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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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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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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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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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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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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While there are many popular target funds out on the market, many do not provide the return you are looking for down the line from your investment. Target funds are often recommended because they are conservative and are balanced in a way that is aligned with your target retirement date. Target funds are low maintenance, and help investors keep a diverse and balanced portfolio. Despite these positive attributes, there are several ways in which these funds won’t meet your expectations for a balanced and successful investment portfolio.
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We have touched on 401k fees in various articles because they are one of the most misunderstood parts of 401k plans. Understanding your employer fees and as well as your financial advisor’s fees is just as important as all the fees associated with the investments themselves. Fees can alter your investment strategy and the allocation of your investment portfolio. They also alter the returns you can expect by your retirement target date. Just as you are responsible for various fees, so are your employers so be sure you get full disclosure. Most fees come directly out of your assets. You can check your account statement, annual report or the summary plan for all the information regarding fees. Below are 4 kinds of fees associated with 401k plans.
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Maximizing your company’s 401k is one if the best way to ensure a good retirement. We have discussed the importance of a well balanced and well allocated 401k plan. It is important to spend time assessing your investments but it is also essential to understand your company’s 401k plan itself. The following are 5 important things to learn about your company’s 401k plan.
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Even if you educate yourself and work with a trustworthy and respected financial advisor you can still make plenty of mistakes with your 401k investment portfolio. Here are the top 5 most common mistakes made by 401k investors.

1.Believing that your 401k is Free
Sorry to break it to you but investing and maintaining your 401k is far from free. Everywhere you turn there are fees so make sure you educate yourself to learn the full costs of the 401k plan. There are annual expense fees, front and back load commissions on trades, termination fees and administrative fees just to name a few. While you want to make smart investments and allocations, understand that every trade costs money and those costs need to calculate into your profit. Remember to break even on the trade you first have to earn the commission back, and then you can start thinking about profits.
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