Which Retirement Plan is Best for You?
Which Retirement Plan is Best for You?
15. Which Retirement Plan is Best for You?
Importance of Creating Financial Habits37:42 2
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Creating Goals that Really Work27:43 4
Dealing with Debt26:45 5
How to Work with Your Debt22:26 6
Credit: Lifeblood to the Future24:35 7
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Spending Smarter Plans (Budgets)33:13 9
How to Create a Spending Plan That Works26:31 10
Create a Weekly Spending Plan22:28 11
Tips to Spend Smarter22:51 12
Love & Money41:54 13
Make Your Savings Automatic36:44 14
Taxes: Don't be Afraid27:24 15
Which Retirement Plan is Best for You?42:26 16
Start Today - Where to Invest?28:03 17
Retirement Forecast - How Much to Save?33:59 18
How Much Should You Charge?13:35 19
Mutual Funds, Investments, ETFs44:55 20
Food Groups of Investments38:01 21
Diving Into Mutual Funds and Investments25:55 22
Deeper Dive Into 4 Food Groups of Mutual Funds25:17 23
Diversify Diversify Diversify32:04 24
Retirement Forecasting25:15 25
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Your Financial Checklist: Life Insurance27:53 27
Long Term Care, Disability Insurance, & Wills29:32 28
Estate Planning & Home FInancing21:09 29
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Take Charge with 30 Minutes A Week38:13
Which Retirement Plan is Best for You?
We're going to roll up our sleeves and get started retirement I feel like there's no good time because there's so much to talk about so what we're going to cover quickly look at my notes no is we're going to start talking about just really the retirement plans and which one is best for you and there are some that I'm not going to cover in detail because they're really focused on people who work for corporations we're non profit or have a full time job we get a steady paycheck and well you might be in this conversation and you might be listening I'm not going to cover that in so much detail so if you really are interested in about it, let us know asks the question in the chat room because I'd love to answer that question but on the whole I'm gonna be focusing on retirement plans for those of you that are freelancers, I try to make this tart as pretty as possible but there's lots of numbers so before you really think about which one is best for you, make sure you understand them because ...
what I want you to walk away with which of these plans am I going to do and it's not if I should do it it's which when so I'll just quickly say that if you work for a company, you're going to do a four oh one care for three b and the way the columns work you have the max annual contribution which means this is the most you can contribute for the year it doesn't mean you have to do people get very confused about this people right away say, well, do I have to do this amount? No, you could do five hundred but this is the most you can do then the question is pretax or after tax the reason why pretax is so important is because if you are starting to earn some money when you are starting to earn some money you want to try and save taxes today, putting money into retirement account can be a great, great way to save money on taxes and then I love this because for those of you that are watching that are over fifty there's the catch of provisions so it's a really great way for you to put even more money away you haven't saved us much even if you have but if you're over fifty years old, maybe you're married to someone over fifty or your parent is over fifty it's a great great way to save more money. So these air really the key key characteristics of these retirement plans the numbers change every year I don't think they're changing next year, but they usually change every year, every other year so the amount you can put in does change it only goes up so let's start with the first I'd say the most too the two most popular plans or the raw fire a and the sep ira is going quickly jump to this picture the way you need to think about an ira is it stands for individual retirement account which means that you cannot share in ira you could be married you can have children you can on ly open one individually so very often people say well my husband house when my wife house when my partner has one it doesn't matter it's you so if you don't have one open in your name make sure you open one up in your name and then the way the ira works regardless of the kind of ira which we'll talk about it a minute it's a big empty box and then you need to pick the investments within it so the empty box has tax benefits, innit? Which means it saves you money on taxes if you don't pick investments the money doesn't grow we're going to talk about investments tomorrow so don't stress about that but the ideas that first let's pick what kind of plan we want for ourselves that makes the most sense that lets us say the most amount of money and then we could pick the investments tomorrow so the first one we have is the roth ira then we have the sep ira and then we have the individual for one k so let's start with the roth ira, so the way the roth ira works is you could on lee put up to fifty, five hundred dollars a year into a roth ira per year. You can only open a roth ira or add money to a roth ira if you make a less than one hundred twenty seven thousand is a single person adjusted gross income or one seventy seven if you're married, so you could have a rough ira that you opened that year. But then two years from now, if you're married, you guys make more than that, which I hope you do. It just means you can't add any more money to it. So