5 Ways to Boost a 401(k)
Since the advent of defined contribution plans 30 years ago, the responsibility of saving for retirement has fallen largely on employees’ shoulders. Many employers are freezing or terminating costly pension plans in favor of 401(k)s and similar plans, according to a Prudential Financial Inc. survey. If you’re looking to catch up or get ahead on saving for retirement, there are steps you can take to do that, including the five that...
Older Workers Feeling Spooked By Stock Swoon
As the economy struggled to take off in the years after the financial crisis, Americans had at least one shining source of optimism: a booming stock market that not only helped rebuild shattered 401(k) plans but suggested better times to come. But now, with the economy still mired in a sluggish recovery, that silver lining is being threatened. The stock market is lurching downward after a flat 2015 and large banks are casting...
Save, Don’t Splurge, Once College Bills Stop Arriving
The kids are finally done with college and there are no more horrifying tuition bills ruining your mail. So what do you do? Splurge on gifts, fix up the house, take a vacation, pay bills, or stuff a little more cash into the retirement saving account you’ve been neglecting. If you are like many parents, you’ve been promising yourself for years that you will start saving for retirement in earnest once the children-related expenses end....
Money Talk: The Down Side of Automatic Payments
Question: Since I lost my second job, we have fallen behind on our bills. Although we get paid on Friday, by Monday our checking account is in the red even without buying anything. It’s all going to automatic payments for things like insurance and college savings for our child. I think the bank has a way of processing transactions to maximize our bounce fees. Should we take control and pay manually? Is automatic payment a recipe for...
Money Talk: Options for Changes to 401(k) Account
Question: I’m leaving my job later this month and am trying to decide what to do with my 401(k) account. Some of my friends say to leave it where it is, and others say to roll it into a traditional individual retirement account or Roth IRA. Which is best? Answer: You can’t roll a 401(k) directly into a Roth IRA. You would first need to roll it into a traditional IRA, then convert that to a Roth and pay the (often considerable) tax...
