Susan Tompor Detroit Free Press Published 7:00 AM EST Nov 9, 2018 Randy Sigley, 63, who grew up in West Virginia, remembers that jobs were hard to come by in the mid-1970s so he headed to Ohio to work in a factory making concrete pipe. He got that job about a year out of high school and made sure to hold onto it at least 10 years because he always heard that he'd qualify for a pension if he stayed that long. But decades later when he tried to collect that pension, he ran into a giant roadblock. He was told he wasn't owed a dime. Most people think you go to work, retire and, if there's a pension, you ask the company to send the checks. For many people, it works out fine. For thousands of others, though, unexpected hurdles stop them from getting a pension check. People end up moving; companies close down plants and offices. Small pensions are easily forgotten about years after you left a job. Even some 401(k)s can go unclaimed in some cases when you … [Read more...] about Tracking a pension or 401(k) can be tougher than you’d imagine
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By Brittany De Lea Published August 30, 2018 Personal Finance FOXBusiness Facebook Twitter Comments Print video Can the market rally keep going? CFRA Research Chief Investment Strategist Sam Stovall on the market outlook. President Trump took to Twitter Thursday morning to praise the stock market, saying more people can expect to see a bump in their retirement accounts as he claimed more “good” economic news was on the way. Continue Reading Below A significant number of people are seeing a meaningful increase in the sizes of their retirement accounts. According to Fidelity, the number of “401(k) millionaires,” or people with at least $1 million in their 401(k) accounts, rose to 168,000 at the end of June, up more than 40 percent over the year prior. The number of “IRA millionaires” hit 156,000 during the same period. Fidelity also reported that the number Americans had stashed away in their 401(k) … [Read more...] about Trump sees retirement savings bump, more 401(k) millionaires?
When it comes to where retirement savers are putting their money, one type of fund has taken the lead. The percentage of participants relying on a single "target-date fund" for all their retirement savings is at an all-time high of 51 percent, according to Vanguard's annual benchmarking report, How America Saves 2018. This is a generally good thing because these funds provide professional investment management and asset allocation, especially for those just starting to save for retirement. Target-date retirement funds aim to match an investor's asset allocation with his or her age. They automatically rebalance the allocation by gradually reducing the portion in stocks and increasing the portion in cash and bonds as the fund's target maturity date approaches -- typically the year the investor plans to retire. These funds provide professional investment management and asset allocation. Fueling the popularity in target-date funds to their current high is that many plans make these … [Read more...] about Over half of 401(k) savers invest in one kind of fund
Susan Tompor Detroit Free Press Published 11:00 p.m. UTC Jul 29, 2018 Could President Donald Trump's mounting trade war end up as the undoing of your 401(k)? When it comes to tariffs, no matter your politics, the risk of owning stocks clearly has gone up. Growing uncertainties surrounding U.S. trade policies could lead to reduced profits for some companies, higher prices for consumers, job losses and at the worst extreme could bring on the next recession. While tariffs protect weaker domestic industries from foreign competition, economists note that trade barriers in the long run can be harmful to growth and we're already hearing warnings from automakers and others. The good news: We're not on the brink yet. Many 401(k) plans aren't feeling much of a pinch. It's been a relatively good summer for stocks. The Dow Jones industrial average closed at 24,753.09 points on May 25, the Friday before Memorial Day. The Dow closed at 25,527.07 … [Read more...] about Will your 401(k) feel the squeeze of higher tariffs?
Small businesses could find it easier to offer 401(k) plans to employees under a pair of bills introduced in both houses of Congress. The bills, each called the Retirement Enhancement and Savings Act, would change federal laws to allow companies to jointly offer what are called multiple employer retirement plans, or MEPs. The bills, which have bipartisan support in both the House and the Senate, does not specify that it's aimed at 401(k) plans, but because of their complexity and costs, many small businesses haven't been able to offer these plans on their own. While costs vary depending on the number of employees and amount of money invested in each plan, companies can expect to pay thousands of dollars a year on 401(k)s. An MEP allows them to save on administrative costs because there is one set of paperwork covering all of them. Lower costs also can mean a higher return on money invested in a plan. The bills would also increase the size of tax credits small businesses can get for … [Read more...] about 2 bills in Congress could make small business 401(k)s easier