401(k) plans were established by Congress to encourage individual savings towards retirement. Offered through employers, the plans are generally available to eligible employees who are allowed to contribute a percent of their salary to the plan.
The need for retirement planning didn’t really exist until well into the 1970s. Up to that point, people worked until age 65, spent a few years in leisure through their life expectancy which was about 69. Many retirees of that era were able to coast into retirement with a cushy pension plan.
Today’s retirees are finding that retirement requires at least as much psychological and emotional preparation as it does financial preparation. So, retirement planning needs to include a thorough assessment of human assets and liabilities along with an assessment of financial assets and liabilities.
Diversification is at the heart of a sound investment plan. An effective diversification plan helps manage risk by spreading funds across various asset classes and types of investments. The reasoning behind this strategy is that market conditions can affect each type of asset differently — through diversification, losses in one area can be offset by gains in another.
You’ve heard the saying that timing is everything? While that may hold true for matters of the heart, it’s actually terrible advice to follow when it comes to investing.
The Tax Cut and Jobs Act, enacted in 2017, made major changes to the tax code that could have a significant impact on your bottom line.
Congratulations! Your hard work and contributions at the office have been recognized and you’ve earned yourself a raise. You might be tempted to start spending it right away, but this is probably a bad idea. Be cautious about raising your budget and lifestyle in a permanent way after getting a raise — it can make it harder to get ahead over the long term.
Perhaps you’ve lost a job, faced an illness or have been delt a family crisis that emptied out your emergency fund. What are your next steps?
You’re eyeing center-hall colonials in your neighborhood and dreaming about the garden you want to plant in the backyard and all the holiday celebrations you’ll host. You’ve saved toward this goal and think you’re ready to pull the trigger. But the real question is: How much house can I afford?
Or is it?
Social Security’s financial cliff is coming closer into view. Experts project that the fund that pays for government retirement benefits through FICA taxes will be depleted within the next 15 years.
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