When you change jobs, it may be tempting to cash out your 401(k) plan. But doing this could derail your retirement savings just when it’s important to keep your money growing tax-deferred. Rolling over your assets to an individual retirement account (IRA) is one of the most popular options available to help keep your money [...]
Boomers on the Brink: Issues Affecting Participants as They Approach Retirement Estate planning is not just for millionaires Having a core set of current planning documents, including a will, power of attorney and health care proxy, is critical to ensuring your wishes are carried out after you die. The operative word is “current.” You need [...]
There are some key differences between these two types of individual retirement accounts (IRAs). While the contribution limits are the same for both, each has its own specific rules and potential benefits (see table below). It's important to review both types of vehicles and plan your IRA strategy carefully. No matter which type you choose, [...]
Putting off retirement savings is a missed opportunity Most people start saving for retirement at 35—fully 10 years beyond the ideal age, according to a recent Financial Engines survey.1 Reasons to procrastinate are familiar to many. But delaying your savings can be costly, as the chart below shows. Let’s say Tom starts saving 6% of [...]
When changing jobs or leaving employment, decisions you make about taking money from your plan can have serious tax consequences. Here’s what you need to know. Your Options Pros Cons 1. Roll over to an IRA Continue tax-deferred growth Avoid early withdrawal penalties Have flexible investment options Can choose a Roth after-tax IRA Consolidate your [...]
In your 20s, the horizon seems limitless. You’re in your first grown-up job, making a regular paycheck. You may be tempted to spend it on fun stuff. But here are four areas that should take priority. Pay off credit card debt. If you carry a hefty monthly balance, or are just paying the minimum interest, [...]
New & old concepts to address the retirement savings gap. How many 401(k)s have more than $100k in them? According to the Employee Benefit Research Institute (EBRI), the average 401(k) balance at the end of 2012 was $63,929.1 Is this enough money to retire on? No – and this is only part of America’s retirement [...]
Here is what you need to know for 2014. Financially, many of us associate April with taxes – but we should also associate April with important IRA deadlines. *April 1 is the absolute deadline to take an initial IRA Required Minimum Distribution (RMD). *April 15 is the deadline for making annual contributions to a traditional [...]
How good a year was it for the economy? Statistics tell the tale. Was 2013 a terrific year for stocks? Absolutely. The good news wasn’t limited to Wall Street, however: the employment rate fell, the economy revved up, home prices rose and inflation pressure was minimal. Bulls triumphed. Christmas Eve brought the Dow’s 49th record [...]
If you’re 40 or 50 and haven’t begun, you must make the effort. Some people start saving for retirement at 20, 25, or 30. Others start later, and while their accumulated assets will have fewer years of compounding to benefit from, that shouldn’t discourage them to the point of doing nothing. If you need [...]
