Question: Should I take money out of my 401k to pay for my child’s college tuition?

Answer:  We don’t recommend it.  Your 401k needs to be all about your financial security in retirement.  It is not a savings account or emergency fund.  Many employers do offer a loan provision, but you need to know about potential pitfalls in taking out a 401k loan. The loan must be paid back through after-tax payroll deduction.  If you are unable to … [Read more...]

Question: How Much Should I Be Contributing To My 401k Plan?

Answer:  The maximum contribution to a 401k plan in 2014 is $17,500 per year.  For participants who will turn 50 years old or older in 2014, there is an extra allowance of $5,500 called a “catch-up” provision.  This brings your total contribution limit to $23,000 in 2014 and this is over and above any contribution your employer may make such as a matching … [Read more...]

Question: My company has a long list of investment choices for my 401k. How do I know what to choose?

Answer:  Your 401k is really important money because for most employees the pension plans are gone.  Your 401k is the main account to save for your retirement.  It needs to be nurtured and protected from your first day of work to your retirement day.  When it comes to investment choices, take a look at the index fund options in your plan.  They should be the … [Read more...]

STOP

Before you trigger your social security benefits check all your options.  The decision you make today will impact your income for the rest of your life.  There are several little-known strategies which may increase your lifetime benefit substantially.  Check with a professional advisor trained in retirement income strategies to be sure you elect the best … [Read more...]

Retirement Plan

If you do not have enough money set aside to live comfortably in retirement, when would you want to know about it?  The Baby Boomer generation is not prepared!  Perhaps the single biggest risk to a secure retirement is the risk of longevity.  The risk of longevity, you ask?  Doesn’t that mean living a long time?  What could be bad about that?  Yes, I mean … [Read more...]