,000 single). If the MAGI is over the limit, a partial deduction may be allowed. The money will grow tax-deferred, which means when it’s time to be taken out, generally required by age 73, the individual will then pay taxes on the withdrawal. In a Roth IRA, the employee contributes after taxes, but the amount cannot be deducted at tax time. However, the money will grow without paying taxes or penalties upon withdrawal of contributions and can be withdrawn for any reason at any time. Tax-free and penalty-free withdrawals of earnings can only be taken if certain requirements exist, for example a 5-year aging of the account and if the individual is 59 ½ or older or meets one of the following conditions: disability, first-time home purchase, or death.
Once an employee has chosen the right plan for financial growth and determined the minimum amount to be invested, there’s one more key detail to remember. “It’s important to know what the limits are,” Strivieri added. “The individual limit for employer plans in 2025 is $23,500 for individuals under age 50. If you are over age 50, you can save an additional $7,500. For IRA and Roth IRA, the limit is $7,000 per year with an additional $1,000 if you are over 50. Knowing the limits and taking advantage of these plans is a critical piece to a comfortable retirement.”
Now that an individual has formed a plan for financial contributions, it’s not yet time to plan on installing a new pool or feeding the entire town with the returns once the time to withdraw arrives. Even with a 20% plus growth the past two years (2023, 2024) in the stock market, something Strivieri said is not normal and shouldn’t be expected, he added, “Investing is a long-term plan. Volatility is normal, so it is important to stay invested with this time frame in mind.”
Re-assessing investment options, creating a future timeline, and taking action now can get any individual closer to their long-term financial success.