Accounts that Will Help You SAVE More, Ep #150

Are you trying to figure out how to save more? Are you in debt right now? Are you motivated to get out of debt? You can use your abilities to make more and save more. But how do you accomplish that? In this episode of Best in Wealth, I share some of the accounts you can use to not only save more money—but help it grow. Financial freedom makes the stress roll off your shoulders. If you’re ready to be in that place, listen to this episode for numerous strategies and resources.[bctt tweet="What accounts will help YOU save more? Listen to this episode of Best in Wealth to find out! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #DebtFree" username=""]Outline of This Episode[0:34] The economy: Good news and bad news[5:02] Invest in depleted asset classes[7:04] Focus on becoming debt-free first[9:20] Healthcare savings: two things to think about[11:50] Take advantage of Roth/Roth IRA contributions[13:53] The Backdoor Roth[14:50] The Mega Backdoor Roth[16:15] Look into employer stock purchase plans[19:23] Consider an annuity or brokerage accountBecome debt-free—then focus on emergenciesWe want debt to be gone before you start to save more. Debt makes it difficult to truly save and reach financial freedom. Those who have adequate savings either make an incredible amount of money OR they make modest incomes but still save 30-50% of their income. How? By living below their means.Once you have your debt paid off, your focus needs to shift towards saving. But what? And how? You need to start with an emergency fund. How long of an emergency fund should you save up?3 months: if both spouses are working6 months: if you’re single18 months: high-income earners or entrepreneursWhy so much for entrepreneurs? You may want at least 18 months of expenses set aside to take advantage of mobility and business opportunities that come your way.Health savings options: FSA and HSAIf you have a Flexible Spending Account (FSA), it’s a great place to put away pre-tax money when you know you’re going to be spending money on medical expenses (medical, dental, and vision). If it’s through an employer, you usually have to spend it before the end of the calendar year.If you have a high deductible health care plan, start using a Health Savings Account (HSA). If your employer doesn’t sponsor one, you can open one with a bank (or online bank). A single person can contribute up to $3,050 a year and a married couple up to $7,100. They help your current year taxes, you save more money, and when you pay medical you don’t pay taxes. Plus, you can carry the balance over to the next year.Many people don’t know this, but If you stay healthy—you don’t have to use the money on healthcare. You can keep the money in that account and invest it. Then, once you turn 65, the HSA acts like an IRA and you can withdraw that money in retirement (and hopefully get taxed in a lower tax bracket). Listen to the episode to learn more.[bctt tweet="Did you know that you can invest the money that you keep in an HSA? I talk about this and other ways to help YOU save more money in this episode of Best in Wealth! #wealth #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #DebtFree" username=""]Roth IRAs, IRAs, and non-deductible IRAsIf your employer offers a 401k, you’re allowed to contribute $19,500 in 2020. If you’re 50+ you can contribute up to $26,000. Another option is a separate IRA or Roth IRA. If you make too high of an income, you won’t get a tax break upfront. It will be considered a non-deductible IRA.What does that mean? Money still grows tax-free, but...