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Ret plans - info for employees


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[Official Guidance] Text of 2014 IRS Form 4972, Tax on Lump-Sum Distributions, with Instructions (PDF)
Applies to lump-sum distributions from qualified retirement plans of participants born before January 2, 1936. Form 4972 for prior years is also available on the IRS website. (Internal Revenue Service [IRS])
Roth vs. Regular 401(k): Doing the Math
"From the point of view of plan participants and plan sponsors, Roth math can be a little confusing. For some participants, Roth contributions will produce greater benefits (net of taxes) than regular contributions. For others, they produce smaller benefits. Which outcome applies often depends on the participant's marginal tax rate when the contribution is made and when it is distributed." (October Three Consulting)
Majority of Parents Provide Financial Support to Their Adult Children -- Less Available for Retirement Piggybank?
"A new LIMRA Secure Retirement Institute study finds that 6 in 10 American parents provide financial support to their adult children, which could undermine their retirement readiness.... 7 in 10 U.S. households with adult children have at least one adult child living at home. Nearly three quarters of households with adult children ages 18-22 have at least one adult child residing in their home." (LIMRA)
[Official Guidance] Table of PBGC Maximum Monthly Annuity Guarantees, Pension Benefits
"Your maximum guaranteed amount is based, in part, on your age on the plan termination date (or the date the sponsor entered bankruptcy, if applicable) or, if you were not in pay status on that date, the date you begin receiving benefits from PBGC. Your maximum guaranteed amount also will reflect the age of your designated beneficiary if your benefit provides payments to a survivor. The age reduction does not apply for certain disabled participants (see Guarantees for Disabled Participants). The tables show the maximum guarantee, by age, for a participant receiving a straight-life annuity (one with no survivor benefits) and for one who receives a joint and 50% survivor annuity." (Pension Benefit Guaranty Corporation [PBGC])
[Official Guidance] PBGC Announces Maximum Insurance Benefit Level for 2015
"The Pension Benefit Guaranty Corporation announced [on Monday, Oct. 25] that the annual maximum guaranteed benefit for a 65-year-old retiree in a single-employer plan has increased to $60,136 for 2015, up from $59,318 for 2014. The increase is not retroactive; payments to retirees whose plans terminated before 2015 will not change. The guarantee for multiemployer plans has not changed.... The limits ... represent the cap on what PBGC guarantees, not on what PBGC pays. In some cases, PBGC pays benefits above the guaranteed amount. Whether that happens depends on the retiree's age and how much money was in the plan when it terminated." (Pension Benefit Guaranty Corporation [PBGC])
Your Roth IRA Calculator May Be Lying to You
"How many people, after running such a calculation and determining it was advisable to opt for the traditional IRA, actually put aside the amount of money they would have used to pay the tax on the conversion and invest it in a similar manner? Would/do you? Each and every year?" (Slott Report)
Five Things to Tell 401(k) Participants About Volatile Markets
"Plan Sponsors and their investment advisors should help participants remain calm during these periods of intense market fluctuations by sharing the following: Don't stop contributing.... Don't make significant changes in your account.... There is always help.... Stick with your plan.... Volatile markets do not last forever." (Lawton Retirement Plan Consultants)
Relief Under FRCP Rule 60 Unavailable to Plaintiff Who Lost on Motion to Dismiss State Law Claim for Negligent Misrepresentation (PDF)
"Arguments that the court misapplied the law or misunderstood a party's position are properly brought under Rule 59(e), but do not justify relief under Rule 60(b) ... And a party may not use a Rule 60(b) motion to raise arguments that he could have raised earlier.... In essence, plaintiff contends that defendant is not a fiduciary and that the court improperly assumed or found that she was." [Lebahn v. Owens, No. 14-1001-CM (D. Kan. Oct. 10, 2014) (U.S District Court for the District of Kansas)
Financial Wellness Is Impossible to Achieve Without Plan Participation
"[E]mployers need to clearly communicate the true 'cost' of participation. Employees need to see their out-of-pocket costs expressed as dollar amounts, not just concepts.... Next, employers need to lay out the benefits of participation over time. The objective here is to try to expand the employee's concept of long term planning and tangibly demonstrate the accumulation of wealth over time." (Employee Fiduciary)
