Category Archives: Savings Plan

Is Wall Street Eating Your 401(k) Nest Egg?

From NPR News

Americans collectively are losing billions of dollars a year out of their retirement accounts because they’re paying excessive fees, according to researchers studying thousands of employer-sponsored retirement plans across the country.

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Why Dave Ramsey’s investment advice sounds more logical than it really is

From LifeHealthPro

Eighteen months ago, I met a wooden boat guru named Ron. He taught me a lot about my wooden boat and why chunking — when you replace only the rotted sections of wood, rather than replacing the entire plank — is dangerous. If you do this, eventually you’re left with a boat composed of many small chunks of wood.

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Making College More Affordable, One Text At A Time

From NPR News

What’s the tiniest change you can think of to create the biggest improvement in someone’s well-being?

That’s the question at the heart of the first annual report by the new Social and Behavioral Sciences Team inside the White House.

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The 4% rule isn’t broken; it is just badly misunderstood

Piggy bank with tape on it

A recent commentary on this site proudly proclaimed the death of the 4 percent rule, but is it truly dead—or just badly misunderstood?

First, though: What is the 4 percent rule, and why would you care if it is dead or alive?

Retirees with savings need a way to decide how much they can reasonably expect to withdraw from those savings without running out of money in their later years. The 4 percent rule is a rule of thumb widely used by financial planners to address this question.

The idea is that retirees with well-diversified portfolios can start by withdrawing 4 percent (actually, it is closer to 4.5 percent) of their holdings—or $4,500 per year for every $100,000 of investments—to allow themselves a cost-of-living increase every year and still be reasonably assured of not outliving their money.

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Reboot Your Savings: Identify Specific Retirement Dreams

Retirement savings golden nest egg

If you were offered the choice to go to Paris next week or — for the same amount of money — take a whirlwind tour of 10 European countries 10 years from now, which would you choose?

The future getaway is the better and likely more fulfilling deal — but few of us would be able to resist the draw of strolling along the Seine seven days from now.

Unfortunately, that inability to delay gratification is what’s keeping many of us from building up a healthy nest egg.

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Debt vs. Retirement: How Much To Put Toward Each

Laura Shin

Recently, a good friend asked me a seemingly simple question: “Laura, does it make sense to save for retirement while also carrying debt?”

The answer, however, is anything but simple and depends on a number of different factors.

“A lot of people are trying to figure out, how do I balance multiple goals? And a lot of times, that’s a combination of paying down debt, building up savings and starting to save or getting on track to save for retirement,” says Sophia Bera, a certified financial planner and founder of Gen Y Planning, adding that she likes to call retirement “financial independence,” which not only doesn’t sound far off but also can come at whatever age you choose.

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Article By:Laura Shin

Americans Note Improved Finances But Still Lack Retirement Savings

Jamie Hopkins

According to Bankrate’s June 2015 Financial Security Index, Americans have noted improvements in their personal finances over the past year.  However, far too many Americans still have not saved enough to meet their financial needs. The 2015 Retirement Confidence Survey, a report by the Employee Benefit Research Institute and Greenwald and Associates, showed that 28 percent of workers have less than $1,000 saved for retirement. This needs to change. Whether you are young and contemplating your first contribution to your company’s 401(k) plan, or you have been procrastinating and are now just getting started – here is what you need to know about saving for retirement.

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Article By: Jamie Hopkins