Tag: personal finance tips
Your Tell-All Guide to Saving for Retirement
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
I'm Britt, the co-founder of Dow Janes, and
every single week I have someone asked me how they can start saving for retirement
or how much they need or if it's too late to start saving. Today, I'm going to share my
top tips for starting to save for retirement. And don't worry; it's easier than you think.
If you want more ideas for saving, investing, and making the most of your money,
don't forget to hit the subscribe button and the bell so you don't miss any new
videos. And if you liked this video, definitely give it a thumbs up.
All right. So, there are some misconceptions about retirement saving that I want to address.
First, one thing people often ask us is how much do I need for retirement? What's the magic number?
And the truth is it varies widely.
It depends on where you want to live or what lifestyle you
want to have or when you want to retire. Are you trying to retire at 40 or at 70?0.
If you take anything away from today, I want you to just start saving 20% of your pre-tax
income for your retirement, and you'll be fine. To learn more though, keep listening.
Okay. So how do you start saving for retirement? What you do is you follow the roadmap
steps. You make sure you're doing things in the right order. So we have a whole nother video
on the roadmap steps, but just to recap, the first thing you want to do is make sure
you're spending less than you make each month.
The second thing is to pay off any
high-interest rate debt you have, which is anything with an interest rate over 7%, then
you want to build up an emergency fund.
And then once you have those three things in place,
you're ready to start saving for retirement. So, to do that, you're going to find your monthly
savings number. You can use a simple retirement calculator to figure out how much you want to have
in retirement. I'll link to one in the description below. What you'll do is you'll add in your
current savings, anything you've already saved for retirement already, anything you expect to get
from social security, and then you'll adjust the savings amount to see exactly how much you need
to save each month to be on track, to meet your retirement goals. It's a super easy calculator,
you just enter the numbers. It'll spit out exactly what you need to do, and that number, that savings
amount, that's going to be your monthly goal.
So, if you don't already have an account,
you'll open up a retirement account, and that's where you'll begin to transfer that
savings amount to that account each month.
Where should you save your money? There are
different types of retirement accounts.
So, if your employer offers matching, then you'll
want to open a 401(k) or 403(b). In addition, you can open a Roth IRA or a traditional IRA.
IRA stands for Individual Retirement Account. If you're self-employed, you can also open a SEP
IRA. So for the Roth traditional or SEP IRAs, you can open those at any brokerage places
like Vanguard, Charles Schwab, Fidelity, or with a robo-advisor like Wealthfront or
Betterment. Any of those places offer retirement accounts. So, it's super easy to get started.
Then if your employer offers 401(k) matching, you definitely want to advantage of that.
So, what is 401(k) matching? It's when you save money for your retirement and your company
contributes the same amount that you save. They'll often match up to a certain amount
or a certain percentage of your salary.
So, if your company matches 4% of your
salary and you make $5,000 per month, you could contribute $200 per month towards your
retirement, and your company would contribute an additional $200 per month.
So you basically get
$200 in retirement money for free each month.
It's a way for companies to incentivize
their employees to save for retirement. So, if your employer offers this, definitely take
advantage of it. It's the easiest free money out there. And make sure you're contributing the
maximum amount that they're willing to match.
Okay. The next thing you'll do, if your employer
doesn't offer matching, or if you're, um, if you've already maxed that out, the next thing
you want to do is max out your contribution to your Roth or your traditional IRA. So, each year,
the IRS limits the amount that you're allowed to contribute. In 2021, the amount is $6,000.
If you're over 50, you have an extra bonus. You can contribute $7,000. So, try to contribute the
maximum amount to those accounts each year. So, max out your 401(k) to where your company matches
max out your Roth or your traditional IRA. If you're self-employed, you could also contribute to
your SEP IRA. If you're a great saver and you're saving more than those amounts, you can open
your own brokerage account.
So, a non-retirement account, and save the money there. You can use
that money for whatever you want, but you can know that you're saving that for retirement.
