Latest news with #FoguthFinancialGroup
Yahoo
13 hours ago
- Business
- Yahoo
4 Money Traps the Newly Wealthy Fall Into — and How To Avoid Them
Suddenly seeing more zeros in your bank account is an inexplicable feeling. Whether it's a big raise, a windfall or finally hitting your stride in business, coming into money can feel like a dream come true. But if you're not careful, that dream can quickly turn into a financial mess — fast. 'Getting rich in a hurry feels exciting, like winning a huge prize at the fair, but the rush can also make people trip over their own wallets,' said Andrew Gosselin, CPA, personal finance expert and senior contributor at SaveMyCent. Be Aware: Learn More: From lifestyle inflation to 'helping' everyone you know, the newly wealthy often fall into the same money traps. These are some of the most common pitfalls to watch out for, according to experts — and how to keep your money working for you, not against you. The first stumble, according to Gosselin, happens when spending climbs as fast as income. Forbes even called lifestyle inflation the 'silent drain on your finances.' A solid car might suddenly look old next to a shiny sports model, and a cozy house may feel small beside a mansion. But Gosselin recommended taking a deep breath before buying. 'Waiting one full day before any big purchase gives your brain time to ask whether this thing brings real joy or just quick sparkle. Saving that cash instead lets it grow into even bigger choices later,' he said. Michael Foguth, founder of Foguth Financial Group, had similar advice. 'One of the first things I tell clients who've just come into significant wealth — whether through inheritance, a business sale or a windfall — is to pause.' Check Out: A second trap is forgetting to draw a map for the money. When dollars show up without a plan, Gosselin said they tend to wander off into risky deals or sit in a low-interest account doing nothing. Writing a clear goal list helps every coin know where to go. He said a trusted professional who must put your interests first can polish that map so taxes stay low and investments spread out safely. 'Spending a little on good advice keeps you from spending a lot on mistakes,' he said. The thrill of wealth often whispers that you can double it fast, according to Gosselin. Shiny offers promise huge profits with almost no risk, yet most of these offers hide danger. Before you place money in any deal, he advised studying it until you can explain it in simple words to a friend. If it still sounds perfect, share the idea with your advisor and use only money you can afford to lose. 'Putting savings in a mix of safe bonds, broad stock funds and maybe a small slice of daring ideas keeps a fall in one area from squashing the whole pile,' he said. Family and friends may ask for loans because they know you have extra, Gosselin said. And while helping feels good, he said mixing money and love can end up twisting both. Instead, decide in advance how much you are willing to give without needing it back. If you choose to lend, put every promise on paper with dates for paying you back. Remember, saying no can feel hard, yet protecting your financial future helps everyone in the long run. 'Some people start paying for every dinner and vacation once their bank account swells,' Gosselin said. While picking up the bill once in a while is a kind gesture, doing it every time turns you into a walking wallet and can make others feel awkward. What should you do instead? Invite friends to split costs or choose fun activities that do not break the bank. 'True friends care more about shared time than fancy price tags,' he said. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard The 10 Most Reliable SUVs of 2025 Clever Ways To Save Money That Actually Work in 2025 This article originally appeared on 4 Money Traps the Newly Wealthy Fall Into — and How To Avoid Them Sign in to access your portfolio
Yahoo
13 hours ago
- Business
- Yahoo
Here's the Minimum Net Worth To Be Considered the Top 1% in Your 60s
Ever wonder how your nest egg stacks up as you near retirement? If you're in your 60s and curious about what it takes to break into the elusive top 1%, you're not alone. According to the Federal Reserve, the median net worth for Americans in their late 60s and early 70s is $266,400. That's much, much lower than what the elite are working with. Read More: Find Out: 'People often assume that a few million dollars in savings places them at the summit of the wealth ladder, yet the numbers tell a different story once you compare yourself with the true top one percent,' said Andrew Gosselin, CPA, personal finance expert, and senior contributor at Save My Cent. Whether you're just getting serious about wealth-building or already eyeing early retirement, here's what you need to know about the net worth benchmarks that define the financial elite in your age group. 'To be in the top 1% wealth bracket in your 60s, you're typically looking at a net worth north of $11 million in the U.S., though this varies depending on the state you live in,' said Michael Foguth, founder of Foguth Financial Group. 'But here's the thing, chasing that number alone won't guarantee peace of mind.' Gosselin agreed, noting that a person in their sixties usually needs between eleven and thirteen million dollars to break into that elite club in the United States. The threshold climbs because assets must cover not only daily living but also medical costs, longer life spans, and rising prices that quietly shrink the buying power of every dollar. 