Category: Uncategorized

How to Get the Most Out of Your 401k

One of the best vehicles for building wealth is a 401(k) plan. Those who have employers who offer these plans should be happy, and should an employer offer to match some of the contributed funds, employees should be very happy. A 401(k) plan has tax advantages. For traditional plans, the contributions can cut a person’s taxable income. Roth 401(k) plans allow for tax-free withdrawals as long as the withdrawals take place after age 59 1/2.

Most workers can contribute $19,000 annually as of 2019 while those who have reached age 50 can add another $6,000 to their accounts. Maxing out an account might seem like a daunting task. However, with enough planning, it can happen. Here are some steps to take to max out a 401(k) account.

Take Advantage of Tax Breaks

By allowing for the deferral of taxes, a 401(k) plan provides tax efficiency. Every dollar that gets saved in a traditional 401(k) account is exempt from taxation in the current year. Therefore, a saver will get the full benefit of each dollar of income saved. For example, a person with a 22% marginal tax rate would be able to save more than 92% of each dollar in a 401(k) after accounting for FICA taxes while a person saving in an ordinary taxable account would be able to save only 70% of each dollar when accounting for FICA and income taxes.

Make Savings Automatic

Putting money into a 401(k) plan through direct deposit is the way to go. Those who never see the money hit their checking accounts will not be tempted to spend it. Additionally, people tend to adjust their level of spending in relation to how much they take home each month.

Increase Savings Incrementally

Many people will get performance bonuses or a cost-of-living increase in their paychecks. Those who find themselves in this position should use at least some of the extra income toward 401(k) savings. Over time, these increases will add up and make maxing out a 401(k) more likely.

Take on a Side Hustle

With a few exceptions, not every dollar of income has to come from one employer. By taking on a side hustle, it can be possible to increase income. This additional income should go toward saving rather than spending. When used properly, money from a side hustle could do much to offset 401(k) contributions from regular income. This could make maxing out a 401(k) much more feasible.

This article was originally published on YoussefKabbaj.com

Tips to Help You Start Your Own Philanthropy

Philanthropic giving is an idea that is gradually gaining traction in society today. Businesses and individuals are equally channeling more contributions and donations to charity. Charity organizations are also being founded for various causes, old and new. What does it take to establish a successful philanthropy?

Setting the foundation

The first step involves setting foundations that help govern the philanthropy. Just like in any other establishment, you must have a clear vision and goal or objective to achieve at the end of the day with your philanthropy. The goal gives you the focus in terms of who you intend to reach out to. All these should be put down on paper.

Incorporation

The second step involves incorporating the philanthropy as a legal entity within the society. The incorporation process may vary from state to state and country to country. You should endeavor to understand the legislation and legal requirements for establishing a charity foundation in your area. Among the universal steps in this process include setting an appropriate name for the group, drafting articles of incorporation, naming the board members, as well as paying the necessary fees for incorporation.

Setting financial guidelines

Every philanthropy operates as a non-profit organization. The organization, at this stage, should have a well-founded financial policy, which details important aspects as regards money. Some of the important areas to pay attention to in this regard include how the organization intends to raise funds and the distribution of funds across various channels of charitable projects in the society.

Internal administration and staffing

Another important area to ensure that your philanthropy runs smoothly is setting in place a strong internal administration. Whereas the philanthropy operates on a non-profit basis, it may be essential to bring onboard permanent employees for key positions, such as manager and accountant. The rest can be brought onboard on a volunteer basis. In either case, it is highly advisable to consider working with individuals who are passionate about charitable giving and who are willing to share in your vision.

Progress evaluation

After successfully launching the non-profit organization in the market, the last progressive step involves steering the philanthropy in the right direction to ensure it achieves its objectives. This is quite a tedious and intensive process, which requires commitment in terms of resources and time. Patience is necessary for the philanthropy to gain traction and realize meaningful goals.

