A bit of a detour today to discuss small business 401(k) plans. Wealth45 generally focuses on employees of large technology companies. But thought a dive into the world of small business might be of interest. When it comes to 401(k) plans, the playing field shifts between small businesses and tech giants. Smaller companies, limited by resources, often offer simpler plans with fewer options and potentially higher fees. Think of it as a streamlined approach. NAVIGATING THE 401(K) QUESTIONS MAZE: YOUR COMPLETE GUIDE Big tech, on the other hand, wields the power of scale. They boast wider investme ..read more

Navigating the world of 401(k) questions can be a complex yet crucial aspect of financial planning. Employees often have various questions about these retirement accounts, and Wealth45.com is here to provide answers. Long-term retirement investments are vital financial resources that support you throughout your life. What is a 401(k) plan, and why is it called that? A 401(k) plan is a tax-advantaged retirement savings account named after the section of the Internal Revenue Code that governs it. Employees contribute a portion of their pre-tax salary, which is invested in a variety of funds. The ..read more

Cisco Systems, a networking technology leader boasting about 85,000 employees, offers a robust 401(k) retirement savings plan. This plan empowers Cisco employees to contribute a portion of their income towards a secure future, but the crucial question remains: what investments do these savvy individuals choose to fuel their retirement dreams? We will get to that, but first let’s go over why it is important.   What is a 401(k) Retirement Savings Plan? A 401(k) plan is a powerful retirement savings tool provided by employers in the United States. It empowers employees to set aside a portion ..read more

Finding a lost (or forgotten or old or misplaced) 401(k) account can be an unexpected windfall. According to Schwab: “Those born between 1957 and 1964 held an average of 12.4 jobs before the age of 54, according to the Bureau of Labor Statistics. The more accounts you acquire, the more challenging it is to keep track of them all. Perhaps that’s why there are some 24 million forgotten 401(k)s holding assets in excess of $1.3 trillion. If left unattended for too long, old accounts can be converted to cash—and even transferred to the state as unclaimed property—forgoing their future growth potent ..read more

Bank of America, a financial powerhouse boasting over 260,000 employees, offers a robust 401(k) retirement savings plan. This plan empowers Bank of America employees to contribute a portion of their income towards a secure future, but the crucial question remains: what investments do these savvy individuals choose to fuel their retirement dreams? We will get to that, but first let’s go over why it is important.   What is a 401(k) Retirement Savings Plan? A 401(k) plan is a powerful retirement savings tool provided by employers in the United States. It empowers employees to set aside a por ..read more

How do your retirement plan savings stack up? Are you accumulating retirement assets faster than your peers? Every three years I look forward to the latest Federal Reserve Board’s Survey of Consumer Finances (SCF) to remind us how wealth is distributed in the United States. Also see the other postings in our Financial Voyeurism series: Part 1 – Exploring Household Income Part 2- Net Worth by Age Part 3 – Household Net Worth Part 4 – Net Worth Growth Retirement Plan Savings Today we look at the average value of people’s tax-advantaged retirement accounts (IRA, 401(k), thrift savings ..read more

IBM 401(k) plan changes coming in 2024. The technological behemoth recently announced a significant change to its employee retirement benefits that has sent ripples through its workforce. Effective January 1, 2024, the company plans to bid farewell to its longstanding 5% matching contributions and 1% automatic contributions to employees’ 401(k) accounts. Instead, IBM will usher in a new era of retirement benefits with an automatic 5% contribution into a “Retirement Benefit Account” (RBA) for all employees. The company touts this shift as a means to diversify retirement portfolios and enhance f ..read more

How do Wells Fargo employees approach 401k retirement investing? Wells Fargo offers a 401(k)-retirement savings plan for its 300,000+ plan participants. Accordingly, these Wells Fargo employees can choose to contribute a portion of their income to the plan. But which investments do Wells Fargo employees pick as retirement investments? We will get to that, but first let’s go over why it is important.   What is a 401(k) Retirement Savings Plan? A 401(k) plan is a powerful retirement savings tool provided by employers in the United States. It empowers employees to set aside a portion of thei ..read more

401(k) plans have allowed annuities for several decades, but recent regulatory changes have made buying an annuity in a 401(k) a hot topic. Annuitizing your 401(k) account can create a more pension-like retirement plan with fixed monthly payments. Obviously, this type of “guaranteed” monthly income is highly desirable for some people. But please, consider the fees and risks associated with annuities before you purchase one. Plus, holding an annuity inside a tax-advantaged retirement account—like a 401K)—might not be the best alternative. Tax deferred growth is a big advantage of buying an annu ..read more

How do Walmart employees approach 401k investing? Walmart offers a 401(k)-retirement savings plan for its 1+ million employees. Employees can choose to contribute a portion of their income to the plan. But which investments do Walmart employees pick as retirement investments?   What is a 401(k) Retirement Savings Plan A 401(k) plan is a retirement savings plan offered by employers in the United States. It allows employees to save a portion of their salary before taxes are applied, meaning they pay less in taxes upfront. The money is then invested in various options within the plan, such a ..read more