ACHIEVING YOUR FINANCIAL FREEDOM WITH THE 401-K & GREAT NEWS – CONTRIBUTION LIMITS INCREASE IN 2022 – WHAT ARE YOU WAITING FOR!

The Feds increased 401K contribution limits to $20,500 in 2022, which is an increase from years 2020 and 2021 limit of $19,500. Catch-up contributions to retirement accounts for those age 50 and up will remain unchanged at $6,500. Including their regular contributions, people 50 and up will be able to stash up to a limit of $27,000.

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WHAT DO YOU FEAR MORE, RETIREMENT OR DEATH?

The problem is worse today than my parents’ generation because pensions in the private sector have been eliminated. VOLUNTARY 401-K plans have replaced the Majority of companies’ pensions.  The 401-K was designed to mimic a pension’s retirement income.  BUT only if YOU: 1. Start saving EARLY, in your 20’s,  2. Contribute a significant percentage of your compensation to your plan,  3. Work for a company that matches some portion of your ...

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THE “RULE OF 72” – YES YOU NEED IT!

        Have you heard of the “Rule of 72”?  This simple rule helps your HARD-EARNED MONEY grow!  The “Rule of 72” approximates how many years it will take for your money to double, given a fixed rate of return.  The formula: {72 / interest rate = Number years to double}. How long do you believe it will take to double your money if placed in a typical U. S. savings account?   ...

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SHOULD YOU PAY OFF DEBT OR SAVE AND INVEST?

      RULE # 1:   If your debt interest rate is higher than your targeted investment return, than prioritize paying off debt.  Place your money where it does the most good. https://wealthbuildingpowers.com/2018/04/05/four-steps-to-achieve-financial-freedom-by-becoming-debt-free/ If you want to invest in the S&P 500 ETF, which averages about eight to ten percent annual returns you should prioritize paying off HIGH INTEREST credit card debt which can be as high as ~30%. The good news, student loan interest ...

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