Retirement
T/F: In a volatile market, it is best to stay the course and continue consistent contributions.
True
What type of Retirement Plans did employers use before 401ks became the normal?
Defined Benefit Plans (Pensions)
What are the two different type of IRAs and 401ks?
Roth and Traditional
What is your best course of action when investing during a bear market?
Stay the course!
Who is the President of Workplace?
Brock Johnson
What is the process called when you transfer funds from one Retirement Account to another?
Rollover
What are the 2024 Contribution Limits for 401ks? (No Catch-Up)
$23,000
What is the 2024 Contribution Limit for IRAs? (No Catch-Up)
$7,000
The last bear market we had was the Great Financial Crisis of 2008-2009.When did we enter the current bear market?
March 2020, the Dow Jones Industrial Average entered a bear market for the first time in 11 years
Who is the Record Keeper for the Morningstar 401k Plan?
Charles Schwab
What is the main benefit of a Defined Benefit Plan otherwise known as a Pension?
Guaranteed Income for Life
What retirement account is offered to employees of public schools, private nonprofits and government workers?
403(b)
At what age do early withdrawals no longer receive a penalty?
59 ½ (same for a 401k too)
What is one of the main drivers of returns for participants with Long Investment Horizon?
Compound Interest
What % does Morningstar match for our 401k?
75% of every dollar up to 7%
What is the difference between pre-tax and Roth contributions?
Pre-tax: tax-deferred, you pay taxes on your balance come retirement when you withdraw (includes earnings), immediate tax-break now
Roth: post-tax contributions, you pay taxes up-front when you contribute, tax-free withdrawals come retirement (including earnings)
What is the most someone can contribute to their 401k for 2024 being age 50 or older?
$30,500
Can Morningstar help me open up an IRA?
No, we only manage and advise on your employer-sponsored retirement account. You can open an IRA on your own at any brokerage or financial institution of your choice.
How many credits do you need to get social security, and how many credits can you get a year?
40 credits and you get 4 credits a year
How many Investment products Workplace uses? Can you name them?
Managed accounts, MPA, fiduciary services and custom models
What are the 3 Key Points to a Successful Retirement Plan?
Contributions, Asset Allocation, Time in the Market
Am I able to take withdrawals from my 401K for cash?
What is the annual IRA catch-up contribution amount in 2024?
The catch-up contribution amount is $1,000 so a total of $8,000 for ages 50 and older
Do employees pay into social security?
Yes, employees can pay into social security under the Federal Contributions Act. Workers contribute 6.2% to social security, which employers match.
When did Morningstar offer Managed Accounts?
2002