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Tag: 401k

Corey’s Financial Independence Update – 2018 Part 1

Welcome to the first post in my Financial Independence Update series! If you don’t know what the purpose of this series is, please read this first. This being the first post in the series, I will cover the entire first half of 2018, so it might be a longer one. Every post after this will cover one month, with the next post covering July.

I want to follow this particular format in these posts:

  • Main Goal(s). This will talk about my main financial goal(s) that I set out for the particular time period.
  • Ups and Downs. This will be a general reflection of what went well, what did not go well, and some improvements I am looking to make.
  • Financial Picture. This is not a net worth update. In this section, I will talk about how I deployed my cash in a way that improved my financial situation and why I did it the way that I did.
  • Looking Forward. In this last section, I will talk about what I plan on doing going forward. This can include how I plan on deploying cash, any changes in my strategy, or any significant expected changes in my financial situation in general.

How Tax Reform Changed My IRA Strategy

retired couple relaxing on a bench

Retirement accounts are key to achieving financial independence. However, with all of the different types of accounts, it can be challenging to know which ones to use. Throw taxes into the mix and retirement planning gets even more complex! Throw early retirement into the mix and now you are royally screwed! The good news is that this post is going to discuss two types of accounts: Traditional IRA and Roth IRA. Specifically, how the new tax reform changed my IRA contribution strategy.

Brief Lesson On IRAs

Before I get into tax reform, let me give you a refresher on IRAs.