Posts Tagged ‘retirement’
Why Is Your 401(k) In Trouble? Because You Don’t Have Time To Read This Post
Our lives are as busy as ever. Family, school activities, committees, church, associations…oh, and that job thing too. These are the days of never really “disconnecting” with laptops, netbooks and smart phones constantly keeping us informed and “connected.”
Additionally, the multitude of responsibilities we are responsible for continues to increase. Your 401(k)? Yeah, that’s one of them. Lack of time is the #1 response people give us when they sign up for our BeManaged or BeAdvised service.
Read MoreAmway Demonstrates Employee Focus via 401(k) Advice and Financial Counseling
Late last year, Amway concluded a three year nationwide due diligence campaign for fiduciary 401(k) advice and hired BeManaged, powered by local firm Actium LLC, which provide professional ongoing account management and investment advice through Amway’s existing 401(k) plan, administered by Fidelity Investments. Over 1,000 Amway employees took advantage of BeManaged’s free 1on1 consultations provided over a 90 day period, which helped them understand what kind of investor they were, and then comparing that with how they were actually invested, and then allowed them to decide if they wanted to utilize BeManaged’s management or advice services.
Read More5 Dumb Investing Mistakes to Avoid
We don’t call anyone dumb, because when it comes to investing, really “smart” people make as many or more mistakes as investing novices. The underlying issue? Our behavior and choices, which are often misguided by emotions. Investment behavior’s impact on investors’ returns have been well documented over the past few years. This is evidenced by the book referenced in article below, Why Smart People Make Big Money Mistakes, as well as by our friends at BehaviorGap.com.
Read More401(k) Investors: Keep Retirement Planning Simple
The video below is a very concise, simple advice on planning for your retirement by focusing on the KISS principle: Keep It Simple Stupid (I have to remind myself of this all of the time).
Here are some key points covered to focus on:
Save – You are responsible for your own future, do not expect the market’s returns to bail you out.
Understand Yourself – Risk is critical, so if you don’t understand it (most don’t), get some help.
Don’t Chase Returns – It’s a “loser’s game” based on the emotional response we have with this strategy.
401k Investors – Why Many Investors Keep Fooling Themselves
As an investor, understanding what is possible and what is fantasy is very important to understand. One of the biggest fantasies we see in our 1on1 consultations with 401(k) investors are those individuals that have a “return goal” for their account. Thus, they will chase returns throughout their plan, from one fund to another, often missing the actual big returns of that fund.
Read More401(k) Investors – 2010 Contribution Limits and Savings Tips
Every year, the IRS sets specific limits on how much money 401(k) investors can stuff away into their retirement account. In 2010, there are no changes from 2009, as you can see below:
Read MoreSlow & Steady: Winning the Investment Race – BehaviorGap.com
Our friend Carl Richards of BehaviorGap.com is a talented writer and communicator when it comes to investing concepts and the impact of behavior on investment performance. We can all identify with the concept of looking for the next hot investment versus a risk appropriate, savings-based approach to the retirement marathon. Which one are you?
Read MoreWarning: Your 401(k) is not a Savings Account
When money is tight many people turn to their 401(k) or other retirement plans for some quick cash. If your retirement plan has a loan provision, you may be tempted to borrow money from it since you’ll just be paying yourself back. While that is true, even though you do pay yourself back over time, you can end up doing more harm than good.
Read MoreConverting To A Roth? 12 Tips You Should Know
Roth IRAs are a great option for many investors who wish to set aside more money for retirement above and beyond the contribution limitations imposed on 401(k)s. They allow you to pay taxes on your contribution up-front in exchange for tax-free growth and tax-free distributions once you retire.
Read MoreShould You Try To Be Mortgage – Free in Retirement?
During 1-on-1 401k consultations, we often run across this question:
Should I get rid of my mortgage before retirement?
In a word, YES.