The year-end holidays approach, and bring lots of things to do. Yet with holiday cheer there are financial plans to make, too.
At some point, almost everyone changes jobs – often leaving behind retirement plans such as 401(k)s. Conventional wisdom holds that you roll that old employer-sponsored plan into a new individual retirement account. But what kind of new IRA?
If you’re like most taxpayers, you have no clue about the most effective tax strategies for these financial vehicles – especially if you lack access to expensive accountants and attorneys. Here’s some guidance.
Land a great new job? Awesome. Now is the perfect time to think about your 401(k) and retirement plan, whether you had one before or not. Saving for retirement is important at all ages, so don’t let this opportunity fall to the bottom of your list.
Turning your individual retirement account into a Roth IRA is not a totally black-and-white decision. Understand the rules first, especially relevant tax laws.
Traditional IRAs are largely based on income tax deferral, which means you get a tax break on your contributions in the current year. In retirement, your withdrawals incur income tax.
Many Americans are woefully clueless about finance, to their detriment. But education programs to boost their financial knowledge don’t seem to make them any smarter regarding money. So we should scrap financial literacy endeavors, right? Wrong. We need more and better.
Peaks and valleys of the market probably give you fits about your investments in retirement savings accounts. Nobody can tell when Wall Street’s ups will peak and its lows bottom out, but you can protect yourself with patience and a cool head.
People often have lousy asset allocation in their retirement plans. Overdone risk avoidance and other behavioral tics combine to ensure they probably will not create the wealth they need to retire comfortably.
Here is a conversation I've had too many times: An acquaintance says proudly that he invests the maximum into his 401(k). I ask what allocation he's made between equities and bonds. He says he just divides his contributions equally among the four investment choices the plan offers. I cringe.
The explosion of the 401(k) and decades of dwindling employer pensions powered mutual funds to dominance in the investing landscape. The funds, once meant to simplify investing for the little guy, flourished to the point of becoming almost as confusing to pick as individual stocks. What can you look for?
Despite a small slide in September and recent days' whipsawing, U.S. stocks remain near their all-time high. Should you worry that this bull market is ending? No. Such records are meaningless. Moreover, there’s a leeriness in the air – call it acrophobia, or fear of market heights – which usually is the opposite of a signal that a rally is doomed.