congratulations. You make too much money, dad, to the raw fire a not a bad thing. Don't worry, there's plenty of places for you to put your money otherwise, plus you can on lee put fifty, five hundred a year in, plus another thousand if you're over fifty, so you could do sixty, five hundred a year always gets kind of quiet when I talk about the energy changes. This is the benefit of being a freelancer, you can open a roth ira and me investment place or mutual finder bank that you want any place that sells investments, we're going to go over that a lot today. But I love that power that I can choose to put my money where I want to put it I love that just love it why is the rod have you heard of the raw fire a nod your head up down yeah most of us have heard it I have to say it's kind of like the sexy tool in the retirement bank you know it's what people go the roth ira people love it why is the roth so great just say brothel by the way the rough I think was like a senator's name like when it was passed from like kansas or something like that when you put the money into the roth you already pay taxes on it so we went in after tax the money then grows tax free which means you don't pay any taxes wallets in there but when you take it out it's tax free so think about if you saved five thousand dollars a year for twenty or thirty years you'd have a few hundred thousand you take it out after you're fifty nine and a half and it's tax free that's a huge benefit so the roth is amazing I love the roth I think it's a great great first step retirement plan for freelancers my sort of the biggest caveat with the roth is don't let this be your only plan because it's not enough money to save if you're truly trying to save for retirement so if you want to get started, do the raw this is a great first plan, and by the way, you could do the roth and another plan too. So this is a great, great great first step or great additional tool. Just don't let this be your only if you earn mohr, you just can add any more money to the rock. But you could manage the investments. I have a raw fire eight my husband I opened them up, we hit the income limit thank you so I can add more money to it, but I can still manage money within it. I can change the investments that can change the mutual funds. I can move it from firm to firm and I don't want to get too complicated. If someone has a question, you can also convert to a roth ira, which is a little more complicated, and I might cover that tomorrow. Someone's interested. So if you are interested in conversion to a roth ira, send me the question will cover that later. If not, I won't get into it. So understanding the roth is if you qualify income wise. Think of this as an amazing tool to open and this is about probably ten, fifteen years old, so before that you had the traditional ira, which has no income limit on it and it's the same philosophy that you can only do fifty five hundred a year it grows tax deferred but when you take the money out you have to pay taxes on it at your current tax bracket. So the idea with all of these ira's is you can't touch it till you're fifty nine and a half if you touch it before you're fifty nine and a half you have to pay a ten percent penalty right off the bat any retirement plan you take that money out before you're fifty nine half ten percent right off the bat and then you have to pay back taxes or taxes at your current tax bracket so that's why you want to put money in there that you can't touch don't want to touch and I guarantee you I will get a question of like well can I borrow against it? Can I take money out? No, I mean of course you can and there's ways around it think of it out of sight out of mind I'm putting this away for my future maybe I don't put as much into it but once it's in there it's in there let me not touch it the only thing that I sort of don't mind is a ralph ira you can use that money for a first time home purchase and there's no penalties so say you have saved a lot of money into a roth and you have never bought a home you could take that money out for first time home purchase and there's no penalties or taxes owed on it that's probably the on ly exception that I would be kind of willing tto waiver but I'd say if you could not find the money great like I did a radio show for national radio station last week and someone was asking about well I haven't old for one k I've found a job she cashed out and like it can you just try not to really because it's so hard to get to that money I get it if you have no options and you're going to debt and you've got no income fine but if you can try to not touch that money I would say not to so this is your first step the roth I r a you can open it at vanguard fidelity a trop we're going to get into that but this is your first step it's a great great first step the next kind of so if you make more than the roth then if you're making more than the roth I wouldn't do the traditional ira because it means that you can start putting in more money so let's jump to the next retirement plan again the disadvantage of the raf ira is you could on lee put in fifty five hundred dollars a year so don't make this your only plan I can't say this enough because what I see with my freelancers again, I've seen people's habits over ten, eleven years is people will set up the roth ira, they're so excited they feel proud of themselves. I'm thrilled I meet with them a year year and hadn't really how I work with a lot of my clients is we kind of do an intensive three, four months, three sessions and then we do a check up once a year once every two years, once every six months