Latest news with #Lokenauth
Yahoo
27-05-2025
- Business
- Yahoo
5 Surprisingly Great Assets Retirees Don't Think To Invest In
You may be thinking beyond the traditional investment opportunities, such as stocks and bonds, when looking for options during retirement. While those can provide solid returns, there may be lots of other options to consider. Be Aware: Find Out: Some financial experts shared with GOBankingRates their recommendations for assets that may be worth a look. Kevin Estes, CFP, founder of Scaled Finance, recommended home upgrades. He said they may be worth the hassle and cost and provide a positive return on investment. Estes also said adding an accessory dwelling unit could generate rental income and improve the property's value. Learn More: Another option that could be considered is startup investments. 'Investing in a small business or local startup could be a good investment,' Estes said. 'While there's certainly risk, a retiree may improve the odds by sharing their connections, experience and other resources.' According to Andrew Lokenauth, a money expert from Fluent in Finance, luxury watches have been one of his favorite recommendations lately. 'I suggest looking beyond the obvious choices to smaller watchmakers,' Lokenauth said. 'These pieces typically appreciate 5% to 10% annually, and they're a blast to collect. One of my clients started with a $15,000 piece and has built an impressive collection worth over $100,000.' Lokenauth called rare coins 'hidden gems.' 'I'm talking about specific niches like early American copper coins or certain mint errors. The key is specializing — I've got clients who've seen 15% to 20% returns by focusing on particular series or years,' he said. 'A client's time horizon, cash flow constraints and risk tolerance guide the appropriate mix of assets for their investment portfolio,' said Marguerita Cheng, CFP, CEO of Blue Ocean Global Wealth. 'Sometimes clients may neglect to include emerging markets, international or small cap stocks in their portfolio because these asset classes are perceived to be too risky or volatile.' In addition, Cheng said commodities can be valuable additions to an investment portfolio and serve as an inflation hedge. More From GOBankingRates 25 Places To Buy a Home If You Want It To Gain Value This article originally appeared on 5 Surprisingly Great Assets Retirees Don't Think To Invest In
Yahoo
21-05-2025
- Business
- Yahoo
8 Money Traps Millennials Fell For That Gen Z Avoids
When it comes to money, every generation learns a few lessons the hard way. Millennials came of age during recessions, a student loan crisis and the peak of avocado toast culture –racking up financial missteps along the way. Learn More: Consider This: According to Chris Heerlein, CEO of REAP Financial, millennials face significant challenges due to student loan debt, rising living costs and stagnant wages. Many entered the workforce during the Great Recession, leading to high debt burdens while trying to save for retirement and major life goals. He explained that these financial pressures are compounded by the increasing cost of healthcare and the difficulty of securing affordable housing, making long-term financial stability harder to achieve. But Gen Z? They're approaching money with a whole different mindset. From credit card chaos to housing headaches, here are the money traps millennials fell into that Gen Z is (so far) smartly sidestepping. According to the Education Data Initiative, millennials have the largest share of total student loan debt despite a declining average balance. Andrew Lokenauth, money expert and owner of BeFluentInFinance, has watched countless millennial clients struggle under crushing student loans — we're talking over $50,000 for degrees that didn't deliver the promised returns. He said his millennial clients often tell him they felt pressured to attend expensive schools because 'that's just what you did. 'But Gen Z. Man, they're different. I'm seeing them choose community college first, then transfer to state schools.' Or they're pursuing trade schools and certifications — smart moves that'll save them thousands. Read Next: According to Lokenauth, back in the day, millennials bought into this toxic 'hustle culture' mindset –burning themselves out working three to four gigs just to stay afloat. 'I still remember one client who was juggling a full-time marketing job, driving Uber at night and selling stuff on eBay,' he recounted. 'She was exhausted.' Gen Z, on the other hand, seems more focused on building actual sustainable businesses or investing in skills that'll boost their main career trajectory. They're playing the long game. 'Here's something that makes me angry: Millennials got absolutely destroyed by housing market timing,' said Lokenauth. Many graduated into the 2008 recession, couldn't buy when prices were low, then got priced out when the market recovered. Meanwhile, Gen Z is exploring creative housing solutions like house hacking and co-living arrangements. Plus, he said they're way more comfortable staying at home longer to build savings. Less stigma about it. After watching their parents lose retirement savings in 2008, many millennials developed this intense fear of the market. 