Retirement Planning: Think Outside the Pie Chart
"Other assets, such as human capital, real estate, and pensions (such as Social Security retirement benefits) often represent a significant portion of an individual's total wealth. These assets, however, are often ignored by practitioners when building portfolios, despite the fact that they share common risks with financial assets. In this article, [the authors] explore how incorporating human capital, housing wealth, and pensions into a portfolio optimization can help build more efficient portfolios for investors." (Morningstar)
If You Really Have to Touch Your Retirement Stash, Here's How to Do It Right
"Gone are the days when it was considered taboo, or even unusual, to consider touching one's 401(k) before retirement.... Here are five questions to ask yourself before deciding whether -- or how -- to start raiding your 401(k). [1] What's the tax hit on a 401(k) loan compared with a withdrawal? ... [2] If I choose a withdrawal, can I avoid some of the tax penalties? ... [3] Am I feeling solid in my job? ... [4] Will I mind my account in a slow lane for six months or more? ... [5] Do I have an IRA alternative?" (The Wall Street Journal; subscription may be required)
Considering a 401(k) Loan? Weigh Your Options Before Borrowing
"Over the past year alone, more than 27,000 investors took loans specifically for the purchase of a home. While it's a small percentage of Fidelity's overall 401(k) loan-taking population, it is a trend the company has seen increasing over the past five years. Today's average home loan is $23,500, far higher than the average general loan value of $9,100. It represents 25 percent of an average borrower's 401(k) pre-loan balance, versus 17 percent for a general loan." (Fidelity)
Are Women and Men Different When It Comes to Retirement Plan Savings?
"[W]omen demonstrate an inclination toward savings -- they are 10% more likely to enroll in their workplace saving plans than men. And once enrolled, women across all income levels save at rates anywhere from 6% to 12% higher than those of their male counterparts." (Vanguard)
After-Tax Money in Retirement Plans: Five Questions for Employees After IRS Notice 2014-54
"Aren't after-tax contributions the same as Roth contributions? ... Do all plans allow for after-tax contributions? ... Do the same contribution limits that apply to pre-tax and Roth salary deferrals also apply to after-tax contributions? ... Do the same distribution rules that apply to pre-tax and Roth salary deferrals apply to after-tax contributions? ... If I have after-tax funds in my employer plan, how does IRS Notice 2014-54 impact me?" (Slott Report)
Can You Contribute to a Roth 401(k) and Roth IRA in the Same Year?
"Maybe. Participation in an employer plan does not disqualify you from contributing to an IRA or a Roth IRA ... [T]he question is not whether or not you can make the [IRA] contribution, but whether or not you can deduct the contribution.... If you make a non-deductible contribution, be sure you file Form 8606 with your tax return to tell IRS that you have made an after-tax contribution. Otherwise, when you go to take the funds out, you will be taxed again." (Slott Report)
Four Ways Your 401(k) Participants Can Save More
"Many studies ... indicate that workers should save at least 12% to 15% of their income each year. It is likely that most of your 401(k) plan participants are not saving anything near this amount.... [Here] are four ideas on your 401(k) plan participants could save more: Make a budget ... Raise your 401(k) savings rate with each salary increase.... Collect the full company match.... Invest appropriately for your age and risk tolerance." (Lawton Retirement Plan Consultants)
More Americans Interested In Seeking Financial Advice
"[T]wo-thirds of Americans who have received financial advice feel optimistic about their finances, and 86 percent act on financial advice after they receive it. Sixty-two percent of respondents report changing their spending habits after receiving financial advice, and 46 percent increased the amount they contribute to their retirement." (TIAA-CREF)
Reviewing Retirement Plan Tablet Apps
