Smart Retirement Savings

Retirement? Spouses Don't Think Alike

Sun, 13 May 2007 23:07:24 -0800

You would expect marrying couples in the 50s talk a lot about retirement, but apparently they don't. I have been starting to prepare my wife for the retirement since the 30s :-)

Social Security Tips and Traps

Sat, 12 May 2007 16:08:06 -0800

Social security withdrawal to me is still 30 years aways from me. I'll only pray if most of the tips and traps will still hold true. Nevertheless, Sue Stevens contributed a good article for those in need a few quick doses of Social Security education.

The Fastest Way To Blow Up Your IRA

Fri, 09 Mar 2007 09:14:16 -0800

Do you think the Real Estate IRAs fancy? A misstep and you can destroy all the tax savings you are entitled to in an Individual Retirement Account (IRA). Take this Fairmark Tax Tips to the heart and forget about mixing real estate investment with IRA.

New 401(k) Disclosure Rules May Be Coming

Mon, 05 Mar 2007 23:36:51 -0800

I'm all for more transaparency. Also, I feel we need to radically reform 401(k) and 529 Plans by allowing plan participants to invest in any stocks and mutual funds instead of the few blessed by the plan administrators you don't know in person and cannot influence.

Explainer: Who Owns Our National Debt?

Mon, 05 Mar 2007 04:03:47 -0800

It is quite refreshing to know that foreign governments only own a quarter of our $8.5 trillion national debt.

How To Manager Your Tax Bracket With IRA Withdrawal

Mon, 26 Feb 2007 23:18:37 -0800

What should you do in a year with low income? Withdraw more from your IRA account so the withdrawal is taxed at a lower rate. This WSJ article provided some excellent food for thought for long-term tax planning, and actually I'm planning on doing the very similar thing by timing my Roth IRA conversion. If I leave my current job, I'll start converting my 401(k) and traditional IRA accounts to Roth IRA accounts and pay my tax as a favorable rate.

More Money = Better Sex?

Fri, 09 Feb 2007 22:11:12 -0800

At first sight, this survey provides one more reason to become a multi-millionaire. But the average net worth of the survey respondents is a whopping $89 million, making this path toward sex quality almost irrelevant for ordinary Joes.

When Should You Get Rid of Financial Documents?

Wed, 07 Feb 2007 22:11:12 -0800

Here is a handy reference of when you can shred your financial documents. I'm not sure why one has to keep tax returns for 7 years, though. Isn't it said that IRS cannot bother you for returns that are three years old?

How To Survive On $12,000 A Year (And Still Save)

Mon, 05 Feb 2007 04:54:45 -0800

I do admire the author who intends to live on $12,000 a year. Our household probably cannot survive for four times the amount -- I know we have some fat that can be cut in our cost structure, but as long as we can grow the top line and still enjoy life ...

5 Biggest 401(k) Mistakes

Wed, 31 Jan 2007 04:54:54 -0800

This article is a must-read for those who are new to the 401(k) game -- any of the five mistakes can cost you dearly.

Money Market Account Yield Outlook for 2007

Tue, 09 Jan 2007 17:30:21 -0800

Since mid 2006, I have been content with the 5% annual return by parking my cash in high yield money market accounts. Will this savers' party end soon?

Online Banks Beef Up Security

Tue, 02 Jan 2007 01:16:44 -0800

WSJ reported that banks are required to follow new federal online-security guidelines by December 31 of 2007. No wonder I'm finding out new ways literally everyday that makes online logon harder. More recent examples: 1) Eloan online savings bank requires verification of a pre-determined image at the password screen. 2) Citibank credit card site is collecting security question now. 3) Treasury Direct requires you to click an on-screen keyboard to enter your password.

Roth IRA Income Limit To Rise in 2006

Sun, 26 Nov 2006 19:03:25 -0800

Roth IRA should be the retirement fund vehicle of choice (after company matching in 401(k)-like plans). Unfortunately, even with this round of increase in income limit, my family is still priced out of the market.

