The Truth About the Roth 401k and the Traditional 401k

Roth 401k and the Traditional 401k

“If you contribute to a Roth 401k, all the money can be withdrawn at a later date completely tax-free. If, however, you put that same amount of money into a Traditional 401k, it will be taxed and you’ll only end up with 2/3 of your nest egg. This is why you should contribute to a Roth 401k every time.”

What a crock of bull.

I’ve heard Dave Ramsey say this about a hundred times and it still ticks me off. This statement actually bothers me so much that I’ve decided to dedicate this entire post to prove it wrong and to educate all of you readers on the actual facts of the Roth 401k and the Traditional 401k.

I’ll teach you:

what makes them different, and what the benefit is of having one vs. the other The Truth About the Roth 401k and the Traditional 401k

The Roth 401k was . . . → Read More: The Truth About the Roth 401k and the Traditional 401k

3 Ways to Put Your Investments on Autopilot

investments on autopilot

One of the hardest parts about staying on top of your finances and investments is simply finding the time in the day to make sure your bills are paid, you’re saving money and you’re putting it to work for you consistently. But luckily, we live in a technology enabled world. And as a result, automating some of these recurring financial tasks is easier than ever.

So that’s why in this article I want to share why you should put your finances on autopilot from end-to-end in order to, in turn, put your investments on autopilot. And yes, while these tactics can take a little bit of upfront time investment to set up, they’re well worth the effort. Plus, as long as you stick with it for a few months you’re sure to see a huge ROI on your time.

This is a guest post written by Jay Delaworth from Intelligent . . . → Read More: 3 Ways to Put Your Investments on Autopilot

5 Reasons I’m Not Buying My $75,000 Dream Car

buying my dream car

Here it is. The Ferrari 360. I’ve been drooling over this car for the past 15 years… And Liz and I officially have enough cash in the bank to pay for it. BOOM! Looks like I’m buying my dream car!!

Well….maybe not…

 

5 Reasons I’m Not Buying My Dream Car

First of all, I highly doubt that Liz would give me the thumbs up on this ride since it’s not exactly kid friendly, and then there’s the minor detail that it would entirely deplete our savings account…

Aside from these reasons, there’s yet another five that would keep me from buying my dream car (ie. crazy expensive car)… and for this, we have to diagnose the different spenders in this world.

There are really three categories of spenders: Those that believe going into debt is okay as long as you can afford the payments Those that believe it’s . . . → Read More: 5 Reasons I’m Not Buying My $75,000 Dream Car

The Absolute Simplest Way to Become Wealthy

The Absolute Simplest Way to Become Wealthy

Wanna be rich? Want to know the secret to accumulating great wealth? Then it’s time to stop reading about penny stocks, and it’s certainly time to stop watching Mad Money (spoiler alert, Jim Cramer doesn’t beat the market, which means you probably won’t either). Instead, let’s look at the absolute simplest way to become wealthy and learn how almost everyone can do it!

The Absolute Simplest Way to Become Wealthy

This post contains affiliate links.

You’re not going to win the lottery. You’re probably not getting a massive inheritance. And chances are, you’re not going to win that high-profile lawsuit either. Money normally doesn’t come in a windfall, and if it does, you’ll likely lose it all within 5 years anyway.

Your best bet to accumulating great wealth is by keeping it simple. Believe it or not, but millions have already done it in the past, and millions more will . . . → Read More: The Absolute Simplest Way to Become Wealthy

Will You Be Rich? Take This Quiz And Find Out!!

Will you be rich

If you walked through a college campus and asked 1,000 people if they were going to be rich, about 999 of them would tell you, “Absolutely!” And in reality, maybe 50 will actually do what it takes to become a multi-millionaire.

I want you to be one of those 50.

Will You Be Rich? Take The Quiz to Find Out!

And in order to do that, you’ve got to understand if you’re truly on track or not when it comes to your future wealth. Be real with yourself – will you be rich when you get older? After taking this quiz, you’ll know.

If you score well, congrats. You’re going to be wealthier than 99% of your peers. Have fun with it, but also remember to share it with those that are less fortunate.

If you score poorly, don’t hang your head in shame. Use this moment to do more . . . → Read More: Will You Be Rich? Take This Quiz And Find Out!!

