The Road to Financial Freedom
The Road to Financial Freedom
By: Chris Cooper
http://www.credit-yourself.com
The road to financial freedom is a lot shorter than
you may think. For those of us who did not start
our lives wealthy because of our family, we only have 46 to 49 years of income producing ? more if you want to work into your "retirement" years.
During that time, we must complete our education or training, get a job or open a business, while meeting the many demands on what income we have left after taxes.
We have to provide for food and shelter, clothes and transportation, child rearing expenses, college tuition, vacations, Christmas presents, insurance premiums and more. The list never seems to end.
How is it that some people can retire at age 50 in
spite of all this while others will never retire at
all. If you read the article,
Get Rich Slowly - http://www.credit-yourself.com/get-rich.html - you can see how you can use the power of compound growth to amass millions if you start young.
However, this is the period in most people's lives where the greatest demands seem to be made on their income.
First of all, you're just starting out and are nowhere near your peak earning power.
You might have just married and need a home and furnishings.
You might have to buy your first suits or business
dresses for your new job. And you want to enjoy life, so you vacation, buy or lease new cars frequently and just basically run up debt, many times to be piled on top of your existing student loans.
But some people manage.
First they live within their means and save as much as possible.
They take advantage of all the tax shelters the
government allows and if possible, save even more.
They invest in or start a part time business, rental properties or learn to increase their returns by smart investing.
They insure against potential risks that could ruin
them financially.
They use debt wisely. They don't necessarily shun
debt, but use it as a tool to grow wealth. For example, they can leverage one 20% down payment into a string of
houses using mortgages. They can use margin debt to
double the amount of their investment funds.
They can take advantage of tax credits, government guaranteed loans or grants offered to small businessmen or to certain minorities to fund multiple streams of income.
But they don't use debt to fill the house with things. They pay cash for their new TV's and stereos.
They take taxes into account when planning their
lifestyle and investments and use all the tricks the IRS lets you get away with.
For a little over $3.00 a day, starting at age 22,
you can amass over $850,000 in an IRA.
The difference between the financially independent and most of the rest of us is that they can find that $100 a month and don't consider it some kind of sacrifice to invest it rather than spend it.
Most people will complain they have no money left over and that they live from paycheck to paycheck. But in almost all cases this is a lifestyle choice.
There are many stories of very low income people managing to put multiple children not only through college, but also graduate school or leaving millions to a favorite charity.
These people are special in the sense that they had a goal and stuck to it no matter what.
They worked hard, saved their money and achieved what they wanted to achieve.
Everyone can do this. You just have to ignore the siren song of commercialism, and decide whether a secure future for yourself, a college education for your children or a large bequest to your favorite charity is worth skipping the daily
double latte at Starbucks.
That about all it takes to get you well down the road to financial freedom.
The road to financial freedom is literally paved with gold, yours for the taking.
For more on achieving financial freedom, visit http://www.credit-
yourself.com
.
Budgeting For Prosperity
Budgeting For ProsperitySeven Steps to Follow To Achieve Financial FreedomWithout a sound financial plan, a business is doomed to failure - managing your personal finances is no different. A sound personal financial plan is crucial to both your financial and emotional well being.We have prepared a simple and easy to use budgeting process for you. This budgeting process will show you how to thoroughly develop a financial plan and lead you on the road to financial freedom.Make a complete list of your monthly income.The budgeting process always starts with a monthly income; one's income will show how much one has to spend each month.When developing your monthly income, make certain to include take home pay from your job, any bonuses that you receive, dividends and interest income from investments, tax refunds from the government, gifts from other family members, and any other type of income you may require during the particular month. If you would like a comprehensive income budgeting tool,...
Budgeting For Prosperity
Ira > Budgeting For Prosperity
Brand New Employer Sponsored Plan Is A Hybrid Of A Traditional 401(K) And A Roth Ira-January 1st, 2006 Is Start Date For New Roth 401(K) Retirement Savings Plan
(ContentDesk) December 7, 2005 -- Income tax rates have been cut, the marriage penalty done away with, and the "death tax" is also on a path to no more.
All of this is a result of the Bush administration's Economic Growth and Tax Relief Reconciliation Act which was passed by a Republican congress in 2001.
Another provision of that act goes into effect on January 1st, 2006, a hybrid of a traditional 401(k) and a traditional Roth IRA called the Roth 401(k).
Yet another employer sponsored savings plan, the new Roth 401(k) works in almost the same way as a traditional 401(k) plan.
Workers invest a portion of their income into a fund along with contributions from their employer (if any).
The difference is that the traditional 401(k) is funded with "pre-tax" dollars and the Roth 401(k) plan uses "after-tax" dollars.
However, with the Roth 401(k), withdrawal of your money at retirement will be tax free like a Roth IRA.
