Once you get involved in retirement planning, one of first questions you’ll be faced with is which kind of account you’d like to go with: A Roth IRA vs. Traditional IRA? As someone who has both, let me tell you that each one works great by their own right. In both cases, you’re taking advantage of a unique opportunity from the IRS to save and grow your money without having to pay taxes right away (or in some cases, never). Over time, when compared to a “normal” savings or investment account, these tax-advantages will add up in an incredible way. For some people, it might mean an … [Read more...]
How To Keep Our Jobs From Being Replaced By Robots
When I was 18, I had an encounter that got me noticing the phenomenon of robots replacing jobs in our society. And the sad part is how easily the person in this story let it happen. I was a teenager busing tables part-time and collecting tips. They had just opened a branch of the bank I went to inside a local super-market near my work. “Great”, I thought. “Now I can just conveniently swing by on my way to work and deposit my money." Well, little did I know, things weren't going to be that easy. Every time (it seemed) I would walk in, there was always this one grumpy bank-teller who … [Read more...]
The Power of Saving More and Spending Less – The Double-Ended Approach to Retire Early
If you’re hoping to retire sooner rather than later, then there’s more to be gained from saving more and spending less than you might realize at first. On the surface, everyone can recognize that saving a larger proportion of your income does exactly what you think it will do: Help you stock-pile more money more rapidly, and reach your nest egg target quicker. But another benefit that sometimes gets lost is the way in which our habits react. Spending less doesn’t JUST mean having more money to set aside. It requires learning how to forego that lost additional income, and adjusting your … [Read more...]
Why Do More People Invest In Actively Managed Funds vs Passive Index Funds?
If passive index funds are the way to go, then why does anyone invest in actively managed funds at all? That was the question I received when I was trying to help someone pick some mutual funds for their 401(k) plan. It's definitely a good one to ask! Over the years, a seemingly growing number of academics and financial bloggers have really been showing their love for investing with passively managed index funds (myself included). With all the major advantages and benefits they point out, it sure seems like a no-brainer that this is the way to go. Yet, when you take a closer look at … [Read more...]
Check Out My Retirement Planning Interview with the Financial Freedom Community Podcast
If you've ever wondered what it's like to talk to me in person about retirement planning, then I've got something very special for you! You can check me out in my first-ever podcast interview with Joel Parker from the Financial Freedom Community at this link here. Or if you normally listen to podcasts on your smartphone or tablet, then click the app, search Financial Freedom Community, and go to "MoneySmarts 011: Preparing For Retirement with DJ Whiteside (MyMoneyDesign.com)". What kind of topics do we cover? How I got into this whole personal finance-thing in the first place. … [Read more...]
Introducing My New Site: 1,000 Ways to Save
Lately I mentioned that I was working on a new niche site (if you’d like to call it that), and so I wanted to take the opportunity to introduce you to it. The site is called 1,000 Ways To Save, and by the time it matures, this site will literally be a collection of over one thousand different ways you can spend less and save more! The idea behind this 1000 Ways To Save is to challenge the excuse that I often hear people hiding behind when it comes to money: “Oh, I’d love to save more money towards [whatever goal], but you know … we’ve just got so many bills. I couldn’t possibly save … [Read more...]
The Dangers of Early Retirement
MMD: The following post is a guest contribution from Deacon Hayes @WellKeptWallet.com. It's about a topic that I think about often: How will I constructively make the most of my time once I achieve financial independence? There are a lot of things about retiring early that people find enticing! The option of having to work ten, twenty or thirty years less than most people work brings with it many attractive benefits. First, there is the freedom. Having enough income from investments to do what you want, when you want means you are no longer forced to live under the schedule of the … [Read more...]
Could an Irrevocable Trust be the Key to Leaving a Financial Legacy?
As if the decision in estate planning over whether to create a will or open a trust isn’t confusing enough, I’ve come to understand (on a personal level) that even this may not be sufficient for ensuring your lifelong savings get passed on to your loved ones. In short: With the way things work now with elder care, there may not be anything left to give! Here’s my story. Recently, my wife’s grandparents both developed a very bad case of Alzheimer’s, and somewhat rapidly. This has caused the family to make a quick decision to move them from their residence and into the care of a nursing … [Read more...]