401(k) plans
Target-date funds — the most popular 401(k) plan investment — don’t work for everyone
Key Points Target-date funds, known as TDFs, are a one-stop shop for retirement savers. They are poised to capture about two-thirds of all 401(k) plan contributions by 2027, per one estimate. They are well-suited for hands-off investors who crave simplicity, but there may be drawbacks for others with more complex finances, advisors said. Source
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More than 90% of 401(k) plans now offer Roth contributions – but only 21% of workers take advantage
Key Points About 93% of 401(k) plans offer a Roth savings option to workers, up from 62% a decade ago, according to the Plan Sponsor Council of America. A law known as Secure 2.0 is expected to make Roth 401(k) accounts more prevalent. Choosing between Roth and pretax savings is essentially a tax bet. Source
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Why new retirees may need to rethink the 4% rule
Key Points The 4% withdrawal rule is a popular retirement strategy that helps investors withdraw money safely from their accounts, with low odds of running out of money later. Lower expectations for long-term stock, bond and cash returns means new retirees may need to proceed a bit more cautiously, according to Morningstar. There are ways […]
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You don’t need to be a ‘Silicon Valley entrepreneur’ to be rich, financial advisor says. Here’s how to retire a millionaire
Key Points Almost anyone can save $1 million for retirement, according to financial advisors. There have been thousands of new 401(k) plan and individual retirement account millionaires this year, according to Fidelity Investments. Starting early is key, advisors say. This lets investors harness the power of compound interest. Source
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More employers add 401(k) plan match for those paying student loans
Key Points More companies are choosing to offer a 401(k) plan match to workers who are paying off their student loans. A recent law, Secure 2.0, allowed employers to essentially treat student loan payments like a 401(k) contribution for the purposes of offering a match, starting in 2024. Large companies like Kraft, Workday, News Corp. […]
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Why 401(k) plans are the ‘final frontier’ for exchange-traded funds
ETF Strategist Why 401(k) plans are the ‘final frontier’ for exchange-traded funds Published Thu, Oct 17 202410:49 AM EDT Greg Iacurci@GregIacurci WATCH LIVE Source
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401(k) savers can access one of the ‘rare guarantees’ in investing, CFP says
Key Points A 401(k) match is often considered free money. Most employers offering a 401(k) plan make a matching contribution on workers’ savings. Workers may need to stay at the company for a certain number of years before the match is fully theirs, however. Source
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This is the ‘billion-dollar blind spot’ of 401(k)-to-IRA rollovers, Vanguard finds
Key Points Moving money from a workplace retirement plan like a 401(k) plan to an individual retirement account is common when switching jobs or retiring. Savers are often unaware their 401(k)-to-IRA rollovers sit in cash as a default. Holding excess cash is generally a mistake for long-term investors. Source
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401(k) auto-enrollment features don’t help savings as much as expected, study finds
Key Points 401(k) plan policies like auto-enrollment and auto-escalation have become popular. They aim to boost workers’ retirement savings. Pioneering researchers found that the policies may be less effective than they’d previously thought. However, the effects are still positive, they said. Source
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Is the U.S. inventory industry as well ‘concentrated’? Here’s what to know
Important Details The 10 premier U.S. businesses accounted for 14% of the S&P 500 stock index a 10 years in the past. Currently, they account for a lot more than a third. Tech euphoria has served drive up the “Spectacular 7” stocks: Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla. Some specialists fear that such […]
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