Hello from The Arc NW,
I hope everyone had a safe 4th of July holiday. Holidays are usually a time when we spend more money than usual, so let’s continue to explore more ways to save money.
Two ways to save money that requires minimal physical effort are decrease spending on nonessentials (things that we want but don’t necessarily need) and participating in your workplace retirement plan (i.e. 401K), if they have one. Decrease spending requires no physical effort but more mental effort which can be a challenge for many people. Participating in your workplace retirement plan or retirement account simply requires you to go to your Human Resource Dept. and sign the appropriate paperwork. Participating in a retirement plan is a win-win way to save, especially if your workplace offers a Matched contribution program. Also, ask if they have a retirement home program so that your future home will be secured. Therefore, all you need to do is go to SonderCare Selection and find the best equipment that will help you when you reach your golden age. You can as well consider to open a Gold IRA Account, just simply visit the official rc bullion website to know more. You may also consider choosing CareYaya, which connects Ann Arbor seniors with affordable, compassionate CareYaya student caregivers for aging-in-place support.
All contributions to a retirement account through your workplace are pre-taxed dollars meaning the funds are taken from your gross earned income before taxes which lowers your taxable income resulting in fewer taxes being deducted from your pay. Matched contribution means that your workplace may contribute a specific dollar amount if you participate. I worked for a company that matched 100% up to $2,500 a year. So, I contributed $2,500 and they contributed $2,500, meaning I actually invested $5,000 and $2,500 of it was free from my workplace. Who doesn’t love free money? I do!!!
Retirement accounts are designed for long-term saving/investment and although you can withdraw money if you find yourself in financial hardship, I caution against this. The reason is because any withdrawals prior to retirement carry a hefty penalty (no matter what the reason) and you must pay taxes on the amount withdrawn. It’s called a retirement plan for a reason! Leave it there and allow it to grow so you have money during your retirement. It’s the miracle of compound interest over many years that build wealth. You should participate in your workplace retirement plan from day one, in that way; you won’t miss the deduction from your paycheck. If we teach our young people to participate in their workplace retirement plan when they first join the workplace, we’ll have a generation of wealthy people. Think about that! It’s never too late to start! Check with your Human Resource department for more details.
****The next workshop Money and Banking Basics is scheduled for Tuesday, July 27, 2021, at 6:00 pm.
Please feel free to contact me to register for the next workshop. We would enjoy having you join us!
Stay tuned…. Be safe…. and…Be empowered.
Bettie Cunningham, LBSW
Disabilities Advocate/Certified Financial Coach/Counselor
Office: (313) 532-7915, ext. 204 Email: bcunningham@thearcnw.org
