Americans can save for their retirement by investing in a 401(k) plan, whose name is taken from the section of the U.S. income tax code that created it. The employer-sponsored retirement program allows employees to contribute a portion of their wages towards different investment options, such as stocks and bonds. The amount of the contribution…
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The past seven days haven’t been particularly favorable for the cryptocurrency in terms of price action. Bitcoin dropped below $40K and is currently unable to reclaim the important psychological level, while many altcoins followed a similar, if not tougher, path. This time last week, BTC was trading at around $42,000, but this didn’t last long.…
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I wish I had been smarter with my money so much earlier in life. Granted, there are still many days my last few dollars go to Starbucks instead of my savings. Sorry, caffeine wins many times. I have talked to men who are much later in their lives who regret starting so late to put…
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There are important RMD changes for 2021 that every 401(k) investor needs to know about to avoid penalties. Required minimum distributions (RMDs) are IRS-mandated withdrawals from retirement accounts. The IRS requires these withdrawals to ensure that taxes are paid on amounts that were contributed on a pretax basis, plus any tax-deferred earnings in those accounts…
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I get lots of questions from readers about whether or not they should take advantage of their Roth 401(k) (or 403(b)) option. They’re usually looking for an easy, straightforward answer. Unfortunately, it isn’t that easy. I only have one rule of thumb, and that’s that residents (and military docs) should make Roth contributions and attendings…
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401(k) Vesting Schedule: How It Works and Why You Should Care Many workers who save a portion of each paycheck in their 401(k) and receive a matching contribution from their employer often wait years before the money is fully theirs. Some don’t see any employer matching dollars because they leave the company too soon. If…
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(This guest post is about using a 401(k) to start a business. It’s another form of franchise financing you need to explore. And it’s courtesy of Guidant Financial-I’m an affiliate.) If you’re looking to buy a franchise to fulfill your dreams of entrepreneurship, your first thought may be that you’ll need a small business loan.…
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Traditional 401(k)s Vs Roth 401(k)s: Which One Is Right for Me? Planning for retirement may include choosing between traditional and Roth 401(k) plans. Unless you are a financial advisor or have spent a significant amount of time reading up on both, it may be difficult to understand the difference between a traditional 401(k) and a…
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BlackRock has made a successful push into sustainable investing. With the Biden Administration friendly to sustainable investing, BlackRock is making a push to offer those types of investments to retirement plans, CEO Larry Fink said in an interview. “We are working with many 401(k) plans to say, ‘Would you like to have a twist on…
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If you have income left over after paying taxes, it’s important to avoid common disposable income mistakes. However, there is a big difference between disposable income and discretionary income. Disposable income is your personal income minus your current personal taxes. For example, if you make $60,000 a year and pay 20% in federal, state, and…
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