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... Articles Tagged ‘401K’
Retirement Advice on Living Comfortably Off of Your 401(k)
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...
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)?
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...
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... A Basic Calculation on How Much Income a 401(k) Can Provide
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...
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... Signs You Need to Adjust Your Retirement Plan
Your retirement plan is extremely important, and you’ll likely spend your entire working life building your savings up to a level that can sustain you through your retirement years. Unfortunately, even when you work hard and follow a plan of steady and disciplined asset accumulation, you might find that you aren’t saving quite enough.
This might mean a change in investment focus, or it might mean saving more to a particular type of retirement account than some other. You might even need to adjust your retirement timeframe or the type of lifestyle you anticipate having during retirement.
Here are some signs...
Wednesday, November 7th, 2012
Your retirement plan is extremely important, and you’ll likely spend your entire working life building your savings up to a level that can sustain you through your retirement years. Unfortunately, even when you work hard and follow a plan of steady and disciplined asset accumulation, you might find that you aren’t saving quite enough.
This might mean a change in investment focus, or it might mean saving more to a particular type of retirement account than some other. You might even need to adjust your retirement timeframe or the type of lifestyle you anticipate having during retirement.
Here are some signs... How to Determine the Size of a 401k Nest Egg?
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...
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?
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...
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... A Retirement Check-up
As the economy has worsened, not only have retirement funds dropped in value with the market, but also many people have been tempted to tap savings as a way to cut debt or otherwise shore up their finances after a job loss. Still more have found that employers have dropped matching contributions to shore up their own finances.
Worry about retirement seems to be widespread. A January survey by the National Institute on Retirement Security noted that 83 percent of Americans are concerned about their ability to retire.
Yet the worst thing you can do is tap or give up...
Wednesday, June 24th, 2009
As the economy has worsened, not only have retirement funds dropped in value with the market, but also many people have been tempted to tap savings as a way to cut debt or otherwise shore up their finances after a job loss. Still more have found that employers have dropped matching contributions to shore up their own finances.
Worry about retirement seems to be widespread. A January survey by the National Institute on Retirement Security noted that 83 percent of Americans are concerned about their ability to retire.
Yet the worst thing you can do is tap or give up... Continue Contributing to your 401K?
Saturday, February 7th, 2009
Simply put the answer is yes - absolutely. Here are the reasons why. Let’s assume you took a substantial hit to your 401K plan when the stock market plummeted approximately 40%.
The amount of stocks, bonds, mutual funds, and other holdings that your 401K provider continues to purchase at the currently lower prices will eventually increase in price once the stock market rebounds. If you do not contribute, you will be losing out on the potential increase your overall portfolio will obtain.
The basic rule of investing is to buy low and sell high. Now is therefore a great time to make...
Withdraw Funds from a 401K?
Friday, February 6th, 2009
With the current economic crisis on everyone’s mind, you may be wondering if you should withdraw money from your 401K. My recommendation is that you do not. Rather your contributions should continue based on the “buy low-sell high” theory.
What does this mean for you? Simply stated, right now most individuals may have incurred a severe loss in their 401K plans. But, considering that the stock market has dropped approximately 40% since the economic decline, your portfolio will likely increase with stocks, bonds, and mutual funds that can now be purchased at lower prices. See my...
Retirement Considerations in the Current Economic Environment
Friday, February 6th, 2009
Just when you thought you could finally retire, stocks take a nose dive and you may have lost much of your retirement savings. What do you do?
Individuals, especially baby boomers, who had chosen to defer retirement for a few years are now forced to work even longer. Conversely, those who have retired in the last two years are faced with an even greater challenge.
Here is one woman's account of how retiring early affected her. "As one who retired two years ago at age 57, I have seen my 401K plummet 30% or more. ...
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