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 should be saving up for the future. But at the same time you've got to balance your finances against goals that are in the present such as your family … [Read more...] about How Much Should I Contribute to My 401(k) Plan? This is the Number You Need to Hit!
If you’re one of those people who are really good at saving their money diligently for retirement, then the IRS has some good news for you next year: The 2015 maximum 401k contribution has just been increased to $18,000 (up $500 from 2014). For those people 50 and older, the $5,500 catch-up limit was also bumped up to $6,000. I’ve personally been saving up to the 401k maximum for a while now and am looking forward to bumping up my contributions. By saving so much I know that I’m not only helping my family to get closer to reaching financial freedom, but we’re also taking advantage of a few other extremely important benefits. Here are what they are and what you can do to help yourself get that point too. Why Max Out or … [Read more...] about 2015 Maximum 401k Contribution Increases to $18,000 – How You Can Get There
If you are somehow managing to diligently contribute the maximum amount to your 401k and IRA accounts, then there's good news for you in 2013. The IRS contribution limits for the major U.S. retirement accounts will be increased next year! This is exciting news for anyone looking to invest more of their money without the burden of paying taxes on their returns. The Money Design November Update plan I proposed recently will get a big boost from these new increases that will help me to achieve my goals much more quickly and safely. … [Read more...] about New IRS Contribution Limits for Retirement Accounts in 2013