With pension plans a thing of a past and Social Security benefits uncertain, your 401k plan is by far the most important vehicle to a safe retirement. So in order to secure a good retirement, how much should you have in your 401k by 30? We will answer this use four different scenarios. In all the scenarios, we assume that the starting salary is $45,000 and it rises at 3% per year—because $45,000 is the average for a college graduate and a 3% rise per annum is the average throughout the many industries.
The last several years have done a number to many people’s nestegg. Many people who relied on their 401k for their approaching retirement were no longer able to retire because their 401k lost so much value in the market due to the credit crisis. If you want to protect your 401k from massive losses, follow these three tips. These tips are designed to protect your assets moreso than growing it. Therefore these tips are meant for those who are going to retire soon(ish). But if you follow these tips, you should also see some good growth in your 401k.
The 401K is a great retirement vehicle. But employers do not do a great job of telling teaching their employees how to invest in it. This article will teach you how to start your 401k retirement plan and explain to you exactly how a 401k works.
Because of the demise of pension funds, companies have moved to the 401k in order to help employees fund their retirements. A 401k is essentially a retirement fund in which your employer matches a portion of your investments. So you can see why this is such a popular investment vehicle. This guide will take you step by step and teach you how to invest in your 401k.
What is an IRA? An IRA account is an Individual Retirement Account. It differs from a 401(k) plan in that the money placed in an IRA is not taxed, or is taxed at a lower rate, so you hang on to more of your saved income. By investing the money (there are several investment options that will be discussed), you can actually add to it, all the while still not paying taxes on your savings. You could even double your money with the right financial decisions. An IRA account essentially gives you more financial freedom while it allows you to earn more money.