VIDEO ON MSN MONEY
17,500 & 5,500 are the deductible amounts that may be contributed for '14...contributions greater than that are post 86 after-tax contributions. Deductible limits are raised every so often. Check your plan...and, of course while checking your plan, check out other options outside your 401(k)...
If rolling past employer 401(k) amounts - safest option? Trustee to trustee rollover. Avoid touching any check and subjecting yourself to completing the transaction within 60 days. Hefty penalties are easily avoided using trustee to trustee.
If someone does not save for their retirement, they are jealous of those who do. The criticism of 401Ks sounds like sour grapes. $50 dollars a week saved before taxes is equivalent of less than $5 a day of spending. The secret is in deciding what belongs on the need list and what belongs on the want list. You need food, clothing and shelter, but what you eat, what wear and where you sleep are choices!
Depending on when you do this/that TR ROSE,...??
You can "roll" your 401K out into what's called a "Rollover IRA"..THERE ARE NO PENALTIES.
And most providers or trading houses take care of all paperwork or transfers for "FREE" or almost free...(yes I see, someone already mentioned trustee to trustee) That is correct.
That's usually after you retire or leave a company or move on to another Company..
DO NOT TRANSFER to another 401K in new company...Get it out.
There may be other stipulations and timeframes (dates) that you have to meet...
But try to do all of it, without paying taxes or penalties...Get GOOD ADVICE on the pitfalls.
Check all the rules of your Company or your 401 for vested rights, withdrawls etc.
I think if you retire in the same year, you turn 55, you might be able to pull 401K out without penalties...OTHERWISE you have to wait until age 59 1/2.
Whatever you do try not to give back any matchings, pay taxes, or penalties OR do anything RASH....Check all RULES first....You earned it, work on KEEPING it...Get ADVICE or read.
What one-hour 401k seminar? I've never been to one. I believe a lot of us just blindly go along with our employer's 401k plans and hope they are being managed well. Maybe most people wise up as they get closer to retirement, but most of my co-workers (under 40 yrs old) seem to just shrug their shoulders.
If the seminar the article is referring to is one that is not employer sponsored; i.e.: i gotta go find one on my own. Then shame on me for not finding one. I don't see them advertised in my home town. Besides, is it really worth the expense of taking time-off from work and paying my own travel expenses to go to a one-hour seminar? Heck, given the complexities of investing, I don't even think a week-long seminar would cut it. After all, It takes economics, business, and law degrees to understand this system does it not? If it doesn't, sign me up. I'll be your investment manager!
Even if you sacrifice your "Television Time", after working a 10 hour day, to read the information you're given concerning your 401k, it is vague at best. It is difficult to formulate good questions when you don't really understand one thing your given.
I think the system is designed such that the people who manage it make a lot of money off of people who have to learn the system the "hard way". The article points out the fees associated with 401k plans. The fees don't seem like much when you see 1 or 2% but, as this article infers, a lot of people may not realize that low low fee adds up over 40 - 50 years. This is one example of the "hard way", but it is not going totally break your retirement, only hurt it a bit. What other investment information will we have to learn the "hard way"?
Reading books by various authors on the subject will only shower you with investment strategies that may not even be relevant by the time you read them. Even if they are relevant, the markets are dynamic, always changing. So it appears that investing is a gamble where the only winners are the ones who collect the management fees. Those fees don't vanish like your 401k can.
Even if I had gone to a seminar, One hour hardly seems enough. If it were enough, this article would not be necessary. Also, If I were a savvy investor, what does it matter? All it takes is some joker on wall-street to play fast and loose with our money. We have all seen, and many have had to experience the pain of such risk taking by those we pretty much have to trust with our money. What real choice do we small-time investors have?
What to do? Thanks to cost of living increases happening so frequently, saving your money in a coffee can will not get you through retirement unless you can stash away $5000 -$10,000 a month from the time you start working at McDonalds at the age of 16.
Watchout for fees. Even a 1% annual fee over a 40yr period will eat almost 20% of your 401k. To get the exact number:
1) Multiply your annual fee be 16.64
2) Multiply answer from (1) to your final/projected amount
3) That is how much you paid in fees that should have been your money
1) 2% fees X 16.64 = 33.28
2) $500k final amount X 33.28% = $166,400
3) You paid or will pay over $166k in fees over a 40 yr period on an account that finishes at $500k
Wow. All those words being typed, and not a thimble of intelligence to show for it. It's like a vacuum in there, with no input or output. Just a bunch of no-brainers, patting each other on the back. Garbage in - garbage out. It's depressing. Come on, people. You're better than that.
No ! KNOW THIS ABOUT YOUR 401k !
The MONEY MONGER ONE PERCENTERS are just USING YOUR 401k FOR THEIR BENEFIT !
Take ALL your 401k OUT NOW ! Pay the EARLY WITHDRAWAL PENALTY, which there NEVER EVER should have been to start with, and INVEST IT LOCALLY where you & you alone can keep a close tab on it. The corrupt Republican corporate MONARCHY STOLE YOUR GUARANTEED PENSIONS and gave you THEIR "INSURANCE POLICY 401k" THAT PROTECTS THEM IF THEY FAIL......AND THEY ARE FAILING RIGHT NOW !
Don't waste any more time, TAKE IT ALL OUT NOW before the coming DEPRESSION at the end of the year !!!!
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