Once you've saved the money in those accounts, what you're going to do is invest that savings. So
for the easiest and simplest way to get invested, you'll invest in target date funds. These
are pre-made portfolios that allocate your money to a mix of stocks and bonds that
are appropriate based on your age.
If you want to invest in index funds yourself,
or if you're picking a fund that your employer offers, then you can use these rules of thumb.
Generally, you want your portfolio to be invested in the percentage of stocks that is equal to
120 minus your age.
So if you're 20 or younger, you want to have 100% of your portfolio
in stocks. If you're 30, you want 90% in stocks, for example. And just a quick
note that if you invest in target date funds, that will do that for you. The allocation
changes the allocation of stocks and bonds changes over time as you get older.
One quick thing to know is that you actually don't need to take your money, your
retirement money, out the year that you retire. You can leave it invested while you're in
retirement and just take out what you need, which means you actually have more time
than you think for your money to grow.
So, hopefully that gives you some peace of mind.
If you're getting started later in the game, if you're wondering how much you should be
saving in retirement savings each month, we have a couple of rules of thumb for you.
And
the bottom line is the sooner you start saving for retirement, the less you actually have to save,
because if you start sooner and you invest that money, it will grow and it will grow over a longer
period of time. If you're starting later in life, you have to save more because it has less
time to grow. So, if you're in your twenties, you can save 15% of your pre-tax income each
month and you'll be set. If you're starting in your thirties, you want to save 20% of your
pre-tax income. If you don't have anything saved and you're just starting to save for retirement in
your forties or your fifties, you'll need to save even more since you're starting later and your
money has less time to grow. If this is you, watch out for our next video on how to start saving
for retirement if you're in your fifties.
All right, the sooner you start saving for
retirement, the easier it is.
So, here's a recap of the steps: One, follow our wealth building
roadmap, so you know what to do in what order. Two, find your monthly savings. Number three, open
a retirement account. Four, take advantage of free money. Five, max out your contributions. Six,
invest your retirement savings, and seven, contribute to your retirement savings each
month. If you want to learn more about how to build your wealth and invest your retirement
savings, then definitely check out our webinar, Think Like an Investor. The link's in the comment
below.
All right. Thanks for watching..
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The Millionaire Mindset: Secrets to Building Wealth with Robert Kiyosaki
Jason 0 Comments Retire Wealthy
[Music] thank you welcome back to our Channel where we Empower you to build wealth and Achieve Financial Freedom today we have a special treat for you as we delve into the wisdom of one of the most renowned Financial Experts of our time Robert Kiyosaki in this video we'll be sharing his 10 essential tips for Building Wealth and attaining Financial Freedom so grab a pen and paper because you won't want to miss these valuable insights tip number one focus on cash flow according to Robert Kiyosaki the key to Financial Freedom lies in generating positive cash flow instead of solely relying on a paycheck aim to build assets that generate income and increase your cash flow over time tip number two Embrace Financial education Kiyosaki emphasizes the importance of continuously educating yourself about money and investing by expanding your financial knowledge you'll be able to make more informed decisions and seize opportunities that others may miss tip number three leverage other people's time and money Robert Kiyosaki suggests using the power of Leverage to accelerate your wealth building Journey this can involve partnering with others utilizing loans or investing in assets that have the potential for exponential growth tip number four build multiple streams of income diversifying your income sources is a crucial step towards achieving Financial Freedom Kiyosaki advises creating multiple streams of income to increase your financial stability and protect yourself from relying solely on One Source tip number five be Fearless in taking risks while caution is important Kiyosaki encourages individuals to embrace calculated risks Building Wealth often involves stepping out of your comfort zone and seizing opportunities that others might shy away from tip number six Master the art of negotiation negotiation skills play a vital role in Building Wealth according to Robert Kiyosaki learning how to negotiate effectively can help you secure better deals increase your income and save money in various aspects of your financial life number seven develop a long-term mindset Building Wealth is a marathon not a