401K can fund your next summer trip to the beach
Is 401k worth?
401K
SettleWise conducted interviews with numerous individuals, including visa holders and Green Card holders, and discovered a common trend: the majority of them either contribute very little or nothing at all to their 401(k) accounts. This revelation is concerning because it indicates a widespread misunderstanding or misconception among Immigrants regarding the importance and potential benefits of 401(k) savings.
As Immigrants, building a secure financial future is of utmost importance. One essential tool that can help achieve this goal is a 401(k) retirement plan. In this article, we will explore the significance of 401(k) accounts, we aim to address these concerns, dispel myths, understand how Immigrants can take advantage of them, and highlight the steps to access funds even if they move back to their home country.
The Power of a 401(k) Retirement Plan:
Long-Term Financial Security: A 401(k) allows individuals to save and invest for retirement, providing a source of income during their golden years.
Employer Matching Contributions: Many employers offer matching contributions, which means free money for your retirement savings.
Tax Advantages: Contributions to a traditional 401(k) are tax-deferred, reducing your taxable income, while Roth 401(k) contributions offer tax-free withdrawals during retirement.
Immigrants and 401(k) Plans:
Eligibility: Immigrants with valid work visas or permanent residency can participate in employer-sponsored 401(k) plans, just like any other employee.
Investment Options: Immigrants have the same investment choices as other participants, allowing them to build a diversified portfolio aligned with their financial goals.
Portability: If you decide to return to your home country, you can still keep your 401(k) account intact and continue to grow your savings.
Accessing 401(k) Funds When Moving Back Home:
Leave the Funds in the Account: You can choose to leave your 401(k) funds in the account, allowing them to continue growing tax-deferred or tax-free until retirement.
Roll Over to an Individual Retirement Account (IRA): Transferring your 401(k) funds to an IRA allows you to maintain control over your retirement savings and access the funds even if you're living outside the United States.
Consider Tax Implications: It's crucial to understand the tax implications of withdrawing funds from your 401(k) or IRA, as they may vary depending on your home country's tax laws and any tax treaties between your home country and the United States.
#SettleWiseStance – See what 401K savings can do for you. Here's a sample calculation to illustrate the potential savings and growth of a 401(k) account with a 6% contribution rate, a 3% employer match, an annual salary of $90,000, an average portfolio growth of 7%, and savings over different time horizons:
Employee Contribution: = $450 per month * 12 = $5,400
Employer Match: $225 per month * 12 = $2,700 (Free Money 😍)
Yearly Total Contribution: $5,400 + $2,700 = $8,100
Tax Savings: Assuming a marginal tax rate of 25% (tax savings are subject to individual tax brackets and deductions): Employee Tax Savings: $5,400 * 25% = $1,350 (it can fund your summer trip to the beach)
After 10 years: ($8,100 * 10) + $38,747 (7% avg growth) = $127,847
After 20 years: ($8,100 * 20) + $193,308 (7% avg growth) = $363,408
After 25 years: ($8,100 * 30) + $345,679 (7% avg growth) = $556,279
If you have any further question, please ask it in the comments. SettleWise team will try to get the answer for you.
Dos and Don'ts for an Unforgettable Theme Park Experience
Theme parks are a thrilling destination for families seeking adventure, excitement, and unforgettable memories. Whether you're planning a day trip or a full vacation, it's important to be prepared and make the most of your time. To ensure a smooth and enjoyable experience, here are some essential dos and don'ts for families planning to visit a theme park.
Dos:
Do plan and research in advance: Before visiting a theme park, research the attractions, rides, shows, and dining options available. Familiarize yourself with park maps, opening hours, and any special events or promotions. Planning ahead will help you optimize your time and make the most of your visit.
Do arrive early: Arriving at the theme park early gives you a head start, allowing you to beat the crowds and experience popular attractions with shorter wait times. Take advantage of the early hours when the park is less crowded and enjoy the rides and activities before it gets busier.
Do wear comfortable clothing and footwear: Theme parks involve a lot of walking, so wear comfortable clothing and supportive footwear. Dress appropriately for the weather, considering the park's climate and any water rides or attractions you might encounter. Don't forget sunscreen, hats, and sunglasses for sun protection.
Do stay hydrated and pack snacks: Walking around a theme park can be physically demanding, so it's important to stay hydrated. Carry water bottles and refill them throughout the day. Additionally, packing some healthy snacks like fruits, granola bars, or sandwiches will help keep everyone energized and save money on food purchases.
Do take breaks and prioritize rest: Theme parks can be overwhelming, especially for young children. Take regular breaks to rest, relax, and recharge. Find shaded areas or designated rest zones to unwind and ensure everyone in your family stays refreshed and in good spirits.
Don'ts:
Don't overlook height and age restrictions: Pay close attention to height and age restrictions for rides and attractions. Ensure that everyone in your family meets the requirements to avoid disappointment or potential safety concerns. Most theme parks have measuring stations near the entrance of each ride to help determine if your child is tall enough.
Don't rush from one attraction to another: While it's tempting to try and experience everything, rushing from one attraction to another can be exhausting and stressful. Instead, prioritize a few must-see attractions and enjoy them fully. Remember, quality over quantity is key to creating lasting memories.
