One of the biggest reasons I was against contributing to a Roth IRA is my belief that most people won’t make more money in retirement than while working. As a result, they’re unlikely to pay a higher tax rate in retirement than during their working years. This belief also assumes that tax rates will stay […]
Why You Could Make More In Retirement Than While Working Read More »
Happy New Year everyone! I hope you’re enjoying the time off and doing some reflecting. I’ve returned to San Francisco and am ready to relax some more! Now that I’ve shared my 2024 year in review, I wanted to share my goals and resolutions for 2025. Although 2024 was a great year, I still have
2025 Goals And Resolutions: Back To A Simple Retirement Life Read More »
When saving for retirement, understanding the various account types and their funding priorities is crucial for maximizing your savings and minimizing taxes. Below, I break down the key account types and outline a suggested order of funding for optimal retirement planning. The ideal order to fund retirement accounts focuses on minimizing tax liability, reducing the
The Best Order To Fund Retirement Accounts And Minimize Taxes Read More »
There’s a lot of enthusiasm for Roth IRA conversions and Mega Backdoor Roth IRAs—and for good reason. Paying taxes upfront on your retirement accounts can be a savvy move, especially if you’re in a mid-to-lower federal income tax bracket, as it allows for tax-free withdrawals in the future. That said, thanks to the latest standard
Maximizing Tax-Free Income and Withdrawals In Retirement Read More »
Ever since I started saving for retirement in 1999, I’ve been a proponent of tax-deferred retirement vehicles like the 401(k) and skeptical of tax-now vehicles like the Roth IRA. Working in banking, I was already being taxed out the wazoo and had no desire to pay even more. Frankly, I wasn’t even familiar with the
Mega Backdoor Roth IRA: Supercharging Your Retirement Savings Read More »
Being financially independent means having enough passive income to cover your essential or desired living expenses. A common guideline is to aim for a net worth equal to 25 times your annual expenses, often used as a baseline for achieving financial independence. However, this approach is overly simplistic because it depends on the composition and
A Net Worth Equal To 25X Expenses Is Not Enough To Retire Early Read More »
The traditional retirement age of 65 has its roots in historical, economic, and social developments that shaped modern retirement systems. One of the key milestones was the introduction of Germany’s social insurance program in 1889 under Chancellor Otto von Bismarck. This system established 70 as the retirement age, later reduced to 65 in 1916, setting
Reducing The Traditional Retirement Age From 65 To 55 Works Read More »
The 401(k) contribution limit for employees in 2025 has increased to $23,500, up from $23,000 in 2024. The employer contribution limit also rises to $46,500, bringing the combined employee and employer 401(k) contribution limit to $70,000 for 2025. Don’t underestimate the power of employer 401(k) contributions, especially as you advance in your career. As you
2025 401(k) Contribution Limits: Bigger Savings, Better Retirement Read More »
Dear Financial Samurai Readers, This week, I’ve been digging into what might happen if Goldman Sachs’ forecast for a 3% average annual return over the next decade proves true. Interestingly, most readers are skeptical. Yet, if you invested in Q1 2000, it took until November 2012 to actually see returns! So I wonder—are nonbelievers too
Newsletter For October 27, 2024: Low Returns, Retirement Busy Read More »
Before retiring in 2012, I didn’t fear boredom or loneliness. It never occurred to me that I would be bored with so much potential freedom. My main fear was whether giving up a steady paycheck was an impetuous move that could lead me to financial ruin! After I left work, I found myself telling my
Overwhelmed, Not Bored: An Unexpected Challenge Of Retirement Read More »