they're coming, they're like I did my raw thisyou have got fifty, five hundred, I'm like great and you're going to say that call? Yeah, like that's not enough, I love it, you did it, but let's move you to the next level let's save more money, you're making it if you don't you're not making it, you're not making it, but I've seen people make more money, so if you're making it too it so let's introduce their sep ira a dented a drum roll please, I love the sub and I also love the individual for one k I'll get into so the sep ira stands for simplified employee pension I like to call the south employee pension, but it's not it's simplified employee pension, so it is such an amazing plan for freelancers. And the way it works again, it is a great opportunity for huge savings. So one of my clients is was a wedding is a wedding photographer and she called me january february, she said. My accountant says I owe twenty five thousand in taxes I haven't been doing estimated she had a great year, she'd booked all these weddings the first thing a center is open a sapphire a or do you have a sep ira open because you do have to open it in the tax year if you've never opened one up, so open one up even if you put five hundred dollars into it, open it up now before december thirty first so you can use it for two thousand fourteen or for tooth out. You can put the money in two thousand fourteen for two thousand thirteen, but at least open it up, I said, do you have a step open? Can you put some savings into the sep ira to reduce your tax bill so the way it works is I always forget to put this live say you earn one hundred thousand dollars for the year, which hopefully a lot of you watching are earning that or hope to earn and you put twenty thousand into your sep ira right off the bat you only pay taxes on eighty, so this is tax free it's called pre tax you don't pay taxes on this money now you're thinking I can't touch it you can touch it you can just touch it in twenty years you're going to be thanking me when you don't feel like working in that twenty thousands two hundred thousand three hundred thousand and guess what you've earned one hundred thousand you just lowered your tax base eighty thousand so I love it for people who can put money on a pre tax base said and I also love it because you can put a lot of money away so again you can open it anywhere you want any mutual fund company of vanguard fidelity schwab t rowe price merrill lynch whatever any bank any place you want that sells investments it's just the world is your oyster in that sense the actual dollars is you can contribute up to twenty five percent of your income actually g I adjusted gross income so this hundred thousand by the ways after you rode off all your business deductions if you paid your office space after you took away your internet you know all your business deductions straight business deductions you can put up to twenty five percent capped at one hundred fifty one thousand so in this case I put twenty this person could put twenty five thousand into herself or his step you can put up to twenty five percent with the cab so you can essentially put up to two hundred forty thousand of a g I sorry if you earn two hundred four thousand you could put fifty one thousand of that into a step ira machin putting fifty thousand year into a retirement account. The old one thing with the sub is if you have an employee that works for you full time not a ten ninety nine but truly that they pay benefits for them you take taxes out so if you're not a solar preneurs if you're not a freelancer if you have a business where you have full time people working for you and you have a sep ira that's your business retirement plan so you actually have to put money away for them too. So if you are listening and that's you make sure you talk to your accountant but chances are if you're listening and that is you, you probably have some good revenue you probably have some good income you probably already have a good accountant who's telling you that not everybody has that though, so if you are listening, make sure you're taking advantage of yourself so it's not an individual retirement account but it can be if you are only an individual the money's contributed before taxes same idea is that you put the money in before tax, so say you're thirty years old you put it in before tax it's in here it grows, it gets bigger, gets bigger, we invested you take it out at your current tax bracket so you can start taking it out at age fifty nine and a half but you don't have to you have to start taking it out at age seventy and half but again just a percentage every year it's called mdr minimum distribution requirements what I love about the roth to there's no md ours you can actually leave it in the raw status till you're seventy eight years old but the idea is that when you're in your fifty or fifty nine and a half and sixty and seventy you're in a lower tax bracket cause you're not earning as much so while you are paying taxes on it you're paying much fewer taxes and maybe you've moved to arizona for florida where there's no state taxes no judgment I grew up in florida so I can honestly say why people live there is no state taxes the big reason you know we'll cook question so in terms of balancing out your investments having the roth ira makes sense to blend it with an s e p if you want teo have a certain income when you retire is that the reasoning behind that it's such a great point so what we're going to talk about this afternoon again we're going to go back to the numbers what is the dollar amount that you can actually save for retirement