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☆ The money you forfeit when you cash out of your 401(k) can be staggering
▼ + stars: | 2024-10-09 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +5 min

CNN —When you quit your job, one of the biggest decisions you’ll have to make is what to do about the money in your retirement account if you’ve been saving in your company’s 401(k). Roll it over to another tax-deferred retirement account such as an IRA or the 401(k) at your new job. While a majority of 401(k) participants who switch jobs choose the first or second option, a large minority cash out, according to recent studies. Here’s why: The features of a 401(k) plan may differ from employer to employer. While many now auto enroll employees in the plan, the default savings rate coming out of your paycheck may differ.

Persons: you’ve, Robert Persichitte, Tom O’Saben, she’ll, “, ”, Paul Brahim, — Organizations: CNN, Vanguard Investments, Yale School of Management, National Association of Tax, Financial, Association, Vanguard, ” Vanguard Locations: New York City, Los Angeles, Colorado

Inflation, as measured by an index closely followed by the Federal Reserve, dipped slightly in line with estimates in September, the Bureau of Economic Analysis reported on Friday. The personal consumption price expenditures index rose 0.4% for the month, unchanged from August, while rising 3.4% on an annual basis, down from 3.5% a month earlier. The narrower core index, excluding food and energy costs, rose 0.3% for the month, in line with expectations but up from the 0.1% increase in August. For the year, the core index is running at 3.7%, an improvement from the 3.9% registered a month ago. The report showed that spending also increased, by 0.7%, while incomes rose by 0.3%,“Core Inflation: the three month annualized pace of core PCE slowed to 2.4% y/y.

Persons: Joseph Brusuelas, Mark Vitner, Joe Davis, Andrew Patterson, ” Organizations: Federal Reserve, Economic, PCE, RSM, Fed, Crescent Capital, Vanguard, Global, “ Locations: Europe

☆ PCE: Gas prices heated up inflation last month, but there's also welcome progress for the Fed
▼ + stars: | 2023-09-29 | by ( Alicia Wallace | ) edition.cnn.com time to read: +6 min

Minneapolis CNN —Higher gas prices heated up overall inflation last month, but the Federal Reserve got some welcome news: Its preferred inflation gauge cooled to its lowest level in two years. The core Personal Consumption Expenditures index, a closely watched inflation measure that excludes gas and food prices, rose 3.9% for the 12 months ended in August. However, it also was largely expected: Gas prices heated up last month as well. The Commerce Department’s monthly Personal Income and Outlays reports are typically closely watched as they provide a comprehensive account of pricing, income and spending data. Other federal data at risk for delays could include key housing and auto sales data, Census Bureau data, PCE and GDP reports, among others.

Persons: ” Andrew Patterson, ” Patterson, ” Dana Peterson, “ That’s, ”, that’s, Price, Security Administration’s, “ We’ve, ” Vanguard’s Patterson, “ Organizations: Minneapolis CNN —, Federal Reserve, Commerce Department, Vanguard, CNN, Energy, “ Energy, Consumers, Commerce, Conference Board, Labor, Department, Bureau of Labor Statistics, Price, Security, Adjustment, Labor Department Locations: Minneapolis, Saudi Arabia, Russia

The Federal Reserve, as expected, left interest rates unchanged on Wednesday while raising forecasts for economic growth and lowering them for unemployment next year. “Job gains have slowed in recent months but remain strong, and the unemployment rate has remained low. Inflation remains elevated.”The central bank updated its forecasts for economic growth, unemployment and inflation. The GDPNow estimate from the Federal Reserve Bank of Atlanta is now pegging economic growth in the third quarter at 4.9%. But it would likely curb economic growth at a time when the Fed’s policies have restricted credit and other government stimulus is waning.

Persons: “, ” Powell, ”, Powell, Andrew Patterson, Ruslan Lienkha, Victor Li, Jeff MacDonald, Joe Biden, Donald Trump Organizations: Federal Reserve, Fed, ”, Villanova University, Federal Reserve Bank of, GOP Locations: Saudi Arabia, Russia, U.S, Federal Reserve Bank of Atlanta

☆ Average 401(k) account balance tops $112,000, new report shows
▼ + stars: | 2023-06-15 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +5 min

New York CNN —The average balance in employer-sponsored savings plans last year was $112,572, well below the $141,542 recorded in 2021. “Vanguard participants’ average account balances decreased by 20% since year-end 2021, driven primarily by the decrease in equity and bond markets over the year,” according to the report. “Among plans with a nonmatching employer contribution, the average contribution was equivalent to 5.1% of pay; the median contribution, 4.1% of pay,” Vanguard noted. The auto enrollment feature has helped boost overall participation in the plans Vanguard oversees. Including what employees kick in, the average total contribution rate was 11.3%.

Persons: ’, nonparticipants Organizations: New, New York CNN, Vanguard Locations: New York, nonparticipants

☆ From your 401(k) to bonds, here’s how to protect your financial well-being as debt default worries grow
▼ + stars: | 2023-05-27 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +7 min

New York CNN —The White House and House GOP negotiators are rushing to finalize a deal to raise the country’s debt limit. With that X-date only about one week away, there’s still no deal to raise the debt ceiling – putting Americans’ finances in danger. If you invest in bonds, pay attention to when your Treasury bills are maturing. Stick with high-quality investmentsSteer clear of corporate junk bonds or emerging market bonds, CNN has previously reported. Federal government contractors could also see a lag in payments, which could affect their ability to compensate their workers, CNN previously reported.

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