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I didn't learn about investing growing up so I was thrilled to read "The Simple Path to Wealth." Thanks to the book, I'm now on the path towards FIRE — financial independence/retire early. I'm thankful that, in 2017, I was able to read a book called "The Simple Path to Wealth." Here's what "The Simple Path to Wealth" taught me about managing money and building wealth. For me, "The Simple Path to Wealth" has demystified the purpose and process of building wealth in America.

Persons: Collins, I'm, —, JL Collins, I've Organizations: Service, Pew Research, FIRE, Vanguard, Market Index Locations: America

I wanted to save more for retirement but needed $3,000 to invest in my chosen index fund, VTSAX. To save that money in two months, I started by selling items online and looking for windfalls. I sold stuff onlineWhenever I need extra money super quickly, I often turn to selling used items online. I saved my windfallsWindfalls are basically extra money, but I rarely ever just spend the unexpected cash without a strategy. Two months really flies by, and while $3,000 isn't a small amount to fork over, it was a nice start to help diversify my retirement savings.

Persons: —, Read, it's Organizations: Service, Vanguard, Market Index, Facebook Locations: VTSAX

☆ A financially independent 32-year-old who grew up in a cash-strapped household shares the simple but life-changing money advice he received from a high school teacher
▼ + stars: | 2023-10-04 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +6 min

Without the encouragement of his teacher, he wouldn't have started investing as early as he did — and may not have even started at all. One of the most popular passive investing approaches is to buy an index fund. Insider has spoken to a handful of investors who have used index investing to build wealth . More than 95% of their stock-market money is in three index funds : the Vanguard Total Stock Market Index Fund ( VTSAX ), the Vanguard Total International Stock Index Fund ( VTIAX ), and the Vanguard Emerging Markets Stock Index Fund ( VEMAX ). But she learned through trial and error that investing in index funds is simple and effective.

Persons: Erik Smolinski's, Smolinski, wouldn't, He's, Erik Smolinski Smolinski, , that's, Brennan, Erin Schlagbaum, Chloé Daniels, That's Organizations: Apple, Netflix, Microsoft, Market Index, Vanguard, Index

☆ A fashion designer who retired at 36 after investing in stocks shares the 3 funds she holds and the 4th she's now aggressively buying that's up by over 580% since inception.
▼ + stars: | 2023-08-19 | by ( Laila Maidan | ) www.businessinsider.com time to read: +5 min

Rachel Covert aggressively invested for seven years to build a retirement portfolio. Her large salary and aggressive budgeting allowed her to build an almost half-a-million-dollar retirement portfolio, according to financial statements viewed by Insider. For this reason, the majority of her retirement portfolio sits in the Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX). This was the best choice for an aggressive growth fund. Her goal was to increase her exposure to more volatile technology growth stocks.

Persons: Rachel Covert, Roth, Covert, I'm, Investopedia Organizations: Vanguard, Market Locations: New York, Portugal, QQQ

There are multiple types of index funds, including:Broad market index funds: Index funds that try to track the overall performance of an entire asset class throughout the entire stock market. Fixed-income and debt index funds: Index funds that track bond indices for low expense ratios. International index funds: Index fund that invests funds in assets outside of the US. Sector-based index funds: Index funds that invest funds in a specific sector of the market, such as technology or even certain company services. Socially responsible index funds: Similar to sector-based index funds, socially responsible index funds invest specifically in companies that focus on environmental, social, and governance (ESG) services.

Persons: Warren Buffett, It's, Julian Schubach, Louis, Ameritrade, Charles Schwab, you've, Schwab Organizations: Service, Independence, US, Rutgers, Nasdaq, Nasdaq Stock Market Dow, NYSE, New York Stock Exchange, U.S, Federal Reserve Bank of St, Market, Fidelity, Vanguard, Chevron Locations: Wall, Silicon, Chevron

☆ A millionaire couple in their 30s has 3 investing accounts set up for their 2-year-old daughter — and one for a baby on the way. Anyone can open one to help their kids get a head start on investing.
▼ + stars: | 2023-07-23 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

They have three investment accounts for their 2-year-old daughter, including a 529 plan. Insider reviewed screenshots of their investment accounts that showed these details. Brennan walked Insider through the investment accounts they've already opened for their kids. With a custodial Roth IRA, a "custodian" (usually a parent or grandparent) controls the Roth until the child reaches legal adulthood. While there are no age requirements to open a Roth IRA for a child, the child must have earned income.

