If you’ve got questions about how 401(k) matching works, there’s only one phrase you need to remember: Don’t leave free money on the table! 401(k) employer matching contributions are one of the biggest reasons why American workers should utilize their 401(k) plans. Simply put, they are an opportunity to earn more money from your employer without any extra effort. When some generous employers match their employees’ 401(k) plans dollar for dollar, this is effectively the same thing as getting a 100% return on your investment! When was the last time you found an investment opportunity like that? And what’s crazy is that all you have to do to take advantage o this opportunity is to merely participate in your company’s … [Read more...] about How 401(k) Matching Works – Don’t Leave Free Money on the Table!
Whenever someone asks “What should I be investing in?”, they’re usually looking for some kind of magic stock or once in a lifetime opportunity that will make them rich. But in reality, there is something far greater that everyone could invest in that will pay them back over and over again for the rest of their lives. It’s called their “financial education”. A financial education is one of the single greatest assets a person can have. Yet, for too many, it often gets ignored or even neglected altogether. Take, for example, the topic of saving for retirement. This is something we all know we must do. But according to this article from Money, less than 40% people surveyed can answer basic questions … [Read more...] about How a Financial Education Can Bring You Success With Money
Are you wondering about the benefits of starting a revocable living trust vs just a will? For years, my wife and I put off what we know we have to do as responsible adults and parents, and create a will. Without a will, the courts decide what happens to everything you leave behind: Your kids, your money, the house, the family dog, … everything! Ask yourself this simple question: If my spouse and I were to get hit by a car tonight, is there anything in place to protect all of those things I just mentioned? If the answer is “no”, then you absolutely need to sit down and do a little estate planning. I know … it’s hard. It’s not fun to think about times when you’re not here anymore. It took me battling cancer and a … [Read more...] about Why We Started a Living Trust Instead of Just a Will
Question: Is it possible to retire on $500K (i.e. $500,000) in your 50’s and 60’s? Unfortunately, not all of us are great savers. Most financial articles will recommend that you’ll need at least $1 to $2 million dollars in savings before you can even consider retirement. But the reality for a large segment of the population is anything from that. To give you an idea, a study from the Government Accountability Office found that those savers between the ages of 55 to 64 have an average of just $104,000 in their retirement accounts. This is not surprising at all. With the responsibility of saving for retirement having shifted from company-sponsored pensions to individuals, the shocking truth for many people will soon be … [Read more...] about How to Retire on $500,000 In Your 50’s or 60’s
The foundation of any solid financial freedom plan is in knowing the best ways to budget your money and save effectively. It’s absolutely fundamental to preserving your wealth. Have you ever wondered why so many lottery winners end up going broke a short while after winning? Fortune reports that nearly a third declares bankruptcy within 5 years. You’d think that all those millions of dollars would solve their financial problems. But as it turns out: If you don’t know how to budget your money normally, than more money isn’t going to make a difference. But “budgeting” … Most people cringe at the word! And likely because they get the false idea that every dollar they spend is somehow bad (which is not true at … [Read more...] about The 10 Best Practical Ways to Budget Your Money and Save More
Saving your money into a 401(k) or IRA can have some very powerful wealth-building benefits. But clearly one of the biggest drawbacks is that you’re not allowed to access your money for years or even decades. If you try to take it out sooner, than you'll have to pay a penalty! So what happens if you need the money now? What if life becomes difficult and you need to pull the money out for some kind of emergency? Or what if you have done an excellent job of managing your finances and would like to retire early? How can you work around this problem and gain early access to your savings? Don't worry. The IRS knows that sometimes life can throw you curve-balls, and because of this they've made several exceptions … [Read more...] about When Can You Withdraw From Your 401(k), IRA, and Other Retirement Savings?
If you're curious to find out what's the difference between an IRA and 401(k) retirement plan, then this is the post that is going to explain everything you need to know! For most U.S. employees, when it comes to saving for retirement, they are offered two main tools to work with: A 401(k) and IRA. Though a lot of people will likely have the opportunity to contribute to both, sometimes the amount of money you plan to set aside for retirement each month can be limited by all the other financial demands going on in your life. That's when you might find yourself having to choose between one or the other. So then, what do you do? Which retirement plan do you choose to stash your savings in hopes that it will grow to its maximum … [Read more...] about What’s the Difference Between an IRA and 401(k)? Which is Better for My Retirement Savings?
Are you using the power of compound interest to your advantage? Have you ever wondered how compound interest works? Or better yet, why compound interest can make you so INCREDIBLY RICH over time? Albert Einstein has often been credited as famously stating "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it." Great quote! But it just barely begins to describe shear potential behind this wonderful financial phenomenon. When used correctly, compounding interest is what can take your modest, periodic savings and turn it into thousands or even millions of dollars later on in your life. And the best part is: You don't have to be financial wizard to take advantage of … [Read more...] about The Power of Compound Interest and How It Can Make You Rich!