Every now and again when I read through the headlines on my favorite money news sites, I see the same desperate-for-attention headlines proclaiming that “retirement is dead” and that we basically have no hope of ever saving enough money. How do they draw those conclusions? The usual suspects cited are the decline of pensions, the deflating of Social Security and the rise in costs as reasons why none of us can save and why we’ll all need to work until we are 80.
And then there is my personal favorite: The 401k. They talk about the 401k like it’s a James Bond villain. When they compare the pension vs 401k, they describe it as a horrible and inefficient means for retirement. Basically, their message is that the 401k killed retirement.
That is complete nonsense. The 401k didn’t destroy our chances at the American Dream … we did.
The tagline to My Money Design has always been designing financial freedom. For as long as I’ve been into reading financial books and blogs about money, I’ve seen a lot of them try to answer the question of what is financial freedom. However, I feel as though the weight of this term often gets lost or trivialized.
In this post, we’re going to layout a definition for financial freedom and explain where we need to focus in order to achieve it.
You’ve probably heard of both of these terms, but do you really know the difference between a 403b vs 401k?
Even though in the My Money Deisgn household we have both types of plans, to be honest there was a long stretch of time where I didn’t know what the major differences and similarities were between the 403b or 401k.
So like most things financially, I jotted down some questions and began looking into each one to find out the answers. Below are my notes on what I found out:
Happy New Year everyone! I hope everyone is safe and having a smooth transition into this new start.
It seems this event is always marked with a great deal of optimism because people feel like they have a symbolic marker from which they can wipe the slate clean and start out fresh. It might be eating habits; it might be quitting your bad vices. For me, it always marks a time to re-evaluate our long term financial goals and see if our actions will get us to where we want to be.
Not too long ago, I was trying to demonstrate how NOT taking full advantage of your 401k matching contributions offered by your employer was causing you to lose out on more money over the course of your career than you probably thought!
While it’s never too late to get your personal finances in order, one simple mistake I see people making all the time that kills me is when they wait as late as 5 to 10 years before they finally get with the program and start contributing enough to their retirement plan to get the full 401k matching from their employer. I beg you – Please don’t waste another year! Remember time is one of your greatest assets as an investor, so don’t squander it!
In this post, I’ll show you just how powerful taking advantage of your full 401k matching from your employer as early as possible can be for you.
The following post was provided by guest contributor Angie Picardo of NerdWallet. If you are interested in being a guest contributor for My Money Design, please feel free to contact me.
It’s a responsibility that practically all of us have, not only to ourselves, but also to our families. A strong retirement plan now will literally pay dividends later. It’s not easy to fit it into your monthly budget at times, but it’s become a necessity. With continuing advancements in medicine and healthcare, the average life expectancy is consistently rising, and along with dwindling Social Security funds, it’s up to us to create a retirement saving strategy that fits our goals and creates enough income for us to live upon.
So how do we stop making excuses and get started?