@Jubal I have to disagree, because the Roth IRA is better. You never pay tax on the gains. If you get into a financial pickle/crisis and need some $, you can pull your original investment back out without penalty. Yes you forfeit future tax-free gains, but that's usually better than, say, borrowing money at 24% on a credit card when a crisis hits. And hopefully, if someone is financially savvy enough to save and invest, they live below their means and they have at least a small emergency fund too.
The 401k is almost as good as the Roth IRA. I have both.
And I concur with the earlier post about index funds. For the average investor, index funds are sufficient. Some S&P500 and some Nasdaq (QQQ), invest early and often and hold long term, and you are good.
When I grow up I want to be a financial advisor😁. I've been in the stock market for a couple decades. Even with all its faults, it's perhaps the greatest and most accessible wealth building tool ever.
Another comment on 401K - I am aware not everyone can afford the max of 15% ( can be even higher in some cases) but at least contribute the minimum it takes to collect 100% of the employer match. Dont leave that free money on the table.
I've been doing 15% since I started my job 25 years ago. I'm up to $400k in my 401k so far.
I go to school and take advantage of my employer's tuition reimbursement program. I have no debt whatsoever except for the mortgage.
@Mike403 Good for you !! Suze Orman would offer you a free cuddle session
I use a credit card just for the cash back rewards. People like Dave Ramsey would slap me upside the head just for that. However, I always pay the balance in full each month.
@coregulate I'm a HUGE Salvation Army, Goodwill and MarketPlace shopper. The deals are almost steals!
Goodwill recently closed off all the dressing rooms because the amount of theft going on in their stores. Why would you steal from a Goodwill?
Don't spend all your money on notebooks. I have an office supply problem...
@stormydaycuddle - lol. You told me that you were jealous of a paperclip you saw on the floor in one of my photos.
Don’t get hurt at work! Workers comp is there to protect the employer not the employees! I’ve gone broke trying to keep a roof over my head!
@mike403 I was out!! LOL. Got more.
Tips? Yes I always tip the pro cuddlers after a good session, usually $20.
@JWestfall I'll just say that RMDs can be a bitch for older retirees. You get the double whammy of making most of your social security taxable and, most likely get a higher tax bracket as well.
Roth IRAs are great for investment paying out ordinary dividends, short-term gains, or mutual funds that engage in alot of churning activity, and 401k type plans are awesome for getting employer match money. But most younger people (under 40 say) should not have the majority of their retirement savings tied up in such accounts.
Fix things if you can instead of buying new, especially appliances and cars. YouTube has lots of how-to videos and lots of things aren’t that difficult.
Max out your 401k if you can, but at least contribute enough to get the full match. Invest in low cost index funds like VTI or similar.
Don’t buy extended warranties or insurance for stuff unless you really think the thing will break in the warranty period. Save warranty paperwork and receipts, especially for lifetime warranties! I got a free muffler one time 10 years after buying it because I had the paperwork.
forge that crap 💩 unorthodox advice:
Always buy winning lottery tickets, rather than the regular kind.
☆Create yourself an emergency fund for unexpected charges, if you suddenly lose your job and/or get sick.
☆ Start putting money into an investment account/ Roth IRA/ 401k in your 20s. ☆ Does your Employer do matching on 401k? Don't throw away money and do at least the minimum % to get full match (average company around 3-6%). So if 6% is $6 and you put in yours and they put in $6 too, you now have $12! ☆ Roll 401k over to your new employer or a IRA at your bank (don't withdraw it).
You're older self will thank you.
I pay property taxes via e-check. If you use a credit card they charge 2.5% of the total. They're thinking of giving all credit card fees to the customers in regard to utilities. 🤑
You can sign up for access to ssa.gov to view your estimated social security benefits and other useful related information.
@jplemmon thanks for the find!
Keep it coming pple. Good stuff !
Find a sales job that offers both commission and passive income. Passive income is the goal to building wealth
rob the bank
@cylee1180 sadly this showed me how out-of-control my cuddling habit was lol
If your unit of currency is not the pound you don't have to use it like @CuddleDuncan does, Lol. Just messing with ya. @JWestfall You are correct about Roth IRA. @Hollydollhugs That is so awesome.
Please don't buy those gallons of cold tea at the grocery. Tea is ridiculously easy to make and costs a few cents.
Eating breakfast at home is so much cheaper. It's probably the meal with the most savings when comparing home and restaurant. But I love eating breakfast out, lol.
Quit adding bacon to everything.
@achetocuddle - Quit adding bacon to everything? Shoot, you might as well just tell me to stop breathing.
@Mike403 LOL, the bacon tip would be impossible for my aunt and her family. Bacon is life to them. I love bacon if it's tender and crispy. Oddly, Seven-11 has good bacon.
@Mike403 I’m not encouraging debt at all. It’s just his choice either way.