How to become a millionaire: first increase your income, and then also invest well.

The Forbes 400 list became wealthy because they made money utilizing their skills through a company in some way, or they inherited money from someone who did.

The key to wealth is to both first optimize your income, and then to also invest smartly.

 Reality allows us to see what is, and make changes for the better based on that reality.

The reality is you don’t get wealthy from earning 10% on your investment account unless you’re already quite wealthy.

Investing is one very important step in the wealth equation, but the first, fastest, and more enlightening way is to first increase your income, and then also invest well.

In today’s economic environment you cannot save your way to millionaire status. The first step is to focus on increasing your income in increments and repeating that.

The only reason to save money is to invest it.  Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even an emergency. This will force you to continue to follow step one (increase income). 

 Rich people use debt to leverage investments and grow cash flows. Poor people use debt to buy things that make rich people richer.

Bill Gates has said, "If you’re born poor, it’s not your mistake. But if you die poor, it is your mistake."

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401k fees that are too high are like pornography: You’ll know it when you see it.

A larger company with its own robust Human Resources department would most certainly rely on its own resources for certain plan services. 

However, all smaller companies with plans need to access some of the same services, for which they don’t have their own in-house resources. Those companies, in order to reduce fiduciary and likewise liability exposure should most certainly hire the services of a third party provider. 

Most plan sponsors in the under $50 million plan size range need help determining the options that best fulfill the needs of their employees and the budgets of their companies. Most employers need to rely on an independent third party to help offload some of the fiduciary responsibilities of determining which investment options are the most appropriate for their particular plan and employee team.

Most employers want and need someone to present to employees verbally and in-person the features, benefits and options provided in the plan. These services not only increase participation in the plan, but they also improve employee morale and satisfaction. For the value received from these services, many employers are willing to factor into their budgets the necessary costs. For many businesses, 401k plans serve as an incentive to retain and attract employees.

In a way, 401k fees that are too high are like pornography: You’ll know it when you see it. Given that, what’s an “appropriate” fee for any particular 401k plan? There’s only one correct answer to this question: “It Depends.”

Need help with your 401k plan for your small business?

Review your existing plan?

Call us at 813 964 7100 or visit us at www.MintcoFinancial.com

what is a 401k? Mark Cuban and 401k

A 401k is a private employer-sponsored retirement account that an employee may contribute to straight from their paycheck. With a 401k, workers can save and invest part of their paycheck before taxes are removed. In a 401k, employees can control how their money is invested. Typical investments include mutual funds that contain stocks, bonds and money market investments.

Employees choose a percentage of their salary to contribute to a 401k. This is called “salary deferral,” because this money that comes out of their check will be paid back to them with interest when they retire. Another incentive to sign up is that many employers match the employee’s contribution to their 401k with company funds.

And, Why Should I Have One?

Many people sign up for a 401k, because the employer match provides essentially free money that will be available in retirement. Financial planners suggest that an employee should contribute the maximum percentage allowed by their company to take full advantage of this incentive. 401k employer matches, which are chosen by each company, can vary from 50 percent to 100 percent.

Questions? Call us at Mintco Financial at 813 964 7100. Want to review your 401k? Rollover? Email us or call us at mminter@mintcofinancial.com

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