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How to Retire at 50 Pt. 2: Probabilities of Success
Retirement might seem a long way off, but you are better off planning as soon as possible. While everyone will retire one day, I’m more concerned with the probability of staying retired successfully. In the last blog post, Time to Retire Early at 50, I covered why my wife and I set our exit target after 2032 (seven years). It’s an expedited runway compared to the average retirement age of 62. For me, this means I’m getting out 12 years early. My wife will be getting out nearly 20 years early or even 25 years from her original expectations. With that said, I didn’t get a chance to dive into…
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Made More than $232k in my 401k. Most Americans are Making a Big Mistake.
Over 11 years, my total wealth output grew by $232,329 that's beyond my direct contributions of $183,202.
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Why Financial Freedom Should Be On Your Wealth Bucket List
Achieving financial freedom necessitates a Wealth Bucket List to prepare for retirement. The author emphasizes accountability, budgeting, and discipline as paths to personal finance success. Planning for retirement includes significant financial goals, a commitment to lifelong learning, and a passion for travel and service. The aim is to create a purposeful, fulfilling life post-retirement.
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How to Pay Less in Taxes in Retirement Like My Mom
Turns out, you still pay taxes in retirement. However, it’s not as much as you think. As of March 2024, the median income for Americans aged 65 and older was $50,290. That’s a median monthly income of $4,191. However, this income can vary drastically by age, race, professional, and education level. On average, a retiree can expect a tax rate of 5.7%; however, 80 percent of retired households will pay little or no income taxes (source: Center for Retirement Research of Boston College). If you made less than $90,000 per year (through your career), after the Federal standard deductions, you won’t have to pay much (if at all). For context, those…
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How to Maximize Your 401k Contributions. My 10-year Gains Exceeded $150,000, on Track to Reach Over $1 Million
If you told me back in 2014 that I would be able to reach even $1 million in investments, I would have likely dismissed it. Social media is filled with misinformation about 401ks, the proof is way more impressive.
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Here are the Top Three SECURE 2.0 Act starting 2025
If you are over the age of 40, you will need more than $2.5 million for retirement. The SECURE Act 2.0 aims to help you build more wealth.
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The Main Reasons You Will End Up Broke in Retirement
Having a lot of money in retirement savings is no guarantee it will last the rest of your life. One of the worst things about my job is watching retirees make mistakes in their retirement plans. We recently met with a family that came to us after managing their finances during their lives like most families. They brought this retirement plan to us, and it showed that they had roughly $1.3M at the time of creation. Fortunately, they weren’t doing poorly by any means. They were puzzled because they were great budgeters, so the common culprit—overspending—was not the issue this time. What created such a change in their trajectory? In this article,…
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Millennials will need nearly $190,000 annually to survive 2060
Nothing erodes Wealth faster than Inflation. If the cost is $73k in 2022, it will explode to $190k by 2060. Are you making the adjustments?
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How to Avoid Falling behind Financially in Your 40s
Ever feel like you are falling behind financially? Turns out, most Americans feel the same way. New job applicants are requesting no less than $80,000 per year in entry-level roles. While most families say they need over $230,000 per year to stay afloat. Boomers are entering retirement with fewer savings than anticipated. Genx is stuck in its own sandwich generation with the likelihood of another recession. While millennials are now ages 26 to 41. Life is getting financially complicated. We are all navigating through major life transitions from the global pandemic to global reversion to the mean. All this, on top of getting married (or not), going 50/50 on expenses,…
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80% Pay Little to No Taxes in Retirement. Here’s Why
The ins and outs of tax law will be important to consider at least 5 years before you retire. Gone are the days, when you can feign ignorance about your personal finances. It's better to be active and engage in learning how it works. Even if it's for your own parents and ultimately for you in retirement.
