saving

Why Save So Much in Our Retirement Accounts?

12.17.2014
Why save so much in our retirement accounts? 72t early withdrawal

This is the follow up to the previous blog post – How to save $50,000 per year in your tax advantaged accounts. Is it really a good idea to save so much in our retirement accounts? Should we cut back a bit and invest more in our after-tax account? One downside of saving over $50k/year in our tax advantaged accounts is that we aren’t able to add to our dividend portfolio much. This could be a problem for early retirees like us because we will need to access those retirement accounts before we’re 59 1/2. I don’t want to pay […]

26 comments Read the full article →

How to Save $50,000 Per Year in Your Tax Advantaged Accounts

12.15.2014
How to save $50,000 per year in your 401k Roth IRA 529

One of our goals this year is to save and invest at least $50,000 in our various tax advantaged accounts. 2014 is just about over and I’m happy to report that we hit this one out of the park. We saved $56,800 in our tax advantaged accounts this year! Here are the details. Mrs. RB40 401k: $17,500. My solo 401k: $21,500. The i401k account enables me to save the extra $4,000. This is the employer contribution portion. RB40 Jr’s 529: $6,800 Two Roth IRA: $11,000 Saving over $50,000 is a huge accomplishment and the tax saving makes it even sweeter. […]

29 comments Read the full article →

You Can Save More In Your 401(k) Next Year

11.07.2014
You Can Save More In Your 401(k) Next Year

For 2015, the 401(k) maximum contribution limit is increasing to $18,000, up from $17,500. If you are 50 or older, you can add up to $6,000 extra per year. That’s an increase from $5,500 in 2014. This is great news for those of us who max out our 401(k) every year. We can save more next year and look forward to a little more tax deduction. Or a little more tax free growth if you go with the Roth 401(k). Of course, setting aside $18,000 per year is quite difficult for all of us. That’s why less than 10% of […]

32 comments Read the full article →

Has the 401(k) retirement system failed?

10.27.2014
Has the 401k system failed us?

It’s been over 30 years since the 401(k) retirement system went into effect in 1978. Now it is the most prevalent form of retirement saving. However, the 401(k) plan is not working out for many because Americans near retirement age have very little retirement saving. Of Americans near retirement age in 2010, 75% had less than $30,000 in their retirement account. (US Census Bureau’s Survey of Income and Program Participation.) Many retirees will be relying solely on Social Security benefit and that’s not enough for a comfortable retirement. So has the 401(k) retirement system failed? Teresa Ghilarducci thinks so and […]

44 comments Read the full article →