SEP IRA

Posts Tagged ‘personal’

Question: Where or how can a young person begin to learn about financial management?

There is so much information available regarding things like 401k programs, IRAs, taxes, mutual funds, etc, that it can seem a bit confusing and overwhelming, especially when young people often make so little money that it hardly seems worth the effort to bother saving at all.

Do you know of any websites or other references that go over these basics in a relatively simple and straightforward manner, so that the average beginner can understand how to manage their finances smartly and responsibly?

What would you tell your child about investment and saving when they begin to enter the workforce?

Answer: If you want to learn some sound financial basics, I suggest starting at the public library. Look for books by Suze Orman and David Bach, both of whom give clear introductions to personal finance. I like to check them out as audio books and listen to them on my iPod when possible. For you in particular I would recommend Suze Orman’s book “Young, Fabulous & Broke”. It’s a great introduction for finance for someone in the earlier years of their financial life.

You can also look for lots of information in a huge range of styles from the large community of personal finance bloggers out there. I run a blog called HealthyWealthyHappyWise over at http://money.kevingunn.org/ . I link to several others that I enjoy along the right column on my page. Some are pretty technical, some are more personal. Almost all of them link to more blogs in the style liked by that blog’s author. Go find ones that suit you. They’ll keep you inspired to keep moving forward and can be a great source of tips, tricks, and potential pitfalls.

Step one in any sound financial plan is to create a spending plan and STICK TO IT. Everything else hinges on that. If you spend even a tiny amount more than you earn, you’re heading for trouble. I wrote fairly extensively on how to get started on a spending plan here: http://money.kevingunn.org/index.php?/archives/5-The-Weekly-Spending-Plan-Part-1-Why-Weekly.html .

Finally, remember that an early start is the key to finishing well-off. Don’t postpone! Get started now.

Ira Krakow’s Animated Bouncing Ball Blender 2.49b Tutorial

Question: is it mandatory to fill out the other parts of the TurboTax application ie. tax/credits, deductions,?

questions about ira accounts and other questions not related to federal or state taxes etc. to people it doesn’t apply to have to be filled out?
Because those are a lot of extra questions for someone whose taxes are simple.

Answer: No. Only answer the questions that are related to your tax situation.
If you do not have an ira account- just skip the questions and other questions that are not related just skip them.
It is easy.

Simple Minds: Belfast Child (up-scaled HD)

Question: How can I retire early without cashing in IRA’s?

I’m 31, self employed and gross between $100,000 and $120,000 per year. My wife works part time and makes approx. $25,000 per year. I am starting a SEP IRA with annual contributions of 25% with 2 additional roth IRA’s for my wife and I making the maximum annual contributions. How can I retire early (How should I invest) so that I don’t need to draw on my IRA’s until 59 1/2?

Answer: Well, you are young and have time to invest aggressively and your should be aggressive.

Depending on the type of company you have (C corp, S corp, etc) there are other savings opportunities for you.

You should run a retirement calculation to get the amount you need to retire on and then calculate how much you need to save to get there.

Good luck.