Years of Service: 10
Marital Status: Divorced
“I’m taking control over the financial part of my life. The little extra money I save each month really does start to add up.”
Naava started working right out of high school and got married in her early 20s. However, she quit her job after her first child was born and returned to work when her second child went into first grade.
With one income, finances were always tight but somehow they made ends meet. It didn’t take long for her to realize that the extra money was nice. There were additional expenses, such as child care, but her family could go out to eat whenever they wanted and finally take a vacation.
Her company offered a 401(K) program with a match up to 5% of her salary. Naava considered this “free money” and contributed the full 5% every pay period. After 8 years of adding money and a good stock market, she had accumulated $45,000.
Everything changed when Naava’s employer filed for bankruptcy and she was laid off. The next year, while she was still looking for a job, her husband lost his job. During this time of financial struggle, they divorced and Naava’s husband received half of her 401(K).
Naava was eventually hired for a job in state government. She soon learned about the Wisconsin Deferred Compensation Program and decided it was a good fit. Naava started with $25 a paycheck with the goal to increase her contributions twice a year. When Naava realized that she was paying $1,472 a year in administrative fees for her 401(K), she wisely transferred the money from her 401(K) to the WDC Program.