If you took a look at your 401(k) at the depth of the most devastating financial downturn since the Great Depression, you might have been quite depressed to discover how much value your investments lost as a result of the stock market’s rapid decline. However, you may be surprised to learn that the average 401(k) account is up 7 percent in value from two years ago.
This is because the stock market has rebounded very smoothly, with the Dow Jones industrial average rising above 10,000 recently. If you have a healthy mix of stocks and bonds and you continue to make …read more

The IRS has stated that the maximum contribution limits to your 401(k) and other retirement plans will not change from their current levels in 2010. According to a statement released by the IRS yesterday, the maximum contribution rate will stay at $16,500 instead of being lowered, as many had predicted.
A lower contribution limit might have sent the wrong signal to many Americans that already do not invest enough money for retirement. Whether or not the IRS wanted to change limits, though, it stated that procedures in the Social Security Act for adjusting the limits do not allow it to change …read more

I’ve been sick this past week, and I really needed a laugh. So I thoroughly enjoyed seeing this ETrade commercial on ESPN. The commercial, of course, isn’t just about golf. It makes an important point about personal finances and retirement planning. You have to take charge. Or at least you have to know what is going on with your finances. It is vital that you understand how your finances are doing, and that you make an effort direct them with a plan.
In the case of a 401k, it is important that you check the investments in it to make sure …read more

Avoid making these major 401k mistakes that can ruin your retirement plan.

For years, individuals planning for retirement simply relied on do-it-yourself 401(k) plans as their way to build money for the future. However, after the recent stock market struggles and global economic crises, many individuals started to second-guess how they are saving for retirement. This is especially true for those individuals who saw thousands of dollars go down the drain when the stock market went south.
If you are one of those individuals, you should know of the alternatives. For example, Financial Engines is a company that offers independent investment advice. Their customized plans can include investments, savings and retirement.
Jeff Maggioncalda, Financial …read more

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Start catching up now for a successful retirement.

Many people are so concerned about their finances right now that they are considering raiding their retirement accounts. Indeed, with the stock market down and concerns mounting about being able to cover expenses through this recession, I have been getting questions similar to this one:
Can I take an early withdrawal from my IRA?
Really, though, the question is: Should you take an early withdrawal?
In most cases, it is best to let your retirement account alone. This is because withdrawal means that taxable portions of your retirement account result in taxes at the regular rate (contributions made with after-tax dollars, however, are …read more

Wells Fargo announced on Monday that its subsidiary Wachovia Bank will purchase the 401(k) business from Texas-based Comerica Bank. They will acquire the defined contribution plan recordkeeping business this quarter.
This business provides recordkeeping to 250 retirement plans that have nearly 100,000 participants. The business manages approximately $3.4 billion in assets.
“This acquisition supports our goal of being a leading provider of retirement solutions in the U.S. market and shows our strong commitment to building an industry-leading retirement business,” said John Papadopulos, president of the retirement services group at Wells Fargo. “Comerica Bank customers already use our recordkeeping platform so this transaction …read more

Start a retirement account today.