These are all things I started doing in my 30’s, so if you’re thinking it’s too late for you it’s not! Promise.

DISCLAIMER: I am not a licensed financial advisor by any means haha, just the daughter of one. 

For years I didn’t realize the importance of what my dad did for a living, but I’m so grateful I have these things set up now so that I can start preparing for the future (zombie apocalypse here we come).

Roth IRA

This is a great way to make your savings work for you. The first few years you won’t see an immediate profit, but over time your money will gain interest and you won’t have to pay taxes on ANY of it. 

If I max out my Roth IRA each year, I will have over a million if I retire at the age of 65.

This is definitely a solution for money you want to put in the piggy bank with no intention of breaking it (you can but there will be a fee).

Use this Roth IRA Calculator to personalize your potential results from investing.

P.S. great news: they increased the amount you can contribute from $6,500 in 2023 to $7,000 for 2024.

HYSA (High Yield Savings Account)

For years I had my savings in a Chase Bank account accumulating a whopping .01% when I could have had it in a HYSA account accumulating 4.25% or more. I use Discover and I love it!

This is interest the bank pays you for banking with them (so nice of them, right?). You do have to pay taxes on the interest you make each year, and your bank will mail you the necessary documents to record that come tax season. 

Regardless, I’d rather pay taxes on 4.25% of free money than .01%! 

401k Match

You’ve probably heard this around before, but if your employer matches your 401k you shouldn’t pass up on that opportunity. If you opt in, your employer will match each penny you contribute to your 401k up to a certain percentage of your salary.

You’re already saving with the money your employer pays you, so this is a perfect way to get free money (though not tax free) from them and invest it.

 

Stocks

Honestly this one still scares me a bit because to me it’s the most high-risk of my investments. I took a great course with Her First 100K and here are some key takeaways that made me feel better about it.

• The historical odds of making money in U.S. markets are 50% over a one day period, 68% over a one year period, 88% in a 10-year period and 100% (so far) over a 20 year period.
• Millionaires are made when the stock market is down.
• Start with index funds.
• Be consistent, no matter how much or how little you start with.

Long story short, this is a very long-term solution but a great one to diversify your investments. 

I use M1 Finance because it allows you to buy pieces of pieces of a pie, instead of having to purchase the whole piece.

You’re Not Alone

Setting up finances to work for you in the future can feel alien and overwhelming.

When I started a couple years ago, I remember feeling like I had missed out on so much time and money because I didn’t understand all of the things I could do with both.

I totally get it and am super passionate about this, so if you ever want to talk it over I’m here for you!

Or I can get you an appointment with my dad, who can help you figure out a financial plan that works for you (no he is not sponsoring me lol).

I believe in you, you can do it! Here to help if you need it. 🙂