Hello SOTGC community,
I recently appeared on Fox 5 News to discuss 2015 Financial Resolutions that everyone should consider making (and keeping). One of those resolutions is contributing as much as possible to your employer-provided retirement plan in order to build your nest egg while paying less in taxes. Evening news anchor, Andrew Luria, asked me to comment on various types of retirement plans and how men and women can improve their financial literacy.
This year the federal government is giving you a gift in the form of a generous but underused tax break. Your new year’s resolution should be to take advantage of it. If your employer offers a retirement plan such as a 401(k), 403(b) or Thrift Savings Plan (for federal government workers), in 2015 you can contribute as much as $18,000 per year ($24,000 if you are 50 or over).
As I wrote in The Five Rules that Helped Me Become a Millionaire Before 40, contributing the max to my retirement plan was one of those important rules. It really is doable, ladies, assuming you live below your means and start contributing in your early 20’s. And if you’re in your 30’s, it’s not too late to start. You won’t reach millionaire status by 40, but you’ll have a nice nest egg by the time you’re 50, as long as you make smart choices about where you invest your money.
For more tips on how to maximize the use of your retirement plan, read this article. If you have friends or colleagues who could benefit from this new year’s resolution, please share this post on your social media channels.