Blog — 401(k) RSS

This is a story about a fictitious investment product. The investment does not exist. And while this story is based on the real world, there is no security called a Strategic High-Income Trust, at least not to my knowledge, and if there is actually such an investment, the following does not pertain to any specific...

Determining how much money you invest in stocks, bonds, and cash, as presented in my previous post, is an important early step in implementing your financial plan. It’s called your “asset allocation” and is based on your ability, need, and willingness to take financial risks. As your portfolio grows, and your income tax bill increases,...

Do you know where most people build up their biggest pile of wealth? Most people who work for a company or are otherwise employed and paid through wages often accumulate their greatest wealth in a company-sponsored retirement plan. There are a few lucky inheritors of wealth, although it’s been my observation that if you can’t...

A bond mutual fund is not the same thing as a bond. A bond represents the indebtedness of a company, government, or other entity that generally pays a fixed interest payment at intervals, often every six months. A bond has a specific maturity amount (face value) and a fixed maturity date when the principal is...

The company defined contribution plan is the workhorse for wealth-building Americans. Are you taking full advantage of this asset-building tool? The plan may have another name, might actually be a 403(b) plan or a Section 457 plan. I know, I know, this is all mumbo jumbo. The basics work like this. You can put a...