CH 3 - WEALTH BUILDING & COLLEGE SAVINGS FALL 2018
**Explain two specific ways in which your knowledge and understanding of saving for retirement has changed due to what you have learned in this chapter.
**Each specific learning should have a total of 3 complete sentences for a total of 6 complete sentences.
**This blog is due Monday, October 15, 2018
**REMEMBER: SPELLING, PUNCTUATION AND GRAMMAR COUNT!!
The first thing I learned, is that you gotta start early. The early you start your retirement fund the more interest will help. Also, if your company offers a match, take it. That's free money going into you retirement plan. Another thing I learned is that Roth IRA's are very great plans even though you can only contribute a certain amount each year. The money is taxed going in, but then it grows tax free, and then on extraction, you aren't taxed.
ReplyDeleteI learned how to place money in a 401k and a Roth IRA. It's important to know how we put money into retirement funds. Money should never be borrowed for retirement funds. I also learned about the rule of 72 and I've never heard of it before this class. The rule of 72 is an easy way to see how long it will take to double your money. The growth depends on the type of investment someone has.
ReplyDeleteI learned about the several different ways that you can invest your money for retirement. There are accounts where you can invest your money and not have any of it touched by taxes. The Roth IRA is one example of a retirement account that grows tax-free, so your money is your money, and it will continue to grow.
ReplyDeleteAnother thing I learned is that when you switch a company, you should do a direct transfer of your retirement fund. You can receive huge penalties if you pull it out and reinvest, rather than transfer right away. It is always very smart to pull out and transfer your retirement account immediately when you learn of your job being changed.
#1 The Roth IRA is a very good place to invest money for retirement. This investment grows tax free so when you withdraw money, you don’t need to pay any taxes on the money you saved. It is also many choices for people and is very flexible with a person’s life. Using this retirement plan also puts someone in a higher bracket for retirement.
ReplyDelete#2 No one should borrow money from their retirement plan. There may be huge penalties involved, including paying an additional forty percent. To avoid borrowing from retirement, a person should finish completely funding an emergency fund in case something bad happens. Then the individual should worry about investing fifteen percent of his/her household income into a retirement plan.
1) I learned about the various retirement accounts. I generally thought that most companies only use 401(k)s, but the type of account used depends on the type of business. For example, some companies use a 401(k) while others use a 403(b).
ReplyDelete2)I learned what an IRA is, as well as a Roth IRA. I learned the difference between these two investments, as a Roth IRA has after tax payment and an IRA uses pre tax dollars. Roth IRAs have more choices and grows tax free, so this is a better option.
1) I learned that there are multiple kinds of retirement accounts. I only knew a little about the 401(k) prior to chapter 3. Now I know that there are several accounts, such as the IRA, Roth IRA, 401(k), and 403(b). Some companies use either the 401(k) whereas other companies may use the 403(b). I also learned about the match and how companies match up to a certain amount of money put into a 401(k) account, but not all companies do so.
ReplyDelete2) I learned about how where to put my retirement money first. First, it goes into the 401(k) only if the company will match some. If the company doesn't match, I would first put it into the Roth IRA, where it would grow tax free. Any leftover money of 15% of my total income would go back into the 401(k). This will help me in the future as I get a job and start thinking about the investments and retirement fund.
There was definitely a lot to learn in this chapter about retirement. I never knew of how many different options there are to plan out savings in order to live comfortably when you retire. It is very important to start early, this way your retirement savings have a chance to prosper. In the Roth IRA, your savings grow tax free, but first you should always look into putting your money into a 401(k) when a company is going to match it.
ReplyDeleteI also learned that in any situation, even outside of a retirement fund, borrowing money is never the best option. You should never have to borrow money from someone else to pay back except when it comes to buying a house. With a retirement fund, there are options to use this money to help buy a house but you should never have to take money out of your retirement fund to pay for items, even a house. There are many other options when it comes to saving your money for these types of expenses, which does not include your retirement fund.
I learned about the 401 K. How you can put money into it, without paying taxes on it. This means that you have to pay taxes when the money comes out. Often times a company will offer a match or partial match through the 401 K.
