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☆ 4 strategies a 28-year-old used to grow her net worth by $92,000 in a year
▼ + stars: | 2021-06-16 | by ( Liz Knueven | ) www.businessinsider.com time to read: +6 min

A millennial who saved $92,000 in a year used four strategies to save and invest more. She took advantage of her 401(k) and HSA to save on taxes and grow her balance. Conpoint, an Austin, Texas-based blogger and tech worker who uses a pseudonymous last name online, is working toward financial independence. Planning to leave full-time work in seven years, she primarily uses four strategies to save, grow her investment accounts, and stay on track to retire at 35. She uses an HSA to take advantage of tax breaksA health savings account can help with more than immediate health costs — and Conpoint uses that to her advantage.

Financial planner Amy Richardson of Schwab recommends four ways to increase retirement savings. Amy Richardson, a financial planner with Schwab Intelligent Portfolios Premium, says that there are several methods to use that can double your retirement savings in a short amount of time. "Make sure that you're contributing to your company's retirement plan up to the maximum match at a minimum," Richardson said. Make a financial plan, and figure out how much more you can save each monthOne of the best ways to double your savings is quite simply to find ways to save more, and put it into your financial plan. By making saving for retirement (or simply saving more) a part of your financial plan, you're able to more accurately track your progress and stay on top of your goals.

Inheritances are useless by the time they're received, writes Bill Perkins in "Die with Zero." Gifting money earlier when it will do the most good is a smarter move, Perkins writes. In his book, "Die with Zero," he explains how he hopes to spend all the money he has before he dies. For that reason, Perkins writes that the money could be better used earlier in life. This pattern of later-in-life inheritances is something that Perkins hopes his "Die with Zero" strategy reverses.

Persons: they're, Bill Perkins, Perkins, Bill Perkins isn't, he'd, inheritances, Inheritances, Lincoln Plews, doesn't, Get Organizations: Service, Wall, Federal Reserve, United Income, Capital Locations: Wall, Silicon

A 740 credit score is just as good as an 850If you're building or re-building your credit score, getting to a perfect 850 score can sound overwhelming. "Your sights should be set on 740-plus, often referred to as the start of a perfect credit score," Aliche writes. "If you are over 740, you can get near or the same interest rate as anyone with a perfect 850 credit score," Aliche writes. A very good credit score can also bring lower insurance rates, and better chances of being approved for a certain credit card. If you find a mistake on your credit report, disputing the error could help you raise your credit score.

To get the best deal buying a car online, do everything you would do at a dealership. Online car shopping has become far more mainstream during the pandemic, and it's likely here to stay. If you're looking to buy your next car online, here's what you need to know to make sure you're getting the best deal possible. If you want to test drive the car you're considering, it's still possible, even when shopping online. "Pick out a car online, and then go to a local dealer and take a test drive of that vehicle," he told Insider.

The app only offered an individual taxable investment account, but that wasn't what I needed. In a Roth IRA, I can keep whatever I put in, and whatever I earn, totally tax-free. For my goal of building long-term wealth, investing in an individual taxable investment account should probably be the last step on my financial priorities list. There's a time and a place for individual taxable investment accounts. But, while I'm saving for the long run, a Roth IRA has too many advantages to pass up.

Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). Blacktower Financial Management data shows the best states for retirees are Florida, Iowa, and Ohio. SmartAsset's free tool can find a financial adviser near you »Choosing a state for retirement can be a big challenge. The lower the index number, the lower the cost of living. Here are Blacktower's 15 most affordable states for retirees, including their cost-of-living index along with the average home price and the percentage of seniors.

And, you might start taking on debt with high interest rates, like a personal loan or credit card. If you're not paying cash for your house, buying a home involves getting approved by a bank for a mortgage. If you're spending half or more of your income on your home each month, that goal might be out of reach. Credit card debt and personal loan debt often come with high interest rates — credit card interest rates average about 15%, while personal loans can range from 9% to 30%. These high interest rates can increase the amount you owe over time, and make your purchases more difficult to pay off.

I made a New Year's resolution to buy a house with a 20% down payment in 2020, and I met my goal by September. While a lot of unpredictable things happened along the way, I was able to stay on top of my huge savings goal by breaking it up into smaller parts. Finally, at the end of every pay period, I'd look at my bank account and move any leftover money into my down payment savings account. Whatever was leftover from the previous paycheck, I'd put into my house savings account. I ultimately accomplished my goal of saving 20% in September, the same month that I bought the house.

