On this week’s P&B Money Minute we discuss how to save 1x your income by age 30 and 3x by age 40 using a few automated tools we recommend. Marcus reveals why he finally logged back into his retirement accounts after a 12-month hiatus and the three step process you can follow to potentially increase your retirement savings without impacting your takehome pay. Plus, the automated tools you can use to make retirement savings easy. On this show we’ll explain:
- Maximizing your tax cut to supersize your annual IRA/401k savings
- How one change in how you invest in your 401k combined with an employer-match might net you up to $70,000 by retirement
- Why Investor.gov has become our new fav tool for quickly estimating FI/RE, compound interest, and retirement savings goals
- The pros/cons of investing in a Retirement Target Date Fund versus an Index Fund
- Why compound interest on savings from ages 20-40 might have more impact on your retirement than your contributions from ages 40-60
References Mentioned in this Show
- Investor.gov
- Mint.com
- P&B: How to Save 1x Your Income by Age 30 and 3x by Age 40
- P&B: The Dos and Donts of Money by Suze Orman (Review)
- PB65: The Billionaire Mindset with Tyrone Jackson
- PB71: Financial Residency ft. Ryan Inman
- Business Insider: How your tax bracket will change in 2018
- GoBankingRates: 1 in 3 Americans Have $0 Saved for Retirement
- GoBankingRates: 40% of Millennials Haven’t Started Saving for Retirement
- Investopedia
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FYI, I’m a middle aged white woman, with an Asian sounding name. When I visited invest.gov, a black couple shows on my screen.
Thanks for your podcast. It is very well done.
Appreciate the feedback and confirmation of the government site! lol
Love the show & I’m not a millennial lol. Just a counter point on target funds, Susie is incorrect. When you’re younger the funds are more risk averse, not less. That would defeat the whole purpose. It doesn’t start to get conservative until you’re way older lol. Like when retirement is actually getting closer versus this thing we speak of that sounds so far away lol My funds are with vanguard & I’m 40., my current ratio in my target fund is 90% stocks & 10% bonds. Which I’m fine with because i got a late start on savings & investing so I need to catch up. Susie needs to get it together lol. Vanguard will show you on each fund the ratios for each year of the fund so you can see if it works for you etc I have a target fund right now just so I could have something. It’s better than nothing. My current job has no 401k so I’m on my own to set up my future. I’m also in the process of paying off debt, once that’s done then ixll invest in other funds like s & p 500, some etfs etc but I’ll still keep investing in my target fund. More $ for retirement is a problem i look forward to lol
I need to take advantage of Vanguard more at the day gig. They got this game on lock apparently. Thanks for listening and commenting!