"Tablet-optimized apps, although uncommon, are an effective and convenient way for participants to access their pertinent retirement account information and related educational content. Each of the three account-specific tablet apps [reviewed by the authors] provides participants with three key data points -- total plan balance, balances by investment held and rate of return -- and also supplement the retirement plan details with colorful charts and graphs that depict asset allocation breakdowns, balances over time and personal performance. Additionally, two of the apps also provide participants with a detailed transaction history." (Corporate Insight)
[Opinion] The Data You Need Isn't on Your Retirement Plan Statement
"At the bare minimum, at least three other pieces of information should be included on your statement. The first missing metric is the amount of risk being taken by each investment choice.... The second piece of missing information is the returns in both bull and bear markets.... And finally, a statement should show you what it costs to invest in each individual fund, and this information should be as prominent as the returns, not buried in the disclosures." (Indianapolis Star)
Managing Your Spending in Retirement -- It's Not Rocket Science
"This is not a 'set-and-forget' process. You need to periodically [revisit this process] to reflect investment gains and losses, changes in assumptions, deviations of actual spending from the budget or other changes.... Under [the author's] smoothing algorithm, you generally increase your budget by the increase in inflation over the previous year unless your budget falls outside a 10% corridor around the 'actuarial value' produced by the spreadsheet. Depending on actual results, your budget may increase or decrease from year to year." (Ken Steiner, FSA Retired)
Women Showing Greater Commitment to Retirement Savings
"[T]he average retirement savings balance for women was up 17 percent from a year ago and 71 percent from 2009. The gap between the average balance between women and men narrowed to 37.8 percent in the second quarter from 40.5 percent in 2010.... [T]he average salary deferral rate for women continues to trail men, 5.37 percent to 5.70 percent of compensation, respectively. However, the deferral rates for women have remained fairly steady since 2010 while the rates for men have declined." (MassMutual)
Five Items That Impact the Amount Your 401(k) Participants Need to Retire
"How much do your 401(k) plan participants need to accumulate in their accounts in order to retire without making significant lifestyle adjustments? Here are some estimates from the experts: 8 times final pay at age 67 -- Fidelity ... 11 times final pay at age 65 -- Aon Hewitt ... 18 times final pay -- EBRI ... 25 times final pay -- to ensure an annual withdrawal rate of 4%. With such a wide range of opinions, it can be hard for participants to know what to aim for." (Lawton Retirement Plan Consultants)
A 401(k) Rollover Checklist for Plan Participants
"[A]t a minimum, holding multiple retirement accounts here and there means that you have more holdings to monitor. And if the old 401(k) is subpar, you may actually hinder your returns by staying put.... [1] Check your account value.... [2] Determine whether to stay within the 401(k) confines.... [3] Assess the quality of your 401(k) options.... [4] Find the right IRA provider.... [5] Decide whether to convert your Traditional 401(k) assets to Roth.... [6] Execute.... [ 7] Determine what to invest in." (Morningstar)
Insurance Against Outliving Your Retirement Savings
"New federal tax rules, published in July, make it possible for individuals to buy so-called longevity annuities in their individual retirement accounts and 401(k) plans. Like a plain-vanilla immediate annuity, a longevity policy allows purchasers to convert a lump sum into a pension-like stream of income for life.... But these policies have downsides." (The Wall Street Journal; subscription may be required)
Retirement Readiness for ESOP Participants
"Company contributions to participants' ESOP accounts can be significant and are positioning many employees to retire ready.... In order for your participants to get an idea of their ESOP account might be worth, it would be helpful to first do some education on anticipated ESOP contributions and potential stock value growth so they enter reasonable assumptions into their calculation.... You could also consider sharing the average amount that has been paid to retirees." (The Principal Financial Group)
Pushed to Make Own Choices, Investors Turn to Advisors for Help with Retirement Planning (PDF)
14 pages. "Nearly three in four (72%) investors have saved at least $250,000 for retirement. Despite significant savings, investors lack deep knowledge regarding financial products. 62% of investors save through a broker or financial planner. Investors rely more on the recommendation of their advisors to select investments than any other factor. Nearly four in 10 investors own annuities." (Insured Retirement Institute [IRI])