'A nest egg that looked enormous twenty years ago can feel average when groceries, travel, and housing have each ratcheted up in cost,' Gosselin explained. Discover Next: Inside that eleven to thirteen million target, Gosselin said the balance sheet of a typical one-percenter in their sixties often starts with a primary home valued near a million dollars. Add a rental property or two that contribute both appreciation and steady cash flow and you edge closer to the mark. Retirement accounts such as a 401(k) or IRA frequently carry another million or more because long stretches of tax-advantaged growth compound quietly in the background. 'A diversified mix of stocks, bonds, and alternative holdings like private equity fills in several hundred thousand more and guards against relying on a single asset class,' said Gosselin. Moreover, cash reserves of at least one hundred thousand remain essential for unplanned events, allowing other investments to keep working without forced sales when markets dip. Gosselin explained that a net worth of about one million dollars can secure top one percent status worldwide, though that figure varies greatly from one country to another. Residents of Monaco, for example, may still need well over twelve million to stand out, while families in emerging economies reach the same percentile with much less. Location, therefore, plays a pivotal role in how far each dollar stretches and how exclusive a wealth bracket is. But according to Foguth, what matters at that stage in life is how well your money supports your lifestyle. 'Are your retirement goals covered? Do you have a plan for healthcare and legacy giving?' He's worked with clients who aren't in the top 1%, but said they sleep better at night than some who are, simply because they've got a solid financial plan in place. 'Wealth is relative, and in your 60s, the goal should be financial freedom, not just financial flex,' said Foguth. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 4 Affordable Car Brands You Won't Regret Buying in 2025 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on Here's the Minimum Net Worth To Be Considered the Top 1% in Your 60s
Yahoo
5 days ago
- Business
- Yahoo
3 Tips to Afford Multiple Major Expenses at the Same Time
Ever feel like all your big expenses decided to show up at once, like uninvited guests to a party you didn't plan? Maybe you're saving for a wedding, your car suddenly needs repairs and your rent just went up. Learn More: Read Next: Juggling multiple major expenses can feel overwhelming. And it's no joke. Even Newsweek reported that Americans are suffering from financial burnout. But with the right strategies, it's totally possible to stay afloat (and even ahead). 'When life throws several big expenses at you all at once–maybe you're buying a house, replacing your car, and starting a family–it can feel like your wallet's being pulled in every direction,' said Michael Foguth, Founder of Foguth Financial Group. Here are some practical tips to help you manage it all without losing your mind — or your savings. If all of a sudden you add a home, a new car, children and college costs to your budget, focusing your efforts is wiser than dealing with each of these the same way, said Chunyang Shen, Finance Expert and Co-Founder of Jarsy. For expenses, he recommended considering how pressing they are, what you pay for them and what profits or advantages you'll enjoy. Be sure to put down on your list those aims that have a fixed time frame such as saving for a home down payment or dealing with medical expenses for your baby. Next, Shen said you need to look at costs that are flexible such as buying a new car or contributing to a 529 education fund that can be adjusted. If everything's working with your car, waiting to buy for another 6-12 months may help you prepare for other important bills. 'It's useful for clients to think about having money for now, later, and in the years ahead,' he explained. Here's a breakdown: Immediate Bucket: you hold funds for immediate needs and required expenses. Medium-Term Bucket is meant for your children's future and a new car. Long-Term is assigned to their education and retirement. He advised adjusting your monthly contributions according to what life throws at you. 'Realizing that it's important not to fall behind in college doesn't mean you should put getting out of high-cost debt on the back burner.' So, while loans, scholarships, and aid help cover college expenses, you shouldn't borrow money when trying to save for the future. You can find it easier to manage your money when the monthly costs of your mortgage or auto loan don't reduce your savings by much, said Shen. Even so, he noted that it's important to avoid taking out loans with high interest or on credit cards–doing so is damaging to your future finances. Once done, go ahead and update and examine your marketing strategy. Establish a system for saving and paying bills and every three months examine your budget. 'Rapidly changing times mean that your financial plan should change as well.' More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 10 Cars That Outlast the Average Vehicle This article originally appeared on 3 Tips to Afford Multiple Major Expenses at the Same Time
