7 things you need to know about your 401k

Some 401k plan tips are less widely known than others. Here are a few you may not have heard of.

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25Comments
Jun 11, 2014 6:15AM
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You better think twice about those rollover schemes.   Those so called "financial advisers" want to get their hands on your money for their benefit, not yours.  They will get their commissions and fees even if you lose money because of their bad advice.   Use your own brain and manage your money wisely.  Your company's 401k choices are usually pretty safe and profitable.  Don't give your life savings away to  financial advisers (strangers) and insurance companies (annuities).  Watch out you boomers!  Every crook in the country is after you life savings!
Jun 10, 2014 8:09PM
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My plan's "target date" funds have HUGE FEES.  The index fund options get very similar returns but the fees are only 1/20 as much, so I come out ahead.
Jun 11, 2014 12:50PM
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Talk about stupid. I overheard a fellow worker talking about an unexpected payment from a former (now bankrupt) company. The idiot is going to pay the penalty to take the money now. If they want the money now, all they have to do is roll the money into the existing 401K (I know they have one) and then just temporarily cut back on the amount they are contributing, or even taking the amount out as a loan would be far less expensive. Some people do not think.
Jun 14, 2014 8:55AM
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The fact is government can double cross you and take it away anytime they want to.
Jun 11, 2014 7:51AM
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For the younger crowd, the best thing to know about is alluded to: Substantially Equal Periodic Payments under rule 72t.  I've always been obsessed with retiring as early as possible and used to invest in essentially cash accounts for the pre age 59 years. Rule 72t allows you to take a series of penalty free distributions from an IRA pre age 59.  If you pay off your house preretirement and limit withdrawals to within the 15% tax bracket limits, maxing out the tax deferred accounts is a much better option than paying taxes now... Plus you gain all the bankruptcy protection and other features. If your plan offers 401k loans, the money is often accessible along the way if needed. That's part of what allows me the confidence to really max out my contribution and limit cash on hand...

Jun 11, 2014 10:26AM
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WTF CGT11 ??? Did "Royal We" call in sick? Are you drunk on the job?
Jun 11, 2014 12:48PM
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Very little has changed since this morning, manipulators in control on and off the floor, do not fall for the small recovery pockets you are going to see, they are all just sucker's rallies trying to lure folks in and then stab them in the back by dropping markets even lower....All we can do is to try to minimize the damage, the sidelines looking mighty good this afternoon...All that can save the market today is a miracle....Doubtful, too many of these cheating crooks.
Jun 11, 2014 10:40AM
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Not a real shocker this morning, its hard to keep these manipulators down for long...They came out doing their thing early and often today and with the volume still low they are having a very good day, we are down close to triple digits already....Oh well, we knew they would start cheating and manipulating at some point this week, especially after the last three. Still early, hopefully we will be able to minimize the damage; the way things are looking right now, don't count much on it though.....Be very cautious....More later.
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