One thing I feel was missed is that no one has mentioned the benefits of a traditional IRA.
While you are young and making less money it is not federally taxed when you put it in the traditional IRA. It is only after you take it out.
Rounding off, this is like you only put in $2,000 and the Feds put in $1,000 for you, that would have went to taxes.
I suggest to anyone that you do this until your income increases and you no longer get the tax benefit. Then when you loose the tax benefit, I suggest you start putting money in a Roth IRA.
The benefit of this is more initial growth of your personal money as you are earning on the Fed's money too. If you get 10%, it is really like getting 15% return.
You also have the benefit of retiring early and using the money without a penalty...
MOST PEOPLE DO NOT KNOW THIS...You can take your money out of a traditional IRA at any age without penalty as long as you take it out according to your life expectancy. You can not do this with the Roth IRA.
While you draw early on your traditional your Roth is still building up.
I also suggest using 401k's, 403b's or similar that you may be eligible for as it also hides your current income from taxes and builds quicker than regular savings and investments.
This is not just a theory. This plan has allowed me to quit my day job at the tender age of 48. My wife was able to retire early too.
Of course we do have partial pentions and other investments.
I also operate some real, part time businesses.
A home based business offers great tax benefits. Just download the IRS publication for small businesses for details. I suggest you do this while you are still working or the tax benefits and extra income to invest.
If anyone is interested in a real home based business PM me.
Very few people I am aware of get to the million mark just by working for someone else. Some type of business or successful investments is needed.
Investments start with savings. Consider tiding to your future as you would do for your church. Make sure a percentage of each check makes it into some type of savings, business or investment vehicle.
And as said before the closer you get to the age you want to retire, the more conservative you need to be with your investments. Take the risks while you are young and can make up for any setbacks.
Also home ownership generally helps in building a nestegg, vs renting.
...
This is not just a theory. This plan has allowed me to quit my day job at the tender age of 48. My wife was able to retire early too.
...
Terrific! That's exactly what I want.
But then...comes the 'meat'.
Quote:
Originally Posted by gpmac12
...
Of course we do have partial pentions and other investments.
I also operate some real, part time businesses.
A home based business offers great tax benefits. Just download the IRS publication for small businesses for details. I suggest you do this while you are still working or the tax benefits and extra income to invest.
...
But, I don't need to worry because you have the solution.
Quote:
Originally Posted by gpmac12
...
If anyone is interested in a real home based business PM me.
Very few people I am aware of get to the million mark just by working for someone else. ...
To end: How much do you charge for your help, pleez?
This is my first post as I start to read the information here. I turned 18 this past April and look forward to learning a lot here and seeing what I can do.
Re: How to Become a Millionaire
Hybrid Mode
