https://thefatherblog.com/finance-monday-101
Good morning everyone! I hope you had a great weekend. We are in week 2 and I’m going to jump into some Finance 101, simple, easy, I don’t want to think about stuff, where to put my $$.
#1 Get an advisor or financial institution to help you set up your goals for the future or retirement. I mentioned in my first post that nobody cares about your money like you do, which is always true. But better to have a “professional” handle this if your first plan is to let your money sit in a savings account. Because savings accounts really aren’t cutting it.
As of October 25, 2024, the national average savings account interest rate is 0.45%:
As of September 2024, the annual inflation rate in the United States is 2.4%
I’m no mathematician, but looks like the average savings account is losing you about 2% a year.
#2 Max our your IRA contributions each year.
The maximum contribution to an IRA in 2024 is $7,000 for those under 50 and $8,000 for those 50 or older:
Contribution limit: The total amount you can contribute to all of your traditional and Roth IRAs in a year is $7,000 or $8,000, whichever is less
#3 Take advantage of your company’s 401K match, and then EXCEED it. This is the easy one. The money contributed for your 401K is pre tax dollars! So your yearly income will be less at the end of the year when you pay taxes. Also, say you contribute 5%. Fantastic. But I bet you can learn to live on a little less each pay day if you contribute maybe 7%, 8%. or 9% as well and you won’t even miss the money after a couple paychecks. But this extra will really build your wealth for the future.
Have a good Monday everyone!!