Qualified/Retirement

/Qualified/Retirement

Retirement is probably the number one thing most older Americans worry about.  The posts in this category are about retirement and qualified planning.  Retirement accounts are often referred to as qualified because that is how they are usually classified by the IRS.

What Does Average Really Mean When it Comes to Retirement Savings?

Maybe it has to do with the aging population in the US, or maybe it has to do with the fact that I scan personal finance/investment headlines like most people check their email, but it seems to me that there is an obsession with discussing how woefully unprepared the average American is to retire.  A google search of "Average American Retirement Savings" brings up 1,200,000 results and a news search limited to the past month brings up hundreds upon hundreds of results.  Worst part about it? NONE OF THEM MATCH!  Just taking a few very recent examples: 10/22/2014 - US Today Middle-class people [...]

By |2016-03-07T22:49:45+00:00April 27th, 2015|Qualified/Retirement|6 Comments

6 Months Later How Has Meddling With my 401(k) Fared

Approximately 6 months ago I came up with a nonscientific plan for my 401(k).  At the time I felt that the market was reaching a high it had to come down from and I should put my contributions into cash rather than my balanced portfolio.  I would then allocate the cash reserves when the market corrected itself or took dips.  If this sounds like marketing timing...it is, and it is not a long term strategy for my 401(k).  Notwithstanding, since I have been doing it and since I always want to hold myself accountable I should share the results. Market Timing with [...]

By |2014-05-29T23:52:21+00:00May 30th, 2014|Qualified/Retirement|8 Comments

Do Not Liquidate Your 401(k) When Leaving Your Job

For better or worse the 401(k) seems to be the main savings vehicle for Americans, so it always shocks me how little most people actually know about it.  Financial Advisor Magazine (along with every other main stream media outlet) jumped on a recent report by Fidelity (oddly enough none of these main stream outlets seem to be linking to the report), which highlights a significant problem. 35 percent of all participants in plans it administers cashed out their 401(k) balances when leaving their jobs last year... Four out of 10 workers (41 percent) age 20 to 39 cashed out, and 51 percent [...]

By |2014-05-27T23:35:47+00:00February 14th, 2014|Qualified/Retirement|4 Comments

With Markets Flying High Do You Take any Proactive Moves?

I am making a move that I have never done before, I am going to proactively respond to what may be considered a heated market.  I will say up front that I am not fully convinced it is 100% the best move ever which is why I am only taken a limited stance.  The market is pretty ridiculous these days hitting new all-time highs every few days.  Overall the market is up 25% from 11/4/12 to 11/4/13 I have stated before that I am not a huge fan of my 401(k), but it does make up a good portion of my net worth.  As [...]

By |2014-05-29T00:04:00+00:00November 5th, 2013|Qualified/Retirement|1 Comment

What Are Your Options When You Inherit an IRA or Other Qualified Account?

Doing some research today I found a great chart produced by the IRS which highlights your options when a spouse or non-spouse inherits an IRA or other qualified Account. As you could imagine the decision you make could cost you and your family tens of thousands in an unneeded taxes. Two Examples of RMDs Gone Wrong with an Inherited IRA For example, if you name your spouse as beneficiary and no contingent beneficiary and your wife passes away what would happen? Your estate would be beneficiary and look above! The IRA will have to be distributed within 5 years, instead of the [...]

By |2014-05-29T23:23:33+00:00October 9th, 2013|Qualified/Retirement|0 Comments