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The 401(k) Age 55 Rule for Early Retirement Income

Most people in the U.S. know that when it comes to retirement planning, if you don’t wait to withdraw your funds until age 59-1/2, then there will be a pesky 10% penalty to pay. However, there is one little known rule when it comes to 401(k) plans. It’s called the 401(k) Age 55 Rule, and it basically allows you to start making penalty-free withdraws as soon as the year you turn age 55. Here’s … [Read more...]

How Does Social Security Factor Into Your Retirement Safe Withdrawal Rate?

Have you ever wondered what kind of impact Social Security makes on the retirement safe withdrawal rate you choose? When it comes to retirement planning, lots of people know that there exists some withdrawal rate that is considered “safe”. The most popular of these rates is of course the 4 Percent Rule. This was popularized in the 1990’s by Bill Bengen and The Trinity Study. … [Read more...]

What is the Minimum Retirement Savings You Could Comfortably Live On?

Have you ever thought to yourself: What’s the least amount or minimum retirement savings I could get away with? It’s a perfectly valid question to ask; especially when you consider how little retirement savings most people actually have. (Fidelity estimates the average is around $273,600.) While the major media outlets would have you believe that you need somewhere between $2 and $3 … [Read more...]

What’s the Difference Between a 403(b) vs 401(k)?

Have you ever wondered about the differences between a 403(b) vs 401(k)? In our house, we have both.  I work as an engineer and have a 401(k).  My wife is a teacher and has a 403(b). Early on when we first got our jobs, I honestly knew nothing about either plan.  We each just simply filled out the forms and really thought nothing of it. A few years later when I started taking more and more of an … [Read more...]

3 Ways to Retire Early with Better Budgeting Techniques

People who know that that their discretionary spending budgets are entirely too high may want to change their ways but they lack willpower. When you spend five days a week traveling for work, spend most of your income on housing, and only have a few hundred dollars a month to call your own, you might have difficulty resisting splurging. The rewards associated with saving money can’t be felt … [Read more...]

Roth IRA Contribution Limits and Using the Backdoor Conversion to Get Around Them

Would you like to contribute to a Roth IRA, but been told you make too much money to do so? According to the IRS, your Roth IRA contribution limits can be affected by how much you earn as well as your tax filing status.  In other words, the more money you and your spouse earn, the greater the chances your ability to put money into a Roth will be reduced … all the way down to zero. However, I’m … [Read more...]

How to Retire on $500,000 In Your 50’s or 60’s

Question: Is it possible to retire on $500K (i.e. $500,000) in your 50’s and 60’s? Unfortunately, not all of us are great savers.  Most financial articles will recommend that you’ll need at least $1 to $2 million dollars in savings before you can even consider retirement. But the reality for a large segment of the population is anything from that.  To give you an idea, a 2015 study from the … [Read more...]

The Dangers of Early Retirement

MMD: The following post is a guest contribution from Deacon Hayes @WellKeptWallet.com.  It’s about a topic that I think about often: How will I constructively make the most of my time once I achieve financial independence?   There are a lot of things about retiring early that people find enticing! The option of having to work ten, twenty or thirty years less than most people work brings with … [Read more...]

Pensions: How Can a SIPP Benefit You?

A SIPP is a self invested personal pension, and differs in many ways from other pension schemes available. Offered by companies like Bestinvest, SIPPs have many benefits which make them attractive to those looking for a potentially more lucrative scheme, and are particularly effective for those on higher incomes. Here is some information to help you further understand the benefits of SIPPs. More … [Read more...]

How to Turn $50 Dollars Per Paycheck Into $163,732

Do you wish you could be saving more money for retirement than you are right now? It’s easy to read a couple of personal finance blogs and feel like you’re being left behind if you’re not budgeting yourself down to the bare-bones or saving up an obscene amount of money. But don’t get discouraged!  It might benefit you to know that even small changes to your saving habits can still help aide in … [Read more...]

Roth IRA vs. Traditional IRA 2017 – Which One Is the Better One to Have?

Once you get involved in retirement planning, one of first questions you’ll be faced with is which kind of account you’d like to go with: A Roth IRA vs. Traditional IRA? As someone who has both, let me tell you that each one works great by their own right. In both cases, you’re taking advantage of a unique opportunity from the IRS to save and grow your money without having to pay taxes right away … [Read more...]

Check Out My Retirement Planning Interview with the Financial Freedom Community Podcast

If you’ve ever wondered what it’s like to talk to me in person about retirement planning, then I’ve got something very special for you! You can check me out in my first-ever podcast interview with Joel Parker from the Financial Freedom Community at this link here. Or if you normally listen to podcasts on your smartphone or tablet, then click the app, search Financial Freedom … [Read more...]

7 Retirement Planning Myths Debunked by Financial Advisors

Retirement is a scary thing for many people. The number one concern is whether a person will have enough money to enjoy his or her retirement years. Business Insider said it best in an Apr. 19, 2017 article: “If your nest egg runs short, it will be far too late for a do-over.” Nonetheless, the article also debunked some common myths. Here’s a recap. 1. Social Security Is Not Going Bankrupt You … [Read more...]

How to Make Your Retirement Savings Last

Even if you have planned every aspect of your life well, there is always a chance that you will outlive your savings or outspend your money. If you are worried that you will run out of money before you die, here are some things that you can do to alleviate your concerns: Buy longevity insurance With this insurance, you will give the company a very small chunk of change when you reach the age of … [Read more...]

The Power of Saving More and Spending Less – The Double-Ended Approach to Retire Early

If you’re hoping to retire sooner rather than later, then there’s more to be gained from saving more and spending less than you might realize at first. On the surface, everyone can recognize that saving a larger proportion of your income does exactly what you think it will do: Help you stock-pile more money more rapidly, and reach your nest egg target quicker. But another benefit that sometimes … [Read more...]

How a Good Asset Allocation Model Can Impact Your Financial Future

Assets allocation is just not one of those topics that most people find particularly sexy.  Usually it’s the sort of thing that gets about as much attention as the instruction manual to your Blu-ray player. But as you’ll see below, it’s one of those parts of investing that you simply can’t ignore – largely because it can have a MAJOR effect on your finances and how long they ultimately last. The … [Read more...]

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