4th Quarter 2008

How to Simplify Your Financial Life

Did you make a New Year's resolution to simplify your life? Simplifying your finances—focusing here specifically on your retirement savings—can be a big step in the right direction.

Save at work. Contributions to a 457 or 401(a) plan are automatically deducted from your paycheck before you have a chance to spend the money. If you make pre-tax contributions to a 457, investing the maximum $15,500 in 2008 will lower your take-home pay by only $11,625, if you're in the 25 percent tax bracket. Start investing that much when you're 45, and you could end up with more than $675,000 by the time you're 65, if your investments earn 7 percent a year.

Pick pre-diversified funds. If you don't want to worry about choosing the right funds and maintaining your own portfolio over time, consider lifecycle funds. Pick a fund that matches the date you plan to start withdrawing the money in retirement, and investment professionals automatically shift the portfolio from aggressive to more conservative as your target withdrawal date gets closer.

Protect Your Finances From a Disaster

The following steps can help you prepare financially for any kind of disaster.

New Rules for Roth IRA Rollovers

In the past, you had to take two steps to move money from a former employer's 457 or 401 to a Roth IRA. But that law changed in 2008. Learn about how you can now move straight to a Roth IRA after you leave your job.

Three Tax Breaks for Families

Don't forget to take advantage of these write-offs when you file your 2007 taxes. Learn about three tax breaks that can help families.

Investing Spotlight

Spreading your savings among several types of investments can reduce risk while seeking to improve potential returns. Read about two new Vantagepoint funds that can help with diversification.

Ask ICMA-RC

How do required minimum distributions work? Find out whether you must start withdrawing money from your retirement accounts at age 70 ½.

Around ICMA-RC

Learn more about a new resource to help with retirement planning, the deadline for the Vantagepoint Public Employee Memorial Scholarship, and whether you can save more money in your retirement accounts this year.

Market View: Value vs. Growth

Investors often debate whether it's better to invest in stocks labeled as "growth" or "value." See how each type of stock performed over the past three years and why it's important to diversify your investments.

Resources to Help Avoid Financial Troubles

Uncertain economic times can bring unexpected financial issues for many—ranging from higher household expenses to missed mortgage payments and in some instances, job layoff.