6/28/22 Blog Post Two
What is a retirement savings account? Emphasis on 401K plan
Welcome back future nursing millionaires! If you stumbled across this page, you have landed onto a gold mine. We are here to explain Financial Jargon in simple terms. Today we will list the different types of Retirement Savings Accounts, and briefly explain the infamous 401k retirement savings account. But first, what is a retirement savings account? In a nutshell, it’s a plan to save a portion of your salary that has some tax advantages as defined by the Internal Revenue Service, AKA IRS AKA Uncle Sam.
We have all heard or seen the phrase 401k. Usually a human resource personnel will quickly mention the 401k option as part of the onboarding package. Except the human resource personnel will refrain from going into details about what a 401k entails. Well, it’s actually quite simple to understand. A 401k is a type of retirement savings account. There are about 7 main retirement savings accounts that NURSES need to be familiar with and they are as following: 401k, 403b, 457, Traditional IRA, Roth IRA, SEP IRA and Solo 401k.
I’ve taken the liberty of creating an easy to read Retirement Savings Account Chart to be used as a reference. The chart is at the bottom of this blog.
Let’s keep this simple. A 401k is a type of retirement savings account that is usually offered by the employer (the hospital, clinic or organization you work for). The money is automatically withdrawn from your weekly/biweekly paycheck. The money is withdrawn from your weekly/biweekly paycheck BEFORE taxes, meaning its Pre-tax. The money is then invested into a fund/investment holding such as a Mutual Fund or ETF (the employer usually provides you with a list of funds/investment holdings to choose from which again can include a specific Mutual Fund or ETF). More on Mutual Funds and ETFs in future blogs but in a nutshell, both are a type of investment holding.
The employer usually offers to MATCH the amount you put into your 401k account. Matching is FREE MONEY! For example, some employers will put one dollar or two dollars for every dollar you put into your 401k. Some employers will put 50 cents for every dollar you put into your 401k. Whether its Two dollars or One dollar or Fifty-Cents per every dollar you put into your 401k, it's still FREE MONEY! Sometimes the employer will state that they will contribute a specific percentage, instead of a specific dollar amount. Remember, it’s still FREE MONEY whether the employer says they will contribute a specific dollar to dollar amount or specific percentage to dollar amount. Take advantage of the MATCH. For 2022, the maximum amount that can be contributed to a 401k retirement savings account is $20,500. This means that you and your employer combined can only contribute a total of $20,500 toward your 401k retirement savings account.
There’s one last benefit for having a 401k which is predominately useful during tax season. By having a 401k, the amount you put into the retirement account lowers your taxable income for the year. For example, if you make $80,500 in 2022 and contribute $20,500 to your 401k retirement savings account then you will only owe taxes on $60,000 ($80,500 - $20,500).
This information may seem a bit overwhelming but just remember to ask your employer for the details pertaining to a 401k retirement savings account. If your employer offers to MATCH your contributions to your 401k retirement savings account, email us. We would love to know which hospitals are offering to MATCH their Nurses 401k retirement savings account. We can be reached at: FLFnurses@gmail.com
Until next time, Future Nursing Millionaires!
* An asset can be a stock, bond, mutual fund, ETF and or cryptocurrency.
7/17/2022Blog Post Three
What is a 403 B retirement plan?
Welcome back future nursing millionaires! Nurses, the worst retirement savings plan is the infamous 403 b Plan also known as a tax-sheltered annuity. Why? Well, it’s simple. The fees and rates are some of the worse in the market. You could lose hundreds of thousands of dollars in fees. Yes, you heard it right, you could lose hundreds of thousands of dollars in 30 years in fees!
If your employer is only offering a 403 b Plan, make sure to NOT select a variable rate plan and definitely DO NOT select an Annuity plan! An annuity plan is known as a highway robbery. RUN!
In a nutshell, a 403 b retirement plan is a scheme designed to get the most money out of an unprepared person who is looking to invest into a retirement savings plan! A 403 b plan is a tax-deferred retirement savings plan. It is typically offered by tax-exempt organizations such as churches, nonprofit hospitals, public schools or universities and 501(c)(3) charitable organizations. Most hospitals and unions will claim to be 501(c)(3) charitable organizations, therefore that’s usually why they offer their nurses the UNPOPULAR yet COMMON 403 B Plan.
