Smart401k Insights

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Smart401k Insights

10 Do's and Dont's for Your Retirment Plan

Over the last twenty years 401(k) plans have taken on an increased role in retirement investing. In many cases they are the primary, if not only, means an individual uses to save for retirement. Unfortunately, many people are either unwilling or ill-prepared to spend the time necessary to properly set-up and monitor their retirement account. With that in mind, we wanted to provide those of you who want to take control of your account ten helpful tips to start you on your way towards an appropriate investment strategy.

Smart Savings: Staying the Course

In the first two installments of Smart Savings, we covered the first two decades of post-college life -- your 20s and your 30s. We started by laying out how to get started saving for retirement even though 59 1/2 years old may be a long way off. We then took a look at how to fine tune that savings plan to make sure that your savings arrow is headed straight for a retirement bull's eye.

In the first installment of our Smart Savings series, we talked about the steps that a new saver -- like a recent college grad -- should take to start off on the right foot. We talked about some of the main types of savings plans and a plan of action to get started. And of course while we were primarily talking about younger savers, it's better late than never to start saving, so if you find yourself a little older and just starting to save, that first article is a great place to start.

Smart Savings: Start Now

You may be a new college graduate, fresh off the campus and at your first job. Or maybe you've been out of college for a few years and are just beginning to think about saving for the future. In either case, you're starting to consider your options for stashing away your cash.

Roth 401(k) vs. Traditional 401(k)

As the popularity of Roth 401(k)s continues to increase, we have received a growing number of client inquires regarding whether they should take advantage of this option in their 401(k) account (Note: Roth 401(k)s became available to employers on January 1, 2006, but are not offered as an option on all 401(k)s). While your employer may not have a Roth 401(k) option available to you now we expect that you will likely be presented with the opportunity in near future. With that in mind, we thought we’d outline the main factors to consider when deciding between

Risk and Investing

As you manage your investments and look toward your financial future, it's important to gain a solid understanding of risk and how it affects you as an investor. The word "risk" often appears in financial discussions and it can be confusing and even intimidating. No matter what type of investor you are or where you keep your retirement savings, you are assuming a certain amount of risk. The key to risk, as it pertains to investing, is to understand what type of investor you are (conservative to aggressive) and what types of investments fit your risk tolerance level.

A Primer on Annuities

As the baby boomer generation reaches retirement, many individuals will be presented with the opportunity to purchase an annuity. We often hear from our clients wondering whether an annuity is an appropriate investment for them. Annuities are complex financial instruments that are sold as an income-generating option by financial advisors. The goal of this article is to introduce you to the basics of annuities, the drawbacks to investing in them, and when an annuity might be a suitable investment.