When you leave a job, you're probably focused on cleaning out your desk and saying good-bye to work friends. But taking care of your 401(k) retirement plan at the soon-to-be-former employer should also be high on your to-do list so that you can handle that money responsibly and avoid unnecessary taxes and penalties.
Generation Xers are known for a lot of things. They're cynical, yet entrepreneurial, individualistic, and super tech-savvy. But some fear that, soon, they'll be known for something else – their total and complete lack of planning and preparation for retirement. Here's what you need to know.
Historically, most people didn't even think about their retirement until they were practically knocking on its door. But then again, there was a time when most people earned a living working the land, and the chances were pretty good that their children would assume their duties as they aged. There was also a time, more recently, when pensions dominated professionals' visions of retirement, rather than the 401Ks of today, and the cost of living was far less. Not to mention, the cost of health insurance....
Retirement plans such as employer-sponsored 401(k) plans are designed to help people save for retirement by offering tax benefits and employer matching contributions. Make the most of them.