Archive for the 'Retirement Planning' Category

Source: Tarrou’s Chalk Talk is a rather high energy classroom style presentation that is both a common sense approach and a nice blend of humor. His attitude is realistic and brings a change of attitude from the old school concept of just saving money to putting money aside that grows with compound interest.
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This Total Options Blueprint video is a nice review of the 401k and the variables in life that can affect the investment. A very real approach that incorporates lifestyle, inflation and how a 401k investments can make or break your retirement efforts. Continue Reading »

A new report from the National Employment Law Project is indicating that while most of the jobs that have been lost due to the downturn of the economy were middle income wages, the new jobs that are being added are typically low income positions.
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The rule of thumb in planning your retirement years is that you need twenty times your annual income. That’s just not where most people will be, by a long shot.

Forty nine percent of Americans that are nearing retirement age are showing less than $30,000 put aside for retirement. This is mainly due to the bad economy, loss of jobs and lowered income over the last number of years. If you equate that into retirement dollars, it means that these individuals will be living at the poverty or below poverty level, with around $5 per day to devote to food.
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The 2010 401k Contribution Limits for Your Wealthy Retirement

The 401k plan is probably the most important retirement account that employees have these days. Hence, the 401k contribution limits are a much-discussed topic. In this article I have discussed the 2011 401k contribution limits, as well as projections for 2012.
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Ira Versus 401k – What Are The Benefits Of Each?

Financial planning is a headache for some, fun for others, but with so many options available, it can make your head spin, and it can be extremely difficult to decide on the best options. A common problem is the IRA versus 401k dilemma. Or maybe it’s best to have both? Here I will talk about each one separately, exploring their benefits, to help you make a more informed decision on IRA vs 401k.
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401k Rollover Options – The Pros And Cons

It is much better to look forward to retirement rather than fear it, isn’t it? To make the transition easier and more enjoyable, you should know exactly how and when to execute the rolling over 401k. Because our present economic environment is so volatile, unemployment is rampant, the future of Social Security benefits is highly questionable, and business failures are widespread, it is imperative to take an active role in planning your retirement.

When looking at your 401k rollover options, it’s more prudent to proceed with caution. After all, that money will need to last you for a long time yet. Unfortunately, 401k retirement plans have had major losses in the last few years, and, of course, you wouldn’t want to see your money just vanish. One of your options is to cash out a retirement plan, but this move is not considered the wisest, because of early withdrawal penalties. The tax liabilities here are quite substantial as well. A more wise thing you could be doing is rolling over 401k.
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How To Retire Early – 5 Important Strategies

More and more people are now living longer and taking an early retirement, which makes it more imperative than ever to save enough money, so you can live your retirement years to the max. The question of how to retire early is becoming of increasing importance, as the official retirement age gradually creeps up. So here bare my five important strategies:

1) Start saving lots and early. Compounding can have a dramatic effect on your savings. For example, if you are 25 years of age, and you start putting away $100 a month, which rolls up 7 percent annually, you will have over $200,000 waiting for you when you are 65! But if you wait until it is, say, 5 years until your retirement to put away those $100, you will end up with less than $145,000. So, clearly, the younger you are, the more you stand to save for when you are older.
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Borrowing From 401k – Is It A Good Or A Bad Idea?

In these times more than any, many people are considering borrowing from 401k for one reason or another. But is it really a good idea? In this article I have examined a situation in which it would be a valid option to borrow against 401k, and also reviewed the main reasons to not borrow against your 401k.

A Valid Reason to Borrow Against Your 401k:

Your vehicle is making strange sounds and is in desperate need of repair. This vehicle is of crucial importance, as you use it every day for work and other purposes. It will cost you about $2,000 to get it repaired. You could use your credit card to get it done, but then you’d have to pay about 20 percent in interest rates. You have no other access to funds. So, in this case it might well be appropriate to borrow from your 401k.
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5 Ways to Keep a Balanced 401k Portfolio

Maintaining your 401k is by far one of the most important things you can do for a financially safe retirement. Most employers, at least at large companies, offer 401k matching programs which makes signing up for a 401k even that much more appealing. The problem is that most people do not rebalance or reallocate their money over the years and end up cheating themselves out of great returns. Below are 5 important investment strategies to keeping a balanced 401k portfolio.
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