Comments on: 12 Mistakes to Avoid With Your Retirement Savings Plan http://genxfinance.com/12-mistakes-to-avoid-with-your-retirement-savings-plan/ Helping a unique generation achieve financial independence. Thu, 09 Feb 2012 18:21:30 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Michael http://genxfinance.com/12-mistakes-to-avoid-with-your-retirement-savings-plan/comment-page-1/#comment-78525 Michael Sat, 05 Jul 2008 16:35:18 +0000 http://genxfinance.com/2006/11/30/12-mistakes-to-avoid-with-your-retirement-savings-plan/#comment-78525 NO, NO, NO!!! The 401k/457b/403b is a scam until you've maxed out an IRA. If you plan on retiring with the MAJORITY of your 401K/457b/403b doing the heavy lifting you may think twice. You need ten, "10" times the yearly income of your last year in work to meet the basic necessities of retirement. So if you make $65K a year that's $650K or $26K a year for 25 years. Problem is the make contribution is only $15.5k... Do the math, the public has been scammed by the financial engineers of Wall St. and corporate America. NO, NO, NO!!!

The 401k/457b/403b is a scam until you’ve maxed out an IRA. If you plan on retiring with the MAJORITY of your 401K/457b/403b doing the heavy lifting you may think twice. You need ten, “10″ times the yearly income of your last year in work to meet the basic necessities of retirement. So if you make $65K a year that’s $650K or $26K a year for 25 years. Problem is the make contribution is only $15.5k… Do the math, the public has been scammed by the financial engineers of Wall St. and corporate America.

]]> By: liferules.org http://genxfinance.com/12-mistakes-to-avoid-with-your-retirement-savings-plan/comment-page-1/#comment-78252 liferules.org Wed, 02 Jul 2008 19:03:58 +0000 http://genxfinance.com/2006/11/30/12-mistakes-to-avoid-with-your-retirement-savings-plan/#comment-78252 Great tips! I think people blindly think that dumping money into their 401K and forgetting about it without managing it properly will guarantee them fiscal success later on. Thanks for reminding us that is not the case. Great tips! I think people blindly think that dumping money into their 401K and forgetting about it without managing it properly will guarantee them fiscal success later on.

Thanks for reminding us that is not the case.

]]> By: Genesis Bible http://genxfinance.com/12-mistakes-to-avoid-with-your-retirement-savings-plan/comment-page-1/#comment-76802 Genesis Bible Tue, 17 Jun 2008 01:32:32 +0000 http://genxfinance.com/2006/11/30/12-mistakes-to-avoid-with-your-retirement-savings-plan/#comment-76802 man ... nice tips! indeed avoid procrastination at all costs man … nice tips! indeed avoid procrastination at all costs

]]> By: Jeremy http://genxfinance.com/12-mistakes-to-avoid-with-your-retirement-savings-plan/comment-page-1/#comment-12340 Jeremy Thu, 12 Jul 2007 02:00:43 +0000 http://genxfinance.com/2006/11/30/12-mistakes-to-avoid-with-your-retirement-savings-plan/#comment-12340 Thanks for catching that typo Leigh, it should be corrected now. Thanks for catching that typo Leigh, it should be corrected now.

]]> By: Leigh Cromleigh http://genxfinance.com/12-mistakes-to-avoid-with-your-retirement-savings-plan/comment-page-1/#comment-12320 Leigh Cromleigh Wed, 11 Jul 2007 23:00:24 +0000 http://genxfinance.com/2006/11/30/12-mistakes-to-avoid-with-your-retirement-savings-plan/#comment-12320 The penalty for early withdrawl is prior to age 59 1/2 not 15 1/2. Thanks. The penalty for early withdrawl is prior to age 59 1/2 not 15 1/2. Thanks.

