Retirement Solutions: An Introduction to 401(k) Plans and IRA

401(k) plans and IRAs are two of the most popular ways of building a retirement fund. Here is a brief overview of these two options:

401(k) plans

401(k) plans are primarily employer-sponsored retirement plans for employees. Under these, the company can offer you some investment options to choose from. The 401(k) account is managed by the employer, where they deposit a part of your wage along with a matching contribution from the company. These funds are invested by investment experts, depending on your plan options, into various instruments.
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Be Proactive in Managing Your 401(k) Investments

401(k) is a retirement plan that can receive contributions from both the employer and the employee. Your contribution is taken from the salary before calculating your taxable income, which is one of the most significant benefits of the plan. Usually, companies match the contribution made by the employee. This is one of the major differences between IRA and 401(k) plans since IRA plans do not usually get employer contributions. [Read more…]

Start a Small Business to Ensure a Steady Income in Your Post Retirement Years

When you have worked hard and earned a steady income for the better part of your life, retiring with no monthly paycheck might seem a little scary. Consider your options. They may not be restricted to 401ks, annuity savings and IRAs. Thanks to the constantly evolving marketplace and the internet, there are several opportunities for those who wish to earn an additional income. [Read more…]

Tax Advantages of Contributing Towards 401(k)

Making a retirement fund does not seem to be a priority for most people. Those who are young feel that it is too early to start saving for retirement when there are always other payments to make. However, there are many reasons why you should start taking your 401(k) contributions seriously. Other than your employer’s contribution for building your fund, there are many tax benefits of contributing to 401(k) as well. [Read more…]

How to Get Back on Your Feet After the Recession

The economy has recovered from the recession and is again growing at a good rate. The value of stocks has started rising again and investor interest in stock market is slowly picking up. The government is also retracting some of its liberal policies that were introduced to deal with the recession and the inter-bank lending rate could soon be increased by the Fed. [Read more…]

How to Build Your Retirement Savings

When you are young, retirement seems like a distant prospect, which you do not need to worry about. However, before you know, time will fly and you will be close to your retirement age. Instead of being sorry later, it is better you start investing when you still have ample time to build your retirement savings without unnecessary pressure. If you start early, you get more time to earn higher returns on your investment. [Read more…]

Retirement Planning for Late Starters

For those who have ignored the fact that at some point of time they will no longer draw a monthly paycheck, a looming retirement date can give nightmares. While it is certainly not advisable to leave retirement planning until the last, it is also true that it is never ‘too late’ to start doing something about it. After all, some retirement fund is better than none at all. [Read more…]

Financial Considerations for the Most Expensive Years of Your Life

Retirement is inevitable. There will be a time in your life when you wouldn’t be working any longer in your regular job. But did you know that the post retirement period can be quite expensive, especially because of medical costs? [Read more…]

Benefits and Disadvantages of Roth 401(k) Plan

Roth 401(k) is a retirement savings plan which combines the features of Roth IRA and a traditional 401(k). If you are expecting an increase in tax rate when you retire, then Roth 401(k) plan is likely to be beneficial as the tax distributions after the maturity age will not be taxable. Also while switching employers, Roth 401(k) plans can be rolled over to a Roth IRA or to another Roth 401(k), which is a great flexibility that you can use. [Read more…]

It May be Time to Change Your Investment Strategy

The old wisdom about investing your money included avoiding touts, looking for low cost investments, being consistent, and keeping a diversified portfolio. However, there are certain changes that you should bring in your investment strategy to adapt to the changes in the economic situation. [Read more…]

New Proposal for Evaluating 401(k) Retirement Plans

The Department of Labor has come up with a new proposal that 401(k) retirement plans should only be evaluated on the basis of fees and other charges. The computerized advice models will not factor in the history and performance of these funds. [Read more…]

Rethinking Investment of Retirement Savings in Your 401(k) Plan

If you have been investing the money for your retirement savings in a 401(k) plan offered by your employer, then it is time to rethink your strategy. Although, 401(k) is considered almost sacred as far as retirement savings go, its value has been decreasing lately. [Read more…]

Unemployment Tax Benefits that You Should Be Aware Of

Paying taxes is never pleasant, and the experience can be even worse when you are unemployed and trying to hold on to every dollar of your savings. But by judicious tax planning and careful application of the rules on deductions, you stand a good chance to get some much needed savings while filing your taxes. [Read more…]

Preparing to Die and Retirement

More and more groups like International Living, an emailing promoting the merits of living and retiring abroad, are springing up each month to meet the needs of people who less and less see a retirement in Arizona or Florida as a possibility. This comes as no surprise to the thousands of people who travel to Costa Rica each year. [Read more…]

Organization Your Personal Finance in 4 Steps

When it comes down to it, personal finance has a lot to do with organization. You can make all the right decisions, invest in all the right places, and know about all the right options, but if you cannot keep track of it all it can turn out to be a lost cause. With that said, here are some quick and easy tips on organizing your finances and getting your money in order. [Read more…]