To get the most out of a 403 b Plan, you must determine if they are offering you a plan where the interest fee is less than 0.5%. A 0.5% is unheard of since most 403 b plans offer a fee rate of 1.25%-2.75%. You might be thinking the fee rate of 1.25%-2.75% seems low but trust us, a 1.25% fee rate over 30 years will amount to more than $200,000 to $300,000 dollars. That’s $200,000 to $300,000 dollars that you will NEVER see. The financial advisors and financial institution will pocket that money. Robbery!
If you simply feel like there’s no other option for you and you feel as if you have to sign up for the 403 b plan then make sure to do your homework! Look for a mutual fund option that will charge you a low interest fee for the 403 b plan. Based on the IRS contribution guidelines for 2022, you can contribute a total of $20,500 to your 403 b plan. Since it’s a tax-deferred account, then your taxable income will also decrease. Remember, if your employer offers to MATCH your contributions, definitely accept the MATCH. When an employer offers to MATCH your contributions it’s FREE MONEY!
Honestly, if your employer is not offering to MATCH your contributions into a 403 b Plan, the best thing to do is to thank your employer and to hop on over to Fidelity, Vanguard, or Merrill Lynch and to open a self-directed Roth IRA! Invest into the S&P Index or Vanguard Index. Keep it simple! Deciding to open a self-directed retirement savings account may seem intimidating but you can always call their (Fidelity, Vanguard, or Merrill Lynch) toll free number and ask for guidance to open up a self-directed Roth IRA. Usually, a financial advisor will help you to open a self-directed retirement savings account online. The financial advisor might try to offer you a managed retirement savings account and so long as the fee is less than 0.5% than it certainly beats a fee of 1.25%- 2.75%. {More on the difference between self-directed and managed accounts in blog four}.
Until next time, Future Nursing Millionaires!
12/27/2022
Blog Post Four
Welcome back Future Nursing Millionaires! Today I will explain the difference between a SELF-DIRECTED RETIREMENT ACCOUNT VERSUS a MANAGED RETIREMENT ACOUNT. A self-directed retirement account is a type of retirement account, such as an individual retirement account (IRA) or a 401(k) plan, in which the individual investor has the ability to choose and manage their own investments rather than relying on a financial professional or a portfolio manager to make investment decisions on their behalf. This means that the individual is responsible for researching and selecting investments that they believe will help them achieve their financial goals.
A managed retirement account, on the other hand, is a type of retirement account in which a financial professional or a portfolio manager makes investment decisions on behalf of the individual investor. These types of accounts are often used by people who do not have the time or expertise to manage their own investments. The financial professional or portfolio
manager is responsible for researching and selecting investments that are appropriate for the individual's financial situation and goals.
Self-directed retirement accounts are typically more suitable for individuals who are comfortable taking an active role in managing their investments and have the knowledge and experience to make informed investment decisions. Managed retirement accounts are more suitable for individuals who prefer to delegate investment decision-making to a professional or who do not have the time or expertise to manage their own investments.
Until next time, Future Nursing Millionaires!
12/28/2022
Blog Post Five
A Recipe for Success {Inspirational Moment}
Welcome Back Future Nursing Millionaires!
This fifth blog is dedicated to a personal theme that I’m embarking on for 2023. I call it, “A recipe for success.” A recipe for success is a set of strategies, habits, or practices that have helped an individual achieve their goals or objectives. It can be applied to various aspects of life, including career, education, personal development, finance and more.
Here are some key elements that may be included in a recipe for success:
1. Set clear goals: It's important to have specific, achievable goals that you can work towards. Make sure your goals are SMART (specific, measurable, achievable, relevant, and time-bound).
2. Develop a plan: Once you have defined your goals, create a plan to achieve them. This might include breaking down your goals into smaller, more manageable tasks and setting deadlines for each.
3. Take action: Don't just sit and wait for success to come to you. Be proactive and take action towards your goals.
4. Stay focused and motivated: It's easy to get sidetracked or lose motivation. Stay focused on your goals and find ways to stay motivated, whether it's through setting rewards for yourself or finding a supportive community.
