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Is it dangerous to invest in a prudential 401k?
When considering investing in for your retirement, you should really take independent financial advice. However Prudential are huge organisation that has been established a long time and is probably as good a place to invest as any other company offering 401k policies.
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If a company files for bankruptcy do its employees and former employees lose 401k investments managed by that company?
No, absolutely not. Those funds are actually invested in other things....so, unless you had your 401 invested in the stock of this company (as many Enron people did) - w…hich stock has likely become essesntialy worthless...your invested amounts are secure as an investment in todays world can be.
As corroborated by the BBB website, the rating for Prudential Property is an A+ out of a scale that ranges from A+ to F. This is partially due to their effective handling of c…ustomer complaints, according to the BBB website.
your retirement fund It is a type of defined contribution retirement plan offered by many employers. The employee decides how much he wishes to contribute, a…nd the employer may or may not make a matching contribution.
A 401(k) plan is a retirement account to which employee and employer contribute, on which taxes are deferred until withdrawal, and for which the employee selects the types of …investments.However,the 401(k) plan has many ups and downs and many regulations. Read more here http://401ksource.info and http://personalfinance401k.weebly.com
Prudential is just one company that offers 401k services. You should invest in a 401k to ensure you have retirement income, and you should choose Prudential if their rates and… services are the best for your personal situation.
Prudential Retirement is a product, offered by Prudential Bank, to people who are about to retire and want to plan ahead. It looks at what investments could be made, pensions …and other financial issues affected by retirement.
A 401k Plan generally is offered to employees by their employer. If you are self-employed, you may start a 401k or other retirement plan.
what is prudential?
prudential regulation is An appropriate legal framework for financial operations is a significant contributor to preventing or minimising financial sector problems. Evid…ence shows that the absence of prudential regulations in some key areas can lead to bank failures and systemic instability, while establishing sound, clear and easily monitored rules for financial activities both encourages managers to run their institutions better and facilitates the work of supervisors. A major weakness of some financial systems is the fact that various financial institutions, especially cooperatives and intermediaries in rural areas, operate completely outside prudential regulations. Some countries have one single general banking law, which tries to assemble all regulations, but in many countries the operational issues are left to statutory notes, circulars or even simply the routine decisions of the supervisory institution. Various other laws can have an impact on the operation of financial institutions, e.g. company laws, securities laws, debt recovery laws and laws on liquidation and bankruptcy.
What are the prudential investment guidelines used in retirement planning regulationn 28 of the pension funds act?
In a nutshell it restricts investment companies from investing your hard earned cash (viz. pensions) in risky portfolios. At this stage the restrictions on offshore is 20% and… property, and equities have certain restrictions as well. This was law in 1996 but was never enforced. After 2005 it became enforced
Prudential value also known as Well-being, is named such to be distinguished from, for example, aesthetic value or moral value. What marks it out is the notion of 'good for'. …The serenity of a Vermeer painting, for example, is a kind of goodness, but it is not 'good for' the painting. It may be good for us to contemplate such serenity, but contemplating serenity is not the same as the serenity itself. Likewise, my giving money to a development charity may have moral value, that is, be morally good. And the effects of my donation may be good for others. But it remains an open question whether my being morally good is good for me; and, if it is, its being good for me is still conceptually distinct from its being morally good. Reference: Stanford Encyclopedia of Philosophy
Roth and 401k plans are separate investment vehicles. Roth IRA is offered to individuals who qualify. The Roth IRA has yearly contribution limits, and offers no present tax tr…eatment. The benefit is in the end where the withdrawals are all tax-free (see age requirements for withdrawals without penalty). If a company offers a 401k as a benefit to it's employees, the contributions are usually "pre-tax." Therefore saving the employee immediate tax savings. Also inquire whether the company matches the employee's contributions, which is a great benefit. Both plans are ideal for a twenty year old to start saving for future retirement needs. You have to compare the tax differences and whether a matching contibution is offered. It is possible to contibute to both. Once again the IRS has income limits to qualify. Create another investment strategy to start saving for your first home.
NO. The taxable amount of any distributions from your 401K will be added to all of your worldwide gross income and be subject to the federal income tax at your marginal tax ra…te. It will not make any difference what you use the funds for because the contributions amount to the 401K were NEVER subject to income tax in the year that they were made as a part of your deferred compensation plan.
because your participation in social security is mandatory, not optional ans And, as you have to ask, you don't understand what the many differences are in any way - lik…e to start that the SS you pay is used to provide the benefits for those collecting it now....and yours would come from those working when you aren't (Current payors support current recipients.... there isn't an SS savings account with your name on it...growing and dependent on the amount, and investment return on the amount you put in...as in a 401k). Simply, SS is a societial benefit, not YOUR personal one. And you want to be trusted to understand basic financial systems, invest wisely, in your 401K...so you don't lose it and need support, of the type that SS would provide? Many people have lost their 401k...and having SS, well it doesn't stp you from having one. Have you maxed yours out yet? OK...YOU wouldn't invest in say, Enron (or Delta, or United, or Magellan Mutual Fund, ...or...or...) - even though they had a great return for many years, (and if it was your employer, everything else you had was involved there too...and you might even think you understood everything from an insiders point of view)...Ooops..thousands did...no 100s of thousands...did just that...and lost almost everything. How about any other stock, or bond, that could go down...(which they can, because you understand these things)....and you would never withdraw it for some other reason...or get swindled out of it?....I mean, your just the best of money managers...and you'll certainly do it, all the time, every year. Because you'll need it all the time, every day of every year, when you don't work. And you'll do it enough and fast enough, that if you become disabled or die early ---- which are covered by those SS benefits that will pay you and your family...you'll take care of that with private insurance too...and of course it will come before anything else....because if it doesn't ME (and everyone else) WILL HAVE TO PAY FOR YOU. (Again, for those too simple to understand...the wrong one of the above actions would mean there would be a loss of the investment...and nothing for the investor to use in retirement or his family upon early death or disability. And society will still have to care for them). Of course if you had the ability to do even a few of those things well, the small @7K (on @ 100K annual income) that is the max SS can get every year...would make virtually no difference to you, certainly not enough to care about. One would think, under those circumstances you would be making enough money on your successful investing, that your portfolio is large enough your happy to have the investment security and diversity provided by SS, and you would appreciate the superior return you would likely get from SS). See, you can't be trusted!
Most companies that specialize in these type business have very good products and services to offer to their clients it really depends on the individual and what the individua…l is looking at in long term goals with a 401k.
The advantages of the Prudential 401k investment plans are simplistic, the investment is tax deferred, they can reduce your taxable income by being allocated pre paid tax doll…ars.
The 401k Fidelity Investment plan offers investment advice and advice on planning for retirement. It is an employee-sponsored savings plan that helps consolidate and manage al…l your investment savings.