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2 days 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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2 days ago
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Top 5 Estate Planning Strategies To Avoid ‘Great Wealth Transfer' Taxes
The United States is about two years into a Great Wealth Transfer that will see an estimated $84.4 trillion in assets pass from older to younger generations by 2045. Generational wealth preservation is a priority for many of these families, and for some, minimizing tax liability is an important way to achieve it. Trending Now: Learn More: Several types of tax can impact wealth transfers. They include estate tax (40% in 2025), as well as capital gains tax on appreciated assets and ordinary income taxes on tax-qualified accounts, according to Matthew Chancey, Certified Financial Planner and author of 'Tax Alpha Solutions: Effective Tax Management Strategies For High-Net-Worth Investors.' In 2025, estate tax only applies to estates that exceed $13.99 million ($27.98 for married couples) in fair market value, per the IRS website. Beginning next year, the exemption increases to $15 million, according to the Tax Foundation. However, Chancey noted even if your estate isn't impacted by estate tax, your heirs could still have capital gains and income tax to deal with. GOBankingRates spoke with Chancey and other financial advisors about the strategies they use to help their clients minimize taxes on transferred wealth. Take Advantage of Step Up in Cost Basis 'One of the best parts of the tax code is called 'stepped up cost basis at death,' which means when our parents pass on and leave assets to us as heirs […] capital gain taxes can be avoided since the assets are now considered to have stepped up their cost basis to current FMV [fair market value], thus eliminating any capital gains,' Chancey said. You can use this strategy for a variety of appreciating assets, including taxable brokerage accounts and real estate. To visualize how this works, say the cost to acquire your home (its cost basis) was $200,000, and its fair market value is $400,000 now. If you gift the home to your child and they later sell it for $500,000, they'll pay capital gains tax on $300,000 ($500,000 less the $200,000 cost basis). If, on the other hand, they inherit the house and sell it for $500,000, they'll only pay capital gains tax on $100,000 — $500,000 less the stepped up basis of $400,000. Consider This: Reconsider Joint Ownership Some families like to jointly title property as a means of estate planning, according to Allison Harrison, founder and principal attorney of ALH Law Group, which specializes in estate planning for the LGBTQ+ community. However, this approach is problematic. 'The property is now subject to all the owner's creditors, and the survivor does not get a step-up in basis for capital gains purposes,' Harrison said. Take Out Permanent Life Insurance 'Life insurance is a great way to provide access to capital today, but grow it in a tax free way for the beneficiaries,' Harrison told GOBankingRates. A properly structured whole life policy, for example, is a permanent life insurance policy that can accrue interest on a tax-deferred basis and earn dividends tax-free, per Guardian. Under most circumstances, your beneficiaries won't have to pay income tax on insurance money that passes to them directly, in one lump sum, according to the IRS. Keep Gifts at $19,000 per Year or Less You pay gift tax of up to 40% if your gifts exceed the lifetime limit of $13.99 million (for 2025). For tax year 2025, gifts of up to $19,000 per year, per recipient, don't count toward the lifetime limit. Nor do they count toward your $13.99 million estate tax exemption, as they do if they exceed $19,000. The rules are the same for the generation-skipping tax on gifts to anyone at least 37.5 years younger than you, per TurboTax. 'Hugely important for people over the $15 million exemption level [for 2026]. That is potentially a double tax without planning,' warned Matthew Wiley of Wiley Law. You can work around the gift limits entirely by paying the recipient's tuition, health insurance or unreimbursed medical bills instead of gifting them cash or other assets. These payments are non-taxable as long as you pay them directly to qualified schools or to insurance companies or healthcare providers, according to Jackson Hewitt. Place Assets in an Irrevocable Trust A trust allows a third party, called a trustee, to hold assets you transfer into the trust for beneficiaries you designate. After you die, the trustee distributes the assets to the beneficiaries, according to Fidelity. An irrevocable trust can't be changed, but it can minimize estate tax and your heirs' income tax liability, while also shielding your estate from creditors and lawsuits. Wiley named the following irrevocable trusts as his favorite strategies for shielding wealth transfers against tax: Spousal lifetime access trust Irrevocable life insurance trust Domestic asset protection trust (available in select states) More From GOBankingRates 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on Top 5 Estate Planning Strategies To Avoid 'Great Wealth Transfer' Taxes
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3 days ago
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10 States Where Homeowners Are Most Likely To Benefit From Trump's SALT Tax Break
