Category : planning

Diversification Definition - Choosing More Than One

Popular Timberlake Love Song Works as Diversification Definition

We’re back with another edition of Retirement Jargon Sampler! Here’s where we break down all the daunting terminology associated with 401ks through the use of some of America’s favorite tunes. Today’s hit serves as a diversification definition.

You might’ve already seen our latest post about the importance of diversification from Jordan, one of our top-notch advisors. For those of us who aren’t top-notch finance experts, the semantics of “distributing assets” can be damn confusing. So let’s rock our diversification definition.

The Simplest Stance on Diversification? Justin Timberlake’s “What Goes Around Comes Around”

Here’s where Justin Timberlake comes to smash the jargon into pieces. In JT’s tear-jerking 2006 song “What Goes Around Comes Around,” he cries to his lover’s new decision to leave him and play the field:

“Is this the way it’s really going down?
Is this how we say goodbye?
Should’ve known better when you came around (should’ve known better that you were gonna make me cry)
That you were going to make me cry
Now it’s breaking my heart to watch you run around
‘Cause I know that you’re living a lie
That’s okay baby ’cause in time you will find
What goes around, goes around, goes around …”

Diversification Definition Through Poor Justin

All apologies to the ever-heartbroken Justin, but the reality is his lover is a young and hot commodity – she has the freedom to explore a variety of exciting suitors rather than being tied down to one boring person just because he’s a safe bet. After all, seven free dinners a week are better than one. Not this lucky when it comes to dating? Don’t panic! Spread your assets around in another way…through diversifying your funds.

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Redshirt Online 401k Star Trek Bank

Boldly Preparing for the Promising Future

“Knowledge equals profit.”

  • 74th Rule of Acquisition

I’ve been fascinated with the future since I was a kid. I grew up watching reruns of “Star Trek” with my dad, as well as “Star Wars,” “Back to the Future,” and “Logan’s Run.” I even frequently played out scenes from “Battlestar Galactica” (first generation) at recess. (Perhaps I’m dating myself a bit with these references….)

Money, Online 401k Management in the Future

Money didn’t play a huge role in a lot of these futuristic societies, though you did often see Starbuck racking up cubits at the poker table. And Quark, like any good Ferengi, was obsessed with amassing gold-pressed latinum. Pretty much all the stories were about making it through the crisis situation of the moment. (Pesky Klingons and Cylons!)

I wonder if Quark, the owner of Quark’s Bar on Star Trek’s Deep Space Nine space station, ever thought about the future and planned for his golden years? Or was he more focused on that week’s take from the Dabo tables? With a little simple planning and a good 401k analyzer, he could build a nice nest egg and let it blooom into an optimized savings strategy for his future (see what I did there?).

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Tame The Bear Market Will Tank

The Stock Market Will Tank. And That Is OK!

It is true. The stock market will tank. It isn’t a matter of IF but WHEN and HOW MANY times in your lifetime.

The sooner you can accept this and not be surprised by it, you will have joined an elite investor club. Sadly, there are very few members. Even one of history’s most prominent figures couldn’t keep his emotions in check when it came to investing. Now let me be clear about something: I am not calling for or predicting WHEN the market will tank. I just know that it will at some point.

Since the beginning of when they started measuring the aggregate prices of company stock, the market has regularly and periodically reminded investors that when things go up, they always come back down. Fortunately — so far at least — the downs have been temporary.

The Market Will Tank – A Bear Market

In fact, since the conclusion of WWII, the stock market (as measured by the S&P 500 index) has declined by at least 20%, what is typically defined as a Bear Market, a total of 14 times! (Note: there were three periods that were “only” down 19%. Forgive me, but I am still going to include them in the Bear Market list.)

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Savings Crafts For Pinterest

How to Get Savings Crafty With Your BFFF

Your BFFF of 401k savings here (go figure that the company with three OOOs would throw an extra F in the BFF).

Okay. Full disclosure: I’m probably doing this in the reverse order of what I should … but you really should stick around for the fun.

So … a fear fact, a friend to help and then like good friends do … we’re going to go out for some fun.

Fear Fact: We’re Not Saving Enough. Period.

First, the savings fear fact. According to The Associated Press – NORC Center for Public Affairs Research, 66% of Americans would struggle to pull together $1,000 to cover an emergency.

If you’re a homeowner, it’s not hard to imagine $1,000 bill of any kind. And, apparently, this statistic is not isolated to people making less than $50,000 year. Even America’s wealthiest households would be challenged to collect the money without selling something or borrowing it. Of the households earning more than $100,000 a year, 38% say they would have some difficulty coming up with $1,000. 1. 

And this saving struggle affects people’s ability to save for retirement. Our wheelhouse, for sure. When the same Associated Press poll asked people if they will have enough money to retire on time, 54% called the likelihood … dubious.

Why We Care? We’re Your 401ks Best Friend

We know every dollar counts. That’s why we provide education on all manner of savings approaches, not just getting mooola into your 401k.

If you’re a saddled with debt, we outline the common question of whether it’s better to pay off the debt (the student loan variety in this example) or investing in your 401k .

Or, if you have no debt and are eager for a saving strategy, we implore you to try the 10% Savings Trick for retirement and an emergency fund.

But friends should not only be about lending advice but also ready to have some fun.

Some Saving Crafts Fun: The New Piggy Bank

A couple months back, I go into get a haircut and Lauren (she, Michelle or Parker generally cut my hair – I like to diversify) and I get to talking. At first, it’s the typical stylist/client small talk.

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Better Choice than Lottery Ticket

Is That Lottery Ticket Fleecing Your Retirement Savings?

It’s the year 2035. “Choice Chips,” a blooom proprietary form of artificial, individual consciousness to help you make better personal financial decisions – particularly around 401k management – has yet to be invented….

Sadly, We Still Have Fossil Fuels and Paper Lottery Tickets

Joe stopped by the same gas station nearly every day over the last 30 years. It was 7:00 a.m. He was late for work and the attendant was just setting out the coffee for the morning rush. Joe filled his coffee and proceeded to the counter to pay for it.

“That’ll be $9, sweetie.”

Joe pawed through his wallet and yanked out a $20 bill. “Here you go.”

She looked at him, “You want to add the usual Powerball ticket.”

Joe, “You know I do. Today is my lucky day. Here are my numbers, 5, 2, 23, 45, 33 and 12.”

Behind him the door chimes rang and in stepped Linda.

Joe, “Hi Linda, how are you doing?”

“Good Joe! It’s freezing out. Playing the lottery again?”

Linda and Joe had worked for the same company for 30 years. Joe had seniority since he was hired 10 days earlier. They’d both gone to the same high school, but then headed to separate colleges. Four years later they found themselves working at the same company.

Joe, “Sure am. I’ve got to run. I’ve got a meeting in 30 minutes. Maybe I’ll see you later.”

Whose Lottery Numbers Are Better – Joe’s or Linda’s?

Later that night, as Joe sat in front of the TV watching the evening news the Powerball numbers were announced. “And tonight’s winning numbers are 5, 18, 23, 25, 4 and 50.” Somberly Joe thought to himself, “Two out of 6. ‘Well, one of these days I’ll hit the lottery.’”

At that very same moment, in a modest house across town Linda was opening the mail. There were the usual bills and junk mail. But the first thing she opened was her 401k statement.

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