The traditional...
Ira > Brand New Employer Sponsored Plan Is A Hybrid Of A Traditional 401(K) And A Roth Ira-January 1st, 2006 Is Start Date For New Roth 401(K) Retirement Savings Plan
Roth IRA Contributions
The Roth IRA, or the individual retirement arrangement, is an ideal way to save for the retirement years. An individual can open his own IRA and contribute funds to it. What an individual contributes to the Roth IRA is termed as the compensation income. If you are employed, then the compensation income is the paycheck you get in lieu of your services. Compensation income can also be the income you get from being self-employed, or what you get from an alimony settlement.
There is a limit to the amount which a person can contribute.
The Contribution cannot be more than $4,000 per financial year, or 100% of your earned income, whichever is less. To contribute to the Roth IRA, you need to have taxable income, and also the adjusted gross income should be less than $110,000 individually, $160,000 if you are married and file a joint return, and $100,000 if you are married but file separate returns. Also, the amount you contribute to the Roth IRA will be reduced by the Contributions...
Roth IRA Contributions
Ira > Roth IRA Contributions
A Newly Released Novel, The Provisional American Faction, Brings “The Troubles” Of Northern Ireland To The Halls of The U.S. Congress
BETHESDA, MD (ContentDesk) March 16, 2006 -- Personalizing the drama of the Irish troubles, The Provisional American Faction, a newly released novel by David Koitz, adds a captivating international dimension to the sectarian conflict that has plagued Northern Ireland.
The 1960s was a period of great civil unrest, and the IRA and Protestant militants were in constant battle. The British entered the picture in 1969 only to be caught in the middle.
No one could see a resolution.
Rory McCaan, a young man raised in Londonderry, and transplanted to the U.S.
after becoming an orphan, leads an obscure band that only a few in his homeland know exists.
He acquires vast resources and, with his companions, he attempts to redress crimes that both sides commit.
As the story unfolds, one sees that Rory is not simply a vigilante.
He has a larger purpose, one that he seeks to fulfill through his fortuitous association with Nealen McGowen, a...
Ira > A Newly Released Novel, The Provisional American Faction, Brings “The Troubles” Of Northern Ireland To The Halls of The U.S. Congress
WHAT IS A TRADITIONAL IRA?
With a traditional Investment Retirement Account (IRA) you pay taxes when you take the money out at retirement in the future. Make sure that this account is really worth opening in your situation because what you put in the account today may be fully deductible, partially deductible or non deductible, depending upon your income and other retirement coverage. If you contributions are not fully deductible then this account is probably not for you. The traditional (and Roth IRAs) allow you to save $3,000.00 in 2004 and $4,000.00 in 2005. If you are over 50 years old you can save an additional $500.00 as catch-up.
You put the maximum amount in if you (or your spouse) are not covered at any time during the tax year by a retirement plan, including a 401(k) account, at work. If you can't afford to save the maximum then just do the best that you can.If you are single or a head-of-household taxpayer with annual adjusted gross income (AGI) between $40,000 and $50,000 and are eligible for...
WHAT IS A TRADITIONAL IRA?
Ira > WHAT IS A TRADITIONAL IRA?
Rolling your 401k: Contributory IRA vs. Rollover IRA
In an ideal world you would start your working career with a great company in your early 20s, steadily climb the corporate ladder, retire at age 65, and draw a sufficient income from your accumulated 401k account to live happily ever after.Unfortunately, that's not how the real world works. If you are like most people, you will change careers, or at least companies, several times. Each time, you'll be faced with the question of what to do with your accumulated 401k benefits.You will likely have a few choices: keep your 401k with your old employer (sometimes possible), roll the proceeds into your new employer's 401k plan, or put them directly into a self-directed IRA at a brokerage firm of your choice.Since leaving your 401k with your ex-employer has no benefits whatsoever and most employers will prefer you transfer out anyway, that leaves only the last two as viable options:1. Roll your 401k proceeds into the new employer's 401k plan of (if allowed)This is the most painless solution...
Rolling your 401k: Contributory IRA vs. Rollover IRA
Ira > Rolling your 401k: Contributory IRA vs. Rollover IRA
Shoepricer.com Searches the Internet for Deals on Vans Shoes
Shoepricer (http://www.shoepricer.com) recently unveiled the newest version of their popular comparison shopping engine with KangaROOS shoes in mind."Vans Shoes are one of the defining brands when it comes to skateboarding culture. Fourty years since thier creation, Vans shoes continue to lead the way with innovation of sneaker, sandal, and slip on styles. That's why pro skateboarders such as Geoff Rowley, Tony Trujillo and Jim Greco ride...
The Road to Financial Freedom
Ira > Shoepricer.com Searches the Internet for Deals on Vans Shoes
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