Latest news with #wealthbuilding
Yahoo
a day ago
- Business
- Yahoo
Tony Robbins: 7 Tips for Building Financial Security in Tough Times
Money is an all-too-common source of worry and stress. We fear losing our jobs, stock market crashes or simply not being able to pay all of our bills next month. While we can't control the greater economy or even our job security, there are steps we can take to protect our finances as much as possible and ride out any waves that come our way. Learn More: Check Out: In a blog post, entrepreneur and author Tony Robbins outlined a few effective tips to build financial security, regardless of what's happening in the wider economic environment. Here's how to create financial certainty in an uncertain world. Don't let your financial fears get the best of you. 'When the world seems uncertain, most people freeze or panic,' Robbins wrote. 'But the most successful people in history — those who built fortunes and legacies — did so by acting when others were paralyzed by fear. Remember, where focus goes, energy flows. If you focus on what you can control, you'll find the power to act, even when the sky seems to be falling.' Some things you can do to gain control are to build an emergency fund for short-term needs and to plan ahead for long-term goals through retirement savings accounts and life insurance. Explore More: Robbins says that if you want to 'shift your results,' you first have to 'shift your state.' 'Don't let the news or social media dictate your emotions,' he wrote. 'Take care of your body, move, breathe deeply, and prime your mind every morning for strength and gratitude. Certainty starts from within.' Paying attention to negative speculation can make you feel more fearful than is necessary. 'In times of uncertainty, rumors and negativity spread faster than the truth,' Robbins wrote. 'Get the real facts about your finances, your job and your opportunities. Make a list of your assets, your skills and your connections. Knowledge is power, and clarity is the antidote to fear.' One of the best ways to gain control of your money and work toward financial freedom is to create a budget that includes room for saving, investing and paying down debt. 'Now is the time to get lean and strategic,' Robbins wrote. 'Review your expenses and cut what isn't serving you. But don't just focus on scarcity — look for places to invest in your growth. The greatest fortunes are made in times of crisis, not comfort. Invest in your skills, your relationships and your health. These are assets that no market crash can take away.' Having diverse investments will help shield you from swings in the market. 'Volatile markets do not have to determine your stress level, and with the right strategy, they do not have to disrupt your future plans, either,' Robbins wrote. 'Take the time to understand proven tactics — like asset allocation, risk management and the buy-and-hold strategy. Study what the world's top investors are doing. Diversification and discipline are your best friends in uncertain times.' In addition to investment diversification, also consider diversifying your income streams. This way, if one income source runs dry, you'll have others to fall back on. When you're feeling anxious, your instinct may be to withdraw. But instead, focus on growing your network. That way, if you do lose your job, you already have connections that can help you find your next opportunity. 'Don't isolate yourself,' Robbins wrote. 'Reach out to mentors, peers and people who inspire you. Proximity is power. Surround yourself with those who are solution-focused and resilient. Share ideas, collaborate and support each other. Together, you'll find strength and new opportunities.' Even if you're facing financial hardships right now, remember that this is a phase — and you can move past it. 'Every economic winter is followed by spring,' Robbins wrote. 'The people who thrive are those who refuse to let fear dictate their actions. They adapt, they innovate and they keep moving forward. Decide now that you will be one of those people.'More From GOBankingRates 4 Things You Should Do When Your Salary Hits $100K If a Financial Advisor Doesn't Ask These 5 Questions in Your Consult, Keep Shopping 5 Steps to Take if You Want To Create Generational Wealth Robert Kiyosaki: 5 Money Habits of People Who Retire Early This article originally appeared on Tony Robbins: 7 Tips for Building Financial Security in Tough Times
Yahoo
a day ago
- Business
- Yahoo
Robert Kiyosaki Says Don't ‘Work for Money' — Do This Instead
Most of us work for the explicit purpose of making money, but 'Rich Dad Poor Dad' author Robert Kiyosaki said that this is not what we should be looking to get out of work. Learn More: Read Next: 'When you work just for money, you become a slave to your job — stuck in the rat race, living paycheck to paycheck,' he wrote on Instagram. Here's why he believes working for money is a mistake, and what you should be doing instead. Kiyosaki believes that many of us approach our jobs with the wrong motivation, and that this behavior is stopping us from building wealth. 'Are you working for money? Or working to learn?' he wrote on Instagram. 'Most people chase paychecks, but the rich chase knowledge.' Working for money keeps you trapped in a paycheck-to-paycheck cycle, Kiyosaki said. 'But when you work to gain skills, connections and experience, you build the foundation for true wealth,' he wrote. Find Out: If you want to achieve financial freedom, focus on what you can learn at your job rather than on how much you are getting paid, Kiyosaki said. 'The rich don't work for money,' he wrote. 