Investing

MONDAY MONEY TIP PODCAST: Joe's Current Investments

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Welcome back to another episode of the Monday Money Tip Podcast! This week, we will discuss the stock market in our Current Money Events segment and you’ll hear the “Joe Sangl” approach when it comes to investing and the diversification of income. Lastly, we will share a success story from a listener who created financial margin in her life and even forgot it was payday!

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us!

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

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About the Episode:

  • Hear a stock market update in our Current Money Events segment.

  • We will share the “Joe Sangl” approach of how to diversify income.

  • Hear a success story from an individual who created financial margin in her life and forgot it was payday.

Resources:

IWBNIN Saving & Investing Tools
Oxen Book
Social Security Calculator
Net Worth Calculator
Charles Schwab


Quote of the Day:
“The Bible says in 2 Corinthians 9:6 that if you sow generously, you will reap generously. If you sow sparingly, you will reap sparingly. But what if you sow nothing at all? I suspect you will reap nothing!” - Joe Sangl

401(k)'s Explained

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I’m sure by this point you know it is very important to save into a retirement account so that at one point you can stop working. But this can be confusing to navigate when you are unsure of what the different accounts are and how they work. The numbers and letters are thrown around so often it can be easy to feel like you should just KNOW what everything means. But what exactly is a 401(k)? 

Simply put, a 401(k) is a retirement savings plan that comes from Section 401 part k of the IRS tax code. It is what is known as a “pre-tax” investment which means that generally you are able to deduct annual contributions on your taxes each year. Once the money is in the account, it grows tax-free until you withdraw the money. At that point, you will have to pay taxes on your initial investment and also any growth that has accumulated. 

If your employer has a 401(k) available for you to invest in, most times they will also offer a match up to a certain percentage. For example, some employers may match dollar for dollar up to 6%. So if you invest 6% of your paycheck into your 401(k), your employer will match that 6%. That’s FREE money! 

401(k)’s can be a fantastic vehicle to accumulate money for retirement. While it can be confusing with so many different types of accounts the key is to get started saving and never turn back! 

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Benefits of An IRA

You have probably heard something at some point about making contributions into an Individual Retirement Account (IRA) to prepare for retirement. Retirement and investing can seem scary and difficult or only for the super rich but I’m here to tell you: That is a lie. You can (and should!) begin investing for retirement and an IRA is a fantastic way to do just that. 

The most popular types of IRA’s are the Traditional IRA and the Roth IRA. These investment vehicles are great ways to accumulate retirement money although they differ in their taxation. You can learn more about their differences in our podcast, Roth vs. Traditional IRA

When you decide to invest into an IRA, regardless of the one you choose, you can expect to experience a variety of benefits. 

Taxation: When you invest into a Traditional IRA, those contributions are made with “pre-tax” dollars which means that you can deduct them from your income. In a Roth IRA, contributions are made with after-tax dollars. This means that while you will not get a tax deduction, you will not have to pay any taxes when you withdraw the money in retirement. The tax benefits of both accounts can provide great traction when accumulating money for retirement. 

Automation: One of the reasons IRAs are so popular is because they allow you to automate your savings. These accounts are incredibly easy to start and with a simple bank draft, you can make sure that you are investing every single month. 

Compound Interest: After you have set up your IRA and automate your contributions, you will eventually be able to see the 8th Wonder of the World: Compound Interest. This means that once you start adding money you will start earning interest on that money. And then interest on THAT money. Your money will begin to work for you. 

These are only a few of the benefits that you’ll experience when investing into an IRA. Ultimately, you want to make sure that you are taking advantage of every benefit that you can when you’re trying to save money for retirement. Whether you are fast approaching retirement or just getting started in life, using one of these accounts can greatly help you accumulate money so you can live your best life when you eventually leave the workforce.  

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Pulling Money Out of Retirement Accounts Early

As people take off on their debt freedom journey, so many times they are tempted to withdraw money from their retirement accounts in an attempt to speed up their debt elimination process. We get questions all the time from people who want to know whether or not we think this is a good idea. 

I do not think it is ever a good idea to take money out of a retirement account in an effort to pay off debt. Many people feel like retirement is so far away that they have plenty of time to begin saving. And while you may have plenty of time to start saving, you will never regret starting as early as possible. The key is to start investing early and invest consistently. In all likelihood, no matter when you begin saving for retirement, you will wish you had started sooner.  

When you get started on your debt freedom journey, it can seem like the end is so far away. But I would encourage you to stay the course. Get a budget using one of our FREE tools, calculate your debt freedom date using our FREE calculator and slowly but surely, you will see those debts drop off. And once they are all gone, not only will you be debt free but you will also still have your money working for you in your retirement accounts. 

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Make Your Retirement Savings A TOP Priority

Do you feel like retirement is so far away you cannot even imagine it? Or do you feel like retirement is so close that you can taste it? Either way, you should be making your retirement savings a TOP priority today! 

Statistics show that many people do not start saving until they are only 10 to 15 years away from retirement! If you choose to wait on starting your retirement savings, you are missing out on something that can actually carry your financial burden called compound interest. Compound interest can take your $100/month investment to $1,176,477 in 40 years. The earlier you start and the more consistent you are, the better off you’ll be when you get ready to retire. 

If you are not actively contributing to accounts dedicated to retirement, I would highly encourage you to start doing so immediately! I have never ever heard someone say “Wow I wish I had waited to start saving for retirement” or “Joe I am retired and I just have too much money”. You will never be able to go back and retroactively start your retirement accounts. But what you can do, is make sure that you do not waste another minute and you start investing today. 

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Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.

Joe Sang's Current Investments

Full Disclosure: I am not a certified financial planner, nor do I sell investments, insurance products, or other similar financial products. My goal in sharing this information is to shed light on a topic that few people understand well. It is my hope that this information will help inspire more people to climb the I Was Broke. Now I’m Not. Ladder (download a free copy HERE) and become wise investors so they can live fully funded lives. 

Throughout the month of October, we have been heavily focused on investing. I wanted to end the month by sharing my current investments. I do not recommend specific investments. I can only tell you the investments I own, and that they have worked well for me. The investments that you choose are up to you. I update this list of investments every March so make sure you are on the lookout. 

Click below to see a chart of my current investments.

The Basics of Oxen

Where there are no oxen, the manger is empty, but from the strength of an ox comes an abundant harvest. Proverbs 14:4

This verse had a profound impact on me as I went through my financial freedom journey. From this verse, I realized that I could either live a life with an empty manger or with an abundant harvest and the choice was up to me. In the pursuit of financial abundance, I could choose to rely on myself and my own abilities, or I could acquire oxen to help me. Which do you think I chose? 

In my book, Oxen, I have outlined the different types of oxen, how to acquire oxen and how to lead oxen. These principles will help you maximize your financial resources and experience an abundant harvest, just as I did, so that you can fund your biggest and wildest dreams. 

Most people earn money by showing up to work and in turn they get paid. If you do not show up to work, you do not get paid. Oxen can allow you to earn money whether you are working or not! There is only so much time in a day and therefore there is only so much work that one person can physically put in. This is why oxen are so important: they allow you to eliminate the time barrier. 

Oxen can do things you cannot do. They have the ability to carry a load that you cannot carry and can endure more than you can endure. Oxen can be trained and can work together and accomplish even more. They work rain or shine, night and day so that you do not have to. They can multiply and take you places you may have only dreamed about. Oxen can provide. 

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Do you want to learn more about how you can acquire and maintain oxen? You can get my book Oxen for 20% off plus free shipping by clicking HERE

Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.