If you work for a company that has a 401(k) plan, you should be saving for retirement unless you A. expect to hit the lottery in the future, B. are a trust fund baby, or C. would enjoy growing old and being homeless. If neither of the three apply to you, please continue reading! First off, you should hopefully be spending less than what you make. Second, if you have any debt, you should be paying off the highest interest rate debt off first. Then you should try and have an emergency savings in case you lose your job. Only, then should you think about retirement savings. And remember, the earlier you start, the faster money can grow due to compound interest. Assuming that you'd be able to start and save for retirement today, you should always contribute what your company matches at the very least. For example, if I contribute 2% of my salary to my 401(k), my company will match 2% of my pay. When I contribute up to 5% of my salary to my 401(k), my company will match up to 4% of my pay. Anything above that, my company will only match 4%. If you don't contribute to the maximum of what your company will match, you might as well start burning up dollar bills. Next you may have the choice of placing savings into a regular 401(k) or a Roth 401(k). Pre-tax money you put into a regular 401(k) is taxed later when you take it out upon retirement. You should put money into a 401(k) if you expect to be in a lower tax bracket when you retire and/or think that U.S. tax rates will be lower when you retire. Otherwise, a Roth 401(k) is what you should choose if you think that you will be in a higher tax bracket when you retire and think that U.S. tax rates will be higher when you retire. The maximum you can contribute is $18,000 as of this year (2016), so if you can max that out, your future self will thank you. I personally use low-cost index funds like Vanguard. If you're very healthy, have minimal medical bills, and if your company health plan offers it, you can also utilize your Health Savings Account (HSA) as a stealth retirement savings account. These high deductible health plans have a contribution limit of $3,350 this year. These contributions are tax deductible, savings can grow tax free, and savings are always available for qualified medical expenses year after year. Some plans also allow you to invest in stocks and bonds after hitting a certain savings limit. Make sure that this is for you, because if you do have health issues, the money spent on your high deductible plan yearly might not be worth it in the long run. Before age 65, you can always withdrawal these funds for qualified medical expenses and not incur any penalties. But, after age 65, you can withdrawal this money and use it for any non-medical expenses but you will be taxed similarly like a regular 401(k). Also, if your company is public and participates in a stock purchase plan, be sure to take part in it, especially if you are able to purchase stock at a discounted price! Regardless of your company's future, if you are able to buy the stock at a discounted rate and can sell it at the open market immediately at a higher price, that's money. Otherwise, feel free to invest in your company as much as you feel comfortable. Just remember that working at a company with the majority of your net worth in company stock can be risky. Ex-Enron employees are a perfect example. Other than that, be sure to exercise, eat healthy, and brush/floss your teeth. Be sure to utilize your health plans for all the preventative care that you are eligible for!
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If you're not trying to turn pro or play competitively, here are some tips I recently picked up while pretending to golf. Hopefully they might save you a few shiny pennies the next time you go golfing with your buddies.
The later you play, the cheaper you pay! Since it's hotter and the grass has been destroyed by the earlier golfers, twilight hours or super twilight hours are the way to go! Depending on the course, twilight hours are after 2PM. On the weekends in my area, 18 holes are $52 dollars, twilight hours are $35, and super twilight hours are $22. Carts are cheaper too to rent. Unless you're trying to get skin cancer in the future, be sure to bring plenty of sunscreen or cover yourself up with long sleeved clothing. Next, if you must have new golf clubs, you may want to check out Costco to see what is available. Otherwise, check craigslist, friends, or family members who have retired from the sport. A used set that fits you well is a good idea for causal play. Golf just isn't as popular as it was before. It's a declining sport in the U.S. that was more popular with the baby boomer generation than our current millennial generation. Nike and Adidas recently decided to get out of the golf business for the very same reason. From what I've seen in the neighborhood, bikes and cycling seem to be very popular these days. So I'm sure that there are plenty of retired golfers who would be more than happy and willing to part with their sets. Finally, bring your own balls and pack a cooler with snacks and drinks. Assuming that you're still getting better, you'll probably lose a lot of balls. And there's no better way than to cheer yourself up with soda, beer, and chips! First, a few general tips about getting your house ready for show. First impressions count! Make sure that your place is as clean as possible! Throw away any unnecessary items and remove any personal pictures. Most normal people imagine moving into an empty home with no furniture. If you have sentimental furniture from the 80s still in your vacant house, now's the time to get some exercise and breathe heavily while moving it elsewhere. Then make any necessary repairs to your home with licensed and bonded contractors. Next, test everything as if you were living there. From my limited experience, most people dislike taking cold showers and would rather take warm ones. Make sure that doors/windows open and close, hot water works, the heater/ac work, that there are no leaks, etc. So you've finally listed your house for rent on Zillow for free and spent countless hours cleaning, repairing, and sweating. Now, welcome to the jungle... First, have a list of criteria that you reasonably want in a tenant. Criteria that you should definitely use to screen and consider potential renters include job history, credit score, rental history, income, criminal history, pets, reason for moving, bank accounts, and financial history. Tenants who work in corporate America tend to have income that is more easily verifiable with their W-2s and bi-weekly paystubs. Also, they usually have been through a background check prior to employment and hopefully they can't be too loco. If it's a tenant with their own company or retired, make sure that they have more than enough money in their bank accounts to cover months of rent. Besides the initial rental application, be sure to get at least 2 months worth of paystubs, current bank accounts, and a credit score for each person. Be sure this is verifiable, as doctored documents can be provided by unscrupulous people. There are professional renters move from place to place, so be sure to question something if it doesn't add up. It's always better to be safe than sorry. If the real estate rental market is hot in your area and your house is in high demand, feel fortunate. Have you ever collected baseball cards or played fantasy sports before? No worries; your countless hours of comparing each player's statistics is transferable in picking a tenant. Be sure to pick the one that is the most financially stable and fits your time-frame. Are you planning to move back into the house in a year? It might make more sense to pick a tenant who is willing to pay more than another tenant looking to stay multiple years at a lower monthly rent at your house. Are you looking for a stable long term tenant? It could be a better decision to go with someone who has lived in the area for years and has deep roots in the community. Housing discrimination is illegal, so playing favorites is a no go. (http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp/FHLaws) Remember, everything is negotiable. You and the tenant can always figure out who is responsible for the refrigerator, laundry, dryer, gardening, and future repairs. Most people tend to move in the spring, summer, or early fall, so it's best to list your house during that time. Good luck finding a great tenant! |
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