401(k) plans are employment benefits designed for saving for retirement. For some people, a 401(k) is the only retirement asset they have. Unfortunately, most people never learn how these things work from the ground up. And whenever there’s confusion about how something works, people tend to get overwhelmed and do nothing until they feel more […]
by
How to Plan for Retirement: Start at the End
The best way to plan for retirement is to start with the end in mind. Why? There are psychological reasons and practical reasons. First, the psychological: if you start with the big picture in mind, it will be easier to do the hard work that’s required to make your goal a reality. When you get […]
by
Market Risk – What it is and What You Can Do
Market risk is the risk that you will lose money the markets. In most cases, people are referring to the stock markets, but it’s certainly possible to lose money in other markets as well. Market risk is a reality anytime you’re dealing with a security that has a price that can move up or down […]
by
Longevity Risk – What it is, and how to Manage It
Longevity risk is one of the risks you face when saving for retirement. Simply put, it is the risk that your retirement savings will not last for your entire lifetime. A few other ways to refer to longevity risk include: You’ll outlive your savings You’ll run out of money before you run out of life […]
by
What Does Your 401k Statement Tell You?
Hint: it’s not what you need to know. It may be tempting to look at your 401k account, especially when markets go haywire. Before you do that, you may want to ask what you’re looking for. If it’s just idle curiosity and you have some time to kill, there’s nothing wrong with looking at your […]
by
Lifetime Annuity Income Guarantees – What Are They?
Some annuity products promise lifetime annuity income. How do these products work, and what do you need to watch out for? This is part of a series on annuity guarantees. Lifetime annuity income products help you make sure that you (or somebody you care about) do not run out of money. With a lifetime annuity […]
by
Roth 401k – What is Roth 401k?
More and more plans are offering Roth 401k. Is Roth 401k right for you? How Roth 401k Works Roth 401k is similar to a traditional 401k plan. However, your contributions go in after-tax. Therefore you don’t get a deduction (or reduce your taxable income) when you make contributions to a Roth 401k plan. Why Use […]