This month’s employee memo is a simple reminder/payroll stuffer that highlights the benefits of participating in a retirement plan. April 2014 Employee Memo
- Pretax dollars
- Potential Employer match
- Investment opportunities
- Convenient way to save
This month’s employee memo is a simple reminder/payroll stuffer that highlights the benefits of participating in a retirement plan. April 2014 Employee Memo
“One of the core concepts of inter-market analysis is the idea that certain areas of the investable landscape lead or lag others, which allows one to exploit information which gradually diffuses to stocks, commodities, bonds, and currencies.
Not all areas of the market are predictive. Many focus on copper (JJC) under the idea that its relative behavior may be a tell on growth/inflation expectations. The collapse as of late, however, is not anywhere nearly as worrisome for equity investors as positioning into sector-deflation trades.” See Correction
You may be eligible for a valuable incentive, which could reduce your federal income tax liability, for contributing to your company’s 401(k). If you qualify, you may receive a Tax Saver’s Credit of up to $2,000 ($4,000 for married couples filing jointly) if you made eligible contributions to an employer sponsored retirement savings plan. The deduction is claimed in the form of a non-refundable tax credit, ranging from 10% to 50% of your annual contribution. See Employee Memo
“This past year has seen a firestorm of criticism casting 401(k)s as mostly terrible. Their performance is too poor, and the fees too high, with poor investment choices built into most of them. Typical plans are complicated to manage and difficult to administer. Most people remain invested at levels far below their retirement needs.” See There’s Nothing Wrong
What happened to stocks in January and early February is nothing new. It’s happened quite a few times in the past four years and eleven months. Ever since mark-to-market accounting was fixed in March/April 2009, these corrections have been short-lived and relatively mild. And once they were over the market went higher. It’s been a very strong bull market.
Nonetheless, few investors truly understand why things turned around so abruptly in 2009 and every time the stock market declines there is a mad rush to believe this time the sky really is falling. See First Trust
As your trusted retirement plan consultant we are always happy to make retirement planning less puzzling. But if you’re the type who still enjoys a puzzle now and then, see if you can spot the eight retirement-related terms in our Retirement Word Search! Retirement Plan Puzzle
“We’ve been looking for someone who was involved in actually writing section 401(k) of the U.S. tax code more than 35 years ago, read the e-mail to Richard Stanger. “Yes, that’s me,” he wrote back.
Stanger was a primary author of a little-noticed piece of a 1978 tax law. At the time, the 869-word insert was lost in the political heat of limits on tax-deductible three-martini lunches, lower capital gains rates and a bipartisan coalition that was rejecting President Jimmy Carter’s proposals. Today, 401(k) is likely the most recognizable number in the Internal Revenue Code.
As the first 401(k) generation ages — about 10,000 baby boomers turn 65 every day in the U.S. — questions multiply about the adequacy of their finances. Just last week, President Barack Obama proposed a new retirement plan for Americans who don’t have 401(k) plans at work as he warned that Social Security often isn’t enough to rely on.” See Thank or Blame
Putting your savings goals into perspective.
A little bit can go a long way. The tables below show how money invested in your retirement plan can grow over time. Although this example may not reflect your current salary, the lesson remains the same: A small increase can make a world of difference in retirement. A little now goes a long way
“It wasn’t hard to make money in 2013, just as long as you were invested in U.S. stocks. Nine of every 10 stocks in the S&P 500 Index ($INX) are set to end the year in positive territory.
Yet many other asset classes suffered. Just two in five U.S. bond funds broke even for investors. Emerging market equities still haven’t recovered from a rough summer, and almost anything associated with gold lost money. As the new year approaches, Bloomberg tallied the biggest winners and losers so far, from stocks and mutual funds to master-limited partnerships and IPOs.” See Best & Worst
“Tapering…please bring it on. We wanted it yesterday, or last month, or even years ago. We never thought QE helped the economy and certainly don’t think keeping it around is a good idea. It’s created uncertainty at an unprecedented level.
But, we aren’t holding our breath waiting for the Fed to change course. Despite better data on the economy, the Fed will take its sweet time, possibly waiting until March before slowing the pace of “quantitative easing,” the monthly purchase of $85 billion in long-term securities.” See Taper Talk