401 and retirement planning

Like most people, you probably have some questions about retirement plans, especially a 401(K) plan. If you have a business that allows you to open up a 401k plan then you should take full advantage of it. You will find to make sure that your company will contribute to the plan.

The way that it works is that you pay a small amount into your 401k and then your employer matches what you invest. You will have your part taken directly out of your paycheck. You will not have to worry about a thing, however, you will want to make sure that the deposits are made by monitoring your retirement account.

You can place any amount up to a certain percentage of your pay into your account and then your employer will match your investments. You will be able to allow the fund to grow without it being taxed, however, the minute you start withdraws you will be responsible to pay a tax on it. You usually will have to pay a penalty if you withdraw money from the account before you reach of age.

There are two types of 401k plans. You can have a defined benefit plan. This is where the employer promises to contribute a defined amount of money to retirees who meet certain criteria. With a defined contribution, plan you can define the contributions that an employer will make and it will not define the benefit of retirement.

You will find that a defined benefit plan will be linked to your years of service and your final salary rate. This is a great type because you can predict exactly what you will get monthly after retirement. However, you may also be able to get one big payment upon retirement instead of being paid monthly. As for defined contribution plans, you will find that you cannot predict it. When you leave the company, you will be given all the money upfront or in a pension.

Although companies are not legally allowed to touch your 401k money if they go bankrupt, if you place the fund back into the company they can. They can take all the stock money and run and that will leave you behind in the dirt. That is why you should get an advisor to ask what you should do. You are on the right track for wanting a plan for the future, but that plan needs to be solid.

401 and retirement planning

Here is a nice tip on planning your retirement.

Like most people, you probably have some questions about retirement plans, especially a 401(K) plan. If you have a business that allows you to open up a 401k plan then you should take full advantage of it. You will find to make sure that your company will contribute to the plan.

The way that it works is that you pay a small amount into your 401k and then your employer matches what you invest. You will have your part taken directly out of your paycheck. You will not have to worry about a thing, however, you will want to make sure that the deposits are made by monitoring your retirement account.

You can place any amount up to a certain percentage of your pay into your account and then your employer will match your investments. You will be able to allow the fund to grow without it being taxed, however, the minute you start withdraws you will be responsible to pay a tax on it. You usually will have to pay a penalty if you withdraw money from the account before you reach of age.

There are two types of 401k plans. You can have a defined benefit plan. This is where the employer promises to contribute a defined amount of money to retirees who meet certain criteria. With a defined contribution, plan you can define the contributions that an employer will make and it will not define the benefit of retirement.

You will find that a defined benefit plan will be linked to your years of service and your final salary rate. This is a great type because you can predict exactly what you will get monthly after retirement. However, you may also be able to get one big payment upon retirement instead of being paid monthly. As for defined contribution plans, you will find that you cannot predict it. When you leave the company, you will be given all the money upfront or in a pension.

Although companies are not legally allowed to touch your 401k money if they go bankrupt, if you place the fund back into the company they can. They can take all the stock money and run and that will leave you behind in the dirt. That is why you should get an advisor to ask what you should do. You are on the right track for wanting a plan for the future, but that plan needs to be solid.

Choosing your credit card

Here is a good article on credit cards; my favorite card is associated with a charity organization. Whenever I swipe, part of the money goest to that organization. Good way to contribute back to society. Read on and your comments are welcome.

