Updates

The 401(k) plan comes in two varieties — the Roth 401(k) and the traditional 401(k). Each offers a different type of tax advantage, and choosing the right plan is one of the biggest questions workers have about their 401(k). It can be a surprisingly complicated choice, but many experts prefer the Roth 401(k) because you’ll … more »

The stock market may have partially recovered from its drop of more than 30% in recent days, but the problem of big losses in equities and uncertainty in the bond market, especially among corporates and munis, remains as the global economy suffers from a worsening pandemic. To say that financial advisors are being challenged like … more »

For new investors, and even for seasoned ones, the last few weeks have been tense. On Monday, both the S&P 500 and the Dow Jones Industrial Average saw their worst days since 2008, with the S&P 500 dropping 7.6% and the Dow dropping 7.8%. On Tuesday morning, the markets surged, with both indexes jumping more … more »

Sen. Rand Paul (R-Ky.) has introduced a bill that would allow students and parents to make penalty-free withdrawals from retirement funds to pay for college or repay their student loans. Not surprisingly, investment advisors are worried that Rand’s solution to rampant student loan debt may create more financial problems than it solves—especially as retirement rolls … more »

Every fall, companies hold their annual open enrollment, a period when you can change health care plans, add other insurance coverage, and sign up for additional benefits your employer offers. You may be tempted to simply choose last year’s options to save time, which is what the vast majority of Americans do. But that doesn’t … more »

What are you willing to give up now to save for retirement? Principal asked this question of its retirement plan participants who fall into the “super saver” category — those who saved 90% to 100% of the 402(g) IRS max contributions or had a deferral percentage of 15% or higher in 2018. Find out what … more »

Watching TV is a lot more fun than going through your bank statements. But only one of them is going to help you reach your financial goals and retire on time. And it isn’t watching “Keeping Up With The Kardashians.” We spend on average about 70 times as much time a month watching TV as … more »

General Electric is pulling the plug on its pension plan, and that’s a surefire way to derail workers’ retirement planning. GE GE, +0.72% announced earlier this month it was freezing pensions for 20,000 employees with salaried benefits in an attempt to reduce its $8 billion pension deficit, and that it would also freeze supplementary pension … more »

Workplace retirement plan investments ballooned in the last decade. The average 401(k) balance increased by more than 450% between 2009 and 2019, according to Fidelity Investments. Meanwhile, the average 401(k) return reflects the stock market volatility of recent years. Vanguard’s How America Saves 2019 report found that the median 2018 return was a 6.5% loss, … more »

If you’ve been considering a mortgage with an adjustable rate, your reasons for going that route might be disappearing. As recessionary fears cause longer-term interest rates to hover near or below short-term rates, the advantage that typically comes with adjustable rate mortgages has shrunk — or entirely disappeared — at some lenders. ARMs, as they … more »