1. Don’t cash out retirement plans when changing employment When you leave a job, the vested benefits in your retirement plan(s) are an enticing source of money. It may be difficult to resist the urge to take that money as cash, particularly if retirement is many years away. Generally you will have to pay federal income taxes, state income taxes, and a 10 percent penalty … Continue reading Four Tips for Increasing Your Retirement Dollars
Too often, we hear the younger generation of workers tell us saving for retirement is not high on their priority list. It’s easy to understand why retirement may not be a main priority. Instead of thinking about the long-term financial impact of ending their careers, most young workers today are focused on launching their careers. However, what the younger generation needs to understand is that … Continue reading I’m Too Young to Save for Retirement!
Over the last several years exchange traded funds (or ETFs) have become very popular among investors because of their lack of a minimum investment, their low cost of ownership and their ability to be intra-day traded. Most ETFs track an index such as the S&P 500, but unlike an index mutual fund, ETFs can be bought and sold just like a stock. That means that … Continue reading Exchange Traded Funds in Retirement Plans
TOTAL CONTRIBUTIONS + INVESTMENT GAINS – WITHDRAWALS = BALANCE AT RETIREMENT A 2014 study by MFS surveyed 1,000 defined contribution plan participants in the U.S. between the ages of 20 and 69 who are employed and have at least a $1,000 balance in a plan with their current employer. They asked questions about total contributions, investment gains and withdrawals. Total Contributions Participant perspective: Amount needed … Continue reading The Retirement Equation