1 / 11

How to Become a Millionaire

How to Become a Millionaire. Retirement Accounts. To Retire. Save $20,000 for 47 years with 8% interest Worth $744,640 10% interest, Worth $1,763,949 Every Million saved = $50,000 in retirement With 8% annual interest rate Calculate what you want to make in retirement

geraldine-aguirre
Télécharger la présentation

How to Become a Millionaire

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. How to Become a Millionaire Retirement Accounts

  2. To Retire • Save $20,000 for 47 years with 8% interest • Worth $744,640 • 10% interest, • Worth $1,763,949 • Every Million saved = $50,000 in retirement • With 8% annual interest rate • Calculate what you want to make in retirement • Consider Social Security payouts • Consider retirement account payouts

  3. What you think and want to know • Answer I think and I want on page 32 • Watch Dave Chapter 3, Part 1 • Do you have all page 33 to 35 answers? • IRS (Internal Revenue Service) codes • Retirement account = tax savings • All names based on tax code • Just a name of account - have all types of investments in the account • Dressed up in a coat

  4. Roth • Roth • Pay taxes now & Never again • Money grows tax free • Tax Deferred Accounts • Make more now than retirement • Pay taxes latter = pay less in taxes • If take $ early = penalty

  5. Pension Plan • SEPP • Self-employed person may deduct up to 15% • How a pension work now days • Tax, employer and (minimum) employee funded • Get to retire without saving much / any • Who gets them? • Politicians, Police, Fire, Teachers – Public Servants

  6. 401(k), 403(b) • Companies really do not have pensions • Most are now self-funded and matching plans • 401(k) = company 403(b) = non-profit organization • 2010 median match = 3% of pay • Meaning, earn $40,000 you put at least 3% or $1,200 in 401(k) and employer will put in 3% or • $1,200 free money into your account • Law forces you to enroll or opt out • Can usually put up to 15% into 401(k) up to $17,000

  7. 457 • Deferred compensation • For government employees • Do not use a Guaranteed Investment Contract • Difference between 457 & 401/403 • No 10% penalty for withdrawal before the age of 59½ • Independent contractors can participate

  8. More on Retirement • You should be funding your plan whether your company matches or not. • You should always rollover retirement plans to an IRA when you leave the company • Or, if allowed roll to your new 401(k) • Or, you will be charged more fees • Use a direct transfer or may get charged taxes and penalties • Answers: • Pay the taxes separately and you understand all taxes will become due

  9. Baby Step 4 • Never BORROW on your retirement plan • Will become a habit • Fund 401(k) or other plan up to the Match • Above the match, fund Roth IRAs • Complete 15% of income by going back to your 401(k) or other plans

  10. Social Security • Estimated monthly benefit • Start at age 62 and 1 month in 2050 • $1,061.00 • For your estimate, we assumed no future increases in prices or earnings

  11. Social Security • Worksheet – Watch Dave and answer questions • Will go over

More Related