Category: Retirement Accounts

Front-Loading and a $2,690 Pay Check

There is no telling what my Human Resource department thinks of me.  They finally stopped asking questions about my erratic 403(b) retirement contribution requests and just process them now as is. I changed my contribution from 85% of my salary to my upper limit of 87% for several pay periods while I was front-loading. Then down to 19%. For yesterday’s check, I went all the way down to a 3% retirement contribution.  It will likely...

Matchmaking – $3,025

I overheard someone in the cafeteria at work the other day saying they do not contribute to their retirement account. I could hardly believe my ears. This person seems to be experienced enough to know this inaction would cost them some serious money. Could it really be these concepts I consider in the realm of ‘common sense’ are not followed by the entire workforce? It is common for employers to match a certain percentage of...

22 Cents on the Dollar

So how much cash is all this retirement contribution saving you, Max OOP? Well, retirement contributions technically don’t save any tax – it is deferring tax until a later date.  The goal is to use the deferred tax dollars to make money. You would then realize this as income at a point in the future when you’re in a lower tax bracket. Or, even better, take it during a year you are on sabbatical and...

How I Slashed My Retirement Expense Fees By Over 40%

I got a complicated-looking letter from my retirement account administrator about a month ago. It was too long to understand and the only take away I got was my employer was no longer going to offer the Vanguard Index Fund (VINIX) I had selected as the landing place for my hard-earned cash. I immediately got irritated. After all, I have been front-loading thousands of dollars of every paycheck into this fund over the last few months.

Front-Loading and a $12 Pay Check

Since Max OOP doesn’t need much cash from my paycheck these days, I figured I would continue my front-loading strategy for 2019. My 403(b) retirement bucket can hold $19,000 in 2019. Front-loading is basically paying myself before the federal government. I defer taxes now instead of slowly all year. It gives me more time in the market. The Mad Fientist can explain it much better than I can here. Trust me, if I can do it,...