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The 7 Most Popular 401(k) Investments
Tweet Share on Facebook November 30, 2010 CommentEquity funds are clearly the most popular investment choice for 401(k) participants. But other investment selections vary largely as a function of age and job tenure. Among young and newly hired workers, target-date funds are the second most common investment choice. Investors on the verge of retirement are more likely to choose stable value funds. Here’s a look at the seven major types of investments that hold 96 percent of company 401(k) plan assets.
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401(k) Balances Still Below 2007 Peaks
Tweet Share on Facebook November 24, 2010 Comment (2)The typical 401(k) account now holds a considerably higher balance than it did in 2008. But many 401(k) balances still have not surpassed their 2007 peaks.
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Parents Increase Spending After Children Leave Home
Tweet Share on Facebook November 23, 2010 CommentOnce their children leave home and become financially independent, working parents have a unique opportunity to significantly boost their retirement savings. But most parents don’t use those extra funds to pad their nest egg. The typical empty nester increases their current consumption once they are no longer supporting children, a new study found.
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7 Signs Your Employer is Looting Your 401(k)
Tweet Share on Facebook November 22, 2010 CommentSometimes employers, service providers, or other people with authority over retirement accounts use 401(k) contributions for their own personal use or to cover business expenses. The Labor Department is stepping up its efforts to combat these and other types of 401(k) fraud. The Employee Benefits Security Administration closed 1,042 civil investigations of retirement plans in fiscal year 2009 and corrected 910 violations totaling over $17.9 million. There were also 33 criminal indictments of people who defrauded 401(k) investors last year. "Workers are often the first line of defense in identifying problems with their benefit programs early," says Phyllis Borzi, assistant secretary for EBSA. Here are some signs that fraudulent activity may be occurring within your 401(k) plan.
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Pension Insurance Agency Reports $23 Billion Deficit
Tweet Share on Facebook November 19, 2010 Comment (2)The federal agency that insures private sector pensions announced this week that its deficit increased to $23 billion for fiscal year 2010, up from $22 billion last year. The Pension Benefit Guaranty Corporation assumed responsibility for 172 new failed pension plans covering nearly 109,000 workers and retirees this year.
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Company Match Increases 401(k) Participation
Tweet Share on Facebook November 18, 2010 CommentEmployer contributions motivate workers to save for retirement in a 401(k) plan, according to a new study. Plan participation increases to 76 percent of all eligible employees when a 401(k) match is offered compared to 70 percent when no employer contribution is available, according to an analysis of 911 401(k) plans with 755,000 participants serviced by Schwab Retirement Plan Services.
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More Seniors Declaring Bankruptcy in Retirement
Tweet Share on Facebook November 17, 2010 Comment (4)Credit card debt and medical expenses are causing more older Americans to file for bankruptcy. The number of bankruptcy filers age 65 and older more than tripled from 2.1 percent of seniors in 1991 to 7 percent in 2007, according to a recent study of bankruptcy filings. While this is considerably less than the 12.4 percent of the general population that filed for bankruptcy in 2007, older Americans are the fastest growing demographic of bankruptcy filers.
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How to Double Your Money in 10 Years
Tweet Share on Facebook November 16, 2010 CommentFidelity Investments released data last week showing that it’s not too late for investors over age 55 to double their retirement savings. These committed investors grew their nest eggs using a very simple formula: They saved a significant portion of their salary each year.
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8 Ways Deficit Panel Aims to Change Social Security
Tweet Share on Facebook November 12, 2010 Comment (21)A government panel created by President Obama is recommending significant changes to the Social Security program. The National Commission on Fiscal Responsibility and Reform released a list of recommended cuts to the federal budget this week. Proposals that could impact retirement savers include raising the retirement age and reducing cost-of-living adjustments for Social Security recipients. Here is a look at the panel’s suggested changes to Social Security.
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6 Strategies for Funding Your 401(k)
Tweet Share on Facebook November 8, 2010 Comment (2)The tax break that workers get for saving for retirement in a 401(k) is a valuable reason to participate. But that’s not the primary reason most investors direct a portion of their paycheck into a retirement account. Getting a 401(k) match is the factor that motives the most retirement savers to utilize these tax-deferred accounts, according to a new ING Retirement Research Institute survey. Here’s a look at how workers choose how much to deposit in their 401(k) each year.
