Finance expert Mike Periu on how to maximize and Double Your Retirement Income. One of the most stressful retirement-related decisions is choosing when you will actually do it. If you retire too early you may not have enough money to cover your expenses for the rest of your life; retire too late and you are missing out on the joys of retirement. The rule of thumb used by most financial advisors is that you won't outlive your retirement funds if you only withdraw 4 percent of the balance each … [Read more...]
Calculating the True Cost of Your Retirement Plan
Finance expert Mike Periu on how to evaluate the true cost of your retirement plan.. Since July of this year, new fee-disclosure rules took effect that requires full disclosure of 401(k) fees and expenses by financial firms offering to administer these plans. This disclosure, however, doesn't apply to sales and marketing materials like PowerPoint presentations which are typically used to convince business owners to offer their employees a 401(k) plan. Choosing the wrong plan can lead to … [Read more...]
Keep a Watchful Eye on Retirement Account Fees
Finance expert Mike Periu on the hidden costs of retirement account fees. Today marks the end of National Retirement Week and if you have some free time this weekend you should "celebrate" by opening your retirement account disclosure documents. Most people don't bother reading the small print associated with retirement accounts but you should because these accounts aren't free. You are paying fees to a third party to manage your retirement account and by law these fees need to be disclosed. A … [Read more...]
Use “Financial Bucket” to Make Your Retirement Money Last
Finance expert Mike Periu on the "financial bucket" concept for retirement planning. October 26, 2012 A successful investment portfolio needs to include a combination of investment types with different risk/reward profiles. But how do you translate that into specific decisions that will build the investment portfolio you need to enjoy a good retirement? Many people are turning to the "financial bucket" concept. Each bucket represents a different phase of your retirement. The first bucket … [Read more...]
Is a 401K Plan Right for Your Small Business Employees?
Give your workers the same tax advantages that many employees of big corporations enjoy. Is a 401K Plan Right for Your Small Business Employees The 401(k) plan is a retirement savings account that offers various wealth accumulation advantages. The two most important advantages are tax-deferred earnings and a reduction in your taxable income. The tax-deferral benefit has two parts: First you can defer taxes on the money you deposit and secondly you defer taxes on the gains you make on the … [Read more...]
How Entrepreneurs Should Fund Retirement
If your nest egg is your business, ask yourself these questions to make sure you can sell it for a good price when it's time to retire. In the first part of this series, I discussed how small-business owners can determine how much money they need in order to have a comfortable and dignified retirement. Once you know “how much” you need, the question then becomes “How do I fund this amount?” The money needs to come from somewhere. Knowing that you’ll need $8 million in 15 years is important but … [Read more...]
Tailored Retirement for Small-Business Owners
Previously I've discussed how much money a small-business owner needs to retire. For many readers this is a wake-up call; retirement planning really can't wait. The next decision small-business owners need to make is which types of accounts to choose to hold their retirement savings. Continue reading. … [Read more...]
How Much Money Do You Really Need to Retire?
In Part 1 of our retirement guide, we show you how to easily calculate the amount of how much money do you really need to retire, no matter what your age. Determining how much money you need in order to have a decent retirement is one of the most written about topics in personal finance. For every article published there is an opinion or a rule of thumb that is put forth. While these opinions and rules might make for enjoyable reading, they don't help you answer a very simple yet very important … [Read more...]
Are Variable Annuities Right for Small-Business Owners?
If you haven't been pitched this investment before, chances are you will be soon. Besides growing your own company, what is the best investment a small-business owner can make? This is a simple question that lacks a simple answer. For owners who have most or all of their net worth tied up in their business, it’s important to take some of that value and invest it in something that carries a different risk profile. If you are in a stable, low-return business, then using some of that excess … [Read more...]
Why Small Business Owners Fall Prey to Investment Scams
In your search for retirement security, don't fall prey to Investment Scams. Plan ahead and set reasonable expectations for growth. Convicted Ponzi-schemer R. Allen Stanford was sentenced to 110 years in prison recently for perpetrating a financial fraud with estimated losses of $7 billion. The Stanford Financial Group offered “investors” the opportunity to invest large sums of money at a very high interest rate with a 100 percent principal protection guarantee. Not bad, eh? Unfortunately for … [Read more...]