A little humor and a good reminder that you should not depend on the US government to provide for you in retirement. If you haven’t yet, take some time to develop a plan to begin saving for retirement today. Two of my older blogs can provide you a good starting point for knowing which account to start saving your money in and a good recommendation on where to invest your money.
I read a disturbing article in the WSJ this morning that cited a rise in employees investing their 401(k) dollars in their own firm. As I stated a couple months ago, this is a VERY BAD IDEA because you do not want your 401(k) returns to be highly correlated with your employment and pay increases. In addition, I’m a firm believer that you should not own any individual stocks EVER because of the heavy risk associated with doing so and that this…
[Read More...]One of the most important parts of losing a job or taking on a new job and leaving your current employer will come around moving the pile of cash you have accumulated in your 401(k). Below I have outlined the things to keep in mind through-out the process.
1. Should you roll your 401(k) into an IRA or your new employers 401(k)
[Read More...]Are you transitioning directly into a new job?
Your best option if you are changing employers is to roll your 401(k)…
Do you own any of your employers stock? You definitely should not. An enormous amount of your financial security is already dependent on your companies performance. If your company struggles, you could not receive a bonus, a raise, or even lose your job. It would not be prudent to also have part of your investment portfolio directly dependent on your firms performance. Diversifying your investments lowers your portfolios risk and helps you to sleep at night.
*Note
It’s ok to participate in your firms…
Saving money should be a very simple task, but it is often times built up into an impossible challenge. For those of you saying that you save plenty of money, check out this article to see that American’s actually had a negative savings rate in 2005/6. Here is a chart detailing the US Savings Rate over the past 20 years (data from here):
As you can see, the rate has steadily declined over time and has reached negative levels or levels just above 0.…
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