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Yahoo
15 hours ago
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I'm a Self-Made Millionaire, but I Could Have Been Richer: My 3 Biggest Regrets
Every self-made millionaire has a different story of how they attained their wealth. While there are countless ways to build up your bank account, each approach requires focus, goals, commitment, a little luck and smart moves. Learn More: Check Out: For Andrew Lokenauth, a finance expert who leverages his Wall Street background to educate his millions of followers seeking investing and personal finance advice through his newsletter, Be Fluent in Finance, he found a strategy that got him to the top. Today, he's a successful entrepreneur who helps others increase their net worth, but he also lost a significant amount of money to financial mistakes that he estimates cost him a staggering $5 million in wealth. 'The worst part is that most were completely avoidable,' he said. Lokenauth has impressively achieved multimillionaire status, but his path wasn't easy — is it ever? He still has regrets, but reveals how he overcame his financial blunders and how others can avoid them in a candid interview with GOBankingRates. Regret #1: Not Maxing Out My 401(k) For employees with access to a 401(k), Lokenauth advises taking advantage of it and maxing it out. 'My biggest regret was not maxing out my 401(k) in my early 20s,' he said. 'I was making good money — about $100,000 to $300,000 — but I only contributed enough to get the company match. I thought I was being smart by keeping cash for opportunities.' The 'rookie' mistake cost him $1 million to $1.5 million in compound growth, he estimates. Explore More: Regret #2: Pulling Out of Investments Too Soon Lokenauth used timing to work in his favor early on, but timing wasn't on his side later when he misread the market and pulled out a large portion of his portfolio during a downturn — his second major regret. 'It was my failed attempt at timing the market,' he said. 'I was thinking I could outsmart everyone else and missed the recovery completely. The thing is, I was convinced I had special insight into market patterns.' That move cost him around $400,000 in lost gains. Regret #3: Letting Great Real Estate Deals Slip By Lokenauth's third regret is not buying certain properties when he had the chance because he thought the asking price was too high. 'That same property's worth four times more now,' he said. 'Sometimes I drive by it just to torture myself.' Despite these costly missteps, Lokenauth made some other smart moves that paid off in a big way. Timing Is Key When Building Wealth In 2008, the U.S. was in the midst of the Great Recession — the economic downturn triggered by a housing crash. The following year, Lokenauth graduated. And while many would have considered that bad timing, he didn't. 'While everyone was panicking, I was buying,' he said. 'Properties in NYC were practically on sale — and looking back, those real estate investments were game-changers. Same with the stock market.' How You Spend Your Salary Matters Besides turning a bad economy into an opportunity, Lokenauth's finance degree opened doors to high-paying jobs in the $100,000 to 300,000 range. But his paycheck didn't make him rich — it was how he invested his money. 'I lived well below my means and invested aggressively,' he said. 'We're talking 50% to 70% of my income going straight into investments — S&P index funds and tech stocks.' Boring Investments Work Best The real wealth builder for Lokenauth was what he invested in. He called it a 'boring-but-effective investment strategy.' 'I dumped money consistently into S&P 500 index funds and some tech stocks,' he said. 'Nothing fancy — just steady contributions month after month. And man, those early tech investments, particularly in companies everyone uses daily, really paid off. I also got into Bitcoin relatively early.' Lessons From Financial Mistakes Lokenauth may have lost a lot of money along the way, but he also learned valuable lessons that helped him become a multimillionaire. Understand how to pay taxes. 'I structured my business completely wrong in the beginning, paying way too much in self-employment taxes,' he said. 'A good CPA would've saved me at least $100,000 over those first few years.' Now he has a full team of tax professionals — expensive but 'worth every penny.' Don't wait for the perfect real estate deal. 'I missed countless good opportunities,' he said. 'My philosophy now is simple: If the numbers make sense and the location's solid, pull the trigger.' Don't overcomplicate investments. 'I spent way too much time chasing complex investment strategies when simple index funds would've done better,' he said. 'All those hours researching individual stocks, options trading, and hot tips from investment groups… Meanwhile, my boring index fund portfolio has consistently outperformed my active trading.' How To Avoid These Wealth-Building Mistakes Lokenauth not only advises his clients, but regularly shares tips through his newsletter and social channels on how to sidestep investing pitfalls. Here are five methods he recommends: Have a tax strategy from day one. Lokenauth says he saves 35% more on taxes annually just by structuring his finances correctly. 'That's money that goes straight into investments instead of to Uncle Sam,' he said. Assemble your wealth-building team early. Hiring professionals like tax strategists, financial planners and attorneys is essential. 