Shannon

“SEP-IRA (Self-Employment IRA) Another kind of IRA. As with a traditional IRA, you pay the taxes you owe when you withdraw money—for instance, at retirement age. Made for solopreneurs or companies with a few employees. If you side hustle, you can have a SEP in addition to a trad/Roth IRA and a 401(k), even if you do not work full-time for yourself. This is one of the biggest reasons I was able to hit my $100K goal. Take those tax-advantaged accounts and contribute as much as you can. Maximum yearly contribution: 25 percent of your income, up to $61,000. Solo 401(K) Similar to the employer-sponsored 401(k) plan, except that you’re your own sponsor! You can have a Roth and/or traditional IRA in addition to a solo 401(k). This is an option only if you’re self-employed full-time, and you cannot have both a SEP-IRA and a solo 401(k). Maximum yearly contribution: $20,500.”
― Tori Dunlap, Financial Feminist: Overcome the Patriarchy’s Bullsh*t to Master Your Money and Build a Life You Love—A Personal Finance Handbook for Women, Mindful Spending, and Financial Literacy

“I personally like the Roth flavor for a few reasons. The first: it’s like giving sixty-five-year-old me a little gift: “Here’s this lump sum of money that I already paid taxes on; go take Hot Luca on a trip to Costa Rica.” I also have no idea what the fuck tax rates are going to be when I retire. I’d rather pay them now than leave it up to chance. Also, most people’s salaries grow throughout their careers; I expect (hope!) that you’ll be making more in twenty years than you do today, so you could contribute and pay less in taxes now, when you’re in a lower tax bracket. In”
― Tori Dunlap, Financial Feminist: Overcome the Patriarchy’s Bullsh*t to Master Your Money and Build a Life You Love—A Personal Finance Handbook for Women, Mindful Spending, and Financial Literacy

“The Financial Priority List Starter emergency fund (three months of living expenses in a high-yield savings account). 1.5.  If your employer matches your contributions to a 401(k) or 403(b) retirement savings account, pay in as much as you can. Pay down high-interest debt (anything with interest over 7 percent). Invest for retirement while also paying off lower-cost debt (again, any debt racking up less than 7 percent in interest, such as most student and car loans, mortgages, and so forth). Save for the Big Life Stuff.”
― Tori Dunlap, Financial Feminist: Overcome the Patriarchy’s Bullsh*t to Master Your Money and Build a Life You Love—A Personal Finance Handbook for Women, Mindful Spending, and Financial Literacy

“The second one is money worship. This is where you think that having more stuff, more money, is going to solve all your problems and make you happy. It’s not necessarily negative or positive—but people who believe those things strongly have less income, less net worth, and more credit card debt.”
― Tori Dunlap, Financial Feminist: Overcome the Patriarchy’s Bullsh*t to Master Your Money and Build a Life You Love—A Personal Finance Handbook for Women, Mindful Spending, and Financial Literacy