There's one market correlation you can count on: When the markets plummet, calls to 401(k) plan providers go up.If you're like a lot of people, you're also reaching for the phone — or just looking for reassurance that your nest egg will still be OK.Moyo Studio | E+ | Getty ImagesMonday's eye-popping market drop is no exception. Trade war fears sent the Dow Jones Industrial Average down by more than 750 points on Monday. Meanwhile, the S&P 500 and Nasdaq Composite each entered their sixth consecutive day of losses.Despite the scary headlines, financial advisors have one message for you: Don't panic. "Most people should do what's good for them, agnostic of what the market is doing," said Aaron Pottichen, senior vice president at Alliant Retirement Consulting in Austin, Texas. "No one can
Planning to reinvest those pesky required withdrawals from your individual retirement account or 401(k) plan because you don't need the money?Under the Secure Act, a bill pending in Congress right now that aims to improve the nation's retirement savings, you'd have to start taking withdrawals from your IRA (and most other retirement accounts) at age 72 instead of 70 ½.The kicker: Due to the reduced time that the reinvested cash would have to grow, its value over time could be smaller under the proposed change than under current law.Allocating expenses into needs, goals and aspirations can help provide a better framework for managing your cash flow and living comfortably.Pascal Broze | Getty Images "You'd have more money in your IRA but less in the reinvested account," said certified financ
DNY59 | iStock | 360 | Getty ImagesTo save, or not to save? That question might not be yours to answer.A growing number of companies now direct money from their employees' paychecks to a retirement account — even after a worker has said "no, thanks."Auto-enrollment into retirement plans, of course, is not new. The practice has taken off in the workplace since President George W. Bush signed the Pension Protection Act in 2006, which said employers don't need their workers' permission to sign them up for the company retirement plan.The results have been powerful: More than 90% of employees participate in automatic-enrollment plans, compared with less than 60% in voluntary plans. (The most common default savings rate is 3% of a worker's salary.)But while many employers auto-enroll their empl
If you're looking in your 401(k) plan for investments that back clean energy or gender and racial diversity, you may have a tough time finding them. A recent survey from Natixis Investment Managers finds that many workers would be more likely to save for retirement if their employer-sponsored retirement plan offered socially conscious investments. Of the 1,000 workers surveyed, 61% of employees said they would start saving or increase their investments if that also meant doing social good. Millennials, 66%, were even more likely to agree with that statement. ...
President Donald Trump has called for a sweeping look at regulation of the energy industry — and that includes investments in retirement plans. In an executive order issued last week, Trump called for the Department of Labor to complete a review of energy investment trends and the fiduciary responsibilities tied to proxy voting to determine whether "guidance should be rescinded, replaced or modified." That will likely mean greater scrutiny for environmental, social and governance, or ESG, funds that have become available in retirement plans for some workers.