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September 6, 2018 at 2:25 pm

McMillan Quoted on Six Steps to Financial Independence

Alan J. McMillan, shown here in a portrait shot

Alan J. McMillan

Alan J. McMillan, who teaches CAS 2402X: Transitions – From Campus to Career Success to Wealth Creation & Protection at OHIO, was quoted in a Hubspot story headlined “How to Achieve Financial Freedom at Last.”

Alan J. McMillan, a professor at Ohio University and founder of LearnEarnRetire, has defined six steps for increasing your assets on your way to financial independence. Here they are:

As with all financial planning, it’s best to start early in your career and avoid debt. After that, follow these six steps to establish a firm financial by the end of your career.

Step 1: Set Your Initial 401(k) Contribution (percentage of income)

When you join a new organization, you’ll have the option of joining their 401(k) or 403(b) (for nonprofits or public teaching organizations) plan. Some companies will automatically opt you in with a default contribution percentage. Take command of this moment with a predetermined percentage of contribution.

If your employer does not offer a 401(k) or IRA (Individual Retirement Plan), contact an outside investment advisor, create a retirement account, and have your bank make automatic deposits into that account every month.

If you’re working with a 401(k) through your company, the key is to take advantage of employer match, when available. A typical amount is 100% of the first 6% you invest.

That means for every dollar you contribute to your 401(k), the employer matches you. Some deviate from this and will match, say, 50% of your first 6%. Your priority should be to get to the top of the match.

My suggestion is to begin with a 6% contribution. Be aggressive in what you allocate and learn to live with long-term funding at this level. You’ll see why in a moment.

Read the rest of his six suggestions at Hubspot.

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