'They make money work for them. Stop trading time for dollars. Start working for knowledge. That's the real path to financial freedom.' Kiyosaki isn't the only financial expert who believes the real value of a job is how much you can learn from it. In a post on Bluesky, serial entrepreneur Mark Cuban shared his career advice for new college grads looking for their first jobs out of school, and it echoed a lot of Kiyosaki's sentiments. 'I tell every kid that asks that you paid money to learn. Now it's time to get paid to learn,' he shared. 'You don't need a perfect job. You need to be the best as you can at your job. People like jobs they are good at, but you are always a free agent. You can always be looking and learn more in a new job.' More From GOBankingRates How Far $750K Plus Social Security Goes in Retirement in Every US Region This article originally appeared on Robert Kiyosaki Says Don't 'Work for Money' — Do This Instead
Forbes
2 days ago
- Business
- Forbes
U.S. Workers Say They Need $1.26 Million To Retire: How To Get There
Time is a critical factor in building retirement wealth. The longer you are invested, the greater ... More your wealth opportunity. Since you can't start investing yesterday, the next best thing is to begin contributing to your retirement fund now. How much do you need to retire? A common answer is $1.26 million, according to the Planning and Progress Study 2025 by insurance and financial company Northwestern Mutual. Unfortunately, knowing your retirement savings target does not guarantee you'll achieve it. The study also reported that 51% of Americans believe it's very likely or somewhat likely their savings will run out before they're gone. So, what's a saver to do? Let's outline the exact steps you can take to retire with a seven-figure nest egg. Time is a critical factor in building retirement wealth. The longer you are invested, the greater your wealth opportunity. Since you can't start investing yesterday, the next best thing is to begin contributing to your retirement fund now. To start building your nest egg, you need two things: a budget and an account. You don't need to create complicated spreadsheets or analyze your spending to determine your budget for retirement contributions. The simplest and fastest approach is to guess how much you can afford. A guess is good enough to get you in the investing game, which is the main objective if you're not contributing now. If your gut says you can't afford a single dollar, override that hunch. You can probably find a way to carve out $50 or $100 or more from your monthly spending. Here are three ideas: To clarify, you will need to save more than $50 monthly to reach your retirement goals, but $50 is better than zero. So start saving whatever you can now. You will revisit and refine your contribution budget later. You can invest for retirement in any brokerage account, but some account types are better than others. Here are the common options, in order of most to least preferred: Once you are depositing to your account, make sure the funds get invested automatically. 401(k)s usually operate this way by default, but you may have to configure automated investing for an IRA or brokerage account. Ask your provider about your options. Choosing your investments can be a challenge if you're new to investing. You can start with this quick-and-easy portfolio: This is known as the 60/40 portfolio. It's popular because it balances growth potential from S&P 500 stocks with stability from high-quality bonds. You can always adjust the percentages for more or less risk. A higher percentage of the S&P 500 fund provides more risk and more growth potential, and vice versa. This step kicks off the real work of retirement planning. Know that this process can be discouraging—that's why it's helpful to make investing a habit before you crunch the numbers. If you run the numbers first, you might be inclined to give up before you start. For this step, you'll need a savings goal calculator, like this one from the SEC. The calculator requires these data points: According to the calculator, you can save $1.26 million by investing $793.16 monthly at an average, after-inflation return of 5.36% for 40 years. The required monthly contribution will be higher if you have less time, or lower if you expect higher returns. Do not panic if you don't have room in your budget for a $793 monthly retirement contribution. There are ways to invest more than you think you can afford, such as: Rebalancing is the process of restoring targeted exposures in your portfolio. Targeted exposures are the percentages of stocks and bonds you want to own, such as 60% stocks and 40% bonds. Over time, your owned percentage of stocks will rise as your stocks or stock funds appreciate. This means you're making money, but your risk is also higher. Left alone, your 60/40 portfolio could evolve to 70/30 or 80/20. To restore the 60/40 proportions, you will sell some of the S&P 500 fund and use the proceeds to buy more of your bond fund. Or, for a more gradual transition, you can change the terms of your automatic investments by lowering the stock allocation and raising the bond allocation. With this method, you don't have to sell anything—which can be useful when stock prices are temporarily down. Retiring wealthy takes long-term planning plus a good dose of faith. At the start, it may seem impossible to amass a seven-figure retirement balance. Pressing on through the uncertainty is the key. After five or 10 years of investing and raising contributions, you will see real progress. And that's when things get exciting—you can revisit the savings goal calculator and see a realistic path for reaching your millionaire objective.
