Stocks rose sharply on Monday as Treasury yields rebounded, quelling fears of a possible recessionUS Marketsread more
The Business Roundtable, a group of CEOs of nearly 200 major U.S. corporations, gave a new definition of the "purpose of a corporation."Marketsread more
J.P. Morgan estimates the average annual tariff cost per household will be $1,000 with the new round of Trump's tariffs.Marketsread more
J.P. Morgan says investors should remain guarded for the rest of August and wait until next month before buying stocks again.Marketsread more
The attacks come after state and local ransomware attacks in New York, Louisiana, Maryland and Florida resulted in the loss of significant sums.Technologyread more
Wild market swings claimed plenty of victims last week, but Cornerstone Macro's Carter Worth says Home Depot is poised for a big breakout.Options Actionread more
The conglomerate's head of investor relations released a more detailed statement about accounting practices under fire from Harry Markopolos.Marketsread more
Goldman notes that high-dividend payers are trading at their largest valuation discount in nearly 40 years.Marketsread more
Amazon is raising seller fees for thousands of small and medium-sized businesses in France because of a new digital tax passed by the French government.Technologyread more
U.S. Commerce Secretary Wilbur Ross said the U.S. will extend a reprieve given to Huawei that permits the Chinese firm to buy supplies from U.S. companies.Politicsread more
Amid the headlines of stores closures and retail bankruptcies, it can be tough to accept that the U.S. consumer is doing just fine.Retailread more
Are you making the most of your 401(k)? Better check.
In recent years, companies have been making improvements to their workplace retirement plans, according to a new survey by global advisory firm Willis Towers Watson. Among other changes, many companies have boosted employer contributions, added Roth 401(k) options, and made fees more transparent.
The survey polled 349 large and midsize U.S. companies that offer defined contribution retirement plans.
It's imperative for companies to strengthen defined contribution plans such as the 401(k) to help employees with long-term financial security, said Gregg Levinson, a senior retirement consultant at Willis Towers Watson.
"[Defined contribution] was never built as the primary retirement source," he said.
Here are some of the changes companies are making, and how employees can take advantage.
One in 4 employers in the Willis Towers Watson survey had increased their plan contributions in the past five years. Of those, 60 percent did so by increasing the employer match.
"You want to make sure any free contribution the company is offering you, you maximize. Otherwise you're leaving money on the table," said Victoria Fillet-Konrad, co-founder at Blueprint Financial Planning in Hoboken, New Jersey.
It's a misstep plenty of workers make: One in 5 aren't contributing enough to get the full match, according to separate analyses from Alight and Fidelity. Younger workers are more prone to miss out. (See chart below.)
Seven in 10 employers in the Willis Towers Watson survey now offer a Roth option within their 401(k) plans. That's up from 54 percent who did in 2014 and 46 percent in 2012.
With a Roth 401(k), workers make contributions with after-tax money. Those funds can be withdrawn tax-free in retirement. With a traditional 401(k), you make pre-tax contributions, but then pay taxes at withdrawal.
Advisors say a Roth can be an especially smart move for young workers who currently fall in a low tax bracket and have decades left in the workforce to let those tax-advantaged funds grow.
"If their current tax rate is 15 percent and they feel their income will go up and tax rate will go to 30 percent, then it's better that they do a Roth now because that saves them the tax money," said J.J. Fields, managing director at FMB Retirement Services in Westlake Village, California.
A whopping 93 percent of employers in the Willis Towers Watson survey use target-date funds — which automatically adjust your portfolio allocation as you approach retirement — as the default investment for workers who don't make their own selections. That's up from 86 percent in 2014 and 64 percent in 2009.
TDFs can be a great option.
"If you are not educated enough to manage your portfolio or don't want to spend the time managing your portfolio, pick a target date fund," Fillet-Konrad said.
"I have 80-year-old [clients] that have a higher risk tolerance than 20-year-olds," he said.