A 401(k) retirement plan is one of the best tools for working people and employees of a company for creating a secure retirement fund. For employees, the advantages are pretty obvious earnings and contributions to the 401(k) are tax deferred and secondly, employers tend to provide matching contributions to the 401(k) account (ranging from 0-100% of employee contributions). Listed below are the best practices for an employee’s 401(k) retirement planner:
Think about a Roth 401(k): Employees can invest taxed money in a Roth 401(k). Hence, those funds aren’t taxed when you withdraw them during retirement. If you’re beginning with a low salary which will rise later, it’s better to take the tax hit before than later. Alternately, if you expect your income to decline, a regular 401(k) will suit you better. The best thing will be if you have access to and can afford and contribute to both types, thus hedging your bets.
Sticking to the plan: It’s easy to create a long-term investment plan and change it frequently. However, the ideal asset allocation strategy is to choose a mix of funds and stick to the plan even if the market falters it will pay off in the long run.
Investment advice fees: Free investment advice never hurts. However, if you’re paying someone a percentage of your portfolio to guide you through the choices and the process, you should understand that if you’re a young investor with limited assets, it’s probably not worth it. Instead, go in for the free guidelines and online calculators that many companies offer, to start with.
Not touching the 401(k) before retirement: Dipping into the 401(k) nest egg is tempting, but do not so it. Not only will you end up paying taxes and extra fees, but you’ll also lose out on possibly compounded returns. Leave your 401(k) alone so that your profits can be reinvested, which will enable your nest egg to grow exponentially year after year.
Rolling over funds when quitting job: If you are quitting your job, it is very tempting to ask the employer to cut you a check for the 401(k) money, but it’ll cost you huge amounts in penalties and taxes. Instead, leave the account as it is to gain maximum from it. However, if you are asked to leave the company’s retirement plan altogether, roll the funds into the 401(k) at your new job or into an IRA. That way, your retirement nest egg continues to grow and is safe.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.