My Money Design

Designing Financial Freedom

pension

The Pension vs 401k – The 401k Did Not Kill Retirement

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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 … [Read more...] about The Pension vs 401k – The 401k Did Not Kill Retirement

SB1040 Pension Plan Options – Conclusions

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For the last few posts, we’ve carefully taken a look at each of the options of SB1040 (known as Senate Bill 1040), a piece of legislation passed here in Michigan which forces all state school employees to change their retirement pension plans by selecting from one of three options. If you’re just now joining us, you may want to read my SB1040 Introduction post first. Throughout each of the options, there were a lot of ups and downs. Some put more money in your pocket right now while others have better long term potential. In order to really compare each of these options side-by-side, the … [Read more...] about SB1040 Pension Plan Options – Conclusions

SB1040 Pension Plan Options – Option 1 & 2

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In this post we’re going to take a look at Option 1 & 2 of SB1040 (known as Senate Bill 1040), a piece of legislation passed here in Michigan which forces all state school employees to change their retirement pension plans by selecting from one of three options. If you’re just now joining us, you may want to read my SB1040 Introduction post first.   … [Read more...] about SB1040 Pension Plan Options – Option 1 & 2

SB1040 Pension Plan Options – Introduction

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When you were a kid, there were a number of stories and fairy tales about coming to a fork in the road and having to choose the right path to take. Of course, you can only choose one. And once you choose it, there’s no turning back. Some of the roads will lead you to safety, and other will lead you to danger! Unfortunately for the teachers of Michigan and my wife, this isn’t just a child’s story – it’s SB1040. SB1040 (short for Senate Bill 1040) is a piece of legislation that was passed here in Michigan which changes the pension plan options for all state school employees. Basically, each … [Read more...] about SB1040 Pension Plan Options – Introduction

When Is the Best Time to Start Saving for Retirement?

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Once you have your reasons for saving money and your motivation to one day retire, there’s only one thing left to do: • Start saving today! Why? One simple reason: The effects of compound interest. Simply put, when you save your money, the effects of compound interest cause your money to grow far beyond anything you could have ever saved on your own. See for yourself: … [Read more...] about When Is the Best Time to Start Saving for Retirement?

Help! I’ve Got 401k Questions! – Your Complete 401k Guide

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Let me be the first to say “Congratulations”! Despite the intimidating packet of papers you need to review and fill out as well as the dozen 401k questions you probably have, this is a great opportunity for you! Not only will you be starting down the road to financial freedom (in other words: retirement), but you'll also be given the opportunity to make FREE MONEY! Yes, I said free money! Why is it free? 1) The money you put away comes out of your paycheck BEFORE taxes and it grows tax free until you retire! 2) Your company will likely (as a lot of companies often do) kick in a little bit … [Read more...] about Help! I’ve Got 401k Questions! – Your Complete 401k Guide