401(k) Archives

Big News for 401(k) Holders: IRS’s Unexpected Twist for High Earners!

For those who have been diligently saving for retirement, exceptionally high earners, there’s some significant news on the horizon. The IRS has recently made an announcement that could impact your retirement strategy, especially if you’re earning over $145,000 annually. Initially, a new rule was set to take effect in 2024, which would have mandated that catch-up contributions made by individuals earning over this threshold be directed into an after-tax Roth account. However, this rule’s implementation …

Is the U.S. Failing Its Retirees? Shocking New Report Reveals the Truth

A new survey reveals that Social Security and 401(k) plans aren’t as beneficial as retirement systems in many other countries. The Mercer CFA Institute Global Pension Index recently ranked the Netherlands, with its dual public and private pension structure, at the top. In a fresh assessment of global retirement structures, the U.S. received a C+ grade, trailing behind countries like the Netherlands, Australia, and Sweden. The U.S. was ranked 22nd among 47 countries in the …

The Four Life-Saving Strategies For Your Retirement Fund

The year 2024 was turbulent for U.S. retirement savings plans, emerging as one of the century’s most difficult periods for the stock market. The financial landscape saw the S&P 500 experience a steep drop of 19.44%. Additionally, there was a decline in the average balance of Vanguard 401(k) accounts by a significant 20%, resulting in a value of $112,600 — a reduction from the preceding year. In the aftermath of the economic decline, positive strides …

The Truth Behind 401(k) Loans and HELOCs for Retirees: Which One Suites You?

When it comes to financial flexibility in retirement, understanding your borrowing options is crucial. Two popular choices among retirees are the 401(k) loan and the Home Equity Line of Credit (HELOC). Let’s dive into the details of each, their pros and cons, and how to determine which might be right for you. What is a 401(k) Loan? A 401(k) loan allows you to borrow against the balance of your retirement account. While it might seem …

Top 3 Unbeatable Platforms to Skyrocket Your 401(k) Rollover Returns!

The retirement journey is a significant milestone with many financial decisions. One crucial decision is determining the most suitable avenue for your 401(k) rollover, especially if you’ve recently parted ways with your employer. Whether you’re a seasoned investor or prefer a hands-off approach, various platforms cater to your preferences. Here’s a closer look at some top places to roll over your 401(k) into an Individual Retirement Account (IRA), ensuring a smooth sail through your golden …

How ETFs Are Revolutionizing Retirement: And Why You Should Care

In recent years, Exchange-Traded Funds (ETFs) have emerged as a popular investment vehicle among individuals and institutional investors alike. Their allure lies in their ability to offer diversified exposure to a particular sector, commodity, or index at a relatively low cost. As the global population ages, the importance of securing a financially stable retirement has become paramount. ETFs, with their myriad benefits, are increasingly being seen as the future of retirement planning. Here’s why ETFs …

Avoid These Deadly Retirement Rollover Mistakes That Could Cost You Thousands

401(k) or individual retirement accounts are great for retirement savings, but moving money between accounts can lead to penalties and taxes. The journey of transitioning funds between retirement accounts, popularly known as rollovers, is a strategic move aimed at bolstering financial security for the retirement years. Despite this, there are several rules that one must follow. Financial penalties may apply if you fail to comply. Here are three rules that you should know: #1 The …

Uncovering Forgotten Treasures: How to Reclaiming Unclaimed Retirement Benefits

In the bustling journey of professional life, American workers often find themselves transitioning across various jobs. The U.S. Bureau of Labor Statistics notes that the average person changes jobs 12.7 times between the ages of 18 and 56. While this job-hopping trend doesn’t pose a significant concern from a career progression standpoint, it does bring forth a financial concern when individuals inadvertently leave behind retirement benefits at their previous workplaces. This is actually quite common …

Why the 401(k) to Gold IRA Rollover is Your Golden Ticket to a Wealthy Retirement!

Diversifying your retirement savings is a prudent strategy to mitigate risks and enhance the potential for returns. One such diversification avenue is transitioning your 401(k) into a Gold Individual Retirement Account (IRA). This move can be a strategic hedge against economic uncertainties while potentially preserving your wealth. However, it’s a path that requires meticulous navigation. Here’s a comprehensive guide to understanding and executing this transition, tailored for retirees. Understanding Gold IRAs Gold has been a …

Unlocking Your 401(k) Before Retirement: What You Need to Know

Navigating the financial landscape can be tricky, especially when deciding on retirement savings. If you’re considering tapping into your 401(k) before retirement, it’s essential to understand the implications and options available to you. The 401(k) Loan OptionBorrowing from Yourself A 401(k) loan allows you to borrow money from your retirement account. The unique aspect? The interest you pay goes right back into your account. Think of it as paying interest to your future self. Why …