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POPSSquidoo : Welcome to Squidoo
The 401(k) retirement plan is funded by employee contribution and a matching employer contribution.The major feature of the plan is that the contributions are taken from pre-taxed salary.The fund accumulates tax-free until it is withdrawn. Most businesses and tax-exempt organizations can create these retirement plans.The 401(k) takes its name from the IRC (Internal Revenue Code) of 1978.The operation of the 401(k) is administered by the EBSA (Employee Benefits Security Administration) of the Department of Labor.The 401(k) plan has a lot of advantages. First and foremost is that the employee can contribute pre-tax money that reduces the tax paid in each paycheck. Also, the company contribution and any growth in the fund is free of tax until withdrawn.The compounding of the fund during a 20 to 30 year period is quite amazing. The employee has a lot of control in the direction of the future contributions.When the company matches your contributions, it adds something extra on top of your o
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POPSSquidoo : Welcome to Squidoo
Retirement may be a long way off for you - or it might be right around the corner.No matter how near or far it is, you've absolutely got to start saving for it now.However, saving for retirement isn't what it used to be with the increase in cost of living and the instability of social security. You have to invest for your retirement, as opposed to saving for it!Let's start by taking a look at the retirement plan offered by your company. Once upon a time, these plans were quite sound.However, after the Enron upset and all that followed, people aren't as secure in their company retirement plans anymore. If you choose not to invest in your company's retirement plan, you do have other options.First, you can invest in stocks, bonds, mutual funds, certificates of deposit, and money market accounts. You do not have to state to anybody that the returns on these investments are to be used for retirement.Just simply let your money grow overtime, and when certain investments reach their maturity,
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Squidoo : Welcome to Squidoo
When people talk retirement planning they are generally referring to financial planning.How much is enough? That will depend on the lifestyle you are going to plan on having once retired.Some place a set amount into a retirement fund each week. Others make investments, and real estate can be a very real choice under the circumstances.One you retire, sell the house, and you have your money. Sounds easy doesn't it?Even a combination of savings and investments can be looked at if you don't want all your eggs in one basket. It does make more sense to have more than one avenue for growing retirement funds.The basic idea is to think about what age you might retire, and what you spend now to live a year. Naturally inflation will dictate that what you get for your money now won't be as much in twenty years.So try and be realistic without pushing the panic button. Research your options, you can get in a financial adviser or use the resources on the internet. You can find valuable information by