'I can't tell you how many kept their money in savings accounts earning 0.01%,' Lokenauth noted. Gen Z, however, started investing through apps like Robinhood super early. Sure, some made rookie mistakes with meme stocks, but they're not afraid to put money to work in the market. Lokenauth said this one hits close to home as he's had many millennial clients with more than $20,000 in credit card debt from trying to maintain lifestyles they couldn't afford. 'Social media pressure was real,' the expert said. Gen Z seems more minimalist and intentional about spending. They're using buy-now-pay-later services more strategically and generally seem less interested in flexing material goods. Millennials often got stuck in dead-end jobs thinking they had to 'pay their dues.' Lokenauth said he spent five years doing this himself early in his career. 'What a waste,' he remarked. Gen Z understands job-hopping isn't bad and they're way better at leveraging their skills for higher pay. They're also more likely to start online businesses or monetize their talents directly. Through his practice, Lokenauth has noticed millennials often prioritized retirement savings over emergency funds — then got crushed when emergencies hit. Whereas, Gen Z watched this play out and tends to build cash reserves first. They've seen how quickly things can go sideways and want that safety net. Many millennials fell into the trap of increasing spending whenever their income went up. Lokenauth recalls one client who upgraded his apartment, car and wardrobe right after a promotion –then lost his job six months later. Gen Z tends to be more conscious about lifestyle creep and often maintains their basic living standards even as income grows. 'The thing is, millennials weren't dumb — they just faced some truly awful timing and received guidance that didn't match economic realities,' Lokenauth emphasized. Meanwhile, Gen Z had the advantage of watching and learning from these struggles. And from what Lokenauth has seen working with both generations, they're putting those lessons to good use. More From GOBankingRates 10 Cars That Outlast the Average Vehicle Sources REAP Financial, 'Who We Are: Our Financial Planning Team.' Education Data Initiative, 'Student Loan Debt by Generation.' BeFluentInFinance, 'About Us.' This article originally appeared on 8 Money Traps Millennials Fell For That Gen Z Avoids Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
8 Money Traps Millennials Fell For That Gen Z Avoids
When it comes to money, every generation learns a few lessons the hard way. Millennials came of age during recessions, a student loan crisis and the peak of avocado toast culture –racking up financial missteps along the way. Learn More: Consider This: According to Chris Heerlein, CEO of REAP Financial, millennials face significant challenges due to student loan debt, rising living costs and stagnant wages. Many entered the workforce during the Great Recession, leading to high debt burdens while trying to save for retirement and major life goals. He explained that these financial pressures are compounded by the increasing cost of healthcare and the difficulty of securing affordable housing, making long-term financial stability harder to achieve. But Gen Z? They're approaching money with a whole different mindset. From credit card chaos to housing headaches, here are the money traps millennials fell into that Gen Z is (so far) smartly sidestepping. According to the Education Data Initiative, millennials have the largest share of total student loan debt despite a declining average balance. Andrew Lokenauth, money expert and owner of BeFluentInFinance, has watched countless millennial clients struggle under crushing student loans — we're talking over $50,000 for degrees that didn't deliver the promised returns. He said his millennial clients often tell him they felt pressured to attend expensive schools because 'that's just what you did. 'But Gen Z. Man, they're different. I'm seeing them choose community college first, then transfer to state schools.' Or they're pursuing trade schools and certifications — smart moves that'll save them thousands. Read Next: According to Lokenauth, back in the day, millennials bought into this toxic 'hustle culture' mindset –burning themselves out working three to four gigs just to stay afloat. 'I still remember one client who was juggling a full-time marketing job, driving Uber at night and selling stuff on eBay,' he recounted. 'She was exhausted.' Gen Z, on the other hand, seems more focused on building actual sustainable businesses or investing in skills that'll boost their main career trajectory. They're playing the long game. 'Here's something that makes me angry: Millennials got absolutely destroyed by housing market timing,' said Lokenauth. Many graduated into the 2008 recession, couldn't buy when prices were low, then got priced out when the market recovered. Meanwhile, Gen Z is exploring creative housing solutions like house hacking and co-living arrangements. Plus, he said they're way more comfortable staying at home longer to build savings. Less stigma about it. After watching their parents lose retirement savings in 2008, many millennials developed this intense fear of the market. 