Please, DON’T Buy Company Stock in Your 401(k)

May 22, 2012

A news item caught my eye today.  Yet again, employees are suing their own company (JP Morgan) for allowing them to buy company stock in their 401(k) plan while allegedly hiding known financial risks.  This lawsuit is just plain silly, a by-product of the litigious nation we live in.  Aside from the fact that their […]

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Why I’m Prioritizing a Roth IRA Over a 401(k)

March 27, 2012

Presented with the choice between maximizing contributions to either a 401(k) or a Roth IRA, many people opt for the 401(k). The prospect of “pre-tax” deductions from the paycheck is appealing since those contributions effectively reduce your tax bill each year. Additionally, the 401(k) deductions are totally on auto-drive. The money comes right out of […]

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6 Critical Financial Miscalculations I’ve Made – That You May Be Making as Well

November 6, 2011

You might think I’m a hypocrite for what I’m about to admit (since I blog about personal finance), but this is reality.  In the past, I’ve made some wildly erroneous assumptions about our future ranging from how much we’d be making and spending each year to how our investments would perform.  Many of these misconceptions […]

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Help a Reader: Pension Plan Frozen – What To Do with 3 Choices

November 2, 2011

I got a good question from a reader and wanted to share it with you.  Here it is; I’d be interested to hear your thoughts on how he might best handle this and then I’ll weigh in with my thoughts after hearing from some of you finance buffs.  While things like pension rules, a 401k […]

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Medical Advance May Extend Life to 150 Years – Crazy Financial Implications!

July 6, 2011

Today, most financial planning revolves around actuarial assumptions that you won’t live past your 80s or so.  90s if you’re real lucky.  Well, what kind of financial planning implications would there be for people that start living to be 150 or older?  Everything goes out the window!  Instead of having to save 15-20% of your […]

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Warning: Your Pension & Social Security Are Quoted in FUTURE Dollars – How to Convert to Present Value

June 5, 2011

I was playing around with our firm’s pension tool the other day after plopping in assumptions for retirement date, assumed future salary increases and other factors, the model would return what various pension options would pay me per month.  For instance, if I wanted my survivor (wife) to enjoy the same monthly income after my […]

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