Retirement Preparation 101 video

Check out this 17 minute video, courtesy of the Squared Away Blog:

https://squaredawayblog.bc.edu/squared-away/video-retirement-prep-101/

Kevin Bracker, a finance professor at Pittsburg State University in Kansas, presents a solid retirement strategy to workers who need to get smart about saving and investing.
Bracker explains the most important concepts clearly – why starting to save early is important, why index funds are often better than actively managed investments, the difference between Roth and traditional IRAs, etc.

Retirement plan limits for 2019-2020

 401(k) contributions
The annual contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the Thrift Savings Plan used by federal government employees increased in 2019 to $19,000 (and those limits will be going up another $500 in 2020). If you’re 50 or older, you also can take advantage of a catch-up provision of $6,000 (a figure that is also rising by $500 in 2020). That means all together you could put away $25,000 in your employer-sponsored plan in 2019 — and that total rises to $26,000 in 2020. And in case you were wondering, your employer’s matching contribution, if there is one, doesn’t count toward your limit

IRAs
The contribution limits for traditional and Roth IRAs went up in 2019 — to $6,000, or $7,000 for those who are 50 and older. So if you’re a 50-plus individual focused on growing your savings account, you could put away as much as $32,000 between your 401(k) and your Roth in 2019.

Contribution limits for Roth IRAs and traditional IRAs will remain the same in 2020.

Thanks to:  Dina Siracusa, Investment Adviser Representative | Provident Wealth Advisors
Source: https://www.kiplinger.com/article/retirement/T047-C032-S014-401-k-and-ira-advice-especially-for-women.html

How much should you save for retirement/financial freedom? One simple answer: 10%... IF you start young

How much to save for retirement depends... on who you talk to, your current age & lifestyle and many other factors. However, some solid research points to one simple number: 10% of your paycheck, if you begin saving at the start of your career.

The new math of saving for retirement may boil down to this one, absurdly simple rule:

Save 10% of your earnings

The article is simple to understand with great visuals. 
No more excuses!
Of course, if you are older than millenials you'll have to invest more than 10%. Start today!
Get the details from Joshua Gotbaum writing for MarketWatch at:  https://www.marketwatch.com/story/the-new-math-of-saving-for-retirement-2019-05-22

Do 401k and IRA Contributions Reduce My Social Security Benefits?

Mike Piper, author of The Oblivious Investor Blog, explains:
"pre-tax contributions that you make to an employer-sponsored retirement plan such as a 401(k) reduce your income tax, but they do not reduce your Social Security tax. The same goes for traditional IRA contributions, as well as contributions to a SEP or SIMPLE IRA.
And because they have no effect on the amount of your income that’s subject to Social Security taxes, pre-tax contributions to an IRA, 401(k), 403(b), etc. do not reduce the Social Security benefits that you will eventually receive."
https://obliviousinvestor.com/do-401k-and-ira-contributions-reduce-my-social-security-benefits/