Daily Mail
2 days ago
- Business
- Daily Mail
NAB boss slammed for 'peak boomer' advice for building wealth as everyday Aussies battle a housing crisis
The long-serving former chief economist of one of Australia's big banks has come under fire for comments widely criticised as tone-deaf and out of touch. Alan Oster, who retired in March after 32 years with NAB, shared his views on building wealth in a recent interview with the Australian Financial Review. His advice? Invest in property and wait. 'Buy a good property and hold it, is basically the bottom line,' he told the publication. 'We've still got some property down in Portsea and we tend not to sell under normally about 15–20 years.' But his comments sparked immediate backlash. 'This is funny because Oster [thinks] this is helpful... advice but it's effectively a Paris Hilton singlet saying 'don't be poor',' wrote journalist Mark Di Stefano on X. Di Stefano jokingly referenced the infamous doctored image of Paris Hilton, where her shirt was edited to read 'Stop being poor', and subsequently went viral. In reality, the shirt originally said 'Stop being desperate'. Oster's remarks follow the reported sale of his five-bedroom home in Melbourne's affluent suburb of Brighton. The property was said to have fetched around $5.5million, reportedly roughly double its 2012 purchase price. Oster told that the reported figure was inaccurate, though he did not provide an alternative price. According to the current median house price in Brighton is just over $3million. Alex Joiner, Chief Economist at IFM Investors, described Oster's remarks as a 'misstep,' saying they highlighted a disconnect from reality for first-home buyers. 'People struggling to buy a home won't like to be told by a Brighton resident how to get a home,' Joiner said. He added that Oster had benefited from 'structurally lower interest rates, financial deregulation, multiple enormous property booms, and discounted rates and fees from his employer'. Olster recently sold a home in Brighton (pictured) - one of Melbourne's most exclusive areas Cameron Kusher, Director of Economic Research at Real Estate Australia, also criticised the piece, saying, 'It wasn't a great read'. 'Most people could only dream of owning a Brighton home. Most buy at much lower prices in much worse locations, and prices haven't risen like they have in Brighton.' Other readers were less forgiving. 'It's an indictment on this country when the long-serving chief economist of a major bank is reduced to recommending buying luxury property rather than offering any critical analysis,' one wrote. 'Wow, can really see why he was a chief economist. "Buy a good property and hold it",' one person wrote sarcastically. 'Thank goodness there's no housing crisis in Australia and properties are generally affordable, or this article would be pure tumbrel remark,' another commented. 'Peak boomer,' someone else simply replied. The comments come just weeks after a global housing study ranked five major Australian cities among the 20 least affordable in the world. Sydney was ranked the second most unaffordable city globally, behind only Hong Kong. Adelaide came in 6th, Melbourne 9th, Brisbane 11th, and Perth 18th.
