Maxing your 401(k) or TSP will help you get to this Happy Place faster…
There’s a lot of debate about how much you should put in to your TSP or 401(k) plan every year, and whether you should ‘front-end’ load your 401(k) at the beginning of the year, dollar cost average during the year, or back-end load your 401(k) at the end of the year for tax planning.
Here’s a 401(k) hack that works for me at the end of every calendar year.
Last weekend I had a super busy Friday- I had meetings until 6PM, then I had to fetch groceries so I could feed my family and my sister’s family- who was staying over for the weekend.
Enter Instacart. A few weeks back, I saw the poster above at the local Aldi and made a mental note (actually an Evernote) to try it out next time I was ready for an Aldi run. Our Aldi is about 5 miles away from our house, so we only hit it once a month when we are in that area of town – But the trip is worth it every time. Aldi has prices that beat Costco on many items.
So Friday was the day. Test drive the combination of the savings of Aldi with the convenience of Instacart – a perfect match.
Or was it?
My Lending Club investment returns have been taking a beating lately. Even with a spread of more than 1400 loans across multiple grades, I’m getting burned with -0.3% Annualized Return.
This account funded in the Spring of 2015, so the loans are in their at their 30 month point, a ‘danger zone’ when Lending Club reports most defaults take place.
This account has followed all of the recommended investing ‘rules’ on the Lending Club website – Buy more than 800 loans, spread out your credit risks, etc. After following the Lending Club guidance, all I can state is that the performance is rather unnerving, minus 0.3% Annualized Return: Continue reading
Are you looking to Retire Early, but don’t want to pay a penalty to access the money you saved before you turn age 59.5?
Got a ton of retirement money stashed in the TSP, an IRA, former employer’s 401k, or other Qualified Retirement Plan?
Are you also looking to implement a withdrawal strategy that does not force you in to a 5-year waiting period like the ‘Roth Conversion Ladder’ does?
There’s a perfectly legal method to get to your Retirement Plan money at age 55 without paying a penalty, and it’s called the Solo 401k.