ReplyDeleteThe Roth IRA allows you to put up to 5,500 $. This money you pay taxes on before putting the money in, but can take it out tax free which allows you to move into a higher bracket for retirement.
I learned that you have to start early with putting money into a retirement plan. There are many different types of retirement plans that companies offer. The main ones are Roth IRA and 401(k). The most common retirement plan used by companies is the 401 (k). With 401(k) I learned that the money goes into that fund when there is a match and when there isn't then the money goes into the Roth IRA. What is good about the Roth IRA is that it grows tax free and you put the money in before taxes whereas the 401(k) is after taxes. I also learned when you switch companies you don't cash out, you do a direct transfer.
ReplyDelete1) In this chapter, I learned the importance of investing early in retirement funds to gain more profit as the years go on. The sooner you put money in, the more time it can gain interest. This will help you live more comfortably when you retire, rather than relying on Social Security which provides the bare minimum.
ReplyDelete2) Another significant piece I learned about retirement plans is what an IRA is and how it works. The Roth IRA is a great retirement plan because it grows tax-free. It also has more choices and a higher bracket at retirement. The Roth IRA has tons of flexibility to work with many different types of people. In this retirement plan, you can make tax-free, penalty-free withdrawals after 5 years.
First I learned a lot about retirement plans and the difference between things like Roth IRA and 401(k). The Roth grows tax free while the 401(k) won't. With the 401(k), company's will match a percentage of your money and put it in the 401(k). The other thing with retirement plans is time. TIme is your friend because the sooner you get your money in it, the more interest you'll gain. This is good because you'll have plenty of money to get whatever you want instead of relying on the government and barely getting by.
ReplyDelete1) I learned about all of the different types of retirement plans and their differences. Before this chapter, I only knew about the 401(k) and the Roth IRA. Now I know that a 403(b) is used for non-profit companies, and an SEPP is used for self-employed workers. I also learned about how much a company will match to on a 401(k) fund and why it's important to meet the match amount.
ReplyDelete2) I learned about the huge repercussions of borrowing from your retirement fund. In penalties and fees alone, you'll be paying a hefty charge when you take out your retirement, and if you don't pay those charges before you die they'll be passed onto your family. This further highlights the necessity of having a fully funded emergency fund before you start funding your retirement plan.
1) I have been offered to begin funding my 401(k) through work multiple times. I have never done so because I haven't understood the system entirely. With this chapter, I have learned that beginning my 401(k) would be very helpful to me especially since my company offers a match!
ReplyDelete2)I learned that if I decided to begin a 401(k) plan, that I should NEVER borrow against it. I should only begin my plan when I am fully able to live on 3-6 months of emergency funds. If I cannot live on an emergency fund if an emergency occurs, I should not begin a retirement fund with the chance of having to borrow against it.
I learned that it is very important to start saving early. Before I took this class I never really thought about saving for retirement. I also learned that there are different types of retirement plans. 401(k) is common and usually done by private companies. SEPP that is a plan for someone who is self-employed. 403(b) this is done by non-profit organizations like schools. A Roth IRA is a retirement plan that the interest on it is not taxed. I also learned that you should never barrow against your retirement plan.
ReplyDeleteI have learn that the earlier you star saving for you retirement the better off you are in life. I have also learn that there is more then one type of retirement plain such as a 401(k), SEPP, 403 (B), and Roth IRA. Most common used is 401(k) by companies. When I first got into this class I did not know much about saving for retirement but now I know start asap.
ReplyDelete1.I have learn that You can put the money into a retirement account that's offered by your employer, such as a 401(k)
ReplyDelete2.You can put the money into a tax-advantaged retirement account of your own, such as an IRA.
I learned that the most important thing about retirement funds, is that in order to really have a good chunk of change later in life is that you need to invest into these accounts early. If you don't invest at all, you can still get some money, whether by social security or otherwise. However, if you really want tot retire with dignity, you need to invest in these accounts early. I also learned about how important it really is to know which retirement account to invest in first. If your company matches, always do the 401(k) first. And it is super important to know that both people in the relationship can invest.
ReplyDelete