What is a 401k Plan and How Do I Calculate It?

401k plan is an employer-sponsored retirement plan in the U.S and several other countries. It was named after a section of the United States International Revenue Code. Money put into the 401k account is usually deducted from the individuals' taxable income.

The amount is only taxed when withdrawing which happens after the age of 59. If the money is to be withdrawn any earlier, both income and an extra charge of 10% penalty are owed. About 401K earnings It's never too early to begin saving to secure a comfortable retirement.

You should know that the sooner you can start saving and invest in a 401k account, the more you are able to accumulate interest over the year. It is advisable to keep a keen eye on how you are doing by calculating your earnings occasionally. 




This can be helpful since you might need to make changes on your investment based on your tolerance for risk, age and the number of years before you retire. Calculate your earnings One of the best tools you can use to secure a comfortable retirement is a 401K plan.

A 401K plan provides you with 2 very important advantages. First, all your contributions and earnings are never subject to tax. the second advantage is that many employers often provide matching contributions to your account which ranges from 0% to 100% of your personal contributions.

Here is how to calculate your 401k earnings

1. You will need a copy of your most recent 401K statements. These statements are mostly sent quarterly. 

2. Note the initial balance, the amount your employer contributed to your account and the amount of contribution you made. Sum up all these factors to get their total.

3. Subtract the total you got from step 2 above from your end balance. The amount you find is your gain for that period.

4. Divide the amount from step 3 above (Your gain) by the total calculated from step

5. Multiply the result you got by 100 to find the percentage gain for your 401K account for the specific period.

Example: If your initial balance plus total contributions are $15,000 and you got your gain as $500, your percentage gain for that period will be approximately 3.33%. If you have a quarterly statement, then you will multiply the figure by 4. You will get an annual percentage gain of 13.32%.

You can also calculate your income tax on your 401K withdrawal. Here is how to do it and estimate your expected amount.

1. Estimate your annual taxable income. To do this, add up all your taxable income for the year like salaries, wages and interests then subtract any taxes such as standard deductions.

2. Find your tax bracket in the IRS publication 17 based on the estimated taxable income.

3. Multiply the amount in your 401K account with your marginal income tax rate.

4. If you are taking a non-qualified distribution from your federal 401k plan, add a 10% penalty to the amount of your federal taxes. Do not make any exception. All non-qualified distributions are distributions before the age of 59 1/2.

5. Multiply your 401k plan withdrawal amount by your tax rate.

6. Finally, add your federal and taxes with an early withdrawal penalty to get your total taxes on your 401K withdrawal amount.

If you want to research private pension funds and 401k in private on a shared computer, then use miglior VPN to hide all traces of your activity.

3 Ways Bundling Saves Money on What You Already Use

The thought of having to make another phone call and haggle another price might seem overwhelming to you. However, bundling your packages isn’t really haggling. Providers already exist who are ready to make your life easier and your budget more flexible. You aren’t even adding new services or products into your life. Instead, you are taking what you already use and getting a better price.

Cell Phones

If everyone in your household has a separate cell phone plan, you are almost definitely paying too much money. The first step is to agree upon one provider to use. Of course, what you’ll probably want to do is call around or visit the stores to see which entity will provide you with the best deal. 

Providers have all different types of family plans that you can pursue at lower costs. Keep in mind that this option is not necessarily limited only to those individuals with whom you live. A number of people have these types of cell phone plans with extended family members.

Car and Home

When you own a car or a home, you need insurance; if you own both of these entities, you need insurance for both. Having separate plans is likely costing you money. Instead, speak with your car or home insurance provider to see what the price would be if you switch both of the plans to be on the same plan. 



These types of insurance policies often come with their own set of discounts, so ask about any other reductions that apply to. For example, car insurance prices are often lowered for students with good grades or for drivers who are willing to have their driving habits tracked by a device in their cars.

Cable, Internet and Home Phone

These three items practically go together as many people have already taken the step to bundle them. In these modern times, you may wonder what the point of the home phone is. Do keep in mind that in an emergency situation, you may want to have an additional line to use. 

Also, when you’re already bundling the cable and internet together, you’ll likely find that the phone is a truly marginal cost, especially for extra peace of mind at home. Ultimately, however, you could opt for a package that includes cable and internet-only and skips out on the phone element.

As you can see, you aren’t adding new products and services to your life. Instead, you are saving money on items that you are going to use anyway.

Should You Apply for Installment Loans in Your 50’s?

Loans are very helpful in a number of ways. With a loan, you can make a big purchase or start a business when you don’t have enough cash. However, though loans are beneficial, at times it can be difficult to decide whether or not applying for one is a good idea. This article highlights some of the key reasons why applying for an installment loan can be a good idea when you are in your 50’s. 

