Quote:
Originally Posted by ChiTown
Since we are talking about 401K's, I'll just kick this out there. I've been self-employed since 2003. Shortly thereafter, I started contributing to a SEP IRA. It's an awesome way to save on paying taxes, and a great way to put some money aside. You can put up to 25% of what you make, or in 2024 ('23 Tax basis) it's $66,000 max. If you are self-employed, make sure you are doing something like this.
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Good advice! Every dollar you put away to work for you is a little wage earner. Do that long enough and you will have an army of earners!
I will add for anyone capable of maxing or at least contributing to Roth IRA's and HSA'S do that as well. When my employer added the High Deductible Health plan and an HSA I took advantage of maxing out my HSA. Being a healthy guy we paid out of pocket for the little health care we used. We still do. We are saving the HSA and allowing it to grow until it is really needed in our later years.
What I failed to do was invest in a Roth. I have around a 14-16% effective tax rate in retirement. Nothing sucks more than to pay Uncle Same $1600 bucks for every $10K you withdraw from your IRA.