This article was originally published on YoussefKabbaj.org

Staying Motivated at Work During the Holidays

Staying motivated in the workplace can be a challenge, especially during the holiday season. However, the show must go on. Regardless of your industry, it is essential to remain focused on your work and execute your responsibilities with efficiency. Even though you may be looking forward to enjoying the holidays this year, ensure that you have created a work life balance that allows you to succeed at work, while experiencing the joy of the season.

Organize Your Responsibilities

At the start of your day, write a list of all of your work responsibilities. By jotting down these essential tasks, you will be better able to manage your workload. Instead of multitasking, you can focus on completing one goal at a time. By doing this, you will avoid feeling overwhelmed by work duties in addition to holiday pressure.

Keep Work and Home Separate

Leave work at work. If you take your work home during the holidays, you will become less motivated during your regular workday. Instead, be sure to create boundaries between your professional and personal responsibilities.

Eliminate Distractions

Don’t shop online, while you are working. Leave the holiday gift shopping for when you are off the clock. Tell your family and friends to respect your work time, which means that you should avoid answering unrelated work texts, emails, calls and direct messages during work hours, according to Forbes. In addition, if listening to holiday music at your desk causes you to get distracted, change your playlist to instrumentals or choose a non-holiday music selection.

Set Deadlines and Rewards

It’s easy to fall behind during the holidays if you don’t prioritize. By creating and adhering to both soft and hard deadlines, you can prevent yourself from losing sight of your calendar and important tasks. Additionally, once you successfully meet your deadlines, you should treat yourself to a reward as an incentive. Be proud of your small and large accomplishments so you can maintain a high level of motivation throughout the season.

Communicate and Be Honest

If you think that you need more time on a project, communicate with your needs with your management. It is essential that your team understands what you need to be effective in your role. If the holidays typically present a more complex timeline with production or execution, you should always be honest to properly set and meet expectations. You should also communicate with your family and friends and be transparent about what you can and cannot accomplish during the holidays.

Even though the holidays can be tricky to manage, it is a wonderful time of year. If you set your mind to creating firm boundaries in your life, then you will be able to succeed at the workplace during this season. Your dedication to success could even motivate a coworker or two.

This article was originally published on YoussefKabbaj.net

Youssef Kabbaj Covers the Different Styles of Leadership

As a leader, it can be challenging to identify what style works best for you. You may have adopted a technique from someone that you worked under, or that you have heard or read about. If that style works, you tend to stay with it. However, based on your work environment and personality, it may not be the best approach. Having an understanding of different styles of leadership can help you to become a more effective leader.

Youssef Kabbaj is a leader in the financial industry, gaining invaluable experience by holding various positions with many of the world’s most well-known companies. With years of knowledge and insight as a leader, Youssef provides his expertise on the different styles of leadership.

Transformational Leadership

Transformational leaders work with their teams to identify needed change and motivate the process through inspiration. These leaders create an environment that promotes analytical thinking and questioning.

Servant Leadership

Do you always go above and beyond to address the needs of your team? Servant leaders always put the needs of others as a top priority. Servant leaders are not afraid to delegate power and help their subordinates perform at the highest level possible.

Transactional Leadership

These leaders value order and structure within their teams. Their followers are expected to be self-motivated and focus on results. This leadership style works best for employees who have clearly defined roles and are motivated by incentive systems.

Laissez-faire Leadership

These leaders give the least possible guidance to subordinates and believe that people excel best when they are left alone to respond to their responsibilities and obligations. The followers make their own decisions and rules.

Autocratic Leadership

Do you like to be in complete control of your team? Autocratic leaders take control of all decisions and little input from group members. This style can work best with smaller groups where leadership is non-existent.

Charismatic Leadership

If you have a strong and likable personality, charismatic leadership may be right for you. This style relies on effective communication and persuasion to drive desired behaviors.

Situational Leadership

This strategy is an adaptive leadership style. Leaders can choose the method that best fits their goals and environments. You’ll be able to build a rapport with others and bring out the best in them.

As you will experience in any industry you work in, each style of leadership is unique in the qualities that a manager can deliver for a team. Understanding the different leadership styles will allow you to implement your skills to get your team performing at its best.

Originally published on ThriveGlobal.com