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☆ An accountant and former investment banker shares an underlooked way to invest your first couple thousand dollars: 'The return you can get completely outweighs the 7% return you're going to get in the
▼ + stars: | 2024-03-14 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

When you think about the different ways to invest your money, things like the stock market or real estate may come to mind. "Investing at its core is about committing resources to achieve future benefits," accountant and former investment banker Nischa Shah says on her YouTube channel. However, "when you invest in yourself, you're essentially increasing your earning potential and creating more opportunities for yourself." Because the return you can get in your own investment completely outweighs the 7% return you will get in the stock market over the next 30 years." You don't want to get to the point where you're looking back and thinking, "'I wish I just started.

Persons: Nischa Shah, it's, that's, Shah, Nischa, —, who's, she'd Organizations: Service, YouTube, Business

☆ A tax expert shares 3 little-known concepts every real-estate investor should know about, including one that could eliminate capital gains taxes
▼ + stars: | 2024-03-14 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +7 min

"It's section 1250 in the tax code, and that tax rate is 25% at the federal level, regardless of whatever marginal income tax bracket you're in." In addition to owing capital gains tax on the $500,000 of appreciation they experience, they're also subject to depreciation recapture tax. As a DST investor, you essentially own fractions of the investment properties, typically high-grade institutional properties, owned by the trust. A step-up in basis can reduce or eliminate capital gains taxesA "step-up in basis" can help heirs reduce or even eliminate capital gains taxes. That means, if the surviving spouse wants to sell, they can save big on capital gains taxes.

Persons: —, Austin Bowlin, they're, Bowlin, aren't Organizations: Service, Real, Business, IRS, Midwest, Investors Locations: Delaware, Texas, Arizona , California , Idaho , Louisiana , Nevada , New Mexico , Texas, Washington, Wisconsin

☆ A former investment banker shares the strategies she's using to build long-term wealth, including 3 mental tricks she used to save six figures
▼ + stars: | 2024-03-10 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +8 min

It also helped that she'd built six figures in savings, according to screenshots of her savings and investing accounts viewed by BI. She elaborated on her stock market and real estate investing strategies. While anyone can invest in the stock market starting with as little as $1 thanks to micro-investing platforms, owning real estate typically involves bigger upfront costs. "I could put down a 20% deposit, and then the bank will lend me 80% to buy this asset," she said. The cash flow you can generate from real estate is "far greater than what you'll get from most other investments," said Shah.

Persons: Nischa Shah, Shah, she'd, she's, It'll, —, — Organizations: Business, YouTube, BI, Fidelity, Vanguard Locations: London, Real

☆ I finally invested my HSA money after writing about millionaires who take advantage of a 'triple tax threat strategy.' I could pocket an extra $233,000 by the time I retire.
▼ + stars: | 2024-03-09 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +12 min

After 65, you can use your HSA money to cover any expense without incurring a penalty, but the funds are subject to income tax. I happily used my HSA money to cover the $1,075 bill. An even smarter move would have been to invest my HSA funds (which I eventually did) and not touch them until age 65. I was relieved when Weiss told me that he also invests his HSA money in a retirement date fund. I asked about how often I should be transferring money from my cash account, where my HSA funds land automatically, to my investment account.

Persons: I've, Brent Weiss, Roth IRAs, HSAs, It's, Weiss, Max, don't, Kathleen Elkins, —, I'm Organizations: Business, Vanguard, IRS Locations: That's, Epsom

☆ Real-estate investors are using a little-known tax strategy the IRS approved in 2004 to exchange properties for a more passive investment while deferring taxes indefinitely: 'Most people don't even kn
▼ + stars: | 2024-03-05 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +6 min

Austin Bowlin, a CPA and partner at Real Estate Transition Solutions, is finding this out among his investor clients. "But a 1031 exchange in and of itself isn't the sole answer because now they have to figure out, 'What would I exchange into?'" If they buy another investment property, they're back where they started: actively managing a different property. And, thanks to a 2004 ruling by the IRS, DSTs are 1031 exchange eligible. That said, "most of those risks are what the owners are accustomed to, having owned and managed investment real estate.

Persons: —, It's, Austin Bowlin, they're, He'll Organizations: Service, Business, CPA, Real, Delaware Statutory Trust, IRS, SEC Locations: California, Delaware, Texas, Florida, Washington, Nevada

☆ Entrepreneurs without business or finance backgrounds share 3 non-business-related tactics that are helping them bring in millions in revenue
▼ + stars: | 2024-03-03 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +7 min

download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewAs entrepreneurs and small-business owners have shown, a traditional business or finance background isn't a prerequisite for success. The owner of two bustling Brooklyn locations told Business Insider: "I didn't go to business school. Advertisement"I think we both have strong entrepreneurial instincts, but we don't come from a finance or a business background," said La Tejana cofounder Gus May. Each of these entrepreneurs has evolved alongside their businesses and become more and more business savvy through trial and error.

