pic by lawkevin 

It should not be about trying to out fox your future predicments.  However, just leaving your future to the faith of the world is unwise. Only you really care about your plans.

Age greatly affects how you plan for retirement. Predictably, your income needs and risk tolerance will be different in your 20s than they are in your 50s.

Adjusting your 401(k) so that it reflects your age is essential to reaching your retirement goals and to ensuring the success of your 401(k).

Here are some helpful tips on how you should approach your retirement strategy and your 401(k) plan based on your age:

Your 20s: This truly is the best time to start contributing to a retirement plan, time is on your side and compounded growth the name of the game!

Your 30s: That’s the age when many of us go through major transitions: marriage, kids, mortgage. Make sure that you factor in retirement savings with all the other expenses you have.

Your 40s: Another major fork in the road, retirement is not that far out anymore. At this age, you should be monitoring and adjusting your investment goals as well as your portfolio quarterly or at the very least, annually.

Your 50s: Now is the time to be more conservative with your investment selection and asset allocation. For example, what would happen if your nest egg disappeared because of a high-risk investment? You can’t afford for that to happen since you will need the money in a few years.

Your 60s: At this age, it’s all about withdrawal strategies and estate planning and what you’ll do with the rewards from years of smart planning and saving!

The best place to start? Contact your bank or ask your trusted friends for a referral to a Financial Advisor who can help you start planning your dream retirement.

This article comes to you from The Online 401(k), a provider of 401(k)s for small businesses. For more information or a free consultation on your 401(k) plan or to find out if Roth is right for you, call John Wasiejko at jwasiejko@theonline401k.com or call us at 415.477.8800 ext 828.

art by chrysti

How is your nest egg doing?

Wondering what a 401(k) actually is? Need to explain it to your employees? Here’s a quick article that will help you brush up on the basics of 401(k) plans.

What is a 401(k)?
A 401(k) plan is a special type of savings account that is offered only through employers. This account allows you to defer part of your salary today, for future use in retirement. Best of all, you can invest your 401(k) dollars so they can potentially grow.  With a 401(k) plan, you are not taxed on the money you contribute until you begin to take it out at retirement. That means fewer taxes today and more savings for you!

What does a 401(k) mean for me?
For some of you, this may be the ONLY method of saving for retirement, for others, it’s a nice complement to other investments.

401(k) plans offer many benefits that apply to everyone:

*Tax savings - You will pay less in taxes as soon as you start contributing. For example, if you are in the 31% tax bracket, for every $1,000 you put into a 401(k) plan you will pay $310 less in current taxes.

*It’s easy - Your employer automatically deducts 401(k) contributions from your paycheck as directed by you.

*Deferred taxes - Your accumulated 401(k) contributions will not be taxed until you begin to withdraw your money.

Remember, your company’s 401(k) plan is one of the easiest ways to start savings for retirement — take advantage of it!

This article comes to you from The Online 401(k), a provider of 401(k)s for small businesses.

For more information or a free consultation on your 401(k) plan, call John Wasiejko at jwasiejko@theonline401k.com or call us at 415.477.8800 ext 828.

photo by Jimmy_Joe

Everything you need to know about retirement…but were afraid to ask.

Like doing your taxes or rearranging your sock drawer, retirement can be one of those things you just don’t want to think about. Don’t let confusing industry jargon scare you. Motley Fool, one of the best personal finance sites, has put together an easy-to-use guide that gives you everything you need to know about retirement.

Check out this link

This article comes to you from The Online 401(k), a provider of 401(k)s for small businesses. For more information or a free consultation on your 401(k) plan, call John Wasiejko at jwasiejko@theonline401k.com or call us at 415.477.8800 ext 828.

 photo by Anirudh Koul

The only way to decide whether to use a Roth and make it your rock star is through knowledge.

Find out if a Roth 401(k) plan is right for you!!

Beginning January 1, 2006, employers had a new retirement savings option to offer employees. The plan, commonly referred to as a “Roth 401(k),” is a hybrid that combines features of Roth IRAs and traditional 401(k) plans, but differs in important aspects.

A Roth 401(k) is similar to a Roth IRA in that it allows after-tax contributions to fund tax-free retirement income. However, a Roth 401(k) allows for sharply higher annual contribution amounts than a Roth IRA — up to $15,500 ($20,500 if older than age 50) in the 2008 tax year versus just $5,000 for a Roth IRA.

As a general rule, Roth 401(k) fits particularly well with highly-paid employees who will be in a high tax bracket during retirement. It is also a good fit for financially savvy employees because an analysis is required to make an intelligent decision about Roth deferrals.

Wondering if a Roth is for you or your employees? Contact your local financial advisor or benefits provider to see if it’s the right fit for you.

