Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
Ladies, Kevin is worth over $450 million, which makes up for his five-foot-two-inch frame. While Kevin’s possibility for a growth spurt is over, you can grow your 401K account to seven figures!
THE MAJORITY OF 401-K ACCOUNTS WILL KEEP PEOPLE WORKING UNTIL…….. beep, beep, beeppppppp…….
The share of U.S. workers covered by a traditional employer-sponsored pension plan has declined to almost zero for nongovernment-employed folk over the past few decades. Fewer jobs today have employer-sponsored retirement plan coverage, and those with coverage are much more likely to offer Employee Defined Contribution (D.C.) plans, such as a 401(k). Adequately funding those benefits is your responsibility!
REALITY
Retirement has transitioned from pensions, savings, and Social Security {S.S.} to government pensions, at-risk S.S., and almost 100% dependence on your savings.
Translation- GET OFF YOUR ASS AND SAVE!
- For most Americans, Social Security is the primary source of retirement income. However, analysis indicates that it will become insolvent by 2033.
- Cumulative inflation has increased your expenses by ~16 percent since 2021. I’m assuming most of you did not get a 16 percent increase in take-home pay in that same time frame.
- More than 40% of Americans saved ZERO for retirement in 2022, partly due to soaring inflation that hit 40-year highs.
- More than 50% of Americans reduced or entirely discontinued their retirement savings in 2022.
- The good news is that life expectancy has increased. The bad news is that you need to save even more money! Between 1950 and 2019, life expectancy rose from 48 to 73 years. Adding to the time frame you may have to work, S.S. raised the full retirement age in the U.S. to 67 for those born in 1960 or later.
PLANNING, DISCIPLINE AND CRITICAL THINKING
Everyone starts their retirement savings with the same number, $0.00. But with planning, discipline, and smart investment strategies, my smart readers will grow their balance into a million-dollar PLUS account! I know multiple people who retired with seven-figure retirement accounts! YOU CAN TOO! KEEP READING!
YOUR ACTIONS TO RETIRE WITH A SEVEN-FIGURE OR MORE BALANCE!
- Earn more than you spend. STOP BUYING CRAP (your technical word for the day) that will eventually reside in a landfill. We have more than enough garbage in dumps.
- Increase your percentage contribution to retirement savings! – NOW!
- Maximize Your Contributions: Contribute the maximum amount your employer and the IRS allow. For 2023, the maximum contribution for employees is $22,500, and $66,0000 for combined employee and employer contributions. If you are 50 or older, your maximum limit increases to $30,000.00.
- Take Advantage of Employer Match: Contribute enough to get the full match – it’s one of the easiest ways to accelerate your account growth.
- Rebalance Your Portfolio Regularly: Rebalancing involves selling some well-performing investments and buying others that may be undervalued. This discipline ensures you stay on track to meet your goals.
- Consider a Roth 401(k): If your employer offers a Roth 401(k) option, consider contributing to it. Roth contributions are made with after-tax dollars, but withdrawals in retirement are tax-free. This can be a powerful strategy to grow your retirement savings tax-efficiently.
- Increase Contributions Over Time: EVERY time you get a raise, increase your 401(k) contributions.
- Seek Professional Advice As Needed: Consider consulting with a financial advisor or planner specializing in retirement planning. They can help you create a tailored strategy for growing your 401(k) into a million-dollar account based on your specific financial situation and goals.
- Take Advantage of Catch-Up Contributions: If you’re 50 or older, you can make additional “catch-up” contributions to your 401(k) on top of the regular contribution limits. This can help accelerate your savings in the years leading up to retirement.
- Stay Committed: Growing your 401(k) into a million-dollar account requires time, discipline, and a plan. Stay committed to your long-term financial goals, and the power of compounding will work in your favor.
CONCLUSION – HOW PLANNING, DISCIPLINE, AND CRITICAL THINKING CAN PRODUCE OVER $2.5 MILLION!
ASSUMPTIONS – SLOW AND STEADY BABY!
Cyrene started contributing to her 401-K at age 28, with a salary of $100,000. She contributes ten percent of her income, and the company matches six percent. Invests in an S&P 500 ETF returning ~eight percent on average annually. Thirty years later, Cyrene’s 401-K is worth ~$2,548,163.00! DROP THE MIC!
WHAT SUBJECTS DO YOU WANT TO READ NEXT? WHAT QUESTIONS CAN WE ANSWER? UNTIL NEXT TIME!
LET’S MAKE SOME MONEY! – CRYPTOCURRENCY, ANYONE?
YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE!
St Jude Hospital: The mission of St. Jude Children’s Research Hospital is to advance cures and means of prevention for pediatric catastrophic diseases through research and treatment. Consistent with the vision of our founder Danny Thomas, no child is denied treatment based on race, religion, or a family’s ability to pay.https://www.stjude.org/
Wounded Warrior Project: An American charity and veterans service organization that offers a variety of programs, services, and events for wounded veterans of the military https://www.woundedwarriorproject.org
Folds of Honor: Providing life-changing scholarships to the spouses and children of America’s fallen or disabled military. And now, our mission expands to the families of America’s first responders. On our watch, those who protect our freedoms and our families will know they are not forgotten. https://foldsofhonor.org
Wilson’s No-Kill Animal Shelter: A N0-Kill shelter that is a top-rated non-profit. They compassionately care for all their animals. https://wcnkas.org
Tunnel To Towers: Since 9/11, we have been helping America’s heroes by providing mortgage-free homes to Gold Star and fallen first responder families with young children and by building specially adapted smart homes for catastrophically injured veterans and first responders. We are also committed to eradicating veteran homelessness and helping America to Never Forget September 11, 2001. https://dogood.t2t.org/give/320847/#!/donation/checkout
TRUST ME – YOU WILL LIKE THE BELOW BLOGS!
ACHIEVING FINANCIAL FREEDOM AND GENERATIONAL WEALTH – WITH 401-K, IRA, ROTH IRA
ACHIEVING FINANCIAL FREEDOM AND GENERATIONAL WEALTH – WITH: 401-K; IRA; ROTH IRA!
ACHIEVING YOUR FINANCIAL FREEDOM WITH THE 401-K & GREAT NEWS – CONTRIBUTION LIMITS INCREASE IN 2022 – WHAT ARE YOU WAITING FOR!
BUILDING FINANCIAL FREEDOM/LEGACY TEN DOLLARS AT A TIME!
SO YOU DECIDED TO GIVE 3/4 OF A $$-MILLION TO A COMPANY WORTH $$-BILLIONS?
THE ROTH IRA IS SO GOOD THE FEDS MADE A MISTAKE!
YOUR BIGGEST RISK TODAY – A LONG LIFE!
ONE OF THE WORSE MISTAKES YOU CAN MAKE WITH YOUR 401 – (K) WHEN CHANGING JOBS
RETIREMENT PLANS OTHER THAN THE 401-K, TO GENERATE > $1 MILLION PORTFOLIO!
This Group of People Is Most Likely to Retire Broke
NEW SERIES – CRITICAL THINKING – BY: DR. JAMES LEEMANN
USING CRITICAL THINKING IN PURSUIT OF POST-HIGH SCHOOL EDUCATION – CRITICAL THINKING SERIES – PART 2
CRITICAL THINKING – TOP TEN IN-DEMAND SKILLS FOR MANY EMPLOYERS! – CRITICAL THINKING PART 3: WHAT ARE THE UNIVERSAL STANDARDS OF THINKING?
CRITICAL THINKING – WHAT LEVEL OF THINKING ARE YOU? CRITICAL THINKING PART 4
THINKING IS DRIVEN BY QUESTIONS, NOT ANSWERS – PART 5 CRITICAL THINKING SERIES: WHAT QUESTIONS DO THE BEST CRITICAL THINKERS ASK?
WHAT {DO YOU, AS A} CRITICAL THINKER, DO TO LEARN? – PART 6A – CRITICAL THINKING SERIES
WHAT DO YOU AS A CRITICAL THINKER DO TO LEARN – PART 6B – CRITICAL THINKING SERIES
WHAT HABITS DO CRITICAL THINKERS USE WHEN READING AND WRITING? PART 7A – CRITICAL THINKING SERIES
PART 7B: SUBSTANTIVE WRITING: WHAT HABITS DO CRITICAL THINKERS USE WHEN READING AND WRITING? – CRITICAL THINKING SERIES
WHAT DOES IT MEAN TO BE A FAIR-MINDED CRITICAL THINKER? – CRITICAL THINKING SERIES – PART 8
WHAT DOES IT TAKE TO DEAL WITH YOUR IRRATIONAL MIND? – CRITICAL THINKING SERIES – PART NINE (9)
WHAT STAGE ARE YOU IN CRITICAL THINKING DEVELOPMENT? – FINAL CRITICAL THINKING SERIES – PART 10
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an N.C. 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, 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.
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