Welcome to adulthood. You have bills to pay, possibly student debt, basic needs, and we’ll even throw in child expenses for fun. On top of this you could be attempting to contribute to your retirement plan as much as possible. When you turn 59½, we’re assuming you want your retirement account to be beefed up via 401(k) contributions. You’re already aware that safari vacation on your dream board won’t pay for itself.
When the CARES act was signed in March, it integrated $2.2 trillion into the United State’s economy. It also lifted the 10% tax penalty from early 401(k) and 403(b) withdrawals. Having this withdrawal penalty lifted gave reason for concern from retirement plan providers. However, to our dismay few have actually taken advantage of the waived penalty. It seems as though plan holders aim to avoid further financial complications, and who can blame them. No one wants to be stuck with an ugly bill from the IRS over a withdrawal that was unnecessary in the first place.
So you’ve decided to switch companies, but you don’t know the first thing about finance or how to rollover your 401(k) plan. Now what? As the rules apply, a 401(k) simply cannot be placed in a U-Haul and driven from company to company. We all wish it were that easy, but we live in an era where financial planning, reasoning, and implementation takes some professional help or even hand-holding.
Let’s just say you have a company-sponsored retirement plan and you have long term goals for it. Months, or even years later, you realize your retirement plan is increasing at a snail’s pace and you’re slightly disappointed in that. This is where the 401(k) Optimizer® could benefit you. This tool is designed to help you optimize your investments within your retirement plan. If you have a 401(k), 403b, or 457 plan, using the tool will let you know when to buy and when to sell through a math-based approach.
Millions of Americans have been laid off as one the ripples of COVID-19, and the numbers have all but crawled to improvement. March 2020 struck a very harsh cord for many working Americans. With the mixture of the novel coronavirus and stay at home orders, businesses felt a struggle they could have never predicted. For the majority of people, working brings purpose to the day and puts food on the table. While not every occupation might be our favorite, there is still pride in earning a living. When that is taken away, due to any circumstance, it’s distressing. As of August 2020, unemployment fell to 8.4% percent according to the U.S. Bureau of Labor Statistics. These numbers mean millions of American’s are stepping back into the workforce, but doesn’t reflect full recovery to working citizens.
“What’s a 401(k) plan and why would I need one?” Each of us has asked that question at some point in our lives. After enrolling in a company-sponsored 401(k), it is too often we move on with our daily routines and put our plans on the back burner. A retirement plan is designed to help you live comfortably when you’re ready to exit the working world and begin a new chapter in life. For some, retirement means peace by the beach. For others it means traveling, personal projects, or more time with family. However, neglecting your retirement plan in your younger years wouldn’t be doing it any favors. Which is why you should learn how to keep your 401(k) plan afloat when life and the market takes unexpected turns.Continue reading “4 Ways to Keep Your 401(k) Plan Afloat”