A Note on Perseverance

The Miriam Webster dictionary defines perseverance as “continued effort to do or achieve something despite difficulties, failure, or opposition : the action or condition or an instance of persevering : steadfastness

Borrowed from Latin perseverant-, perseverans : persisting in a course of action, steadfast,”

I recall a message that resonated with me when I first read The Art of Contrary Thinking; author Humphrey B. Neill speaks to the resolve that will be necessary when one holds a contrary opinion as years may pass by and you will repeatedly hear others tell you every reason why your opinion is wrong or ridiculous.

I can only say now that I immediately assumed due to their unlikelihood, others would perceive my goals impossible. We have high ambition and though our goals may seem unlikely, predicting the future with any specificity is typically just about as good as flipping a coin… typically.

6 Reasons to Rollover Your 401(k) to an IRA

  1. If you’re not an active employee many 401(k) plans charge higher fees which can eventually $0.00 the account
  2. Rolling over your balance to your new employers 401(k) plan limits your investment options
  3. Cashing out may cost you a 10% early withdrawal penalty, be subject to taxes and your previous employer will withhold 20%
  4. Many 401(k) plans prohibit loans if the account holder is no longer an employee
  5. You can contribute to a traditional or Roth Individual Retirement Plan (IRA) even if you participate in your employers or business retirement plan*
  6. Contributions may be made to established individual retirement accounts until the IRS tax filing deadline while contributions to an orphaned 401(k) are prohibited
ProductMaximum Annual Contribution Limit
Traditional IRA & Roth IRA$6,500, plus $1,000 catch-up if 50 or older (Limit is for the total contributions to all traditional or Roth IRAs)
Traditional 401(k) & 403(b)$22,500, plus $7,500 catch-up if 50 or older
Roth 401(k) & 403(b)$22,500, plus $7,500 catch-up if 50 or older
457$22,500, plus $7,500 catch-up if 50 or older; potential for additional catch-up when approaching retirement
Thrift Savings Plan$22,500, plus $7,500 catch-up if 50 or older
SEP IRA25% of your self-employment net earnings, up to a cap of $61,000
SIMPLE IRA$15,500, plus $3,500 catch-up if 50 or older
Source: FINRA.org

*traditional IRA contributions may not be fully deductible and Roth IRA contributions may be limited by your modified adjusted gross income

Happy 2023!

As we move into a new year we might consider this an opportunity to review our behavior from last year, identify where there is room for improvement and either adjust or set new goals for the coming year.

Be honest with yourself and total the dollars you spent dining out, on alcohol and cannabis. Don’t chalk it up to entertainment and move on. Look at the number, say it out loud and consider the opportunity cost. Carry on.

Something we can all do this year, if you haven’t already is purchase a fireproof safe and protect your important documents.

May 2023 be an improvement upon your best year!