Rule 72(t) and How To Make Withdrawal from IRA Legally

Sat, 25 Nov 2006 14:50:35 -0800

If you don't know yet, IRS actually provides a leeway for you to use what's in your 401(k) or IRA before retirement without penalty. The trick is to do it right. Actually, it is always in my "grand plan" that after I semi-retire, I will tap into my retirement funds before 59 1/2 with considerable less tax payment.

The Hidden Fees in 401(k) Plans

Mon, 13 Nov 2006 11:38:20 -0800

Good reminder from USA Today that it is too easy to losea couple of points in invisible fees in a 401(k). The problem is, you cannot switch 401(k) plans as you switch 529 plans, and I bet hardly anyone will leave a company just because a mediocre 401(k) plan.

E-Loan's High Yield Savings Account Is Off A Good Start

Fri, 10 Nov 2006 03:31:45 -0800

Yes, at 5.50% APY, there is no wonder many interest-rate-sensitive folks (like me) are moving to E-Loan. On a related note, Eloan also silently reduced its CD rate from 5.75% for terms over 2 years to 5.35% to 5.45%. (Still, the 2-year CD at 5.60% is still a great buy.)

A Sneak Peek Into Citigroup's New 401(k) Plan

Fri, 03 Nov 2006 14:40:58 -0800

Woo, up to 8% of company contribution into 401(k) accounts -- this is probably the highest among major companies. And you can expect that there are many finance-smart folks in Citi.

An Ownership Society Still Takes Time

Wed, 01 Nov 2006 13:06:01 -0800

WSJ reviews the progress to get more people automatically signed up for defined contribution plans like 401(k). I generally favor the adoption of The Pension Protection Act of 2006, which will increase the awareness of retirement savings in the general public, and force more people to save for the rainy days. And, if there are more money flowing into the stock market, current players in the market should benefit too.

Savings Rates Are Getting Lower

Fri, 27 Oct 2006 04:29:06 -0800

WSJ predicts interest rates for savings account and money market accounts will creep down from this point on. I cannot agree with it more. The golden days are probably over, which makes it a wise move to lock in some high yield CDs for now.

Stable Value Fund May Not Be Safe

Sun, 22 Oct 2006 21:25:09 -0800

My company's 401(k) plan never includes a stable value fund, so I never got the chance to make a decision whether to invest in such funds. However, NY Times reminds us that stable value funds have their fair share of risks too. Some poorly run funds can go bankruptcy, and costing investors a fortune.

Cities With The Best And Worse Savings Mentality

Fri, 20 Oct 2006 20:20:40 -0800

American Express commissioned an interesting research to find out which cities have better savers. Is this a coincidence that residents in larger cities tend to be better savers?

Is IRA Contribution Always A Good Deal?

Sat, 14 Oct 2006 20:07:19 -0800

Jeff Schnepper at MSN Money argues that for people already in high tax brackets, contributing to retirement savings account may not be an automatic winner. Instead, by paying tax now and invest in after-tax accounts, one can count on a lesser tax hit on portfolio's capital appreciation. This is certainly contrary to all common knowledge of retirement savings, but it holds some truth too. Especially, if you are young and have a long investment time horizon, you'd better save in Roth IRA/401(k) or even after-tax accounts for long-term tax advantage.

ING Settled In Retirement Plan Disclosure Case

Tue, 10 Oct 2006 19:42:48 -0800

Spitzer is really good, and what's behind the curtains in Wall Street is really dark.

Medicare Is $32 TRILLION In the Red

Tue, 10 Oct 2006 14:30:04 -0800

It is alarming to know Medicare is even a bigger financial problem than social security. Who will pay for my healthcare in my golden years?

The Best Personal Finance Software: Quicken vs Microsoft Money

Sat, 07 Oct 2006 16:45:33 -0800

CNet's take on Quicken 2006 vs Microsoft Money 2006. I'm a diehard Microsoft Money user. Although I do have a long wish list for Money developments, I love the sophistication of Microsoft Money that allows me to manage my personal finance in granular ways.

