Personal Pension Radio

Most people are unaware that the 401k is only 35 years old.  It was created in 1978 and the first plan was not put in place until 1980. 

There may be a new 401(k) myth on the horizon, if President Obama gets his way with the tax-qualified retirement accounts of Americans. When the President revealed his 2016 fiscal year budget, it included a proposal to place a limit on the amount of money workers can contribute to their tax-favored retirement accounts; this includes their IRAs, 401(k) accounts and private pensions.

Perhaps it’s because of public misinformation. There is a widely held belief that any policy placing restrictions on investments is designed to hurt only the wealthiest Americans – the so-called “one percent.” In fact, one of the many misconceptions of the 401(k) floating around is that it is only available to high earners. If you are a middle class earner with a 401(k), you know that isn’t true. If a policy that limits how much workers can contribute to their 401(k) accounts comes to fruition, it would actually hurt the middle class more than anyone else.

Just like Social Security before them, IRA and 401(k) accounts are subject to rule changes that the government assured us wouldn't happen. Decades ago, Americans believed their Social Security accounts had minimal tax implications – but in 2015, as much as 85 percent of Social Security income can be taxed. In 1978, Americans were told 401(k) accounts were a tax-favored alternative to living on Social Security – and now, that is on its way to becoming one of the growing misconceptions of the 401(k).

Direct download: 20_PPR_20__History__Cautionary_Tale.mp3
Category:Personal Finance -- posted at: 7:58am PDT

Award winning author Jonathan Clements joins Kraig Strom talk about his critically acclaimed new book - Money Guide 2015.

Jonathan Clements is a financial writer based just outside New York City. He's the author of the award-winning Jonathan Clements Money Guide 2015, and also writes a weekly column for The Wall Street Journal that appears on Saturdays. 

This is undoubtedly the largest writing project Jonathan Clements has have ever taken on: creating a comprehensive financial guide. The 2015 edition of the Jonathan Clements Money Guide is now available, packed with punchy, plain English answers to your most pressing financial questions.

Here’s what you’ll find in the Money Guide:

  • Help with retirement, college, home buying, estate planning and more
  • Indispensable information delivered in short, easy-to-understand sections
  • Simple strategies to improve every aspect of your financial life
  • My outspoken views on personal finance
  • The latest facts and figures on the economy and markets
  • Tax information for 2014 and 2015
  • Intriguing statistics on how the typical American is faring financially

Maximum retirement income is not found in a single product.  Achieving your ideal retirement lifestyle takes planning and a strategy that involves the proper balance between your financial assets.  Our goal at Personal Pension Radio is to help you complete your financial journey and live the retirement you dream of.

Direct download: 19_PPR_19__Money_Guide_2015_with_Jon.mp3
Category:Personal Finance -- posted at: 6:30am PDT

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