This article comes to you from The Online 401(k), a provider of 401(k)s for small businesses. For more information or a free consultation on your 401(k) plan or to find out if Roth is right for you, call John Wasiejko at jwasiejko@theonline401k.com or call us at 415.477.8800 xt 828.

Whether it’s a new bed-and-breakfast venture, travel to far-off lands or devoting your energy to a charitable organization, retirement is one of the best times for you to pursue your true passion.

But how do you identify your passion?

Read more from Kiplinger’s…click here for link.

This article comes to you from The Online 401(k), a provider of 401(k)s for small businesses. For more information or a free consultation on your 401(k) plan, contact John Wasiejko at jwasiejko@theonline401k.com or call us at 415.477.8800 xt 828.

Employees are feeling depressed, anxious, stressed, overwhelmed during this time of economic uncertainty. This in turn causes the employee to get sicker. Work with your health care provider to provide your employees with a voluntary health risk assessment. Health care workers most likely nurses staffing a 24/7 confidential help line can become the resource the employee needs with out any stigma. The focus is on prevention to lower the impact of these feelings on the social and economic effect due to absences and impairment. While there is an increase cost to providing the service, the fears of today make the investment worth it.

Supporting mental health needs in a neutral way benefits most employees and the employer.

Blue Cross Blue Shield of Massachusetts is a nonprofit organization that is a health care insurance entity. The CEO was paid 1.36 million in 2006 and 3.6 million in 2007. The Chairman was paid 1.73 million in 2007. The former chairman received 16.4 million to retire in 2007. Average premiums increased 7.5 percent.

The CEO of Harvard Pilgrim was paid 1.38 million in 2007. The CEO of Tufts Health Plan was paid 1.19 million in 2007.

If the President of the USA can be paid a salary of $400,000 then that should be enough for any executive of a nonprofit regardless of revenues.

Since these organizations are acting like for-profits in the manner in which they run their organization compensations and incur costs should they be stripped of their nonprofit status?

The states should allow access to the nonprofit organizations to have their employees be on the state medicare system for a flat fee per month. This will give the medicare and nonprofit system better pricing options.

The other option is to have nonprofits create a cooperative insurance company that they have better control over for costs and benefits.

Health care insurance and medical expenses should not have to make you bleed money as well!!!

For those of you thinking of a new career and making a difference there are many nonprofits within five miles of your home.  Check out www.guidestar.org and type in your zip code.

The largest area where there are plenty of paid positions across any field of experience is in the health and human services field. For positions check out  www.idealist.org, www.craigslist.org and www.nonprofitjobs.org.

Be patient, read carefully and look at what the organization offers you to meet the goals you wish to achieve in the next career.  Use the interview to probe and ask the tough questions.  Think of yourself as interviewing the organization to meet your needs.

Organizations whom are willing to be questioned by candidates will find an employee that understands what they have committed to and know the expectations for both parties.

Health costs are making the cost of an employee much harder for an organization to support.

Make sure employees know the total costs of all insurance benefits, taxes, unemployment and workers compensation paid out by your organization in addition to their individual salary. By showing the increased costs that the organization is incurring each year, it provides for a clearer understanding of why raises are harder to obtain.

Organizations that provide staff with a clarity on costs and a compensation bonuses pool Create a pool of funds as a one time expenditure), makes it easier to control costs. Further, staff whom have the knowledge of what it truely costs to employee staff are more engaged with the organization.  An organization where staff have an understanding where the money is being spent are more committed to that organization when spending is viewed as being distributed fairly.

When does a contract fail you? When words in the contract are not defined.

For example, in Coldwell Banker’s Exclusive Right to Sell Agreement, a seller owes the fee if ” During the term of this Agreement a Buyer is procured ready, willing and able to buy the Property or any part there of, in accordance with the price, terms and conditions of this Agreement”.  Nowhere in the agreement is there a definition of what “this Agreement” means.   I have the knowledge of one individual who received a letter from the Coldwell Banker Realtor demanding their fee. A year later between legal fees and settling, with neither side admitting anything, the cost is $23,000.  Come to find out, regardless of what the Sellers were told verbally by the agent, the seller should have written it into the Agreement, regardless of the Realtor’s assurances, that it was the purchase and sale agreement.  It could mean “the offer”.

Another example is the expiration of an offer. It is important to realize that the strength of your position is only to the degree that you maintain control. In an agreement, deadlines and options can be the critical components. If provisions have not been met, it may be wise to let the offer expire. It will certainly make sure everyone involved is paying attention and that your serious.

Do not let a realtor or anyone else push you to automatically exercise an extension or accept an option unless you have an attorney who represents your rights and they have advised you of the pros and cons. You must clearly understand what will happen with your actions. It is your responsibility to ask your attorney questions to make sure you understand what the results of your actions could be.

Therefore, if it is not clear to you, do not sign until the language means such to you.