Wealth Today » Retirement

My 1st Annual 401k Review – Good news!

joshuak — Mon, 05 Feb 2007 05:33:19 +0000

I’ve now been contributing to my company’s 401k for over a year. It’s valued at about 66% more than I had expected it to be, but it’s about half of what I’d hoped for. Overall, it earned pretty well, but the matched contribution was what really put me over the top. I plan on continuing the aggressive allocation in my 401k’s strategy this year unless my debt is completely cleared first, in which case I would allocate more.

I’d love to hear how yours compared.

How 401ks Work

joshuak — Sat, 30 Sep 2006 20:40:21 +0000

I’ve mentioned HowStuffWorks before in the reference of Marshall Brain. The site has a terrific article on How 401ks Work.

IRA vs 401k

joshuak — Fri, 31 Mar 2006 15:45:58 +0000

I recently wrote a query for opinions about investing in my 401k vs an IRA and had little response. Thanks to Faisal for the lone advice, I questioned others in my company about the benefits of doing so. I was pointed to a fund with tremendous earnings vs the paltry 3.5%-4.2% of my 401k. Now I’ll be adjusting my 401k contribution to permit the maximum match possible, and then invest any difference into an IRA.

401k Help Needed for a Performance Based Company Match

joshuak — Thu, 16 Mar 2006 21:28:30 +0000

Our company met our goals, so they’re dropping in a bundle of cash into our 401k. It won’t quite be a 100% match, but it’s pretty good.

The value also went up yesterday to the highest I’ve seen since I’ve been enrolled. That pleased me to peaches.

This is the first time I’ve seen a company do matching based on performance. I think it’s a good idea, because we really get to feel a partnership with the company, but at the same time I wish it was more like a 100% match and I got whatever I put into it. Currently, I’m not putting enough into it to max out a IRA, but people around me tell me to put the minimum in the 401k to qualify for the performance based match, and then invest the rest into an IRA. If I max that out, then put anything else into 401k. I’m not so certain that this is a good idea, but I’m definitely interested in hearing other people’s opinions on it.

How do you feel about this strategy?

Money – Do It Now – 10 Resolutions

joshuak — Mon, 23 Jan 2006 21:32:01 +0000

I found a great all in one article on CNNMoney.com today. It’s not a site I regularly frequent, but this article is definitely top notch. It covers “10 simple strategies for finally achieving your financial goals“.

It takes a deeper look into saving more money, investing smarter, getting out of debt, getting your career kick-started, and more.

It’s actually a collection of 10 articles, and will take some time to get through all of them, but it’s time well spent.

JLP of AllThingsFinancial writes about Resolutions for 2006

joshuak — Sun, 01 Jan 2006 07:40:30 +0000

JLP probably has one of the best all-in-one personal finance posts I’ve seen all year. This post is about making personal finance resolutions for 2006. He enlisted help from Jim, FMF, Flexo, Smarty, Jose, Alexander, and Jonathan. Together, they cover emergency funds, getting out of debt, 401ks, IRAs, budgets, and personal finance statements. It’s worth your time to read every bit and reference every link.

401k Update 001

joshuak — Thu, 22 Dec 2005 14:20:56 +0000

I’ve increased my 401k contribution to 10%. For the first time, I’m now paying myself first. That first 10% of my check comes off the top and goes directly to me. Well, almost, it goes to my 401k. I’ve actually lost money since I first decided to join my companies 401k because the price per unit is less than what I paid for my first contribution, but I’m staying optimistic. I expect dollar-cost-averaging to come to my rescue and continue to help my nest egg grow.

The Wealthy Barber Lesson 3

joshuak — Tue, 06 Dec 2005 14:59:25 +0000

The third lesson from The Wealthy Barber is to make sure to take care of retirement. This is separate from paying yourself first. This is making sure that you’re able to afford your desired lifetime upon retirement.

David Chilton says it best in this quote:

Your years in retirement should be among the best years of your life, so you owe it to yourself to do everything possible now, without crippling your current standard of living, to enable you to enjoy them to the fullest.”

Chilton advises using IRAs, CDs, and 401k as vehicles in the financial planning for a wealthy retirement.

A Book Review of Suze Orman : The Courage To Be Rich

joshuak — Fri, 02 Dec 2005 05:29:30 +0000

I finished Suze Orman’s The Courage To Be Rich last night. I found it rather enlightening. There are 6 parts and 22 chapters. She covers courage, value, love and money, buying a home, retirement, and courage to use your money to connect to the world. She presents her own tales and stories told by clients or other people she’s dealt with and uses these experiences to share financial wisdom. If you’re afraid of money because of the math, she’s provides guidance without throwing a barrage of formulas at you. She’s realistic, informed, and friendly. The book extensively covers some serious issues including money and divorce, money and retirement, and money and financial ignorance. She explains the value of getting second opinions. She shows how some kind of active interest in creating wealth will benefit everyone. If you’ve never read any of her books, the first part is probably the best part. It helps you overcome your fear and procrastination related to money. The 5th part helps you plan for retirement and has a really good chapter on IRAs. I think the book would be good for beginner investors and those readers just about to jump out of the debt hole. The part on money and love is good for newlyweds and people considering divorce. It’s not for people looking to start their own business. It’s not for those looking for trading secrets. I’ve read other books that give more detail on becoming debt free, so this wouldn’t be my first choice for readers seeking that advice. My wife now plans to read it, and I’ll ask her to do a review of it after she’s read it too.

My 401k contribution will begin

joshuak — Mon, 28 Nov 2005 22:24:25 +0000

I got started in the 401k. It doesn’t really seem like enough, but I guess anything’s better than nothing. Fortunately my company does contribute to a separate pension plan for me.After I pay off my credit cards and car payment, I want to start saving for a home. I figure I can create some kind of a strategy to increase my contribution. I think increasing what I contribute by $5-10 each month will help me get where I want to be. Does anyone else have a better suggestion on how to increase your savings in the long term?