Sep 17

Roth vs Trad 401(k)

investments, retirement, savings, taxes Add Comment (0)

There are two kinds of employer sponsored defined contribution retirement accounts: the Roth and traditional 401(k). These two options are analogous to the Roth and Traditional IRA accounts:

With a Roth 401(k), taxes are paid on the contribution, and withdrawals in retirement are tax free.
With a traditional 401(k), contributions are not taxed, but withdrawals in retirement [...]

Sep 9

Guaranteed Returns

investments, retirement Add Comment (2)

This week I am writing about conversations I had with my extended family about finances. Today, I turn to a conversation with my father.

Since my father retired and rolled over his 401(k), my parents were considering hiring a financial advisor. Fidelity offered an advisor for 1% of assets under management. This 1% would be in [...]