My wife and I play in a fantasy football league comprised of a handful of other couples in and around our neighborhood. This season something interesting happened. As the start of our season drew near, one of the couples in the league had to back out. With literally a couple of weeks left before the start of the season we were in a pinch as nine couples had to decide on one other couple to join the league. Dicey, at best.
How To Get 100% Of Your 401(k) Match
Earlier this year we talked about investment options if you're already making the maximum contribution(s) to your 401(k) and still want to save money elsewhere. We also covered the importance of contributing to your employer's 401(k) plan in order to get the full matching contribution…aka compensation.
Today we're talking 401(k) again and I want to show you why it's important to understand how your employer matches your contributions.
Financial Planning: Where Your Money Goes And Why
If you've been following along with the blog, you've probably figured out a few key themes I like to use when it comes to financial planning. Themes like: Focus on Financial Factors You Can Control, Life Is NOT A Straight Line, Rate of Savings > Rate of Return, Planning > The Plan, etc.
And where your money goes, and why.
That's what we're talking about this week.
What Is A 401(k) Match?
Most of you reading this likely contribute to your employer's 401(k) plan. And a good percentage of you also receive matching contributions from your employer. Or if you own your own business, you might contribute to and also be responsible for the matching contributions. I imagine you've heard these employer matching contributions referred to as "free money". Sure, we can call it that and if it feels good, do it. If you aren't taking advantage of your company's match…
Kaizen
Our youngest son, Sutton, is playing baseball again this season. The team is comprised mostly of 7 year olds. So far, we've had a few practices and two games. And let me tell you…they stink.
Seriously. They're not good. After our last game Jill said to me, "It's like watching The Bad News Bears."
And she's not wrong.
Before you start thinking "Wow that's horrible,” or “How can they say/think such things," hear me out.
2 + 2 = 5?
Last week’s blog post I talked about refinancing and used this analogy:
Math ≠ Money
According to Reuben Hersh, an American mathematician and academic, math can defined as follows:
"Mathematics is the subject where answers can definitely be marked right or wrong, either in the classroom or at the research level. Mathematics is the subject where statements are capable in principle of being proved or disproved, and where proof or disproof bring unanimous agreement by all qualified experts—all who understand the concepts and methods involved."
For example, if I told you 2 + 2 = 4, you could not dispute that. This is a fact. If I told you 2 + 2 = 5, you could…
The Tooth Fairy Knows About Inflation
Our youngest son, Sutton, has lost 4 teeth in the last two months. Unfortunately for him, they are his top 4 front teeth. That's right, all of them in a row. So as you can imagine, the Tooth Fairy has been to our house at a pretty good clip.
Sutton has also been socking away some Tooth Fairy cheddar at a pretty good clip, too. Tooth Fairy in the StranClan house pays $2 per tooth. The Tooth Fairy has a stout collection of the very rare $2 bill as well as…
5 Years = 33%
Time really is flying by in our household. And I imagine many of you are experiencing the same phenomenon. Only it's not a phenomenon. This is what happens. Time waits for no man or woman. It just keeps going.
So today I want to talk about the importance of saving, and the impact of delaying our long term savings. We never really feel this impact, but it happens silently. And it happens over time. Oh yeah, and it's real.