so say you can save twelve thousand a year so what I would do is fifty five hundred if you qualify income wise in the roth and then what is that? Sixty five hundred into a sep ira so first let's come up with this amount because if you just do the roth you're not saving enough so let's find this in our budget which is a thousand dollars a month let's do fifty five hundred on the roth sixty five hundred on the set and then when we're doing investments tomorrow we'll just take that twelve thousand and invested accordingly so someone's in the raw awesome is in the sap that's just semantics that's just the organization of it we're going to invest in the same because it's gonna have the time frame bamboo I'm married it was a freelance so I have a sip can I still contributed to it even though it's my husband's income or investing that's a great question if you have earned income you can contribute parson part of your earned income you know and I actually I have a couple that I worked with that are both they were both architects he was a self employed architect and she worked for a large real estate firm he did not make that much money so really her money her corporate money if you will or her paycheck definitely covered more of their bills but we used we were able to put a lot of his income away like so say he earned fifty thousand we took twenty five percent of that and put it into a sap even though he didn't necessarily have it like we use some of the wife's money for it but you were also saying have your own it's in your name yet it doesn't matter if it's the money that goes in there comes from your husband it's in your name yeah there's no shared ira you cannot legally when you opened the ira fidelity whose name is it under one person's name that's it the step is gonna be under a business same so you do have to be a business but again it's it's very easy to be a business in that sense being a diva or now I'll see or something like that so in terms of really thinking about so what I want you to start thinking about those of you that are on the call that our excuse me that are watching this is what what am I doing which planet I chosen by doing the roth or my doing the set and if I'm only doing the roth fine for now but let me move up to the set um did I cover here so again if you take that money out bef four fifty nine and a half ten percent penalty plus back taxes you better have a really good reason to do it people do it all the time but this is this where I'm just kind of conservative like out of sight out of mind don't touch it um probably though the one thing I don't like about the sap and I'm a little frustrated about this is it's based on your income for the year so you can't contribute your total dollar amount until you know what you've earned for the year so very often people don't contribute to their sepp until january or february because that's when they know what they really made the whole year so I mean I know it this point december tenth what I've earned for this year we'll fail certainly still earn a little bit more for the neck esta three weeks or two higgs but I'm a whole might my turkey's cooked but you know the account with the deductions and you've got to do your taxes so most people don't know the number they can contribute because again this hundred thousand is that eighty thousand is at one twenty is that you know literally someone will call me up and they're like aiken contribute nine thousand nine hundred and twenty dollars to myself this year because that's twenty five percent of their adjusted gross income so what? I dio your little tip two things a your accountant calls you know you work with your account they say okay, you can contribute nine thousand dollars in genuine you're like great I don't have nine thousand which I hear that a lot so while you can contribute that you don't have it saved back to those savings accounts I put money into just a regular savings account earmarked sep ira all throughout the year I'll talk more about this saving so while I'm not necessarily investing and I'm putting it aside for the sep so at the end of the year and my accountant says I can put away nine thousand dollars gets what about it saved so every time I got paid I would put ten percent fifteen percent a hundred dollars a thousand dollars whatever it's just another way that I'm taking care of myself and I put it into a separate savings account of my online bank what I do began my income is somewhat more known just because I've been in business a long time is that I still do add money to the actual the set mutual funds like the actual investments throughout the year I just don't know exactly what the dollar mounties so I might just do two hundred year two hundred they're just so at least some taking advantage of the dollar cost averaging the market any questions see furious typing all right there you do your thing and we're just looking papa wallenda okay um set by ira ok, so hopefully we've gotten a little more clear on the kind of plans weaken dio the roth ira or the supplier the individual for one k so this is great if you're so it's called the individual for owen katie I for o and k what else? The solo for a one k I think that's another name, so this is a fairly new product it used to be called the keio ko gi aids, which, you know, sort of if you're a little bit older, you've heard no no names mentioned, you know, it was really big with doctors like, you know, doctors who worked on their own and like the seventies and eighties anyway it's sort of reinvented themselves, it is great for hiring her, so hopefully we were all doing it in the