401k Loans: Pros and Cons

You might be considering taking out a loan from your 401k. But before you do, you should know the rules and weigh the risks against the benefits. Because not knowing the rules and understanding the risks might hurt you and your retirement in the long-term. Consider this for a Second Most of us simply do not have enough in our 401k where we can afford to borrow. According to Fidelity Investments, the average 401k balance was approximately $91,000. And while that is a lot of money, it won’t cover the average retiree’s health-care costs. Fidelity projects that a 65-year-old couple retiring in 2014 will incur an average of $220,000 in retirement healthcare costs alone. Before you take out that 401k loan, know this: According to the IRS: the maximum amount that the plan can permit as a loan is (1) the greater of $10,000 or 50% of your vested account …

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Will a Government Shutdown Damage the U.S. Economy?

The federal government shut down for the first time in a little more than four years after Republicans and Democrats failed to agree on a last-minute deal to keep funds flowing for another few weeks. The immediate and most visible impact will be in the government’s day-to-day operations. Many departments and offices, like the Department of the Treasury, the Environmental Protection Agency and the Library of Congress, will be closed, and nonessential federal employees across the government would stay home. Families hoping to take their kids to a national park will usually be out of luck in a shutdown, but the Trump administration hopes to keep some of them open. Meanwhile, the men and women who protect our food supply and national security will still be doing their jobs – without pay. But beyond the individual workers and families affected, could a short or lengthy shutdown affect the broader U.S. …

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How to Calculate Your Life Insurance Needs

How to Calculate Your Life Insurance Needs

Life insurance is a wonderful tool to ensure peace of mind and financial stability for your family. It is designed to pay out a certain sum of money to a surviving spouse or family members in the event of someone’s death. This sum can replace lost income and pay off major bills while the family grieves and adjusts to life without their loved one. And it doesn’t only have to go to children, spouses or other family members. You can choose anyone as your life insurance policy’s beneficiary and give anyone you care about financial support in the event of your death. Life insurance isn’t free, though, so it’s important to weigh the cost of premiums against the potential benefit and make sure you aren’t under- or overinsured. Too little coverage will leave family members strapped for cash and too much is a waste of premiums, especially considering you hopefully …

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