Employer Sponsored Retirement Accounts – What Are Your Options?

In an effort to reduce my debt load, I have taken an additional job in order to increase my accelerator margin payments. The good news is, in the 4 months I’ve been doing this new routine we’ve paid off four credit cards as well as a vehicle loan. The great news is that this new job offers a SEP account. Well, what exactly is a SEP account, is it just a different term for a 401k? Let’s take a look and find out.

Employers will typically offer one of these plans: 401(k), 403 (b), TSA, SIMPLE, SEP, or Keogh.

401(k) is the most popular type of employer sponsored retirement plan. This is also the most complex and costly to maintain for the company. The employer can elect to make a matching contribution to the employees salary-deferral contribution . Within 401(k)’s you can take out loans, set up a vesting schedule, and profit-sharing plan. Maximum annual contributions are $15,500.

 

Avoid a Budget, Track Spending Instead

Having a hard time living within the constraints of a budget? Dislike the idea of budgeting altogether? I have a solution. I tried budgeting for six months and failed all six months! Not once we were able to stay within the limits. Which, to be honest is quite discouraging and makes you want to forfeit the whole idea. So instead, I have redirected my focus to TRACKING spending.

Tracking lets you know exactly where every dollar is going, how much gas you’re using each month, if you need to adjust the thermostat settings, maybe you’re just overspending in one category and underspending in another. I became so immersed in crunching the numbers and populating my excel sheet that I went through my backlog of statements up till February 2006. I wanted to have a clear picture of our average spending each month as well as annually.

 

Finding Sources of Secondary Income to Tackle Debt

As you may have noticed, yet again, my writing has been sporadic to say the least. Back near the date of my last post, I was reviewing our financial situation in anticipation of large upcoming expenses. Towards the middle of March, I became fearful as I began calculating all these expenses, my brother’s weddings, my husband’s brother’s destination wedding, paying the income tax we owed, dental work that totaled $1500, major car repairs…

I had also just finished reading Dave Ramsey’s book, The Total Money Makeover. The testimonials of grown men earning six figures having to pick up pizza delivery jobs to eliminate debt hit home with me. I knew there was no way we’d be able to afford any of these upcoming expenses

 

Free Download of Suze Orman’s Will and Trust Kit

Tonight, on the Suze Orman show, she offered a caller a promo code since she was pushing one of her products on the air, which she typically does not do. I don’t know how long the offer is good but go to suzeorman.com on the left banner column click on “Will and Trust Kit”. Click the orange button “Gift Code” and enter “people first”. You will be granted an activation code and have the option to either start the trust immediately or at a later date.

I personally purchased this kit a while ago and have been very satisfied with it. You can log on at any time to update or make changes. She also has an audio guide to walk you through all the legal jargon, which is quite helpful. Get your own copy while you can, have it notarized

 

To Work at Home or To Not Work at Home? How to Calculate the Actual Costs

Currently, I am working out of my home office. I often daydream about getting one of those big corporate jobs, using my degree and abilities to the full. I know I would definitely get higher pay by working outside the home, but would it really be more money in my pocket?

There are some additional expenses to consider. For starters, as I’m working from home we only have one car. Obviously, I would have some huge initial costs for getting back into the ‘real’ workforce. Let’s examine how costs associated with working at a corporate office compare to those of working from home, along with any benefits.

First, make a list of all the categories associated to having a job outside the home.