Automating savings is the by far the easiest way to put away for tomorrow’s financial needs. Sending a small amount to a 401K or bank savings account directly from a paycheck is painless once established. Likely after a few times, it won’t be miss it as much and increasing the savings contribution in a few months will be easy.
Estate planning does more than make plans for after death. It helps deal with events of incapacity such as comas. Who will make your health care and financial decisions if you were in a coma for an extended period of time?
In 2018, exemptions have gone away on Federal Income Taxes. In many cases, they have been replaced with a child tax credit and a new family tax credit. These credits are often more favorable that the old exemptions when combined with the new lower tax brackets.
Deciding how to fund both retirement and your kid’s education can be challenging! Two key considerations: 1) Don’t give up the free money of an employer’s match on a 401K contribution; and 2) there are no scholarships or grants to fund retirement.
Creating a specific financial goal helps by providing focus when making other money decisions such as whether or not to purchase something.