7 Awesome Lessons from the Richest Man in Babylon

7 minutes

http://www.thesimpledollar.com/wp-content/uploads/2006/12/richest_man.jpg
http://www.thesimpledollar.com/wp-content/uploads/2006/12/richest_man.jpg

“A part of all I earn is mine to keep. Say it in the morning when I first arise. Say it at night. Say it every hour of every day. Say it to yourself until the words stand out like letters of fire across the sky.”

George S. Clasen, The Richest Man in Babylon

One of my favorite quotes from one of my favorite books on finance that I have ever read. It sums up all that is important in saving for retirement and how to look at money in your life.

This week we are going to venture off our path a little to discuss a book that has had a huge impact on my life, as well as countless others.

The Richest Man in Babylon was written and published in 1926 and has gone on to become one of the classics in personal finance. Through stories set in ancient Babylon using parables, they set about teaching seven steps to financial freedom.

It uses seven parables to teach thrift, financial planning, and personal wealth. It is written in a style reminiscent of the Bible in its simple, easy to understand writing. It is not a long, dry book that you would associate with finance but an easy to read and understand. Frankly, I read this is about two days. It is very hard to put down and is very fascinating. It really opens up your eyes to what is possible.

I wish this had been taught when I was in school as a younger man, as it would have opened up many more ideas on how to deal with and handle money. I can’t stress enough how much this book as impacted my life and inspired me to branch out from the standard of just saving money to save it.

Alright, let’s start talking about the parables and how they can improve your life.

Lesson 1. Start thy purse to fattening.

Continue reading “7 Awesome Lessons from the Richest Man in Babylon”

10 Revealing Questions to Share Benefits of the SEP IRA

6 minutes

Eggs in a basket savings. Photo by 401kcalculator.org
Eggs in a basket savings. Photo by 401kcalculator.org

What is a Sep IRA?

A Sep IRA stands for simplified employee pension plan which allows an employer to have a simplified way to contribute to an employee’s retirement plan. It also allows them to contribute to their own retirement savings.

Contributions are made to an IRA or Annuity IRA for each employee who participates. This is a SEP IRA.

A SEP IRA account is a Traditional IRA and has the same investment, distributions, and rollover rules as a Traditional IRA.

10 Questions

1. What are the best SEP IRA plans?

As SEP IRAs are considered Traditional IRAs by the IRS. And they have to be set up by your employer the clear answer is a Traditional IRA.

This also means that it will have to same rules in regards to contributions, distributions, and tax related benefits. We discussed these in an earlier post.

Also, any plan that you contribute to is a great plan. The point of all this is to show you the light and help you take action.

2. Can I open a SEP IRA?

If your w2 income comes from that employer then you will need to participate in their retirement plan. If they are small enough they may have a SEP IRA plan for you to participate in.

You also can open up your own Traditional or Roth IRAs as well.

Continue reading “10 Revealing Questions to Share Benefits of the SEP IRA”