For those who want a secure retirement, and who have access to a 401k plan at their place of employment, it helps to know the general points of comparison between IRAs and 401k's. It's possible to have both at the same time, or opt just for one. For the vast majority of people who are saving for retirement, however, the choice is made for them. In other words, if your employer does not offer a 401k, then your default option for retirement security is an IRA. For the lucky ones who do have 401k offerings at work, here is a quick comparison between the two investment vehicles: The Tax Question Both IRAs and 401k plans allow for tax … [Read more...]
What is the Truth about IRAs vs 401k Plans?
Every year, millions of taxpayers wonder whether it's best to put their retirement money into a 401k plan or an IRA. Of course, the ones who have to make the decision are the lucky few who have access to an employer-sponsored 401k; you can't start a 401k on your own. Still, it's not always clear what the best strategy is. Should you max out the 401k and ignore IRAs altogether? Or is it smartest to only use IRAs, either a Roth or a traditional version, and forego the 401k? Here's a look at what the overall strategy should be for those who have the option of a 401k, along with a list of pros, cons and contribution limits for each type of … [Read more...]
Will I Have Enough to Retire?
While it may even be decades away from when you finally get to walk away from work and enjoy the life experiences without the day to day grind, it’s not too early to start thinking about retirement. Sure, we can dream about it, but the fact is, whether we like it or not, that dream will become a reality sooner than we think. The more you put off saving for retirement the less you will have as a nest egg. Simply put, the longer you have to save and grow over time, the better off you will be, since you cannot solely rely on Social Security to provide the income level that you’re comfortable with today. By asking yourself a few … [Read more...]
How to Free Up Extra Money to Put Towards Retirement Savings
Although it may not be decades until you’re ready to walk away from work and head into retirement, there actually can become a point when it becomes too late and you’re in dire jeopardy of not having enough funds to not only live off, but to enjoy the life experiences that you had planned on achieving once work was out of the way. Before you continue to push the focus on retirement out further and further, now is the time to make a few adjustments to your finances to free up extra money in order to maximize contributions. Create a Budget If you were asked how much you’re currently spending on food, would you be able to say? … [Read more...]
Learning About Consumers
Running a business means never stopping in your efforts to understand more. Understanding more about your industry lets you find better ways to do what you do, to anticipate changes, make savings and get to the next big development first. Understanding more about your employees let’s you be sure you’re getting the best from them, drawing on all the relevant skills they have for you and not driving them towards burnout without respite. Perhaps most important of all, learning about your customers means you can adapt your products and services to fit them better, tailor your marketing to be more attractive to your audience, and your marketing to … [Read more...]
What are the Differences Between a 401k vs. IRA?
When it comes to retirement and savings, it's hard enough to free up extra money in order to contribute to the future, but it's necessary. So how do you choose where to put your hard-earned money? The two most common vehicles used by most people nowadays is 401(k) plans and Individual Retirement Accounts. The difference between a 401(k) and IRA is that an employer establishes a 401(k) and an IRA is set up by individual investor many people want to know what are the differences between an IRA vs. 401k. Here are the significant differences: IRA v. 401k Simply Put A traditional IRA is available to any person who is below the age of 70 ½ … [Read more...]
How to Reduce Expenses to Increase Retirement Contributions
Retirement probably isn’t the first on your mind, even if you’ve settled into your career thus far, but that doesn’t mean that saving should be an afterthought. The earlier you can start saving, the more time there is to grow over time. While most live paycheck to paycheck, that is not an excuse to jeopardize your future, it just means that you have to be a little more creative in reducing expenses so there is a little extra at the end of the month to put towards retirement, instead on, say, impulse purchases. Track Purchases If you were asked how much the current expenses for monthly bills, even food, gas, and spending money, would … [Read more...]
Money Moves to Make to Improve Retirement Savings
While it may seem like retirement is the furthest from you mind, and sure, it could be decades away, but that doesn’t mean that saving should be on hold until down the road. In fact, the earlier you start saving, the more you have for your nest egg to grow over time. Whether you decide that a 401(k) or IRA is in your best interest based on your current and future income, by making a few money moves now, you can free up the most money you can and really maximize retirement savings. Check Your Credit Report If you have applied for a home purchase or refinance, a personal loan, or even your credit card, you know that not only is your … [Read more...]
How You Can Catch Up on Retirement Savings
While knowing best roth ira providers is a start, but where do you get the extra money to fund the account? While retirement may even still be decades away, if you haven’t given the proper priority to this point, then I hate to say it’s too late, but you will need to do some catching up. I know that saving for retirement may not be the first on your mind, especially with, well, life going on at the moment, but the earlier you can start saving, the better, with more time to grow over the next decades. If you are in need to catching up, there is still time if you hurry. Continue to Work Whether you are approaching retirement age or … [Read more...]
What You Need to Know About Contributing a 401(k) in 2018
Now that the new 2018 tax plan is in full force, whether you have started receiving larger paychecks or not, it’s always a good idea to go through the W-4 form, not to mention compare on your 2017 taxes that you probably have filed by now, whether you owed or had a return, to ensure accuracy. Going through now with more paychecks remaining since it’s March, more to spread out any additional tax payments you need to make, especially if you’re a two-income earning household. After you figure out the tax situation you can see what funds you have available before you can say what does ira stand for. Contribution Limits I know it’s easier … [Read more...]