Smart401k Blog

In my last common 401(k) pitfalls article I discussed a few advanced distribution strategies.  For this article I thought I would take a step back and discuss a couple things to avoid regarding the diversification of your account.

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In the headlines

A look at some of the market movers over the past week:

• Job losses were less than expected and the unemployment rate stayed at 9.7%
• The Fed’s Beige Book showed continued economic improvement, though winter storms took their toll
• There was unrest in Greece as the country took on austerity measures in hopes of paving the way for European Union aid
• Prudential agreed to buy AIG’s Asian life insurance unit for $35.5 billion

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Last Friday, I had the opportunity to attend a speech by Alan Barkema at the Kansas City Federal Reserve.  He’s the senior vice president of the Research Division and Director of Research for the KC Fed.  It was a great experience to visit the new(ish) Fed building and hear from a very experienced and very knowledgeable economist.

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In the headlines

A look at some of the market movers over the past week:

• The much-awaited healthcare summit took place in Washington, but it’s unclear that a bipartisan bill is any closer
• Schlumberger agreed to acquire Smith International for $11 billion
• Many European countries may have obscured debt levels through complex financial transactions
• A meeting among U.S. governors was split on the merits of government stimulus spending

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Credit cards can be your best friend or your worst nightmare. When used appropriately, they provide a convenient and efficient way of making purchases. Whether it’s filling up your gas tank or buying groceries, a credit card can speed up the purchase process and keep you from having to carry around a pile of cash or fumble through a pocket of loose change. They can also help you build a credit score that will be used in determining the rates you’ll pay on loans, like mortgages. Unfortunately, if you spend too much, even the best credit card in the world isn’t going to be able to help.

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In the headlines

A look at some of the market movers over the past week:

• Greece and its debt crisis remained in the spotlight
• A group of telecom operators teamed up to battle Apple’s apps store
• U.K. inflation was surprisingly high in January
• Foreclosures remain a difficult problem for the housing market

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I had been looking forward to President’s Day weekend for the last couple of months.  It’s a long weekend for Smart401k, and my friends and I had decided to meet up in Park City, UT.  Park City is an awesome mountain to board on and the town has great food and drink.  Needless to say, I was excited to get there when I headed to the airport on Friday.

Unfortunately for me, Delta switched to a smaller plane.   Read the rest of this entry »

In the headlines

A look at some of the market movers over the past week:

• European leaders promised to not let Greece fall under the weight of its credit crisis
• The Federal Reserve began outlining its exit strategy for its record credit expansion
• Former Merrill Lynch chief John Thain is set to take over at CIT
• SAP shook up its top level management

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In the headlines

A look at some of the market movers over the past week:

• Former Fed Chief Paul Volcker made a case for stringent financial reforms
• Global semiconductor sales were up 29% year-over-year in December
• President Obama unveiled his $3.8 trillion budget proposal
• Bank of New York Mellon agreed to pay $2.3 billion for a unit of PNC Financial and PNC announced that it will repay TARP borrowings

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If you are an employee of a public school, hospital or other 501(c)(3) organization, then you are most likely eligible to participate in a 403(b). The responsibilities of employers offering a 403(b) plan are much looser than those of 401(k) sponsors. For example, employers offering a 401(k) (or 403(b) with an employer match) have a fiduciary duty to ensure that there is an appropriate mix of investment options offered and that the fees in the plan are reasonable for the services being provided. In contrast, voluntary 403(b) plan sponsors must only provide access to an adequate number of companies for investors to choose from. Adequate in this case, is most commonly defined as a number large enough to ensure that it does not appear that the employer is endorsing one company over another. The relaxed structure means that you as a 403(b) investor have to look out for yourself when it comes to selecting an option with a good mix of investment choices and reasonable fees.  As overwhelming as this may seem, I know that you can do it if you do your homework and seek guidance when needed. Here are a few tips to get you started.

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