Don’t Want to Think About Saving for Retirement? Just Do This.

Personal finance can be overwhelming. There are so many steps, dos and don’ts, behaviors to adopt, what have you. Once in a while it would be nice to have a fail-safe, simple solution to follow to make sure you have enough for retirement.

Don't Want to Think About Saving for Retirement? Just Do This--www.thethreeyearexperiment.com

As Mr. ThreeYear and I struggled to pay off our debt and become more financially responsible, I met with a personal finance instructor who taught at a local college. I showed her the ins and outs of our finances, and I remember her saying, “you’re not even maxing out your 401K?” We weren’t, at the time. We were only contributing enough to get the match, because we were saving for a house downpayment. We’d contributed more in the past, but never maxed it out.

It took us another two years to completely max out Mr. ThreeYear’s 401k, but when we started to do so, I realized that for many people, this was the simple key they were looking for to save for retirement.

Maxing out your 401K is the single best way to save for retirement, lower your tax implications, and spend less, all in one fell swoop. Continue reading “Don’t Want to Think About Saving for Retirement? Just Do This.”

The i401K: Your Best Friend as An Independent Contractor

The i401k (also known as the Individual 401K or Solo 401K) is the 401K plan for Independent Contractors. Just as a traditional 401K offers myriad benefits for employees like tax deferred retirement savings and the benefit of lowering your tax bill, the i401K plan was set up to offer the same benefits for independent contractors.

desk area--www.thethreeyearexperiment.com
Where the independent contractory-stuff happens

Tax Savings for Independent Contractors

Since I’m an independent contractor, the i401K allows me to contribute up to $54,000* a year, tax free, for retirement. Continue reading “The i401K: Your Best Friend as An Independent Contractor”