President Donald Trump's newly passed 'One Big Beautiful Bill' includes a major win for homeowners in high-tax states: a sharp increase in the State and Local Tax (SALT) deduction cap. The cap will jump from $10,000 to $40,000 for most taxpayers, allowing them to deduct more in property and income taxes from their federal returns. Check Out: Learn More: This change is especially impactful for homeowners in states with high property taxes, where many residents already exceed the $10,000 cap. According to a recent Axios analysis, these 10 states have the highest share of homes taxed at $10,000 or more, making their residents the biggest beneficiaries of the new deduction. 1. New Jersey Share of properties taxed at least $10,000: 39.9% Read More: Find Out: 2. New York Share of properties taxed at least $10,000: 25.9% Also See: 3. Connecticut Share of properties taxed at least $10,000: 19.4% 4. California Share of properties taxed at least $10,000: 19.3% 5. Massachusetts Share of properties taxed at least $10,000: 18.4% Also See: 6. New Hampshire Share of properties taxed at least $10,000: 16.3% 7. Illinois Share of properties taxed at least $10,000: 13.7% 8. Texas Share of properties taxed at least $10,000: 12.4% Also See: 9. Rhode Island Share of properties taxed at least $10,000: 9.3% 10. Hawaii Share of properties taxed at least $10,000: 8.9% Editor's note: Data was sourced from Axios and is accurate as of July 1, 2025. More From GOBankingRates 10 Genius Things Warren Buffett Says To Do With Your Money This article originally appeared on 10 States Where Homeowners Are Most Likely To Benefit From Trump's SALT Tax Break
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3 days ago
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Is Now a Good Time To Invest in Netflix? Here's What Experts Say
In an up-and-down year for the stock markets, one of the stalwarts has been Netflix (NFLX). The streaming giant's shares are up more than 37% for the year as of July 21 — well above the S&P 500's 7.7% gain in 2025. If you're looking to invest in Netflix, now might be a good time to buy. Many experts have a positive take on the stock and expect it to move well above its current price. Read Next: Explore More: Here are some expert takes on Netflix's stock right now. Strong Financials, Big Plans 'Netflix (NFLX) has been an absolute beast this year,' Edward Corona, a Florida-based trader and publisher of The Options Oracle Newsletter, told GOBankingRates. 'After consolidating for a stretch, it broke out hard and ripped higher, reclaiming all key moving averages with strong follow-through … It's one of the cleanest momentum setups out there, and I think $1,400 is a realistic target if this trend continues.' Netflix's winning stock performance this year is partly attributable to it robust financial results and partly to its ambitious future plans, The Globe and Mail reported. During the 2025 first quarter, Netflix logged 13% year-over-year revenue growth and a 25% earnings gain. Both results easily topped analyst estimates. Netflix reported second quarter earnings on Thursday, July 17. According to Yahoo, the company beat expectations and raised guidance for the full year, which are positive signs. However, the stock did fall a bit due to the very high expectations imposed on the company. Check Out: Trillion-Dollar Club? Meanwhile, Netflix is confident enough about the future that it eyes a $1 trillion market cap, The Wall Street Journal reported earlier this year. That's a lofty goal, considering that its current market cap is about $514.6 billion. To get there, the company aims to double its yearly revenue, grow its ad sales, triple its operating income and grow its worldwide audience to 410 million subscribers by 2030, per The Wall Street Journal. What the Analysts Say Most analysts are upbeat about Netflix's near-term prospects and largely recommend buying the stock. Here are the ratings for analysts recently surveyed by The Wall Street Journal. Buy: 30 Overweight: 6 Hold: 18 Underweight: 0 Sell: 1 The average price target for those analysts is $1,331.36, which isn't far off Netflix's current price. But other analysts are much more bullish. As TipRanks noted, Wedbush Securities analyst Alicia Reese recently reiterated a 'Buy' rating on the stock, setting a price target of $1,400. Reese cited the company's ability to increase its ad-tier revenue — a strength that Corona also mentioned. 'Ad-tier adoption is growing, password-sharing crackdown worked and they're managing content spend better than ever,' Corona said. Analysts from Needham & Co. and BMO Capital also have bullish price targets on Netflix, MarketBeat reported. Needham recently set a $1,500 price target on the stock, while BMO set a target of $1,425. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Warren Buffett: 10 Things Poor People Waste Money On 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on Is Now a Good Time To Invest in Netflix? Here's What Experts Say Sign in to access your portfolio
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3 days ago
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10 States Where Homeowners Are Most Likely To Benefit From Trump's SALT Tax Break
President Donald Trump's newly passed 'One Big Beautiful Bill' includes a major win for homeowners in high-tax states: a sharp increase in the State and Local Tax (SALT) deduction cap. The cap will jump from $10,000 to $40,000 for most taxpayers, allowing them to deduct more in property and income taxes from their federal returns. Check Out: Learn More: This change is especially impactful for homeowners in states with high property taxes, where many residents already exceed the $10,000 cap. According to a recent Axios analysis, these 10 states have the highest share of homes taxed at $10,000 or more, making their residents the biggest beneficiaries of the new deduction. 1. New Jersey Share of properties taxed at least $10,000: 39.9% Read More: Find Out: 2. New York Share of properties taxed at least $10,000: 25.9% Also See: 3. Connecticut Share of properties taxed at least $10,000: 19.4% 4. California Share of properties taxed at least $10,000: 19.3% 5. Massachusetts Share of properties taxed at least $10,000: 18.4% Also See: 6. New Hampshire Share of properties taxed at least $10,000: 16.3% 7. Illinois Share of properties taxed at least $10,000: 13.7% 8. Texas Share of properties taxed at least $10,000: 12.4% Also See: 9. Rhode Island Share of properties taxed at least $10,000: 9.3% 10. Hawaii Share of properties taxed at least $10,000: 8.9% Editor's note: Data was sourced from Axios and is accurate as of July 1, 2025. More From GOBankingRates 6 Hybrid Vehicles To Stay Away From in Retirement This article originally appeared on 10 States Where Homeowners Are Most Likely To Benefit From Trump's SALT Tax Break
