Spamdex - Spam Archive

Report spam

Send in your spam and get the offenders listed

Create a rule in outlook or simply forward the spam you receive to

Also in

One Clear Sign You Have a Rotten 401(k)--And What to Do About It

Not every 401(k) plan is what it's cracked up to be. Here are a few reasons you might consider stopping your contributions. |
One Clear Sign You Have a Rotten 401(k)—And What to Do About It
If your 401(k) is a big deal in your retirement savings strategy, you're not alone. More than 52 million workers participate in a 401(k) plan. That adds up to $4.4 trillion in retirement assets, making 401(k)s one of the most common sources of retirement income for U.S. workers.

But plans vary from employer to employer, so not every 401(k) plan is what it's cracked up to be. The last thing you need is to throw away your retirement investing budget in a plan that's going nowhere. Take a look at some reasons why you might consider stopping your contributions to your employer's 401(k), then check out our suggestions for how to keep your retirement plan on track without one.
No Match? No Deal
All 401(k) plans come loaded with certain benefits. First, there's the tax deferral that helps your retirement money grow faster. Then there are the automatic contributions that make regular retirement investing a breeze. On top of that, traditional 401(k) contributions lower your taxable income, allowing you to invest more without feeling the pinch in your paycheck.

But the crowning glory of any 401(k) plan is the employer match. It can take many forms, but the most common is a dollar-for-dollar match on the first 6% of your salary. It's an instant and guaranteed return on your money.

Awesome, right? But without an employer match, the other benefits lose their punch. In fact, if your employer doesn't offer a match, you're better off to skip it (as a first step) and start by investing in a Roth IRA instead. Here's why:
  • Even though tax deferral is great, the money you invest in your Roth IRA will grow tax-free. You won't have to pay taxes on the money you withdraw from your Roth IRA when you retire, but you will have to pay taxes on money withdrawn from your 401(k).

  • Your 401(k) offers limited investment choices. But with a Roth IRA, you can choose the best mutual funds from the thousands available.
Roth IRAs have contribution limits—currently $5,500 per person or $6,500 if you're 50 or older. If that's not enough to get you to your goal of investing 15% of your income for retirement, invest the remainder in your 401(k). A tax-deferred account is better than a fully taxable one, after all.
Terrible Investing Options = Terrible 401(k)?
A recent study of 401(k)s shows the average plan offers 25 investment options. Mutual funds are the investment of choice for most 401(k) participants, but the quality of those funds isn't always the best. Some could be poor performers, charge high fees or both. Or your limited choices could keep you from spreading your money around into different mutual fund types, which increases your investing risk.

The best way to know for sure if your 401(k) offers good mutual fund choices is to review your options with your own investing advisor. Without the help of an experienced pro, you'd have to dig up information on each option and compare their performance, fees and investing styles all on your own—a time-consuming and confusing process.

With all that in mind, it's rare that a 401(k) would be so expensive or offer such poor mutual fund options that you would give up your employer match by not participating in the plan. Your advisor can be a big help by showing you how to make the most of your match even if your options aren't so hot.
Make Sure Your Options Are Working for You
If you decide to skip your 401(k) altogether, it's important to find additional tax-advantaged retirement savings plans to build your nest egg. For single people, a Roth IRA will be essential. After you max out your Roth, however, you will have to open a taxable investment account.

Married people have a couple more options:
  • You can both open Roth IRAs and max them out—that's a potential $11,000 a year.

  • If you have a lousy 401(k) but your spouse's plan is awesome, you can take advantage of their 401(k)'s tax deferral and meet your 15% goal by increasing contributions to their 401(k) account—up to $18,000 a year, plus an additional $6,000 if you're age 50 or older.
Whether you can afford to max your retirement accounts out or you're stretching to reach your 15% goal, you're dedicating a lot of your income to retirement. It only makes sense to work with an advisor who can help you decide the best way—not just the easiest way—to divvy up your retirement dollars.
How to Know if Your 401(k) Is a Stinker
As you evaluate your 401(k) to decide if you should continue participating, here are a few specifics to keep in mind:
  • We said before that a 401(k) with an employer match would hardly ever be too expensive to participate in. But if your 401(k) fees are higher than average, be sure to contribute no more than necessary to receive your full employer match. If you don't know what your expenses are, or if they're too high, your investing advisor can help you figure it out and put together a Roth IRA that's less expensive.

