If you participate in a 401(k) retirement plan at work, you must constantly consider many choices: how much to save, whether to select a Roth option (if offered) or a traditional tax-deferred individual retirement account and what plan investment options to select. Your financial future depends a lot on you, and here’s what to know and do.
Over your career, you will probably face a year or more with limited income. Believe it or not, these situations present powerful savings opportunities, generally only for a limited time. Here’s what to know to take advantage, especially regarding your taxes.
Over your working career you might well accumulate many individual retirement accounts, especially if you switch jobs frequently. Eventually your annual statements will start pouring in from all of these accounts and you’ll learn the modern stress of tracking all the accounts housing your golden years’ money. Here are tips to make this critical financial task easier.
Many boomers keep most savings in either 401(k) plans or traditional individual retirement accounts. If you’re in this generation, born between 1946 and 1964 and with a few working years remaining before retirement, consider converting your IRA to a Roth.
When contributing to your employer-sponsored plan, you can choose to defer your income by a dollar or a percentage amount. The smart thing to do is to opt for whichever makes you save more.
Great financial planning requires you to employ two contrasting skills: Focus intently on your end objective, whether a comfortable retirement or a certain net worth; yet remain flexible for the inevitable bumps in the road. How can you balance the two? What financial tools can help you most?
Consolidating multiple retirement accounts into one makes it easier to manage. But do you know what money you can roll over to where? Here’s a breakdown of your options.
So you make too much money to qualify for a Roth individual retirement account. What if you still want to have sources of tax-free income in retirement, which is what a Roth gives you? I present the backdoor IRA, a way to establish a Roth despite the income limits.
We pass many lessons on to our kids, from teaching them how to ride a bike to helping them deal with pressures at school. Yet we rarely discuss one of the best bits of lifelong wisdom: the importance of investing early and often.
Most Gen-Yers don’t know what types of retirement accounts to start with. I break down the pros and cons of two most popular ones - 401(k) and the Roth individual retirement account - to help you decide which is right for you.