Could there be potential pitfalls to the Roth 401(k)?
According to this article by Jeanne Sahadi on the CNN/Money website talks about some of the drawbacks to investing in the new Roth 401(k) that will be available starting in January of 2006. The Roth 401(k) seems like a no-brainer until you consider the potential tax issues.
However, the younger you are, the more beneficial the Roth 410(k) seems to be. Why? Because the longer you have for your money to grow, the more likely you are to be in a higher tax bracket when you retire.
Also, Jim at Blueprint wrote a pretty nice piece about the Roth 401(k) a while back. He also links to a website called Roth401k.com that was set up specifically for the Roth 401(k).You may want to check it out.
Tags: Roth 401(k), Roth 401k, Retirement Planning
Monday, 1 August 2005
Top 6 Reasons to Participate in Your 401(k) Retirement Savings Plan`
My wife's company sent this out today and I thought I would share it with you. I agree with all of them except number one. I think number one should stress the fact that you won't have to rely on Uncle Sam during retirement. Anyway, here they are:
6. You can increase your take home pay, really!
5. The "company match" can help your investments grow
4. Your money can go with you, job to job!
3. Your plan's investment choices are managed by professionals (except for parent company stock)
2. The plan allows access to maoney in an emergency
1. Automatic payroll deduction makes it easy to save
Tags: 401(k), 401k, Reasons to save in a 401k
6. You can increase your take home pay, really!
5. The "company match" can help your investments grow
4. Your money can go with you, job to job!
3. Your plan's investment choices are managed by professionals (except for parent company stock)
2. The plan allows access to maoney in an emergency
1. Automatic payroll deduction makes it easy to save
Tags: 401(k), 401k, Reasons to save in a 401k
This Week's Carnivals
Saturday, 30 July 2005
The Future of AllThingsFinancial
I took the first step towards setting up AllThingsFinancial on its own. I registered AllThingsFinancialBlog.com (it's not an active address yet) for 5 years. Now I'm looking for a host, which is both confusing and intimidating.
I have heard of Dreamhost and TypePad. Jim at Bargaineering uses Dreamhost and has told me that he is happy with it. My main questions are:
1. How much space is enough? Is 2400 megabytes large enough? What does that mean?
2. What about bandwidth? What does that mean? I have ambitions to make AllThingsFinancial grow but I want to be realistic. I don't want to buy a bunch of extra storage and bandwidth if I won't need it.
3. Anyone using TypePad or Dreamhost?
4. Is MoveableType or WordPress better? Is there another programming language that I'm not thinking of?
What other issues should I think about?
I have heard of Dreamhost and TypePad. Jim at Bargaineering uses Dreamhost and has told me that he is happy with it. My main questions are:
1. How much space is enough? Is 2400 megabytes large enough? What does that mean?
2. What about bandwidth? What does that mean? I have ambitions to make AllThingsFinancial grow but I want to be realistic. I don't want to buy a bunch of extra storage and bandwidth if I won't need it.
3. Anyone using TypePad or Dreamhost?
4. Is MoveableType or WordPress better? Is there another programming language that I'm not thinking of?
What other issues should I think about?
Friday, 29 July 2005
Wilmington Trust Has an Account Offering 3.35%
NOTE: This is not a recommendation. I just saw this information on the web and thought I'd pass it along. I also am not getting paid to promote this.
Wilminton Trust has a savings account similar to ING Orange and Emigrant Direct's American Dream Savings Account. Savers might want to check it out.
Tags: Wilmington Trust Savings, Wilmington Trust Savings Account, ING Direct Orange Savings Account, ING Direct, Emigrant Direct
Wilminton Trust has a savings account similar to ING Orange and Emigrant Direct's American Dream Savings Account. Savers might want to check it out.
Tags: Wilmington Trust Savings, Wilmington Trust Savings Account, ING Direct Orange Savings Account, ING Direct, Emigrant Direct
OT: A Little Friday Afternoon Humor
My father-in-law sent this to me today. I'm calling this the Dynamic Impact of Aging:
Jacob, age 92, and Rebecca, age 89, living in Florida, are all excited about their decision to get married. They go for a stroll to discuss the wedding, and on the way they pass a drugstore. Jacob suggests they go in.
Jacob addresses the man behind the counter: "Are you the owner?"
The pharmacist answers, "Yes."
Jacob: "We're about to get married. Do you sell heart medication?"
Pharmacist: "Of course we do."
Jacob: "How about medicine for circulation?"