Reach into your wallet or purse, pull out a card, swipe, and you’re done. It is very easy to use a credit card. The problem lies in choosing a card – and it has nothing to do with the picture on the front! Choosing a credit card that works best for you is vital to your credit rating. If you choose incorrectly, you may find yourself in deep debt trouble. Here is some basic, yet extremely important, information that will help you make the right choice.
Your Money Handling Habits
Choosing a credit card that is perfect for one person may be a dismal failure for you because your habits are different. When it comes to choosing your credit card, you need to look very closely and honestly at your habits.
For instance, do you typically carry a balance or do you pay off the card at the end of each month? If you answered “yes” then you will need to shop for:
A low Annual Percentage Rate (APR). The APR the interest rate you will pay on any outstanding balances each month. The higher the rate, the more you will pay in interest charges.
A fixed-low rate. This means that they will guarantee that your rate will stay low. Oftentimes, a company will offer a low introductory rate to get you signed up and then increase the rates drastically in 3, 6, or 9 months. The problem with a guaranteed rate is that an annual fee often accompanies it. You will need to decide if the lower interest rate guarantee is worth the cost of the annual fee.
If you will be paying off your card at the end of each month, you will not have to worry as much about a low APR since you will not be using it. And with no need for a guarantee, you may be able to avoid yearly fees. However, you will want to be sure to get a card with a grace period.
Grace Period: Be careful to get a card that allows you to pay off your bill at the end of the month with no finance charges. Those that don’t offer the standard grace period begin charging you interest the moment you make a purchase.
Cash Advance Fees: Be aware that most cards charge interest, and sometimes at a higher rate, for cash advances and this charge begins with no grace period even if your card offers a grace period for purchases.
You also need to decide how reliable you will be when it comes to paying on time and keeping yourself under the card limit. If you are often late paying your bills or often do not know how much credit you have left, you will want to watch out for transaction fees and other charges. Many card companies charge a late fee and an over-the-limit fee. These can be substantial. Your best bet is to pay on time and keep under the limit, however, finding a card with lower charges is a good idea.
Here is another important question to consider when looking at your money handling habits: Do you use the card rarely, occasionally, regularly, or frequently? Those that use their cards for just about everything instead of using cash or checks will want to look for credit card protection. This way, if you lose your card or it is stolen, you will not be responsible for any purchases made.
Finally, consider the different benefit programs that cards are offering.
Do you travel? Then consider a card with frequent travel miles as a reward. Or perhaps one that offers traveler’s insurance.
Do you use your card for large purchases like electronics? You may want to consider credit card insurance that will replace your equipment for a specified period of time if it breaks down or gets stolen.
Are you saving to buy a new car? There are cards that offer new car rebates.
Do you have a favorite charity? Many cards now support specific charities, universities, and organizations by paying the entity a specific amount with each purchase you make.
What matters most is to find the features that fit your pattern of spending and paying. Don’t get fooled by the gimmicks or the advertisements. Know your spending habits, look at the small print, and choose the card that is best for you. With all the different cards available, you will be able to find the right fit for you.

About The Author

Wesley Atkins is the owner of http://www.credit-cards-advisor.com- which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and easy online credit card applications you will never choose the wrong credit card again.

Your Guide On Choosing a Credit Card To Suit You

by: Wes Atkins

Reach into your wallet or purse, pull out a card, swipe, and you’re done. It is very easy to use a credit card. The problem lies in choosing a card – and it has nothing to do with the picture on the front! Choosing a credit card that works best for you is vital to your credit rating. If you choose incorrectly, you may find yourself in deep debt trouble. Here is some basic, yet extremely important, information that will help you make the right choice.
Your Money Handling Habits
Choosing a credit card that is perfect for one person may be a dismal failure for you because your habits are different. When it comes to choosing your credit card, you need to look very closely and honestly at your habits.
For instance, do you typically carry a balance or do you pay off the card at the end of each month? If you answered “yes” then you will need to shop for:
A low Annual Percentage Rate (APR). The APR the interest rate you will pay on any outstanding balances each month. The higher the rate, the more you will pay in interest charges.
A fixed-low rate. This means that they will guarantee that your rate will stay low. Oftentimes, a company will offer a low introductory rate to get you signed up and then increase the rates drastically in 3, 6, or 9 months. The problem with a guaranteed rate is that an annual fee often accompanies it. You will need to decide if the lower interest rate guarantee is worth the cost of the annual fee.
If you will be paying off your card at the end of each month, you will not have to worry as much about a low APR since you will not be using it. And with no need for a guarantee, you may be able to avoid yearly fees. However, you will want to be sure to get a card with a grace period.
Grace Period: Be careful to get a card that allows you to pay off your bill at the end of the month with no finance charges. Those that don’t offer the standard grace period begin charging you interest the moment you make a purchase.
Cash Advance Fees: Be aware that most cards charge interest, and sometimes at a higher rate, for cash advances and this charge begins with no grace period even if your card offers a grace period for purchases.
You also need to decide how reliable you will be when it comes to paying on time and keeping yourself under the card limit. If you are often late paying your bills or often do not know how much credit you have left, you will want to watch out for transaction fees and other charges. Many card companies charge a late fee and an over-the-limit fee. These can be substantial. Your best bet is to pay on time and keep under the limit, however, finding a card with lower charges is a good idea.
Here is another important question to consider when looking at your money handling habits: Do you use the card rarely, occasionally, regularly, or frequently? Those that use their cards for just about everything instead of using cash or checks will want to look for credit card protection. This way, if you lose your card or it is stolen, you will not be responsible for any purchases made.
Finally, consider the different benefit programs that cards are offering.
Do you travel? Then consider a card with frequent travel miles as a reward. Or perhaps one that offers traveler’s insurance.
Do you use your card for large purchases like electronics? You may want to consider credit card insurance that will replace your equipment for a specified period of time if it breaks down or gets stolen.
Are you saving to buy a new car? There are cards that offer new car rebates.
Do you have a favorite charity? Many cards now support specific charities, universities, and organizations by paying the entity a specific amount with each purchase you make.
What matters most is to find the features that fit your pattern of spending and paying. Don’t get fooled by the gimmicks or the advertisements. Know your spending habits, look at the small print, and choose the card that is best for you. With all the different cards available, you will be able to find the right fit for you.

