Do you have any idea how much you need to save each week if you want to retire with $100,000, or maybe $1-million?
Workers at many companies can get answers to that kind of question right on the job. In fact, if your company offers a 401(k) retirement savings plan, there is a good chance it also offers at least a little help planning for retirement and maybe even selecting investments.
Before deciding how much to save each payday next year, ask what kind of help is available. You are most likely to be offered brochures and workbooks or a chance to sign up for a seminar. In addition, many companies give employees access to online planning tools and advice. One popular tool, Financial Engines, has Web-based software that shows how likely it is that you will reach your retirement goals. You can run "what if" scenarios to show the impact of bumping up your savings rate or investing more or less aggressively.
Some companies, including TECO Energy in Tampa, make available one-on-one counseling with an investment adviser. Representatives of Edward Jones, a St. Louis brokerage, conduct group seminars and meet individually with employees at 50 TECO locations in six states. There is no cost to TECO or to the employee. The payoff for Jones comes when some of those employees sign on as clients.
TECO said it established the relationship two years ago to help employees make decisions about retirement plan options. Wende Karchmer, manager of retirement and savings plans, said feedback on the voluntary arrangement has all been positive.
Whether advice is delivered in person, online or in writing, it has to be weighed against your personal tolerance for risk. A report last year by the Pension Research Council at the University of Pennsylvania concluded that the advice that retirement plan participants get is too heavily weighted toward stocks. If you are conservative, you may want to dial down the suggested stock percentage and start saving more to reach your retirement goals.
Q. When I was a college student with no job and no income, I got six credit cards, which I took to their limits. Since graduating, I have paid off my debt, but my irresponsibility with these cards has put me in what I call credit card jail. Learning my lesson, I have since become very responsible, making payments on time, paying more than the minimum amount and even paying before the due date, but this doesn't seem to help my credit at all. Are there things I can do to improve my credit until the statute of limitations runs out on these negative items? Is it possible to write a statement to add to my credit report that reflects how I got into this mess?
The good news is that credit scoring methods give the most weight to your recent credit history. Even though your late and missed payments stay on your record for seven years, being responsible eventually will pay off. Another way to improve your credit is to pay down your balances so they are less than half your available credit; lower is better.
If you haven't already done so, get copies of your credit reports and check them for inaccuracies. Ask the credit bureau to correct any mistakes. If you have positive credit accounts that don't show up on your report, ask the credit bureaus to add them.
You can ask that a letter of explanation (up to 100 words) be added to your file. However, some credit experts don't think this does much good. For lenders who take the trouble to read a statement, "I had a heart attack and was out of work for six months" probably would carry more weight than "I was a naive college student."
Q. Has the Florida intangibles tax been phased out?
No, but fewer people will have to file in 2004. The tax is based on the Jan. 1 value of investment assets such as stocks, bonds and mutual funds. It does not apply to retirement plans, bank accounts, insurance products, U.S. government bonds or Florida municipal bonds. Next year, each person will be entitled to a $250,000 exemption, or $500,000 for a married couple. That's up from $20,000 per person. The deadline for filing is June 30. Contact the Florida Department of Revenue for more information.
- Helen Huntley writes about investing and markets for the Times. If you have a question about investments or personal finance, send it to On Money. We'll try to answer those we think are of greatest reader interest. All questions must be submitted in writing, but readers' names will not be published. Send questions to Helen Huntley, Times, P.O. Box 1121, St. Petersburg, FL 33731.
