RETIREMENT PLANNING

Managing your personal finances often feels like a juggling act; keeping all the balls in the air can be a challenging feat. You need to balance the money coming in with the expenses going out. Add to this saving for emergencies, short-term goals such as vacations and long-term goals like retirement and it isn’t hard to see why it can be difficult to manage your personal finances.

There are certain priorities which should be considered when structuring your savings strategy. Here we look at how you can prioritize your savings, making it possible to achieve both short and long term savings goals.

If you have a 401(k) retirement fund, you have probably been spending a lot of time stressing over it recently. The economy has been hit hard and many people saw the funds in their 401(k) plans seriously drop in value. To make matters worse, many people continue to lose their jobs all over the country and are wondering what to do with their 401(k) plans since many companies cease participation if you no longer work there.

The good news is that you can perform a 401(k) rollover, in which you taking the money from your current 401(k) and roll it over into a new retirement savings plan. Of course, as with most financial transactions,there are 401(k) rollover fees.

Realizing that your retirement plan has taken a huge setback is a common symptom of the recent recession. The good news, however, is that there are ways to go about rebuilding your funds.

Though 60 percent of baby boomer, according to a recent study conducted by Bell Investment Advisors, have put off retirement for one to four years due to lost investments and perception of inflated prices.

Finance is a topic that the average American doesn’t know a whole lot about. Sure many of us can create a simple budget or open a savings account, but when it comes to debt management or retirement planning, we’d probably be better off consulting a professional.

Unfortunately, the services offered by financial professionals don’t come cheap. A financial advisor or tax expert can charge several hundred dollars per hour. So what do you do when you need expert advice but can’t afford much more than a Google search? Here are a few ways you can get answers from a qualified person without going broke in the process:

If you’re afraid to look at your 401(k) statement this quarter, you’re not alone. The stock market nose-dive has taken its toll on the retirement savings of millions of Americans. What you might not know is that for most people, your average retirement account is not the most well-rounded portfolio you can get. In fact, there are five common problems with the average American’s 401(k) plan that might be leaking money from your retirement fund. Take a look at these and see if any of them sound familiar.

The Useless Tax Deduction

A stable-value fund is an excellent way for those approaching retirement age to diversify their portfolios. Stable-funds tend to offer higher returns than similar investments like money market accounts, but do involve slightly more risk.

Until recently, stable-value funds were an incentive only available through employer 401(k) benefit plans, but things have changed. Now individual investors can take advantage of this conservative type of investment through their IRA as well.

Many people want to take full advantage of the 401(k) returns they can earn in their retirement plan. The money you put into your 401(k) fund is put into the investment instrument of your choice, such as stocks, bonds, or money markets. However, the average 401(k) returns you can expect from your plan–the profits your money makes you–will depend on the choices you make regarding where and how that money is invested.

401(k) Investment Strategy

If you are in the position of experiencing the economic crunch and trying to find additional possible revenue streams to help you get through these times, your 401(k) might be looking pretty tempting.

If you have a 401(k) retirement investment portfolio, you are allowed to borrow against the principal under certain circumstances. However, although you can borrow from your 401(k), there are many reasons why you should only do so as a last resort.

For years you have known not to touch the money in your 401k or IRA as substantial amounts of money would be lost in the shape of penalty fees and taxes. However, if the current turn of economic events is leaving you with no other option then to tap into the “forbidden zone” of your retirement assets, there are some steps you can take to help mitigate and lessen the damage you may cause by tapping into either your 401k or IRA for a pre-retirement withdrawal.

IRA Strategies

Do you have a 401(k)? If you do, chances are that your 401(k) is part of a program offered by your employer. If you are about to change employers, or if you’ve recently lost your job – a more common occurrence today – then you are probably wondering what to do with your 401(k) fund. If your employer allows you to participate in their 401(k) plan, and many employers will, you could always leave it where it is. You could also rollover your account into an Individual Retirement Account, or IRA as they are more typically referred to, but there are 401(k) rollover fees to consider. When you roll over your 401(k) into an IRA, you will enjoy greater flexibility and have more diverse investment options. You can also do a partial 401(k) rollover – ask your employer for more information about this type of transfer.

401(k) Rollover Information