A Little About 401(K)

A Little About 401(K)

A Little About 401(K)

In the 1980s, pension plans became too expensive for employers to keep paying the employees that didn’t work for them anymore. As a result, they replaced pension plans with 401 (k) plans, although they were at first intended as a supplement to pensions.

There are 2 kinds of 401(k) plans:

Traditional (the most common):

Traditional plans penalize you 10% if you withdraw money prematurely; taxes are paid upon withdrawal instead of when contributed, and you can’t access your funds without the 10% penalty until you are 59.5 years old or quit by the age of 55 and onwards.


Funds are taxed upon or before contribution so you don’t pay on withdrawal. You have free access to the funds after 5 years of holding an account.
These 401(k) plans allow you to set aside part of your paycheck and invest it in whatever way you choose. Options include target-date funds and bonds, stocks, and money markets in mutual funds. You can choose to put in as much as you like and as long as you stay under your salary amount, or a certain constant amount that the IRS limits annual contributions to, each year. You need to keep enough to live on though, and usually employers match your contributions up to a percentage of your salary (usually 3%) which is also figured into your annual limit.

Employers will sometimes restrict you from withdrawing their contributions, not yours, for a period of time before you can withdraw them. However, as stated above, it is probably not a good idea to withdraw at all even after that period of time since that would cost you quite a bit of money in penalties and lost interest, unless of course, you have a Roth 401(k), in which case, you have to wait 5 years.

The best strategy is to invest at least as much as the employer matches, and don’t withdraw until retirement. That being said, if the company goes down, you can still save your 401(k) by rolling over into a traditional IRA and avoiding the 10% penalty, or simply withdrawing the money and pay the penalty. If you go down, your elected beneficiary or your spouse gets the money.

Is Crowdsourcing a Good Way for Hiring Employees?

Is Crowdsourcing a Good Way for Hiring Employees?

Is Crowdsourcing a Good Way for Hiring Employees?

Crowdsourcing may seem like the perfect means to attain the perfect end. However, in some cases, it can work to one’s advantage or work against it despite the fact that crowdsourcing is looked upon as being the easiest, as well as, the cheapest of all ways to hire new employees. The answer is that, it may depend on the type of company doing the hiring and if other employees do sit well with the idea, though crowdsourcing is viewed as being a very effective solution in its own way to hire employees who are very much needed to handle different aspects of a business place. The answer is still something that doesn’t come easy for some. Are they doing the right thing by hiring employees this way? The answer is one that may vary from those who do handle the hiring process in human resources. It may also be something different with each owner or manager of the said business organization. No two people will look at crowdsourcing in the very same way. Therefore, the option is something which must be weighed first, and this includes by everyone from the people in HR, right down to the CEO and owner of the business themselves.

Despite the fact that crowdsourcing has a lot of very valid aspects, it is still something that has its drawbacks as well, overall. These pros and cons are also something that must be examined closely as well before actually doing any crowdsourcing in general. One must also take into consideration the many types of crowdsourcing that is available out there too. You need to make sure that before you hire anyone by using this avenue know what type of crowdsourcing you will be looking for and need overall.

Employers indeed have many defined tasks that they need done for an affordable price. Nonetheless, what does come with the low price is that many people are willing to do the work for so cheap. How ascertain are you to look for the best candidates from the rest by using crowdsourcing as a job hiring platform? The answer is to do your research and legwork. You need to fully understand the good side and the bad side of crowdsourcing. The good side of crowdsourcing is diversity. You can look at hiring people with different skills for different things you need done. You can specify what you are looking for in crowdsourcing and get just the right someone every time. You can also make the project into a regular job or just hire them on a temporary basis until the job is completed. Crowdsourcing is infinite diversity in certain numbers. These certain numbers do add up each time. They are also representative of actual people who are potential employees for a business place. Crowdsourcing has also a bad side like there is no guarantee you will get what you are looking for in an employee. Hiring someone is always a risk and this applies to crowdsourcing too. You may think you have hired the best someone possible then it turns out they aren’t what you thought they were. This can also happen via the traditional routes of hiring as well. Another downside to crowdsourcing is making other employees feel left out in the cold. They may actually resent strangers coming in and taking over jobs. They may even fear that a crowd source employee take their own position with the company.

