Wealth Management
AN ULTIMATE GUIDE TO TURNING YOUR EARLY RETIREMENT DREAM INTO A REALITY
Published
3 years agoon
By
admin
Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning firm based in Goodyear, AZ.
This article is for all those who are counting their IRAs, 401 (k), self-directed 401k and other retirement planning options to enjoy that late-life freedom as early as 45 or 40. Financial freedom at 55 has become a thing of the past because today it all depends on your ability to take the right decisions. If your 9 to 5 life has left you drained and you are serious about an early retirement, here are 8 ways to coach you from scratch:
- Free yourself from the vicious circle of debt
The first step to securing an early retirement is getting yourself free from debt. If you do not wish to enter your early retirement with any financial lags or large payments that can eat away a massive chunk of your modest savings, you need to increase your cash flow by clearing all your debts. Paying off your mortgage or lease early will help you divert the funds into a Roth IRA or other retirement savings.
- Start living a frugal life

Rick Pendykoski
Saving is the only way to increase the cash flow as your career progresses and this can be done by controlling your expenses. It does not mean giving up on all your desires but only requires you to live a frugal lifestyle. A few compromises and you can save a significant amount which will eventually bring you closer to your early retirement dream. From giving up on your expensive memberships and cutting down your HVAC usage to making a few compromises in your lifestyle and sacrificing a few golf games, your day-to-day frugal acts will free you from your cubicle and give you the freedom to retire early.
- Be open to the idea of changing
Prioritize between your wants and your needs. This will help you break free from the shackles of your tiring nine to five schedule. Enjoying life to the fullest sounds like a great idea to most of us, but it also means that you are losing on the real joy of retiring at 40 for momentary happiness. If fancy dinners and long drives in luxury cars mean more to you, an early retirement is obviously out of your reach. Mindful spending needs major lifestyle changes for which you may need to give up on stylish clothing, lavish parties, exotic vacations and more. This is only possible if you change your perception of conventional societal programming which demands that you give up on your desires of bigger houses and new cars. It calls for a complete mind shift from spending to saving.
- Take a head start with a high-paying industry
It is possible to retire well before you turn 60 if you are working for an industry that pays really well right from the start. A good-paying job plays a critical role in paving your path to a financially independent future. You too can enjoy a retirement of rest and relaxation if you are willing to take up personal responsibility in professional life. Getting closer to your goal of early retirement requires you to be self-sufficient early on in life.
- Automate 50% of Your Annual Income to Retirement Savings
Allocate as high a percentage of your annual income as possible to pay up your previous debts, pending bills, leases, and loans. Once you are done with of all these, automate your income towards retirement savings. You can start with 30% and raise the bar every year as your income increases. Every time you get a raise, increase the amount you add to your retirement reserve.
- Be sure to invest in a 401 (k) plan
Many employers are offering 401 (k) plans where you can invest a certain amount of your income and your employer makes a matching contribution to bolster your retirement savings.
- Stick to a frugal lifestyle
You need to revamp your investment plan as your career keeps progressing. What you want to achieve – an early retirement is an extraordinary goal and so your efforts should be focused on living frugally. Always keep a rewarding retirement at the top of your mind and you will remain motivated to keep the passion alive and pursuit kicking.
- Invest in an IRA
An IRA is a preferred and popular choice for retirement savings. You can consult an experienced and reputed financial advisor to guide you in selecting right IRA. An IRA will allow you to enjoy tax benefits if you choose to retire early. It will get to where you want faster than you think.
Start investing right away and make your retirement the best phase of your life.

