What rate of return should I expect on my 401(k)?

June 30, 2024 No Comments

A: We hate to drag out that old hedge-y phrase, “it depends.” But it does. Your 401(k) plan’s rate of return is directly correlated to the investment portfolio you create with your contributions. Although each 401(k) plan is different, contributions accumulating within your plan, which are diversified

What does amortization mean in the context of a pension plan?

June 30, 2024 No Comments

A: There are two primary needs for amortization within the context of a company’s pension plan. The first instances might include a company determining whether to apply current or new pension benefits retroactively to employees who performed services before the current iteration of the pension

What to do after maxing out your Roth IRA?

June 30, 2024 No Comments

A: Congratulations on saving for retirement! In 2018, you can contribute a maximum of $5,500 (or $6,500 if you are 50 or older) to a Roth IRA. Aside from a Roth IRA, there are a number of different retirement plans and tax-deferred savings vehicles for

What does it mean if my 401(k) plan has been frozen?

June 30, 2024 No Comments

A: You are most likely to experience a 401(k) freeze following a merger where the new company must determine what to do with the 401(k) plan it has acquired. During this process, the employer temporarily halts all your new plan contributions and withdrawals, hence the

What was the first company with a $1 billion market cap?

June 30, 2024 No Comments

A: United States Steel Corportation (NYSE:X) was the world’s first company to surpass the market capitalization mark of $1 billion dollars. In the early 1900s, John Piermont Morgan wanted to do for steel what he had done in railroads. The only problem was that Andrew

What does the American Dream mean to different generations?

June 30, 2024 No Comments

A: The American Dream at its core is the belief that every generation should enjoy greater prosperity than the generation before it. The American Dream is often portrayed as reaching certain milestones, such as buying a home and a car, getting married and having children.

What happens to insurance policies and variable annuities if the insurance company itself goes bankrupt – do the policyholders get anything out of it?

June 30, 2024 No Comments

A: The idea of an insurance failing or going bankrupt is one that can be very frightening. However, when an insurance company is in financial peril, there are state guaranty associations and state-run funds that help pay the claims from policies if the insurance companies

What happens to my Locked-In Retirement Account (LIRA) balance when I die?

June 30, 2024 No Comments

A: In the event that the owner of a Locked-In Retirement Account (LIRA) dies before reaching retirement age, the balance of the LIRA will be transferred to the spouse or common-law partner. If the owner does not have a spouse or common-law partner, the balance

What happens to my Roth 401(k) if I leave my job?

June 30, 2024 No Comments

A: A Roth 401(k) works like a traditional 401(k) plan, in that contributions are made through paycheck deferrals and assets held within the plan are tax deferred until they are withdrawn in retirement. However, a Roth 401(k) plan is a post-tax option; contributions provide no

What happens when a will and a revocable trust conflict?

June 30, 2024 No Comments

A: A revocable trust, by nature, is a living trust established during the life of the grantor; by definition, it can be changed during the lifetime of the grantor. Since the trust becomes operative before the will takes effect at death, the revocable trust takes

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