I’ve focused a lot on Coronavirus and how it has or may affect retirement plans for many. I see no reason to change that theme now. While parts of the country are starting to re-open, many areas are still largely shut down. There is also a lot of uncertainty surrounding opening up parts of the country. What happens in infections spike in areas that are reopening and they have to shut down again? Many predict, such a situation is a real possibility for places opening without a proper plan. It can be easy to become cautious regarding saving for retirement Continue reading Staying Focused on Retirement During Trying Times
Life–let alone, retirement–can be expensive. Thus, it’s not uncommon for many Americans to hold down a side hustle to earn a few extra dollars. For some, that may mean getting a legitimate second job, while others may look to turn a hobby into a source of extra income. If you decide to go the way of turning a hobby or interest into a business, be sure that you take advantage of the retirement savings benefits. Yes, you can use a small business, side gig to help bolster your nest egg, thanks for SEP IRAs. A SEP (Simplified Employee Pension) IRA Continue reading Got a Side Gig? Get Yourself a SEP IRA!
It’s been over a decade since the stock market hit the lowest point of the recession in 2009. Since then, it’s done nothing but seemingly improve. After a decade of seemingly (key word here) bullish activity, one would think that a lot of investment portfolios and retirement accounts would be reaping the benefits, but that’s not necessarily true. In fact, the majority of Americans will still struggle to save enough for retirement. The biggest reason? The majority of stocks are still owned by the richest few Americans. While many Americans were able to bolster their nest eggs by investing during Continue reading A Bullish Stock Market Doesn’t Equal Retirement Riches
They say that retirement is a time to let things and to relax. However, that isn’t how reality works. Unless you are filthy rich, you will have to keep money on your mind when you get into retirement. That can mean a lot of things, from how much you have saved to whether you can afford certain luxuries (i.e. vacations, nice cars, constantly dining out, etc.). Reminding you to keep your money on your mind, though, does not mean I am encouraging you to worry about your money, though. There is a big difference between fretting about your finances and Continue reading Keeping Your Money on Your Mind
Not all income is treated the same by the IRS. There are actually multiple types of income that you could generate and which are taxed differently from one another. For example, the income your generate from working is looked upon differently by the IRS than income generated from the sale of stock. Thus, it’s important that you understand the different types of income and how they are taxed. I’m not going to get into a detained examination in the blog post, but I will describe them in a nutshell. The first type of income is ordinary income, which includes things Continue reading Do You Know the Different Types of Income?
The idea of no longer having an income can be a bit frightening and worrisome as you near retirement. If you’ve had a good and thriving career, those paychecks have probably provided a sense of security and consistency in your life. Even if you’ve saved a hefty nest egg for retirement and carefully planned for how you will spend it, you may still get nervous at the thought of no longer having an income stream. Now, depending on your retirement plan, you may have a passive source of income or a portfolio that will continue to bring in returns, but Continue reading Don’t Let Money Concerns Ruin Your Retirement
It’s not talked about nearly as much as Roth IRAs or regular 401(k), but you can have a Roth 401(k). No, not every employer retirement plan offers it. Yes, it does have many of the same advantages as a Roth IRA. If you know what makes a Roth IRA so enticing then you can probably guess the how a Roth 401(k) works. If you guessed that it’s because your contributions are taxed when they go into your account and not when they are distributed, then you are correct. This can be very advantageous, especially if you have an understanding of Continue reading Roth IRA? What About a Roth 401(k)?
Your retirement goals and plans are important, but you will never reach them unless you have a career with which to fund such pursuits. Having a stable and lucrative career is fundamental to the retirement saving game. If you don’t earn enough then you are going to have an awfully hard time saving for life after you stop working. Thus, it’s wise to make focusing on your career a part of your financial and retirement savings plans. This means making sure that you stay relevant both in your field and at your place of employment. You can do so by Continue reading Don’t Forget About Your Career While Retirement Planning!
Many Americans don’t really put much thought into the difference between “financial” planning and “retirement” planning. After all, they both focus on retirement and saving enough to enjoy that period in your life. However, if you talk to a certified financial planner, they’ll probably tell you that there is a difference. Financial planning focuses on investments and saving strategies that will help you meet your retirement goals. Simply put, it’s the work and effort you put in as you save for retirement. Whereas, retirement planning tends to zero in on your spending once you enter into retirement and your paychecks stop. Financial Continue reading Do You Know the Difference Between Retirement Planning and Financial Planning?
As the government shutdown moves into it’s fourth week, it’s a sobering reminder for many about the importance of having an emergency fund. No doubt that some of the 800,000 federal employees are learning about the importance of having an emergency fund the hard way. Furthermore, there are thousands of lower paid workers in that group who most likely don’t even make enough to have an emergency fund and may have to turn to unemployment benefits or look for new jobs altogether. Before going further, I’d like to be clear that when I saw “emergency fund,” I mean a stash Continue reading Could You Survive an Income Emergency?