It is possible to officially be done working by age 55. You don’t have to work up into your 60’s and 70’s before you can enjoy the sweet benefits of retired living and financial freedom. The problem is that financial security after your career isn’t something that just simply happens. To make it work and really succeed, you need to have a game plan for how to retire at 55. Even though it will involve a little bit of planning, wise decision-making, and capital to invest, I think you will find it much easier to accomplish retirement than you think. … [Read more...]
A Strategy for Getting the Most From Both a Roth IRA vs 401k
Lately some of my readers have been emailing me questions about what the best path is to take when it comes to your retirement savings. Even though it would be nice to invest in as many different types of retirement funds as possible, sometimes our ability to save money is limited, and we have to make a choice about which one to use first. So while the homepage of IRA vs 401k Central lists all the pros and cons of each type of investment, some people just want to know – between a Roth IRA vs 401k, which one should I start off with in order to get the best return? Fortunately there is a strategy to investing in BOTH that can get you the … [Read more...]
When Hitting Your 401k Max May Not Be To Your Advantage
If you read my advice often, then you know that I am constantly encouraging you to save as much as possible for retirement. Why? Because I want you to be wealthy, take advantage of tax free savings, and reach financial freedom as quickly as possible. And even though I continually advocate all the benefits of hitting your 401k max, sometimes it’s just not going to be practical or feasible if you have a limited income. In fact in a few cases, there may be other things you need to consider that may work out better for you long term. … [Read more...]
Low Cost Investments to Boost Your IRA or 401k
Retirement planning has common benefits and challenges. The tax advantages and array of options gives investors flexibility. Those who start early, use the power of compounding and maximize contributions can approach retirement with financial security. However, increases in life expectancy and cost of living make it essential that IRAs or 401ks are managed wisely. Most of this focus tends to be on investment returns. The current bull market has rewarded many equity investors. Equity rallies can cause us to chase performance or overlook the cost of investing. As a result, many investor portfolios may no longer reflect time horizon or … [Read more...]
How to Make the Max Contribution to Roth IRA Savings This Year
For the last five years I’m very proud to say that my wife and I have been able to make the maximum contribution to our Roth IRA accounts each year. The maximum contribution limit per the 2015 IRS rules is $5,500 for each person in a couple under the age of 50. ($6,500 if you’re 50 or older.) So that means we contribute $458.33 apiece each month. That’s a deduction of $916.66 every month from our income. Although that may sound like a lot of money, I’m sure there are plenty of worse and less constructive ways we could be blowing through $917 every month. In this post, we’re going to talk about how you and your spouse can accomplish … [Read more...]
Can I Contribute to an IRA and a 401k Plan at the Same Time?
If you’ve ever wondered Can I contribute to an IRA and a 401k plan at the same time, the good news in general is that the answer is “yes”. (But keep in mind there will be some possible restrictions to note below.) The first thing you need to understand in working your way through this question is that an IRA and 401k are two separate and unique savings tools. Both were designed and intended to help you grow your overall retirement nest egg. But there are some fundamental differences to understand between the two types of plans. 401k plans are offered and handled by your employer. They decide what financial institution the plan … [Read more...]
How Much Should I Put in My 401k to Have the Best Retirement?
No matter if you’re just starting out saving for retirement or have been doing it for years, one of the most common questions people will ask is "How much should I put in my 401k?” It’s a very good question to ask! Save too little and you might end up having to work until you’re 80 years old. But then again if you save too much, you might be cutting yourself short in the present. So then how can we land somewhere in the middle? Is there some kind of optimal percentage you are supposed to contribute to your 401k plan that would take care of all your worries? Fortunately the topic of how much to save for retirement is something that … [Read more...]
Retirement Budget Planning – How Much Will You Need?
Do you have any idea how much money you’ll need each year once you’re finally retired? If you said “no”, then you’re not alone. Unfortunately as many as 41% people between the ages of 18 and 29 have never really thought about retirement planning. What’s worse is that 20% of people above the age of 60 said the same thing. While those may be facts, you don’t have to be one of those people. The absolute key to knowing how much you need to save for retirement starts with first understanding just how much you’ll need once you get there. That’s why you need to spend some time working on retirement budget planning. By doing so you’ll have … [Read more...]
How to Protect Your Assets for Retirement
Everyone wants to think that they are going to have plenty of money when they retire. They are socking away money with every paycheck, waiting patiently for the day when they can leave the workforce and live off their earnings. The trouble is that even if you have been saving diligently since you began working, you're probably not thinking about how to protect your assets for retirement. Unbeknownst to you there is always a risk that you might lose everything; particularly if your retirement accounts are directly influenced by the stock market. If the stock market takes a dive, so will your savings. Even though that's a risk most … [Read more...]
Retirement Income Strategies That Will Guarantee You Money for Life
You work for 30 years. You save your money. One day you retire and live off the savings. But then the worst happens … at some point you run out of money and have to go back to work. Unfortunately unless you’ve got a few good retirement income strategies in your back-pocket, this kind of scenario is a very real thing that could happen. And it does all the time. But it doesn’t have to. As long as your mindful of a few key elements when it comes to how and where you save your money, you could actually put together a pretty simple retirement plan and make it so you don’t have to worry about ever not having enough money to cover your … [Read more...]