'Sure, it costs $50,000+ annually now, but they've helped me structure deals that returned multiples of their fees,' Lokenauth explained. The power of boring investments can't be overstated. There's nothing wrong with basic index funds, and they require minimal effort. 'These days I put 80% of new money into index funds and only play with 20% in more speculative investments,' Lokenauth said. Timing matters — but don't wait forever. Don't hold out for the picture-perfect deal in real estate. 'I could've doubled my returns by starting five years earlier — just make sure you understand the risks, because overleveraging can wreck you fast,' he explained. Protect your assets. Lokenauth said he lost $200,000 in a lawsuit because his LLC structure wasn't set up correctly. 'Now everything's properly separated and insured — this seems obvious, but many skip this step until it's too late,' he said. Becoming a self-made multimillionaire doesn't happen overnight. For Lokenauth, the first million came after five years of savings and investing his salary. But the real wealth? That took a decade. 'That's when compound interest and appreciation started doing the heavy lifting,' he said. 'My early real estate investments doubled — then doubled again.' In addition, his index funds grew steadily, and his early tech and Bitcoin investments paid off. For Lokenauth, the first million was the hardest to achieve — but after that, his money started working for him. 'My investment income eventually surpassed my salary — that's when things got interesting,' he said. The road to millions was bumpy for Lokenauth, but small habits, like saving an extra $1,000 a month, made a huge difference over time thanks to compound interest. 'The core approach was pretty straightforward: Earn, save, invest, repeat,' he said. More From GOBankingRates 5 Steps to Take if You Want To Create Generational Wealth I'm a Financial Advisor: My Clients Who Retire Early All Do These 3 Things 4 Things You Should Do if You Want To Retire Early Dave Ramsey: The 3 Worst Mistakes People Make When Trying To Build Wealth This article originally appeared on I'm a Self-Made Millionaire, but I Could Have Been Richer: My 3 Biggest Regrets Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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4 days ago
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Should You Use Crypto To Purchase a Home? 4 Methods and Their Risks
If you're a fan of crypto, perhaps you've been thinking about the various ways to incorporate it into your financial life. Perhaps you've seen headlines claiming crypto mortgages are on the rise as the new way to buy some homes. Learn More: Read Next: However, before you set out to grab your next house with crypto, there are some precautions to keep in mind. Here's what financial experts told GOBankingRates about certain methods and their risks when using crypto to purchase a home. Convert-To-Cash Method Andrew Lokenauth, a money expert from Be Fluent in Finance, said the most straightforward method he's used with clients is converting crypto to cash first. 'I just helped a client last March sell $600,000 in bitcoin for their dream house in the suburbs,' he said. 'The thing is, most sellers still want good old-fashioned dollars, and this approach causes the least headaches with lenders.' Trending Now: Crypto-Backed Loans 'Let me tell you about a client who tried using a crypto-backed loan,' Lokenauth said. 'The market tanked right before closing, and they got hit with a massive margin call — lost about $75,000 in collateral. Not fun explaining that one to their partner.' Smart-Contract Escrows You may also want to take a look at escrow and mortgage opportunities that use crypto in the purchase of a home, but may offer some risk protection. 'It's possible to leverage your crypto for real estate purchases by using smart-contract escrows or stablecoin-pegged mortgages, which automate payments and reduce counterparty risk,' according to Chad Willardson, founder and president of Pacific Capital and City Treasurer of Corona, California. 'Tokenized property platforms allow fractional ownership, softening volatility by spreading exposure across multiple investors.' However, per Willardson, crypto's price swings remain a major risk — buyers should hedge with stablecoins or convert to fiat at closing. Blended Financing According to Willardson, regulatory ambiguity can slow or derail transactions, so work with title companies experienced in digital assets. 'As an alternative, consider blended financing: part traditional mortgage and part crypto loan to balance innovation with stability,' Willardson said. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 The 10 Most Reliable SUVs of 2025 The New Retirement Problem Boomers Are Facing This article originally appeared on Should You Use Crypto To Purchase a Home? 4 Methods and Their Risks Sign in to access your portfolio
Yahoo
4 days ago
- Business
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Should You Use Crypto To Purchase a Home? 4 Methods and Their Risks
