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The Retirement COLLAB Blog

What is the Rule of 72?

Most of us like to know the length of time it will take our investment to grow. We want all the numbers: estimates, figures, how old we will be when it’s doubled, etc. Some things in life are just hard to know because there are no guarantees. 

But with the Rule of 72, you always know the number of years it takes to double an investment. The Rule of 72 will tell you a lot about the money you invest. Thanks to the Rule of 72, the table below tells us how many years it will take an initial $10,000 investment to double, depending on the rate of return. 

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What is a Backdoor Roth IRA and Does It Make Sense for Me?

Roth IRAs are one of the most fruitful investment accounts for people trying to develop a healthy nest egg. Among their numerous benefits, the tax-free growth and retirement distributions with Roth IRAs can set you up for maximum retirement earnings. 

Unfortunately, high-income earners are generally barred from taking advantage of a Roth IRA. In 2020, single earners with an annual income exceeding $139,000 were limited to a traditional IRA only.

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5 Ways to Pay Off Your Mortgage in 5 Years

Not everyone wants to spend the next 30 years paying a mortgage. Most of us want the wprivilege that comes with homeownership but feel it’s a lot to have to carry for so long. 

Wouldn’t it be great to be a homeowner and not have to carry the burden of a 30-year mortgage for, well, 30 years? What if you’re pretty close to retirement but still foresee a lengthy mortgage payment in your future? 

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6 Tips to Pay Off Your Student Loans in Less than 5 Years

Student loan debt in the United States is over one trillion dollars and growing. Millions of people are carrying the burden of student loans. Many still can’t see the light at the end of the tunnel when it comes to paying them off. 

Paying off your student loans can be difficult. With high interest rates and different rules than other types of loans, student loans are a tricky business. For those that want to be done with them at last, we have some great tips for paying off your student loans in less than five years.

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How To Determine How Much Your Business Is Worth

There are many reasons why you may want to determine how much your business is worth. 

You may be approached by a proposed buyer. You may want to sell and invest the money for your retirement. You may want to know it for insurance purposes. 

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How to Determine Your Budgeting Category Percentages in Retirement

If you are retired or getting close to retirement, chances are you are familiar with budgeting. There are many techniques for budgeting out there, but the basic idea is to balance your income and expenses. One way to do this is to think about your expenses as percentages. 

Budget percentages, as made popular by radio personality Dave Ramsey, help you understand where your money is going. The goal is simple: keep your expenses in each category within a certain percentage of your income. Most people who follow this method adhere to 10 common categories.

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What Are 401(k) Matching Rules?

The business world uses the term 401(k) often. Many employers offer their employees these retirement accounts as a benefit to working there. 

Some employers even offer 401(k) matching. This benefit is exactly as it sounds. An employer matches the amount of money that you contribute to your 401(k). So, you put money into your 401(k), and then your employer does the same. 

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What is a 72t Withdrawal and is it Right For Me?

This post was last updated on June 24, 2023, to reflect all updated information and best serve your needs.

Whether you’re retiring early or your financial circumstances shift unexpectedly, a “72t” withdrawal strategy might be useful. Knowing the full arsenal of penalty-free withdrawal options can help you make your money work for you regardless of what life throws at you.

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What is a Deferred Compensation Plan?

If a business wants to hire and retain top-performing employees, it needs to offer substantial benefits. While options like healthcare and paid time off are enticing, nothing is quite as appealing as tax breaks. High-earning workers typically want to save as much money on taxes as possible while maintaining investment opportunities. 

Fortunately, that’s accomplished through deferred compensation plans. These plans can come in many forms and offer specific advantages (and potential disadvantages). This article will dive into how these plans work and why they can be so attractive. 

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What Are Alternatives to Traditional Life Insurance?

Not everyone can qualify for a traditional life insurance policy. Depending on your health and lifestyle, an insurance underwriter might be reluctant to approve your application for a policy.

If you have only applied to a company or two, don’t give up on a traditional life insurance policy yet. Every company has different standards that they follow, and something that disqualifies you from one might not disqualify you from another. 

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