When it comes to retirement accounts, there's one debate that almost everyone must consider: A Roth IRA vs. Traditional IRA - Which one is better? What are the differences, and how do I know which one is the right one for me? As someone who has both a Roth and a Traditional account, let me tell you: Each one has traits that can be very valuable to you in their own way! In general, no matter which one you choose, you’re doing a great thing by 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, … [Read more...] about Roth IRA vs. Traditional IRA – Which One Is Better for You?
Have you ever thought to yourself: What's the least amount or minimum retirement savings I could get away with? Don't be bashful about asking it. It's a perfectly valid question to consider; especially when you think how little retirement savings most people actually have. (In case you're wondering, its $107,000 for Americans between the ages of 55 and 64 according to data from the Government Accountability Office (GAO).) While the major media outlets would have you believe that you need somewhere between $2 and $3 million dollars, you might be pleasantly surprised to learn that … [Read more...] about What is the Minimum Retirement Savings You Could Comfortably Live On?
Are you wondering how to maximize your 401(k) contribution without feeling like you won't have any money leftover to spend? Hey, I get it! When I was just starting out as a young professional, I started off by contributing what I thought was a decent amount to my 401(k) retirement plan (10 percent or so) ... But as we started really defining how much money we'd eventually need to retire, especially as our goal timeline transitioned from our 60's down to our 40's, it quickly became apparent that our savings rate wasn't enough. If we were going to retire early successfully, then we … [Read more...] about How To Maximize Your 401(k) Contribution
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 you … [Read more...] about How Much Should I Contribute to My 401(k) Plan? This is the Number You Need to Hit!
After reading enough personal finance blogs, this whole financial independence thing starts to sound pretty good! But what exactly are the steps to retire early? How does someone acquire enough money to never have to work again (if they choose)? What was the path that got them there? And more importantly, what are the habits and routines in our daily lives that we can adopt that will help make early retirement an option? You might be surprised to learn that much of achieving financial independence has less to do with earning a lot of money and more to do with how you go about getting … [Read more...] about 10 Steps to Retire Early – What You Should Be Doing Right Now!
Admit it ... You’ve probably asked yourself “How do I become a millionaire?” more than once in your life. Don’t be shy! I can certainly tell you that I have. With all the images of happiness and security we see associated with wealth, how could you (or most anyone) not wonder about such a thing. Regardless of what your actual financial goals are, the act of having a net worth of one million dollars or more is still heavily regarded as quite an accomplishment! In fact, in a survey conducted by investment service Charles Schwab, less than 10% of Americans had accumulated a net worth of … [Read more...] about How to Become a Millionaire – The Simple Way to Save $1,000,000
Do you think you need 30 years of saving to make your retirement happen? Do you think you need to make a lot of money? Or know what the best stocks are to invest in each year? Of course not! I’m a huge fan of early retirement stories of the everyday-man; stories that prove that good-ole fashioned saving, simple investing, and living within your means CAN and WILL provide you with not just the means to enjoy a healthy retirement, but (when used correctly) the opportunity to retire 20 years ahead of the typical schedule! One incredible example of this has been captured in the … [Read more...] about How This Couple Was Able to Retire Early After Just 15 Years of Saving
Can you “buy” passive income? Of course you can! Essentially this is the whole point of saving your money and stashing it away for financial freedom (or retirement). "A dollar saved is a dollar earned" ... or so the old saying goes. But is this really true? How much is a dollar saved really worth in 10, 20, or even 30 years? Or to be even more practical, how much financial freedom can this dollar actually produce for me every year in retirement? In this post, we’re going to go through an analysis of the savings process and see just exactly how much each dollar translates … [Read more...] about How Much Passive Income Will a Dollar Saved Today Buy Me in the Future?
Whenever I first get talking to someone about personal finances, one of the first questions they have is: How much do I need to save for retirement? It's a heavy question, I know! Save too little and you might end up having to go back to work when you don't want to. But set your target too high, and you might end up working harder and saving longer than you really need to. Believe it or not, the math behind figuring out how much you need to save to retire is actually amazing simple! ... As in just one calculation ... That's right. You can go online and find some complex … [Read more...] about How Much Do I Need to Save for Retirement? The Incredibly Simple Answer
If you’ve got dreams of retiring early by age 55 or sooner, then you’ll be very delighted to know: This is a goal that is definitely well within your reach! Believe it or not, our ability to reach financial independence is something that is completely dependent upon our own decisions. It doesn't matter if you're in your 30's, 40's, or any age. If you want to make working optional and retire by age 55, then you just have to be willing to stick to a strategy that will get you there. Forget about the things you think are holding you back. In no place do we see this more than … [Read more...] about How to Retire By 55 (or Sooner) on a Salary of $50,000 or Less