Boulder City Magazine is a monthly publication full of information about Boulder City and Southern Nevada. Boulder City Magazine features the Boulder City Home Guide, a real estate guide to Boulder City and Southern Nevada.

Money Matters
by Wendell Whitman
Edward Jones

401(k) Loans: The Last Resort?

You may be able to take out a loan from your 401(k). But should you?

If you need the money, and have no other alternatives, you might want to consider a 401(k) loan. It’s your money, and you’ll pay yourself back, with interest.

But 401(k) loans also carry some big drawbacks. First, a loan will reduce your account balance. In addition, if you fail to make payments according to the terms, you may create a taxable distribution that also may be subject to a 10% penalty. And if you have to leave your job, you’re generally required to repay the loan within 60 days.

To avoid being forced to take a 401(k) loan, try to build an emergency fund containing six to twelve months’ worth of living expenses. Keep the money in a liquid account.

Do whatever you can to keep your 401(k) intact — and working to help you achieve the retirement lifestyle you’ve envisioned.

Financial Moves for a Growing Family

When you add a child to your family, it’s an exciting time in your life — and a busy time too. Still, you’ll want to think about making some key financial arrangements to accommodate your new child’s presence.

Here are some suggestions to consider:

First, apply for a Social Security number for your new child.

Next, review all your insurance — health, disability and life — to make sure your new child is properly covered.

Also, look to the future by starting to save for college. You may want to consider a tax-advantaged college savings vehicle, such as a 529 plan.

Finally, update the beneficiary designations on your IRA, 401(k), life insurance and other accounts. And consult with your legal advisor about any other arrangements that might make sense for your situation.  The future is not ours to see, so it pays to be prepared.

Few things awaken the holiday spirit like partaking in a cherished tradition. Traditions come in many shapes and sizes and from a variety of origins. Many are deeply rooted in cultural and religious beliefs while others evolve through habit. Either way, it’s the traditions we follow that prepare us both mentally and spiritually for the holiday season. From our family to yours, we would like to share some treasured family traditions to help foster the holiday spirit.

Should You Take A Pension Buyout?

If you’ve received an offer from your employer to buy out your pension, you’re facing a big decision: Should you accept the lump sum or continue taking your monthly pension payments?

You might be afraid that taking a lump sum would subject you to a big tax bill. But if you roll the money into a traditional IRA, you may be able to avoid paying taxes on those funds until you start your withdrawals.

Consider your estate plans. Pension payments generally end when you and your spouse are gone, but with an IRA, you may still end up with something you can leave behind.

Don’t forget about inflation. If your pension payments aren’t indexed for inflation, they’ll lose purchasing power over time. Within your IRA, you can invest for growth potential, but remember that all investments are subject to some level of risk.

You’re facing a big choice. Get all the facts, and then get some professional help from your financial and tax advisors.

Contact Wendell at Edward Jones

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688 Wells Rd #A
Boulder City, Nevada 89005
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