401(k)
« Previous EntriesSURPRISE!!!!! Our Personal Rate of Return is 11.5% for 2009!
Wednesday, June 3rd, 2009I logged into my wife’s 401(k) account this morning to find this:
The definition of personal rate of return (I put together a tutorial here) on Fidelity’s website is:
Your Personal Rate of Return is calculated with a time-weighted formula, widely used by financial analysts to calculate investment earnings. The calculated value reflects the result of your [...]
Scott Burns Starts a Six-Part Series Today on Retirement Saving
Wednesday, April 29th, 2009I noticed Scott Burns’ column in today’s Houston Chronicle (you can read the article here) is the first in a series on reforming retirement saving. This particular article talks about the fact that many employers are no longer offering their employees a 401(k) match. Scott references a study done by Hewitt Associates that [...]
STICK TO YOUR GUNS, PEOPLE!
Thursday, January 8th, 2009From the front page in today’s Wall Street Journal comes, Big Slide in 401(k)s Spurs Calls for Change. Here’s a quotes (WARNING: some of this might make you mad):
The stock-market rout has ignited a crisis of confidence for millions of Americans who manage their own retirement savings through 401(k) plans.
After watching her account drop [...]
Leave Our 401(k)s Alone!
Friday, November 14th, 2008Take a look at what Teresa Ghilarducci at New York’s New School for Social Research wants to do to your 401(k):
Her plan would end the tax breaks for 401(k)s; she proposes instead to give all workers an annual $600 inflation-adjusted tax credit for retirement and force them to invest 5% of their pay into a [...]
Question From a Reader: 401(k) Loan
Thursday, November 6th, 2008I received the following email last week:
Hi JLP,
I’ve read your blog about the 401k loan. However, it’s still unclear what to do in my case. I took out a 401k loan of $20,000 by June, 2008. The loan is payable within 5 years. However, I will be laid off by my current employer by the [...]
A Conversation With a Friend About His 401(k)
Saturday, October 18th, 2008This morning I got a call from my friend. Our conversation went something like this (I’m pulling a 15 minute conversation from memory so bear with me):
Friend: I was looking at my 401(k) statement last night. One month ago I had $23,000. This month it’s down to $17,000. I lost [...]
Are 401(k) Plans Really That Bad?
Wednesday, August 27th, 2008At least once a week I receive an article submission from a guy named Steven Selengut. Steven, a portfolio manager and author, runs Sanco Services, a portfolio management company. This week’s article is titled “Why 401(k) Retirement Plans Really Don’t Work,” which you can read in its entirety here. The author prefers [...]
What Are Your Thoughts On 401(k) Debit Cards?
Tuesday, July 22nd, 2008Today’s Wall Street Journal had a short article about 409(k) debit cards. Jeremy over at Generation X Finance hates debit cards for 401(k) plans. I agree with Jeremy: it’s probably close to the worst idea ever!
I don’t think we should do anything that encourages people to borrow from their 401(k) plans. [...]
Question of the Day - 401(k) Loans
Monday, July 21st, 2008Here’s today’s question(s) of the day:
Do you think it is too easy for people to borrow from their 401(k) plans? Have you ever borrowed from your 401(k)?
My wife and I have borrowed against her 401(k) when we bought our house in 1999. This was back in the day when her 401(k) was our only [...]
Avoid Cashing Out Your 401(k)
Sunday, July 13th, 2008Check out this quote from a recent Wall Street Journal article by Andrea Coombes:
…about 40% of workers in their 20s and 30s said they had cashed out their 401(k)s or 403(b)s when they switched jobs, according to an online survey of about 1,200 people conducted in January for Fidelity Investments by CMI, a research firm.
Quiz [...]