Retirement Advice | RetirementAdvice.com » 401K

How to Determine the Size of a 401k Nest Egg?

walter — Sat, 08 Jan 2011 18:58:22 +0000

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?

walter — Tue, 26 Oct 2010 15:42:44 +0000

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 In fact, since taxes are only due when funds are withdrawn from a 401(k) account, it is possible for your contributions to grow for...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

admin — Wed, 24 Jun 2009 17:44:53 +0000

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?

admin — Sun, 08 Feb 2009 03:05:33 +0000

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?

admin — Sat, 07 Feb 2009 03:27:11 +0000

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

admin — Fri, 06 Feb 2009 20:22:05 +0000

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. ...