by: Simon Fox
Taking full advantage of your 401(k) plan today can help you achieve financial goals sooner, and provide enough income for a comfortable retirement. For most working people, Social Security checks alone will not be enough to maintain the standard of living they are used to, once they are no longer working. If you are lucky, your employer offers a 401(k) plan which, if used wisely and to the fullest advantage, can provide you with additional income for your golden years.
401(k) plans differ greatly depending on the employer who sets the rules. The only way to get the most out of the plan is to get to know it and make educated choices.
Things you should know:
- What is the maximum percentage of your salary you are able to contribute (see also 401(k)contribution limits set by IRS)?
- Is your employer matching the contributions? If yes, what is your minimum contribution, before your employer?s contribution starts, and what is the maximum?
- What are the number of years you have to be with the company (so called vesting) to be eligible for the employer?s contributions to your 401(k)?
- How often can you switch among available investment options?
- Are earnings posted to your account on a weekly, monthly or quarterly basis? When do you get your account statements? Note, it is always more beneficial if earnings are added to your balance more often.
- What methods can you use to access the account? By phone, on the internet or only in writing?
- Did you spread your money among different investments to reduce the risk?
- Did you learn enough about the investments you are using?
Do you know that 401(k) plans are not insured by the federal government, and its investments are at risk? However, different investments carry different degrees of risk. It is always best to diversify your investments by investing in different types of assets. To find out more about 401(k) investment options, ask your plan administrator for information. Financial magazines, prospectus and brochures can be a good source for learning about particular investment options.
About The Author
Simon Fox For more tips regarding 401(k), IRA plans and other retirement investing topics visit: http://www.HowMuchAnswers.com.
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The End Of A Dream, What Economic Factors Are Stimulating Self Directed Investment Market?
The End Of A Dream, What Economic Factors Are Stimulating Self Directed Investment Market?
by: Joshua Geary
The 40 Year Plan is Over
What is truly driving the market of self directed retirement investing?
Is it the buff real estate market?
Or are there other economic factors?
Unbeknownst to 98% of working people, the 40 year plan is over.
Statistics show that by age 65 less than 2% of Americans can truly retire in comfort without the help of family members or the government.
The lackluster performance of the stock market over the past 6 years has dashed many people's hopes of retiring early.
It used to be that you could get a great education, get a great job and settle with a company by 25 years of age, keep your nose clean, work your way to the top, invest in your companies stock and by age 65 retire the company you sacrificed for will take care of your retirement and medical expenses for life.
Ira > The End Of A Dream, What Economic Factors Are Stimulating Self Directed Investment Market?
Does Early Mortgage Repayment Still Make Sense?
Does Early Mortgage Repayment Still Make Sense?
by: Stephen L. Nelson, CPA
Early mortgage repayment looks on paper at least like a wonderful deal. If you have a typical mortgage and you are near the beginning of the mortgage term and make an extra $25 a month in principal payments, you could potentially save $25,000 in interest over the life of the loan.
Note: The exact amount of early repayment savings depends on the loan, but, in general, the apparent savings are astounding.
In spite of the superficial profit that seems to come from early mortgage repayment, it?s often not a good decision. The tragedy here is if you would have used that $25 a month to boost your individual retirement account, or IRA contribution, you would end up with $50,000 in your IRA account. If you would have used the $25 a month to make extra contributions to your employer?s 401(k) plan, you might have easily ended up with $75,000 in a 401(k) account.
The...
Does Early Mortgage Repayment Still Make Sense?
Ira > Does Early Mortgage Repayment Still Make Sense?
Traditional IRAs: Still A Good Idea for 2006
Traditional IRAs: Still A Good Idea for 2006
by: Ken Morris
Mark Twain once said, "The rumors of my death have been greatly exaggerated." Like Mr. Twain's rumored demise, the notion that the traditional Individual Retirement Account (IRA) is no longer a useful part of a financial plan has been greatly exaggerated. Contributions to a traditional IRA continue to be a viable financial and retirement planning tool despite non-deductibility for some individuals.
All you need to make a traditional IRA contribution are earnings as an employee or as a self-employed person. The amount that can be contributed for 2006 is the lesser of $4,000 ($5,000 if you have attained age 50) or your earnings from your work. There is no minimum age for making a traditional IRA contribution for tax purposes. If a 16 year old works for the summer, makes $4,000 and blows it all at the mall, the tax code permits Mom, Dad or whomever to give him/her $4,000 to contribute...
Traditional IRAs: Still A Good Idea for 2006
Ira > Traditional IRAs: Still A Good Idea for 2006
Hidden Tax Opportunity For Tax-Deferred Investments
Hidden Tax Opportunity For Tax-Deferred Investments
by: Ken Morris
As IRA and other retirement plan account balances continue to grow larger, often into very significant amounts, the need to understand tax characteristics becomes more critical.
These types of accounts offer the tremendous benefit of tax deferral, as everyone is well aware, but a ?taxing? problem may remain upon the death of the participant. This quandary is known as income in respect of a decedent. Income in respect of a decedent is income to which the decedent was entitled, but due to his or her death was not includable in his or her taxable income. In other words, IRD assets do not receive a step-up in cost basis at death like capital assets. Therefore, they are taxable to the estate or the heir who receives them.
Another unique characteristic of IRD assets is potential dual taxation. They are included in the gross estate of the decedent, so they are subject to estate...
Hidden Tax Opportunity For Tax-Deferred Investments
Ira > Hidden Tax Opportunity For Tax-Deferred Investments
Taking Full Advantage Of Your 401(k) ? How Well Do You Know Your Plan.
Ever wanted to make your own Themed Gift Baskets?
Ever wanted to make your own Themed Gift Baskets?
by: Donna Hamer
If you?ve always wanted to know how to make your own gift baskets, this article will give you some tips to get started. Gift baskets are such a wonderful gift and can be given for any occasion. Creating personalized themed gift baskets is a great gift to give that someone special. Gift Baskets are easy to make and a joy to give.
When creating a themed gift basket, don?t limit yourself...
Taking Full Advantage Of Your 401(k) ? How Well Do You Know Your Plan.
Ira > Ever wanted to make your own Themed Gift Baskets?
Taking Full Advantage Of Your 401(k) ? How Well Do You Know Your Plan.
How Checking Works
How Checking Works
by: Jakob Jelling
Help yourself avoid overdraft fees by understanding checking.
While there is a lot of attention put on people who get into financial trouble based on the amount of money that they charge to their credit cards, that is not the only problem that people commonly have. For instance, checking accounts can cause trouble as well, especially if you do not know how checking works. Therefore, before you start using your checking...
Taking Full Advantage Of Your 401(k) ? How Well Do You Know Your Plan.
Ira > How Checking Works
Taking Full Advantage Of Your 401(k) ? How Well Do You Know Your Plan. sample resume Ira
Taking Full Advantage Of Your 401(k) ? How Well Do You Know Your Plan.