'I can't tell you how many kept their money in savings accounts earning 0.01%,' Lokenauth noted. Gen Z, however, started investing through apps like Robinhood super early. Sure, some made rookie mistakes with meme stocks, but they're not afraid to put money to work in the market. Lokenauth said this one hits close to home as he's had many millennial clients with more than $20,000 in credit card debt from trying to maintain lifestyles they couldn't afford. 'Social media pressure was real,' the expert said. Gen Z seems more minimalist and intentional about spending. They're using buy-now-pay-later services more strategically and generally seem less interested in flexing material goods. Millennials often got stuck in dead-end jobs thinking they had to 'pay their dues.' Lokenauth said he spent five years doing this himself early in his career. 'What a waste,' he remarked. Gen Z understands job-hopping isn't bad and they're way better at leveraging their skills for higher pay. They're also more likely to start online businesses or monetize their talents directly. Through his practice, Lokenauth has noticed millennials often prioritized retirement savings over emergency funds — then got crushed when emergencies hit. Whereas, Gen Z watched this play out and tends to build cash reserves first. They've seen how quickly things can go sideways and want that safety net. Many millennials fell into the trap of increasing spending whenever their income went up. Lokenauth recalls one client who upgraded his apartment, car and wardrobe right after a promotion –then lost his job six months later. Gen Z tends to be more conscious about lifestyle creep and often maintains their basic living standards even as income grows. 'The thing is, millennials weren't dumb — they just faced some truly awful timing and received guidance that didn't match economic realities,' Lokenauth emphasized. Meanwhile, Gen Z had the advantage of watching and learning from these struggles. And from what Lokenauth has seen working with both generations, they're putting those lessons to good use. More From GOBankingRates 10 Cars That Outlast the Average Vehicle Sources REAP Financial, 'Who We Are: Our Financial Planning Team.' Education Data Initiative, 'Student Loan Debt by Generation.' BeFluentInFinance, 'About Us.' This article originally appeared on 8 Money Traps Millennials Fell For That Gen Z Avoids Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
The Smartest $20 to $50 You Can Invest for the Biggest Return, According to Experts
If you've ever felt like investing is only for people with thousands of dollars lying around, think again. You don't need to be the next Warren Buffett or win the lottery to start building wealth. Even small moves can lead to growth. In fact, according to investing pros, even just $20 to $50 can be a powerful first step toward a solid financial future. The key? Putting that money in the right place. Read Next: Check Out: While a single $20 bill won't turn into a mansion overnight, financial experts agree that starting small and being consistent is what truly matters. And when you pick smart, low-cost investment options, your humble little contribution can actually grow into something meaningful over time. Chris Heerlein, CEO of Reap Financial, advised investing in a low-cost index fund through a brokerage account with no trading fees. With fractional shares, you don't need hundreds to get started. You can set up weekly $20 to $50 automatic purchases into a total market exchange-traded fund (ETF). Over time, that small habit can add up. Be Aware: According to Andrew Lokenauth, money expert and owner of Fluent in Finance, the Vanguard S&P 500 ETF (VOO) is the perfect starting point. It tracks the S&P 500, and you can grab fractional shares through apps like Robinhood for as little as $1. He started with $25 in the ETF last March and said it's already up 12%. 'Not too shabby for such a tiny investment,' he said. The thing is, most people overlook how powerful small, consistent investments can be. Lokenauth personally puts $40 each month into the Vanguard Total Stock Market ETF (VTI) through M1 Finance. The platform lets you automate these micro-investments without fees eating into your returns. According to Vanguard, this ETF tracks the CRSP US Total Market Index and is diversified across growth and value styles. According to experts, the key with tiny investments is keeping fees nonexistent. That's why Lokenauth advised sticking to commission-free platforms. Traditional brokers could eat your $20 to $50 alive with fees. In fact, according to the Securities and Exchange Commission, fees can seriously dampen investor returns. A $100,000 portfolio with a 1% fee over 20 years will be worth $30,000 less than one with a 0.25% fee. So it's best to maximize your small investments and look for commission-free platforms when possible. Sure, choosing the right fund matters — but the real magic? It's in the habit. Apps and platforms, like Acorns, Betterment and many others, make it incredibly easy to automate tiny contributions — even as little as $5 a week. With automation, you're not relying on willpower or memory. You set it once, and it just happens. This is where consistency beats timing. Most people think you have to buy low and sell high or wait for the perfect market dip. But investing experts will tell you that time in the market is more important than timing the market. The longer your money has to grow, the more it can compound, and the easier it gets. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 10 Genius Things Warren Buffett Says To Do With Your Money 5 Little-Known Ways to Make Summer Travel More Affordable 6 Hybrid Vehicles To Stay Away From in Retirement Sources Chris Heerlein, Reap Financial Andrew Lokenauth, Fluent in Finance Vanguard, 'Vanguard Total Stock Market ETF.' Securities and Exchange Commission, 'How Fees and Expenses Affect Your Investment Portfolio.' This article originally appeared on The Smartest $20 to $50 You Can Invest for the Biggest Return, According to Experts 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
