| Loan from 401(k) has big negatives
Your 401(k) or 403(b) savings are meant for retirement. But if you're scraping together a down payment for a home or the old car is set to expire, you could borrow from your 401(k) for these short-term needs.
Most employers -- 85 percent, according to the Profit Sharing/401k Council of America, a nonprofit association of companies and plan participants -- allow workers to take a 401(k) loan. Roughly a quarter of employees who are eligible to borrow take out a loan.
The main question is whether you should.
The pros
The loans are convenient. There's no credit check. To apply, you often just submit a form online, and the funds are distributed within a week, sometimes in as little as three days, said David Wray, president of the council.
Calculating taxes on stock transactions
Baltimoresun.com's tax-advice column features three experts from the Hunt Valley accounting firm SC&H Group answering questions about preparing your return every Monday until April 16. To be included in the following weeks, please use the form at the right side of this page to submit your questions.
Ted, Fallston: On a direct rollover from a company retirement plan to a 401k at a bank, is the gross distribution amount on the form 1099-R added to the total earnings even though no federal tax is withheld?
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Heritage Capital Credit Corporation First Quarter Update
WILMINGTON, Del.--(BUSINESS WIRE)--Heritage Capital Credit Corporation (OTC:HCPC) is pleased to provide shareholders with a summary update regarding the BCLOC Trust Pool 2007-1. Heritage, through its subsidiary Independent Capital Credit Corporation, is making substantial progress toward completing the due diligence necessary to pre-close commercial loans for delivery to the lender, BCLOC Trust Pool 2007-1, which is expected to fund the loans, once they are all pre-closed in the attorney's escrow title companies. BCLOC Trust Pool 2007-1 is a special purpose entity which currently expects to make in excess of $700 million of commercial asset backed loans. Concurrently, the BCLOC Trust Pool 2007-1 sponsor is in talks with an investment banking firm, which is expecting to finalize the due diligence on the pool of loan documents to be delivered to attorney's title escrow companies for pre-closing, before the BCLOC Trust issues securities to fund the Pool.
Work to keep your interest rate down, your savings rate up
Suze Orman is a financial planner and author best known for her CNBC television program "The Suze Orman Show." She answered reader questions about personal finance on Boston.com last week. Here are excerpts: Q. Hi. I am in my early 30s and own a condo with a hefty mortgage. This does not allow me to contribute to my Roth or 401K anymore. I have $20,000 combined. However my employer contributes 5 percent of my salary automatically. Is this enough for a few years until I get a raise? A. The question should really be: How do you free up more money so that you can have your cake and eat it, too? The best advice I could tell you is the higher your FICO score, the lower your interest rates will be on everything you purchase. The more money you save in interest , the more money you have to eventually put into your retirement account.
Are we saving too much?
A group of economists from the University of Wisconsin think people are socking away too much money for retirement. Based on a study by a trio of authors, the report, "Are Americans Saving 'Optimally' for Retirement?" concluded that Americans are saving too much for retirement... and not having enough fun with their money today. Area investment advisors, however, disagree. "I don't think you could ever save too much for retirement," said First Insurance and Investments financial advisor Shari Wyse. "In general, from things I've read and seen, most people aren't saving enough money for retirement." Phil Recker of Edward Jones Investments of Paulding agreed with Wyse. "You can never be overly prepared when it comes to your financial future," he said.
Borrowing from 401(k) can be easy, but costly
Your 401(k) or 403(b) savings are meant for retirement. But if you're scraping together a down payment for a home or the old car is set to expire, you could borrow from your 401(k) for these short-term needs.
Most employers--85 percent, according to the Profit Sharing/401k Council of America, a non-profit association of companies and plan participants--allow workers to take a 401(k) loan. Roughly a quarter of employees who are eligible to borrow take out a loan.
The main question is whether you should.
-- The pros
The loans are convenient.
There's no credit check. To apply, you often just submit a form online, and the funds are distributed within a week, sometimes in as little as three days, said David Wray, president of the council.
401(k) loan can be easy, costly
Your 401(k) or 403(b) savings are meant for retirement. But if you're scraping together a down payment for a home or the old car is set to expire, you could borrow from your 401(k) for these short-term needs.
Most employers -- 85 percent, according to the Profit Sharing/401k Council of America, a non-profit association of companies and plan participants -- allow workers to take a 401(k) loan. Roughly a quarter of employees who are eligible to borrow take out a loan.
The main question is whether you should.
The pros
-The loans are convenient.
-There's no credit check. To apply, you often just submit a form online, and the funds are distributed within a week, sometimes in as little as three days, said David Wray, president of the council.
Walking Backwards to Work
For the next two weeks, I hereby certify you in walking backwards. Your mission as a current student, should you choose to embrace it, is to serve as an instant tour guide to the prospective members of Cornell's Class of 2011. As an ad hoc ambassador, you will be stopped in the morning on your way to class by parents who ask, “How do you like it here?" Later in the day, sporting their Big Red apparel, these future Cornell families will tour the residence halls, questioning occupants about sleeping, studying and socializing in cozy quarters. And at dinner, you will endure longer than usual lines while these guests taste-test award winning Cornell Dining, breathing a sigh of relief upon seeing the wok at Mongo Grill, but worried at the possibility of their children eating waffles topped with ice cream for breakfast.
UBS Promotes Bourkoff
(Multichannel News) _ UBS Securities cable, satellite and entertainment debt and equity analyst Aryeh Bourkoff has been named vice chairman of UBS Technology, Media & Telecom's Investment Banking unit, effective May 1. Bourkoff, 34, who had held the distinction of being one of the few debt and equity analysts in the media sector, joined UBS in 1999. Prior to that, Bourkoff was the senior cable and satellite high-yield research analyst at CIBC World Markets. He currently serves as head of media and communications sector research with the UBS equity research department. As vice chairman of TMT, Bourkoff will report to UBS Global Head of TMT Investment Banking Jeff Sine. In his new role, Bourkoff will leverage his deep relationships within the TMT sector to cover a broad range of companies, UBS said in a statement.
ICICI Bank volume growth will slow down: Emkay
Kashyap Jhaveri of Emkay Stock Broking feels that that the volume growth of ICICI bank will significantly slow down from the current level in time to come. He feels that in terms of margins, there would be barely any protection on a QoQ comparative basis, but on a YoY basis, there might be some expansion in a couple of banks. According to him State Bank of India, Bank of Baroda and Punjab National Bank are the banks to watch out for. Excerpts from CNBC-TV18's exclusive interview with Kashyap Jhaveri: Q: Would you say that for the sector as a whole both volumes and margins are likely to be under pressure because of the rate hikes, the CRR hikes and the provisioning norms getting tighter? A: I believe that in terms of volumes, we have already started seeing contraction.
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