Despite the coronavirus pandemic’s impact in 2020, most retirement plan participants did not make trades, loan use fell, and only a small minority took withdrawals. Loan use declined by more than 20% in 2020. Only 13% of participants had an outstanding loan in 2020, compared to 16% in 2015. Due to the CARES Act, participants were allowed to withdraw up to $100,000 from their retirement plan without incurring a penalty through December 30, 2020. Only 5.7% of those with the option made withdrawals through coronavirus related distributions (Source: Vanguard, June 2021).
In a recent study, account balances in defined-contribution plans increased by 30% in 2020. 56% of participants are men and have average and median account balances nearly 50% higher than women’s account balances (Source: Vanguard, June 2021). Approximately 45% of Financial Times Stock Exchange 100 index companies have some form of environmental, social, and governance measures within their executive pay (Source: London Business School, Centre for Corporate Governance, July 2021).
Quick math
Don’t have a calculator, but need a quick answer to a financial question? Here are three shortcuts: -How long will it take to double your money? Divide 72 by your annual investment return. If you are earning 8% annually on your investments, it takes nine years for...
Straighten Out Your Financial Accounts
It’s not uncommon to accumulate things over the years when you don’t take time to straighten them out periodically. This applies to our finances as well as our possessions. If you feel it’s time to straighten out your finances, consider these steps: -Make a...
Avoid These 401(k) and IRA Mistakes
When it comes to saving for retirement, many people take a set-it-and forget-it approach. But not paying attention to your 401(k) and IRA accounts could cause you to miss valuable savings opportunities. Avoid these seven mistakes: Not contributing enough to get your...
Assessing Your Risk Tolerance
While investors want the highest returns possible, returns compensate you for the risks you take — higher risks are generally rewarded with higher returns. Thus, you need to assess how much risk you are willing to take to obtain potentially higher returns. However,...
A Budget for College Students
Many students will first handle money without parental supervision during college. To help keep expenses down and avoid conflicts, you might want to develop a budget to guide your child’s spending. As you go through the process, consider the following: Develop a...
Traditional IRA vs Roth IRA
It is never a bad idea to begin planning for retirement, no matter what stage of life you are in. Today is when all those small decisions about retirement can start having a big impact on your future self. It is important to remember that it is never too soon to plan...
401K
A 401k is a retirement account that you can open with your employer for savings. The goal of this type of account is to continue to save over time to help support your future retirement. You may not know what all goes into a 401(k) plan. That doesn't mean you can’t...
What is a fiduciary? And what differentiates them? Why should you have one?
Fiduciaries are tasked with managing a client’s investments to make sure they're being used properly and wisely so that their clients' well-being comes first. They act in your interests when it comes to managing money or property on behalf of the two parties involved...
Tax Planning During Retirement
Retirement income typically comes from savings, an IRA, a 401(K) and Social Security benefits. However, enjoying truly rewarding golden years will prove much easier if you minimize your tax burden. Prudent tax strategies minimize the amount of money that is redirected to Uncle Sam, ensuring you keep as much of your hard-earned money as possible. Let’s take a look at some of the tax planning strategies that set the stage for a truly enjoyable retirement.
How to Prepare for a Financially Successful Life After Children
The beauty of being an empty nester is knowing your children are now fully independent and leading their own successful lives. And let’s not forget to mention all the financial opportunities that have opened up now that you’re not fiscally responsible for multiple...