]]> By: Rajnikant patel http://genxfinance.com/12-mistakes-to-avoid-with-your-retirement-savings-plan/comment-page-1/#comment-853 Rajnikant patel Sun, 21 Jan 2007 14:24:42 +0000 http://genxfinance.com/2006/11/30/12-mistakes-to-avoid-with-your-retirement-savings-plan/#comment-853 very interesting article, it is like chewing 12 sweet toffees, a reader commented on 13th mistake as well. Good very interesting article, it is like chewing 12 sweet toffees, a reader commented on 13th mistake as well. Good

]]> By: Jeremy http://genxfinance.com/12-mistakes-to-avoid-with-your-retirement-savings-plan/comment-page-1/#comment-164 Jeremy Thu, 30 Nov 2006 22:22:56 +0000 http://genxfinance.com/2006/11/30/12-mistakes-to-avoid-with-your-retirement-savings-plan/#comment-164 Well loans aren't the worst option, but it is often too easy to get a loan and then the repayment plans are painfully slow. On some plans, as long as 10 years. So while someone may only borrow say $5,000, if you spread repayment back over the course of 5 or 10 years you have missed out on a lot of potential compounding. What is even worse is that many employees, at least those who are younger rarely stay with the same company for extended periods of time. These people who take out loans and then leave the company before it is repaid more often than not I see people not repaying the loan and then taking the tax hit. Then not only did they miss out on growth, but they effectively took an early withdrawal. And I thought about what you suggested for 13, but since it is about a 50/50 chance of being a mistake I didn't put it in. In some cases you certainly end up rolling your money into a new employer plan that does have high fees and not as many options, there are many other cases where this may not be the case, especially if moving to a large organization. Larger companies typically work with companies like Fidelity, which offer many great low-cost options or offer what are typically load funds as institutional funds which have no loads and can have low fees. Of course this varies greatly by plan, which is why anyone changing jobs should throughly research their new plan to be sure they make the right decision. Well loans aren’t the worst option, but it is often too easy to get a loan and then the repayment plans are painfully slow. On some plans, as long as 10 years. So while someone may only borrow say $5,000, if you spread repayment back over the course of 5 or 10 years you have missed out on a lot of potential compounding.

What is even worse is that many employees, at least those who are younger rarely stay with the same company for extended periods of time. These people who take out loans and then leave the company before it is repaid more often than not I see people not repaying the loan and then taking the tax hit. Then not only did they miss out on growth, but they effectively took an early withdrawal.

And I thought about what you suggested for 13, but since it is about a 50/50 chance of being a mistake I didn’t put it in. In some cases you certainly end up rolling your money into a new employer plan that does have high fees and not as many options, there are many other cases where this may not be the case, especially if moving to a large organization.

Larger companies typically work with companies like Fidelity, which offer many great low-cost options or offer what are typically load funds as institutional funds which have no loads and can have low fees. Of course this varies greatly by plan, which is why anyone changing jobs should throughly research their new plan to be sure they make the right decision.

]]> By: Lazy Man and Money http://genxfinance.com/12-mistakes-to-avoid-with-your-retirement-savings-plan/comment-page-1/#comment-162 Lazy Man and Money Thu, 30 Nov 2006 21:23:07 +0000 http://genxfinance.com/2006/11/30/12-mistakes-to-avoid-with-your-retirement-savings-plan/#comment-162 I read that taking loans from your 401K (as long as you can pay them back) isn't the worst plan. I wouldn't do it, but the argument is that it is effectively interest-free. Yeah, you lose the market opportunity, so that's the cost. Moving your old plan to your new employer's plan would be my 13th mistake. Why not have the most investment options possible and move it to an IRA. Sometimes employer's plans have heavy fees. I read that taking loans from your 401K (as long as you can pay them back) isn’t the worst plan. I wouldn’t do it, but the argument is that it is effectively interest-free. Yeah, you lose the market opportunity, so that’s the cost.

Moving your old plan to your new employer’s plan would be my 13th mistake. Why not have the most investment options possible and move it to an IRA. Sometimes employer’s plans have heavy fees.

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