Based on the findings of a recent analysis conducted by human resources consultancy firm Aon Hewitt, half of 401(k) investors using target-date funds may be using them wrong. What exactly are people getting wrong when it comes to target-date funds? They “spread their dollars across other investments available to them in their plans” rather than using the target-date fund –…
Everyone knows that the first step to building a retirement nest egg is to make the most of your 401(k) (if you have access to one) by either maxing out your contribution or at least contributing enough to get any employer match. But Grant Cardone isn’t everyone. The self-made millionaire and author of the new book Be Obsessed or be…
Think you’re a 401(k) pro? Are you sure? Noting that, when it comes to some 401(k) decisions, you only get one chance to get it right, the author of today’s article lays out seven 401(k) mistakes that even well-informed investors are capable of making. Do you know all the ins and outs of net unrealized appreciation (NUA), brokerage windows and…
“Among investors, familiarity…breeds comfort. And that can be dangerous,” states today’s article which cautions against allowing the company you work for to build up a concentrated position in your 401(k). Why does the author view this as “piling risk upon risk”, what cautionary examples – such as that of Kinder Morgan – does he point to as making his case,…
“Even if you were an incredibly well-informed investor and paid a great deal of attention, it’s very hard to succeed in this system.” This is the assessment of law professor William A. Birdthistle, who has penned a new book on the perceived failures of the United States’ do-it-yourself retirement system, specifically mutual funds and 401(k)s. To read what Birdthistle sees…
While we frequently hear and read about how most Americans are not saving enough for retirement, those fortunate enough to have lots of money to sock away in retirement accounts may be facing a problem of their own. Today’s article examines the increasing number of “proposals to stunt the growth of outsized retirement accounts”, including those contained in President Obama’s…
With it being so often repeated that the key to a secure retirement is to start saving early and put enough into your 401(k) to get your employer’s match, today’s article argues that many investors are overlooking (or underutilizing) another important savings tool – health savings accounts: “According to some advisors, HSAs are also the Holy Grail of savings vehicles…
Earlier this month a commission charged with devising a plan to strengthen the retirement security and personal savings of Americans released its report – and today’s article outlines how “a lot of high income earners are going to hate it”. The 146-page report from the Bipartisan Policy Center “includes revamps of everything from 401(k) plans to reverse mortgages to tax…
Is the conventional wisdom wrong? Is a 401(k) not really the best way to save for retirement? The author of today’s article makes that case. After outlining the three main reasons typically put forward as to why you should maximize your contributions to your 401(k), he presents three reasons to the contrary. One reason? You are not necessarily in a…
“Consolidation of any accounts boils down to making it easier to coordinate your portfolio moves and do your asset allocating…The less your assets are spread around, the easier it is to keep track of them and assess what you’ve got.” Today’s article provides an overview of what you may – and may not – want to do when it comes…