Judging by everybody's posts there appears to be a lot of baby making going on. So if you want them to go to college, look into setting up a 529 college savings plan. It acts like a retirement plan where you can add funds for your kids college or tech school tuition and it grows tax free!
There are also prepaid plans if you know for sure which state they're going to attend. Check out this website for more info: www.savingforcollege.com
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The general rule is that you need to save 10% of your income your whole working life in order to retire by 65. Here's the great thing about our tax law. If you participate in your employee 401k, Sep IRA, SIMPLE, etc. then you save the payroll tax plus the fed tax rate of what you are in. Since it's pretax you save possibly 25% (your marginal tax rate) of what you would instead of giving to the govt in taxes. If you have an American Express card, you automatically get $100k worth of accidental death and dismemberment insurance coverage. Just be sure to file the claim within 100 days of the accident/death. When you write up your will, be sure to put that information in there so that it is not forgotten.
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AuthorThis website was created due to the atrociously misguided financial advice that I've heard over the decades. Financial freedom is not intellectually strenuous, but it takes discipline. Categories
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October 2017
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