401(k) Plans - Safe harbor,tax liability at distribution,Catch-up Contributions,withdraw,hardship distribution,Loan,benefits,retirement Investment asset allocation advise
investment stock trading
Skip Navigation Links
    •   About US
    Market Activity
    World Indices
    Market Watch
    Customer Service
    Learning Center
    Economic Event

Join Now for successful breakout and penny stock investing | stock trading | Day Trading

Advertise 2

Why you need to participate | invest in 401k plan?

Why you need to participate | invest in 401k plan? The pie chart shows the importance of saving now toward a retirement | 401k fund. Not only are Social Security benefits less significant, but the sums are diminishing and the age at which you can begin to receive benefits is higher.

Social Security represents approximately 39% of the average retiree’s income, according to the Social Security Administration.
Traditional pensions are estimated to supply less than 19% of retirement needs, according to the Social Security Administration (2004; most recent report published).

All other need of money at the time of retirement you have to mange. This is the reality!!!!!!!

Also, as you begin thinking about how much you’ll need for a comfortable retirement, you may be started to learn the impact of inflation. At an average inflation rate of 3%, your cost of living would double every 24 years.

You’ll also have to consider the likelihood of increased medical costs and health insurance as you grow older. The average nursing home stay, for instance, now costs more than $75,000 a year and could rise to over $150,000 per year by 2030, assuming an annual inflation rate of 3%.

Traditional pensions are estimated to supply less than 19% of retirement needs, according to the Social Security Administration (2004; most recent report published).

Add that to the 39% or so a year you might expect from Social Security, and you’ll probably still fall far short of your goal.

Fortunately, you have some Options. First is the power of compounding, which takes advantage of time. Tax deferral is another Option. Using investment vehicles such as 401(k) plans or individual retirement accounts (IRAs), you can put off paying taxes on your earnings until you are retired and potentially in a lower tax bracket. Meanwhile, your contributions may be pretax or tax deductible, helping reduce current tax bills.

The more time you have until retirement, the more fortunate you may be. Delaying just months — never mind years — can significantly reduce your results.

By starting early, investing systematically, and benefiting from the potential of compounding and tax deferral like 401k plan, you may in better position at retirement age.

The rising cost of living means you need to plan on an annual retirement income that could be substantially higher than what you spend now.

You may have higher expenses in some things such as medical care, but lower expenses in others.

Retirement income may be made up of pension benefits, Social Security benefits, personal savings like 401k and investments, and income from part-time work.

401k investment is the best choise at present time because your saving start to grow at investment by companys vested parts, tax free earning up to withrow time means you can use tax money to make money and investment return so without loosing any time just start to invest in 401k plan.

Related reading

Some point that affect your retirement

Archive 401K fund selection recommendations


Home for ۩ Day Trading | Breakout Stock trading system | Penny Stock Investing | Market Research

Contact Us | Affiliate | Disclaimer | FeedBack | Help | Site Map | RSS  RSS

All Rights Reserved © 2000-2006 Flyingstock.com
This Service is solely an information service provided by the an automated software tool and are for entertainment purposes only and are provided on an "as is" basis and without warranties of any kind, either express or implied. Flyingstock.com, its licensors, content providers, employees, officers and directors (Called the Company)does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the free service contained herein or distributed from this site are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the free service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a broker or other investment professional prior to making any material investment decision. Both short-term and long-term investing have potential rewards, as well as large potential risks. Penny stock trading or day trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the free service assumes the entire cost and risk of any investing or stock trading they choose to undertake. penny stock are the most risky investment so invest wisely. It should be understood that there is no guarantee that past performance of our stock trading system or day trading Strategy will be indicative of future results.