Category: Retirement

Which would you prefer? – The Dentist or Personal Finance

The dentist or personal finance talk which is worse, is money talk really that bad or are people just scared to disclose their situations. In all my research those that get together to talk about money for the most part do great at growing it. Millionaires love to talk about the intricacies based on increasing monetary value aka Money. Compound this on top of the principle idea, thus giving the founders who talk about money a spring board leap above the rest of those individuals who pester my mind with nonsense gab.

When I am expressing to discuss money, I am not asking anybody to give up how much you’re worth or what you’re income is. All I am attempting to convey is for people to step up and just give an opinion, share a financial story, or make an attempt to grow your knowledge of finance by reading and talking. If you feel any sense of urgency like I do then you know that time is passing super fast and we need to take action now.

If your not about action than your malfunction in life is best kept to yourself. Now let’s form a circle of networked based individuals who can pull and multiply resources with ease by not giving up, being persistent, having a drive for more out of this life.

Success is measured in many ways and I view it as:

1. Having the things you need not want
2. Living within your means not living extravagantly
3. Leaving a legacy for those important in your life and making a difference in your community

All of this is possible by succeeding in the money game and gaining freedom from a 9-5 type of employer.

I welcome any ideas, comments, and any influential discussions that you may have on this topic. If you prefer to talk about getting a tooth pulled then do not respond because this is a financial blog dedicated to bringing about change in the personal finance world. Those individuals that are learning how to really take advantage in this new era of an economy, increasing cash flow, maximizing investing techniques, and growing net worth I look forward to hearing from you.

Leave a comment below,

Thanks,

Retirement Plans

Retirement Plans

401K-is a feature of a qualified profit-sharing plan that allows employees and or employers to contribute a portion of their wages to individual accounts. Elective salary deferrals are excluded from the employee’s taxable income (except for designated Roth deferrals). Distributions, including earnings, could be included in taxable income at retirement (except for qualified distributions of designated Roth accounts).

403B– tax-sheltered annuity (TSA) plan is a retirement plan, similar to a 401(k) plan, offered by public schools and certain 501(c) (3) tax-exempt organizations. An individual may only obtain a 403(b) annuity under an employer’s TSA plan.

457-Plans of deferred compensation are available for certain state and local governments and non-governmental entities tax exempt under IRC 501. They can be either eligible plans under IRC 457(b) or ineligible plans under IRC 457(f). Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years. Ineligible plans may trigger different tax treatment under IRC 457(f).

409A-applies to compensation that workers earn in one year, but that is paid in a future year. This is referred to as non-qualified deferred compensation. This is different from deferred compensation in the form of elective deferrals to qualified plans (such as a 401(k) plan) or to a 403(b) or 457(b) plan.

Traditional IRA-tax deductible individual retirement account that has strict eligibility requirements based on income, filing status, and availability of other retirement plans (mandated by the Internal Revenue Service). Transactions in the account, including interest, dividends, and capital gains, are not subject to tax while still in the account, but upon withdrawal from the account, withdrawals are subject to federal income tax (see below for details).

Roth IRA-is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA.

-You cannot deduct contributions to a Roth IRA.

-Qualified distributions are tax-free.

-You can make contributions to your Roth IRA after you reach age 70 ½.

-You can leave amounts in your Roth IRA as long as you live.

SEP IRA-A SEP plan allows employers to contribute to traditional IRAs (SEP-IRAs) set up for employees. A business of any size, even self-employed, can establish a SEP.

Simple IRA Plan– (Savings Incentive Match Plan for Employees) allows employees and employers to contribute to traditional IRAs set up for employees. It is ideally suited as a start-up retirement savings plan for small employers not currently sponsoring a retirement plan.

        Just wanted to give my readers a brief description and to list the many options we all have to contribute to a retirement plan. At any stage currently in your life you can make contributions to one of these plans depending on how you are employed even self-employed people have options. Also you can effectively reduce your taxes by contributing to one of these plans which is a win-win situation for anybody. Leave a comment to notify us if you agree or disagree with contributing to these plans. In addition to this if you would actually contribute to more than 1 plan to help you boost your retirement accounts? See IRS.gov for further details on these specific plans.

The picture above is your view after 25 years of contributing to one of these plans.

As always do not forget to Watch your Money!

Early Retirement

A coworker of mine found an interesting story of a couple who retired in their 40’s and are now traveling all over the world for fun. How did they do it? Well you can read their story of success over at www.wherewebe.com it’s a great website with actual pictures of their adventures and journeys. If this couple can actually do the impossible, can others do the same? I find this story to be very inspirational, but I am questioning how much they had to sacrifice to get to retirement. My first assumption is they sacrificed a lot, but I think a story like this speaks volumes to what is possible in life. Just have to stay focused on your financial goals and save unexpected windfalls towards those goals. Even if you save half of the unexpected income, that action alone gets you one inch closer to your victory lap.  
Now I would like you to take a few minutes to comment back your answers to the two questions below:
–What age do you see yourself retiring at?
                I would like to retire at age 45.
–What would you do with all the free time post retirement?
                Free time would be a combination of traveling, volunteering, learning new skills, and family time. All these things bring me great joy, and I figured I could get fully immersed in all of them.
My Quote- Do what you love and live like it’s your last!
                So if you want to be free of the grueling 9-5 routine, stick to your financial goals. Live modestly now and don’t regret your decisions because ultimately the prize of reaching retirement early will pay off in years of freedom later. Don’t forget to watch your money!