Premature Pension Money Withdrawal Has a Penalty

With most plans, you will face a huge penalty if you withdraw your money before the maturity date. Therefore, even though you have saved up some money, it may not be a good idea to withdraw it before it is time. You will end up losing a large portion of your savings. 

Also, withdrawing your pension money earlier to buy something or make an investment may mess up your retirement plans. It can be better to apply for a loan instead. Check out the benefits and drawbacks of each when making that decision.

It Can Fuel Your Retirement Goals

Haven’t you achieved your retirement plan yet? Installment loans can sort you out - visit this link to find out more: https://www.achievefinance.com/installment-loans-online. You can take out a loan to grow that business you want to be at peak performance by retirement or make that investment you have always wanted to make in your 50’s. You can also make use of the loan to consolidate your debt and pay it off fast before you reach your 60’s. However, when consolidating debt, evaluate the cost of the new loan well. 




If you are not careful, you may end up paying more. Overall, an installment loan can help you in achieving those dreams you hoped to achieve by retirement. You don’t have to put them off just because you don’t have enough money in your bank account.

Installment Loans Repayments are Flexible

Installment loan repayments are normally spread over a couple of months or even years. It all depends on the lender and the amount of the loan. If you are making a big purchase or financing a business, you can take a loan with repayments spread over 12 months or more. 

With such a payment plan, you will get what you want without straining so much to make huge payments. When making your applications, check the terms given by the lender well. If they are not favorable, you can either negotiate or look for another lender.

An installment loan can help you in achieving a lot when you don’t have enough cash and when your retirement plan has not reached maturity. When applying for an installment loan, start with a plan on how you intend to use the money, the benefits you are getting, and how you intend to pay it back. 

Don’t take out a loan if you don’t have a solid plan. It will only make your life stressful. Also, check if the lender is legit, especially when you are applying for a loan online. Do your best to avoid loans for the over 50s scams.

• Read More: The Payday Loan Checklist

The Payday Loans Checklist

For many Americans, payday loans offer a vital lifeline for times when money is hard. A payday loan can provide a much-needed cash injection for any individual or family in need. If you are hit with an unexpected bill that you can’t pay, but you know that you will soon have wages or other income coming in, a payday loan is an ideal solution.

But before you take on any debt, you need to make sure that you’ve run through this 

checklist.

The Loan Criteria

Before you apply for any loan, you should ensure that you have read and understood all of the terms and conditions attached to it. You should never sign a contract without reading it as a general rule; it’s bad enough that we give big tech companies endless permissions to violate our privacy without thinking about it, but you can’t be so cavalier about the financial arrangements you enter into.

The loan criteria will be easily available on the website of the lender in question. It will set out the exact requirements for being granted a loan. Note that meeting the criteria does not guarantee that you will receive the loan; there will usually be additional credit checks.

Are Payday Loans Right for Your Situation?

Just because you need or want money in a hurry, that doesn’t necessarily mean that you should be looking at payday loans such as these from https://locations.friendlylender.ca/alberta/online-payday-loans-edmonton-no-credit-check. 

Equally, there are situations where a payday loan is a perfect solution, so it is essential to be able to tell which is which.

Payday loans are ideal for people who need a relatively minor cash injection to see them through until they receive an expected payment - usually their wages. They are not well suited for those who are seeking long term funding for a business venture, as payday loans need to be repaid as soon as possible.

Your Current Levels of Debt

You mustn’t take on more debt as a means of paying off a previous debt. This is completely unsustainable. The exception to this is if you are undertaking debt consolidation, whereby you take out a relatively large sum of money that you can pay off at a manageable rate, and use that to clear several smaller debts whose monthly payments together were costing you more.

If you are considering debt consolidation, you should talk it through with a qualified financial advisor beforehand to make sure that it’s definitely the right option for you.

ID & Documents

You will need to provide the payday lender with information about yourself, so that they can transfer the loan to you and, if necessary, chase you up for repayments. Most lenders will also want to carry out a credit check before they lend to you. If you don’t know your credit score, it is worth finding out. If you have a low credit score, there are still lenders who will be able to help you in most cases.

If you think that a payday loan can rescue you from a financial conundrum, make sure that you understand precisely what you’re getting into before you commit. For certain situations, payday loans are an absolute lifesaver. Just don’t take on debt that you can’t handle.

Read More:  Should You Apply for Installment Loans in Your 50's?

