Over 11,000 companies offer their employees some type of ESOP, which stands for Employee Stock Ownership Plan. Typically, an employer will offer the ESOP as all or part of the retirement plan for its workers as an incentive for company loyalty, higher productivity, and greater employee participation in the workplace – but many employees are not familiar with the ins and outs of how an ESOP operates. Continue reading “The ABCs of an ESOP”
There are questions in life where sometimes the best answer is “it depends” (how many times did we hear that when we were growing up?). This is one of those questions, but I do have some solid guidelines that can help you make a decision on this question.
First, take a hard look at the interest rates you’re currently paying on your debt as well as what you are getting on your savings accounts. In most cases Continue reading “Should I Pay Down My Debt or Save More for the Future?”
Think about it. We work for forty years of our lives starting from our early twenties to sometime in our sixties. Then we have to support ourselves for the rest of our lives. In other words, save for forty then spend for twenty, thirty or even forty years depending how your cards are dealt.
In my case, the longevity hand I was dealt isn’t the strongest. Continue reading “Retirement Preparedness: Save Forty Years then Spend Forty”
Some of your employees may have recently received a letter in the mail notifying them that they are considered an HCE – highly compensated employee. The good news is that being an HCE means a nice paycheck, since the employee would have made at least $110,000 in 2010. The bad news is that because of their HCE status, their ability to contribute to the company 401(k) may be limited. Continue reading “The Impact of Being an HCE”
Have you seen the news lately? The president has announced his support of an extension of the Bush-era tax cuts, but there are some other tax cuts in the fine print that may hurt your retirement. The proposed legislation includes a 2% reduction in Social Security taxes. Say what?!? Isn’t Social Security in enough trouble? According to the Congressional Budget Office, Social Security expenditures have EXCEEDED tax revenue for the first time ever this year. The fund itself is expected to run out of money by the year 2037. So what can you do in response to this potential derailment in your future Social Security benefits? Continue reading “4 Steps to Take Now so Tax Cuts Don’t Affect Your Retirement”
As you open your most recent 401k statement, take a few minutes to check out a few important features of your retirement plan. What is the employer match, if any? Many companies have either reduced or eliminated the match over the past few years. At the very least, you should be contributing up to the amount your company is willing to match. But, what if you don’t have a match at all? Should you contribute to an IRA instead?
Here are some points to consider in favor of re-directing your dollars towards an IRA: Continue reading “401(k) or IRA: Which Retirement Saving Choice Is Right for You?”