Ready to Invest? Earn a Free $50 with Wealthsimple

Wealthsimple logo

The beauty of becoming a reputable blogger is that you can help tons of people with their financial decisions AND you can give them great deals on some fantastic products.

The second part…the part where you get an amazing deal…this is one of those times.

Wealthsimple is an investment website where you can buy low-cost ETFs that match your investment style. And, if you invest with them through this link, you can earn an extra $50!

This post contains affiliate links, but at no extra cost to you!

What’s So Great About Wealthsimple?

Why am I so excited to promote Wealthsimple?

I’ve got 7 solid reasons: They make diversification easy with simple investment options that fit your “money personality” They have socially responsible options if you’d rather avoid the companies with bad habits There’s no minimum investment which means no one has an excuse! 🙂 The fees are super low . . . → Read More: Ready to Invest? Earn a Free $50 with Wealthsimple

Don’t Let a Job Switch Nuke Your Retirement

withdraw your retirement early

Switching jobs can be tough financially, especially if you didn’t plan on leaving your old job. You lose your steady paycheck and your benefits. You still have all of the bills you had before, and maybe expensive COBRA insurance at the same time.

Even if you start a new job immediately, you may have more time than usual between paydays. And what if you don’t have a new job yet? Experts estimate your job search in terms of how much of an annual salary you’re looking for as one month for every $10,000. That means if you used to earn $70,000 a year, it will likely take you 7 months to find that next job! Ouch!

And suddenly, you remember…you had a retirement account at that old job. You’ve been saving 3, 5, maybe even 10% or more of your salary for years. You really need that money now. Maybe . . . → Read More: Don’t Let a Job Switch Nuke Your Retirement

3 Reasons Why I’m Not Maxing Out My 401k

not maxing out my 401k

All you personal finance geeks, get your gasps ready….

I’m not maxing out my 401k.

Am I nervous about it?

No.

Do I think I’ll change my mindset in the near future?

Nope.

Would I tell you to max out your 401k?

Probably not….

3 Reasons Why I’m Not Maxing Out My 401k

It seems like an absolute sin in the personal finance world, but I’m just not a big fan of maxing out my 401k. Why not? There are actually quite a few reasons. Three to be exact…

1) I’d Rather Pay the Taxes Now

Most people love investing in their 401k because it’s tax deferred – meaning, if they invest the money today, they can avoid paying taxes until they take their money out later.

This is great and all….but here’s my take on it:

The United States’ national debt has more than tripled since 2001. In just . . . → Read More: 3 Reasons Why I’m Not Maxing Out My 401k

What Is Fundrise? And Should You Invest Your Money Here?

Invest in Fundrise

You’ve probably seen all the overly-appealing ads at this point, either through Facebook or on TV. Fundrise is a company that invests in real estate projects and earns interest on their loans to developers – often at a rate of 10%-12%.

Here’s where the message gets good for regular schmoes like you and me…

Do you know where Fundrise gets their money from for their investment projects? From the general public who wishes to invest as little as $1,000 in the project. Essentially, Fundrise is a mutual fund company for real estate ventures and cuts out a bunch of middle men in the process.

Sounds pretty good right?

At first glance, yes….but should you invest in Fundrise?

Your Investment in Fundrise

There are loads of personal finance bloggers that absolutely love Fundrise. In my opinion though, it’s only because they’ve got a carrot dangling in front of their face — . . . → Read More: What Is Fundrise? And Should You Invest Your Money Here?

18 Tips to Get Rich (From Actual Millionaires!)

Tips to Get Rich

Millionaires.

They drive through their gated communities on golf carts, give fake smiles to everyone they see and wave that silly open-fingered punch as if they’re giving a high-five to your forehead. They dine at the local country club and eat only in miniature because that’s the classy thing to do. Never would you catch them in your local grocery store or gas station. They’ve got servants for that kind of thing.

Ummm…. I don’t know how to break this to you, but the above paragraph is absolutely false (and is only relevant in 3-star movies or less).

In the real world, millionaires walk among us each and every day. In fact, there are 10.4 million millionaires in the United States today, which means that if you see 300 people a day, 10 of them are millionaires….And I bet you couldn’t pick them out either.

18 Tips to Get Rich . . . → Read More: 18 Tips to Get Rich (From Actual Millionaires!)