Despite some arguments that your home isn not an investment, to the average American a home has many characteristics of one. It tends to appreciate in value, there is an active market for buying and selling, and it can be relied upon for future cash flow (typically through renting or a reverse mortgage).
What a Simplified Wardrobe Can Teach You About Saving
Some of you may know that I’m a big fan of the blog and podcast, The Art of Manliness. The content is robust, timely, and always helps me find small ways to become a better man.
I recently came across an Art of Manliness article that has had me thinking. It was about simplifying your wardrobe by focusing in on a few high quality clothing items rather than having dozens of low quality t-shirts or seven or eight pair of jeans.
I’ve tried really hard to embrace this idea. A couple years ago I bought myself a really nice navy blazer and had it tailored. It was kind of pricey for me, but I wanted something that would really last and look great.
For Self-Employed Savers, Few Tools Are Better Than the Solo 401(k)
With nearly 1 out of every 10 U.S. workers self-employed, at least 10% of workers are going without a traditional 401(k) plan. While some may create future retirement income from the sale of their business, generating substantial retirement income from a business sale tends to be the exception rather than the rule.
What are the options for self-employed savers? Are IRAs, with their relatively small contribution amounts and income restrictions, all that’s available?
Just as a company with thousands of employees is allowed to have a 401(k) plan, part of the IRS tax code allows businesses with just one employee--that’s YOU--to have a 401(k) as well.
It’s called a Solo or Individual 401(k), and it’s an excellent retirement saving tool for sole proprietors.
The Biggest Mistake You Might Be Making With Your 401(k)
401(k)s are incredible tools for building future wealth. They have a lot going for them: tax advantaged accounts with tax-free (Roth) or tax-deferred options, well-diversified investments through mutual funds, and high total contribution limits.
But truly one of the most admirable benefits of a 401(k)--which many companies offer through their 401(k) plans--is the company match.
Should You Use Target Retirement Funds in Your 401(k)?
In the past I’ve talked about the importance of rebalancing and changing your asset allocation as you approach retirement. Making these tiny but crucial “course corrections” is a very important step in the retirement saving process, but it can take time and be a bit complicated, depending on how many investments you have to work with.
Wouldn’t it be nice if there was a service that would change your 401(k) asset allocation for you--automatically?