Everyone who participates in their employer’s qualified retirement plan - like a 401k, 403b or 457 - makes certain assumptions and has some understanding of what they can and can’t do with their own money in that plan.For simplicity, we’ll refer to them all as the familiar 401k.After all, the tax code is pretty clear on how qualified retirement plans may be structured and what provisions may be included. But here’s the rub: Employers are required to include some, but not all, of the IRS-allowed provisions in their 401k plan. This leads to some significant differences among 401k’s from company to company.Employees, without knowing it, can base important decisions relative to their account in their employer’s 401k only to painfully discover that not all 401k’s are created equal. These distinctions relate not only to those who are currently employed but to those who left employers but kept a 401k with the previous employer.Because of this rather … [Read more...] about All 401k, qualified retirement plans are not alike
Byron Moore Published 1:52 PM EDT Mar 30, 2019 “Oh, no, not again…” He wanted to look away, but something kept him coming back, looking at the carnage over and over again. Each day it seemed to get worse. Eddie remembered when this had happened before. What was it…ten years ago? He’s seen the account balance in his 401K plan plunge. Every night on the news and every day on the Internet, he kept reading about “financial melt downs” and “toxic securities.” He wasn’t sure what was toxic and what was melting, but he knew it was bad. It made Eddie very, very nervous. But his mentor at work said he’s seen this a bunch of times and it always came back. So, he hung in there. After several months, he noticed his mentor didn’t want to talk about it anymore. He would later learn that the mentor he thought was so confident had crumpled under the pressure of impending retirement. He sold out of his aggressive investments … [Read more...] about Should I stay or should I go? 401K plans and the last few years prior to retirement
401k investment portfolio, financial statement.jpg Financial Planner Tim Moomey joined NTV's Good Morning Nebraska to talk about 401K plans and retirement accounts: "Lots of people have retirement plans at work. However, most of those nowadays are what we call 'defined contribution plans.' Some of us have parents or grandparents that retired, received the nice watch and had a pension plan that paid them something for the rest of their lives. That was called a 'defined benefit' plan. Those days are pretty much over. There are still a few of them out there, but for the most part, they have been replaced by what we call, 'defined contribution' plans. These are 401k's, SEP-IRA's, SIMPLE IRA's, and others, and the ending amount in your plan is a direct result of how much you put in to the plan. What we have to remember here is that this is the employees' retirement plan. It’s wonderful and very helpful if the employer contributes or matches into the plan, but the fact is … [Read more...] about Financial Planner: 401K plans and retirement accounts
24 Comments By John Clarke John Clarke The Wall Street Journal BiographyJohn Clarke Oct. 18, 2018 1:27 p.m. ET TEMPLE OF TUNES For compulsive stereo aficionados, not just any vintage amp will do. Illustration: DAVE URBAN VINTAGE-AUDIO collectors are a peculiar breed of relic hunters—never still, rarely pleased, steadfastly in pursuit of another sonic fix. Many of them may begin collecting affordable vintage gear as a hobby, only to quickly scale up their compulsion, “always looking for the next upgrade, or the perfect component,” said Adam Wexler, owner of StereoBuyers in Brooklyn, N.Y., which specializes in buying and selling high-end vintage-audio equipment (stereobuyers.com). “People obsess over this stuff, but that’s part of the enjoyment.” While modern tech geeks covet the latest novelties—brighter! faster! newer!—these dogged audiophiles are quixotically focused on tracking down the right thing. And many of … [Read more...] about Addicted to Audio: Why Music Obsessives Blow Their 401Ks Chasing Down Vintage Gear
Chris Clark and Jim Heffner are making plans in their dream home. It's a place they might not have been able to buy without an emergency loan from Clark's 401K retirement plan. "Borrowing against the 401K seemed to be best option that we had," Clark said. Clark and Heffner moved from Arizona. Their money was tied up in property there. The loan allowed them to buy a home in Florida without selling the Arizona house right away. Heffner, who is a realtor, said he sees his clients do it as well. "We personally didn't feel like it was a real risk in doing it," Heffner said. Sometimes it's ok Financial adviser Eric Klaus said despite the myths, sometimes it's OK for people to consider dipping into their 401K savings. "You can only take 50 percent of your vested balance, or $50,000," said Klaus, President and owner of Klaus Financial Group. "It's a great opportunity for the right situation." An example might be paying your child's college tuition in May when you're expecting a big … [Read more...] about Consumer Wise: Borrowing from your 401K OK?