Is crowdsourcing a good way for hiring employees? The answer is yes and no. It is good in some aspects but not in others, and these good and bad things apply to each individual set of circumstances overall.

Grow Your Business with Online Marketing

Grow Your Business with Online Marketing

Grow Your Business with Online Marketing

Whether you run a bricks and mortar business, or you are starting an internet business and using fulfillment services, you need online marketing in order for your business to grow. Most business owners now recognize the importance of having a website, but just having a website isn’t enough, people need to know you are out there and for that. you need online marketing.

What is Online Marketing?

Online marketing is a way of introducing your business to a wider audience and letting them know you are out there. There may be hundreds of people who would appreciate your services or products but first they need to know that you are there, and that is the business of online marketing. This article offers some of the ways a business owner might engage in email marketing.

One of the things that an online marketer will concentrate on is something known as permission marketing. Essentially what this means is that you offer something, for example a free news letter about your business. Anyone who wants to receive your letter will need to provide you with their email address, when someone does this; they are in effect, giving you permission to promote your business. Whenever you have a new product or a free gift, you can notify the people on your list.

Some companies will favor those customers who’ve provided an email address with advance news of upcoming products or the occasional free gift. The gift is generally a digital product, a book, or newsletter telling them about any special offers you may have or advance notice of a sale. Occasionally you may offer discounts on certain products to those people on your email list.

Using a Blog

Most company websites now incorporate a blog. Blogging is a great way of marketing certain aspects of your business online. You might want to introduce a new product and let people know how it works and how it is better than other products of a similar type. Once you start a business blog, you should have a blogging schedule if you intend the blog to be an integral part of your online marketing. You can link to particular products or web pages within your blog but make sure that the general tone is friendly and engaging.

You may want to offer certain bits of information in the blog post itself and then say that if the reader wants to know more, all they have to do is provide their email address and receive the full text of whatever it is you were writing about. Permission marketing is one of the best tools in your online marketing toolbox.

Use Social Media

If you don’t already have a presence on social media sites such as Facebook and Twitter, then now is the time to sign up and start posting. Having a varied online presence is vital to marketing your business. Some companies have seen great success with video marketing as well. Videos that go viral can catapult a company to new heights overnight. Below is an example of a video that did just that to Halo Capital, a company in the lending business.

Advantages Offered by Business Technology

Advantages Offered by Business Technology

Advantages Offered by Business Technology

Since the introduction of call lines and phone systems, business technology hasĀ  been vital to nearly every industry. It makes contacting easier and hassle-free whenever teams are getting together. New conference calls are made simple by streamlined tech that managers may implement in an office setting. Employees should follow industry shifts to understand the impact of technology on their niche market. New reviews will offer insight and accountability for the office to consider during any transitional period. It may give them a significant advantage of competitors in their market sector.

Rapid Transmission of Concepts

Discussion and implementation of new procedures will often be structured in a tiered fashion.
Office insiders will be looking to expedite a transition to make it worthwhile on behalf of those
hoping to succeed. Correspondence should be succinct but informative across all necessary levels. Applicants may work within the confines of an industry to secure access to the latest reports. Teams can exchange newsletters and send them to partner agencies for review that will bring everyone onto the same level for a renewed outlook on reports.

Coordination on Project Standards

Most employees have to submit projects and concepts that add to the standing of the company. Business technology can facilitate the process before it is completed. Frequent updates are allotted by virtue of new business devices on site. Office managers may delineate tasks for their team to follow during a standard work week. They can use devices to check their team members and get full reports on their progress. Standards may be met and exceeded when the new technology is mastered on behalf of an office team.

Financing New Tech Upgrades

Keeping pace with these advancements is a taxing endeavour for start-up companies. They should consider lending options if they want to stock their office with new features on site. Both private and public lenders have coordinated these upgrades in the past. They may have ties to the major brand organizations, giving new financial options for business leaders to consider. Most upgrades have to be handled in a systematic level before they are arranged. Some have found great success through C-Loans which combine efforts from both sectors for projects.

Cost Effective Implementation

Going back to the days of conference calls and public notice arrangements, telecommunication has elevated the performance of businesses. Advanced tech will speed up communications within an office and make it more affordable to send out messages. Weekly addresses and office notices may be orchestrated using a minimalistic budget. The upfront cost of technology is always something to be considered. But it has a long term potential that may be thought of as a plus.