Top 3 Ways Not To Let Too Many Investing Choices Overwhelm You

Do Not Let Too Many Choices for Investments Overwhelm You

Did you know that there are thousands actively traded mutual funds in existence? Investment companies are adding more every week too. Between stocks, bonds, actively traded mutual funds, index funds, ETFs, Roth IRA, and the like, investors have more choices than ever. Have you ever become overwhelmed with too many choices? Has it made you hesitant to start investing? It shouldn’t hold you up investing. Three Ways Not To Let Too Many Choices For Investing Overwhelm You Mirror The Stock Market Researchers have conducted several in-depth studies over the past few years that have shown that stock pickers cannot consistently, year in and year out beat the overall stock market rate of return. So, if you can’t beat them, you might … Read more

Is Geopolitical Risk A Danger To Your Retirement?

Is Geopolitical Risk A Danger To Your Retirement?

Is Geopolitical Risk A Danger To Your Retirement?Your retirement account is most likely the most important investment account you’ll ever have. The reality is that we work incredibly hard to retire; spending the vast majority of our lives working and saving so that we can enjoy our golden years. However, in times of geopolitical risk, unrest, and war, several people lose everything they’ve worked for; forcing them to work long into their retirement years.

The threat that geopolitical risk and unrest is becoming to retirement investments and how converting your 401k retirement plan and other qualified retirement accounts to gold can help protect everything you’ve worked for.

Is Geopolitical Risk A Danger To Your Retirement?

Russia vs. Ukraine

The first geopolitical issue on the chopping block today is the conflict between Russia and the Ukraine over the Crimea Peninsula. The Crimea Peninsula is property of Ukraine.

However, Russia claims that they have legal rights to the strategic land. As a result, months ago, Russia brought troops to the Crimea Peninsula. Since this move, we’ve seen military action from rebels and Russia and corresponding responses from Ukraine.

In an effort to end the crisis, the western countries have imposed sanctions on Russia for their aggression toward Ukraine. In response, Russia refused to trade many food products with western countries; ultimately leading to more financial troubles for the Eurozone.

In the beginning of this conflict, it was a major part of the stories we heard in the news. While news coverage has died down a bit, the conflict between the two countries is very much alive.

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Are You Saving Enough For Retirement In Your 401k? Probably Not!!

The dangers of 401k loansAre you saving enough for retirement? How much is enough? Is there really such a thing as saving enough for retirement?

While there are a few rules of thumb that you can look at to find out how much money you need to save in your 401k for retirement, the sad fact of the matter is that we are simply not saving enough for retirement. Click here to learn more about Motif Investing

We Are Not Saving Enough For Retirement

Earlier this month, Fidelity Investments released its quarterly analysis of the 401k retirement plans that it manages. The report showed that the average retirement investor at Fidelity had an average 401k balance of $77,300. This is up 12% from the previous year if you count employer matching contributions. The problem is that this increase is simply not enough. The balances for most 401k retirement plans are far too low for the investors’ ages.

Life always seems to come along and knock people off of their retirement savings plan that they have set for themselves or have had a financial planner establish. That would not be too bad because we all know that Murphy is out there just waiting. But, we have compounded our problems by not saving enough for retirement in our 401k retirement plans like Fidelity found.

So, How Much Are We Really Saving?

According to the Fidelity report, here are the average 401k retirement plan account balances broken down by age group at the end of last year. Ages 50 to 54 had an average 401k account balance of $111,900. Ages 55 to 59 investors had $134,600. Those ages 60 to 64 had saved $133,100 in their 401k plans. And those investors who were 65 to 69 years-old only had $136,800 in their 401k plans.

These amounts are obviously not enough to retire on. For example, a typical annuity of $250,000 earning a 5% rate of return for a 20 year payout will only produce about $1,600 of income per month.

Even if you were to earn $2,000 from Social Security and/or a pension, you would still struggle to maintain the same standard of living that you have grown accustom to during your working years with only $250,000 saved for retirement. And, the savings are far lower according to Fidelity as we’ve seen.

According to the 2012 Annual National Survey Assessing Household Savings produced by the America Saves organization and the American Savings Education Council:

  • 66% of Americans spend less than their income and save the difference
  • Only 66% of Americans have sufficient emergency savings to pay for unexpected expenses
  • Only 42% of Americans say they have a savings plan with specific goals
  • 52% of non-retired Americans think they are saving enough for a retirement

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20 Things I Should Have Known Better About My Finances

Things I Should Have Known Better About My Finances

Should Have Known Better About My FinancesI should have known better about my finances in my 20s. Heaven knows that I have made a few financial mistakes along the way.

This list of what I should have known better about my finances in my 20s is an attempt to help others before they make some of the same mistakes. It is not too late though to recover from your errors though if you have made these listed below.

20 Things I Should Have Known Better About My Finances

1. Don’t borrow from your 401k retirement plan. Even though you are paying yourself back with interest, you are going to be forever behind the retirement savings power curve.

2. Invest enough to get the employer matching contribution to your 401k Retirement Plan.

3. Whole life insurance policies are a waste of money. Term life insurance is a much better use of your money.

4. Your children don’t need any life insurance policies. You should have enough to bury them with your emergency fund.

5. Maxing out a Roth IRA is one the best things we can do. This should be your goal as soon as you are financially able after you start working.

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The Dangers Of 401k Loans And Your Retirement

Dangers Of 401k Loans And Your Retirement

The dangers of 401k loansIf you are in a financial bind, seeing the money sitting in your 401k retirement account can be tempting. It is a tempting source that you may consider tapping in order to help alleviate some of your financial problems. However, your 401k retirement plan is there to be your safety net in retirement. Your 401k is not designed to be your emergency fund now. It may seem like it is not a big deal because you are essentially borrowing the money from yourself with interest, but it does not really work that way.   There are dangers of 401k loans. Here are some dangers of why you should avoid taking a loan from your 401k retirement plan.

You Must Repay Your 401k Loan

When you take out a 401k loan from your retirement plan, you must repay it. Defaulting on the loan can have serious tax consequences that can erode all of your hard work that took years to build up. Your employer is required to treat your 401k loan like any other loan or financial agreement. You must set up a repayment plan that starts immediately after taking the loan. Many 401k retirement plans now prevent future contributions to the 401k until the loan is repaid. This prevents you from continuing to grow your money and can serious degrade your future earnings that you will not be earning on the money you borrowed and on any contributions you are not allowed to make while you repay the loan. If you are lucky, you will still be allowed to contribute money to your 401k plan while repaying the loan. Or, you could consider forgoing contributions in favor of early loan repayment.

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