“People told us they spend three to six months, and in some cases up to a year, planning a one-week vacation but not nearly as much time planning for a retirement that could last hopefully for decades.” – Chris Winans, senior vice president, External Affairs at AXA Equitable

Choosing the right funds for your 401(k) is not always the easiest thing to do and most people do not spend enough time understanding their plans in order to get the most out of them.  The truth is, spending a couple of hours each year will benefit you for the rest of your life. 

Researching mutual funds may seem like a daunting task, but these days there are plenty of websites out there to help you get through it.    Most of the websites are free and contain all the information you will need to make the correct choices.   Morningstar, Google Finance will assist you in researching the entire universe of mutual funds.  Also, BrightScope (www.brightscope.com) will give you an assessment of your company’s plan.  BrightScope ranks company’s 401(k) based on fund selection, costs and generosity of the company.   It also compares the plan to the company’s peer group (i.e., its competitors).   

What to look for? Read More→

Retirees are often faced with a big decision when filling out their retirement paperwork – Do I elect the lump sum or the annuity?  The answer may not be so simple.  There are clear benefits to both options.

For some people, the annuity makes sense because they need a steady stream of income.  They may be high spenders, and the annuity will force them to spend within their means.  Some retirees just want the peace of mind that their check will be in the mail each month no matter what is going on in the stock market.  Why is this important?  If you roll over your entire pension into an IRA, you are subjecting these funds to market volatility.  For wealthier retirees, this is probably fine.  They either do not mind some volatility, or have enough money to withstand the market gyrations.

The lump sum option has its advantages, too.  Read More→

In today’s economy, many employers are offering employees incentives to retire early. Before you decide on an early retirement, you should address a number of key questions.

The first question, of course, is if you can really afford to retire. Take a look at Read More→