Pharmacist: "All kinds."
Jacob: "Medicine for rheumatism and scoliosis?"
Pharmacist: "Definitely."
Jacob: "How about Viagra?"
Pharmacist: "Of course."
Jacob: "Medicine for memory problems, arthritis, jaundice?"
Pharmacist: "Yes, a large variety. The works."
Jacob: "What about vitamins, sleeping pills, Geritol, antidotes for Parkinson's disease?"
Pharmacist: "Absolutely."
Jacob: "You sell wheelchairs and walkers?"
Pharmacist: "All speeds and sizes."
Jacob: "We'd like to use this store as our Bridal Registry."
Jacob, age 92, and Rebecca, age 89, living in Florida, are all excited about their decision to get married. They go for a stroll to discuss the wedding, and on the way they pass a drugstore. Jacob suggests they go in.
Jacob addresses the man behind the counter: "Are you the owner?"
The pharmacist answers, "Yes."
Jacob: "We're about to get married. Do you sell heart medication?"
Pharmacist: "Of course we do."
Jacob: "How about medicine for circulation?"
Pharmacist: "All kinds."
Jacob: "Medicine for rheumatism and scoliosis?"
Pharmacist: "Definitely."
Jacob: "How about Viagra?"
Pharmacist: "Of course."
Jacob: "Medicine for memory problems, arthritis, jaundice?"
Pharmacist: "Yes, a large variety. The works."
Jacob: "What about vitamins, sleeping pills, Geritol, antidotes for Parkinson's disease?"
Pharmacist: "Absolutely."
Jacob: "You sell wheelchairs and walkers?"
Pharmacist: "All speeds and sizes."
Jacob: "We'd like to use this store as our Bridal Registry."
Money 101
The CNN/Money website has a really good series called Money 101. I have listed the entire series below and added links to posts from AllThingsFinancial that are related to the subject.
Here we go:
_______________________________________________________
LESSON 1
Setting priorities
Here's help for the first -- and often the hardest -- step in achieving your financial goals: deciding which goals to pursue.
_______________________________________________________
LESSON 2
Making a budget
How to bring your spending under control, so that you get the most out of every dollar.
_______________________________________________________
LESSON 3
Basics of banking and saving
Here's how to get the best banking services at the best price, either online or off.
_______________________________________________________
LESSON 4
Basics of investing
An introduction to making money in stocks, bonds and mutual funds.
Related posts on AllThingsFinancial:
Understanding the Time Value of Money
How to Calculate the Present Value of an Annuity
How to Calculate Annualized Rate of Return
_______________________________________________________
LESSON 5
Investing in stocks
The market can be a great place to turn savings into wealth -- or to lose your shirt. Here are some fundamentals of investing wisely.
Related posts on AllThingsFinancial:
A Look Back at Index Returns
The Importance of Understanding Objectives When Investing
_______________________________________________________
LESSON 6
Investing in mutual funds
It's a mutual-fund jungle out there. Here's how to create a simple portfolio that works.
Related posts on AllThingsFinancial:
What's a Wrap Account
Understanding Mutual Fund Fees
Questions to Ask Your Broker
Questions to Ask Your Broker Before You Buy a Load Fund
How Does an A-Share Mutual Fund Work?
_______________________________________________________
LESSON 7
Investing in bonds
Bonds can provide a steady and reasonably secure income, while adding ballast to your portfolio--but only if you really understand what you're buying.
_______________________________________________________
LESSON 8
Buying a home
Owning your home is part of the American Dream, but if you’re not prepared, buying it can be a nightmare. Here are some fundamentals for buyers and sellers.
Related posts on AllThingsFinancial:
The True Cost of an Interest-Only Mortgage
Comparing 15, 30, and 40-Year Mortgages
Beware of Interest-Only Mortgages
_______________________________________________________
LESSON 9
Controlling debt
You've got to know when to hold debt--and when to fold it. This lesson shows you how to accomplish your financial goals by making debt work for you.
_______________________________________________________
LESSON 10
Employee stock options
More companies are handing out stock options, and to a much broader group of employees. This lesson gives you vital information on how to handle ESO's.
_______________________________________________________
LESSON 11
Saving for college
It's not rocket science, just common sense. By starting early and investing regularly, your children may have a wider choice of colleges, and paying the bill won't hurt as much.
_______________________________________________________
LESSON 12
Kids and money
Up until they start earning a living, and sometimes well beyond that, kids are apt to spend money like it grows on trees. This lesson will help you put your children on the road to handling money responsibly.
