Posted by Jessc098 on 2/23/09 9:24pm
Msg #278522

For those who wish they had a 401K

If you're self employed and missing the 401K and automatic savings programs that employers offer, I've found a cool new product! It's called "SmartyPig." (I don't work for them and I'm not being paid to post this here! I just find it handy for my business and thought you may like it for yours)

It's a "transaction engine." Essentially, you set up your savings goal (like that $5,000 IRA contribution you can make every year--or is it $4,000...i'm never sure) and it automatically withdraws on the date you choose the required amount and puts it into a savings account.

It's a very cool thing. I've just started using it and I'm loving the convenience! There's a link to an article about it from my freelance web site (I'm also a freelance writer) at www(dot)jessicaward(dot)me.

Reply by Susan Fischer on 2/23/09 10:38pm
Msg #278528

Ohhh, now there's a goal: I don't have an IRA, 401K, but

I do have a savings - ING Direct, but only because they paid great interest, but thanks to this discussion, I'm going to transfer to my Credit Union. since savings interest is bleah where ever you go. I'm into 'getting local.' -^^-

But, back to no-retirement, since "Dang, I forgot to have a career," I'm looking at Social Security this July. So, since it's a little late for me to amass a nestegg, I think I'll stay with the blitz on the smart car. I can still work some/volunteer some, and do ok until I don't wanna/hafta anymore.

But, listen up, youngin's - pay attention to the old farts and fartesses. Saving for Retirement is a 'mandatory' goal, but has proven risky, as now we plainly and painfully see, but there are still good, solid local banks, and (I love) Credit Unions (best,) and various carefully researched Investment People, and myriad other planning options out there.

Thanks, Jessc098 - I'm off to check out your site!

Reply by Jessc098 on 2/23/09 10:47pm
Msg #278531

Re: Ohhh, now there's a goal: I don't have an IRA, 401K, but

Absolutely Susan!! I hope you like it as much as I have. SmartyPig's interest rates are AWESOME (they use West Bank). I think you'll find them comporable with ING's "Orange" account.

Also, I've been writing on microfinance a lot, and Microplace is offering a two-year note that erns 5%. Pretty cool to be investing in microloans that lift people out of poverty and earning decent interest. It's a 2 year note with 5% interest, minimum to invest is just $20.

I'm having a blast with some of these microfinance programs. I'm a "youngun" myself as you say... not yet 30, but I've studiously saved for retirement for all of my working career (I started working at 16 and am just now 28). What have I got to it? Lost 1/2 my 401k and got laid off from my 9 to 5 in 2008. Pretty lousy year.

That said, this year I'm willing to take more risks, and it's paying off handily. I've invested in microloans and microcredit (though not with EVERYTHING that's left in my 401k, I'm still being reasonable), and I'm going whole-hog into self-employment.

Remarkably, just 1 month after my layoff I was able to pinch pennies around the house (little "tweaks" that are now saving us MORE than what I made every month at my corporate job. Go figure.). Call and have my cable "rebundled" ask for lower interest rates on credit cards, etc.

Another GREAT web site that I personally love is mint (dot) com. It's an "aggregator" you can link all of your credit cards, car loans, home loan, assets, and accounts to it and see what's going on. It's also great for creating a budget and sticking to it.

I get a text message on my cell phone every time one of our monthly budget categories has been exceeded. Very very easy. 10-12 minutes per week maintenance for our family of four.

Jessica