Want to retire early? The FIRE movement is for you!
What’s the deal with inflation?
Some inflation is good. Too much is bad. The money in your savings account is worth less every day it sits there. And the stuff you buy at the supermarket or the plumber you need to fix your toilet? Also more expensive.
Some things to consider:
- If you have enough money in your emergency fund, consider moving some into real estate and stocks — they’re more likely to appreciate in line with inflation. On the flip side, bonds and bank accounts are slower to keep up with inflation, or they don’t keep up at all.
- Look into government I-bonds. They’re government-backed treasury bonds that do a great job of keeping up with inflation. Like an IRA or 401k, you know they’re probably a good thing because the government limits contributions.
- Take a big, long, deep breath. One of the best things you can do for your money is make a plan and stick with it.
Why you should start saving for retirement today. Seriously.
Retirement takes careful planning
A great place to start is by taking advantage of your employee benefits. Programs such as a 401k, IRA, or an HSA (Health Savings Account) are great places to start.
Thinking about the best “home” for your money and mapping out your financial retirement plan can become overwhelming and frustrating.
Your needs fluctuate so it’s difficult to set it and forget it. But sticking to a consistent strategy is one of the best things that you can do for your money.
If you don’t have the time or desire, trusted experts like JH Milpitas or a local financial planner can help build a plan and make sure your money is routed into the places where it earns the most. So while you’re working to earn a living now, your money is working to ensure your future.
Talk to us and structure your tax plan around your retirement goals.
Avoid tax surprise in April 2023
If you receive RSUs, most companies don’t withhold taxes according to your W-4 rate but will instead use the flat IRS rate for supplemental wage income. For 2022, that rate is 22% on supplemental wages up to $1 million and 37% for wages in excess of $1 million. This means you probably will owe additional tax at the end of the year.
To avoid tax penalties, adjust your tax withholding in your paycheck or estimate your tax bill and make estimated quarterly payments.
None of the above should be considered investment advice. Do your own due diligence.
