Planning for retirement is usually one of the primary goals in a financial plan. However, the concept of retirement is changing. Years ago, retirement was a clear concept. You worked for a company until you were 65 (or thereabouts), and then you never worked another day. If you lived on the East Coast, you moved […]
Retirement Planning
Should I Contribute to a 401(k) Roth?
Most companies offer traditional 401(k) accounts to employees. In these accounts, employees make pre-tax contributions (up to $18,500 in 2018) to save for retirement and reduce current taxable income. When funds are withdrawn (not rolled over) from the 401(k), the entire withdrawal is taxed at the taxpayer’s current tax rate. Hence, if you are in […]
The Rule of 72
Compound interest is the most powerful force in investing. By allowing our investments to grow through the magic of compounding, an investment of $50,000 can grow to $1,000,000 over a 40-year investment period at a rate of return of just under 8%. We see interest rates and rates of return, but it is not always […]
Education Reimagined
I recently had the honor of listening to Salman Khan, founder of Khan Academy, at the Financial Planning Association NorCal conference. The mission of Khan Academy is to provide a free, world-class education for anyone, anywhere. Listening to Khan was quite inspiring. The genesis of Khan Academy was when he tutored a cousin in math […]
Invest for Future Healthcare Costs and Save on Taxes Now!
Open enrollment season for employee benefits is upon us. One thing worth checking out is a high deductible healthcare plan (HDHP) coupled with a Health Savings Account (HSA). HSAs offer a unique way to save for current and future medical expenses. The HSA is the only investment account in which contributions are tax-deductible and distributions […]