room. Hopefully we're all doing it who are watching this show if you're really not earning two hundred thousand arm or this is probably not the plan for you, but it's a greater if you're earning a lot of money it's a great opportunity to put a lot of money in a tax deferred basis. So how it works from a numbers basis is it's like the sep you could put twenty five percent captive fifty one thousand plus another seventeen thousand five hundred so you can put this terrible what is my math sixes at sixty eight thousand five hundred, the seventeen post the fifty one? Yeah, so if you are truly earning two hundred thousand or more you could put away sixty eight thousand dollars on a pre tax base is not paying taxes on so a lot of your thinking not even earning sixty thousand why would I do that or I don't have sixty thousand so you're right it's not for everybody but there's a lot of you that are earning that and so definitely take advantage of this plan again like the sep you can open it it fidelity vanguard schwab we're going to talk about where to open it but this is a great plan if you're earning a lot of money or maybe you're both married or you're married or you you've got partnerships and you really want to take advantage of putting a lot of money away on a pre tax basis or tax deferred basis which means you don't pay taxes on it. The other thing too is that say so this this was something that my my accountant architect couple did is they had a lot of extra cash flow but he didn't necessarily have the income so he might have only made like seventy five thousand one hundred thousand but since she had such a high income they were able to use some of the cash flow so maybe you're in a partnership like that so she worked for a company so if she could only do seventeen five a year which is great but if you're earning you know good one hundred two hundred thousand you want to do more than that? So he was able to do the steps. So he did. The twenty five percent of I think it was seventy five thousand. So what is that atop my head? That's where? Gotten too used to my calculator have to admit so he was able to do eighteen thousand seven fifty since he had the individual or for one k, he did another seventeen thousand five. So he did thirty six thousand to fifty. So clearly for making seventy five thousand by yourself. You probably don't have it. But since she had a lot of cash flow because she was earning a lot of money, they were able to take some of her cash. Do that does not make sense, actually want some clarification. They took you date? They used her extra money to pay for their other expenses. And then exactly so some shane come to invest. What, exactly? Yeah, exactly. That was the point. Is that because she was earning high? She had a high income, they didn't have to use his money for bills and stuff. They could just kind of use his money for savings. Okay, so realistically, like not a lot of people could do this. I mean, a lot of people really need both incomes to pay bills. They don't know that they can't but because she had such a high salary because she worked for a large corporation so they were able to really use his money so they saved money on taxes and they were able to put aside thirty six thousand a year because he was able to take advantage of the individual for one k so totally legal totally within the marks you know, just I can't I won't even say working the system that kind of work in the system yeah they weren't aware of this so he had only had a set by ira so he could have only done the eighteen thousand I said, wait you have all this money sitting in your checking account why don't you open the individual for one k same idea guess what? You can put another seventeen five on a pre tax basis and then the ideas and I think they were a little bit older if I recall I think there were kids were in college or getting ready for college but the idea is that when she leaves her job there tax there um their incomes going to go wait down in their tax brackets going to go down now they've saved this whole big pot of money and they can start taking it out in their sixties when they don't have the income and their tax bracket went from like forty percent, twenty percent or whatever because they're living in a different tax bracket we actually haven't we do have a bunch of uh little questions on this would you like a couple yeah yeah, absolutely no except where did they just say I'm sorry I did just trying to get focused on my notes here. All right, here we got a, uh does the sip ira have the same advantage for the first time? Homebuyers at the rooftop laura pride in taking money out of my paycheck for simp or roth? Should I have a flush emergency fund or can I be contributing to on my emergency fund and a sip slash world at the same time? Ray greek question yes, absolutely again it's no question that probably setting up your emergency account or your rainy day fund should be your priority but start this absolutely don't wait. So you know we're going to talk a lot about me, you know, probably after lunch or after our break where to open it but let's get five hundred let's get fifty bucks a month going into the roth so if you have a sane extra two fifty a month two hundred goats towards your emergency rainy day and then fifty dollars towards a roth do not put this off make this a priority that's when I kept saying ira ira open a roth put twenty five fifty dollars a month in there absolutely lisa left wanda, is there a risk with iras? Where is the money guaranteed to be there? You know, there's? No guarantee. Oh, gosh, no, no guarantee. But we're going to talk a