Yahoo
13-05-2025
- Business
- Yahoo
Elon Musk To Spend More Time With Tesla and Less With DOGE: How That Could Impact Your Wallet
As head of the Department of Government Efficiency (DOGE), Elon Musk pledged to cut $2 trillion in excess spending, waste and fraud, but after just 100 days he's scaling back his role. According to the DOGE website, Musk and his team have so far saved American taxpayers $165 billion, but due to 'entrenched set of interests,' the progress has been constrained. On Wednesday, April 30, Musk spoke from the White House and acknowledged DOGE's accomplishments but said the advancements could be greater. 'I think we've been effective, not as effective as I'd like; I think we could be more effective, but we made progress,' he said, per ABC News. Find Out: Read Next: While Musk has dedicated the majority of his time to DOGE, he will now work one or two days a week going forward. 'We're getting into more of a rhythm,' he said. 'My guess is I'll be in D.C. probably every other week.' The shakeup comes on the heels of Tesla's stock plunging 71%, leaving many to speculate his position at DOGE is changing to salvage his company. So what does this mean for DOGE and American's wallets? Musk has said things are 'manageable' at DOGE now and he's set the team up well to move forward without his daily presence, but some experts don't think it's a good look and that things behind the scenes will be unstable. 'Musk's reduced involvement with DOGE creates a significant leadership vacuum,' said money expert Andrew Lokenauth. 'This kind of shift typically leads to organizational drift — especially when the leader has been as hands-on as Musk.' As a result of Musk cutting his schedule way back, Lokenauth predicts there could be major issues within the agency that will require a complete restructure. 'The reduced oversight from top leadership often results in slower decision-making and decreased momentum,' he explained. 'The DOGE team will likely struggle to maintain the aggressive pace Musk set.' See More: Americans have mixed feelings over whether DOGE is actually doing good. But for those who support Musk's efforts, him stepping away could sway their trust and 'rattle some confidence,' according to Danny Ray, founder of PinnacleQuote, which helps Americans get life insurance. 'Americans are hoping that this agency isn't just another shiny idea that fades when the spotlight moves,' Ray stated. 'Musk shook the system, made folks uncomfortable in the right ways and pushed cost-cutting ideas into the mainstream.' However, with Musk shifting his focus, the question is can DOGE stay on track without its biggest disruptor at the wheel? Musk initially said he wanted to slash $2 trillion in waste — and then reduced that amount to $1 trillion — but that goal isn't likely if Musk isn't at the forefront, per Lokenauth. 'Reaching those ambitious savings targets seems increasingly unlikely with reduced oversight. I've spent years working on government efficiency initiatives, and I can tell you that maintaining momentum is crucial — you can't just set things in motion and step back,' he said. Musk's robust involvement gave DOGE credibility for many, but now efforts and savings could slow down. According to Lokenauth, 'The original DOGE initiatives targeting government waste could've saved the average household roughly $3,000 annually in taxes.' He explained, 'With reduced oversight, I estimate those savings will drop to $500-$750 per household. That's based on similar programs I've evaluated where leadership engagement decreased.' Musk is vague on whether he'll be replaced at DOGE. When asked if it's a possibility, he responded, 'Is Buddha needed for Buddhism?' per ABC News. Without stable leadership, Lokenauth doesn't believe Americans will see much savings. 'The timeline Musk's proposing — just one to two days per week — isn't enough to drive the kind of systemic change initially promised. I've never seen part-time leadership successfully execute this scale of transformation.' Ray also believes DOGE needs to stay on course to succeed. 'Overall, the impact on your wallet depends on whether DOGE stays focused on trimming the fat, or becomes another government program with good intentions and bad follow-through.' More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 4 Things You Should Do if You Want To Retire Early How Far $750K Plus Social Security Goes in Retirement in Every US Region 12 SUVs With the Most Reliable Engines Sources Andrew Lokenauth Danny Ray, PinnacleQuote This article originally appeared on Elon Musk To Spend More Time With Tesla and Less With DOGE: How That Could Impact Your Wallet 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