Don't forget to establish a meeting point: In crowded theme parks, it's easy for family members to get separated. Establish a designated meeting point where everyone can regroup in case you get separated. This can be a landmark or a specific area that is easily identifiable. Teach children what to do if they become lost, such as seeking help from park staff.
Don't ignore safety guidelines: Pay attention to safety instructions and guidelines provided by the theme park. Follow all rules, including height and age restrictions, seatbelt usage, and any other safety measures. Safety should always be a priority to ensure a secure and enjoyable experience for everyone.
Don't forget to have fun and cherish the moments: Amidst the planning and logistics, don't forget the true purpose of visiting a theme park – to have fun and create lasting memories with your family. Embrace the joy, excitement, and laughter that comes with the experience. Take plenty of photos, enjoy the rides together, and cherish the moments of pure happiness.
#SettleWiseStance – Upgrade Your Theme Park Ticket for More Value. When planning your theme park visit, consider upgrading your single visit ticket to a seasonal or annual pass. Many parks offer this option for a small fee, and it can be a great deal if you plan to visit multiple times during the season or within a year.
By doing the math and evaluating your potential future visits, you can decide if the upgrade is worth it. Not only can you save money in the long run, but you'll also enjoy perks like discounts on food, beverages, and even free parking (which can be quite expensive). Converting your ticket provides flexibility and convenience, allowing you to return to the park without purchasing tickets each time. It enhances your experience and ensures you get the most out of every visit.
Wiser Craving
Multiple subscribers reached out expressing their interest of learning few specific topics. If you want to read about any specific topic, Please let me know in the comments or email to author.settlewise@gmail.com
#WiserCraving Topic of this edition is Senators and Congressmen at your service.
Senators and Congressmen at your service.
There is a common misconception that lawmakers, including Senators and Congressmen, are solely focused on serving U.S. citizens and may not extend their support to Visa or Green Card holders. However, it is important to break this myth and understand that these policymakers are here to represent and assist all individuals residing within their jurisdiction. In this article, we will explore the ways in which senators and congressmen, both at the state and federal levels, can actively help the public, including Immigrants, with various needs and concerns.
Facilitating Driver's License for Immigrants: State lawmakers have the power to address issues related to driver's licenses, especially when discrepancies arise between visa extensions and the Department of Motor Vehicles (DMV) records. For instance, if an Immigrant's visa is extended, but the updated information is not reflected in the SAVE report accessed by the DMV, it can cause delays and complications in obtaining or renewing a driver's license. In such situations, the office of a state senator can play a pivotal role in expediting the process and ensuring a smoother experience. They have the ability to intervene on behalf of the Immigrant, contacting the DMV and advocating for prompt resolution.
Advocacy for Visa and Green Card Processing: Senators and congressmen have the ability to engage with the U.S. Citizenship and Immigration Services (USCIS) on behalf of Constituents. They can follow up on Visa and Green Card applications, urging USCIS to prioritize processing and providing support in resolving any delays or issues that applicants may encounter. This advocacy can significantly alleviate the stress and uncertainty faced by Immigrants awaiting their immigration status adjustments.
Assistance in Medical and Emergency Situations: Lawmakers can provide valuable assistance to individuals who find themselves in medical or emergency situations while undergoing passport processes or dealing with immigration matters. In such circumstances, senators and congressmen can leverage their influence to coordinate with relevant officials and agencies. This may involve arranging for officials to visit hospitals or other appropriate locations to complete necessary formalities, such as obtaining signatures or photos. This assistance helps individuals in urgent situations, who may be unable to physically visit government offices due to their medical condition or the time-sensitive nature of their circumstances.
Support with Passport Applications and Renewals: Senators and congressmen can lend their support to U.S. citizens facing challenges with passport applications and renewals. By assisting constituents in navigating the passport process, providing guidance on required documentation, and liaising with passport agencies, they can help ensure smoother and expedited passport services for those in need. This support is particularly valuable for individuals facing time constraints or travel emergencies.
Outreach and Communication Channels: To seek assistance from lawmakers, it is important to know how to reach out to them effectively. This can be done through contacting their offices via phone, email, or written letters. Many lawmakers also have dedicated sections on their official websites to submit inquiries or requests for assistance. Engaging with community organizations and advocacy groups can also provide valuable guidance on how to connect with lawmakers and seek their support.
#SettleWiseStance – Highly recommend taking advantage of the elected officials. I have no doubt you will be amazed the way they help you.
Don’t know who is your senator? I got you covered. Go to https://www.senate.gov/senators/senators-contact.htm and select your state to bring the senators list. then click on the senator picture to land to their website to find their contact details.
If you have any further question, please ask it in the comments. SettleWise team will try to get the answer for you.
Idioms and Phrases
The ball is in your court - it's your turn to act or respond
Skin in the game - having a vested interest in how something turns out
It's like pulling teeth - something that requires a lot of effort
Itchy feet - someone is getting restless; being ready to move on to the next activity
Pick your brain - to ask questions to find out someone's thoughts or opinions on a topic
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Disclaimer: I am not a certified professional in the field discussed. The content provided in this article is for educational and entertainment purposes only. The opinions and suggestions shared are intended to provide general information and assist you in making informed decisions. Therefore, while you can continue reading and absorbing the information, please exercise your own judgment and seek professional advice when necessary.
I am new to 401K. Need inputs on following.
How to determine the risk factor of a fund?
What is a reasonable approach in distributing the contribution across fund?