Embracing Social Media and Mobile Technology in 401(k) Communications
"How important is it that plan sponsors factor social media and mobile into their participant communications strategies? ... Are there any common myths plan sponsors have about social media and mobile use? ... What are some steps or action items a sponsor should take to meet the challenge of this new world of communications? ... What are a few examples of 'meaningful and valuable' information? ... What role does the plan vendor play?" (401kHelpCenter.com)
Reasons to Hold Off on Your Employer's Pension Buyout Offer
"If you work for a company with a pension plan, don't be surprised if you get an offer soon for a lump sum buyout ... The price tag for these offers is especially attractive right now, from the plan sponsor's perspective. But workers might do better by holding out for a better deal, or by rejecting the buyout altogether.... A key factor is how healthy you think you are in relation to the rest of the population. If you think you'll beat the averages, a lifetime of pension income will always beat the lump sum." (Money)
Defined Contribution Plan Participants' Activities, First Quarter 2014 (PDF)
"In 2014:Q1, 1.3 percent of DC plan participants took withdrawals, the same share as in 2013:Q1.... Only 0.5 percent of DC plan participants took hardship withdrawals during 2014:Q1, compared with 0.4 percent during 2013:Q1.... Only 1.0 percent of DC plan participants stopped contributing in 2014:Q1, the same pace as in 2013:Q1.... At the end of March 2014, 17.7 percent of DC plan participants had loans outstanding, compared with 18.2 percent at year-end 2013, and 15.3 percent at year-end 2008." (Investment Company Institute [ICI])
How Much is a Proper Beneficiary Designation Worth?
"Aside from their primary residence, the largest asset on most peoples' balance sheet is represented by their retirement accounts.... How do you name a beneficiary? ... What happens if a beneficiary is not named? ... Who should I name as beneficiary? ... What options will my beneficiaries have when they inherit the funds? ... What happens if my beneficiary predeceases me? ... Should I name my trust as beneficiary?" (Cleary Gull)
To Claim or Not to Claim: When Should You Take Social Security?
"If you start at 62, you will receive 25 percent less per month than you would at your full retirement age of 66 (if you were born between 1943 and 1954). For those born later, the reduction grows gradually to 30 percent.... If you can wait until you're 70 to claim Social Security, your monthly payment will be 32 percent more." (U.S. News & World Report)
Unexpected Consequences of Early Retirement
"Even if you plan to retire at 45 ... you are still going to be working for two decades. And early retirees need to keep their living expenses lower and save significantly more of their paychecks than people planning to retire at a more traditional retirement age ... Working so hard could make you want to retire even sooner.... You might be afraid to quit.... It's scary to spend down your life savings.... There will be parts of work you will miss." (U.S. News & World Report)
[Opinion] Unconventional Wisdom on Retirement Preparedness
"There are at least three reasons why adequacy standards in the typical replacement rate study are too high: [1] Assumptions about the pattern of savings over workers' life cycles raise the standard for younger workers.... [2] The assumption that household expenses don't change when households transition from work to retirement raises the standard.... [3] The assumption that household expenses remain flat throughout retirement raises the standard.... The danger of accepting the conventional wisdom is two-fold. First, the notion of a widespread shortfall deflects attention from those groups actually at risk in retirement ... Second, it obscures the fact that the U.S. retirement system works well for the majority of households." (Investment Company Institute [ICI])
Smartphone Usage Up Among Retirement Plan Participants
"Smartphone usage among DC plan participants is up significantly from last year (71 percent), which PC/Mac usage has remained basically unchanged (79 percent). Tablet or e-reader usage is trending upward from 57 percent in 2013." (Spectrem Group)
The Required Minimum Distribution Rules Do Not Work Well with Longevity Annuities