lot about I think tomorrow. What's called asset allocation. So it's matching your investments to your goals. That's. Why? For your emergency day money for your rainy day for your security blanket? We're not putting it in something like this. We're not investing in. So really you're money, like if jobs don't come through or if you don't get paid or kind of like those like and it's really a timeframe. If you need the money in six months a year, two years I don't invested in this. I just leave it in my money market account at capital one. This is my ten, twenty thirty year old gun money there's no guarantee at all. But we're going to talk a lot about understanding how you can spread your risk diversification and protect yourself as much as you can. We'll definitely talk about that tomorrow. Any other questions? All right. Great. So just again. And I keep reiterating this because for a lot of you that are listening, this is the first time you've heard this. And I just have learned that you just have to keep talking about it over and over. So what I want you to think about is do I need to save money on taxes immediately? Because I'm earning a lot of money, then you let me focus on the sap or the individual for one k or I don't really think I could save more than five thousand a year, then you'll probably just do the roth right now, so let me open her barrage, fire a or add to roth are a lot of you might have a rough ira, and so you can just add to it, and then I can put it, I'll pick the investments tomorrow when I tune in because we're going to talk all about the investments and then I can take that money out when I'm sixty and older, and what we're going to end with today is really getting clear and how much you should save every year into your retirement plan, into the rother sepp, and by knowing the dollar amount and most of us are not saving that amount, I'll be honest with you, but at least being really, really clear on that number you could motivate, like yesterday to make more and put more money away from your budget, so come up with your plan. Let's start with simplifying you do when I do a seminar that's like a larger group I always ask a question now how many of you have an old four? Oh one k anybody here in this room is it still at your old institution or have you rolled it over when is a rollover and when it's still in how many of you have more than one roth or ira at different places? So most people when they come and see me I get like five or six different statement they have old for one case they've roth iras that they opened a different places they have an I r a that they opened up their hometown in pittsburgh they have an I r a that they might have opened they went you know, they opened a checking account and a lot of bang sell them so it's very, very common to have more than one. This is a really, really key organizational step it start consolidating old ira's old for owen case to us few places as possible. Andi it's interesting. I used to just say one place it's a just pick one investment firm and just do that and I still do believe that we're going to talk a lot about that after the break just the place that's good for you, but when I was teaching, um at at barnhart a few years ago, you know, they kept pulling me aside, and this was around two thousand seven, two thousand eight people were so nervous with all these, like lehman brothers and bear stearns going out of business, they were really, really nervous having all their money in one place look at it, and so in the next segment, I'll talk a lot about where and I'll be honest about I'll share where I'm at, so I'm not hiding anything there, but I still think for convenience pick one place, but if you're really nervous about having your all your eggs in one basket, just cause of the banking system and such totally a valid thought than pick two places but that's it just to no more than that. So think about if you have old for owen case it's not your money right now, it's their money? Yes, you've saved it's legally yours? I can't tell you how pretty trusting person I believe in the system I really do. I don't think the man thought to get me or anything like that. I really, really believe in the system, but I have seen so many cases where corporations went out of business and four oh one k money was taken out, it sucks it's terrible, but it happened look at enron and one is a perfect example no that's a different story, but people lost their life savings, so when you have an old for one k and you don't work for that company anymore, you need to think about that it's not your money and it is your money you've saved really hard, you've worked really hard to save that money, so you have got to roll it over to an independent firm of your choosing, which we'll talk about after lunch, but you have got to do that work and it can take up to three weeks and it's a pain, and by the way, they don't want your money, they're paying fees on having your money there they don't want it, so think about let me roll it over. The other thing is, if you have iras at more than one place, what I see because I look at people's investments all the time and I look at statements you're not diversified, so chances are you own the same kind of investment in more than one account, so you're not necessarily managing your risk. You're also probably paying multiple fees so there's, so many reasons why I should roll him over and then just really from a wonderful organizational practical standpoint has anyone ever bought a home? Has anyone ever refinanced? Did you have to get your paperwork together? It was not a pain exactly and I