That’s a 40% tax savings from investing in a regular account! And because money keeps compounding without getting hit with constant taxes, the difference over a 30-year period could mean an extra 50% in your pocket thanks to compound interest. That’s the equivalent of: Turning $10,000 ...
Consider, also, that the cost of 401(k) feescompound in the same way dividends and interest do. When additional money is added to your account, it's then available to grow exponentially for the entire time it's in there. Conversely, when money is deducted for fees, you lose the compoun...
If you were to put in more — say 8% — your company would still only put in 3%, because that’s their “up to” number, aka their max. (But, you know, put in 8% if you can. Compound interest doesn’t discriminate.) Note: You might see the same employer match written in a ...
When you have a lot of different debts to pay off. If you’re coming out of a bad debt situation, you may need to be in the trenches with this process. Since debt reduction requires a “pay as much as you can” mentality, you may find it’s easier to manually make payments each ...
Treat your 401k just likeSocial Securityand write it off completely from your mind. Do not expect either accounts to be there for you when you retire. It's just like how you should never expect the government to ever help you when you're in need. ...
2. My 1099-R also included a significant distribution from 401k to Traditional IRA at another institution. I’m 60, so that withdrawal should have no penalty… how do I document that, as the rollover and mega backdoor were on same 1099-R?
A 401k is a no-brainer way to stash money away for retirement. But how much you should contribute depends on a couple factors. Let's dive in.
In the past I would often get asked if it was possible to live in Bangkok on a 30,000 baht salary? However, that was in the past. Thankfully nowadays the average Bangkok salary is showing signs of creeping up further towards the 40,000 baht mark (and about time as well!) ...
I would be very interested in hearing what your insurance carrier has to say. I once used QB for payroll but gave that up long ago and have used ADP with great success. They now even administer the 401k program for my employees. Highly recom...
Saving is critical in two respects: 1) savings are what build the initial capital necessary to earn a meaningful income from interest alone, and 2) compound interest rates need time for a meaningful geometric effect to kick in. By not saving early enough you are not giving your nestegg the...