Cheat Sheet Q & A:
The Question: Starting a new 401k plan
We just received (a) memo below from the company.
RE: 401k Plan
We have signed the agreement (with a 401k provider). Under this plan, (the company) will match 100% of an employee’s 3% contribution and we will also match an additional 50% of an employee’s additional 2% contribution.
I assume we should start this immediately but they gave us a small set of funds from many investment types and I am not sure where to put the money with a retirement target of 15 years.
They have bonds… small, mid, large cap
Bottom line: I have three pieces of advice I’m comfortable offering you:
Regardless of what you choose to invest in you should always strive to take advantage of a company’s match. It’s in essence a raise or a bonus paid to you. Who wants to turn down a raise? From there I can’t adequately provide investment guidance to you (in part because I’m not a licensed advisor in
If you have a topic or question you’d like me to address email me: firstname.lastname@example.org
It’s more confusing than your health care plan & potentially more important too:
Bottom Line: Picking up where the Q & A question left off… Charles Schwab just completed a survey of adults with 401k plan options and found the following:
This certainly isn’t good news. 401k and 401k like accounts are the most important retirement tools available to us today. Because they are in our name it’s our money that can never be taken away from us if our company fails in the future or if budget cuts occur in Government. Here’s the key takeaway. Rather than feeling overwhelmed and not contributing to the plan – seek council. As indicated above 401k plans have plan administrators that should be able to walk you through all of the options, what they mean and how they fit into your financial planning. Some will even hire their own investment advisors that will also oversee their 401k plan allocations.
Unemployment actually rose in more than half of the country last month but
Bottom Line: All states and
Bottom Line: According the
New scam could force you into liking things through social media:
Bottom Line: Scams that allow people and/or businesses to buy “likes or friends” on Social Media sites a la Facebook are nothing new. People will set up a bunch of bogus accounts and allow people to buy fake likes from them. That’s been around for as long as Facebook. What’s new is a virus that’s causing real users to “like” things they really don’t.
There is a social media virus going around called Zeus. It’s a spin on the Facebook like scams. Once you’re infected with the Zeus virus (which appears to have originated through Instagram), you will automatically like things you never intended to like and will lack control over that function. If you’ve had this happen to you seek adequate virus removal.
Don't let retail sales disappoints scare you into thinking we're worse off than we are:
Bottom Line: Nearly all major retailers have now reported their most recent sales. Many negative news stories have been reported about retail sales and consumer spending. It’s enough to make you wonder if the economy is heading south again. Here’s the reality. Sales are exactly where we’d expect them to be with the economic growth that had been reported.
The 2nd quarter
If it’s all about value - this is the actual "smart car":
Bottom Line: I’ve been somewhat critical of the Smart Car because it really isn’t a smart purchase. With MPG ratings in the 30 MPG range it’s not close to being the most efficient and for $15k+ you can achieve a bigger and safer vehicle with similar fuel efficiency. With that in mind… If pure value is your desire we do have an actual smart car for you to choose. It’s the new 2014 Mitsubishi Mirage. It’s the epitome of no frills but it does deliver a non hybrid best 44 MPG. It’s a four seater with a hatch and it sports of price tag of only $13,790. If it’s all about pure value – the Mirage makes sense.
The op franchises to own in 2013:
Bottom Line: Entrepreneur.com has completed their top franchises to own report for 2013 and the top ten list likely will have some names that will surprise you. Own a franchise is ultimately about return on your investment. That means that the biggest names aren’t always going to be the best given the size of the required upfront investment. For the top ten click the link below or listen to the audio report.