Recently I wanted to find out: How can I start making contributions to an HSA? HSA's (Health Savings Accounts) have been gaining a lot of buzz in the personal finance community. In case you've never heard of them, HSA's are a type of special investment account in the U.S. you can setup to help bank money that can be used for medical expenses - tax free! This means that similar to your retirement accounts, you get a tax-break on the front-end ... just for saving your money. For years, we've been using an FSA (flexible spending account) to help stash tax-advantaged funds that we can use for medical expenses. But the problem there has been their "use it or lose it" policy - if you contribute too much to the plan and don't redeem … [Read more...] about Can I Make Contributions To An HSA?
Personal Finance
Roth IRA Contribution Limits and Using the Backdoor Conversion to Get Around Them
Would you like to contribute to a Roth IRA, but been told you make too much money to do so? According to the IRS, your Roth IRA contribution limits can be affected by how much you earn as well as your tax filing status. In other words, the more money you and your spouse earn, the greater the chances your ability to put money into a Roth will be reduced … all the way down to zero. However, I’m here to tell you: You CAN still contribute to one; even if you earn more than the IRS Roth IRA income limits. You just have to use a little known technique of what’s known as a Backdoor Roth IRA conversion. More on that below. First, let’s go over the conventional rules for how much you can contribute to a Roth IRA. Roth IRA … [Read more...] about Roth IRA Contribution Limits and Using the Backdoor Conversion to Get Around Them
How to Turn $50 Dollars Per Paycheck Into $163,732
Do you wish you could be saving more money for retirement than you are right now? It’s easy to read a couple of personal finance blogs and feel like you’re being left behind if you’re not budgeting yourself down to the bare-bones or saving up an obscene amount of money. But don’t get discouraged! It might benefit you to know that even small changes to your saving habits can still help aide in your retirement planning success. How small of a sacrifice are we talking? My challenge to you: Start by spending $50 less per paycheck and redirecting that savings back into your tax-deferred retirement account. Yes … even an amount that minimal can still make quite a bit of difference between now and the day you plan to retire. How … [Read more...] about How to Turn $50 Dollars Per Paycheck Into $163,732
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 standard of living. This, in turn, and completely affect what our target nest egg is ultimately. Hence, spending less and saving more could really be … [Read more...] about The Power of Saving More and Spending Less – The Double-Ended Approach to Retire Early
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 where the money is actually going, it may surprise you to learn that the numbers paint quite a different story. In the US, some $9.8 trillion in … [Read more...] about Why Do More People Invest In Actively Managed Funds vs Passive Index Funds?
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. Where my wife and I are at on our personal path to financial independence, and why I'm not trying to push the date up sooner anymore. How using … [Read more...] about Check Out My Retirement Planning Interview with the Financial Freedom Community Podcast
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 company you work for. If you want to travel, you can. If you want to live without an alarm clock, go for it. When you retire early your time … [Read more...] about The Dangers of Early Retirement
Travel Hacking Chapter 4 – How We Got an All-Inclusive Trip to Los Cabos, Mexico for Just $95!
What’s better than getting your entire summer family vacation to Florida for almost-free? How about ALSO getting a second vacation to the warm sandy beaches of an all-inclusive luxury resort in Los Cabos, Mexico ... for just $95 out-of-pocket? Yes, it’s true! After strategically travel hacking our way to a whole bunch of Chase Ultimate Rewards (UR) points and scoring nearly-free flights, a hotel, and rental car, we decided to go “all-in” and maneuver our remaining points towards yet another incredible vacation for barely any money at all! Here’s the back-story … As many of you already know from my previous Travel Hacking Chapters 1-3, originally our goal was to reduce the amount of money we were going to spend in 2017 by trying out … [Read more...] about Travel Hacking Chapter 4 – How We Got an All-Inclusive Trip to Los Cabos, Mexico for Just $95!
