All these deals/hustles that I do everyday is just a side thing. My game plan is to let my money grow… as in compound interest and passive income. This post is not to pat myself in the back, or fishing for compliment… I hope to share my retirement plan to get you think where you are in your life. Where do all my money go you wonder? Here is the lowdown.
I have a pension plan through my job, and money is taken out on each paycheck. If I’m with them for the next 25 years, my monthly retirement check will be around 80% of the highest paycheck. Not too shabby.
Some may be happy with my situation, but I am not satisfy. That is why I opened a Roth retirement plan with Vanguard. I’ve just started last year, and so far, I have maxed out this year too. My goal is to max out my Roth each year as long as I’m qualify. Why is a Roth is important?
- Money grows tax free. Whatever you earn is what you will withdraw when you reach 59 and a half.
I highly recommend to go with Vanguard Target Retirement 2045 Fund (VTIVX). Knowing that it’s an IRA fund, I just sit back and ride the wave. No need to look at my fund everyday, no tax consequences, and no paperwork to worry about. Life is sweet.
Any extra money I have, I intend to look into passive income investments such as real estate, carwash, commercial rental properties, stocks, and/or opening a franchise. Of course I don’t have that kind of money right now, but hey I’m only 26 so hopefully with time, money will accumulate with hard work and determination.