5. Learn from your mistakes: Don't be afraid to make mistakes – they can be valuable learning opportunities. When things don't go as planned, take the time to reflect on what you could have done differently and make adjustments for the future.
6. Seek out new opportunities:
Success often comes from stepping out of your comfort zone and trying new things. Keep an open mind and be willing to seize new opportunities as they arise.
Until next time, Future Nursing Millionaires!
12/31/2022
Blog Post Six
Welcome back Future Nursing Millionaires! Today I want to encourage all nurses to become more familiarized with the meaning of cryptocurrency and blockchain. And the importance of considering cryptocurrency as an invest opportunity. Yes, we have all heard of what’s happening with Sam Bankman-Fried and FTX but it’s important to see potential and opportunity even when there’s a sketchy current event clouding the potential of blockchain technology and cryptocurrency.
First of all, blockchain and cryptocurrency are often used interchangeably, but they are actually two distinct technologies.
Blockchain is a distributed database that allows multiple parties to record and verify transactions without the need for a central authority. It is a decentralized, secure, and transparent way of storing and recording data.
Cryptocurrency is a digital asset that uses blockchain technology to facilitate secure financial transactions. It is decentralized, meaning that it is not controlled by any government or financial institution. Cryptocurrencies use cryptography to secure their transactions and to control the creation of new units.
In a nutshell, blockchain is the technology that underlies cryptocurrency and allows it to function, while cryptocurrency is a digital asset that uses blockchain technology to facilitate financial transactions.
Cryptocurrency has the potential to change the world in a number of ways. Some of the ways that it could impact society include:
Financial inclusion: Cryptocurrencies allow people to send and receive payments without the need for a bank account or credit card. This could enable more people around the world to participate in the global economy.
Decentralization: Cryptocurrencies are decentralized, meaning that they are not controlled by any government or financial institution. This could lead to more transparency and reduced dependence on central authorities.
Security: Cryptocurrencies use advanced cryptographic techniques to secure transactions and prevent fraud. This makes them a secure and potentially more reliable alternative to traditional payment methods.
Speed: Cryptocurrency transactions can be processed quickly, allowing for near-instantaneous transfers of funds.
Some of the most recognized cryptocurrencies are Bitcoin, Ethereum and Litecoin. Of course, I have to shout-out DogeCoin because you never know which of my readers has Diamond hands.
Disclaimer: Cryptocurrencies are highly volatile and carry a high level of risk, so it is important to do your own research and understand the risks before investing. If you do decide to invest, it is important to only invest what you can afford to lose.
Until next time future nursing millionaires!
Cheers to a NEW YEAR 2023
02/20/2023
Seventh Blog Post
Welcome Back Future Nursing Millionaires! I recently read an article published by CNBC where Charlie Munger called Cryptocurrency ‘crazy, stupid, gambling’ and said ‘people who oppose my positions are idiots.’ If you don’t know who Charlie Munger is well now you will. After all, its important to know all the people who influence the US dollar. In a nutshell, Charlie Munger is a man who simply doesn’t understand technology. STRAIGHT FACE <LOL>
Charlie Munger, the vice chairman of Berkshire Hathaway, has made headlines for his dismissive comments about blockchain technology and cryptocurrency. However, it is important to understand that his skepticism is not well-founded and may actually hinder the future development of the internet.
First, it is crucial to recognize the potential of blockchain technology. Blockchain is a decentralized digital ledger that records transactions in a secure and transparent manner. This technology has already been applied to industries such as finance, healthcare, and logistics to improve efficiency, security, and accountability. As the internet continues to expand, blockchain technology will become increasingly necessary to support and secure its infrastructure.
Furthermore, cryptocurrency is a natural extension of blockchain technology, allowing for secure and decentralized transactions without the need for intermediaries such as banks. While cryptocurrency is still in its early stages, it has the potential to revolutionize the way we exchange value and conduct business online.
Despite these benefits, Munger has expressed his disdain for both blockchain and cryptocurrency, calling them “rat poison” and “turds” respectively. However, his criticism is based on a limited understanding of these technologies and their potential applications.