Persons: —, Jon Neeter, Adah Fitzgerald, Cosmetologist Martha Ellen Mabry, Gus May, Ana, Maria Jaramillo, Fitzgerald, Noble, We've, Jaramillo, It's, Martha Ellen Mabry, Headchop, Samuel Robert Bullen Mabry, " Jaramillo, Neeter, everybody's Organizations: Service, Independent, Business, Barnes Locations: Los Angeles, New York City, Brooklyn, La, Pleasant

☆ 'Super savers' are spending little to no money on housing to free up extra cash. Here are 3 strategies they use to lower their rent or mortgage payments.
▼ + stars: | 2024-02-29 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

Heilbron, along with other "super savers" — individuals who save more than half of their incomes — have found creative ways to lower (or eliminate) the biggest expense Americans face: housing. US Bureau of Labor StatisticsHere's how the experts save on rent or mortgage payments, listed in order of simplicity. Courtesy of Karina MejiaIf you can live with family, that's another way to save on housing. But, especially if you're based out of a major city, the further you go away from the city center, the more affordable space you're going to find. While it is perhaps the most effective way to lower housing costs, it is also the most complex in that it requires owning a home.

Persons: you'll, Avery Heilbron, Steven Keys, Lauren, Karina Mejia, Ali, Josh Lupo, Todd Baldwin Organizations: Business, Consumer, Bureau of Labor Statistics, of Labor Statistics Here's Locations: Boston, Augusta, San Francisco, Orlando, New York, Seattle

☆ A couple that quit their jobs in their 20s explains why the 4% rule of early retirement is overrated — and why they felt comfortable quitting before they reached 'full financial independence'
▼ + stars: | 2024-02-27 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

It can help prospective early retirees figure out how much money they can spend in retirement without running out. When Lauren and Steven Keys set out to achieve financial independence and allow themselves the freedom to quit their 9-to-5s, they kept this formula in mind. But then they did an early retirement "test run" of sorts in 2015: They quit full-time work and traveled to Hawaii for six months. What they realized is that early retirement doesn't necessarily mean they'll never work again. Lauren and Steven Keys quit full-time work in their 20s.

Persons: Lauren, Steven Keys, Steven, Stephen, you'll, We're, I'm, we'll Organizations: Financial Independence, Business, National Parks Locations: Hawaii, United States, It's, Gainesville

☆ A financially independent real-estate investor explains the strategy she used to 'exchange' investment properties and sidestep capital gains taxes indefinitely
▼ + stars: | 2024-02-25 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

The real-estate investor, consultant, and author of "30-Day Stay" explained how and why she did a 1031 exchange. How a 1031 exchange worksWith a 1031 exchange, you're essentially selling one property, purchasing another, and avoiding capital gains taxes in the process. There are ways to reduce your capital gains tax liability, like deducting your property's depreciation. But, with a 1031 exchange, you can sidestep your capital gains taxes indefinitely and continue reinvesting in more profitable properties and growing your wealth. However, real property in the United States is not like-kind to real property outside the United States."

Persons: —, Zeona McIntyre, McIntyre, St . Louis, Louis —, you'll, There's Organizations: Service, Business, IRS Locations: Boulder, St ., St, Florida, United States

☆ A millennial without a business or finance background skipped college to open her first hair salon at age 21. She shares 2 keys to bootstrapping a successful small business.
▼ + stars: | 2024-02-23 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +7 min

Read previewMartha Ellen Mabry remembers getting her hair cut as a kid at the local salon one of her neighbors owned. AdvertisementHere are two principles the entrepreneur followed that helped her build two thriving businesses without a business or finance background. Mabry launched her basement salon Headchop on a shoestring budget. Mabry didn't spend a dime on marketing Headchop. Advertisement"What makes a business truly work for a long time is the care that goes into it," Mabry said.

