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Tag Archives: 401k

How Job Hopping is Harmful to Your Retirement Savings

Job Hopping

While some people choose to stay at the same job for their entire career, others have a habit of changing jobs every year or two. This habit is known as job hopping. Job hopping may not be a bad thing if you are young and the positions you hop to are higher paying or with better benefits. However, there are times when job hopping can be harmful to your retirement savings. Cashing Out Should you choose to leave your job after only a year or two, you may think you should simply cash out your 401(k) when you leave. Think again. Cashing out your retirement plan early means you may only be able to receive a portion of it. The reason for this is because early withdrawal usually causes you to incur penalties and fees. A couple of better options would be to move it with you to your new employer, if they allow it, or to roll it into an IRA. Not Being Fully Vested When you are investing in a 401(k) plan, it usually takes three to five years before you are fully vested. If you choose to leave your current employer and go to work for a different company ...

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Should I Contribute To A 401k, Roth IRA, Or Health Savings Account?

Investing with Betterment

This is not a post for someone who has never invested in anything. If that’s you, it’s time to start. Pick something easy like your work 401k or a Roth IRA. This post is for those who are trying to build wealth while minimizing taxes and fees.It also assumes that you have access to more than one type of retirement account and are eligible to have a health savings account. If that’s you, today I want to examine whether it’s better to invest in a 401k, Roth IRA, or HSA. While, ideally, we’d max out all those accounts ever year, realistically, many people have to choose where to put their money. All of that depends on your age, tax bracket, and how much you have to invest. 401k The 401k is maybe the easiest of the three. Generally, if you work for an employer who has a retirement plan, you’ll fill out enrollment forms, select which fund you want, and determine how much to contribute, up to $17,500 a year if you’re under age 50. People over 50 can add an additional $5500 per year in 2014. Even if you are self employed, you can still contribute to a solo ...

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Retirement Planning Made Simple

making a retirement plan

Joe Foley is personal finance blogger and the author of ‘We Got Outta Debt’, the story of how his family paid off $68,000 in a little over 3 years. His new book, “Retirement for the Ages” is due out in December. A h the Golden Years. If you’ve saved well, they truly can be Golden, if not so well…. maybe a Silver or Bronze is in your future. Some aspects of how much you save is out of your control. The recession of 2008-09 hit retirement account hard. An AARP survey from 2011 stated that from 2008-2011: 25% of Americans 50 and older emptied their retirement savings 29% claimed their retirements early due to unemployment Many more retirees are carrying debt into retirement While the cause of this is not in your control, preparing for retirement earlier in life definitely puts you in a better place in case any of these events take place. Planning for a recession is a bit extreme, however planning for unemployment and reducing debt are things directly in your control. How do you do this? Follow Grandma’s basics. Create a budget. Just because the US Government doesn’t have one, doesn’t mean you shouldn’t. A Budget, or ...

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5 Best Ways to Invest Your Money

This post was submitted by a guest author. If you would like to contribute a guest post, please contact me.  Investing wisely is the best way to increase your net worth over time. On the other hand, investing poorly can result in a significant loss of money for you. Most financial experts recommend diversifying your investments by distributing money into a variety of assets. No matter how promising and profitable a new company might seem, it’s never wise to invest all your money in one place. Having multiple streams of income is always better than having just one, because if an investment of yours fails and you’ve got others to back it up, you can cover the losses with one of these additional investments. While nobody can guarantee that an investment will pay off, there are basic investing dos and don’ts that everyone can benefit from. Here are the five best items to invest your money in: 1. Certificate of Deposit (CD) If you have a specific amount of money that you know you won’t be needing for immediate expenses, invest it in a CD. When you invest money this way, you are basically loaning it to a bank or ...

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Pensions and Investments – When Some People Aren’t Ready to Give Up

The following is a guest post from MMD at IRAvs401kCentral.com. IRA vs 401k Central is a website that looks at leveraging the benefits of your investment options so that you can get the most out of your retirement savings and build the biggest nest egg possible! The other day I was visiting a customer off site when we got into a discussion about retirement pensions and investments. He was walking with me to the front entrance and was just trying to make small talk. He asked if my work provided a good 401k plan, and I let him know that they do. He then mentioned that his company (one of the large automakers) was trying to push people into 401k plans. Being from the older generation (this man was older than my father), he felt that it was wrong for his company to do that and voiced his disapproval. Clearly he was far more comfortable with the notion of receiving the set payment for life that a pension would bring. His reasons: 1. The pension is guaranteed for life 2. You don’t know what is going to happen in the stock market. He cited the Great Depression of 2008 as ...

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