Munger has also expressed concern about the environmental impact of cryptocurrency mining, citing the significant energy consumption required for the process. While it is true that some cryptocurrencies such as Bitcoin have a high energy consumption, this issue can be addressed through the development of more efficient mining methods and the adoption of renewable energy sources.
In addition, the potential benefits of blockchain technology and cryptocurrency far outweigh the environmental concerns. The increased efficiency and security of transactions can lead to cost savings and reduce the risk of fraud and cyber attacks.
Therefore, it is important to recognize that blockchain technology and cryptocurrency will be crucial for the future infrastructure of the internet. While Charlie Munger’s skepticism is understandable, it is not based on a thorough understanding of these technologies and their potential applications. As the internet continues to evolve, it is crucial that we embrace and develop these technologies to ensure a secure and efficient digital future.
To read the CNBC Charlie Munger article click the following link: Charlie Munger Says You're an Idiot
If there’s one thing that’s guaranteed in life is that history typically repeats itself. We can’t forget how multiple Billionaires, including Charlie Munger, were skeptical about the potential of the internet during the DOT COM era in the 90’s and early 2000’s. Skeptics generally had concerns about the sustainability of the rapid growth of internet-based companies and the viability of their business models. There were concerns that the internet's explosive growth might not continue indefinitely, and that consumer demand could eventually plateau. And since the internet was still relatively new, the billionaire skeptics questioned whether it had the technical infrastructure to support the massive amount of traffic it was experiencing. All aforementioned skepticism and concerns from the DOT COM era were proven wrong.
Perhaps Charlie Munger is a genius, maybe he is trying to instill fear against cryptocurrency so that he and his billionaire friends can remain filthy rich with FIAT US dollars and or purchase a majority of the cryptocurrencies. Either way, Charlie Munger still thinks you’re an idiot if you oppose him. Oh capitalism at its finest <LOL>
Until next time Future Nursing Millionaires!
02/21/23
Blog Post Eight
Welcome back Future Nursing Millionaires! Now I know I’ve been calling you all future millionaires but I think a friendly reminder is needed at this point. I know that becoming a millionaire might seem like an impossible dream right now. You may feel like you're stuck in your current situation, struggling to make ends meet, and wondering if financial abundance will ever be within your reach. But I want to tell you that it's absolutely possible for you to become a millionaire, and I believe that you have what it takes to make it happen.
First of all, I want you to know that you're not alone in your struggles. Many people face financial challenges and setbacks throughout their lives, but the difference between those who become millionaires and those who don't is their mindset and their willingness to take action. You have the power to change your circumstances, and it all starts with believing in yourself and your ability to create a better future.
Next, I want to encourage you to focus on your strengths and passions. Think about what you're really good at and what you enjoy doing, and find ways to turn those skills and interests into sources of income. This might mean starting your own business, freelancing, investing in stocks or real estate, or pursuing a career that aligns with your values and goals. Whatever path you choose, make sure it's something that you're truly passionate about, because that will give you the motivation and drive to push through any obstacles that come your way.
Of course, becoming a millionaire requires more than just passion and determination. You'll also need to educate yourself about personal finance, investing, and entrepreneurship. This might mean reading books, attending seminars, or seeking out mentors who can guide you along the way. Don't be afraid to ask questions or seek out help when you need it – the most successful people in the world didn't get there alone.
Finally, I want you to remember that becoming a millionaire isn't just about accumulating wealth – it's about creating a life that's fulfilling and meaningful to you. Money can give you the freedom to pursue your passions, travel the world, help others, and create a legacy that will last for generations. So don't be afraid to dream big and go after what you really want in life.
I believe that you have what it takes to become a millionaire. It won't be easy, and there will be challenges along the way, but with the right mindset, skills, and support, you can achieve financial abundance and create the life you've always wanted. So go out there and make it happen – I'm rooting for you!
When in doubt, take time to think about at least 3 things you are truly grateful for. Be intentional.
Until Next Time Future Nursing Millionaire!
