Frequently Asked Questions About 401(K)’s

How much should I contribute to my 401(K)? Should I be making savings contributions outside of my 401(K)? Should I use my 401(K) to save for big purchases such as college or a first home? Is it okay to take a participant loan from my 401(K)? Can I contribute less if I make my investments […]

401(K) Series 6: Other Mutual Fund Fees – Part 3

It’s important to remember that you MUST pay for investment advice and investment management.  What you pay should be reasonable for the investment vehicle and the expected returns of the asset.  You should be fully informed of commissions paid to brokers or salespersons. Below are 3 common fees within mutual funds: Management Fees:  Include management […]

401(K) Series 5: ABC’s of Mutual Funds – Part 2

Mutual funds often have letters behind the end of the fund name.  These letters indicate the share class.  A single mutual fund will have several share classes, all of which have different fees.  When it comes to mutual funds, A’s and B’s are bad – they can indicate the presence of Load Fees. There are […]

401(K) Series 4: Mutual Funds – Part 1

401(K) plans typically offer an array of mutual funds for participants to choose from. These investments allow for growth from the dollars contributed to the plan. Mutual funds serve a vital role for smaller investors to gain exposure to a variety of investments. There are several mutual funds including target retirement, index, actively managed funds. […]

401(K) Series 3: Sticker Shock on the suggested 10% of salary?

Ever wonder why so many things are sold via monthly subscription?  Sometimes looking at the annual price tag for something can seem intimidating.  Advertisers figured out long ago that you’re much more likely to make a purchase if they tell you how you can afford it over a series of low monthly payments. Saving for […]

401(K) Series 2: Why Invest in a 401(K) Plan?

If someone offered you free money, would you refuse it?  You are refusing free money if your employer offers a 401(K) retirement plan with a company match and you aren’t participating.  Even if your employer doesn’t offer a match, you’re missing out on tax savings.  Contributions to traditional 401(K)’s reduce your Adjusted Gross Income, which […]