Looking to maximize your investments and build long-term wealth? In this episode of Money on My Mind, I break down an easy-to-follow investment framework that anyone can apply to their financial situation. A listener, Sherry, asks: "In addition to a Roth IRA, what else should I be maxing out annually?" With a $160,000 income as our example, I walk through the exact steps to prioritize investment accounts, from employer-sponsored plans to HSAs and taxable brokerage accounts.
Whether you're just starting your investment journey or looking to optimize your existing strategy, this episode lays out the six-step investment framework to help you take control of your financial future. Plus, I share some key rules of thumb to ensure your money is working for you efficiently and automatically. Ready to build wealth? Let's dive in.
Episode Highlights:
[0:00] – Introduction
[1:06] – Understanding investment frameworks and why there's no one-size-fits-all approach
[2:26] – The three core accounts for most investors (401(k), IRA, and taxable brokerage)
[4:09] – How risk profile, age, and goals shape your investment approach
[5:04] – The first step: maximizing your employer match for guaranteed returns
[6:10] – Evaluating an Employee Stock Purchase Plan (ESPP) with a guaranteed discount
[6:47] – Choosing between a Roth and traditional IRA and when to prioritize each
[7:14] – Breaking down Sherry's $160,000 income example – where every dollar should go
[9:35] – Calculating your ideal savings percentage and how to automate it
[10:58] – The power of an HSA and when it makes sense to prioritize it
[11:17] – Why taxable brokerage accounts can be a game-changer for flexibility
[12:39] – Step-by-step guide to calculating biweekly and monthly contributions
[13:51] – Key investment principles: index funds, reinvesting dividends, and long-term thinking
[15:17] – How Budget Dog Academy can help you personalize your investment plan
Links & Resources:
• https://bookwithbudgetdog.com/ped
If you found this episode valuable, share it with a friend who's ready to level up their investments. Don't forget to subscribe, leave a review, and keep taking bold steps toward your financial freedom.
