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☆ 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.

At age 27, my dad passed away and I inherited a retirement account from him worth $50,000. I could have used the money to pay off my student-loan debt, but I would have had to pay penalties and taxes on the entire balance. Although I inherited around $50,000 and had roughly the same amount of student-loan debt, I decided to keep most of that money invested instead of paying off my loans in full, and I'm glad I did. I was working as a teacher at the time of my dad's passing and was making more than the minimum payments to more aggressively pay down my student loans. I could have kept that money invested or cashed it out to pay off the rest of my student loans, but there were trade-offs to those options as well.

I was encouraged to start saving for retirement at 24 because my job offered a 401(k) with a generous match. Pick a tax-advantaged retirement account that makes sense for your financial situation and goals, and set up automatic contributions. When it comes to retirement, saving something is always better than saving nothing, so don't be too hard on yourself if you haven't made it a priority until now. Pick a retirement account (or two)Get familiar with the features of each type of retirement account. She writes most frequently about saving money, planning for retirement, taxes, debt management, and strategies for building wealth.

The different is your FSA money is "use it or lose it," while your HSA money rolls over from year to year. The biggest difference is that FSA money has to be used by the end of the year, while HSA money rolls over from year to year. For 2021, the HSA contribution limit is $3,600 for individual coverage and $7,200 for family coverage. Remember, you can use this account for a host of eligible medical expenses, including dental and vision expenses. HSAs and FSAs are great tools that can reduce your taxes while you save for future medical expenses.

Over time, my strategy has shifted from a focus on mutual funds to a focus on exchange-traded funds (ETFs). While ETFs and mutual funds are similar in most aspects, several key benefits make ETFs a better choice for the average investor. If that sounds a lot like a mutual fund, it's because this is how mutual funds work too. Until the 1970s, virtually all mutual funds were actively managed investment funds. While there are still fewer ETFs than mutual funds, there's enough selection that your needs, like mine, are likely covered.

Americans who work with a financial adviser are more optimistic about their financial situation, despite believing a recession is imminent, according to a CFP Board survey. It's nearly impossible to recession-proof your money, but a good financial planner or investment adviser can help you protect it. AdvertisementThere's a lot of upside to working with a financial adviser, especially if you're worried about what the future holds. Seventy-eight percent of people who have a financial adviser report feeling optimistic about their personal or household financial situation. AdvertisementAt the end of the day, it's nearly impossible to recession-proof your money, but a good financial planner or investment adviser can help you protect it.

Persons: It's, —, it's Organizations: Board, Service, Morning, Standards Locations: United States

Mortgage rates will never get this low again!" At that time, he said that he could get me a 15-year mortgage at a 2.875% interest rate. We decided that we were not ready to commit to extra monthly payments right now with our situation of increased economic uncertainty. Mortgage rates are changing again! And plus, I can take comfort in knowing that I'll never have to refinance ever again, because mortgage rates will never be this low again, right?

Persons: I've, I'm, —, we've Organizations: Fed, Service, Federal Reserve, Mortgage

Automatically putting money in a high-yield savings account, increasing your retirement contribution, and opening a brokerage account can all boost your wealth. By making smart choices with even small amounts of money you have today, you'll set yourself up for big changes over the long term. Big wins — like getting a raise — are wonderful, but small wins — like choosing the right investment or savings account — are even better, because you have total control. Even though interest rates are down compared to early 2019, a high-yield savings account can still help you earn up to 20 times more on your cash than a traditional savings account. Now, just opening a new savings account won't make you rich.

Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). Personal finance site WalletHub released updated data on the best and worst US cities for retirees, and looked at affordability as a main factor. Retirees are most likely to find low taxes and care costs in the south and southeast. Many cities in Florida, Texas, and Alabama made the list, including Jacksonville, Tampa, Mobile, and San Antonio. Here are the 17 most affordable cities for retirees, along with data on each state's tax rates via WalletHub and median senior day care costs from AARP.

My husband and I have made some mistakes with money in the past, including racking up $30,000 of credit card debt. No matter how hard we tried, it seemed like we couldn't make a dent in the credit card balance. He encouraged us to open up two more credit card accounts. The CFP wisely suggested we check our current credit cards to see which had the highest interest, and move accordingly. In an ideal world, we would have paid off the credit cards sooner so we wouldn't throw money away on interest.

The rising costs of healthcare, longer life expectancies, and other factors have made traditional retirement more expensive than ever. It's time to "retire" some popular retirement advice that no longer makes sense in today's world. That's because Social Security benefits grow the longer you keep from taking them, until you reach age 70. Old advice: You'll probably die young, so plan for retirement accordinglyNew advice: Your money needs to lastFinally, we're no longer in the 1800s. In other words, retirement funds will need to last — especially if you hope to retire before the standard retirement age of 65.

Our experts choose the best products and services to help make smart decisions with your money (here's how). My husband is a saver and I'm a spender, but in almost a decade of marriage, we've come up with five strategies that help us balance those impulses. We keep a budget and designate a certain amount of spending money for each month, and we review our bank statements and credit card bills together monthly. It takes effort, communication, and help from the best financial advisor, but we've figured out a way to make it work. I'll update him on freelance projects I'm working on and how much money I'm expecting to come in, and he'll highlight (sometimes to my chagrin) ways we've overspent in the last month.

Persons: spender, we've, —, I'm, We've, it's, I'd, It's Organizations: Service

You don't have to register with the government to be considered a business — even picking up some freelance or gig work on the side technically counts as a business. Some people think you have to register a business with your state's government to be considered a true business, but that isn't actually the case. What qualifies as a businessIf you think you need to register with the government to be considered a business, think again. By default, any business that doesn't register with its secretary of state is considered a sole proprietorship. If you have a small, part-time side hustle, odds are going without registering your business as an LLC is just fine.

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