Tag: 401k plan
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End-of-the-Year Personal Finance Checklist for 2021
It is almost time to bid goodbye to 2021. The year has been a mix of challenges and opportunities. With the pandemic settling down and the stock market regaining its old charm, 2021 is ending on a good note. Even though the year brought respite for millions of Americans after the tumultuous 2020, the personal ... -
Are Your Average Retirement Savings Normal?
Retirement saving has always been a financial goal for most Americans. However, despite understanding the importance of saving for their retirement, most Americans are under-saving for their golden years, as reported by PwC’s Retirement in America report. As per the study, one in four Americans have no savings for their retired life, and the remainder ... -
What Is A 401K And How Does It Work?
How much money do I need to save for my retirement? Is my retirement savings enough to lead a comfortable life? Most people envision leading a comfortable life after retirement. However, it requires meticulous planning, investing at an early age, and managing funds wisely. Most people tend to neglect retirement plans when they’re young. However, ... -
Are Defined-Benefit Plans Extinct?
Defined-benefit pension plans have been on a steady decline for the last couple of decades, while defined-contribution plans, such as 401(k) plans, have increased dramatically. In fact, defined benefit plans have declined from 148,096 plans in 1980 to 56,045 in 1998 (the last year data is available), while participation in defined-contribution plans has tripled during ... -
Long-Term Impact of Taxes on Your Financial Planning
Most people consider investment returns as a deciding factor while picking out an investment. However, the returns are not entirely yours always. Depending on the type of investment you choose, you could end up paying a significant amount of taxes. This is why it is crucial to keep in mind the repercussions of taxes on ... -
What Are Good Tax Strategies for Retirement Income – Tips and Guide
Taxes affect your income while you are working, as well as after you retire. According to a recent survey of nearly 130,000 American consumers, an average American pays nearly $10,500 in income taxes annually, which is nearly 14% of an American household budget. It is prudent to build-up a strong corpus for your retired years by investing ... -
10 REASONS WHY IT IS IMPORTANT TO CONDUCT A MID-YEAR FINANCIAL CHECKUP
As the year progresses, it’s easy to get caught up in your daily routine and overlook the status of your finances. While it may be common to review your finances at the beginning and end of the year, not everyone might make it a point to check the status of their finances and investments halfway ... -
5 Reasons Why Trusts Are Not Just For The Rich
A popular notion, that is often misunderstood, is that trusts are only for the rich. The reality is that a trust is helpful to people of all economic backgrounds. A trust is a legal arrangement that allows a person (the grantor) to transfer their assets, including cash, investments, properties, etc. to a private fund. This ... -
Soup to Nuts Guide to Creating a Foolproof Will
Most people are inclined not to think about their mortality. Hence, they do not consider estate planning, especially writing a will, as an imperative task. Moreover, writing a will is often regarded as complicated, irrelevant, and most of all ‘a thing of the rich’. As per a 2020 Estate Planning and Wills survey conducted by ... -
Impact Of COVID-19 On Schools And 529 Plans
The COVID-19 crisis has changed the entire social system and functioning. Schools, in this regard, have been the worst hit with no certainty on when they can resume operations. While educational institutions remain closed, many may fear that they might not be able to survive the pandemic due to lack of funds. In such times, ...