COVID-19 surprised everyone. As part of the response to COVID, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed. A less-publicized part of the act was the option for employers to offer very lenient 401k distribution and loan options for COVID-related hardship. One major takeaway for employees is to realize that the new …
401ks are for retirement. With pensions going the way of the dodo bird, flip phones, and fax machines, our retirements are dependent on 401ks and Social Security. While their primary purpose is retirement, 401k loans do have a feature that can be a great tool if used correctly: the ability to borrow money from yourself. …
The 401k Loan, A Useful Tool (If Used Correctly) Read More »
MNice Investor talked about the possibility of the Stretch IRA going away with passing of the SECURE act back in June 2019: , RIP Stretch IRA (Maybe?) SECURE stands for Setting Every Community Up for Retirement Enhancement. The accuracy of the name is debatable, unless you are selling annuities. For many of you, SECURE will have little …
The SECURE Act Is Here! What You Should Know. (before you buy that annuity) Read More »
Working with families, and having my own, I often use the seasons and holidays as signposts. They remind us of upcoming tasks or deadlines. Memorial Day is the start of summer, Labor Day, the end of summer. July 4this often a reminder that it’s time to get things together for back-to-school. Thanksgiving should act as …
I don’t think it was a coincidence that #HSAAwarenessday occurred right before Open Enrollment, nor was it a coincidence that I decided to write a blog post on HSAs (Health Savings Account) at the same time. Making smart choices during Open Enrollment matters more than ever: Rising healthcare costs being one of the major reasons …
Don’t Be Afraid of The HSA This Open Enrollment Season! Read More »
What Is a Stretch IRA? When an Individual Retirement Account (IRA) is left to a nonspouse, a popular option to delay the payment of taxes is to spread out the account distributions over the lifespan of a younger beneficiary. Each year the beneficiary would have a Required Minimum Distribution, or RMD. The practice of stretching …
I’ll take Movies In The DirectTV Guide for $500, Alex. The answer: “Two hit men, a boxer, a crime boss, and others meet their fates over the course of two days.” James Holzhauer’s question: “What is Snatch?” Correct question: “What is Pulp Fiction?” Living in Minnesota, I don’t often read the Chicago Tribune, but the …
I’ll Take Jeopardy, Risk, & Retirement For $1,000, Alex. Read More »
Moving from a pension-driven retirement to a 401k-driven retirement has not been easy. Because the employee not only has the responsibility for saving but also to make sure the assets grow enough to meet an income-funding goal, they are responsible for ongoing investment management too. Efforts from employers, plan providers, and investment management companies have …
It is common knowledge that your company’s 401k match is free money. Unless you are struggling with high-cost debt, you should strongly consider “maxing out” your company’s match. What is maxing out? If your company matches the first 3% at 100%, then to max out your company’s match you must contribute 3% or more of …
A Common Mistake Of Overachieving 401k Investors Read More »
