Financial advisors specializing in investments, life insurance, and retirement planning with investor coaching in Altoona, Lewisburg, State College, PA and the surrounding areas.
401(k) is the IRS tax code used to refer to any employer sponsored retirement plan. These plan are often favorable because they allow employee to make a tax deferred contribution, while often receiving a matching contribution from their employer up to a predetermined percentage of annual compensation to be used for retirement. In this area you will find some tidbits related to 401(k)s and tax strategies for consideration.
Besides the usual market update and some rational academic clarity concerning countries sovereign debt and default, Paul Nichols, the investor coach, is pulling back the curtain on the concept of […]
Paul, with Financial Abundance, does a market update this week. This show, as well, focuses on a crucial question that must be answered when it comes to attempting retirement planning, […]
More often than not, when I ask a client about their 401(k) fee structure or plan cost, the answer I get is, “There is no cost. My company uses no-load mutual funds. It’s free.”
A survey sponsored by AARP, found that 71% of retirement plan participants believed they did not pay any fees at all. This is understandable, but shocking! That’s because this information is rarely disclosed.
The impact of fees and commissions on your retirement can be significant. This is especially true if your plan selections include variable annuities.
If you were a farmer…and you have a choices: one is to pay tax on your seed in the spring, and receive a tax free harvest. The other option would be […]
This weeks Weekly Clarity Coaching is also this months “Town & Gown coaching article that we create here at Financial Abundance. For those not local, T&G is a prestigious local magazine, a State College and Penn State tradition since 1966. This month article featured Deb Seward here in the office and she explains why most american’s end up with a lot of stuff in their portfolio. A short and informative read…
A number of years ago, employers began to include Target Date Funds as choices in their 401(k) plans.
The idea behind these investments, sometimes called “Lifecycle Funds,” is to help you to easily allocate your retirement plan contributions. Essentially, you would select a Target Date Fund that was “dated” close to the year you planned to retire, and, often, not include any of the other investment choices available in your company’s plan. For example, if you want to retire in 2015, you might select “Target Date Fund – 2015.” If you thought you would begin to enjoy your Golden Years in 2020, then you might choose “Target Date Fund – 2020.
What else comes to mind when you think of April? Taxes…Taxes…Taxes! I’ve attached a video that may hit close to home for some of you having just recently gathered up and prepared your own taxes. If you found your self saying, “I need to do something about these taxes”, this is a good place to start. Doug is a friend of mine and has been a financial planner for over 30 years and we’ve incorporated some of his Missed Fortune strategies in our own planning as well as in plans for qualified clients. Please stop by the office to discuss some Missed Fortune concepts if you feel proactive tax planning may benefit your situation.
http://www.youtube.com/watch?v=DlfXYzdt4Bk
Last weekend’s Wall Street Journal had a front page article called Retiring Boomers Find 401(k) Plans Fall Short. The article begins by noting that “The 401(k) generation is beginning to retire, and it isn’t a pretty sight. The retirement savings plans that many baby boomers thought would see them through old age are falling short in many cases.”
This article peaked my interest since 401(k)’s are the retirement saving vehicles of our time. The old traditional defined benefit plans that promised a certain benefit every month after retirement until death are dinosaurs. The burden has shifted to employees to fund their own retirement through these and similar plans.
Paul Nichols of Financial Abundance posts a video blog to review an investment basic, Dollar Cost Averaging. This technique is used when you buy a fixed dollar amount of a […]
This week, Paul Nichols, answers a viewer question about borrowing from his 401k. We’ve all thought about it, now listen to some advice from the “Investor Coach” to figure out […]
This week, Paul Nichols, answers a viewer question who wants to know if he should invest in gold with his 401k or IRA. Paul gives some very pointed advice on […]
This week Paul and Luke review the Market Update, the pros and cons of qualified plans and if you should take your social security payments at age 62 or 65.
Don’t Limit 401K Deductions to the Amount Matched…I found the following sage advice in a local newspaper: Even though the company matches only part of the 401k contribution, it is to your benefit to put the most away in your 401k plan as you can, since 401k plans are an excellent way to save for retirement. The author of the article went on to profess that often many investors contribute only up to the company match within their 401k plan, and do not take advantage of their 401k plan if the company does not match, and he states that this is a mistake. He finalizes this train of thought by stating that with a 401k plan, an investor receives a double tax benefit.
From the desk of Paul Nichols: President of Financial Abundance Inc.
The Roth 401(k) entered the retirement community in 2006. This investing innovation was created by a provision of the Economic Growth and Tax Relief Reconciliation Act of 2001. Modeled after the Roth IRA, the Roth 401(k) gives investors the opportunity to fund their accounts with after-tax money. Investors will receive no tax deduction on contributions to a Roth 401(k), but they will owe no taxes on proceeds. Participants in 403(b) plans are also eligible to participate in a Roth plan.
Recognizing the bear market’s severe impact, lawmakers approved an economic relief measure before they adjourned earlier this month that can be a big deal for most older retirement investors.
The legislation suspends for 2009 the rules that force older individual retirement account holders and their beneficiaries to take minimum annual withdrawals, or what’s referred to as RMDs (Required Minimum Distributions).
The legislation, called the Worker, Retiree, and Employer Recovery Act of 2008, applies to RMDs for IRAs, 401(k)s, 403(b)s, and similar plans. It only applies to withdrawals in 2009, so 2008 needs to be taken, and they will be back in force (barring any changes) for 2010.
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