The Pros and Cons of Automatic 401(k) Enrollment
A 2006 law designed to increase retirement savings is allowing companies to auto-enroll employees in 401(k) plans at a lower contribution rate than they would normally contribute on their own. Did the law result in more negative effects than positive? Here are the pros and cons: Pros of Auto-Enrollment 18% more people Since more people…
Ten Social Security Benefits You Didn’t Know You Had
Many Americans don’t realize that Social Security provides medical, disability and dependent coverage for parents, spouses, children and themselves. Do not lose hope for social security. While there are funding problems, these problems can be fixed by Congress. The Social Security System gives the below benefits to the average person for his or her 10…
Milking a Business for Retirement
New strategies designed to help small-business owners save for retirement or pass down their companies to heirs can make sense for some people but also carry risks. Many retirement-plan options presently exist for small businesses to administer, but generally require that owners provide the same benefits to other employees, making them expensive — and they…
How Much Are We Really Saving in Our 401(k)s?
According to the Federal Reserve’s Survey of Consumer Finances (SCF), a typical worker who ends up at retirement with earnings of slightly more than $50,000 and who contributed 6 percent steadily with an employer match of 3 percent should have about $320,000. However, the typical individual has only $78,000. Younger people do not appear to…
Newlyweds: How to Blend Your Finances
Money is a common cause of conflict among couples. Blend your financial lives successfully, and you are more likely to have a happy marriage, according to Cathy Pareto, a financial adviser in Coral Gables, Fla. Early and frequent communication discussing debts, income, credit history, investments and goals is critical. When starting out in a relationship,…
401(k)s: They Are A-Changin’
Many companies are revamping their retirement savings programs and employees need to revise their financial plans to protect their nest eggs. What's the best way to do it? First, do not stop contributing even if you are unhappy with the new option. You still should keep contributing to your company’s 401(k) plan. There are few…