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Articles, Blog Entries and Case Studies

  • Financial Planning in a Complex World

    Financial Planning in a Complex World - Money matters can be a significant source of stress for individuals and their families. News of the recent overwhelming trading losses at JPMorgan (a firm that has heretofore been considered an industry icon in risk management) is a tell-tale reminder of the vagaries of the financial markets. Adding additional stress is the European situation which, again, has cast itself into the limelight as Greece contemplates leaving the EuroZone and Spanish banks are ...  Read More...

  • Prediction Addiction

    Prediction Addiction A COSTLY APPROACH Earlier this year, Harry S. Dent Jr., advisor and author of The Great Depression Ahead, predicted stocks would start to plummet in June. He noted that personal spending is 70% of the economy and that, over time, as baby boomers become elderly, their personal spending will dive.   Read More...

  • "Client Last" Attitude

    "Client Last" Attitude I founded Pauley Financial over 16 years ago because of my passion for helping and serving others. I decided early on that the FeeOnly™ approach of aligning our firm’s interests with that of our clients was best suited for the my personality and, more importantly, best for our clients. We remain steadfast in our belief in this approach, as it ensures that no other financial incentive is provided by any institution to our firm - that we do not receive commissions on the act...  Read More...

  • A Focus on IRAs

    Focus on IRAs Individual Retirement Arrangement is the technical IRS term for what most investors have come to call Individual Retirement Accounts or (“IRAs”). [Note: this article does not address SEP-IRAs – simplified retirement plans for the self-employed.] As the tax deadline of April 17th for 2011’s calendar year contributions approaches, we are writing to ask our clients and friends to focus on this annual opportunity before it passes again. Below are some lesser known attributes and compon...  Read More...

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Articles, Blog Entries and Case Studies Index

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401(k) Resource Center

You and Your 401(k) Retirement Plan

Your 401(k) is a key element of your overall financial plan. Importantly, it enables you to ‘pay yourself first’ by making contribution elections to fund your retirement and other goals directly from your paycheck.

Considerations

  • Decide ‘Roth’ vs. ‘Traditional’ contributions –Traditional 401(k) contributions are made with pre-tax dollars – defers taxes on your contribution and gains until you withdraw funds. ‘Roth’ contributions are made with post-tax dollars – you pay the taxes on your contribution now but pay no tax when you withdraw your contribution or the gains (providing you are at least 59 ½ at the time of withdrawal).
  • Determine your Risk Tolerance - Important factors to consider in assessing your risk tolerance include your goals, your investment time horizon, and your current financial situation. The Investor Profile and Asset Allocation Calculator can help with assessing your risk tolerance and indicate an asset allocation suitable for you.
  • Select Funds for your Asset Allocation. From the fund menu, select and assign percentages to funds in the asset classes which best support your situation. Provided are two approaches:
  • A ‘basic’ core strategy with a limited number of funds which contain multiple asset classes and providing exposure to the bulk of the world’s capital markets.
  • An ‘advanced’ core and satellite strategy delineating a more robust selection of fund choices per asset class.
  • Ensure your beneficiary designations support your estate plan – failure to do so may undermine the estate plan you’ve worked out with your estate planning attorney. Consider checking with your attorney for direction.

Planning and Investing Basics

Planning and Investing: Digging Deeper

Calculators