Financial tip of the day.com - FREEDOM THROUGH FINANCE
Social Sites
  • Financial Tip Of The Day
  • Books
  • Websites
  • Contact Us
  • Disclosure

Retire on 3%...

20/11/2013

0 Comments

 

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. 

So for instance if you put $100 away for retirement it actually only costs you $75, not $100. When you add in an employer match of 3% you're actually talking about being able to retire on 3%. It's a no brainer!  Just remember you've got to do this under the right circumstances, over 40 years.  DON'T LEAVE IT TO CHANCE THOUGH, SAVE TWICE AS MUCH! I bet you won't even notice it's gone.

-CC

Picture
0 Comments



Leave a Reply.

    Author

    This 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. 

    RSS Feed

    Categories

    All
    BHAG UPDATE
    College Savings
    College Savings
    Credit
    Economics
    Estate Planning
    Estate Planning
    Financial Planning
    Financial Planning
    Insurance
    Investing
    INVESTMENT JOURNAL
    Mistakes
    Net Worth Update
    Retirement
    Tax
    Thrift

    Archives

    August 2017
    May 2017
    April 2017
    February 2017
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    January 2011

Powered by Create your own unique website with customizable templates.