If you are self-employed and have some self-employment income, you can contribute to a solo 401(k) account. A solo 401(k) offers many of the same benefits as a traditional 401(k) but there are some important differences. Solo 401(k) is sometimes called a one-participant 401(k), individual 401(k), or self-employed 401(k). Lot of different names, but it’s …
Solo 401(k) – What You Need To Know (+2022 limits) Read More »
Most people associate the Health Savings Account (HSA) with medical expenses. I don’t blame them for making that connection. That’s the primary purpose of an HSA. It is tax-advantaged savings account for people who have a high-deductible health insurance plan. But in reality, many people can use it as a retirement account similar to an …
The 4% withdrawal rule is well known among financial planners and people planning their retirement. It was developed by William Bengen in 1994. The rule says that if people withdraw 4% in the first year of retirement, and adjust that amount for inflation every year after that, the money would last about 30 years. Another …
Dividend investing is a passive income strategy. It’s more passive than owning rental real estate. In fact, if you choose the right company, it’s not impossible to get a 6-10% dividend increase every year. Needless to say, it’s very difficult to get that kind of pay increase every year with a job. Most employees get …
Major changes are coming to your retirement plans in 2020. SECURE Act was signed into law by President Trump on December 20, 2019. SECURE is an acronym for “Setting Every Community Up for Retirement Enhancement”. Here are the key provisions of the changes to retirement plans. Age for Required Minimum Distributions Increases to 72 Individuals …
For 2020, 401(k) limits are going up by $500. This means that you can save $19,500 next year, instead of the $19,000 in 2019. Catch up contributions for those over 50 are going up by $500 to are rising to $6,500. So people over 50 can save $26,000 in their 401(k) accounts. These amounts don’t …
401(k) Contribution Limits Are Going Up By $500 in 2020 Read More »
