| Towson's budget caution
The difference in fiscal management between Annapolis and Towson is that while state lawmakers may brag about how they've stopped digging a hole in the budget, Baltimore County Executive James T. Smith Jr. has gone a step further - he has started filling it in. It may not grab headlines, but the $2.53 billion budget Mr. Smith submitted this week is as notable for what it excludes as for what it contains. It doesn't raise the county's property tax rate, and overall spending rises a reasonable 5.8 percent. .
On-site advisers would boost 401(k)s
The most critical factor for getting employees to consider purchasing annuities into 401(k) plans is having advisers on-site at the workplace, according to a study by Cerulli Associates released today. The Cerulli Edge, the quarterly retirement analysis, found that that only 40% of 401(k) plans allow advisers in the workplace. This presents a prime opportunity to advisers because of the confusing nature of annuities. "Offering advice at the worksite can be an effective strategy that encourages participants to not only think about annuities, but also consider all of the options available to them," the report indicates. A provision of the Pension Protection Act of 2006 directs the Department of Labor to clear up the regulations for including annuity options within 401(k) plans.
Roth vs. traditional IRA
If you already contribute to an IRA, then you're taking an important step toward building the financial resources you need for retirement. If you don't have an IRA, then you might want to consider opening one. But which one? Your two main choices are a "traditional" IRA and a Roth IRA. These IRAs share some common characteristics. First, you can fund either one with virtually any type of investment you choose - stocks, bonds, CDs, etc. And second, you can contribute up to $4,000 to either IRA, or $5,000 if you're 50 or over. (However, you cannot contribute to a Roth IRA if your modified adjusted gross income exceeds $160,000, if you're married and file jointly, or $110,000, if you're single.) Beyond these similarities, though, there are some important differences in the two IRAs.
A broader retirement plan
Democrats skillfully demagogued President Bush's plan to let workers invest some of their Social Security taxes, but now another idea waiting in the wings could be far more popular.
The core of Mr. Bush's retirement investment plan was to provide a way for low- to middle-income Americans to build wealth over their working years by taking advantage of higher yield, diversified, blue chip stock and bond funds that wealthier people enjoy.
Democratic leaders and the powerful AARP lobby persuaded voters -- especially older Americans -- that this was a risky idea that would destroy Social Security.
But the members of Congress who rejected Mr. Bush's plan have their own gold-plated government pension plan that allows them to invest in stocks and bonds, which most of them do.
ARH Strike Approaches Three Weeks
The deal isn't done yet. Saturday will mark three weeks that the United Steel Workers have been on strike while negotiators try to settle a new contract with ARH. They've weathered the rain and snow but in three weeks, union members say less than 25 of them have crossed the picket line out of about 800 members. If you've driven by the strikers wondering why they want you to honk to support their efforts, a USW newsletter explains why. The Steel Workers say ARH wants them to give up the pension for future ARH employees and replace it with a 403-B tax advantage retirement savings plan and delay new pension contributions until the middle of 2009. One matter they say ARH is not budging on is a demand for USW to pay nearly 300 percent more for health care premiums. "It's not about the money, we just want what we had," said USW Member John Snell.
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