Mortality – Are We Well Protected? Oh, dear, oh dear. It’s been one death after another since the beginning of Chinese New Year. It was a spate of six who offered in recent weeks. In all full cases, they were aged parents of co-workers and friends. Most recently, I then found out that a close friend acquired suffered a tragic medical event. He’s in very bad form, and I fear he may not make it.
As a single income family with two teens, it is a predicament which will be of grave be concerned and concern. I can totally empathize with the implications as my family is likewise dependent on me as the single bread winner, with a set of teenagers going through the paces of education.
The exact situation as my pal. It led me to ask myself, how will my family tide through should anything happen to me? 1.7m. Would that be enough? 6,000 well worth of dividends per season. 74,000 of passive income per month. The car up is fully paid, although it will reach its 10-12 months mark within a couple of years eventually. 50,000 principal outstanding. No other obligations, beyond the regular credit card debt. 6,000 a month should be adequate. Worst case, life may have to pick up some work to supplement.
- 39 stocks with a dividend yield higher than the 5 year average dividend yield
- 6 years back from Central Oklahoma
- Paid wages
- Using the Perpetuity Solution to solve for the equivalent Terminal Multiple Method multiple
- Catch-up Contributions (for participants age 50 or older)
1.7m to create a reliable and safe 4% dividend return? Got to work on that. Perhaps the simplest solution is to instruct her how to buy STI ETF? Meantime, whatever beliefs and faith you may subscribe to, wish my friend and his family well. They need all the help, physically and spiritually. Wishing all, and my family and me safe especially, healthy and happiness in the entire year and years ahead. Cherish what we have.
However, for individuals who don’t own their own home and face increasing casing costs, their tax-advantaged pension plan contributions represent a smaller percentage of their overall online well worth and earnings. As a total result, these retirement plan contribution limit increases don’t help these individuals in a meaningful way. 500 in Wichita, Kansas will go a lot further than it does in San Francisco or New York. Further, because of the cost-of-living disparities, the income phase-out limits in the above list exclude large sums of the populace.
200,000 annual income in New Orleans (middle America) places you close to the top 5%. In San Francisco? 500,000 before you reach the same percentile. Seeing income limits double would be a great start to include all Americans in these noticeable changes. The yawning gap between your coasts and middle America makes these de minimus changes bit more than noise to large swaths of the population. And just because the coasts have higher incomes to match the bigger cost of living, doesn’t suggest they shouldn’t have the same chance to plan and donate to a tax-advantaged retirement account. Despite this, if you in a higher cost-of-living area, I still strongly recommend adding the utmost possible to your pension plans.
It might be peanuts to you, but it’s something. Take any benefit you can get. Next year, because my wife shall surface finish residency and her job will increase our combined income, we may only have Traditional IRAs and my 401(k) retirement programs contribute toward our retirement savings. We fully plan to max out any available retirement plan available to us because it is a great way to grow retirement assets in a tax-advantaged manner. This helps us to go closer to a cushy retirement balance. These 2019 pension plan limit boosts are something we don’t plan to miss out on.