Persons: Brennan, Erin Schlagbaum, Erin, Rowe Price, that's, Roth, she'll Organizations: Google, YouTube, IRS, Fidelity, Vanguard, IRA

☆ A couple in their 30s that hit a net worth of $1 million have more than 95% of their stock portfolio invested in 3 index funds and the rest in one individual stock. Take a look at their portfolio.
▼ + stars: | 2023-07-13 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +7 min

Once they were debt-free, they went all-in on index funds. But once they were debt-free and in the position to start investing, they went all-in on index funds. He selected three specific index funds to invest in: the Vanguard Total Stock Market Index Fund (VTSAX), the Vanguard Total International Stock Index Fund (VTIAX), and the Vanguard Emerging Markets Stock Index Fund (VEMAX). Courtesy of Brennan and Erin SchlagbaumMore than 95% of his and Erin's stock market money is in one of these three funds. There are three things that wealthy people invest in: the stock market, business, and real estate.

Persons: Brennan, Erin Schlagbaum, That's, He's, Brennan Schlagbaum, Schlagbaum, it's, Crypto, Brennan Schlagbaum Schlagbaum Organizations: CPA, Market Index, Vanguard, Index, SEC Locations: Arlington , Texas, Texas

☆ A couple in their 30s that paid off their $234,000 mortgage in 5 years and hit a net worth of over $1 million explain how they invest their money and why they only keep $10,000 in their checking accou
▼ + stars: | 2023-02-10 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +6 min

Brennan and Erin Schlagbaum went from being deep in debt to a net worth of over $1 million. They also have two health savings accounts (HSAs), which let them contribute pre-tax dollars for health costs but can also be investment accounts and used to supplement their retirement accounts. Note that these accounts are called "taxable" because your investment income is subject to capital gains taxes. Accounts for their daughterBrennan and Erin have opened three investment accounts for their 16-month-old daughter: a Roth IRA, a brokerage account, and a 529 plan. The Schlagbaums have opened various investment accounts for their daughter.

But I wiped out my emergency savings years ago and have no regrets. I did that for quite a while, but I depleted my emergency fund a few years ago and have never, ever looked back. My savings account is earning 0.40% APYI opened a CIT Bank account specifically for my emergency fund several years ago, mostly because the interest rate was over 2% at the time. By and large, this is the main reason I depleted our emergency fund. We have multiple income streamsFinally, emergency funds are sold as a backstop you can lean on if you lose your job.

Persons: it's Organizations: Finance, Service, Bank, Vanguard, CIT Bank, Market Index Locations: Wall, Silicon

The book lays out five steps to investing your money, from opening a brokerage account to buying index funds. For example, the Vanguard Total Stock Market Index is represented as VTSAX. 30% Vanguard Total Bond Market Index Fund (VBMFX)35% Vanguard Total Stock Market Index Fund (VTSMX)35% Vanguard Total International Stock Index (VGTSX)As you can see, he recommends roughly one-third in an international stock index fund, another third in a domestic index fund, and a final third-ish in a domestic bond index fund. (I have a lot of working years ahead of me and the stock market is currently going nuts, so I've opted for 90% stocks and 10% bonds.) Once you're set up, you need to adjust your ratios just once a year, letting your money work for you instead of the other way around.

Persons: Andrew Hallam's, it's, —, She'd, Hallam, let's, VTSAX, It's, you'd, What's, I've Organizations: Service, That's, Hallam, Vanguard, Index, Market Index Locations: VTSAX

☆ Reading 2 short sentences in 'Millionaire Teacher' convinced me to change my retirement savings strategy, and it's helped me earn thousands
▼ + stars: | 2020-12-27 | by ( Alexis Rhiannon | Read More | Read Less | ) www.businessinsider.com time to read: +6 min

Four years ago I'd started saving for retirement, but I was too afraid to actually invest the money. But reading the book "Millionaire Teacher" opened my eyes: I learned quickly that I was missing out on years of compound interest. But then, two short sentences in the book "Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned In School" finally convinced me the answer was yes. "Over the past 90 years," Hallam wrote, "the US stock market has generated returns exceeding 9% annually. 'Millionaire Teacher' challenged my preconceived notions about the marketBefore I read "Millionaire Teacher," my understanding of the stock market was vague and amorphous.

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