401K Financial Planning

Agnes b. asked:

I’m thinking of maxing out my new 401K (company is matching at 25%) but my spouse (who has a 401k from previous employment but does not put anymore money in it) thinks that it is not a good idea to put any money in my 401K, and would prefer that I save this money for a down payment (1st time buyers). I am 30 yrs old and I don’t have any money saved for retirement yet. Any advice?
Already some really good information, than you all! Additionally, how do I contribute enough to get the full company match if the company matches 25% of my contribution up to the IRS maximum (which is $15,500 in 2007)?


Question posted courtesy of: Andrew

loco asked:

I have a traditional 401k and a Roth 401k through my employer. If I wanted to convert the Roth 401K and marry it with my Roth IRA, could I do this? Are theyre any fees or penalties? If I wanted to convert my traditional 401k to a traditional IRA could I do that without penalty?


Question posted courtesy of: Craig

Lola76 asked:

I have read differing opinions on this and don’t know which is better. I first read to contribute as much as you can to the 401K and then open an IRA on top of that. I recently read to only contribute what your company matches to the 401K and invest the rest in a IRA. Someone at work told me that because of my age, I should take advantage of the pre tax and do the 401K. But I know I want an IRA b/c of the tax free investment income.
I currently contribute 12% to my 401K and do not have an IRA yet.
I was thinking of leaving the 12% and investing maybe $100 - $200 a month in the IRA- is that enough? I can’t afford more than that without reducing the % to my 401K. Thank you!!
I was talking about a Roth IRA, thanks for clarifying. I definitely am not maxing out my 401K each year, so after the 4% match- I don’t know what’s best. I really don’t want to pay a financial adviser if I can figure it out for myself

Question posted courtesy of: Lucille

Liasonsupercouple asked:

I have assignment for my computer science class. I need to make a power point about the subject. and the power point has to have 15 slides or more. Requirements:
a) Roth IRA Explanation
b) Roth 401k Explanation
c) Contribution limits for Roth IRAs and Roth 401ks.
d) Differences between Roth IRAs and Roth 401ks.
e) Advantages a Roth 401k might have over a Roth IRA and vice-versa.
f) Can you transfer a Roth IRA to a Roth 401k and vice versa? How? Limitations?
g) Can you have both a Roth IRA and a Roth 401k?
h) Can you contribute to both a Roth IRA and a Roth 401k the same year?
i) 5 good reasons for using a Roth 401k and/or a Roth IRA. Be sure to include the following reasons:
1) tax advantages
2) Social Security’s questionable nature
3) Disappearing pensions
4) how much living expenses might be at various points in the future (10, 20, 30, 40 years from now) due to inflation.
I guess my question is can do the project and show what to put on each slide and meet all the requirements.


Question posted courtesy of: Larry

juliemc210 asked:

The reason I ask is that I was about to convert my 401K from a previous employer to a IRA. I just learned that starting in 2008, a new law taking effect would allow conversion of 401Ks directly to a Roth IRA. Can I transfer to my present 401K and later move to the Roth IRA in 2008? (My old company is about to be sold and I can no longer keep the 401K account there.)


Question posted courtesy of: Adrian

SONYA G asked:

I have about $150,000 in my 401k but I’m not well diversified. I’m 37 yrs old with many more years to work. I have 99% in stocks and not much in mutual funds, etc. With the market near another high should I be worried about a crash and losing much of it? Also, I have a 401k loan of $20,000. I have the money to pay it back but its in a money market acct. earning 3.87 %. I’m worried about putting it back into my 401k and taking a loss. YTD I have a 7.76% return on my 401K.

Any suggestions on what I should do? In summary,
1- Diversify or stay the same?
2- Pay off 401k of keep money market acct?
3- Risks?

Thank you,
I don’t want to do my own investing so looking for low stocks and selling is not an option for me. I was wondering if I should stay in agressive stocks or get out into something more secure. If the stock crashes I’m not sure how it would affect my current money, but I think I would loose it with the profits/gains, correct?


Question posted courtesy of: Alfred

rickyazmi asked:

I recently left my job and have a small investment in 401K. My new employer has their 401k plan, and I am also familiar with Rollover option. However, I dont understand the process too well. Is it advisable:
AA) that I leave my 401k with my former employer (as it is) and start fresh another 401k with my new employer? Will it have any negative impact?
BB) I roll it over to IRA (Schwab) and then also continue with the new 401k with my new employer?
CC)If I directly rollover to my new employer, will my former employer come to know the details of my new employment (my employer, my position etc??) Appreciate any sincere advise as I have never done this before.-Thanks folks…God Bless you all!


Question posted courtesy of: Lydia