If you're a fan of crypto, perhaps you've been thinking about the various ways to incorporate it into your financial life. Perhaps you've seen headlines claiming crypto mortgages are on the rise as the new way to buy some homes. Learn More: Read Next: However, before you set out to grab your next house with crypto, there are some precautions to keep in mind. Here's what financial experts told GOBankingRates about certain methods and their risks when using crypto to purchase a home. Convert-To-Cash Method Andrew Lokenauth, a money expert from Be Fluent in Finance, said the most straightforward method he's used with clients is converting crypto to cash first. 'I just helped a client last March sell $600,000 in bitcoin for their dream house in the suburbs,' he said. 'The thing is, most sellers still want good old-fashioned dollars, and this approach causes the least headaches with lenders.' Trending Now: Crypto-Backed Loans 'Let me tell you about a client who tried using a crypto-backed loan,' Lokenauth said. 'The market tanked right before closing, and they got hit with a massive margin call — lost about $75,000 in collateral. Not fun explaining that one to their partner.' Smart-Contract Escrows You may also want to take a look at escrow and mortgage opportunities that use crypto in the purchase of a home, but may offer some risk protection. 'It's possible to leverage your crypto for real estate purchases by using smart-contract escrows or stablecoin-pegged mortgages, which automate payments and reduce counterparty risk,' according to Chad Willardson, founder and president of Pacific Capital and City Treasurer of Corona, California. 'Tokenized property platforms allow fractional ownership, softening volatility by spreading exposure across multiple investors.' However, per Willardson, crypto's price swings remain a major risk — buyers should hedge with stablecoins or convert to fiat at closing. Blended Financing According to Willardson, regulatory ambiguity can slow or derail transactions, so work with title companies experienced in digital assets. 'As an alternative, consider blended financing: part traditional mortgage and part crypto loan to balance innovation with stability,' Willardson said. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth How Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on Should You Use Crypto To Purchase a Home? 4 Methods and Their Risks
Yahoo
05-07-2025
- Business
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Trump's Social Security Tax U-Turn — What Retirees Need To Know Now
On the campaign trail, President Donald Trump promised over and over that he wanted to end taxes on Social Security — a vow that retirees backed. However, in his 'Big Beautiful Bill,' there is no mention of his pledge. Instead, there is a proposal to give seniors over 65 a $4,000 deduction that could help lower taxes, CBS News reported. Learn More: Read Next: With the House having officially passed the bill on July 3, seniors will not get the tax break Trump guaranteed. Here's why the elimination of Social Security taxes is not in the bill, and what retirees should know. While plenty of retirees loved the idea of not paying taxes on Social Security, critics voiced concern over the unrealistic and unaffordable proposal. The Center on Budget and Policy Priorities stated it would be 'unwise' because of the cost factor, and money expert and founder of Be Fluent in Finance Andrew Lokenauth agreed. 'Removing Social Security taxes would've cost the program about $45 billion annually,' he said. 'The program's already facing serious funding issues, and taking away this revenue stream would've been like throwing gasoline on a fire.' He added, 'From what I've seen working with retirement planning, the Social Security trust fund's gonna run dry by 2033, and removing the tax would've made that happen even faster. The math just didn't work — and I think Trump's team knew it.' Be Aware: It's clear Trump broke his promise and is trying to rectify it with a $4,000 deduction called the 'enhanced deduction for seniors,' per CBS. According to Lokenauth, it can help some retirees. 'The temporary standard deduction increase is actually pretty significant for lower-income seniors,' he said. ' I worked with a client last month who'd benefit about $880 annually from this change — she's single, 68 and makes about $40K.' He went on to explain that, 'It's not as generous as eliminating Social Security taxes completely — that could've saved some retirees $2-3K annually — but it's targeted at folks who need it most.' But the concession wouldn't help everyone on Social Security. The maximum Social Security benefit in 2025 is $5,108/month, or $61,296 a year. 'If a retiree has even modest supplemental income — from a pension, IRA withdrawals or rental income — they're likely hitting the 85% taxable range, so no tax relief on Social Security means many retirees are handing Uncle Sam more of their fixed income than they expected,' Peter Diamond, a Federally Licensed Tax, Accounting, Real Estate, and Structure and Certified Bankability Expert® explained. With that in mind, Diamond said most retirees don't have other revenue sources. 'They're not flipping properties or trading options on their phones,' he said. 'They're living off what they saved, and Social Security is often the biggest piece. So when a campaign says you won't be taxed, then quietly drops it later? That's not just a political pivot — it's a punch to the wallet.' A major thing to note is that if Social Security is your only income, it's likely you won't pay federal tax. 'But once you hit certain income thresholds, the IRS starts dipping its hand in,' Diamond said. As of 2025, according to T. Rowe Price: If you're single and your combined income (that's adjusted gross income + nontaxable interest + 50% of your Social Security) is: Over $25,000, up to 50% of your benefits may be taxable. Over $34,000, up to 85% may be taxable. For married couples filing jointly: Over $32,000, up to 50% is taxable. Over $44,000, up to 85% is taxable. According to Lokenauth the income thresholds haven't changed since the 80s, which is 'nuts.' 