If the parents contribute all $14,000 to the 401k Plan for the next 18 years They will take full advantage of the employer’s match of 25 cents on the dollar — a guaranteed 25% return on your money, plus a minimum of $10,800 tax saving.
 

When college comes along, take a early withdrawal from the 401k loan to pay the education expenses is tax-free. You’ll have 60 months to repay each early withdrawal  back and you pay interest to yourself.

• Take Your 401(k) With You!
  
  If you have left your employer to pursue another job then there is something you should consider taking with you something that many employees leave behind: their retirement plan. Specifically, if you...

• The Self-Employed 401(k) Loan
  
  Instead of tapping their IRA to raise cash many individuals are turning to the Self-Employed 401(k) with a loan feature as a method to access money from their retirement account without paying a big penalty...

• 401(k) balances below high of six years ago
  
  Despite strong investment gains during the past three years, employees 401(k) account balances, on average, are lower than they were six years ago as the accounts have yet to fully recover from the beating...

• Retirement Plans for Solo Entrepreneurs
  
  Copyright 2006 Kristine McKinleySaving for retirement is even more important for solo-entrepreneurs because you dont have a company sponsored pension plan or matching 401K contributions to rely on. There...

• Armchair Millionaire Community Bulletin: Borrowing from the Bank of 401(k)
  
  Because of the many drawbacks associated with it, borrowing from your 401(k) should be a source of last resort. Use it only if you absolutely must. New York, NY (PRWEB) March 22, 2005 -- According to the...

• Down Payments - Get Creative
  
  One of the biggest hurdles to buying a home is the down payment. Saving up a chunk of change can be difficult, so getting creative is a key. Down PaymentsThe amount of your down payment is dependent upon...

• With Social Security Vanishing, Do I Need a 401(k)?
  
  What is a 401(k)? The name is derived from the Internal Revenue Code established in 1978. Its presently administered by the government section called the Employee Benefits Security Administration, also...

• The Attractive Tax Break for Home Loans
  
  So, youve decided on the house, youve researched your mortgage product options, and you know which product you need. Have you taken into consideration the tax advantages that are being touted as an attractive...

• Roth 401k Only Available to a Few
  
  Only about one in three employers are expected to start Roth 401(k) plans in 2006. But, those who are self-employed, independent contractors, or business owners with no employees, don’t have to wait....

• Home Equity Line of Credit vs. Second Mortgages
  
  If you own a home, you may be able to obtain quick cash using your homes equity. For the most part, our homes are our biggest asset. As our homes value increases, so does the equity. Some homeowners...

• The 4 Do's and Don'ts of 401(K) Investing
  
  For an individual, the 401(k) is the greatest investment deal around. Though only if its properly managed. Here are some basics to remember when Investing in your 401(k) plan.1) Be wary of over investing...

• What You Should Know About A 401k
  
  A 401k is a good place to start in planning for your future retirement, no matter how far away you may be from the actual time. A 401k account is a special type of savings account that is funded directly...

• Avoid Losing Your Home to a Bank Foreclosure
  
  Are you facing the prospect of losing your home in a bank foreclosure? Many who are experiencing a temporary financial squeeze will withdraw cash out of their IRA in order to save their home. Getting a...

• Five-Steps to Successfully Monitoring 401k Investments
  
  Employers --who make decisions about their 401k plans--are required by ERISA to employ a prudent process in the management and monitoring of their 401k plan investments. Plan Sponsors are required to not...

• Penalties on IRAs, MSAs, and 401(k)s
  
  The 401(k) is a retirement plan implemented and provided to employees by their employer as a means to save for their retirement. Not only do many employers contribute to the employees 401(k) along with...

• Study Finds Few Workers Trade Within Their 401(k) Plans
  
  A new study of 1.2 million American workers with 401(k) plans has found that very few people pay attention to their portfolios: Only about one in five bother to engage in any trading at all. The study,...

• Does Early Mortgage Repayment Still Make Sense?
  
  Early mortgage repayment looks on paper at least like a wonderful deal. If you have a typical mortgage and you are near the beginning of the mortgage term and make an extra $25 a month in principal payments,...

• Home Equity Loan - Still a Better Idea Than a 401(K) Loan
  
  Anyone who borrows money is always looking for the cheapest source of funding. That makes sense; no one wants to pay more in interest than is absolutely necessary. And anyone with a sizeable amount of...

• 401k Plan Loans - An Overview
  
  Allowing loans within a 401k plan is allowed by law, but an employer is not required to do so. Many small business just cant afford the high cost of adding this feature to their plan. Even so, loans are...

• Down Payments – Get Creative
  
  One of the biggest hurdles to buying a home is the down payment. Saving up a chunk of change can be difficult, so getting creative is a key. Down Payments The amount of your down payment is dependent upon...