A great discussion from the Von Mises Institute to help further your economic education. This particular talk centers around some of the false economic arguments made by our current political candidates.
Over the past few months, we’ve received emails from our newsletter subscribers asking about 401k loans. I suppose it goes hand-in-hand with our current economy, as we look at real unemployment rates and other economic data. Plenty has been written on the topic of 401k loans, but a real actionable checklist might be useful (including a few caveats).
A recent release (Full Copy Here) from the Social Security and Medicare Boards of Trustees indicates that the trust is on pace to deplete in about 18 years (2034). In 2014, $707 Billion was paid out to 48.1 million people. Trustees recommend an immediate SS tax increase of +14.98% and/or a reduction by -16% in benefits.
One thing is for sure, the money hasn’t been managed well and the talk about “means testing” will progress further affecting many millennials regardless of how well they manage their finances. Now is the time to develop a retirement strategy, starting with managing your 401k.
Do you have a plan for independence during retirement? Are you depending on Social Security or other types of government programs?
“Oh my God, Oh my God!!! These markets are in turmoil!!! EVERYTHING is CRASHING Today!!!” This wild overreaction was captured from a random news personality on a random financial news station Friday after the market responded to the British vote to depart the European Union (BREXIT). This crescendo of fear has been orchestrated with the same type of buildup as Y2K.
Aside from the politics of freedom vs. perceived safety, this is a great time to examine the larger question for investors… “Would media owners try to influence an outcome by curating the news they report?” Errr um, no not that question, but the other one, “How do I manage risk in my portfolio when everything seems to be changing so much?” (more…)
The American Benefits Council reported recently that 401k participation rates are at all-time highs. Not so many years ago, participation was near 60% of eligible employees nationwide, an incredibly low number. Recent surveys suggest participation rates are near 91%. However, with the employee’s contribution (and growth) growing tax deferred and often matched by your employer it would be reasonable to expect 100% participation. Historically for many, plans seemed too complex and daunting for younger investors. In addition, younger workers saw retirement as something in the distant future and once placed a lower priority on saving in general. (more…)