Maverick17
Maverick17
  • Threads: 17
  • Posts: 323
Joined: Mar 4, 2011
December 13th, 2011 at 4:52:01 PM permalink
I am self-employed and currently save $5,000 a year in a Roth IRA. That's it. I don't have a 401k and the only IRA I have is a rollover from when I quit my working stiff job and moved my 401k to an IRA.

In the past 2-3 years I have started making really good $$ and have found that I tend to spend more than I used to on stupid stuff (gambling included) and want to find a way to move some $$$ out of my checking account and into something were I can't touch it as easy.

What do you do?
Statistics don't lie, they deceive.
TheNightfly
TheNightfly
  • Threads: 23
  • Posts: 480
Joined: May 21, 2010
December 13th, 2011 at 4:55:25 PM permalink
Give it to your wife. You may never see it again but you won' be able to touch it.
Happiness is underrated
thecesspit
thecesspit
  • Threads: 53
  • Posts: 5936
Joined: Apr 19, 2010
December 13th, 2011 at 4:58:20 PM permalink
I pay myself first :: I put money into my Mutual Fund investments on the same day I get paid. I have no idea what the investment vehicles down south are, but I have money going into pension funds as well as shorter term savings accounts (that pay a decent amount).
"Then you can admire the real gambler, who has neither eaten, slept, thought nor lived, he has so smarted under the scourge of his martingale, so suffered on the rack of his desire for a coup at trente-et-quarante" - Honore de Balzac, 1829
MathExtremist
MathExtremist
  • Threads: 88
  • Posts: 6526
Joined: Aug 31, 2010
December 13th, 2011 at 5:28:56 PM permalink
I have separate business and personal accounts and I pay myself a paycheck on a regular basis using EFT through my banks. I also give myself quarterly bonuses if I've had a good quarter. I suggest doing this, and further suggest not dipping into your business assets otherwise. On a quarterly or other regular basis, determine whether you deserve a raise based on business cashflow. I find that multiple accounts and regular transfers (paychecks) help me manage my personal finances separately from my business finances.

When all that's done, talk to your CPA about a business IRA as well as other personal IRAs. Even if you don't do any of the above, set up an automatic transfer from your checking account into a personal IRA, whether it's Roth or Traditional or something else. But I don't know your situation so definitely talk to your CPA. If you don't have one, and you're doing your business taxes and financial planning yourself, ask yourself whether your time is better spent doing that or running your business...
"In my own case, when it seemed to me after a long illness that death was close at hand, I found no little solace in playing constantly at dice." -- Girolamo Cardano, 1563
Toes14
Toes14
  • Threads: 18
  • Posts: 455
Joined: May 6, 2010
December 13th, 2011 at 5:29:34 PM permalink
I put 11% of my salary into my 401k. Company matches 4.5% of salary, so that helps. Every time I get a raise, I increase the percentage +1% too. The wife's employer is looking into offering a 401k so as soon as they do she'll start contributing too.

Also, every time we get a decent lump sum of cash, like tax refunds or annual bonuses, at least an extra $1,000 goes in as well. Plus I set up automatic transfers from the checking account to the money market twice a month for $100 each. I try to keep $10k in there, but when it gets up to $12.5k, I move the extra $2.5k into an IRA I have (from my previous employer's 401k rollover).

I know it's not enough, but it's a decent start and I need to save more for the kids college right now.
"Bite my Glorious Golden Ass!" - Bender Bending Rodriguez
boymimbo
boymimbo
  • Threads: 17
  • Posts: 5994
Joined: Nov 12, 2009
December 13th, 2011 at 8:22:47 PM permalink
I don't save. I play the lottery every week, knowing that one day, it will hit.
----- You want the truth! You can't handle the truth!
Toes14
Toes14
  • Threads: 18
  • Posts: 455
Joined: May 6, 2010
December 13th, 2011 at 8:31:00 PM permalink
Quote: boymimbo

I don't save. I play the lottery every week, knowing that one day, it will hit.



I just won $50 on a scratchers ticket. Does that count?
"Bite my Glorious Golden Ass!" - Bender Bending Rodriguez
progrocker
progrocker
  • Threads: 4
  • Posts: 303
Joined: Feb 21, 2010
December 13th, 2011 at 10:51:04 PM permalink
I put in 7% to 401(k), company matches 7% with 10% annual discretionary contribution. Because of that generous match and profit sharing I haven't really seen the need to also go with an IRA contribution, as I prefer to spread my investments to some normal taxed accounts to use either in retirement or before without worry of early withdrawal penalty, in case I'm in need of it.
Solo venimos, solo nos vamos. Y aqui nos juntamos, juntos que estamos.
thlf
thlf
  • Threads: 16
  • Posts: 267
Joined: Feb 24, 2010
December 14th, 2011 at 6:50:59 AM permalink
I highly recommend purchasing on a regular basis silver bullion. I have been for over 3 years now and where the market is down, I am up over 100% on silver. The feeling is that it is going to go gangbusters in the next 5 years.
progrocker
progrocker
  • Threads: 4
  • Posts: 303
Joined: Feb 21, 2010
December 14th, 2011 at 7:02:40 AM permalink
@thlf
You buying futures contracts or actual coins/bars? I told my parents I'd like to buy them 5 ounce bars for their birthdays and they scoffed at the idea (maybe because they figured out I was potentially investing in my own inheritance?).
Solo venimos, solo nos vamos. Y aqui nos juntamos, juntos que estamos.
ChampagneFireball
ChampagneFireball
  • Threads: 16
  • Posts: 118
Joined: May 2, 2010
December 14th, 2011 at 9:00:23 AM permalink
Open a self-employed 401k, also known as an individual 401k. You can put way more money into that than a Roth IRA, and I think you can even do a Roth 401k with it.

As I understand it, you can put in the normal maximum of $16,500 plus catch-ups after age 50 plus "profit sharing" of up to 25% of your business profits, up to a max of $49,000. That's a lot of scratch. Makes me wish I were self-employed.

A quick google search shows Fidelity & ShareBuilder have them. I'm sure any reputable investment company has them.
thlf
thlf
  • Threads: 16
  • Posts: 267
Joined: Feb 24, 2010
December 14th, 2011 at 1:46:02 PM permalink
Quote: progrocker

@thlf
You buying futures contracts or actual coins/bars? I told my parents I'd like to buy them 5 ounce bars for their birthdays and they scoffed at the idea (maybe because they figured out I was potentially investing in my own inheritance?).




I actually buy bullion. Anywhere from .5 oz rounds to 10 oz bars. We give the .5 oz rounds to kids and grandkids for birthdays and christmas. The rest we just keep in a paid for vault.
  • Jump to: