Think about why you are saving money. If your reason for saving is so you can buy a lot of “stuff”, this information will not speak to you. If your goal is a financially secure future, these 10 steps are for you. The key to being able to retire without financial worries is building a […]
Archive for Retirement
What Can You Afford?
Afford is a tricky word. Many people think of how much money they have available in their wallets or checking accounts and believe if they can pay for it at the time, then they can afford it. Purchasing something on a credit card with the mindset that you can meet the minimum payments each month […]
What is a Highly Compensated Employee (HCE) and Should You Care?
In most cases employees are happy to know they are considered “highly compensated”, but when the Department of Labor (DOL) is reviewing your company’s 401(k) plan it’s not such a good label always. Being labeled a highly compensated employee (HCE) can reduce the amount an employee may contribute to his or her 401(k). The idea […]
Retirement Plan Contribution Limits for 2012
The IRS is allowing investors saving for retirement to add a little more to most of their tax deferred accounts than previous years. The 2012 contribution limits cost-of-living increase for IRAs (Traditional, Roth, SEP) and 401(k) plans are listed below. 2012 Combined Traditional and Roth IRA Contribution Limits If you are under 50 years of age at the […]
Is Now the Best Time to Refinance a Home Mortgage?
Every time mortgage rates start falling home owners wonder if they should refinance their home mortgage. The biggest questions to answer are how long you plan to stay in your house and how much can you save each month after refinancing. By knowing your monthly savings you can figure out how quickly you can make […]
A Better 401(k) Plan
For years, even before I got into the industry, I’ve heard participants complain about companies’ their 401(k) plans. This longing for a better 401k plan grew from complaints that ranged from lack of fund choices and lack of employer matching contributions to high expenses in their fund choices. ERISA requires 401(k) plans to provide at […]
How Big Does Your Nest Egg Need to be to Retire?
Anyone who plans to retire at some point should run through this abridged formula to get an estimate of where they stand with their retirement goals. Five major questions need to be answered when figuring out how much money you will need to save to retire and live a lifestyle similar to what you are […]
SEP-IRA Pros and Cons
A SEP-IRA is a Simplified Employee Pension plan in the form of an IRA (Individual Retirement Account). A SEP-IRA allows employers a easy way to contribute to their employees’ (and their own) retirement. To fund a SEP-IRA, an employer contributes directly to an IRA for each employee in an equal percentage basis (See IRS Publication 560). The […]
