Most employers offer a 401(k) plan as part of their employee benefits package. This defined contribution plan helps employees save for retirement.   Many employers offer matching 401(k) contributions up to a certain amount or percentage to encourage employees to save for retirement. The money employees have to live on in later years depends on the amount contributed and the performance of the underlying investments.   The following are the five main types of 401(k) plans.   1

A fixed annuity is a stable, long-term investment product offering guaranteed returns and predictable payouts. Insurance companies sell the contracts as stable options for retirement savings.   Tax-deferred growth and protection from market volatility are attractive features of a fixed annuity. However, the investment product lacks inflation protection unless riders are added, and the surrender charges for early withdrawals limit liquidity.   Learning about the pros and cons

If you are changing jobs or nearing retirement, understanding your options for your 401(k) account is essential. Controlling where your money is provides peace of mind.   Whether you withdraw your money or roll it into another retirement account impacts your financial goals and tax obligations. The following information can help guide your decision.   Option 1: Cash Out Your 401(k) Account Cashing out your 401(k) account typically is not recommended: You can ask your former e

Like most employees, you might have a 401(k) account through your employer. This retirement plan helps you save money for your later...

During my time as a licensed financial coach, I started my freelance writing business. I taught myself to write grant proposals,...

When I was in my 20s, I did not know much about investing. Fortunately, I met a licensed financial coach who educated me on financial...