Author Topic: Kiplinger's 70 Ways to Build Wealth  (Read 4647 times)

DieHard_772

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Kiplinger's 70 Ways to Build Wealth
« on: March 14, 2017, 10:24:36 AM »
My wife, seeing my obsession these days with our financial planning, recently got me a year long subscription to Kiplinger's
(for the princely sum of $2!).  The first issue I got just happens to be the 70th Anniversary special issue, with the immediately
appealing title "70 Ways to Build Wealth" on the cover.  I'm finding this to be a treasure trove of great ideas for personal
wealth attainment.  Here are all 70 of ways it recommends wealth attainment (You will probably be familiar with all or most of these):

1. Save early and often
2. Create an emergency fund (I prefer the term "contingency" fund)
3. Make the most of employer incentives (ie 401ks for those of you employed, I'm self-employed)
4. Open a Roth
5. Ask a pro for advice (ie talk to a financial planner)
6. Polish your credit.
7. Kick it up a notch (ie open a brokerage account)
8. Set specific goals
9. Live like the invisible rich (ie live within/below your means)
10. Cultivate your career
11. Buy a Home (when you're ready)
12. Save for college as soon as your kids are born
13. Fill the gaps in home insurance (ie make sure home insurance covers things like special items, consider flood insurance etc)
14. Shield yourself from lawsuits (ie get liability coverage in your auto insurance, and uninsured-motorist coverage, as well as an umbrella policy for auto and home)
15.Get enough life insurance
16. Buy disability insurance
17. Make the most of Health Savings Accounts (ie use it as an investment tool, let the balance grow instead of using it for health expenses as much as possible)
18. Think stocks (Quote from article: "The best way to build wealth over the long haul is to invest in stocks.")
19. Guard your good name (ie. protect your credit rating)
20. Thwart ID thieves
21. Update your estate plan (ie will and other estate planning documents)

(22-31 are "10 Timeless Tips from Knight Kiplinger")
22. Wealth creation isn't a matter of what you earn. It's how much of it you save.
23. Your biggest barrier to becoming rich is living like you're rich before you are.
24. Pay yourself first.
25. No one ever got into trouble by borrowing too little.
26. Conspicuous consumption will make you inconspicuously poor.
27. The key to stock market success isn't your timing of the market. It's your time IN the market --the longer, the better.
28. Diversity, because every asset has its day in the sun--and its day in the doghouse.
29. Keep a cool head when others are losing theirs. When others are selling investments, it's usually a good time to buy.
30. Money can't buy happiness, but it can make unhappiness easier to bear.
31. Sharing your wealth with others is more fun than spending it on yourself.

