Driving Towards FIRE,  Financial Coaching Blog

Growing Your Money

Here’s a few little secrets on how to get your money to grow…

1. Pay off debts. All of them. Even your primary residence mortgage.

Once you do, you’ll have so much money left over at the end of the month you’ll be looking for ways to secure it so it’ll continue to grow. Now it’s time to let your money work for you by…

2. Investing Often. Not into individual stocks but maxing out your Roth IRA with Index Funds, Growth Funds, ETFs, & Mutual Funds like these are my favorites:
> ARKK Innovation ETF
> FXAIX Fidelity 500 Index Fund
> FBGRX Fidelity Blue Chip Growth Fund

Now that you are maxing out your Roth IRA every year at $6,000 growing tax free at a 10%-15% return rate, it’s time to diversify your money’s growth by…

3. Investing in Real Estate. This is the fun part. Tangible assets you can use and really maximize your ROI. I recommend these options:
> BRRRR – Buy, Rehab, Rent, Refinance, Repeat
> STR/VR – Short-Term or Vacation Rentals
> Live In, Then Rent, Then Sell

Looking ahead, you may want to secure a paycheck for each decade after you retire without taking withdrawals from your Roth IRA. Maybe you are interested in covering healthcare expenses as you get older. You can achieve this through…

4. Fixed Deferred Annuities. With an annuity you can defer your earnings to a specific age while your money grows conservatively at a fixed minimum rate (think savings bond).

Money does not or will not grow on trees, however, we have the ability to plant the necessary seeds using a variety of options to push our money to work for us. Retirement doesn’t have to be an age, it can 100% be a number. The 1st step to getting there is paying off debt, avoiding debt, and paying cash for everything.

How many of you are currently diversifying your investments?

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