know especially with rates being low I'll be honest I've become a little bit of a refinance chaser, so I re finance pretty much every year, every other year just because I keep chasing lower and lower rates and I've done really well with that I'm so thankful that I have one statement to give to my banker one statement should you roll your old companies for I want into your new companies absolutely that's a great great options so if you are working for a company that offers a for one k that you are in investing in that foreman k absolutely it's a great option, I say the only caveat is if you know for a fact you don't like the choice of investments that they offer then that's probably the only way I'd say no but it's the easiest thing to do it's the most convenient you're already subscribing to it by doing the new four oh one k so the other option would be to pick an independent place and that we'll talk about shortly. So what you want to think about is really rolling over all your old for one case to a rollover ira at one investment firm you want to pick one investment or brokerage firm for all your accounts and you want to consolidate all your for one case and iras to one place simplify your financial life because what you're going to be doing on I mean, think about how much we're learning we've already learned about retirement plans and budgets and things like that this is ongoing and really how you want to think about your finances on a big picture basis is you wanted to a check up once a year the purpose of this course to get yourself cleaned up so it might take a little bit of work, but eventually you just need to do a check up once or twice a year. So imagine if you have all your investments in assets and one or two places it's so much easier to do a checkup. So on a big picture basis, here's where I have got one bank, which is just a very simple bank, I just do my checking there I have my online bank, which is my online rainy day savings, my tax savings, my safe to spend and then here I'll let the cat out of the bag. Then I have my investment firm, which in my case is fidelity not supporting them. I'm not endorsing them, it's just the place I've chosen and that's where I have on my iras, I old for one case and I have other investments there that are not for ira's, so investments like in touch, which I'll talk about tomorrow so I have three institutions I have my day my bank, my online that I kind of deal with on a weekly basis putting money into savings accounts and it's linked to my bank and then this is where have all my iras that's it? So I have my old for one k from the ten years I worked corporate and I have my current sep ira there I have a raw firing so I've got lots of different ira's but it's one place one statement that's it so what I want to do a check up I could get all of these three places on my phone my computer, my ipad I get this I don't get a statement cause it's only online I still get to paper statements and a little old fashioned do god ninety percent of my stuff online. I still just like getting that paper statement in the mail even though I look at things online I know it's not environmentally friendly and that it's just it's just a piece of mine that fidelity statement or that chase statement comes once a month it's no surprises but I still like saying it. Looking at it, I file it and I'm actually going to talk a little bit about what papers to keep in with not to keep but the idea is it's three places I just feel really organized it's, easy for me to do a check up it's. Easy for me to just take everything out and just have it in one place again if you have lots of different places. This's where men's can also help you, you could actually put lots of different savings accounts and investment accounts at meant so maybe, you know, you you have to investment places. Maybe you've got fidelity and you've got a private banker. Or maybe you have fidelity and vanguard or so you can actually see them all it meant, which is a nice, really nice added benefit of aunt. So think about just on a big picture basis, and maybe this is your goal is I need to clean out my financial life. I need to get a little more organized there. And what you will find is every time I do this organ, this exercise with clients, people have more money. They always have more money than they think they d'oh. I mean, khalil, I'm just going to use use an example. You know, you said you're an old for one case. Still the company and you have something rolled over, like if you looked at those two together when that seem like more money, so imagine like consultancy I just found you you know, I thought everybody in this room I I'm just going around so think about that and then also think about why else do you want to save more money? So if you own a home and you want to refinance, you're doing that to save money on your monthly mortgage we'll think about how much more of a pain that would be if you had to get everything together and also when you're doing your taxes, you're getting the tax forms from interest earned for the year that's one more form that you have to fill out or you have to give to your accountant I'm really good at money I'm really gonna finances I love it, I guess what? I don't really want to deal with it that much I look at my money thirty minutes a week and once or twice a year when I do a checkup rest the time, I don't think about my money because I've set thes systems into place where I'm organized I'm trying to keep it a simple is possible I really invest a few times a year and I deal with my savings every week just moving that and I've been doing that