Do it or don’t? 401(k) participation

May 23rd, 2006

Here’s what the average 401(k) plan does: Moves a chunk of your paycheck — before you can touch the cash — into a specially designated account. In this account, your money may:

1. be invested in diversified investments such as mutual funds
2. be matched by your employer up to a certain point
3. grow tax free
4. form a foundation for a better retirement
5. provide a safety net in extreme circumstances

Meanwhile, your current contributions lower this year’s taxable income.

Do it or don’t?

Do it again and again.

And if your employer is one of the too many that doesn’t offer any kind of retirement plan, find out why. Or find a new employer.

Enjoy the time off when you’re 70 …

May 19th, 2006

… just don’t get sick.

Treasury Secretary John Snow told a bond investor conference in NY on Friday that the outlook for Medicare — the government’s health care insurance for retirees — is scarier than the prospects for Social Security — the government retirement plan scheduled to go bust around 2037.

“The problem is that we spend too much and we promise the American public more than we can afford,” Snow said.

This is exactly the type of forecast that makes it mandatory for anyone under 40 to take charge of their finances and plan for the future — or risk severely tarnished golden years.

Come on back in the coming weeks and months, and I’ll do what I can to help out on that front.

Welcome to finsmarts.net

May 19th, 2006

Hey. Thanks for stopping by. I’m KW.

Feel free to read “About” for my philosophy about this site.

Beyond that, just know that I’m trying to lend a hand to regular folks trying to navigate the financial side of life. I don’t claim to know everything and my opinions may prove worthless, but I’ll gladly share what I do know and info I pick up along the way.

I make my living as a writer and do a fair amount of work in the financial industry. I do not, however, sell financial products or profit from any of the opinions I express. I intend to be frank and honest and work from facts.

So if you’re looking to get rich quick or determine the hottest sector in Indonesia, sorry. I can’t help you.

But if you’d like some insights that usually don’t filter down to the 20something or 30something sets, come back again.