"[Actuary Steve Vernon] has his hypothetical 65-year-old woman buy a Qualified Longevity Annuity Contract (QLAC), work half-time in retirement until age 70, defer Social Security commencement until age 70 and use some of her accumulated savings from age 65 until she commences Social Security to supplement her employment income until then.... But then Steve inexplicably has her run off the train tracks on her smart retirement train ride by using the RMD rules to determine her annual withdrawals from her accumulated savings. The RMD rules just don't coordinate well with her decision to buy the QLAC." (Ken Steiner, FSA Retired)
Three Things to Check on a Beneficiary Form -- Besides the Beneficiaries
"[1] Does the beneficiary form work on a per stripes or per capita basis? ... [2] Are there any restrictions on whom you can name as a beneficiary? ... Some beneficiary forms ... may not allow a trust to be named as a beneficiary. Others may limit the number of primary or contingent beneficiaries you can name.... [3] Does the beneficiary form allow the stretch? ... [A] retirement account may require that any beneficiary -- designated or not -- empty an inherited account within 5 years." (The Slott Report)
Women, Low Earners Are Least Likely to Receive Full Retirement Savings Match from Employers (PDF)
"78 percent of Americans who contribute to an employer-sponsored retirement plan receive matching contributions from their employer, and 77 percent of those who have matching contributions save enough to receive the full employer match. However, only 72 percent of women contribute enough to receive the full employer match, compared with 82 percent of men, and only 64 percent of those earning less than $35,000 a year receive the full match. In addition, only 51 percent of those with less than $10,000 in assets receive the full match." (TIAA-CREF)
How Well Does Your Retirement Budget Process Handle Your Specific Situation and Objectives?
"If you are simply spending 4% of your accumulated savings at initial retirement increased with inflation each year, you are probably not adequately reflecting your specific situation or objectives." (Ken Steiner, FSA Retired)
Pogo Stick Retirement Planning for the Younger Generations
"Historically, retirement planning has been likened to a three-legged stool -- consisting of a corporate pension, Social Security and personal savings. Baby boomers saw the pension fade from existence, leaving them to balance on retirement planning stilts. For younger generations, ... it feels like it's all on us. We're left with only a retirement planning pogo stick.... Younger generations should simply expect that we'll be working indefinitely, and, facing that reality, we should labor tirelessly to seek and find the career that doesn't feel like work." (Forbes)
How Does Goal-Oriented Targeting Work?
"Think about it. If, instead of leading with that big ol' seven digit number like that commercial did, when you ask, 'Hey! What's My Number?' what if the answer is '3%,' as in, 'you only need to keep doing what you're doing and earn a minimum investment return of 3% on average every year.' You can do 3%, right? Heck, you can probably do a lot more." (Fiduciary News)
[Opinion] Thoughts on a Nobel Laureate's Proposal to Change How 401(k) Plans Operate
"[M]uch of [Prof. Robert] Merton's proposal can be accomplished without taking the giant step of scrapping existing funds.... There's nothing preventing 401(k) plan providers, with the permission of plan sponsors, from emphasizing income projections in their presentations to 401(k) owners. Yes, changes in asset prices must be published. There's no escaping at least some discussion of wealth. But there is much that can be done to spread the gospel on retirement income." (John Rekenthale, for Morningstar)
A Retirement Annuity Strategy That Offers Peace of Mind
"[P]eople are far more comfortable with a retirement strategy of spending their income than spending their assets.... [but] ... the simple fact is a worried retiree is not a happy retiree.... [Prof. Robert Merton's] point is that people are far more comfortable living within a known income stream than they are spending down assets for an unknown period of time.... The annuity income can begin immediately or it can be deferred until a later age. It can pay an income for life, for a period of years or for the greater of life and a guaranteed period of years." (Forbes)
From Red Hot Chili Peppers to Rush to the Rolling Stones: Three Generations Prepare for the Future (PDF)
"Each generation has a distinct outlook on its future, including retirement. This article describes three different generational groups, their trials and triumphs when it comes to preparing for their future, and how employers should respond. The key is to acknowledge these differences and address them through the three levers employers have to pull -- plan design, the support offered to employees and the ways retirement readiness is promoted." (Benefits Quarterly, published by the International Society of Certified Employee Benefit Specialists [ISCEBS])