If you expect to take Social Security payments as soon as you're able, that's one sign you don't have enough saved. You plan take Social Security as soon as possible to make ends meetIf you're planning to take Social Security as soon as you're eligible, you might not have enough saved. And, the sooner you take Social Security distributions, the less you'll actually get. You're thinking about downsizing your life to make ends meetAt retirement age, it's natural to think about downsizing things like your home after children have moved out. Adjusting these major costs could help you free up your budget and keep living the life you're used to.

Persons: you've, —, Malcolm Ethridge, IRAs Organizations: Social, Service, Security, Social Security, Financial

For most people looking to retire, it involves years of saving, investing, and planning to go successfully. Here are a few signs you won't be ready for retirement, regardless of how long you've saved. You've made an early withdrawal or taken a loan from your 401(k)The CARES Act made it easier than ever to take loans and early withdrawals from a 401(k). Financial planners recommend saving about 15% of your salary for retirement, including any employer match in a 401(k). "You'd be amazed at how many 401(k) accounts I see with 50% or more sitting in cash," Taylor writes.

Retirees say that saving and investing for retirement consistently is critical, as investing can help grow savings over many years. Sometimes, the simplest strategies are best — one retired grandfather used a buy-and-hold stock strategy to build a portfolio worth millions. Luckily, lots of people have retired comfortably and are willing to share the steps they took to do so. Here, we've compiled the best advice from four retired people for anyone who's looking forward to a long and happy retirement. Sean says that his grandfather's advice has helped him get on track to hit $6.8 million at age 60, or retire early.

Persons: that's, —, you've, we've, Sean, didn't, It's, Michelle Jackson's, it's, Jackson's, Jackson, Eric Rosenberg didn't, Rosenberg Organizations: Business, Service, Walmart Locations: United States

☆ 7 helpful things to read if you can't make up your mind about high-yield savings
▼ + stars: | 2020-12-03 | by ( Business Insider | ) www.businessinsider.com time to read: +5 min

As people get smarter about their savings, more banks are offering a high-yield savings option. High-yield accounts generally pay rates about 10 times higher than traditional savings accounts. However, did you know that saving large sums in a checking account, or even a traditional savings account, isn't much better? Each of the best high-yield savings accounts is free of monthly maintenance fees, FDIC-insured, and appropriate for modest and super savers alike. High-yield savings accounts and standard savings accounts are more similar than they are different: They're both offered by banks, federally regulated, and liquid.

Our experts answer readers' credit card questions and write unbiased product reviews (here's how we assess credit cards). Almost 80% of the millionaires who the author Thomas J. Stanley interviewed for "The Millionaire Next Door" are first-generation affluent, or self-made millionaires who didn't inherit wealth. Many self-made millionaires also shied away from assisting their adult children financially, as it can hurt both the parents and the children. He also identified three money habits that successful self-made millionaires avoid at all costs. But according to Stanley's research, that's not the card most self-made millionaires turn to — most go for lower-fee credit cards instead.

Persons: Thomas J, Stanley, —, that's, That's Organizations: Service, Millionaires

Investment advisor and financial planner Blair duQuesnay says she uses open enrollment to save more for retirement, signing up for a high-deductible healthcare plan with access to a Health Savings Account, or HSA. AdvertisementFor most people, open enrollment doesn't go beyond signing up for health insurance coverage for the coming year. However, HSAs are only available if you enroll in a high-deductible healthcare plan during open enrollment. And you don't always have to have a high-deductible healthcare plan to keep your HSA open and growing. "I hope to resume my HSA savings in future years to build a savings account for future healthcare costs," she writes.

Persons: Blair duQuesnay, —, Joshua Brown, Brian Portnoy's, duQuesnay, It's, she'll Organizations: Investment, Service, Finance, Invest, Fidelity

When shopping for a savings account, find a high-yield savings account that helps your money grow. There's really no reason not to opt for a high-yield savings account over a traditional savings account. About 75% of Americans don't yet have a high yield savings account, and that means they're leaving free money on the table. To choose the one that's right for you, consider what you really want out of your savings account. A great online app experience and convenient accessWhat does convenience mean to you, when it comes to a savings account?

Saving for retirement is a long process, but many retirees have shared their top tips with Business Insider. Retirees suggest investing in real estate to create income in retirement, and saving 15% of your income from a young age. Start saving 15% of your income while you're youngFinancial planner and writer Chloe A. Moore shared the retirement advice her uncle used to retire at 56. Saving for retirement works best when start young — retirement savings rely on time and compound interest to grow. Owning these properties was important when both of her parents retired, and especially after her father died.

