Blog

We have covered the first question for plan participants: How much? How much should you contribute, how much will keep you comfortable in retirement, how much can you afford today? If you decide what you can afford and that's your contribution, it's a perfectly reasonable approach. But once you have...

The first thing you do when signing up for your employer's 401(k) or 403(b) is decide how much to put in out of every paycheck. You don't need my advice for that, of course; it's a function of how much you can afford. But once you decide on the amount, on how much you're willing to save toward your...

So much has been written about the recent Facebook stock offering that I am reluctant to add to the stack, so I'll keep it short. After going public at $38/share last Friday and climbing briefly to $45, the stock has reversed, closing Tuesday at $31.11, for a loss of 18% from the offering price. Mos...

In most 401(k) and 403(b) plans, money market and short-term bond funds are among the most popular investment choices. That is especially true recently, when fear and panic among investors sent many scrambling for something more stable than the stock market. With the smoke cleared from last year's f...

Back when I started contributing to a 401(k), first class postage cost 20 cents. It was the year Apple introduced the Macintosh. Ronald Reagan was re-elected, and the LA Raiders won Super Bowl XVIII. Hair was big back then. The internet did not exist, and you could check the value of your account 4...

A methadone clinic is a medical facility that heroin or other opiate addicts go to break the cycle of addiction. I've never been to one but I've seen the Hollywood portrayal and it isn't something to aspire to. But if someone is to find themselves in such a situation the clinic is apparently a far s...

My version of the Rapunzel story has my very pregnant wife unable to bear the August heat and yearning for a little cool breeze. Fortunately our baby didn't get locked up in a tower by a witch. I borrowed from my 401(k) and installed air conditioning. Everyone needs a little cash from time to time -...

Well there certainly seems to be an awful lot of chatter about the pending IPO (initial public offering) of Facebook's stock. First and foremost please know that as of the writing of this post the IPO has not even occurred. The IPO is scheduled for the week of May 14th. Currently the offering pri...

Working my way up we have touched on my rules #10, #9, and #8, all of which are very basic "starter" rules for getting involved with your 401(k) or 403(b) plan at work. Today's rule assumes you are a plan participant and have been contributing for a while. At some point you start to think about what...

I don't have a crystal ball. And if I did I'm not sure I would know how to use it. It seems like having a crystal ball would come in handy to figure out what investments to choose in your 401(k) or 403(b). You look at a list of funds or go online and see a bunch of choices, maybe read about a few...