for eleven years and it's definitely working what I just want to quickly do is just get to the first part of our homework but I really want you to think about which retirement plan is best for you should you do the raf ira? She did you the sep ira, if you could wait just five minutes, ten minutes, fifteen minutes until after the break and really think about where I'm going to open it, but just start opening it today so if you don't have one and if you think ok, I've got a little extra money that I could do something with let me open in a retirement account for myself, the roth ira, the sep ira, the individual for one k and then also think about if I've got old investments and this is, by the way, great way to add more money so especially if you have an old foreman ke old roth ira or other roth ira, why not consolidate them? So you don't necessarily have to open a new one, but you could just start adding more money. So let me start to get all that paperwork together, and I promise you that in the next segment I will make it as easy as possible for you because it could take up to three weeks to do it. I've heard a lot of my clients complain and how painful it is consolidating accounts, so I'll give you some great suggestions on how to make it as easy as possible for you great, so stay tuned. I love the way a reverential silence has fallen, you know? This is all stuff that we have to know we know we need to know over it's it's, scary it's, scary looking ahead and thinking you have to plan that far ahead. I mean, all fun creatives they're in the moment, right? And it's hot tio be that organized to look ahead and the way you make it so simple, so well, and I talked about some big numbers like twelve thousand and thirty thousand, which you're like okay can't do that, but I'm also going to say, find that two hundred dollars a month to put into the roth ira or five hundred a month which that we confined and out chat room has been on well, there has been river song you wrote is going home with charity has been fantastic. We have so many people commenting in but, you know also in same time want to make sure that you get through your stuff so that they can. They can see what I see what's happening, it's all transforming in front of everybody, so it's super exciting and after the break I already manage a love separately places, so after the break, we're going to really roll up our sleeves and go through the different firms. So again, we haven't talked about investments we are going to talk about that tomorrow because investments it's regardless of the firm the investments or whether you pick a mutual fund of vanguard are morgan stanley or chase it doesn't I shouldn't say it doesn't matter it definitely matters but let's first figure out the firm and I've just gone through this process with my client's let's figure out where we want to invest our money once we feel good about that place, then we can pick the investment so that's, why today we're going to really talk about ok? You've decided you're going to do the roth you've decided you're going to open a sep let's here's three or four places and here's the pros and cons what works for you? What doesn't then we're going to end the day with what I call the retirement forecast and so this is where if you want for me to run your numbers, I'm happy to do that. Can we do we do actually have a couple of numbers and so are you suggesting that people online well again said the budget straight for that so we can do budgets absolutely, but if you want to take it a step further if you want to do this, what I can do is we can see where you are in terms of how much have you saved so that means you've to tell me your age and how much you've already saved, okay and let's play with some numbers for you all right? Age and savings and you could be on air with collier completely analyzed wear and that dragon yes, absolutely fantastic. I'm goingto spare you the technical questions for one second and share with you some of the comments because people are very, very excited about this information as they were yesterday is just it's riveting. Did you ever think you'd say riveting about finance laura, who had her budget on this morning in my nelson and her savings figures laura, you never know says I'm so grateful for galya thank you again you are rocking thanks. Alright any says she says all of the checkers the chat online has been pretty amazing she says all the chat finds it really hopeful and the sharing of the chat is the benefit of watching this live it's just fantastic! Kala gaeta has already signed up for an online savings account it's only fifty dollars a month, but I'm already feeling a little bit more confident thank you god rebecca horton this course has been so great so far it is so easy to get overwhelmed about money, but this is bite sized pieces that I can actually implement and build on right away right away
Ratings and Reviews
I love how approachable and welcoming and easy to understand this course has make financial terms and situation sounds. I love Galia and she makes I really feel calm and comfortable learning from her. Great!
This class was an eye-opener for me. I love the way Galia makes you feel comfortable thinking about as well as talking about your financial picture. I also appreciated her many examples and actionable steps for planning.
Galia is AWESOME! I love how down-to-earth she is (hence the name of her business!). I learned so much, and am going into a new year with a totally different outlook on my money. Now I have a plan, goals and much less anxiety about the whole process! Thank you, Galia!
Money & Finance