About The Author

Wesley Atkins is the owner of http://www.credit-cards-advisor.com- which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and easy online credit card applications you will never choose the wrong credit card again.

Your Top Goal for 2006

The new year is almost upon us. We need to start thinking about what we want to accomplish financially in 2006.
Take a snapshot of where you are with your personal finances. Did you manage to eliminate all of your debt this past year? or Did you at least, get rid of some of your debt? If you were unable to do so, how come?

The reason I ask you about your debt elimination is because it is the most important, the most critical component, of your financial picture. If you’re not out of debt then you’re sending money to a lender rather than to your investment accounts. If you want to build wealth, and you still have debt, than make it your top goal to get out of debt in 2006.

Here is what you will need to do:

1. Accumulate an emergency fund. As quickly as you can, save $1000 and put it in a money market account. Promise to use this money only in a real emergency. ” Starbucks is not an emergency.”
2. Cut up all your credit cards and DO NOT GET INTO ANY NEW DEBT. This separates the men from the boys. If you have the guts to do this step then you have assured yourself success in eliminating debt and accumulating long term wealth. It’s hard, but it can be done. I did and have never looked back.
3. Get a sheet of paper and at the top in bold capital letters write ” The Borrower is a Slave to the Lender”. Below that list all of your debt from lowest to highest. At this point everything other than your mortgage goes on this list. Plaster it on your refigerator door. You want to see it everyday and be reminded that you are bound by the shackles of your master (Lender).
4. Take control of your spending and eliminate the BS stuff. Those are the things you can do without until you are debt free. If you can’t find anything to get rid of, than you’re not looking hard enough. If you still can’t find something than get another job. Eliminating debt should be so important to you that you will do whatever it takes to get rid of it.
5. Start putting any extra money you have towards the smallest debt and pay the minimum on all the others. When the small one is paid up apply what you were paying on that one up to the next highest debt. Dave Ramsey calls it the “snowball effect”. In this scenario you are chasing the snowball, rather than the snowball chasing you (debt is the snowball chasing you).
6. Don’t give up. You will screw up a few times. You’ll spend money and then realize maybe you shouldn’t have. That’s OK, we all will make mistakes. Just don’t stray and don’t give up. Get right back on your plan and before you know it debt will be a thing of the past.

Here’s to a Healthy, Happy, and Most Prosperous New Year.

Regards

Saving Money by Managing It

Saving Money by Managing It Author: Chemain Evans states ” When it comes to managing finances, most people would probably receive an F. The truth is, many of us were never taught the basics of money, how it works, and how to handle it. Here are some tips to help get you on your way to better money management.” Read more…