Retirement

How to Retire when you only make $30,000 per year

How to Retire when you only make $30,000 per year

Most people think of retirement as a rich person’s dream. To retire, you need to wear a suit, earn hundreds of thousands of dollars per year, and invest most of it. With a multi-million dollar nest egg, you can finally “live the dream” of retirement. There is no way a household that earns $30,000 per year can ever afford to retire, right? Wrong. Even if your income is $30,000 per year, you can still retire, it just takes a little bit of planning.

Continue reading →

Posted by David in Budgeting, Retirement, 17 comments
Passive Income is King

Passive Income is King

When it comes to early retirement, everyone tends to focus on net worth. Seriously, net worth is king. I track mine every month, and there are plenty of others who do it as well. Many of the personal finance blogs on Rockstar Finance also track their net worth. But is this the right metric to track? Should we spend all of this time meticulously counting every quarter to determine “the number?” Probably not. We should focus on passive income.

Continue reading →

Posted by David in Retirement, 37 comments
Mixing Traditional and Roth 401(k) and IRA Contributions Sucks

Mixing Traditional and Roth 401(k) and IRA Contributions Sucks

Get ready for a long read, because saving for retirement is extremely important. The government wants to make this as complicated as possible so you don’t do it. When it comes to saving for retirement, the two most popular ways are investing in a 401(k) and Individual Retirement Account (IRA). A 401(k) is a retirement offered by your employer, an IRA is an account that you can open at any brokerage firm. You purchase shares of individual stocks, ETFs, mutual funds, and even bonds with the hope that they increase in value over time and pay dividends. These accounts are popular for retirement because they provide you with a tax advantage.

Continue reading →

Posted by David in Investing, Retirement, 7 comments