Smart Retirement Investing and Planning

For 2011, the limits for contributing to an IRA have been set by the IRS. Limits are adjusted each year based on inflation and any tax law changes enacted by Congress.

Roth IRA Contribution Limits 2011

IRA Basics Explained

Understanding Rollover IRA Accounts

The advice to max out your 401(k) is one of the favorite tidbits dispensed by both professional financial advisors, and financial publications and journalists. In order to be smart and contribute the maximum to your 401(k), you have to know what the IRS limits are.

Of course, maxing out your 401k is the best retirement plan, but how to invest 401k money is just as important. There are many investing strategies, but they all come down to the basics of long-term investing via diversification.

Whether you have a bad 401k plan or you just want more control over your investments, there is a way to rollover a 401k plan without having to quit, or separate from service, as the IRS likes to say.

It's called an in-service withdrawal, and if your plan allows for it, you can rollover your 401k plan while still at your current job.

You know the drill. You read in a magazine or book about this amazing retirement savings plan with a great strategy that will get you to your retirement goals quickly and easily. That sounds great, but if you read about a new one next month, or even next year, should you switch or stick with your original strategy?

One of the complicated things about long-term investing like investing for retirement is knowing when to stay the course, and when to abandon ship. A helpful tip for choosing retirement strategies is to only change investments when either your goals change, or your assumptions change.

If you still want to retire with the same amount at the same time, then don't change.

If you assumed something that is no longer true, then do change, but don't just change because you read a new book, unless you've discovered the old one is wrong.

In other words, switches strategies when you find out your old one was bad, not when you find one that MIGHT be better.