Automatic Savings Plan

  

You just enrolled in your employer’s investment plan. You have opted to have 4% of your earnings deposited into an investment account. Let’s say you get paid each month on the 15th and 30th. Instead of taking home $1000 each pay check, you are now taking home $960.

You do not have to personally deposit funds into this investment account. It automatically comes out of your account before you can think about ordering all that stuff from Amazon. Seriously chill, and save your coins.

Related or Semi-related Video

Finance: What is a Keogh Plan?64 Views

00:00

Finance allah shmoop What is a keogh plan Well basically

00:07

it's an ira for self employed people and more or

00:10

less like have your own company your own llc Well

00:14

then you probably want to sock away some dough without

00:17

paying taxes today betting that you'll want to pay him

00:20

instead Tomorrow if ever knock on the door of keogh

00:24

plan central and you'll save your way to prosperity Sort

00:28

of lungs You invest the money well in the market

00:30

Well basically the keio works just like an ira If

00:33

you makes a hundred grand a year and you pay

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thirty five percent tax on that last ten grand that

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you make or thirty five hundred box well instead you

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could put that ten grand into a keogh plan invested

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for however many years until you're an old geezer Think

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seventeen and a half plus And hopefully that ten grand

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grows a whole lot in an index fund or something

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like that Because the market doubles about every seven eight

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nine ten years something like that And then when you're

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not working i'ii earning ah whole lot less money Well

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then you can start withdrawing that money from your keogh

01:05

Plan You pay something more like i don't know twenty

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percent in taxes at that point because you're taking lesson

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pay than you did when you were accumulating wealth like

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that thirty five percent So while the fuss to save

01:16

just fifteen percent net difference in taxes at thirty five

01:20

minutes Twenty there Well it's not that much fuss A

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few forms you fill out of filing here and there

01:25

and well that's kind of it You go buy an

01:27

index fund and sit but more to the point it's

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a day discipline That is when you have this wonderful

01:33

allure of saving taxes well for most people it's enough

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of an incentive to actually save money rather than spend

01:40

it and that's a good thing to dio So you

01:42

don't end up like this guy living in his suv 00:01:46.432 --> [endTime] you know down by the river

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