Graduation season is upon us. If you don’t have a gift for your grad yet, may we suggest something better than a gift card or cash?  It doesn’t matter if they are graduating high school or college – young adults need financial help. A recent report from the Pew Research Center claims, “Fewer than half of young adults ages 18 to 34 (45%) say they’re completely financially independent from their parents. […] 44% of young adults say they received financial help from their parents in the past year. The top two areas in which they got help were household expenses and their cell phone bill or ..read more

Saving for retirement is essential, and a 401(k) plan can be an effective way to have a comfortable retirement. Yet, according to a 2023 survey, 4 in 10 workers with a 401(k) don’t contribute.¹ If you are hesitant to set aside a bit or more of your paycheck for your retirement, consider these 5 perks of saving for retirement in a 401(k). #1 You May Be Able to Reduce Taxable Income Perhaps the biggest perk of saving for retirement in a 401(k) is that it helps reduce your taxable income. You get a tax break for every dollar that you invest into your 401(k) with pre-tax dollars.  For examp ..read more

No two people spend or save the same way. What works for you may not work for someone else.  But there are tried-and-true ways to save more and build wealth for retirement.  Use the following 3 personal money moves to guide your financial decisions in Q2, and your checking account, savings account, and retirement account may look quite different at the end of the year.  #1 Pay Yourself More According to Statista, the number one New Year’s resolution for 2024 was “to save more money,” with 59% of those polled listing it.¹  If saving more is one of your goals, the best way ..read more

Americans are taking early withdrawals from their 401(k)s at record rates “across different ages and income levels.”¹  According to Capitalize, “Half of Americans have made early withdrawals from retirement savings. […] These withdrawals will cost Americans $6.12 billion in penalties to the IRS in 2023.”² A separate report from Bank of America found “the number of 401(k) participants accessing their retirement savings early increased 27% since the beginning of this year.”³ In addition to simply needing extra money to cover current expenses or emergencies, people are taking early withdraw ..read more

The Roth 401(k) is gaining in popularity due to employers offering it inside their plans and also thanks to provisions in the Secure Act 2.0 that only pertain to the Roth option.  The question is, is it right for everyone?  Read on to see if the Roth 401(k) is the right choice for you.  How the Roth 401(k) Works The Roth 401(k) is a type of 401(k) that you fund just like a traditional 401(k).  The key difference is that you either get a tax break today with the traditional 401(k), or tax-free withdrawals in retirement with the Roth 401(k) since your contributions are made ..read more

The number of 401(k) millionaires has soared in recent months.   According to a Fidelity Q4 2023 Retirement Analysis report, “This quarter saw a 20% increase in 401(k) millionaires following Q3 2023. […] The number of millionaires in Q4 is also 11.5% higher than Q2 2023.”¹ In other words: 20% of 401(k) investors entered the 7-figure club between September and the end of December.  Fidelity’s report reveals that there were 422,000 retirement savers who are currently 401(k) millionaires.² Impressive. If you want to be a 401(k) millionaire, read on to see how it happened for more ..read more

There is a looming retirement crisis.  It’s not a possibility. It’s about to be a reality for many Americans. According to a survey by Clever, “Two-thirds of retired Americans say the U.S. is in a retirement crisis (66%). The average retiree owes $15,393 in non-mortgage debt, and 40% worry they will outlive their retirement savings.”¹ Those 66% have good reason to fear a retirement crisis. Consider this information from the National Council on Aging. “80% of households with older adults—or 47 million—are financially struggling today or are at risk of falling into economic insecurity as t ..read more

Choosing between paying off student loans and saving for retirement is a reality for many Americans. But that’s about to change. A provision in the Secure Act 2.0 permits employers to consider student loan payments as qualifying contributions toward retirement plans with the goal of enhancing retirement savings while paying off student loan debt. Keep reading to find out how it works, who is eligible, and if it’s the right option for you. The Student Loan Debt Crisis The Federal Reserve estimates student loans are costing more than $1.6 trillion for borrowers as of 2024.¹ Data shows it takes ..read more

We’ve been through a lot over the last couple of years, but 2024 is showing signs that things may be turning around. In 2024, we have had a really good market thus far. We hit new highs on the Nasdaq, the Dow Jones, and the S&P 500 – marking the end of the bear market and a full recovery. So where do we go from here? All Eyes on the Fed The market has struggled with the idea that the Fed has raised interest rates to a point that it could harm the economy. There has been a lot of back and forth in the market about whether the Fed is going to raise rates too high and send us into a recessi ..read more

Will your 401(k) savings last in retirement?  It’s a question on the minds of a lot of 401(k) investors. Despite that, most people underestimate how much money they will need in retirement. Experts tend to recommend saving 80% of your pre-retirement income. If you and your spouse bring in $120,000 annual income, you should save enough for a $96,000 annual income throughout your retirement years.  10 years of retirement at this annual income rate equals $960,000. This is why many people are drawn to the idea of saving $1 million in their 401(k)s.  The problem is that most Americ ..read more