Eric Mitchell Real Estate

Signs You're in a Lousy 401(k) Retirement Plan Many Americans just aren’t prepared for retirement. Two-thirds of families fall short of conservative retirement savings targets to retire at age 67, according to a 2015 study by the National Institute on Retirement Security. The median retirement account balance — including money in a 401(k) retirement account — is $2,500 for working-age households, and $14,500 for near-retirement households, the study found. Even for workers who contribute to their employer’s 401(k) plan, they may not be saving enough money to get them to the often recommended retirement income goal of having 70 – 80 percent of their pre-retirement income, or they may be in a 401(k) that isn’t doing a good job of making money for them. Here are some signs that you may be in a lousy 401(k) retirement plan: Low results:  Poor performance is an easy indicator to spot, and it doesn’t mean you have to stay with that 401(k). Moving to another retirement pla...

Growth vs. Value Investing: Know the Differences Your investing style and tolerance for risk can help determine what type of stock mutual funds you invest in. The two main types of funds — growth and value — have different characteristics that can match your investing style. Owning a mix of both funds is probably a smart move, but it can still be worthwhile to understand how each fund works. Here are some short explanations of growth vs. value funds: Characteristics Growth businesses are likely to reinvest profits, instead of paying out dividends to shareholders, as a way to grow. Growth stocks can be seen as expensive and overvalued. Growth stocks tend to be newer companies with products that are expected to be in high demand in the future. Value funds are stocks that are undervalued by the market, meaning their prices don’t reflect their fundamental worth. They can trade at a lower price when compared to their fundamentals. Value stocks can be undervalued for vari...