Work and Save: From Sea to Shining Sea

The problem with living in Washington, D.C., too long is that you start to forget all the exciting action happening outside this politics-crazed town. The truth is, the real action is taking place in state capitols around the country. Today I want to take a moment to highlight some of the victories and innovative solutions happening from Hartford to Olympia to help people save for the future and live independently as they age. I’m lucky enough to have worked for …

Is Your Employer Shortchanging Your 401(k)?

If you’re fortunate enough to get a company match in your 401(k) savings plan, you might be feeling lucky. Unless you’re in a plan that’s being shortchanged by your employer. According to a report from the Department of Labor, nearly 73 percent (or 2,677) of the plans it audited last year made the wrong employer match or made some other error. The upshot? A whopping $423.6 million was restored to workers’ 401(k)s last year. Among the more common mistakes: failing to account …

Take Charge of Your Future With ‘Work and Save’

We all dream of a comfortable retirement - time to relax, travel, learn a new language or take up a hobby. But in these tough economic times, that dream can sometimes feel a little out of reach, especially for those who work for small businesses - because most of them have no access to any type of retirement savings plan at work. In fact, 3 out of 5 households headed by someone 65 or older have no money in retirement savings accounts. …

Is the 4% Retirement Withdrawal Rate Dead?

Many of us are familiar with the “4 percent rule.” That’s the annual retirement savings withdrawal amount many retirees have relied on over the years in an effort to avoid running out of money. Meanwhile, more experts these days are now dismissing it, saying the 4 percent rule no longer works amid today’s economic realities.  J.P. Morgan appears to be the latest investment house to bash the 4 percent rule, or any fixed-rate withdrawal plan, and replace it with another approach. Today the …

Cashing Out Your 401(k) and Living Dangerously

We all know that 401(k) savings plans are designed to help us sock away money for our old age. Increasingly, workers are tapping those funds for loans or cashing out altogether. Two reports released this month suggest that our retirement security could be undermined by our pattern of using those savings to ease our financial stress today. An estimated $6 billion annually seeps out of U.S. 401(k) plans because loans taken against them were not repaid fully, according to a …

Minorities Have Less in Retirement Savings, Survey Finds

After a lifetime of working, millions of Americans, and minority workers in particular, face the prospect of a difficult retirement because they have no access to a 401(k) savings plan. Worse yet, among workers ages 25 to 64, a majority of black and Latino workers (62 percent and 69 percent, respectively) and more than one-third of whites (37 percent) have no retirement savings, according to a study by the nonprofit National Institute on Retirement Security. The report was based on …