General Finance

The Successful Transition Series looks at three major life transitions: retirement, entrepreneurship and career change. This week, we look at career change and some of the financial challenges that come with this transition.

The Successful Transition Series looks at three major life transitions: retirement, entrepreneurship and career change. This week, we examine entrepreneurship and some of the financial goals made by entrepreneurs that helped make them successful.

The 21st Century looks to be the century of entrepreneurship. In 2014, Babson University found that between 2000 and 2007, the number of new business start-ups increased by 17% each year. Their survey also noted that 2014 saw the most entrepreneurial activity in 16 years.

Jumping in to the risk of self-employment is a daunting process. Good financial planning has been shown to be one of the effective tools of a successful transition to being your own boss. However, there are still important considerations for your personal financial health. Below are 3 things to remember

A new marriage is an exciting event. If the marriage includes blending a family, this can be even more exciting – the more the merrier in some cases, right?

Last week, we discussed various types of popular retirement accounts. This week, we tackle more as a way for you to compare and contrast what’s out there and how each plan could potentially make your golden years comfortable and enjoyable. Here are three more popular types of retirement accounts for you to consider. 

401(k), 403(b), TSP

These examples of employer-offered retirement savings accounts are the accounts most people are already familiar with. These are called “defined contribution plans,” and they are primarily funded by you.  Most employers allow you to withhold some of your paycheck and stash it away in one of these accounts, and many employers offer to match some of the savings. These accounts provide for investment options that you choose, with the idea of growing the account beyond what has been put into it. If you leave your job, you can roll over your account contributions into a new 401(k) or 403(b), or you can roll them over into an IRA. In some cases, the employer match must be “vested” over time and may be lost if the time period is not met. What’s the difference between these types of accounts? 401(k)s are usually offered by for-profit companies, while most nonprofit companies use a 403(b), including schools, hospitals, and some governments. Some employers are also offering a Roth 401(k) option, which provides for deferral of after-tax salary and grows tax-free. The TSP (Thrift Savings Plan) is offered by the federal government to its employees, including the military. 2016 contributions allowed are $18,000 ($24,000 over age 50).

Most people will agree that retirement funds aren’t what they used to be. Gone are the days of working at one company for 30 years, getting the gold watch and retiring on a cushy pension. Now it’s primarily up to you, the employee, to save for your later years, which can prove challenging. Fortunately, there are many different ways to save money for retirement. Here are 3 popular options.

Getting a large amount of money dropped in your lap sounds like a good problem to have. Whether you’ve inherited a large sum of money, received a big insurance settlement, won the lottery or sold a home or business, a large amount of unexpected cash can create issues if you don’t check yourself right away. Here is what happens to many people when they receive a financial windfall and what you can do if you find yourself in this situation.

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