Automatic Savings Plan

Finance allah shmoop What is a keogh plan Well basically

it's an ira for self employed people and more or

less like have your own company your own llc Well

then you probably want to sock away some dough without

paying taxes today betting that you'll want to pay him

instead Tomorrow if ever knock on the door of keogh

plan central and you'll save your way to prosperity Sort

of lungs You invest the money well in the market

Well basically the keio works just like an ira If

you makes a hundred grand a year and you pay

thirty five percent tax on that last ten grand that

you make or thirty five hundred box well instead you

could put that ten grand into a keogh plan invested

for however many years until you're an old geezer Think

seventeen and a half plus And hopefully that ten grand

grows a whole lot in an index fund or something

like that Because the market doubles about every seven eight

nine ten years something like that And then when you're

not working i'ii earning ah whole lot less money Well

then you can start withdrawing that money from your keogh

Plan You pay something more like i don't know twenty

percent in taxes at that point because you're taking lesson

pay than you did when you were accumulating wealth like

that thirty five percent So while the fuss to save

just fifteen percent net difference in taxes at thirty five

minutes Twenty there Well it's not that much fuss A

few forms you fill out of filing here and there

and well that's kind of it You go buy an

index fund and sit but more to the point it's

a day discipline That is when you have this wonderful

allure of saving taxes well for most people it's enough

of an incentive to actually save money rather than spend

it and that's a good thing to dio So you

don't end up like this guy living in his suv 00:01:46.432 --> [endTime] you know down by the river