Persons: —, Martha Ellen Mabry, Mabry, Alisha Wetherill Mabry, she's, that's, I've, Michelle Iorio, Hayley Carloni, they're Organizations: Service, South Carolina, Business Locations: South, Brooklyn , New York, NYC, Williamsburg, DevaChan

☆ A 34-year-old salon owner moved to NYC as a teen to cut hair. She explains how she bootstrapped a one-chair salon out of a basement before expanding to 2 bustling Williamsburg locations.
▼ + stars: | 2024-02-21 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +13 min

At 21, she bootstrapped Headchop, which started as a one-chair basement salon in Williamsburg. To step into Headchop Hair Studio is to step back in time. The humble basement salon, sandwiched between residential buildings on Berry Street in Williamsburg, Brooklyn, is easy to miss. Mabry, pictured styling hair at Headchop, says that her "fascination" with hair began in middle school. Mabry's original location, Headchop, is by appointment only.

Persons: Martha Ellen Mabry, bootstrapped, —, Alisha Wetherill, Mabry, Headchop, Samuel Robert Bullen Mabry's, messaged, she'd, It'll, Michelle Iorio, Iorio, Clinton Van Gemert, I'm, Hayley Carloni, I'd, chemo —, Lil, She'd, I've Organizations: Service, New, New Yorker, Business, South Carolina, Craigslist Locations: Williamsburg, Berry, Williamsburg , Brooklyn, New York City, New, South Carolina, New York, Brooklyn, South, DevaChan

☆ An entrepreneur took a chance on the pickleball trend, and his business went from zero revenue during the pandemic to seven figures. 3 philosophies helped him take the leap.
▼ + stars: | 2024-02-20 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +9 min

Jon Neeter, a small business owner since 2010, has seen the highs and lows of entrepreneurship. This article is part of "Unlocking Small Business Success," a series providing micro businesses with a road map to growth. They leased the real estate — a single tennis court with an attached 330-square-foot pro shop — and bought the business. The second half of 2019 was a particularly challenging time for the small business owner. His goal was to "build the best pickleball shop in the country," he said.

Persons: Jon Neeter, It's, —, Neeter, pickleball, I'd, everybody's, Pickleball, Jon Neeter Rather, You'll Organizations: Service, BI, Santa Monica Pickleball Center, Santa Monica Tennis Center, Santa Locations: Santa Monica , California, California, America, Southern California, Los Angeles

☆ 'Super savers' are using a simple 2-pronged approach to save more than half their paycheck and achieve financial independence
▼ + stars: | 2024-02-18 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +4 min

Business Insider has spoken to dozens of “super savers” who are setting aside more than half of their paychecks — and they make it sound relatively easy. The couple says they save 100% of their 9-to-5 income , thanks to a low cost of living and various revenue streams. That’s what early retirees Lauren and Steven Keys experienced . Lauren and Steven Keys quit full-time work in their 20s. Their side hustle income more than sustains their lifestyle, meaning they can save 100% of their day job income.

Persons: It’s, doesn't, Josh Lupo, Ali, Josh, Lauren, Steven Keys, Steven, ”, Avery Heilbron, you'll Organizations: Business Locations: San Francisco, hustles

☆ Millennial millionaires are maxing out an investment account that offers a triple tax benefit. Here's how it works and who's allowed to open one.
▼ + stars: | 2024-02-15 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +6 min

BI verified the Schlagbaums' net worth by looking at account screenshots and a copy of their personal balance sheet. The Schlagbaums max out their HSA but don't touch the money so it can grow and compound over time. After 65, you can use your HSA money to cover any expense without incurring a penalty, but the funds are subject to income tax. While they technically can use their HSA funds for medical costs, they opt not to touch that money so it can grow. Like the Schlagbaums, the Keyses could use their HSA funds for their medical costs, but they prefer to pay out of pocket with their cash flow so their HSA funds can remain untouched.

Persons: —, Brennan Schlagbaum, Erin, Brennan, Erin Schlagbaum, HSAs, It's, Schlagbaum, Lauren, Steven Keys, I'm Organizations: Service, Business, Medicare

☆ A couple in their 30s who hit a net worth of over $1 million and retired early explains how they invest their money — and why they didn't max out their retirement accounts
▼ + stars: | 2024-02-13 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +6 min

About six months later, after doing their own research, they discovered low-cost index fund investing , a relatively low-risk and hands-off strategy that aims to match the returns of a specific market index. Putting their money to work in stock market index funds helped them reach their current net worth of just above $1 million — but it’s not their only investment. BI verified their net worth by looking at investment account screenshots and property appraisal documents. Bond market index funds“While stocks and rental real estate can generate high returns, they’re also volatile,” they write. “To smooth out the ride, we hold bonds.”Specifically, they hold the Vanguard Total Bond Market Index Fund ( BND ).