Yahoo
2 days ago
- Business
- Yahoo
Tax rule that could make you $36,650 every year: 'Missing out'
When most people hear 'negative gearing' it's common for them to switch off or think it's only for the super-rich. But this one strategy can make the difference between staying stuck and building serious wealth — not just because of the tax savings, but also because it can be the key to getting into the property market in the first place. With property prices rising, and these price increases accelerating way faster than inflation, getting into the property market, or getting ahead with property investing is getting harder by the day. But the longer you wait, the further behind you actually fall. If you're making a decent income and you're not using negative gearing today, you're essentially missing out on one of the smartest ways to reduce your tax and turn the ATO into your silent investing partner. In this piece, I cover what negative gearing is, how it works, and why it matters today more than ever. RELATED ATO capital gains tax warning as Aussies caught doing the wrong thing: 'Focus area' $1,000 ATO school fees tax deduction that Aussies don't realise they can claim Centrelink age pension changes coming into effect from July 1 Negative gearing is something that happens almost magically when the cost of owning an investment property (i.e. the loan interest and property expenses) is higher than the rental income you receive. In this case, your investment is essentially running at a loss — but the kicker is that you can claim that cost as a full tax deduction against your other taxable income (for example your employment salary). Let me lay this out with an example. You own an investment property worth $750,000 that costs you $50,000 each year in mortgage interest, strata, maintenance, etc, but you earn $30,000 annually in rental income. The difference is a $20,000 net loss, which you then use to reduce your taxable income. On the top marginal tax rate of 47 per cent, this $20,000 loss results in a $9,400 tax refund. That's pretty much half of the cost back just for owning a property that's going up in value anyway. And while it might seem a little scary to be running your investment at a loss, the income of your investment is only one part of the equation — the other is growth. Based on the long term Australian property growth rate of 6.3 per cent, your $750,000 property would be increasing in value on average by around $47,250 each year. The maths is solid on this one, you're paying $10,600 each year to get a gain of $47,250, meaning the net benefit to you is $36,650 each year. In this case, what you're really doing is swapping short term cashflow for long term growth — with the ATO footing part of the bill. The tax benefits of negative gearing are substantial, but there's an even bigger benefit from putting this into place — and it's getting you into the property market or securing your next property sooner. Australia's property market is increasing at an increasing pace, where over the last five years the median property value has increased by 38.4 per cent, adding over $227,000 to the value of the average property. This means that property values are effectively increasing by $3,775 every single month, making it hard to keep up — let alone get in front. If you're trying to save for a property deposit, you're losing ground with every month that goes past — and if you're waiting for interest rates to drop further, or the property market to 'settle down', you might be waiting forever. Negative gearing can help you get into the property market sooner, because it makes holding a property more affordable, which in turn increases your ability to borrow from the bank. And as you can see from the example in the previous section, once you get this strategy in place, the net benefit to you is in the tens of thousands each year. This strategy definitely isn't something for everyone, but where there's a fit it can work very effectively. For this to fit for you, you'll need to have enough spare cash to fund the cashflow cost of holding the property. You'll also need some funds for your deposit, or equity you can use through a family guarantee type loan. The final piece is that you need the ability to hold your property investment for 7-10 years or more, to give your investment time to benefit from a full property market cycle. If you go down this path, it almost goes without saying — but just to say it, choosing a quality property that will be a good long term investment is critical, as is managing your borrowing risk. If you're covering a cashflow burn in the short term, you need to make sure you're benefiting from the value growth on the other side. If you're not, you're just paying money to hold an asset that's not growing, which is a bit of a financial disaster. It's important you do your research and get some good advice before you jump into the property. Most people think that waiting to buy property gives you more time to save, but in Australia's property market today that delay can be seriously costly. If a $750,000 property grows at the 6.3 per cent long term average, after one year it's increased by $47,250 to $797,250. That means you'll then need to borrow an extra $11,250, save an extra $7,500 for your deposit, and potentially even fund a higher LMI premium. And on top, you miss out on the $9,400 in tax refunds from negative gearing. That means the total extra cost of waiting a year is over $75,000, and you often only realise after it's too late. Negative gearing isn't about just trying to dodge tax, it's about using the rules to your advantage and playing the long game, smarter. Even if you're earning good money, it can be hard to keep up — let alone get ahead, unless you know how to make your money work for you. Negative gearing allows you to get into the property market sooner, cut your tax bill, build your investment assets, and stay ahead of rising property prices. If you're sitting on the sidelines waiting for the right time, you should know that every year you wait could be costing you. Ben Nash is a finance expert commentator, podcaster, financial adviser and founder of Pivot Wealth. Ben's new book, Virgin Millionaire; the step-by-step guide to your first million and beyond is out now on Amazon | Audiobook. If you want some help with your money and investing, you can book a call with Pivot Wealth here. Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance in to access your portfolio
