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 403(b) plans are tax-deferred savings vehicles for employees of certain nonprofit institutions. the 403(b) plan can be a crucial element in their retirement-saving strategy. Employer-sponsored 403(b) plans allow participants to contribute pretax dollars into a retirement savings account, then withdraw funds when they retire, permitting account earnings to grow on a tax-deferred basis. Similar to their private sector counterparts, 401(k) plans, 403(b) plans have a variety of rules that govern contributions, withdrawals, and other factors that current and potential participants should be aware of.
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Read more... [403(b) Plans]
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Questions about Roth 401(k) |
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 1.How is a Roth 401(k) plan different from others?
Roth 401(k) plans permit post-tax contributions, tax-free investment growth, and tax-free qualified withdrawals.
2.Who can contribute to a Roth 401(k)?
If your employer chooses to offer a Roth 401(k) plan, you may opt to participate in it.
3. Can I contribute to both a Roth 401(k) plan and a traditional 401(k) plan?
If your employer provides both a Roth and a traditional 401(k) plan, you can contribute to both, subject to certain contribution limits.
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Read more... [Questions about Roth 401(k)]
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Let`s build a Laddered Retirement Portfolio |
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 Before You Start
• Think thoroughly about your current plans for securing an adequate retirement income stream.
• Size up your investment priorities.
• Calculate your retirement savings goal.
• Remember that assembling and managing a laddered bond portfolio may be complex and beyond the ability of less experienced investors who are working alone
• A bond ladder is a portfolio of bonds with maturity dates . By holding bonds to maturity rather than trying to buy and sell them in the secondary market, investors might reduce the potential for losses caused by interest rate volatility and market inefficiency. There are two broad types of bond ladders. One may be implemented more or less perpetually for trusts, endowments, and other applications with extended planning horizons. The second form of bond ladder can be implemented for individuals whose personal financial plans might have a definite end-point in mind.
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Read more... [Let`s build a Laddered Retirement Portfolio]
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 Are you and your spouse in agreement in the matter of using your home to help finance retirement? If so, consider if your plans are realistic. Begin checking the cost-of-living implications that would be associated with moving to a different part of the country. There are strategies for accessing home equity. They consist of selling your house and moving to a smaller residence, relocating to a community where the cost of living is more affordable, or obtaining a reverse mortgage. It`s advised not to rely on the value of your home to finance your later years. Accessing home equity by selling your house may have the greatest appeal if you are able to find alternate housing without significantly compromising your lifestyle.If you evaluate reverse mortgages, review the fees and overall cost of borrowing (total interest paid over time), which you might consider.
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Read more... [Retirees and home equity]
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 Why to invest in an employer-sponsored qualified retirement plan? First of all to pursue your long-term financial goals!
It is important to remember that:
• 401(k) participants can borrow half the amount in their account, up to a maximum of $50,000.
• You must be repa loans within five years.
• Interest rates are also generally competitive.
• Participants leaving their company before fully repaying a loan could end up owing federal income taxes and a 10% early withdrawal penalty on the balance
• You should carefully read all of the rules governing loans from your plan.
• Take into consideration whether you could afford repaying the full amount of your loan within 30 days of leaving the company.
• ask your bank or credit union about a personal loan or a tax-deductible home equity loan.
• You shold check your household finances to figure out whether improved spending habits could eliminate the need for a loan.
• You should decide whether you can afford to make loan payments in the future while still contributing to your plan.
• You should think how long you're likely to remain with your current employer.
• Don`t forget to calculate an up-to-date retirement savings goal
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