Think Twice Before Using Dynamic Systematic Withdrawal Strategies
"[I]f your goal is to spend most of your accumulated assets by the end of the expected payout period, your spending budget should increase significantly when measured as a percentage of your accumulated savings as you age.... [A]pplication of the [Jonathan] Guyton decision rules (with spending cuts adopted when the withdrawal rate for a year increases by more than 20% over the initial withdrawal rate) will likely result in unwanted spending cuts[.]" (Kenneth A. Steiner, FSA Retired)
Healthy, Wealthy, and Wise: Retirement Planning Predicts Employee Health Improvements
"[E]xisting retirement-contribution patterns and future health improvements were highly correlated. Employees who saved for the future by contributing to a 401(k) showed improvements in their abnormal blood-test results and health behaviors approximately 27% more often than noncontributors did." (Olin Business School, Washington University in St. Louis, via Psychological Science)
Your Ideal Retirement Number Is Zero
"The ideal retirement number for liabilities is zero -- no mortgage, no credit card rollover, no unpaid loans. Doing so means that the retiree may be able to fund basic needs (food, utilities, taxes, automobile, insurance, clothing, etc.) solely from Social Security payments (and/or other guaranteed pensions).... [T]he lump-sum at retirement that is required to fund $1,100 of monthly spending, assuming a 4% withdrawal rate, is $320,000. For the millions of households that currently have almost no savings at all, retirement or otherwise, that number will look daunting. But a lot less daunting than what is currently being shown to them." (John Rekenthaler, for Morningstar)
Ten Incredibly Easy Things a 401(k) Fiduciary Can Do to Increase Deferral Rates
"Encourage employees to begin deferral the moment they are hired.... Stretch the matching formula so it continues to match at higher deferral rates.... Adopt auto-enrollment and auto-escalation policies as part of the plan.... Show participants how to reframe goals so they are much more closely aligned to real situations.... Use raw numbers bluntly.... Reduce withholding if participants are overpaying taxes.... Contribute all or most of year-end bonus money to the retirement plan.... Use silly props of lure participants with promises of candy.... Conduct one-on-one participant meetings.... Do something totally outrageous." (Fiduciary News)
What Is the Ideal Deferral Rate a 401(k) Fiduciary Should Ask Employees to Work Towards?
"There is a 'textbook' answer, and it's based on a number of fairly common assumptions. Jonathan Leidy, Principal at Portico Wealth Advisors ... says, 'The generally accepted replacement ratio in retirement is 80% ... If one assumes a 20% savings rate and both a constant salary and rate of return, e.g. 5%, an annual draw equal to an 80% replacement ratio should last about 35 years, which is at the longer end of most people's expected retirement window.'" (Fiduciary News)
Financial Education for Today's Workforce: 2014 Survey Results (PDF)
67 pages. Excerpt: "Nearly two in five respondents feel a responsibility to educate on pension and benefit options, encourage retirement savings and help participants/employees become financially literate managers of their money.... Half of organizations have experienced increased demand from participants for financial education in the past five years.... Among organizations offering financial education, the three most common topics are retirement plan benefits, investments and savings." (International Foundation of Employee Benefit Plans [IFEBP])
Gens X and Y Educators Need Education About Retirement
"Gens X and Y respondents regardless of whether they are educators or not prefer to get advice in person.... Nearly six in ten (58%) Gens X and Y educators reported they prefer to learn about financial planning issues at work, rather than on their own." (planadviser)
Delayed Retirement Reduces Health Care Costs
"[C]ouples who decide to retire at 62 -- before they are eligible for Medicare -- are likely to spend an extra $17,000 per year for a total of $271,000 during retirement ... On the other hand, couples who can postpone retirement just a few years to age 67 could save about $10,000 per year, reducing their estimated costs for health care in retirement to $200,000." (InvestmentNews)
Should You Split a Roth Conversion Into Multiple Accounts to Isolate Investments for Strategic Recharacterization?