Related posts on AllThingsFinancial:
Great Resources for Kids
Roth IRAs for Kids
Teaching Kids About Business and Investing
_______________________________________________________
LESSON 13
Planning for retirement
Achieving a comfortable retirement in the 21st Century requires a new approach to retirement planning.
Related posts on AllThingsFinancial:
How Much do You Need During Retirement?
What is a Safe Withdrawal Rate From Retirement Savings?
Taking Money Out of Your Retirement
_______________________________________________________
LESSON 14
Asset allocation
The single most important thing an investor can do is practice asset allocation. Here's how.
Related posts on AllThingsFinancial:
What the Heck is Asset Allocation?
_______________________________________________________
LESSON 15
Hiring financial help
What to keep in mind when when seeking professionals to handle your financial planning, stock trading, insurance coverage and tax returns.
Related posts on AllThingsFinancial:
Questions to Ask Your Broker
What is Fee-Only Financial Planning?
_______________________________________________________
LESSON 16
Health insurance
Whether your employer provides you with a group medical plan or you need to buy coverage on the individual market, understanding how health insurance works is the best way to get your money's worth.
_______________________________________________________
LESSON 17
Buying a car
Buying a car is like no other shopping experience. The choices seem to be endless. This lesson helps you sort through your options.
_______________________________________________________
LESSON 18
Taxes
Among the long list of necessary evils we must encounter throughout our lives, perhaps the most constant -- taxes -- is also the least understood. But the whole process isn't nearly as baffling as you may think.
_______________________________________________________
LESSON 19
Home insurance
Homeowners' insurance can be a nightmare. It's costly, confusing, and unrewarding -- until you have to use it. Here, you'll learn how to purchase peace of mind now and later.
_______________________________________________________
LESSON 20
Life insurance
Life insurance is critical to financial planning. It's a necessity for anyone with dependents who would be affected financially by your demise. Yet life insurance is one of the hardest financial products to understand and it's sold by agents who are sometimes more concerned with their commissions than your needs. This Money 101 lesson is all about a better way to buy life insurance.
Related posts on AllThingsFinancial:
How Much Life Insurance do You Need?
_______________________________________________________
LESSON 21
Estate planning
Americans are in the midst of one of greatest inter-generational transfers of wealth in history, yet few of us have done any planning for it. Here's how to start.
Related posts on AllThingsFinancial:
The Beauty of a Stretch IRA - An Example
Stretching an IRA
Trusts & IRAs - Part 2
Trusts & IRAs
Make Sure Your IRA Can be Stretched
Stretch a Small Roth IRA
_______________________________________________________
LESSON 22
Auto insurance
Auto insurance can be a nightmare. It's costly, confusing, and unrewarding -- until you need it. Here's how to purchase peace of mind now and later.
_______________________________________________________
LESSON 23
401(k)s
It's the most important tool you've got for retirement. Here's how to make the most of it.
Related posts on AllThingsFinancial:
Don't forget to Rebalance Your 401(k)
Trusts & IRAs - Part 2
IRS Publication 590
Trusts & IRAs
Make Sure Your IRA Can be Stretched
Stretch a Small Roth IRA
Facts About the Roth IRA
Should You Leave Your 401(k) With Your Company?
The Beauty of a Stretch IRA - An Example
Stretching an IRA
IRAs
Tags: Money 101, Basics of Financial Planning
Here we go:
LESSON 1
Setting priorities
Here's help for the first -- and often the hardest -- step in achieving your financial goals: deciding which goals to pursue.
LESSON 2
Making a budget
How to bring your spending under control, so that you get the most out of every dollar.
LESSON 3
Basics of banking and saving
Here's how to get the best banking services at the best price, either online or off.
LESSON 4
Basics of investing
An introduction to making money in stocks, bonds and mutual funds.
Related posts on AllThingsFinancial:
Understanding the Time Value of Money
How to Calculate the Present Value of an Annuity
How to Calculate Annualized Rate of Return
LESSON 5
Investing in stocks
The market can be a great place to turn savings into wealth -- or to lose your shirt. Here are some fundamentals of investing wisely.
Related posts on AllThingsFinancial:
A Look Back at Index Returns
The Importance of Understanding Objectives When Investing
LESSON 6
Investing in mutual funds
It's a mutual-fund jungle out there. Here's how to create a simple portfolio that works.
