Should I Do a 401k to IRA Rollover?  The Benefits and Drawbacks

401k to ira rollover

Recently during a discussion with my money coach client there was a very important question that came up:  “I have an old 401k with a former employer that is still sitting right where I left it.  I’m wondering if I should make a 401k to IRA rollover or simply leave the money right where it is?” That’s a really good question. I’m sure for a lot of people (myself included) that the money you have in your 401k account is probably the largest percentage of your wealth you have saved up – anywhere!  Even if you’ve got nothing more than the average 401k balance of $81,000 as reported by Fidelity, that’s still a very serious amount of retirement savings that you want to be putting to work as hard as possible. Unfortunately, however, … [Read more...]

Some Unconventional Thoughts on Investing for Your Retirement

Investing for Your Retirement

When I first started in financial planning, this would be back in the 1980’s, investing for your retirement was simple.  When you were young, the theory went, you dutifully started putting away a little bit of your salary each month.  The amount was as high a percentage of your income as you could manage.  It was supposed to be a sacrifice.  Give up something now to have something later. You invested in the stock market, of course.  Equity returns were the way to go and you had plenty of time to ride out cyclical fluctuations.  Your risk return profile indicated a higher acceptance of risk. You also bought a home.  This was more a place to live than a retirement investment.  Still, it increased your net worth. As you got older you … [Read more...]

What To Do When You Retire Early – Here Are My Plans

beach and laptop

Answer me honestly: If you never went to work again, what would you do with the rest of your life? It’s a simple question.  But one where the answer is probably more complex than you realize. You see recently I’ve been giving the matter of what to do when you retire early some serious thought. I don’t there’s anyone out there who hasn’t fantasized about the day when they finally have enough money to call it “quits” at work and do whatever it is they want from that point forward. Designing your financial freedom.  It’s what this blog is all about. But recently I’ve been asking myself what happens AFTER you get there?  What is it that is truly so wonderful and waiting for me on the other side of the early retirement gates?  Can … [Read more...]

The Ultimate Guide to How to Have a Tax Free Retirement

protect money

How incredible would it be to have a completely tax free retirement? I’m serious.  You would owe no taxes. No, you won’t have to live in poverty.  In fact if you’ve got enough savings you could withdraw over $100,000 and still not owe the government any money. Is that even possible?  Of course it is.  Lots of wealthy Americans take advantage of tax loop holes every day to pay a lower tax rate than their peers.  There’s even a famous statement from Warren Buffett where he says that he is paying a lower tax rate than his secretary. Fortunately for you, we’re going to do a little better than that in this post.  We’re going to see if we can’t find a way to pay NO taxes at all! All we’ll need is to be creative with how we plan to … [Read more...]

Understanding Your Senior Benefits

Image Of Senior Man Giving Woman Piggyback Ride

The following contribution is from a reader of My Money Design.  If you’d like to write for us, please feel free to contact me. If you are already into your retirement years, or are close to retirement, it is important that you understand the various senior benefits that are available to you. Both the federal government and the local states and territories have programs available to help senior live on a limited budget. To get everything that you deserve, it is vital that you know what benefits are available and how to determine if you are eligible to receive them. Below is a look at some of the major benefits offered to seniors as they reach their retirement years.   Age Pension If you are a man over the age of 65-years old, … [Read more...]

Did I Just Find Another Great Retirement Saving Strategy? Understanding the SEP IRA Rules

Business Man Looking With Magnifier

I think I may have found another good one. A few weeks ago when I laid out my ultimate plan for becoming financially independent, I thought I had really done a pretty good job of optimizing every single angle of my retirement savings options. My 401k.  My IRA.  Is there anything else I’m possibly missing where I could find even MORE tax-deferred savings? Apparently there is! And as it turns out it has a lot to do with this blog.  So all of my blogging friends or people earning any kind of side income may want to listen up …   … [Read more...]

Traditional vs Roth 401k – Is the Roth Really the Better Deal? Maybe Not!

Dollar Floating From Gift Box

Check this out.  Recently my employer made a big announcement to our 401k plan: We now have the choice to save our money under a Roth option if we want to! If you already have a Roth IRA, then you’re probably already familiar with how this would work.  As a quick refresher, the Roth option basically means that: Your contributions to the 401k will be invested using after tax money (i.e. you’ll pay your taxes now rather than later) Your money still grows tax free just like it did in a regular 401k When you finally retire, you DON’T pay any taxes. When you weigh a traditional vs Roth 401k, the Roth is considered to be a good thing for you and your money for a lot of reasons.  By paying your taxes now, you’ll enjoy a tax free … [Read more...]

My ULTIMATE Plan for Becoming Financially Independent – December 2013 Update

Money Plan

For weeks I’ve been hinting at it, and at last I’ve finally put it all together!  The end of the year and the beginning of the new one is the perfect time to sit down and revise your goals.  So what better time than now to publish the latest edition of my ultimate plan for becoming financially independent! This is not a retirement plan you will find anywhere else.  How can I make such a bold claim?  Because my plan for financial independence does what no other plan on the web does – use real numbers to show just exactly how much money I plan to generate and how I will get there! … [Read more...]