Answers and Guides from Top Financial Advisors

0 votes
Generally you should contribute to the maximum of the company match and contribute additional monies to self-directed qualified plans (either a ROTH or Traditional IRA, depending on your income level and potential tax savings). If you work with a CPA ...(more)
2 votes
Hi Tony, If you are currently contributing to the plan you may get statements sent to your residence. Also, this time of year some annual information, like QDIA and Summary Annual Reports, are sent to participants. Any of these will have some phone ...(more)
0 votes
Tunc Tanin Level 9
Elizabeth, . You can't really cash your 401K while you are in chapter 13 and have the cash from 401k only apply to your your mortgage. Trustee has to follow the bankruptcy rules. Since you already lost your job and assuming you are single you may be ...(more)
0 votes
In the most simple terms, you are paying $3200 in points in exchange for $800 less interest per year (although this savings will drop each year as the principle balance of your mortgage drops). I am assuming 5.50% vs. 5.00% on $160,000 ($200,000 less ...(more)
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At the risk of oversimplifying, here are the key differences: In a 401K you decide how much you will contribute and the amount that you accumulate is dependent on the investment returns you achieve as a result of the investment choices you make in the ...(more)
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Larry R Frank Sr Level 18
Yes, retirement plans can be confusing! A cash balance plan looks much like traditional pensions your grandparents got (today, these are generally in government and teacher jobs). But, the largest difference is that a cash balance plan may be transferred ...(more)
2 votes
Cash Balance plans and 401(k)'s are completely different animals. Without getting into all of the technical details, a Cash Balance Plan is much more like a traditional pension (defined BENEFIT plan). In exchange for regular monthly or annual contributions ...(more)
1 vote
John Essigman Level 14
Hi Ariana, Your question is not clear… How much would you save as compared to what? Are you saying that your mortgage is being offered at 7.5% and you can buy that down to 5.5%? Or are you saying you can buy it down from 5.5 to 5%? At what cost… ...(more)
1 vote
John Essigman Level 14
Hi Tony, I was not able to find Schnucks Markets on this web portal. They may be a subsidiary of a larger company. Some companies do not offer a retirement, profit sharing, or pension plan. Suggest you call your H/R Department or benefits administrator. Good ...(more)
1 vote
John Essigman Level 14
Hi Elizabeth. So sorry for your family troubles… Although losing your home is considered a financial hardship and may allow you to take a distribution from your 401(k), it will likely still be subject to the 10% penalty and will still be a taxable distribution. ...(more)
1 vote
Tunc Tanin Level 9
Just to add, you claimed you have a 70% chance of getting a job. What happens in the other 30% scenario. If you cant get a job or worse case you are in a car accident and you cant start your dream job for 2 years. If you are disabled your student loan ...(more)
1 vote
Thomas Larsen Level 4
Colin, The timing of your question is good as the end of the year approaches. Required Minimum Distributions (RMD) from tax-deferred retirement accounts catch some investors by surprise. The government forces these distributions because the money has ...(more)
2 votes
Keith: Like Jonathan, I wouldn't plug in an assumed 12% earnings rate, at least not for the next few years (we've had 5+ years of consistent growth from the 2009 bottom and the markets at all time highs). If we assume a more conservative 6% earnings rate, ...(more)
1 vote
Rich Winer Level 20
Keith, I agree with my colleagues. That said, the past performance of you investments does not guarantee future results. But on average, your returns over time should outpace the interest on your student loans and your growth with be compounded. Due ...(more)
3 votes
Pam Horack Level 20
HI Keith! I agree with Jonathan's answer above. Additionally, you would be subject to the 10% IRA early withdrawal penalty. You may use IRA funds for qualified college expenses. Repaying a college loan is not a qualified expense.
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