John Wiley - 401(k)S & Iras for Dummies

401(k)s & IRAs For Dummies

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John Wiley & Sons, Inc.

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Copyright 2022 by John Wiley & Sons, Inc., Hoboken, New Jersey

Published by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

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Library of Congress Control Number: 2021946256

ISBN 978-1-119-81724-6 (pbk); ISBN 978-1-119-8725-3 (ebk); ISBN 978-1-119-81726-0 (ebk)

1. Chapter 2
2. Chapter 4
3. Chapter 11
4. Chapter 12
5. Chapter 13
6. Chapter 14
7. Chapter 16
8. Chapter 17
9. Chapter 18
10. Chapter 20

1. Chapter 4
2. Chapter 5
3. Chapter 11
4. Chapter 12
5. Chapter 13
6. Chapter 14

Bumper stickers Id love to see: Id Rather Be Managing My 401(k) and Honk if you love your IRA. Made you snicker? I agree. Most of us have better things to do with our time than planning for retirement. You probably wouldnt rather be managing your retirement accounts youd rather take in a movie, watch a ball game, or pursue your favorite hobby. But its hard to enjoy yourself if youre plagued by a nagging worry that you could end up destitute in retirement. Spending some time thinking about and planning for your retirement can pay you big dividends down the road.

The concept of retirement has changed dramatically over the last decade or so. Social Security seems less than secure, and it was never meant to cover all your retirement needs, anyway. Most people cant count on receiving a traditional fixed pension from their employer. The burden of retirement planning falls squarely on your shoulders at a time when youre living longer and need more money to finance retirement.

I have good news for you. Although you do have to take responsibility for your own retirement saving, you dont have to let retirement planning take over your life. Investing a bit of time now in ways I explain in this book should enable you to eventually sit back and relax.

There are lots of places where you can find basic information about all the different types of 401(k) and IRA plans, but finding insight into which one may be best for your business is challenging. I include that in this book. I also include ways I have found to utilize these plans to provide benefits comparable to a 401(k) without all the fees and complications of a 401(k).

Dont let the title fool you. 401(k)s and IRAs For Dummies is a useful book that explains the basic rules and even some obscure ones about various retirement account options. I include information thats completely up to date, including new rules that went into effect in 2020 with the enactment of the Secure Act, which adds some benefits to 401(k) plan participants. The CARES act was passed in 2020 in response to the COVID-19 crisis.

This book explains essential 401(k) and IRA rules in easy-to-understand language so that you can manage your retirement accounts in a way that leaves you better off in the long run.

This book also explains how to manage risk in your investments and minimize the chances of big losses.

I give examples to show why you should start saving for retirement as soon as you can, because the longer your money stays in your 401(k) and IRA, the bigger your potential nest egg. In fact, if you take only one message away from this book, I hope that its Save as much as you can as early as you can, and invest it sensibly.

I explain basic principles of long-term investing to help you decide which investment options are right for you. I also give you guidelines to figure out how much you need to save for retirement, and then, after you retire, how to manage withdrawals from your accounts so that your money can last. These are important concepts for 401(k) and IRA investors, but theyre equally important for everyone else.