Related posts on AllThingsFinancial:
What's a Wrap Account
Understanding Mutual Fund Fees
Questions to Ask Your Broker
Questions to Ask Your Broker Before You Buy a Load Fund
How Does an A-Share Mutual Fund Work?
LESSON 7
Investing in bonds
Bonds can provide a steady and reasonably secure income, while adding ballast to your portfolio--but only if you really understand what you're buying.
LESSON 8
Buying a home
Owning your home is part of the American Dream, but if you’re not prepared, buying it can be a nightmare. Here are some fundamentals for buyers and sellers.
Related posts on AllThingsFinancial:
The True Cost of an Interest-Only Mortgage
Comparing 15, 30, and 40-Year Mortgages
Beware of Interest-Only Mortgages
LESSON 9
Controlling debt
You've got to know when to hold debt--and when to fold it. This lesson shows you how to accomplish your financial goals by making debt work for you.
LESSON 10
Employee stock options
More companies are handing out stock options, and to a much broader group of employees. This lesson gives you vital information on how to handle ESO's.
LESSON 11
Saving for college
It's not rocket science, just common sense. By starting early and investing regularly, your children may have a wider choice of colleges, and paying the bill won't hurt as much.
LESSON 12
Kids and money
Up until they start earning a living, and sometimes well beyond that, kids are apt to spend money like it grows on trees. This lesson will help you put your children on the road to handling money responsibly.
Related posts on AllThingsFinancial:
Great Resources for Kids
Roth IRAs for Kids
Teaching Kids About Business and Investing
LESSON 13
Planning for retirement
Achieving a comfortable retirement in the 21st Century requires a new approach to retirement planning.
Related posts on AllThingsFinancial:
How Much do You Need During Retirement?
What is a Safe Withdrawal Rate From Retirement Savings?
Taking Money Out of Your Retirement
LESSON 14
Asset allocation
The single most important thing an investor can do is practice asset allocation. Here's how.
Related posts on AllThingsFinancial:
What the Heck is Asset Allocation?
LESSON 15
Hiring financial help
What to keep in mind when when seeking professionals to handle your financial planning, stock trading, insurance coverage and tax returns.
Related posts on AllThingsFinancial:
Questions to Ask Your Broker
What is Fee-Only Financial Planning?
LESSON 16
Health insurance
Whether your employer provides you with a group medical plan or you need to buy coverage on the individual market, understanding how health insurance works is the best way to get your money's worth.
LESSON 17
Buying a car
Buying a car is like no other shopping experience. The choices seem to be endless. This lesson helps you sort through your options.
LESSON 18
Taxes
Among the long list of necessary evils we must encounter throughout our lives, perhaps the most constant -- taxes -- is also the least understood. But the whole process isn't nearly as baffling as you may think.
LESSON 19
Home insurance
Homeowners' insurance can be a nightmare. It's costly, confusing, and unrewarding -- until you have to use it. Here, you'll learn how to purchase peace of mind now and later.
LESSON 20
Life insurance
Life insurance is critical to financial planning. It's a necessity for anyone with dependents who would be affected financially by your demise. Yet life insurance is one of the hardest financial products to understand and it's sold by agents who are sometimes more concerned with their commissions than your needs. This Money 101 lesson is all about a better way to buy life insurance.
Related posts on AllThingsFinancial:
How Much Life Insurance do You Need?
LESSON 21
Estate planning
Americans are in the midst of one of greatest inter-generational transfers of wealth in history, yet few of us have done any planning for it. Here's how to start.
Related posts on AllThingsFinancial:
The Beauty of a Stretch IRA - An Example
Stretching an IRA
Trusts & IRAs - Part 2
Trusts & IRAs
Make Sure Your IRA Can be Stretched
Stretch a Small Roth IRA
LESSON 22
Auto insurance
Auto insurance can be a nightmare. It's costly, confusing, and unrewarding -- until you need it. Here's how to purchase peace of mind now and later.
LESSON 23
401(k)s
It's the most important tool you've got for retirement. Here's how to make the most of it.
Related posts on AllThingsFinancial:
Don't forget to Rebalance Your 401(k)
Trusts & IRAs - Part 2
IRS Publication 590
Trusts & IRAs
Make Sure Your IRA Can be Stretched
Stretch a Small Roth IRA
Facts About the Roth IRA
Should You Leave Your 401(k) With Your Company?
The Beauty of a Stretch IRA - An Example
Stretching an IRA
IRAs
Tags: Money 101, Basics of Financial Planning
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