Category: Retirement Planning
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No, 401Ks Aren’t Scams
Recently, I’ve seen many people on Twitter, TikTok, and other social media pushing the idea that 401ks are scams. In my opinion, that can’t be any more wrong. Do 401Ks have drawbacks? Of course. There are limited investment options, contribution limits, potential fees, and an age limit for when you can start making withdrawals. However,…
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How to Take Money Out of Your 401k Without Penalty
In most instances, a withdrawal from a 401K prior to 59½ results in the amount being taxed at your income tax rate plus an additional 10% penalty (IRS). This rule is to encourage people to use these funds only for retirement. However, despite what you might think, there are several exceptions to this rule. In this…
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The Ultimate Guide to IRAs
An IRA, or Individual Retirement Account, is a type of investment account specifically designed to help individuals save for their retirement. An IRA itself is not an investment. Like a checking or savings account, it is simply an account to invest in. In other words, just putting money into this account doesn’t mean you are…
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The Ultimate Guide to 401K Plans
Retirement planning is one of the most important aspects of personal finance, and a perfect place to start your retirement planning journey is with 401K plans. Like an IRA, a 401K plan is a retirement plan that offers tremendous tax benefits and other incentives. One of the most notable features of this plan is that…
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Why You Need to Plan for Retirement
Even as young children, we have been told how important it is to plan for retirement. However, this idea is never explained in detail. Instead, we usually heard this in passing rather vaguely. The root of this very well might be due to how retirement planning used to be. Some of our parents and grandparents…