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6 Retirement Plans Millennials Should Start Thinking About (Or Embrace ASAP)

6 Retirement Plans Millennials Should Start Thinking About (Or Embrace ASAP)

Most millennials are still struggling to pay their student debt, so when you tell them to think about retirement plans, most of them are going to tell you to stop mocking them. The reality is, retirement plans are not a priority for millennials, but they should be. Why? Time flies! And starting to save early in life is going to ensure your retirement years are happy years.

Unfortunately, most millennials are afraid of all those complicated words and the sheer length of tax codes, so they need someone to explain these things in plain English. Well, here are the 6 best retirement plans for millennials explained.

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1. 401(k)

The 401(k) is the most popular plan, and most employers offer it, so you can just make a call to the HR department of your company and ask them to solve the papers for you. The maximum revenue is $18,000 per year, and you can pick how much you want to contribute. The contributions are made before the taxes, which are paid when you will take out the money.

One of the major benefits of a 401(k)[1] is the fact that it enables you to grow your retirement plan fast, but you have to stick to the options your employer picked for you.

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2. Regular IRA

If you have a taxable income, or your spouse has one, you are eligible for IRA.[2] With this plan you can earn $5,000 per year, and the contributions are made before the taxes, just like with the 401(k). You are going to pay the taxes when you take out the money.

Of course, this ensures a high growing rate for your fund. Unlike the 401(k), you can invest your money in investments offered by your bank. The cons come with the taxes: because you pay the taxes when you withdraw money, you might notice your tax bracket is higher when you take out the money, so you will be paying more taxes.

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3. Gold IRA

This is not exactly a retirement plan itself, but more of an option to add to your regular plan. Regular IRA and 401(k) are compatible with gold investments. Gold IRA is exactly what you think: investing your money in gold,[3] because its value grows nice and steady over time.

4. Roth IRA

The Roth IRA is dedicated to singles who earn at least $116,000 per year, or couples who earn less than $180,000 per year together. The best thing about this retirement plan is the fact you won’t pay taxes when you take out the money! The contributions are made after the taxes, and you can earn as much as $5,500 per year. Another nice fact is there is no mandatory withdrawal when you are 70 years old, as it is with the other plans.

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5. SEP IRA

As many millennials are entrepreneurs, or they are on their way to becoming entrepreneurs,[4] here are two retirement plans dedicated to small businesses. The SEP IRA allows you to plan for your retirement along with your employees. The maximum amount is 25% of an employee’s compensation, or $51,000. For the employee this plan comes with free money from the employer, and for the employer it comes with tax deductions for the contributions. This is one of the best retirement plans for the self-employed. The con of this plan is the fact that you will pay taxes at the current tax rate when you start withdrawing.

6. Simple IRA

Another IRA for businesses, with a $12,500 maximum contribution. The contributions are taken from the employees salary, and the employer can contribute to his or her account, or to their employee’s accounts. The employee can decide how much to contribute on this plan, and the contributions are made before the taxes. At withdrawal you also pay the taxes.

With a simple IRA the penalization for withdrawing before 60 years of age can be up to 25%, so make sure you do your calculations right.

Featured photo credit: Unsplash via unsplash.com

Reference

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Last Updated on March 13, 2019

How to Get out of a Rut: 12 Useful Ways to Get Unstuck

How to Get out of a Rut: 12 Useful Ways to Get Unstuck

Have you gotten into a rut before? Or are you in a rut right now?

You know you’re in a rut when you run out of ideas and inspiration. I personally see a rut as a productivity vacuum. It might very well be a reason why you aren’t getting results. Even as you spend more time on your work, you can’t seem to get anything constructive done. While I’m normally productive, I get into occasional ruts (especially when I’ve been working back-to-back without rest). During those times, I can spend an entire day in front of the computer and get nothing done. It can be quite frustrating.

