My Retirement Blog
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Professional Investment Advice for your 401(k)
It’s been reported in Money on CNN Money that approximately 25% of employers with 401(k) plans are now offering professional investment advice for their employees for a fee of 0.4% to 1%. What they’ll do is take a look at all of your funds and help you select the right mix given your situation and…
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Rules on Claiming Dependents
The follow rules regarding dependents was accurate for the 2007-filing year, you should review any updated dollar limits as the IRS publishes them and, as always, consult with a tax professional before making any decisions. When it comes to dependents, the rules are fairly straightforward. It’s important for you to figure this out because it…
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Retirement Medical Savings Required: $376,000
$376,000 is the highest amount recommended by the Employee Benefit Research Institute in a report released yesterday. What the EBRI, which is a D.C.-based public policy group, recommends for a couple, with premiums not subsidized by their former employer, have approximately $376,000 if they are not willing to take on any risk (meaning they don’t…
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Average Retirement Savings by Age
Everyone knows that it’s important to save for the future and everyone has played with the fun little retirement calculators that tell you how much you need and by when. However, what most people don’t talk about is how well you’re doing versus everyone else in your age group. It’s not about competition, it’s about…
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Vanguard LifeStrategy Funds
Lifecycle, Lifestyle, Target Retirement… and now LifeStrategy. Are these all the same things? Are they different? Is it just branding at work? LifeStrategy is Vanguard’s trademarked name for a Lifestyle fund. If you recall the differences between a Lifestyle and a Lifecycle fund, a lifecycle fund is one that changes its asset allocation as time…
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Warning About Snowflaking into Roth IRAs
Snowflaking, or micropayments, is a clever idea but when it comes to paying off debt but when you are talking about contributing towards retirement, you have to keep several things in mind. First, the rules of a Roth IRA, which will be easiest to snowflake into, state that you are only permitted to contribute earned…
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Early Withdrawal IRA Rules for Senior Citizens
I had a reader Wallace send in this question: What is the law regarding premature IRA CD withdrawals by senior citizens without penalty? Wallace, The law regarding premature IRA withdrawals depends on the type of IRA you have. If you have a Roth IRA, you can withdraw your principal without penalty as long as it’s…
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Naming Beneficiaries on Retirement Plans
Every retirement plan you own has a spot for you to designate a beneficiary. It seems like a simple problem right? Just pick someone you trust and everything will be okay. Couples name their spouse, singles name their parents or their children, everyone can think of at least one person they’d want to leave their…
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