Think You Have What It Takes to Be the Retirement Planning Guide?
What sort of information do we want the new Guide to provide?
Well, we're looking for someone who can explain to financial beginners (primarily in the US) the basics on how each of the various retirement plans work, how to invest, how much to invest, how much is necessary during retirement, etc. We're also looking for someone who can speak to the self-employed and small-business owners in the audience who are interested in information on selecting the best retirement plan for themselves or their employees.
Our ideal candidate:
- A retirement planner or financial advisor who specializes in helping individuals plan for retirement
- An academic with a specialty in retirement investments
- A journalist or author who has extensively covered retirement investing and retirement planning. This person must have a specific knowledge of the tax and investing aspects of retirement planning, or be able to report it via financial experts.
Your 401k Plan - 16 Things You Must Know
Do you know what you should about your 401k plan? If you can answer these 16 questions, you are well above the average. Most workers don't have a clue when it comes to their retirement plan. Look over these questions and if you don't have the answers, make sure you get them.
Most plan participants sign up for their 401k plan, choose their investment options, and then forget about their plan. This might be OK but at some point, it might be a good idea to know some of the facts about your plan. The better educated you are on how your plan is set up and works, the better you will be able to make wise decisions regarding your plan.
To get the answers to these and any other questions you might have about your 401k plan, contact your HR department or plan administrator. Take advantage of any meetings your company might provide to discuss your 401k plan and look closely at your statement to be sure there are no mistakes.
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Preventing Investment Fraud
When the stock market is volatile it is a prime time for investment fraud. Con artists lurk everywhere trying to get rich from unsuspecting investors who are looking for ways to recoup their lost savings. They pitch their scams on ways to beat the system and get high returns with virtually no risk, making those who choose to listen believers of their 'too good to be true' claims.
Those who have lost their retirement savings or who are trying to build a nest egg could fall victim to these scams unless they use common sense and extreme caution. To prevent yourself from becoming a victim, ask lots of questions and be sure of what you are getting before you turn over your money to anyone.
There are several resources to help spot fraudulant practices. The National Consumers League has a list of things you should be aware of before you get caught in an investment scam. They also have information on how to avoid getting ripped off by Internet fraud and telemarketing fraud. If someone offers you an investment deal, take the time to check it out. According to the National Consumers League, you can start with your state securities regulator. You can also go online and look for information at the Federal Securities and Exchange Commission, The National American Securities Administrators Association, or the National Futures Association.
To report telemarketing or Internet scams to NCL's Fraud Center via their online report form: https://secure.nclforms.org/nficweb/nfic.htm.
UPDATE--The NCL no longer operates a fraud hot line.
You Don’t Get Do Overs at Retirement
You’re playing a game and all at once someone shouts “Do over” and everyone starts the game over. You get “do overs” in quite a few things in life but retirement isn’t one of them. Whatever decisions you make now you will have to live with. Think about your retirement and what you might want to be doing when you reach 55, 60, or older. Do you want to be scratching out a living or do you want to be enjoying life? What you do right now could dictate your future retirement.
Take some time to consider what you want from your later life and start now to taking action so you won't need to wonder what might have been if you had planned differently or started planning sooner.
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4 Roth IRA Reminders
Its almost tax time again and many are getting ready to open or contribute to an IRA. You have until the deadline for filing your federal income tax return to open or contribute to an IRA for 2007. If you have or plan to open a Roth IRA, there are some things you need to remember before the filing deadline for your federal income tax. Here are 4 important reminders you need to be aware of.
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Roth IRA
Traditiional IRA
Traditional IRA vs Roth IRA
IRA Contribution Limits for 2007 and 2008
Nolo Press Quicken WillMaker Plus
When creating an estate plan or will, there are several things you need to know. This software can help you understand the process and answer many questions prior to talking with your legal counsel. Quicken WillMaker Plus gives you lots of estate planning essentials to help you quickly create the documents you need.
Using Quicken WillMaker Plus for creating your legal documents is as easy as being interviewed. The program helps you complete your legal forms by asking questions and providing information to help you make informed choices. This is not a replacement for a lawyer, but the documents you create can be legally binding. I recommend using this software to create documents then discuss your choices with your attorney.
Along with the estate planning forms and personal finance documents, Quicken WillMaker Plus includes other documents such as child care agreements, child care instructions, elder care agreements, and pet care agreements.
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Social Security to send corrected tax form
This year, due to a programming error, the Social Security Administration sent SSA-1099 forms to several beneficiaries with incorrect income amounts. According to the Social Security Administration, the corrected forms were mailed on January 25. For more information, go to the Social Security Administration's website.
If you receive a SSA-1099, check the income amount against your records to be sure your tax form is correct. If you are in doubt, contact your local Social Security Administration office. The Chicago Daily Herald reports what fields on the form contain the errors and how to recognize the corrected notice when you receive it.
Defined Benefit and Contribution Pension Plans
A defined benefit retirement or pension plan is becoming more and more obsolete in favor of defined contribution plans. There are, however, several companies that still offer these plans to their employees. If your company offers a defined benefit pension plan, you need to understand what a defined benefit plan is.
More and more companies are shifting to defined contribution retirement plans such as 401(k)s and other plans where the employee decides how much to contribute. If your company offers a defined contribution plan, you are responsible for choosing your investments and your retirement income will depend on how well your plan performs. If your company offers a defined contribution plan it's a good idea to understand exactly what it is.
Do you know the differences, advantages, and disadvantages of defined benefit and defined contribution pension plans?
Social Security Fairness Act
On January 4, 2007, H.R.82: Social Security Fairness Act of 2007, was introduced to the House of Representatives. On January 9, 2007, S. 206: Social Security Fairness Act of 2007 was introduced to the Senate. The introduction of this bill is the first step in the legislative process to amend Title II of the Social Security Act to repeal the Windfall Elimination Provision and the Government Pension Offset. After being introduced, bills go to committees who deliberate, investigate, and revise them before the general debate so it could be some time before any decision is made on whether or not to ammend Title II of the Social Security Act.
On January 16, 2008 at a hearing before the House Ways and Means Committee, testimony was heard from David A. Rust, Acting Deputy Commissioner for Disability and Income Security Programs. His testimony can be read on the Social Security web site
If the Windfall Elimination Provision and Government Pension Offset laws are repealed, it will mean certain workers will not lose their Social Security benefits because they have a pension plan. According to The Signal, a Santa Clarita, CA newspaper, Rep. Howard "Buck" McKeon aims to defend public service employees from pension cuts. The newspaper goes on to say: "Currently, these laws reduce Social Security benefits for workers who also have pension benefits from employment not covered by Social Security, such as state pension.”
A press release on January 15, 2008 by Federally Employed Women stated support to repeal "both of these unfair provisions". FEW is also submitting written testimony to the Senate sub-committes.
Whether or not a full repeal is enacted remains to be seen.