Here’s How Your 401(k) Is About To Change
There are some changes on the horizon for your 401(k)s—shout out, Congress for keeping things fresh. Here’s what you need to know and when it’s happening.
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George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.
This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you’re seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark….(read more)
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If you have a 401(k) retirement plan, get ready for some big changes that could potentially have a significant impact on your savings. The U.S. Department of Labor recently announced new rules aimed at improving the transparency and efficiency of 401(k) plans, which are a popular way for many Americans to save for retirement.
One of the major changes coming to 401(k) plans is the requirement for investment providers to disclose all fees and charges in a clear and easy-to-understand format. This is important because high fees can eat into your retirement savings over time, so knowing exactly what you’re paying for is crucial for making informed decisions about your investments.
Another key change is the introduction of a new “fiduciary rule” that requires financial advisors to act in the best interests of their clients when providing investment advice. This means that advisors must prioritize your financial well-being over their own financial gain, which could help protect you from potentially harmful conflicts of interest.
Additionally, the new rules also aim to make it easier for small businesses to offer 401(k) plans to their employees by streamlining the administrative process and reducing costs. This could help more workers access retirement savings benefits through their employers, which is crucial given that many Americans are not saving enough for retirement.
Overall, these changes are intended to make 401(k) plans more transparent, cost-effective, and accessible for both employers and employees. By empowering workers to make more informed decisions about their retirement savings and ensuring that financial advisors act in their best interests, the hope is that these new rules will ultimately help more Americans achieve a financially secure retirement.
If you have a 401(k) plan, be sure to stay informed about these changes and how they may affect your retirement savings. Consider reviewing your investment options, fees, and financial advisors to ensure that you are making the most of your retirement savings opportunities. By taking an active role in managing your 401(k), you can better prepare for a secure financial future in retirement.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
“I’ll just get gas in the morning…” I took that bit personally.
I am 53 years old and consider myself to be a high earner. My job provides me the option to contribute the employer contributions to my Roth 401k. Should I do that or should I continue to direct that to my Traditional 401k ahead of retirement?
I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Although I’m not proud of filing for bankruptcy, I did have to do that in 2011 and I was able to exempt my 401(k) and my pension when I did.
THANKS. Just what I needed to watch. My wife and I got a 400k HELOC from our 780k primary home which we are still paying a mortgage for. I want to only use 200k for this new duplex down payment. I realized that the secret to making millions is making better investments and staying out of debt.
I'm grateful to GOD for the internet space, we were able to join the credit repair program, we payed up our debt and now we are back to being the administrators of our farming business and our own properties, as well as small pensions.
1 am almost 56, my wife is 52. We have started saving for retirement from the farm and maybe live off rental income, I would really appreciate it if you would do a video on how to earn using Airbnb and retire comfortably.
George, your puns are terrible and I love them! You're making me giggle and choke on my dinner!! And thanks for explaining the the new 401k rules! It's still a little fuzzy to me, but maybe that's because I was choking on my dinner?
I wouldn't unenroll everything. At the very least, make the company match amount. That has a higher and more immediate return than debt interest.
Is the 15% contribution with or without the employer contribution?
Could you just get to the point and stop with complaining about the government?
What if I switched jobs? How does like switching or still contributing to my 401k change or work?
LOL please forgive my ignorance I’m just getting serious about bettering my personal finances and I wanna learn as much as I can! Please and thank you for any help you can give me
Not good advice to unenroll in the 401k if you have debt. At least get the match. That is a 100% return. I doubt anyone has debt at 100% interest.
Effective personal finance management is more important than the amount of money saved. Thereby, It's suggested to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Nice content. THIS used to be one of my most watched YT channels sadly, it's been a while since i visited it has been a very rough year I am experiencing one of the toughest phases my life. Lost a fortune lnvesting in emerging companies. Hopeful, for a turnaround.
You failed to mention that Roth IRAs can also serve as an emergency fund given that contributions can be withdrawn, without penalty. Granted, it largely works when you've maxed out contributions for several years and the earnings become an equal if not larger portion of the Roth IRA. I'm not saying it's a primary but it makes an excellent backup should the emergency fund begin to run short. It isn't possible with a traditional IRA nor does it replace an emergency fund but it makes a nice backup if things really get wonky.
Match first, HSA second, Roth IRA third, then pad your 401k as you can. It's that simple.
Not entertaining .. please be to the point.