Persons: —, it's, Chloe A, Moore, Donna Fenn, Fenn, Choncé Maddox, Maddox, They've, Robin Kavanagh's, Olivia Christensen, Ellen Young, Christensen, Young Organizations: Business, Service, Social

A recent survey by brokerage firm Charles Schwab found that 82% baby boomers expect their retirement to go as planned, and expect their savings to support most or all of their retirement dreams. Many boomers have already used their retirement savingsThis data leaves out a chunk of baby boomers who have no retirement savings whatsoever. IRI reports that about half of the baby boomers who don't have retirement savings did have money set aside at one time, but they had to use the cash before retirement. Americans might not be able to cover their healthcare costs in retirementAccording to the Schwab survey, the average saver in this sample had $920,400 in retirement savings. That's an amount just slightly lower than the average 65 year old's whole retirement savings, and more than double the median balances.

The average federal income tax payment in 2018 was $15,322, according to the most recent data available from the IRS. Americans in the most common income bracket earned an adjusted gross income between $50,000 and $75,000 in 2018, and paid an average income tax of $4,688. How much the average American paid in federal income taxes by income levelIn general, the amount of tax paid increases with the amount of adjusted gross income. Within this income segment, the average annual income tax paid was $4,688. This data only includes federal income taxes.

Moving is generally pretty expensive, but there are a few ways to make the process cheaper. From doing more yourself to finding cheaper alternatives to packing supplies, there are several ways to save on your next move. "Moving demand peaks in the summer and is lowest in the winter." Bob Mulligan, a certified moving consultant with Able Moving and Storage in Washington DC, says that simply packing yourself is a big savings. "Or, use a containerized moving service like PODS to do the transportation, and use a platform like HireAHelper to book the loading and unloading independently."

Persons: —, Duck Brand, Max Anderson, Anderson, Bob Mulligan, Able, Mulligan Organizations: Service, Storage Association, United Van Lines Locations: Washington

The average approved private student loan borrower in 2020 has a credit score of 748, according to data from LendEDU, higher than the average applicant credit score of 638. Federal loans should come firstFor anyone who wants to borrow money for college, federal student loans should come before private student loans. Federal student loans don't require a credit check for many student borrowers, and can have lower interest rates than private student loans. For private loan borrowers in 2020, the average interest rate for a cosigned, fixed interest student loan is 10.20%. Raising your credit score is another good way to increase your chances of being approved for a private student loan.

Persons: — Organizations: Service, Federal Locations: Experian

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). Unlike federal student loans, private student loans can have stringent requirements that can make getting approved as a student difficult. Unlike federal student loans, private student loans often have stringent requirements. It's worth making sure that you've borrowed as much as you can from the federal student loan program before turning to the private student loan marketplace. But, if you need a private student loan, here's how to boost your chances for approval.

Persons: —, Earnest Organizations: Service Locations: LendEDU, Federal

The CEO and founder of a retirement-planning app says two things could jeopardize your retirement: withdrawing from your 401(k) and spending too much. AdvertisementThe choices you make today will influence the amount you have saved to live on tomorrow. Retirement savings grow over time, so balancing your immediate needs with your long-term goals is a must, especially when you're years away from retiring. Retirement accounts depend on compound interest to grow, which means the longer you can leave your money alone, the better. Taking money out of your account could hurt the balance you'll have saved when you retire, even if you replace it later.

Persons: —, Rhian Horgan, Horgan Organizations: Service

The right savings account is one that helps your money grow and has the features you want. While your checking account should be a pit stop for your money, a savings account is a holding cell for your cash until you're ready to spend it on your goals. For a starting point on your savings account research, Insider compiled a list of the best high-yield savings accounts available. Consider interest ratesWhen it comes to savings accounts, take a close look at high-yield savings accounts. There are many fee-free high-yield savings account options out there.

In a high-yield savings account, money will earn more interest than it could in a checking account. If there's always too much money in your checking account, it might be time to find a high-yield savings account to store anything extra you're keeping in checking. Your money earns more interestIn a high-yield savings account, your money earns far more interest than it would in a checking account. Meanwhile, a high-yield savings account can earn around 1%, depending on the bank and the account you choose. You can open multiple accounts for multiple goalsThere's no limit to how many high-yield savings accounts you can have open.

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