Buying a Car Soon? 4 Ways to Prep Your Pocketbook Beforehand

Buying a vehicle is a major investment, and you will need to plan ahead if you want to preserve your finances. With a solid plan in place, you should be able to avoid some of the most common mistakes that car buyers make.

Improve Your Credit Score

Well before you apply for a car loan, you need to take a close look at your credit score. That number is going to have a huge impact on your financing options, and increasing your credit score by just a few points could save you thousands in the coming years. 

The easiest way to boost your credit score is to pay down your balance on a few credit cards. You must also contest any blemishes on your credit report that you believe is incorrect.

Set Aside an Emergency Fund

Even though most modern vehicles are incredibly durable, a breakdown could still occur at any time. While your insurance or the warranty should pay for the repairs eventually, you might need to cover the costs initially. 



Having a small emergency fund will allow you to take care of smaller repairs such as flat tires, cracked windows, or blown fuses. You might also want to set aside a little bit of money for basic maintenance like oil changes and rotating the tires.

Start Researching Auto Loans

Saving up for a down payment is going to help you in the long run, but you will probably still need to take out a loan. Many different organizations offer auto loans, and you should spend some time researching all of the different lenders that you are considering. 

It might be tempting to get your auto loan through the dealership, but those parties rarely offer competitive rates. Getting pre-approved for an auto loan before you get to the dealership is going to make your life much easier.

Ask about Warranties

Most dealerships offer limited warranties on their vehicles, but you might want to think about getting an extended warranty as well. With an extended warranty, you can rest assured that your vehicle is going to be covered if any of the parts are defective or there is a recall for your vehicle. Some warranties even cover major repairs as long as they happen with a certain period of time.

After you have been handed the keys to your new vehicle, you must make sure that you keep it properly maintained. A little bit of maintenance will reduce your risk of major mechanical problems down the road.

Different Types of Trading Methods In Intraday Trading

Intraday trading is all about buying and selling stocks on a given day. The objective of day traders is to see whether their purchased stocks will rise or fall in value during the day's working hours. At the risk of incurring a loss, intraday traders hope to gain higher profits from the stock bought and sold during the time. Through the use of specific intraday trading strategies, day traders hope to add daily wins to their portfolio.

Intraday trading techniques include a wide range of strategies such as candlestick chart, candlestick patterns, momentum strategies, and more. Here are essential day trading strategies that you can employ and try if you are looking to earn profits by trading within one day. That’s why you should try a MT4 demo account from Hantec Markets first – a safe environment to practice and experiment before you commit.

Momentum trading

Through the momentum strategy, investors buy stocks when the price is rising. Some important points to consider when employing the momentum trading strategy include:

• A rare and drastic move in price, driven by a sound catalyst such as sudden earnings growth, successful launch, and full acceptance of new product or service, mergers, and acquisition news, etc.
• Stock growth of 25% to 40%
• Little-known stocks that trade quickly due to a decreased number of shares
• Trends or expert opinions on momentum trading from advanced analytical tools and communication platforms by well-reputed brokers such as Kotak Securities

To ensure that you do not incur significant losses, you must set a stop-loss order just below the decline of the first price.

Scalping strategy

The premise behind the scalping strategy is that small profits during the day add up to a substantial amount at the end of the day. A day trader employing the scalping strategy sets a buy and sell target and adheres to the planned levels. 

This is a swift strategy where you can buy and sell in a matter of seconds or minutes. Expert day traders generally employ the scalping strategy when they are confident to make instant decisions without regret.

Pullback trading strategy

Day traders using the pullback strategy look for stocks that have a demonstrated trend. They supervise this trend until they witness a price decline from the pattern. If an upward trend is observed, the downward price movement -- also known as Pullback -- becomes the entry point for the day traders to begin buying. To understand this strategy and the stock's trend, day traders use technical charts.

Breakout trading

When stock prices rise above the previous day's top resistance price, the breakout trade takes place. However, breakout trading is not as secure as viewing the chart, understanding the resistance, and making a purchase after a breakout. It is crucial to carefully observe the level of stock trading volumes or the number of shares that are being transferred. 

This is because, according to market experts, breakout trades on high volume are more inclined to be sustainable at the recently-changed higher price than the breakouts that have a little volume.

News trading

Stocks generally react to news events. For instance, missed earnings could cause stock prices to plummet; a rise in crude oil prices could affect oil and gas stocks, so on and so forth. By being alert on local and global happenings, you can capitalize on the information.

Conclusion

Intraday trading comes with a high degree of risk and could result in substantial gains or losses in a short timeframe. Although there are no sure shot guarantees that intraday trading can offer you high returns, you can make consistent profits in the long run by learning and applying some of the strategies and techniques mentioned above.