03/13/2023
Blog NINE- Tides Turn- Big Banks vs Cryptocurrency
It was a dark day for the Crypto industry when Silicon Valley Bank announced its closure. Many people were left wondering what could have possibly caused the demise of this once-great institution. As a team of investigative financially literate nurses, we dug deep into the matter and uncovered some shocking truths about the underlying reasons for the bank's closure.
According to our sources, the bigger banks had been eyeing the crypto market for quite some time. They saw the potential in this new form of currency, but they also saw it as a threat to their own dominance in the financial sector. They knew that if the crypto market gained more traction, their power would be significantly diminished. Therefore, they decided to take matters into their own hands and swindle their way into the crypto market.
One of the easiest ways for the bigger banks to gain a foothold in the crypto market was to acquire smaller regional banks that had already established a presence in the industry. Silicon Valley Bank and New York’s Signature Bank were such institutions that had made a significant impact in the crypto market. The bigger banks saw this as a perfect opportunity to eliminate the competition and strengthen their own position in the market.
However, the bigger banks did not stop at just acquiring smaller regional banks. They also engaged in various underhanded tactics to undermine the credibility of these banks. They spread rumors about the financial instability of these banks, created false narratives about their involvement in illegal activities, and even orchestrated cyber-attacks to disrupt their operations.
As a result, many of these smaller banks, including Silicon Valley Bank, were forced to shut down their operations. The bigger banks had successfully eliminated the competition and strengthened their own position in the crypto market. But at what cost?
The closure of Silicon Valley Bank and Signature Bank had a significant impact on the crypto industry. Many people lost their jobs, and countless investors lost their hard-earned money. The closure also sent shockwaves through the industry, as people began to question the legitimacy of the crypto market.
However, despite these setbacks, the crypto market will continue to thrive. The bigger banks may have thought that they could destroy the crypto market by eliminating their competition, but they are wrong. The crypto market was built on the principles of decentralization and resilience. It was designed to withstand attacks from outside forces and to adapt to changing circumstances.
Therefore, the closure of Silicon Valley Bank is not the result of financial instability or illegal activities (Most banks have unrealized losses in their portfolio). It was a calculated move by the bigger banks to eliminate the competition and gain a larger share of the crypto market. While they may have succeeded in the short term, the crypto market has proven to be stronger than they anticipated. As the crypto market continues to grow and evolve, we can only hope that the bigger banks will recognize the value of this new form of currency and work towards building a more collaborative and equitable financial system for all.
Until next time Future Millionaire Nurses!
Signing off is this small group of nurses who know that the truth will always prevail. We save lives one day at time, and save/make money along the way to someday fix our healthcare system. The goal is not self-interest but a greater good for mankind.
03/22/2023 Part 1
Blog Ten- The Feds Have Done it Again!
Well, well, well, looks like the Federal Reserve has decided to increase the interest rates again. It's like they're trying to make life more challenging for consumers. Now, not only do we have to deal with the challenges of daily life, but we also have to pay more for the privilege of borrowing money. It's like they're trying to make us all professional tightwads or something.
With higher interest rates, everything becomes more expensive. That means if you're looking to buy a new car, take out a loan for a house, or even just put something on a credit card, you're going to be shelling out more dough. And let's not forget about our savings accounts. With interest rates on the rise, it's getting harder and harder to make any real money from our hard-earned savings.
But hey, at least we can take comfort in knowing that the Feds have our best interests at heart, right? I mean, who needs a little extra cash anyway? We'll just have to learn to be more creative with our finances. Maybe we'll start bartering for goods and services or finally figure out how to make our own clothes. Or maybe we'll just resign ourselves to a life of penny-pinching and ramen noodles. Thanks again, Feds! Time to buy more Bitcoin.
Until next time Future Nurse Millionaire!
03/22/2023 Part 2
BLOG ELEVEN-FEDS CAN’T BEAT INFLATION
Since inflation is anywhere between 9% and 15%, yes I said 15%…if that’s shocking, you are in for a surprise to learn that we are losing the fight against inflation even with the FEDS, Federal Reserves, increasing interest rates.
