If you’re already contributing the IRS maximum amount to your 401(k) and would like to keep reaping the tax benefits, then I have good news for you: After-tax 401(k) contributions may be your ticket to the next level! It’s not very well known, but what most of us think of as the IRS max is actually just one piece of the puzzle. The actual total amount of money that the IRS will allow both you and your employer to contribute to your 401(k) plan is actually quite a bit higher: $55,000 (for 2018). For high-percentage savers and early retirement seekers, this information can be … [Read more...]
How We Watch TV Without Cable and Save $1,140 Per Year
Have you been looking for ways to cut your TV cable cord, but can’t quite find a service that will be comparable? If so, then I have good news for you: There are now plenty of good ways to watch TV without cable. And they’re reasonably cheap! Believe me. Finding good alternatives to cable TV was something we’ve been struggling with for years. As part of my quest to save more money and do more with less, we’ve been looking for a way to drop this $180 anchor. We like our screen-time just like anyone else. (Apparently, most of us do. According to the NY Times, the average … [Read more...]
Can I Contribute to An IRA This Year?
Question: “Can I contribute to an IRA this year?” IRA’s are great tools for your retirement savings. Not only do they offer you the opportunity to pay less taxes now, but they can also offer the same benefit in the future. So what happens if you’re already covered by a retirement plan at work, such as a 401(k), 403(b), etc.? Do you still get to contribute to one? Or will the IRS consider this double-dipping? In this post, we’ll sort through the facts and see what it takes to be able to contribute to an IRA. (If you’d like to first learn more about traditional and Roth … [Read more...]
5 Secrets About Money That the Rich Know and You Don’t
How is it that the “Rich” become rich? Were they all born into money and given trust funds as early adults? Or is there something more systematic about how they got there? Believe it or not, it has been said that 80-86% of all millionaires in the U.S. are self-made. The same figures apply to decamillionaires (those with a net worth of $10 million or more) as well. So then, what is it? What are the secrets to money that they seem to know and the rest of us don’t? In this post, we’re going to take a look at some of the strategies that the Rich and Wealthy use every day to … [Read more...]
Should I Put Money in a 401(k) or IRA First?
So you want to save for retirement. You’ve heard good things about both 401(k)’s and IRA’s. But you’re limited on funds. You’d like to save your money in both, but that’s not just happening. (At least not today.) So if you only have to pick one, which is it going to be? In this post, we’ll skip all the boring, recycled facts about retirement planning and get straight to the point of addressing this question: Should I put money in a 401(k) or IRA first? Why Either is a Good Choice First of all, understand that for most people: You can do both. It’s very common for most … [Read more...]
Is a Gym Membership Really a Big Waste of Money? Not According to These Calculations
Here’s a piece of advice you’re not going to hear often on a money blog: If you’ve got a gym membership and you love going there, it’s okay. You don’t have to quit just to save money. Really.. it’s fine. Contrary to some of the other personal finance advice you might read out there, you’re not committing some kind of financial suicide. The frugal police aren’t going to come bust you. In countless articles I’ve read, one of the first areas they always suggest you cut out of your life is that “high-priced” gym membership. And I get it. According to USA Today, the average price of … [Read more...]
How Much Should I Contribute to My 401(k) Plan? This is the Number You Need to Hit!
If there's one question about retirement planning that many people feel unsure about, it's this: How much should I contribute to my 401(k) each year? Seriously ... what's the magic answer? Is it 5%? 10%? 15%? Take a stroll around the Internet, and you're bound to find a number of opinions from reputable sites. For example, Investopedia is quoted as saying that "a good sweet spot is between 10% to 15%". That's not surprising; especially when you consider that when you're young (in your 20’s and 30’s) and just starting out, retirement can feel like such a long ways away. You know … [Read more...]
Yes, You Can Use Your Roth IRA as an Emergency Fund – Here’s the Proper Way How
If you’re struggling to save for both retirement as well as be prepared for whatever life throws your way, then here’s something useful for you to know: You may be able to use your Roth IRA as an emergency fund. Yes, because of the unique withdrawal rules for Roth IRA’s, they have the potential to serve double-duty and accomplish both goals. You can be well-prepared for the unexpected as well as work on building up your future nest egg. Since these two types of accounts are generally best kept separate, there would be some potential pitfalls to watch out for if you choose to use this … [Read more...]