The 401(k) and the Individual Retirement Account are the cornerstones of any solid long term retirement savings plan. Both of these accounts have a number of different characteristics that can provide value that will yield significant results in retirement. But your 401(k) plan at work likely has some advantages over the IRA structure.
When you focus on building your 401(k) you’re greatly increasing the chances that you’ll be able to live comfortably off your own savings once you enter retirement. In fact, the best way to be able to rely upon your 401(k) account is to maximize it in the... 401K
Retirement Advice on Living Comfortably Off of Your 401(k)
Friday, January 24th, 2014
The 401(k) and the Individual Retirement Account are the cornerstones of any solid long term retirement savings plan. Both of these accounts have a number of different characteristics that can provide value that will yield significant results in retirement. But your 401(k) plan at work likely has some advantages over the IRA structure.
When you focus on building your 401(k) you’re greatly increasing the chances that you’ll be able to live comfortably off your own savings once you enter retirement. In fact, the best way to be able to rely upon your 401(k) account is to maximize it in the... What Does Vesting Mean and What Does it Have to With My 401(k)?
Tuesday, August 27th, 2013
Does your company offer a 401(k) retirement plan? If it does then it’s important that you take advantage of that retirement savings benefit in order to maximize your retirement nest egg. Many companies that offer 401(k)s also offer to match employee contributions, which can help you leverage your own contributions and retire with a larger nest egg. Employer matches are a way for companies to encourage retirement savings by their employees, and along with employer matches often comes the notion of “vesting.”
The concept of vesting means that the matching contributions an employer makes to your 401(k) are not yours... What is Vesting?
Thursday, January 17th, 2013
As a general concept, vesting is the process by which an individual gains full ownership and control over a particular financial asset. For example, individuals who are given stock options by their employers must usually wait a certain period of time before they can exercise those options and actually become owners of the stock. Vesting is also an important concept in the context of retirement savings.
What to Know About Vesting. Employer matching funds for 401(k) accounts, as well as company stock options and restricted stock grants, can potentially be very valuable to your portfolio. Do what you can to... A Basic Calculation on How Much Income a 401(k) Can Provide
Friday, January 4th, 2013
Saving for retirement involves making a number of different assumptions, many of which will help you estimate how much you can expect to receive from your 401(k) account each month. There are many retirement income calculators to choose from online, so you won’t have to worry about performing the actual calculations yourself.
What you will need to do is come up with the information you’ll use in connection with whatever online calculator you select.
Here is some retirement advice on some of the most important factors, as well as how to make the best use of the results you receive... Retirement Advice on How to Read Your 401(k) Fee Disclosure
Thursday, September 20th, 2012
Do you know how much you pay in fees each year for your 401(k) account? Chances are good that you don’t. Even if you take a look at your last account statement, the information regarding fees might not be there. Actually, there’s a real possibility that when you considered the question you might have answered that you don’t pay any fees at all on your 401(k) account.
If you go to your HR Department or benefits manager and ask for this information, it’s quite possible that they won’t be able to give you an immediate answer. Instead, you’ll likely need... Watch Out for 401(k) Fees
Tuesday, May 1st, 2012
As a well-informed investor, you are probably already taking steps to make sure that you’re not paying too much in fees within your investment brokerage accounts. You may already invest in no-load mutual funds that have low annual expenses, and if you trade stocks then you probably make sure that your commissions are not too high. Too many fees (or fees that are too high) can significantly hamper investment performance.
But are you also looking out for fees that would affect the returns within your retirement accounts? In particular, you should also be paying attention to the various types of... Advice on How to Move Your Prior Employers 401(k) Plan Money to Your Own IRA
Thursday, January 5th, 2012
Long gone are the days when you’d work your entire adult life at a single job, build up a great pension after 30 or 40 years of service, then retire and live on those pension benefits. In fact, the U.S. Department of Labor estimates that the average American worker will change jobs every three and a half years.
Instead of offering pension plans, employers have shifted to offering 401(k) plans. With a 401(k) plan the obligations are now on the employee to contribute funds directly and to decide how to invest those funds. Employees are also responsible for eventually... Solo 401k for Entrepreneurs
Monday, February 14th, 2011
One of the perks of working for some companies is the ability to make use of a 401k plan. Entrepreneurs and self-employed individuals have often missed out on these investment opportunities, but they don’t have to there are ways to take advantage of going out on your own.
Starting a solo 401k for entrepreneurs sets the stage for retirement planning. It also provides a little safety net for future finances. The investment benefits of a solo 401k make it something every small business owner and entrepreneur should consider.
Here is some advice on the benefits for investing in a Solo 401k:
How to Determine the Size of a 401k Nest Egg?
Saturday, January 8th, 2011
Planning the exact amount of money necessary to enjoy a comfortable retirement can seem like an impossible task. Individuals and families sometimes struggle to find the right balance between enjoying retirement and skimping on spending to be sure there will be enough to last.
Setting any budget for a ten to twenty year period can be a challenge. Answering a few questions will help start the process of determining the right size for a 401k nest egg. More is always better when it comes to preparing for the future. It still helps to know how much is necessary to fund... What Should I Do if My Employer No Longer Matches My 401(k) Contributions?
Tuesday, October 26th, 2010
Since their introduction in the 1980s, 401(k) plans have become a mainstay for many people who are saving for retirement. Having a 401(k) account allows you to contribute money (in the form of a payroll deduction) to an individual account before taxes are paid on that money. The effect of this type of tax deferral is to increase the ability of your money to grow before you are required to pay taxes. In fact, since taxes are only due when funds are withdrawn from a 401(k) account, it is possible for your contributions to grow for... 
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