*Scared to open your 401K statement?
Financial Stress
*Don’t think you will ever recover from the losses?
*Too many investment choices and don’t know how to evaluate?
This ebook will help you open your statement, figure out your 401k contribution limits and gain confidence-knowing that your money is working for you- in your time frame, with your risk tolerance, and with the return you need to meet your goals.
You deserve to have confidence in choosing and maintaining the most valuable investment you own-your 401K plan.
Sign up ( in the box to the right) for my e-newsletter filled with wealth building tips and to buy my eBook:
The 401K First Aid Kit: Stop Your Portfolio Bleeding and Get Back to Financial Health
You will also get:
* a $10 DISCOUNT off the retail price
* my most popular report to download now—THE 9 BIGGEST 401K MISTAKES YOU CAN MAKE
* Bonus report-How to do a Roth IRA Conversion for 2010
* Free Whole-Hearted-Way e-newsletter (written by Fern Alix LaRocca CFP® with over 25 years experience)
Many people were not allowed to convert their IRAs to a Roth IRA due to the income limitations. That has changed due to the Pension Protections Act of 2006. Now everyone is eligible to convert their 401ks to IRAs and then to a Roth IRA or from an IRA to a Roth IRA. But should you?
According to a Fidelity survey of 800 retirement plan holders with household income of $100,000 or more 83% who work with an advisor said they were unaware of the changes to the law and 54% said they didn’t know whether they would be eligible to convert. Many brokers and advisors are looking at this as an opportunity to talk to clients and get them to convert their money to a Roth that is managed by them, but is this a good deal for you?
What’s so attractive about the Roth IRA is that it allows tax free accumulation of earnings and you don’t have to pay tax when you withdraw the money.
For a thorough report on how to do a rollover from a 401k to an IRA and conversion to a Roth IRA, sign up in the box and you will get the free pdf download.
Technorati Tags: Roth 401K, Roth IRA Rules
Don’t know if you should contribute to your 401K or not? You are not alone. Many people find the information overwhelming. Stop wondering if you can do better somewhere else. The 401K account is there to help you grow money that will supplement your social security. Take full advantage of it by following these five tips to make your 401K contributions grow fast:
1. Know your 401K limits. The first thing you need to know is when you “vest” or when you can start to have money taken out of your check. Your Human Resource or Benefits department can usually answer that for you.
2. Your 401K contributions will be limited to a percentage of your salary or maximum fixed amount. Use that information to decide how much you want to contribute. Jump in and put in the maximum. You can always change it later.
3. Know the 401K Rules. What does your plan document allow you to do in the account? Do you have hardship provisions or loan features? Even though this money is for the long term, you should understand any 401K early withdrawal features your plan may offer.
4. Your 401K account will have investment options that you need to become familiar with. When you take out all of the ones that are actively managed with high fees, you will be left with some great low cost index funds to choose from. Diversify into asset categories and asset classes.
5. 401K early withdrawal penalties are severe so don’t do it. Have money for emergencies set aside so you don’t have to withdraw your 401K money.
The 401K plan is a retirement plan account. It is designed for long term savings. Everyone knows how difficult it is to live on Social Security income alone. The 401K account can provide an addition income for you. It has tax savings and tax deferral features that make any outside investment hard to compete with. Take advantage of this opportunity and contribute to your 401K plan.
2009© Fern Alix-LaRocca CFP® All Rights Reserved
Get more tips on how to plan your 401K contributions by grabbing the 401K First Aid Kit:Stop Your Portfolio Bleeding and Get Back to Financial Health E-book at (coming soon -so sign up now)
You will also receive the free Whole-Hearted-Way e-newsletter written by Fern Alix LaRocca, a Certified Financial PlannerTM and Wealth Coach with over 24 years experience as a fee-only Financial Advisor.