Finance
Taxing times for online marketplaces? Operators must act now to avoid losing sellers
Published
3 hours agoon
June 9, 2023By
admin
By Niall Kiernan, Senior Director of Product Marketing, Vertex
In today’s digital landscape, online marketplaces are an enabler for many businesses to achieve their growth ambitions. From Amazon to eBay, Etsy to Vinted, businesses of all sizes are now utilising online marketplaces, and recent years has seen exponential growth in this area. Numerous factors, including the proliferation of mobile devices and widespread availability of high-speed internet, have resulted in this escalation. Combined with consumer demand for convenience, along with the impact of the pandemic, the success of online marketplaces can be seen in the numbers. In 2021, retail eCommerce sales amounted to approximately US$ 5.2 trillion worldwide. This figure is forecast to reach US$8.1 trillion dollars by 2026.
It is clear that online marketplaces are a vital source for businesses to continue to flourish but there are still major roadblocks which can hinder a business’ efforts to capitalise on the booming sector. According to research commissioned by Vertex, which surveyed 479 finance professionals globally, seven out of ten sellers using marketplaces to trade online believe that indirect tax challenges could deter them from using them again in the future.
The complexity of ensuring a frictionless eCommerce experience
Whilst over half of respondents in the survey agreed that marketplaces are getting easier to use as a sales channel, ensuring that both operators and sellers can enjoy a frictionless experience is one of the biggest challenges in the space. Respondents indicated that they are looking for more support and guidance on issues including: how to ensure transactions and the transfer of money can be more seamless (65%), tax liabilities (64%), and compliant invoicing (63%). But what are some of the specific roadblocks both marketplace operators and sellers are experiencing?
- The cross-border trade conundrum
85% of marketplace operators surveyed indicated that they are looking to increase their seller base, however there are numerous tax complications when trade crosses borders. Four out of seven operators stated they have struggled to manage tax liabilities and tax complexities around seller shipping locations. Online marketplaces are very much a global affair, with cross-border transactions being the norm.
The difficulty here is that both operators and sellers must comply with the different tax regimes of the countries they operate in, which can be a complex and burdensome process. Seller respondents reported a wide range of issues when they sell through marketplaces, including balancing their tax liabilities and knowing where and when they are liable for tax.
- Complexities in every step of a transaction
Dig beneath the surface and the process of a transaction is much more complex than initially meets the eye. From listing fees to shipping and handling charges, or the previously mentioned cross-border trade complexities, every step in the transaction process brings multiple challenges to both the operators and sellers themselves.
45% of sellers surveyed want their marketplace operators to improve the process of finance and tax automation to overcome these barriers, but of the operators, only 56% manage all tax liabilities on their seller’s behalf. If marketplace operators want to ensure they have a healthy population of sellers, this figure needs to increase.
Tax technology for a trouble-free tomorrow
Although there are clear and significant indirect tax challenges for online marketplaces, the space remains an attractive channel for businesses to achieve their growth ambitions. 81% of businesses are taking advantage of online marketplaces to attract new customers and sell into more countries and upon further inspection, they attribute this expansion into marketplaces to reach a wider geographical market (57%), to being more competitive (50%) and to tap into cross-border sales opportunities (48%). It’s clear that sellers are wanting to utilise online marketplaces to expand their customer base globally and if operators want to increase their seller base and take advantage of the growing demand for this, and 85% of those surveyed do, then they need to ensure that their platforms offer a seamless experience for their sellers.
By investing in an end to end tax management solution which can handle all types of indirect tax requirements, you will be able to support sellers on their own individual growth journeys. In addition, you can rest assured that it will also enable them to feel confident that their chosen platforms can meet all the indirect tax requirements as they increase their cross-border sales.
To learn more about the taxing times for the marketplace and seller relationship, download the latest report by Vertex.

Depending on your background, entering your 20s can be a bit of a precarious time. Among the things you’ll need to get to grips with is the idea of having your own money to spend. Whether you’ve just left education, or you’ve been in the world of work for a while, it pays to understand finance. The bad news is that your financial education, if you’re like most people, won’t have amounted to much. The good news is that you’ve spotted the problem early, and you can look to try to correct it.
You might put money aside in an ISA, or some other optimised savings account. You might, at this point, be looking around and wondering how you compare to everyone else (which is only natural). Research indicates that around 15% of people in the UK don’t have any savings at all, while 33% have savings of less than £1,500. If you’re young, then you’re more likely to fall into these brackets.
We should note, however, that not everyone’s starting from quite the same level. If you haven’t gotten a leg up from your family, then you’ll be at a disadvantage – but it needn’t be a lasting one, if you develop the right financial habits.
Make it a habit
Keeping your spending in check is a lot like keeping your weight under control, or learning a musical instrument. The things that you do every day without thinking will tend to add up to your long-term success or failure. Build the right financial habits, and you’ll be in good shape. Avoid frivolous spending. Ask yourself whether you really need a given product or service before you buy it. Don’t mistake an asset for a liability, and don’t kid yourself about the difference between the two.
Be realistic
You probably don’t want to waste your twenties by living a monastic lifestyle, especially if your friends are constantly going on holiday or going out in town. So, set yourself realistic limits. In some cases, you might be able to save on the necessities in creative ways. If the cost of learning to drive is prohibitive, for example, then you might look at learner driving insurance, and practicing in your own car.
Emergency funds
You never quite know what the future will hold – and you don’t want to have to sell anything when disaster strikes. If you do, then you’ll be forced to incur the costs an inconvenience that go along with selling. Think about how long you’ll be able to survive on the cash in your current account, and maintain the balance accordingly.
Saving goals
Your spending should ideally be goal-oriented. Think about what you’d like your credit score to look like, and think about how many cards you want to take out. If you think you’re going to have trouble keeping track of your funds, then you might look into budgeting apps that might help you out. As a benchmark, you might look at setting aside around ten per cent of your income for the future.
Retirement savings
While you might not be thinking about your retirement quite yet, it’s worth setting a little bit aside for this period in your life. It makes economic sense, as the government will inflate your savings by up to 25%, up to £4,000 saved every year. This lasts right up until you’re 40 – so, get saving now!
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