401(k)
« Previous EntriesQuestion of the Day: Personal Rate of Return
Wednesday, May 22nd, 2013We have had a good year so far in the stock market. So, curious minds want to know… What is your personal rate of return for 2013? Our personal rate of return through yesterday is 16%. We are 100% stocks: I am not recommending this route to AFM readers. It can make for a very [...]
Workers Saving too Little (Does This Surprise Anyone?)
Tuesday, March 19th, 2013From today’s WSJ Fifty-seven percent of U.S. workers surveyed reported less than $25,000 in total household savings and investments excluding their homes, according to a report to be released Tuesday by the Employee Benefit Research Institute. Only 49% reported having so little money saved in 2008. I found the report and thought this graphic that [...]
Do These 401(K) Choices Seem Expensive To You?
Tuesday, January 15th, 2013A friend of mine asked me to help her allocate her 401(k) contributions. Here are her choices (click on the graphic to see a PDF version): As you can see, they’re all expensive choices. I’m sure this is because it’s a small company and one of the ways providers make the plan “cheaper” for employers [...]
401(K) Dollar Limit Raised to $17,500 in 2013
Friday, November 2nd, 2012The maximum dollar amount an employee can contribute to their 401(K) is increasing $500 to $17,500 for 2013. Those who are 50 and older can contribute as much as $23,000. Let’s break down $17,500. That’s… $1,453.33 per month. $47.95 per day. $1.9977 per hour (based on 8,760 hours per year). $.0333 per minute. Better get [...]
Should I Pull Money Out of My 401(k) to Pay Off Debt?
Wednesday, October 3rd, 2012This is good but he misses one point. I’m not sure if it’s true of all 401(k) plans but interest on a 401(k) loan usually is paid into the 401(k) account. In other words, the interest is your money. It’s as if you borrowed from the Bank of You. Also, some companies do allow contributions [...]
This Sounds Like a Dumb Idea: Cutting the 401(K) Deduction
Wednesday, May 2nd, 2012Okay, I know the NY Post is usually alarmist but I have heard about this idea before. The idea supposedly being kicked around is to limit the amount employees and employers can put towards the employee’s 401(k) to a maximum of $20,000 or 20% of income, whichever is smaller. The current amount is a maximum [...]
Do You Know What Your 401(k)’s Personal Rate of Return is for 2011?
Monday, October 3rd, 2011I just logged on to my wife’s 401(k) account. The balance is roughly $60,000 less than it was at the peak early this year (and this includes several thousand dollars of contributions). OUCH. Fidelity calculates a personal rate of return, which is the return adjusted for the timing of contributions. Our personal rate of return [...]
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