Steve Kerby

Steve Kerby

Steve began his career 51 years ago by joining Northwestern Mutual Life (NML) during his senior year in college in 1970. Steve quickly learned that he had made the right decision because he genuinely cared about people. He liked helping people plan and to solve problems, making a difference in peoples’ lives, and that quality of company and product was of utmost importance.

Steve Kerby

5555 SW 196th Ave.

Aloha, Oregon 97078

steve.kerby@retirevillage.com (503) 936-3535
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Investing in your 401(k) is crucial to your future financial security, and as such, it is essential to know how hidden fees and other 401(k) provider practices can impact your investment.


With investing, as in life, it is often the unexpected things that have the most significant impact. Keep reading to find out how certain aspects of typical 401(k) plans may impact you.


Variable Annuities are Not Necessarily the Best Choice


You may be surprised to learn that heads of large corporations, like Bill Gates, frequently sell shares of their companies stock to diversify their holdings. This may seem to be in direct contradiction with the message that your own company sends you about investing your 401(k) in their stock, mainly if they offer incentives and company matches to encourage said investing. The fact is, companies don't see inside investing as a show of loyalty, and the more that you invest into a company, the greater risk you run of losing the majority of your investments should the company's stock values suddenly plummet. Your career, your finances, and your security already depend on the future of your company, why risk losing even more if the company goes belly up?


You Can Contribute More To Your Solo 401(K): Thanks to recent tax-law changes, self-employed business owners can now contribute all (that's right, up to 100%) of the first $15,000 that they earn, starting this year. If you will be turning 50 and up by the end of the year, your allowed contribution amount increases to about $20,000.


You Can Deduct More From Your Solo 401(K): Part of the recent changes is a provision that allows for options that are similar to those found in SEP and Keogh plans. Like with a traditional small business retirement plan, those who are self-employed can also now deduct up to 20% of their self-employment income.


Solo 401(K) Options: Know Before You Invest: You know the saying: if it sounds too good to be true, it usually is. Luckily, the Solo 401(K) option not only sounds good but for most self-employed business owners, provides a way to accrue greater retirement savings. Before you sign on that dotted line, however, here are a few caveats to consider.


You May Have to Contribute to Employee Accounts: Depending on your business circumstances, the new tax law may require that you contribute to your employee's accounts as well as your own. This is something that corporations have been doing for years, and financial and retirement account planners have extensive experience in helping business owners like yourself handle this type of contribution, so you should plan to meet with yours.


You Must Not Miss the Deadline: The deadline for establishing a Solo 401(K) plan is December 31st, and you must have one in place before the start of a new year to be eligible for tax deductions.


Explore your Solo 401(K) Options: The importance of meeting with your accountant and personal financial planner before investing in, or deciding on, any financial retirement plan, cannot be stressed enough, mainly if you are a small business owner with employees. Always remember that smart financial planning today leads to a more enjoyable retirement in the future.

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