'Due to inflation, about 50% of seniors now pay these taxes versus just 10% when implemented, and I see this impact every day — middle-class retirees getting pushed into higher tax brackets because these thresholds are never adjusted for inflation,' he explained. He added, 'From my experience working with retirees, most would rather see those thresholds updated than eliminate the tax entirely. That'd be a more targeted fix that wouldn't threaten Social Security's stability.' Another important key element to keep in mind regarding Social Security is knowing your strategy, meaning when you plan on collecting your benefits. The longer you wait, the higher monthly payment you'll receive. 'While you become eligible to claim your own Social Security benefits at age 62, that might not be the best filing strategy for you,' said Eric Mangold, CWS Founder of Argosy Wealth Management. This is especially true for married couples who could gain potential spousal benefits. According to Mangold, 'you should know what filing strategy makes the most sense for you and puts the most money in your pocket.' He explained, 'How you choose to file can mean the difference of tens of thousands, if not hundreds of thousands, of dollars over the course of your retirement.' There's no denying that Trump walked back his pledge to end Social Security taxes. He continued to make promises knowing the program is financially struggling, but not including the proposal in the bill was the right choice, according to Lokenauth because it would have worsened the situation. 'The program needs every revenue stream it can get,' he said. 'While Trump's original promise sounded great, it would've accelerated the program's financial problems.' Lokenauth explained, 'The standard deduction boost is actually smart policy. It helps lower-income seniors who really need it — I've seen firsthand how an extra $500 to $1000 annually can make a real difference for many of my retired clients living on fixed incomes.' Trump flipped his stance, and retirees will not receive the tax break on Social Security he vowed. While it would have been a win for middle-class retirees, it would have bankrupted the program, according to experts. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 7 Things You'll Be Happy You Downsized in Retirement The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on Trump's Social Security Tax U-Turn — What Retirees Need To Know Now
Yahoo
30-06-2025
- Business
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5 Best Personal Loans If You Have Bad Credit in 2025
Let's be real — having less-than-perfect credit can feel like a closed door when you need a loan. But don't stress. Whether you're trying to consolidate debt, cover an emergency or just need a little breathing room, there are solid personal loan options out there for people with bad credit. In fact, 2025 has brought some refreshingly flexible lenders into the spotlight. For You: Trending Now: Andrew Lokenauth, money expert and owner of BeFluentInFinance, has spent years helping clients navigate the tricky waters of bad credit loans. 'And let me tell you — there's way more options than most people think,' Lokenauth explained. Working with hundreds of clients has taught him some insider tricks about getting approved, even with credit scores in the 500s. Below are the best ones to help you get the funds you need, even if you have bad credit. First up, secured personal loans are your best bet. Lokenauth tells his clients to consider using their car or savings as collateral. Last month, he helped a client get a $10,000 personal loan at 8% interest by securing it with their paid-off vehicle — way better than the 25% or more they were looking at with unsecured options. See Next: Credit union loans are absolute gold mines for bad credit borrowers. Most people don't know this, but credit unions are non-profit and typically offer rates about 2% to 3% lower than traditional banks. 'I've gotten dozens of my clients approved through credit unions, even with scores around 580,' Lokenauth said. 'Let me share something about peer-to-peer lending platforms like Prosper and LendingClub,' Lokenauth said. He noted these platforms can be fantastic for bad credit. He's seen approval rates roughly 60% higher than traditional banks. Plus, their rates tend to be more competitive. Home equity loans are another solid option if you own property. According to US Bank, they can be used for more than renovating or fixing your home, including paying for college, consolidating debt and more. The interest rates are typically 4 % to 7% lower than unsecured loans because your house acts as collateral. But here's the thing — you have to be super careful with these. 'I've seen too many people risk their homes by defaulting,' Lokenauth said. Co-signed loans are another effective route. Having someone with good credit co-sign can drop your interest rate by 5% to 10%. But — and this is crucial — make sure you can make the payments. 'I've seen countless relationships destroyed over defaulted co-signed loans,' Lokenauth added. More From GOBankingRates Clever Ways To Save Money That Actually Work in 2025 This article originally appeared on 5 Best Personal Loans If You Have Bad Credit in 2025