Sprint Kiyosaki emphasizes the importance of having a long-term perspective when it comes to investing in building assets patience and persistence are key in achieving lasting financial success tip number eight surround yourself with like-minded individuals your network can greatly influence your financial Journey Kiyosaki advises surrounding yourself with individuals who share similar goals and ambitions this can provide support accountability and valuable opportunities for collaboration tip number nine continuously evaluate and adjust to Achieve Financial Freedom Kiyosaki emphasizes the importance of regularly reviewing your financial situation and making necessary adjustments this involves analyzing your Investments tracking your progress and adapting your strategies accordingly tip number 10 give back and share your wealth lastly Kiyosaki encourages individuals to give back and make a positive impact on the world as you build wealth and Achieve Financial Freedom remember to share your knowledge resources and contribute to causes that align with your values there you have it Robert kiyosaki's 10 essential tips for Building Wealth and achieving Financial Freedom now it's time for you to take action and Implement these strategies in your own life remember Building Wealth is a journey that requires commitment learning and adaptability if you found this video helpful be sure to give it a thumbs up and subscribe to our channel for more valuable insights on personal finance and wealth creation and don't forget to hit the notification Bell so you never miss an update we'd love to hear from you which of these tips resonates with you the most have you already started implementing any of these strategies share your thoughts and experiences in the comments section below let's engage and learn from each other's Journeys as always thank you for watching remember wealth and Financial Freedom are within your reach stay focused stay motivated and keep working towards your goals until next time
Your Tell-All Guide to Saving for Retirement
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
I'' m Britt, the founder of Dow Janes, and also.
every solitary week I have a person asked me exactly how they can start conserving for retired life.
or just how much they need or if it'' s also late to begin conserving.'Today, I ' m going to share my. top ideas for beginning to save for retired life. As well as wear'' t worry; it ' s simpler than you think. If you desire much more suggestions for saving, investing, and making the most of your money,.
put on'' t forget to hit the subscribe button and the bell so you put on'' t miss any brand-new.
videos. As well as if you liked this video clip, certainly offer it a thumbs up. All. So, there are some misunderstandings about retirement conserving that I wish to deal with.. One point individuals typically ask us is exactly how much do I need for retirement? What'' s the magic number?.
And the truth is it differs widely.It depends
on where you want to live or what way of living you.
wish to have or when you wish to retire. Are you trying to retire at 40 or at 70? 0. If you take anything far from today, I want you to simply start saving 20% of your pre-tax.
To learn more though, keep listening. Just how do you begin conserving for retired life?
steps. You make certain you'' re doing things in the right order.So we have
a whole nother video clip.
on the roadmap steps, yet just to evaluate, the very first point you want to do is make certain.
you'' re costs less than you make each month.
The second thing is to settle any type of.
high-interest rate financial debt you have, which is anything with a rate of interest price over 7%, then.
you want to develop an emergency situation fund. And also after that when you have those three points in position,.
you'' re all set to begin conserving for retired life. So, to do that, you'' re mosting likely to find your monthly.
cost savings number. You can use a simple retired life calculator to determine exactly how much you wish to have.
in retirement. I'' ll link to one in the summary listed below. What you'' ll do is you ' ll include your. existing financial savings, anything you ' ve already conserved for retired life already, anything you anticipate to obtain.
from social safety, and after that you'' ll change the cost savings quantity to see exactly just how much you need.
to conserve each month to be on course, to meet your retirement goals.It ' s
an extremely easy calculator,.
you simply go into the numbers. It'' ll spit out specifically what you need to do, and that number, that financial savings.
quantity, that'' s going to be your month-to-month objective.
So, if you don'' t already have an account,
. you ' ll open up a retirement account, which'' s where you ' ll begin to transfer that.
cost savings total up to that account monthly.
Where should you conserve your cash? There are.
INDIVIDUAL RETIREMENT ACCOUNT. So for the Roth standard or SEP IRAs, you can open those at any broker agent places.
like Lead, Charles Schwab, Integrity, or with a robo-advisor like Wealthfront or.
