Does C.D. Now Stand For Crummy Deal?

One of the biggest frustrations I have heard over the past couple of years is what do to with your cash.  Most checking accounts that people have to day do not bear any interest at all.    In addition, the majority of savings and money market accounts will pay somewhere between .25% and .75% unless you have landed a teaser rate at the bank.    If you don’t pay attention closely to it, your cash at the brokerage house (Schwab, Fidelity) may actually be earning .01% on a yearly basis.   Even with the teaser rates from small and big banks alike, certificate of deposits which were one of the cash go to instruments for many families have now withered away to all time lows as well.    Even if you park the money away for 3 to 5 years, you are still well behind inflation after the interest you earn.   This means it is more important than ever that you figure out how ...

Read More →

Does Your 401(k) Offer An “In Service” Distribution?

For Generation X clients, the majority of their retirement savings are in the company 401(k).   While you do have a multitude of options of what you can do with your 401(k) if you leave your employer, often people feel like they are stuck if they stay with the same employer for a long period of time.  This is especially true with larger companies as most of those plans offer a limited number of investment choices and several target retirement funds.     I’m amazed that many people I sit down have never heard of whether their company offers an in service withdrawal or an in service distribution which can give them greater investment control of their 401(k) assets.    Since we have had two major market meltdowns over the past 12 years, 401(k)’s offer limited power to help you risk mitigate against a market crash.   This is why you need ask your employer today, do we offer an in service distribution? So, just ...

Read More →