Results tagged “401K” from iVillage - House Calls
Choosing where to invest your retirement savings is confusing enough, but when your employer starts throwing out terms like 401(k) and 403(b) it can difficult to know where to put your money. CNBC personal finance expert Carmen Wong Ulrich explains the differences between a 401(K), a 403(b) and a Roth IRA.
Find more information on coping with the economy with our Bail Yourself Out resources.
Choosing where to invest your retirement savings is confusing enough, but when your employer starts throwing out terms like 401(k) and 403(b) it can difficult to know where to put your money. CNBC personal finance expert Carmen Wong Ulrich explains the differences between a 401(K), a 403(b) and a Roth IRA.
Find more information on coping with the economy with our Bail Yourself Out resources.
Withdrawing funds from a 401K can be incredibly expensive. Between taxes, fees and other penalties, you could wind up paying almost half of your retirement savings. Although the best financial move is to leave the funds in your 401K alone, advises CNBC personal finance expert Carmen Wong Ulrich, if you need this money to pay your bills as the result of a job loss or illness, there may be a way to avoid some of these charges. Ask your plan administrator if you're eligible for a hardship withdrawal. Watch as Carmen Wong Ulrich explains.
Find more information on coping with the economy with our Bail Yourself Out resources.
Watching your retirement saving drop as a result of falling stock prices can be frightening. As your nest egg dwindles, you may start to second guess your savings choices. Should you direct your money to an annuity instead of a 401K or Keogh plan? Annuities can be expensive and charge you hefty fees, advises CNBC personal finance expert Carmen Wong Ulrich. Before you reallocate your funds, check out Ulrich's advice for an easier way to repair your retirement investments.
Find more information on coping with the economy with our Bail Yourself Out resources.
Many companies offer a 401K to help you save your pre-tax dollars for retirement. But is this enough money for you to live comfortably after you retire or should you also be putting funds aside in a Roth IRA? The answer, says CNBC personal finance expert Carmen Wong Ulrich, depends on how much you will be taxed when you go to withdraw from these accounts. Watch as she explains the differences between the 401K and the Roth IRA and how to know which is the right one for you.
Find more information on coping with the economy with our Bail Yourself Out resources.
Borrowing against a 401K may seem like a good idea when you need a short term loan to cover next semester's tuition until your company's tuition reimbursement kicks in. However, Carmen Wong Ulrich explains why it's not the best move and how you can borrow smarter to pay for your education and keep your credit clean.
If you have a financial question you'd like Carmen to tackle, post it here in the comments or email us directly at ivcommunity@mail.ivillage.com
Watch Carmen Wong Ulrich's 'On The Money' Saturdays at 8PM ET on CNBC! Find more information on coping with the economy with our Bail Yourself Out resources.
A 401K is a great way to save for retirement, but many companies have stopped matching employee contributions or even discontinued their 401K plans entirely. If your employer is one of those companies, you may be wondering what you should do with the money in your existing 401K and where you should put any future contributions. Watch as Carmen Wong Ulrich explains your options.
If you have a financial question you'd like Carmen to tackle, post it here in the comments or email us directly at ivcommunity@mail.ivillage.com
Watch Carmen Wong Ulrich's 'On The Money' Saturdays at 8PM ET on CNBC! Find more information on coping with the economy with our Bail Yourself Out resources.
Wondering what to do with an IRA from an old job? Carmen Wong Ulrich explains your options.
If you have a financial question you'd like Carmen to tackle, post it here in the comments or email us directly at ivcommunity@mail.ivillage.com
Watch Carmen Wong Ulrich's 'On The Money' Weeknights at 10PM ET on CNBC! Find more information on coping with the economy with our Bail Yourself Out resources.
Taking a loan from your 401K may not seem like much of a risk, especially since the money doesn't seem to be growing right now. Carmen Wong Ulrich explains why it may not be the best answer.
If you have a financial question you'd like Carmen to tackle, post it here in the comments or email us directly at ivcommunity@mail.ivillage.com
Watch Carmen Wong Ulrich's 'On The Money' Weeknights at 10PM ET on CNBC! Find more information on coping with the economy with our Bail Yourself Out resources.
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For more advice watch Carmen Wong Ulrich on 'On The Money'.
Is Your Money Safe?
by Tracy Davidson
iVillage user thegymmom asks: Are we truly in trouble? Should we take our money out of the bank and hide it? Is it as scary and dire as the media is predicting? Or is it all hype, just another way to help the rich keep their money?
Are We In Trouble?
First, we truly are in trouble, for a number of reasons. Fortunately or unfortunately, our economy runs on credit. The credit markets are frozen, which basically means that banks have stopped lending money to each other and to major customers. And that trickles down. Small businesses depend on credit; some use it to make payroll. Consumers need credit to buy homes, cars and make purchases. We are all impacted by this crisis, so it needs to be solved.
Should We Take Our Money Out of the Bank?
But I really want to address your second question about taking your money out of the bank and hiding it. No, no, no! Here's why:
The money in your bank is safe! If your bank is FDIC insured, your money is insured. What does that mean? The FDIC insures accounts up to $100,000 per depositor, per insured bank. So if the bank fails, your money is still safe. If you have more than $100,000 in the bank, the bill that passed the senate Wednesday night would raise that insurance to $250,000.
What About Your 401(k)
You also shouldn't stop contributing to your 401(k). The markets are volatile right now and I know people are panicking, but don't. Your 401(k) money could be your greatest retirement asset, so it's important to keep it intact. The match of money provided by your company more than makes up for any hits you're taking right now in the market. It's free money!
When it comes to your 401(k), the best thing you can do is make sure your asset allocation is right for your financial plan. Do you have the right amount in stocks versus mutual funds and bonds? If you're not sure, ask your HR department to explain it.
Finally, whatever you do, don't take money out of your 401(k), because you'll be penalized for it. If you really need money, find another way to get it. If you think there is no other way, seek professional financial advice before you touch your 401(k).
Lessons Learned?
What can we, as individuals, learn from all of this? That it is dangerous to live on credit. We live in a world—or we did—where we could buy a house bigger than we could really afford, where we could buy a car that was nicer than we could afford, or where if we didn't save, we just said, "credit card." It's a dangerous way to live. Remember the days when, if we wanted something, we actually planned and saved until we had enough money? That's what we need to get back to.
Check out All That & More with Tracy Davidson.
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