You might be wondering how does increasing interest rates help to decrease inflation. Well, when interest rates are increased, borrowing becomes more expensive, and this can lead to a decrease in consumer spending and investment. When people and businesses spend less, demand for goods and services decreases, which can lead to a decrease in prices and, ultimately, inflation.
In addition to reducing spending, an increase in interest rates can also cause a decrease in the money supply. This is because higher interest rates make it more attractive to save money in interest-bearing accounts, such as savings accounts or bonds. As people and businesses save more money, there is less money circulating in the economy, which can also lead to a decrease in prices and inflation.
Unfortunately, since we are losing the fight against inflation… the thought is we might end up experiencing a GINORMOUS market crash instead of a soft landing to ease us out of this massive ballon of debt and inflation.
Save your funds and Buy more Bitcoin. Prepare for the worse, to take advantage of the sales once the market crashes.
Until next time Future Nursing Millionaires!
03/23/2023
Blog Twelve- Stocks
Today, we will discuss STOCKS! We know Cryptocurrency is the future, but we want nurses to at least know what the stock market has to offer.
The thought in the 20th Century and even into the 21st Century (for now) was that Stocks is one of the most popular ways to grow one's wealth. A stock represents a share of ownership in a company, and when someone buys a stock, they become a partial owner of that company. The value of a stock is based on a number of factors, including the company's financial health, its future growth potential, and overall market conditions. In this blog, we will explore the ins and outs of investing in stocks, including the benefits and risks.
Part 1: The Benefits of Investing in Stocks
The first and most obvious benefit is the potential for capital appreciation. As a company grows and becomes more profitable, its stock price can increase, allowing investors to make a profit when they sell their shares. This can be a particularly lucrative opportunity for long-term investors, who have the patience to hold onto their stocks for years or even decades.
Another benefit of investing in stocks is the potential for dividend income. Many companies pay dividends to their shareholders, which can provide a steady stream of income for investors. Dividends are typically paid out of a company's profits, so they can be a good indicator of a company's financial health.
By investing in a variety of stocks across different industries and sectors, also known as diversification, investors can reduce their overall risk. This is because if one stock or sector experiences a downturn, the investor's portfolio may still be protected by other stocks that are performing well.
Finally, investing in stocks can provide a sense of ownership and involvement in the companies that are driving the economy. By investing in the companies that are creating products and services, investors can help to drive innovation and growth.
It is said for non-finance experts who simply want to quickly invest in a reliable stock with little effort, the best stock to invest in is the S&P 500 (ex: SPY or VOO). The S&P 500 is a stock market index that measures the performance of 500 large publicly traded companies listed on U.S. stock exchanges, such as the New York Stock Exchange and the NASDAQ. It is considered one of the best indicators of the overall health and performance of the U.S. stock market. On average, if you analyze the S&P 500 most investors gain 7 to 10 percent each year for their investments. In other words, the thought process in the last 70 years has been if an investor, YOU, consistently deposit $100 per month into the SPY or VOO, you would retire as a millionaire at 65 (That’s only if you began the monthly deposits at age 25, but if an investor started to invest in Stocks at a later age, an increase in monthly deposits would be required like $300 to $500 per month depending on the investor’s age). Do your research before you invest!
Part 2: The Risks of Investing in Stocks
While there are many benefits to investing in stocks, there are also risks that investors should be aware of. The first and most obvious risk is the potential for losses. If a company experiences financial difficulties or its stock price drops, investors can lose money on their investment.
Another risk of investing in stocks is the potential for volatility. Stock prices can fluctuate wildly based on a number of factors, including news events, economic indicators, and company announcements. This can make it difficult for investors to predict the performance of their investments.
Investing in individual stocks also carries the risk of concentration. If an investor puts all of their money into one stock, they are exposed to the risks associated with that one company. This is why diversification is so important for reducing overall risk.
Finally, investing in stocks requires a certain level of knowledge and expertise. Investors need to be able to analyze financial statements, assess market conditions, and stay up-to-date on news and trends that could impact their investments. For many people, this can be a time-consuming and challenging task.
We still believe cryptocurrency is the future, but it doesn’t hurt to understand the stock market and how previous generations (and some current millennials and gen Z) use the stock market to grow wealth.
Until next time Future Nursing Millionaires!