Betterment.Any of those areas supply retirement accounts. What is 401( k) matching? It ' s when you conserve cash for your retirement and also your business.
They ' ll frequently match up to a particular amount. or a'particular percentage of your wage.
If your business matches 4 %of your.
salary as well as you make$ 5,000 each month, you can add $200 monthly in the direction of your. retirement, as well as your firm would certainly add an added$ 200 per month. So you basically obtain. $200 in retired life cash free of cost each month
. It ' s a way for firms to incentivize. their staff members to conserve for retirement. So, if your company offers this, definitely take. advantage of it.
It ' s the easiest totally free money out there. And also make certain you ' re contributing the.
you want to do is max out your contribution to your Roth or your typical IRA.So, every year,.
the IRS restricts the amount that you'' re permitted to contribute. In 2021, the amount is $6,000. If you'' re over 50, you have an additional bonus offer. You can add $7,000. So, attempt to add the.
maximum total up to those accounts every year. max out your 401( k) to where your company matches.
max out your Roth or your standard individual retirement account. If you'' re self-employed, you could also contribute to.
If you'' re an excellent saver as well as you'' re saving a lot more than those amounts, you can open up. A non-retirement account, and also save the cash there.
that money for whatever you want, yet you can know that you'' re conserving that for retirement. As soon as you ' ve saved the cash in those accounts, what you'' re mosting likely to do is spend that financial savings. .
for the easiest and also simplest way to get spent, you'' ll buy time frame funds.These.
are pre-made portfolios that assign your money to a mix of stocks and bonds that.
are ideal based on your age.
If you wish to buy index funds on your own,.
or if you'' re choosing a fund that your company provides, after that you can make use of these rules of thumb..
Generally, you want your portfolio to be spent in the portion of stocks that amounts to.
120 minus your age. If you'' re 20 or more youthful, you desire to have 100% of your portfolio.
in stocks. If you'' re 30, you desire 90% in supplies. And just a fast.
note that if you purchase time frame funds, that will certainly do that for you. The allowance.
You can leave it invested while you'' re in.
than you think for your cash to expand.
So, hopefully that provides you some peace of mind..
If you'' re starting later on in the game, if you'' re wondering just how much you ought to be.
saving in retired life savings each month, we have a couple of guidelines for you.And.
the lower line is the faster you start conserving for retired life, the much less you actually have to save,.
due to the fact that if you start sooner and you invest that money, it will expand and it will certainly grow over a longer.
duration of time. If you'' re starting later on in life, you have to save more because it has much less.
time to expand. If you'' re in your twenties, you can conserve 15% of your pre-tax revenue each.
month and also you'' ll be established. If you'' re starting in your thirties, you desire to conserve 20% of your.
pre-tax earnings. If you put on'' t have actually anything conserved and also you'' re simply starting to save for retirement in.
your forties or your fifties, you'' ll need to conserve much more considering that you'' re starting later on and also your.
cash has less time to grow.If this is you, see out for our following video on how to start conserving.
for retired life if you'' re in your fifties.
All right, the faster you begin conserving for.
retired life, the much easier it is. So, here'' s a recap of the actions: One, follow our riches structure.
roadmap, so you recognize what to do in what order. Two, locate your monthly financial savings. Number 3, open.
a pension. Four, make the most of free money. 5, max out your contributions. Six,.
spend your retirement financial savings, and also 7, add to your retirement financial savings each.
month. If you intend to discover even more about exactly how to develop your wealth and also invest your retirement.
cost savings, after that absolutely look into our webinar, Assume Like an Investor. The web link'' s in the remark.
listed below. All right. Many thanks for seeing.
And wear'' t concern; it ' s less complicated than you think. What you'' ll do is you ' ll include in your. It ' s when you conserve money for your retirement and also your firm. If you'' re over 50, you have an extra benefit. Once you ' ve saved the money in those accounts, what you'' re going to do is spend that cost savings.
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