"[O]ne significant caveat of Roth recharacterizations ... is that [they] must allocate gains/losses across the account on a pro-rata basis. As a result, one cannot simply 'cherry pick' the worst performing investments from a Roth conversion to subsequently recharacterize, and trying to do so can accidentally shift originally-Roth investments into a traditional IRA in the process! Fortunately, though, a special rule allows Roth recharacterizations to occur on a standalone basis, as long as the conversion is placed in a separate account in the first place." (Michael Kitces in Nerd's Eye View)
Annuity Ownership Boosts Retirement Confidence
"47 percent of retirees and pre-retirees who own annuities said annuity ownership contributed to their feeling of confidence.... The top three factors contributing to their confidence include: [1] Confident in my ability to manage finances, 62%; [2] Expect to live modestly in retirement, 59%; [3] Have saved enough for retirement 53%." (LIMRA)
The Digital Frontier: A Crucial Element in Engaging Participants
"Plan participants trust their employers, or plan sponsors, to provide them with the resources, tools and information necessary to plan their retirement readiness.... What can a plan sponsor do to leverage the Web and other digital technologies? [Sponsors should] work with their plan providers to better understand what is offered on providers' platforms and look for specific tools that can engage participants." (PLANSPONSOR)
Millennial Survey Results: Pick Up Your Savings Pace
"While 80 percent of millennials, ages 22-33, say the Great Recession taught them they have to save 'now' to survive economic problems down the road, only about half (55%) are actually saving for retirement." (The Wells Fargo Blog)
Go It Alone in Investing for Your Retirement? Get Slammed Twice
"One-third of retirees without an advisor said health care costs keep them from living the retirement they expected. This is compared with only 13 percent of retirees who use an advisor and said costs keep them from a retirement to which they'd aspired ... 33 percent of retirees who don't work with an advisor said their Social Security deposit was less or much less than they expected. By comparison, only 12 percent of retirees who work with an advisor said their Social Security deposit was less or much less than they expected." (InsuranceNewsNet.com)
Day Trading Your 401(k)? Six Reasons to Stop Now
"[1] You're not smarter than The Street.... [2] Your gut feelings are probably wrong.... [3] There may be penalties.... [4] Volatility can work against you too.... [5] This is not a market to time.... [6] It's real money." (The Huffington Post)
Millennials: Making Room for Retirement Savings
"[M]illennials can benefit the most by adopting a different view of retirement and financial planning while they're still young.... The steps they can take include beginning retirement saving early, understanding the plan, increasing deferrals over time, taking advantage of retirement savings estimate tools, appreciating the power of compound interest, resisting the temptation to tap retirement savings for other purposes (e.g., hardship distributions), and keeping plan beneficiary designations up to date." (Milliman)
Work in Retirement: Myths and Motivations (PDF)
"Over seven in 10 pre-retirees say they want to work in retirement. In the near future, it will be increasingly unusual for retirees not to work.... While some work primarily for the money, many others are motivated by important nonfinancial reasons... Nearly three out of five retirees launch into a new line of work, and working retirees are three times more likely than pre-retirees to be entrepreneurs." (Merrill Lynch)
What to Do With 'Orphaned' 401(k)s
"The quickest, easiest way to locate an orphaned account is to call the human resources department at your former employer. They should be able to help you or direct you to the plan provider. For more difficult circumstances -- for example, that the company you worked for no longer exists, or you left many years ago and human resources cannot tell you where your account is held -- it could be difficult to track down your orphaned account. In that case, a government agency could help: the [PBGC]. This organization is designed to help find lost defined-benefit plans, commonly known as pensions, but it may be able to help find a 401(k) or similar defined-contribution plan. The National Registry of Unclaimed Retirement Benefits is another option to consider." (U.S. News & World Report)

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