Persons: Lauren, Steven Keys, “, ” Steven, Steven, we've, it’s, ”, they’re, Keys, “ It's, Roth IRAs, Roth Organizations: Business, Vanguard, Market Index, Index, ” Employees, HSAs Locations: Gainesville , Florida, We're

☆ After a 5-month-long 401(k) rollover process, a financial professional told me I should've asked 2 questions before even starting — and explained when it makes sense to keep your money separate
▼ + stars: | 2024-02-11 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

From start to finish, it took me five months to combine my retirement money into one account. Before moving your retirement money, consider the investment options at your current plan (or plans if you have multiple accounts) and the new plan. “The average 401(k) plan only has about 15 to 20 investment options, so we want to look at those options: ‘Are they good? The main ones to look into are plan administration fees, individual service fees, and investment fees. Your employer is required to provide you with information on the company 401(k) plan, including the fee structure.

Persons: Brent Weiss, Weiss, that's, ”, “, you’re, — Organizations: Fidelity, Vanguard, Business

☆ A couple that retired early explains the 'sweep away method' that helped them build a $1 million net worth — and why they don't budget or track expenses
▼ + stars: | 2024-02-09 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +6 min

After you’ve paid yourself and the rest of your monthly bills, you’re free to spend any excess however you’d like. When you’re debt-free, you could then sweep your excess into an investment account where your money can compound over time. The Keys hit a seven-figure net worth in 2023. “The reason we like net worth better than anything else is because it captures the whole picture and encourages big-picture actions that affect your total financial situation in a positive way,” said Steven. “If you look at your net worth, you'll see that that's just a transfer of assets from one place to another.

Persons: —, Lauren, Steven Keys, ”, you’ve, ’ ” Steven, Steven, we're, “, ” It’s Organizations: Service, Business, BI Locations: Florida, ”

☆ A couple in their 30s hit a $1 million net worth by saving and investing most of their 5-figure incomes. They share the strategies that helped them live on $26,000 a year without feeling deprived.
▼ + stars: | 2024-02-07 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +9 min

Read previewWhen Lauren and Steven Keys landed their first full-time jobs, they were earning well below the national average. Courtesy of Lauren and Steven KeysBetween 2013 and 2015, the Keys say they saved over $100,000 . Courtesy of Lauren and Steven Keys"It's not just gas," said Steven, who biked to work so Lauren could use the car for her commute. "You don't have to pay for insurance on the second car, you don't have to pay for maintenance or repairs or tires. While they don't work traditional 9-to-5 jobs, they have a variety of revenue streams that more than sustain their lifestyle.

Persons: —, Lauren, Steven Keys, Steven, Lauren didn't, Keys, It's, They've, They're, they've, we're, we've, there's Organizations: Service, Business, BI, University of Florida, Walmart, Costco, Aldi, Sam's, paychecks Locations: Gainesville, Orlando, San Francisco, Publix, Gainesville , Florida, Hawaii

☆ Real-estate investors who are cash-flowing thousands of dollars share 3 strategies they use to find profitable rental properties: 'Look for the ugly houses'
▼ + stars: | 2024-02-04 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

Business Insider has spoken with a handful of real-estate investors who own profitable properties and asked what they look for in the acquisition phase. Go for multi-family propertiesA multi-family is a single building divided to house more than one family living separately and ranges from duplexes to triplexes and fourplexes. The idea is that your tenant's rent will cover some (or all) of your housing costs. Note that not all markets have an abundance of multi-family properties. "When you're looking for an investment property, you're looking for something really under market that you can renovate."

Persons: Dana Bull, Bull, Nyasia Casey, she'll, Casey Organizations: Business, Agents Locations: New England, Baltimore

☆ A real estate investor who owns 3 properties explains why she chooses to rent instead of buy a primary home: It's 'a personal protection plan'
▼ + stars: | 2024-01-31 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +4 min

Business Insider verified this by viewing a copy of her mortgage statement and a letter from the Housing Authority of Baltimore City showing the rent price. This story is available exclusively to Business Insider subscribers. "I'd rather buy investment properties and rent," the 44-year-old real-estate agent and investor told Business Insider. As she sees it, paying rent rather than a mortgage is "more so a personal protection plan." "There are both sides of the table," veteran real estate investor and developer Ricky Beliveau told Business Insider.