  • A skimpy employer match makes the question of expenses even more crucial to answer. If your match is 2% or less, fees will have an increasingly dramatic effect on your ability to build a nest egg. That makes a Roth IRA an even more important part of your retirement savings strategy.

  • You should have a selection of at least a handful of different types of growth stock mutual funds. If your 401(k) options are limited to mostly company stocks, ask your advisor how to balance out your risks.
If you're not sure if your mutual fund is better or worse than average, you owe it to yourself to talk with an investment advisor you can trust.

elp Endorsed Local Providers are the only professionals Dave Ramsey recommends. 98% highly recommended!
View Online
This message was intended for:
| Privacy Policy
© 2015 Ramsey Solutions
1749 Mallory Lane, Brentwood, TN 37027 | 888.227.3223


All titles, content, publisher names, trademarks, artwork, and associated imagery are trademarks and/or copyright material of their respective owners. All rights reserved. The Spam Archive website contains material for general information purposes only. It has been written for the purpose of providing information and historical reference containing in the main instances of business or commercial spam.

Many of the messages in Spamdex's archive contain forged headers in one form or another. The fact that an email claims to have come from one email address or another does not mean it actually originated at that address! Please use spamdex responsibly.

Yes YOU! Get INVOLVED - Send in your spam and report offenders

Create a rule in outlook or simply forward the junk email you receive to | See contributors

Google + Spam 2010- 2017 Spamdex - The Spam Archive for the internet. unsolicited electric messages (spam) archived for posterity. Link to us and help promote Spamdex as a means of forcing Spammers to re-think the amount of spam they send us.

The Spam Archive - Chronicling spam emails into readable web records index for all time

Please contact us with any comments or questions at Spam Archive is a non-profit library of thousands of spam email messages sent to a single email address. A number of far-sighted people have been saving all their spam and have put it online. This is a valuable resource for anyone writing Bayesian filters. The Spam Archive is building a digital library of Internet spam. Your use of the Archive is subject to the Archive's Terms of Use. All emails viewed are copyright of the respected companies or corporations. Thanks to Benedict Sykes for assisting with tech problems and Google Indexing, ta Ben.

Our inspiration is the "Internet Archive" USA. "Libraries exist to preserve society's cultural artefacts and to provide access to them. If libraries are to continue to foster education and scholarship in this era of digital technology, it's essential for them to extend those functions into the digital world." This is our library of unsolicited emails from around the world. See Spamdex is in no way associated though. Supporters and members of Helping rid the internet of spam, one email at a time. Working with Inernet Aware to improve user knowlegde on keeping safe online. Many thanks to all our supporters including Vanilla Circus for providing SEO advice and other content syndication help | Link to us | Terms | Privacy | Cookies | Complaints | Copyright | Spam emails / ICO | Spam images | Sitemap | All hosting and cloud migration by Cloudworks.

Important: Users take note, this is Spamdex - The Spam Archive for the internet. Some of the pages indexed could contain offensive language or contain fraudulent offers. If an offer looks too good to be true it probably is! Please tread, carefully, all of the links should be fine. Clicking I agree means you agree to our terms and conditions. We cannot be held responsible etc etc.

The Spam Archive - Chronicling spam emails into readable web records

The Glass House | London | SW19 8AE |
Spamdex is a digital archive of unsolicited electronic mail 4.9 out of 5 based on reviews
Spamdex - The Spam Archive Located in London, SW19 8AE. Phone: 08000 0514541.