Over time, I have tried and found several methods that are helpful to pull me out of a rut. If you experience ruts too, whether as a working professional, a writer, a blogger, a student or other work, you will find these useful. Here are 12 of my personal tips to get out of ruts:

1. Work on the small tasks.

When you are in a rut, tackle it by starting small. Clear away your smaller tasks which have been piling up. Reply to your emails, organize your documents, declutter your work space, and reply to private messages.

Whenever I finish doing that, I generate a positive momentum which I bring forward to my work.

2. Take a break from your work desk.

Get yourself away from your desk and go take a walk. Go to the washroom, walk around the office, go out and get a snack.

Your mind is too bogged down and needs some airing. Sometimes I get new ideas right after I walk away from my computer.

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3. Upgrade yourself

Take the down time to upgrade yourself. Go to a seminar. Read up on new materials (#7). Pick up a new language. Or any of the 42 ways here to improve yourself.

The modern computer uses different typefaces because Steve Jobs dropped in on a calligraphy class back in college. How’s that for inspiration?

4. Talk to a friend.

Talk to someone and get your mind off work for a while.

Talk about anything, from casual chatting to a deep conversation about something you really care about. You will be surprised at how the short encounter can be rejuvenating in its own way.

5. Forget about trying to be perfect.

If you are in a rut, the last thing you want to do is step on your own toes with perfectionist tendencies.

Just start small. Do what you can, at your own pace. Let yourself make mistakes.

Soon, a little trickle of inspiration will come. And then it’ll build up with more trickles. Before you know it, you have a whole stream of ideas.

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6. Paint a vision to work towards.

If you are continuously getting in a rut with your work, maybe there’s no vision inspiring you to move forward.

Think about why you are doing this, and what you are doing it for. What is the end vision in mind?

Make it as vivid as possible. Make sure it’s a vision that inspires you and use that to trigger you to action.

7. Read a book (or blog).

The things we read are like food to our brain. If you are out of ideas, it’s time to feed your brain with great materials.

Here’s a list of 40 books you can start off with. Stock your browser with only the feeds of high quality blogs, such as Lifehack.org, DumbLittleMan, Seth Godin’s Blog, Tim Ferris’ Blog, Zen Habits or The Personal Excellence Blog.

Check out the best selling books; those are generally packed with great wisdom.

8. Have a quick nap.

If you are at home, take a quick nap for about 20-30 minutes. This clears up your mind and gives you a quick boost. Nothing quite like starting off on a fresh start after catching up on sleep.

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9. Remember why you are doing this.

Sometimes we lose sight of why we do what we do, and after a while we become jaded. A quick refresher on why you even started on this project will help.

What were you thinking when you thought of doing this? Retrace your thoughts back to that moment. Recall why you are doing this. Then reconnect with your muse.

10. Find some competition.

Nothing quite like healthy competition to spur us forward. If you are out of ideas, then check up on what people are doing in your space.

Colleagues at work, competitors in the industry, competitors’ products and websites, networking conventions.. you get the drill.

11. Go exercise.

Since you are not making headway at work, might as well spend the time shaping yourself up.

Sometimes we work so much that we neglect our health and fitness. Go jog, swim, cycle, whichever exercise you prefer.

As you improve your physical health, your mental health will improve, too. The different facets of ourselves are all interlinked.

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Here’re 15 Tips to Restart the Exercise Habit (and How to Keep It).

12. Take a good break.

Ruts are usually signs that you have been working too long and too hard. It’s time to get a break.

Beyond the quick tips above, arrange for a 1-day or 2-days of break from your work. Don’t check your (work) emails or do anything work-related. Relax and do your favorite activities. You will return to your work recharged and ready to start.

Contrary to popular belief, the world will not end from taking a break from your work. In fact, you will be much more ready to make an impact after proper rest. My best ideas and inspiration always hit me whenever I’m away from my work.

Take a look at this to learn the importance of rest: The Importance of Scheduling Downtime

More Resources About Getting out of a Rut

Featured photo credit: Joshua Earle via unsplash.com

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