Persons: Nyasia Casey, Casey, who's, We'd, It's, Ricky Beliveau Organizations: Nyasia, Business, Housing Authority Locations: York City, Baltimore, Baltimore City, New York City, Casey's

☆ Real-estate investors on tight budgets are using a creative strategy to buy homes with zero money down and lock in low interest rates in high-rate environments
▼ + stars: | 2024-01-30 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +8 min

One strategy, known as buying "subject-to," allowed her to bypass a down payment and inherit a relatively low interest rate for her second property. According to Casey, subject-to deals aren't all that common, mostly because of a lack of understanding about how they work, even among real estate professionals. He can take that money from the escrow if she misses a mortgage payment. "I don't necessarily care about the purchase price; I care about your interest rate. I care about not having to put down a down payment, Casey continued.

Persons: Casey, —, She's, that's, you've, Nyasia Casey, he's, Zeona McIntyre, Zeona McIntyre McIntyre, she's Organizations: Business Locations: New York City, Baltimore, Boulder

☆ A New Yorker who invests in out-of-state real estate shares how she selects strong markets, where she's looking to buy in 2024, and property must-haves: 'I'm looking for three bedrooms minimum'
▼ + stars: | 2024-01-27 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +9 min

'Look for the really ugly houses'Especially if you're investing out-of-state or in an unfamiliar area, "your biggest asset is other agents," said Casey. "You have to go to the block or know someone who knows the market really well." But that's not necessarily what you're looking for as an investor. "When you're looking for an investment property, you're looking for something really under market that you can renovate." Ask, 'Would this work for a tenant in the market you're investing in?'"

Persons: Nyasia Casey, I've, Casey, Baltimore Casey, David Shvartsman, she's, wouldn't, fourplexes, She's, I'm Organizations: Business, Amazon FBA, Yorker, Baltimore, Agents, YouTube Locations: New York City, Baltimore , Maryland, Cleveland, Philadelphia, Baltimore, NYC, New York, Albany, Bronx

☆ I rolled over my 401(k) because I thought it was the smart financial move. Several delays and 5 months later, I regret even starting the process.
▼ + stars: | 2024-01-25 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +13 min

While my case may have been a little on the extreme side, a financial planner assured me that I'm far from the only person to have struggled with a 401(k) rollover. August 15, 2023: Fidelity cuts two checks — made out to Vanguard, not me (this, I later learn, is key) — and mails them to me. I was supposed to make my rollover checks payable to them. The author attempted to mail the rollover form and checks from Brooklyn, New York. I never want to initiate a 401(k) rollover ever again.

Persons: —, I've, Roth, Vanguard There's, Kathleen Elkins, Brent Weiss, that's, Ascensus, Weiss, wasn't, it's Organizations: Business, Fidelity, Vanguard, Neat, UPS, Trust, Facility, IRS Locations: Los Angeles, New York City, Brooklyn , New York, Brooklyn Heights, North Carolina, Charlotte, New York

☆ A real-estate investor explains how she used 'subject-to financing' to buy a property with zero money down while also securing a lower interest rate
▼ + stars: | 2024-01-23 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

Read previewNyasia Casey drained nearly all her savings to acquire her first property in 2021: a $105,000 single-family home in Baltimore. AdvertisementUsing 'subject-to' financing to bypass a down payment and inherit a low interest rateWhile researching creative financing, Casey learned more and more about "subject-to loans," when the buyer takes over the existing financing. This was a major advantage for Casey, who didn't have much cash on hand when she was looking to buy her second property. Another benefit of subject-to for the buyer, especially in a high-interest-rate environment, is that they could inherit a low interest rate. In Casey's case, she inherited the seller's 4.5% rate when rates were hovering around 8%, she said.

Persons: —, Casey, It's, doesn't, Nyasia Casey, he's, that's, you've Organizations: Service, Business, Housing Authority, Baltimore City, YouTube Locations: Baltimore, New York City

☆ A real-estate investor who cash flowed $1,000 on her first rental and profited $68,000 on her first flip explains how to spend your renovation money effectively — and where to cut back
▼ + stars: | 2024-01-20 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +6 min

Nyasia Casey has learned the hard way where to spend money during a home renovation — and where to save. Renovating a rental property versus a flipHow to most effectively spend your renovation money depends on the type of property you're working with. Her agent and hard money lender thought otherwise. Courtesy of Nyasia Casey"My agent said, 'maybe 215,' and my hard money lender said, '200,'" recalled Casey. "But it was the cash offer with closing in 13 days, no inspection," she said, adding: "My hard money lender was blown away."

Persons: Nyasia Casey, —, she's, Casey, Casey Casey, She's, it's, Casey's Organizations: Business, Yorker, Housing Authority, Depot Locations: Baltimore, Baltimore City, New York

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