401(k) Or Roth IRA?

Sat, 07 Oct 2006 16:45:33 -0800

While certainly there is no one-size-fit-all, when it comes to 401(k) vs Roth IRA question, the best advice is almost always to take advantage of the full employer match first (free money!), then to make full contribution to Roth IRA, before contributing to non-matched 401(k) limits.

Roth IRA Or Traditional IRA?

Sat, 07 Oct 2006 16:45:33 -0800

Yes, there is no one-size-fit-all in the decision between Roth IRA and Traditional IRA. Here are some principles you should follow when you judge both opportunities yourself.

Can I Fund An IRA For Non-Working Spouse? Use Spousal IRA.

Sat, 07 Oct 2006 16:45:33 -0800

Yes, you can contribute to the IRA of your non-working spouse. In fact, this effectively allows double retirement savings opportunities for one-breadearner families.

Why Do I Need A Roth IRA?

Sat, 07 Oct 2006 16:45:30 -0800

Roth IRA is almost a godsend that I highly recommend. Unfortunately I am not able to take advantage of it any more due to income limits.

401(k) Contribution Limits

Tue, 03 Oct 2006 21:11:50 -0800

2006 401(k) Contribution Limit: $15,000 Catch-Up Contribution Limit (only for those over 50 years old): $5,000 2005 401(k) Contribution Limit: $14,000 Catch-Up Contribution Limit (only for those over 50 years old): $4,000 2004 401(k) Contribution Limit: $13,000 Catch-Up Contribution Limit (only for those over 50 years old): $3,000]]>

High Income Workers Plan More, Or Vice Versa?

Tue, 03 Oct 2006 14:56:35 -0800

It is rather arguable whether it is because people who plan tend to end up well, or people who make more money tend to have more time or resource to proper financial planning.

Free Retirement Planning Advice

Sat, 30 Sep 2006 20:55:13 -0800

Good news: free retirement advice from some independent financial advisors.

Five Strategies to Maximize Your IRA

Wed, 20 Sep 2006 22:49:18 -0800

Here are five excellent tips from Morningstar on how to build a big IRA for your retirement.

Best Place To Retire

Thu, 14 Sep 2006 09:16:18 -0800

Money magazine named five towns to be the best place to retire in this country: Walla Walla, Wash. St. Simons Island, Ga. Prescott, Ariz. Holland, Mich. Williamsburg, Va.

Quicken vs. Microsoft Money

Wed, 13 Sep 2006 01:30:03 -0800

I prefer Microsoft Money and have been using the software since 1999. However, to me, both Quicken and MS Money are far from perfect tools. I look forward to more integration of online banking and stronger reporting capabilities. Kiplinger has a good review on both software's 2006 version, and I am glad Quicken recommends Microsoft Money, at least for financial newbies.

Suze Orman: Spend Today For A Better Retirement

Tue, 12 Sep 2006 02:06:28 -0800

This is probably among the worse tips from Suze Orman. Whether to pay off a mortgage should be a function of many other factors, especially whether you can earn more money to invest some extra cash compared to the rate you have on your mortgage. There is simply no one-size-fit-all.

How To Maximize Your IRA

Tue, 12 Sep 2006 01:03:39 -0800

If maximizing your IRA is important to you, you may want to learn these five important strategies from Sue Stevens.

401(k) Balance Is Rising (Fast)

Mon, 11 Sep 2006 23:36:11 -0800

Yes, using 401(k) to build your nest egg is a must-have for the middle class. However, I don't think the study is conclusive. How much of the growth is attributable to the continued salary deduction (vs. portfolio appreciation)?

What Is IRA?

Mon, 11 Sep 2006 05:56:19 -0800

IRA is widely used in retirement planning, and here are the IRA basics you should know.