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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 June 19, 2019

How to Practice Positive Meditation in 2 Simple Steps

How to Practice Positive Meditation in 2 Simple Steps

Just by simply spending some effort and time, staying positive every day can be easily achieved. All that is required is a fraction of your time, 10-15 minutes a day to cultivate the positive you!

But first, what is really positive thinking? Do you have to be in an upbeat, cheerful and enthusiastic mood all day to be positive minded?

No. Positive thinking simply means the absence of negative thoughts and emotions – in other words, inner peace!

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When you are truly at peace within yourself, you are naturally thinking positively. You don’t have to fight off negative thoughts, or search desperately for more positive thoughts. It just happens on its own. And here are 2 positive thinking meditation tips to empower you:

1. Relax as You Meditate

A powerful, simple yet rarely used technique is meditation. Meditation doesn’t have to take the form of static body posture. It can be as simple as sitting in a comfortable chair listening to soothing music. Or performing relaxation techniques such as deep breathing exercises.

Meditation is all about letting go of stressful or worrisome thoughts. That’s it! If you spend just a few minutes per day feeling relaxed and peaceful, you automatically shift your mind into a more positive place. When you FEEL more relaxed, you naturally THINK more positively!

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Start with a short period of time, like 5 or 10 minutes a day. You can meditate first thing in the morning, during your lunch break, right before you go to bed at night, or any time. The most important thing is to consciously let go of unproductive thoughts and feelings. Just let them go for those few minutes, and you may decide not to pick them back up again at all!

2. Practice Daily Affirmations

Positive affirmations can be used throughout the day anywhere and at anytime you need them, the more you use them the easier positive thoughts will take over negative ones and you will see benefits happening in your life.

What are affirmations? Affirmations are statements that are used in a positive present tense language. For example, “Every day, in every way, I’m getting better, better and better” is a popular affirmation used by the late Norman Vincent Peale.

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So how does one go about using positive affirmations in everyday life? Let’s look at some guidelines to follow when reciting your daily affirmations.

  1. Use first person pronouns in your message (I)
  2. Use present tense (I have)
  3. Use positive messages (I am happy)
  4. Repeat your affirmations on a consistent basis

Affirmations have to be said with conviction and consistency. Start your day by saying your affirmations out loud. It wouldn’t take more than 5 minutes to repeat your affirmations; yet when done consistently, these positive affirmations will seep into the subconscious mind to cultivate the new positive you.

Here’s an example of a “success affirmation” you can use on a daily basis:

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I am successful in everything I do. Every venture I get into returns wealth to me. I am constantly productive. I always perform to the full potential I have and have respect for my abilities.
My work is always given positive recognition. I augment my income constantly. I always have adequate money for everything I require. I spend my money prudently always. My work is always rewarded.

You can find more examples here: 10 Positive Affirmations for Success that will Change your Life

Remember, affirmations work on the basis of conviction and consistency. Do yourself a favor and make a commitment to see this through.

Begin practicing these positive thinking tips right now. And I wish you continued empowerment and growth on your positive thinking journey.

More About Positive Thinking

Featured photo credit: Jacob Townsend via unsplash.com

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