IRS INCREASES 401(k) LIMITS FOR 2022 – WHY ARE YOU STILL SITTING THERE?  MOVE!

IRS INCREASES 401(k) LIMITS FOR 2022 – WHY ARE YOU STILL SITTING THERE?  MOVE!

This chart shows the IRS’s three different contribution limits and how they differ from 2021 to 2022.

Disclaimer: Good Day, Readers.  WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.  

I HEAR PEOPLE MUMBLE – “I CAN’T AFFORD TO CONTRIBUTE THE MAXIMUM” – NOT ASKING YOU TO!

The below shows how much you can potentially accumulate in 35 years by saving ONLY $6,000.00 annually- IF you ARE SMART ENOUGH TO START EARLY!

ASSUMPTIONS

  • Current Compensation: $75,000.00
  • Your Contribution Rate: Eight Percent {8%} = $6,000.00 annually and ONLY 29% of 2022 Maximum Contribution Limit
  • Employer Match: Three Percent {3%} – WHY, PLEASE TELL ME WOULD YOU NOT TAKE THREE PERCENT OF YOUR PAY?
  • Annual Returns: Ten Percent {10%}
  • Investment: S&P 500 ETF {VOO}
  • Years to Retirement: 35 {HEY-Share this with your brilliant kids.  I have a terrible joke-will spare you today!}
  • Projected Funds at Retirement$3,139.529.00. {Can I get an A-AMEN A-AMEN; A-AMEN, AMEN, AMEN- HALLELUJAH!}

SHOULD YOU TARGET THE MAXIMUM CONTRIBUTION TO YOUR 401-K?

The simple answer is YES!  If you can afford it by EARNING MORE THAN YOU SPEND!   

I know $20,500 is a lot of money.  I did not hit the maximum amount until sometime in my 30s.   Whatever your percentage, you MUST match your employer’s contribution offers.  Too many Americans leave money on the table by not taking the FREE money their employer has offered.”  You cannot give away free money!  If you want to do that, reach out, and I will give you my mailing address!

For those who have reached the maximum – {YOU FRUGAL FOLKS ROCK!}, there are other tax-advantaged retirement accounts available, including a traditional and ROTH IRA.  I LOVE the ROTH IRA. In a Roth IRA, you do not get a tax deduction on the money you put into the plan, but you NEVER EVER must pay tax on any of the $$$$$$$$!.  EVER PEOPLE!

THE MAGIC OF COMPOUNDING AND TIME!

Warren Buffett, CEO and Chairman of Berkshire Hathaway, calls compounding “MAGIC”.  The earlier you or your kids start, the faster you get to YOUR FINANCIAL FREEDOM

EXAMPLE #2 ASSUMPTIONS

  • Current Compensation: $75,000.00
  • Annual Savings: $8,000.00 = 39% of 2022 MAXIMUM
  • Employer Match: Three Percent {3%}
  • Annual Returns: Ten Percent {10%} 
  • Investment: S&P 500 ETF {VOO}
  • Retirement AGE: 65
  • YOUR FINANCIAL FREEDOM: The below chart demonstrates if YOU start contributions at the age of 25, you will have ~$4,536,573.00 at the age of 65.  {HALLELUJAH, HALLELUJAH, HALLELUJAH, HALLELUJAH, HA-LL-EL-UJAH!}
  • The longer YOU wait to get started, the less money you accumulate.  

Regardless of your current age, JUST GET STARTED!

 

 

CONCLUSION:  IRS INCREASES 401(k) LIMITS FOR 2022 – WHY ARE YOU STILL SITTING THERE? MOVE!

Maxing out my 401-K contributions allowed me to achieve FINANCIAL FREEDOM!

I GUARANTEE YOU WILL NEVER REGRET FUNDING YOUR 401-K!  If you do, I am happy to take some of your MILLIONS off your hands!  I know how annoying those taxes can be! 

 

LET’S MAKE SOME MONEY – CRYPTOCURRENCY IS ACCEPTED! 

YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE! – SOME CHARITIES I SUPPORT

St Jude Hospital:  https://www.stjude.org/

Wounded Warrior Project:  https://www.woundedwarriorproject.org

Folds of Honor:  https://foldsofhonor.org

Wilson’s No-Kill Animal Shelter:  https://wcnkas.org

TRUST ME – YOU WILL LIKE THE BELOW BLOGS! 

 

THE ROTH IRA IS SO GOOD. THE FEDS MADE A MISTAKE!

https://wealthbuildingpowers.com/2020/01/13/the-roth-ira-is-so-good-the-feds-made-a-mistake/

 A ROTH IRA WILL IGNITE THE ENGINE FOR YOUR KID’S FINANCIAL FREEDOM

A ROTH IRA WILL IGNITE THE ENGINE FOR YOUR KIDS FINANCIAL FREEDOM

KEEP IT SIMPLE STUPID {KISS} – THE S&P 500 ETF INDEX

KEEP IT SIMPLE STUPID {KISS} – THE S&P 500 ETF INDEX

COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY

COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY

WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!

WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!

RETIREMENT PLANS OTHER THAN THE 401-K TO GENERATE > $1 MILLION PORTFOLIO!

RETIREMENT PLANS OTHER THAN THE 401-K TO GENERATE > $1 MILLION PORTFOLIO!

DO YOU WANT TO JOIN THE 401K PLAN MILLIONAIRE CLUB? {KINDA OF LIKE THE MILE HIGH CLUB – BUT A LOT LONGER LASTING!}

DO YOU WANT TO JOIN THE 401K PLAN MILLIONAIRE CLUB? {KINDA OF LIKE THE MILE HIGH CLUB – BUT A LOT LONGER LASTING!}

401-K YEAR-END SALE!

401-K YEAR-END SALE!

SO YOU GOT A HUGE TAX REFUND – NOW WHAT?

SO YOU GOT A HUGE TAX REFUND – NOW WHAT?

YOUR BIGGEST RISK TODAY – A LONG LIFE!

YOUR BIGGEST RISK TODAY – A LONG LIFE!

INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?

INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?

FINANCIAL LITERACY IS JUST NOT THAT COMPLICATED – TRUST ME!

https://wealthbuildingpowers.com/2019/04/01/financial-literacy-is-just-not-that-complicated-trust-me/

 

 

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Thank you to my followers and readers for your likes and comments.  All comments, recommendations, and feedback are welcomed and utilized to improve this blog.

ABOUT ME

I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an NC. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.

I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life.  It is my time to serve and give back.

DISCLAIMER

I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, and real estate and am happy to share my finance and investment lessons.  I am NOT a licensed financial advisor.  Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss. 

 Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.  

I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.

To follow my daily posts on Instagram, CLICK BELOW:

 http://instagram.com/wealth_building_powers

Powers Investments Management, LLC

This blog will provide, information and simple strategies, that will assist you to achieve YOUR financial objectives and long term targets. For over 30 years, I solved multi-million dollar problems, for Fortune 10-250, companies. My formal education includes: Business, Finance and Chemical Engineering {Problem Solving} at: Harvard, Rutgers and North Carolina State. And an additional 30+ years, managing my family’s investment decisions. I currently manage/advise people with net-worths ranging from the tens of thousands to several million dollars.

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