32. Let Uncle Sam help pay for raising kids (ie take advantage of family tax breaks: dependent-care FSA and child-care credit.
33. Teach your children well (ie raise financially literate and responsible children)
34. Shelter retirement income (ie post retirement, draw from taxable account first)
35. Keep an eye on recurring fees (ie watch out for phone, cable, internet, bank fees, etc that add up over time)
36. Invest to beat inflation (ie buy TIPS etc)
37. Capitalize on a Windfall (ie when you get a windfall, stash your money for 6-12 months while you come up with a solid plan of what to do with it, including assembling a good financial team, etc)
38. Spread out your investments (ie balance with stocks and bonds)
39. Give emerging markets a shot.
40. Don't try to time the market (ie don't sell all your stocks, instead set an appropriate allocation and rebalance)
41. Take a flier on small stocks (Quote from article:  "After you've stashed money in an emergency fund and maxed out contributions to retirement acounts, consider taking a moonshot on stocks that could turbocharge your returns. Small, fast growing companies may be a good bet now because small companies should benefit from a focus on the healthy U.S. economy..")
42. Get a side gig (ie side hustle for increased earnings to pay off debt and save)
43. Rebalance regularly (ie "trim winners and add laggards to keep your mix intact")
44. Get on top of your spending
45. Set it and forget it (ie set up automated transfers for saving and investing each month)
46. Target your investing (ie use Target Date Index Funds)
47. Maximize credit card rewards 
48. Get all the insurance discounts you deserve ("Ask your auto and home insurers for a list of potential discounts.")
49. Tap the sharing economy (ie use Airbnb when traveling, and zipcar etc)
50. Reshop your car insurance every year 
51. Never pay retail, part 1 (ie Buy cars that are at least 3 years old)
52. Never pay retail, part 2 (use cash back sites for online purchases)
53. Negotiate for practically everything (haggle over cars and homes, and other things too... love this one)
54. Keep investing costs low (ie avoid high investing fees, duh!)
55. Trim your wireless costs (lower your sell phone bill, buy pre-owned phone etc)
56. Find the best airfare
57. Vow to be debt-free
58. Foster your philanthropic side (ie charitable giving as tax write off)
59. Use home equity strategically
60. Give to charity from your IRA
61. Make your wealth last (ie build a charitable fund that lasts for generations)
62. Pay off your mortgage
63. Take stock of where you stand (ie "estimate the future value of your current savings and see how much more you'll need to save to hit your retirement goal.")
64. Write down your plan.
65. Maximize social security (ie wait until age 70 to get maximum benefits)
67. Supersize your contributions (ie make extra contributions for 50 and older to IRA, or use SEP IRA if self-employed)
68. Retire to a place that's healthy, fun and tax friendly (suggested locations: Austin, Texas; Naples, Florida; Nashville; Philadelphia; Seattle)
69. Create savings buckets (Quote: "If you are forced to sell your investments in a bear market, especially at the beginning of retirement, your carefully liad plans for making your savings last the rest of your life could be in jeopardy. To avoid that scenario, create three 'buckets' for your savings. The first should hold enough cash, CDs, and other short-term investments to conver one to three years of living expenses, after factoring in guranteed income, such as Social Security. Create a second bucket with slightly riskier investments, such as intermediate-term bond funds and a few diversified stuck funds. The third bucket is for long-term growth: fill it with diversified stock and bond funds. As you draw down the first bucket, you eventually refill it with profits form the second bucket, and the second bucket gets refilled with gains from the thirds."
70. Cover long-term care (ie get Long-term care insurance, but plan accordingly to cover costs).

HOW MANY OF THESE ARE YOU DOING??
Discuss...
« Last Edit: March 14, 2017, 10:27:50 AM by DieHard_772 »

khangaroo

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #1 on: March 14, 2017, 12:14:00 PM »
I really like 22-31. Thanks for sharing!
"Live like no one else so that later you can live and give like no one else" - Dave Ramsey
My Story of How I Paid off $81k of Debt in 1 Year and got completely debt-free! http://khang-nguyen.com/?p=624

East River Guide

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #2 on: March 14, 2017, 12:22:00 PM »
Do you really need 70?

1.  Live below your means
2.  Pay yourself first

esq

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #3 on: March 15, 2017, 07:29:47 AM »
I like that there's 70.  Everyone will find the points that speak to them.

Plus it's good to have reminders - I don't think much about HSA's, but I need to.

Great list.
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DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #4 on: March 15, 2017, 10:57:26 PM »
I really like 22-31. Thanks for sharing!

You bet, khangaroo!

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #5 on: March 15, 2017, 10:58:41 PM »
I like that there's 70.  Everyone will find the points that speak to them.

Plus it's good to have reminders - I don't think much about HSA's, but I need to.

Great list.

I agree, esq.  There are so many items on that list to focus on, you could take 5 a year to focus on and I bet you would end up MASSIVELY well off

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #6 on: March 15, 2017, 10:59:21 PM »
Do you really need 70?

1.  Live below your means
2.  Pay yourself first

I guess it depends on you.  Obviously you got two important ones there. 

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #7 on: March 15, 2017, 11:12:33 PM »
My status on each item:

1. Save early and often
Well, really started doing this 2 years ago, wish I had gotten systematic before that, but NOW is best time to do it.
Quote
2. Create an emergency fund (I prefer the term "contingency" fund)
Yep, working on that. 
Quote
3. Make the most of employer incentives (ie 401ks for those of you employed, I'm self-employed)
   Not employed, so no 401s etc for me.
Quote
4. Open a Roth
  Yep!
Quote
5. Ask a pro for advice (ie talk to a financial planner)
  Haven't done this, but read a lot of books, also I'm in an investment group, and of course this Forum
Quote
6. Polish your credit.
  Yep!  Just gotta pay down this one card.
Quote
7. Kick it up a notch (ie open a brokerage account)
  Not currently buying stocks if that's what this means, but I do have IRAs.
Quote
8. Set specific goals
  Yep
Quote
9. Live like the invisible rich (ie live within/below your means)
  As much as possible!
Quote
10. Cultivate your career
  Definitely!
Quote
11. Buy a Home (when you're ready)
  Not yet
Quote
12. Save for college as soon as your kids are born
  No kids.
Quote
13. Fill the gaps in home insurance (ie make sure home insurance covers things like special items, consider flood insurance etc) 
We have renters insurance, and business insurance for our home office use
Quote
14. Shield yourself from lawsuits (ie get liability coverage in your auto insurance, and uninsured-motorist coverage, as well as an umbrella policy for auto and home)
Yep to liability and uninsured motorist,  no umbrella policy, but may do that later on as assets grow
Quote
15.Get enough life insurance
Nope, don't have life insurance.
Quote
16. Buy disability insurance
Quote
Don't have
17. Make the most of Health Savings Accounts (ie use it as an investment tool, let the balance grow instead of using it for health expenses as much as possible)
18. Think stocks (Quote from article: "The best way to build wealth over the long haul is to invest in stocks.")
Yes!
Quote
19. Guard your good name (ie. protect your credit rating)
Yep
Quote
20. Thwart ID thieves 
Well, I keep a good eye on my accounts
Quote
21. Update your estate plan (ie will and other estate planning documents) 
Don't have this, but helped my mom create her trust last year
Quote

(22-31 are "10 Timeless Tips from Knight Kiplinger")
22. Wealth creation isn't a matter of what you earn. It's how much of it you save. 
Yes, thank you!
Quote
23. Your biggest barrier to becoming rich is living like you're rich before you are. 
Love it
Quote
24. Pay yourself first. 
Always do
Quote
25. No one ever got into trouble by borrowing too little. 
Amen
Quote
26. Conspicuous consumption will make you inconspicuously poor. 
Yep
Quote
27. The key to stock market success isn't your timing of the market. It's your time IN the market --the longer, the better.
Yes
Quote
28. Diversity, because every asset has its day in the sun--and its day in the doghouse. 
Will do
Quote
29. Keep a cool head when others are losing theirs. When others are selling investments, it's usually a good time to buy.
I meditate on this concept a lot
Quote
30. Money can't buy happiness, but it can make unhappiness easier to bear. 
Hmm... very interesting
Quote
31. Sharing your wealth with others is more fun than spending it on yourself. 
Love it
Quote

32. Let Uncle Sam help pay for raising kids (ie take advantage of family tax breaks: dependent-care FSA and child-care credit. 
No kids
Quote
33. Teach your children well (ie raise financially literate and responsible children) 
Talking to my sister about finances, she has two children, 3rd on the way
Quote
34. Shelter retirement income (ie post retirement, draw from taxable account first) 
will keep that in mine
Quote
35. Keep an eye on recurring fees (ie watch out for phone, cable, internet, bank fees, etc that add up over time) 
Yep, as much as possible!
Quote
36. Invest to beat inflation (ie buy TIPS etc) 
Haven't done this yet
Quote
37. Capitalize on a Windfall (ie when you get a windfall, stash your money for 6-12 months while you come up with a solid plan of what to do with it, including assembling a good financial team, etc) 
Will love to!
Quote
38. Spread out your investments (ie balance with stocks and bonds) 
  Yes
Quote
39. Give emerging markets a shot. 
Yes
Quote
40. Don't try to time the market (ie don't sell all your stocks, instead set an appropriate allocation and rebalance) 
Yes
Quote
41. Take a flier on small stocks (Quote from article:  "After you've stashed money in an emergency fund and maxed out contributions to retirement acounts, consider taking a moonshot on stocks that could turbocharge your returns. Small, fast growing companies may be a good bet now because small companies should benefit from a focus on the healthy U.S. economy..") 
Interesting
Quote
42. Get a side gig (ie side hustle for increased earnings to pay off debt and save) 
My entire career is one big side gig...
Quote
43. Rebalance regularly (ie "trim winners and add laggards to keep your mix intact") 
My robo advisor automatically does this
Quote
44. Get on top of your spending
Yes
Quote
45. Set it and forget it (ie set up automated transfers for saving and investing each month)
Yes
Quote
46. Target your investing (ie use Target Date Index Funds)
Yes
Quote
47. Maximize credit card rewards 
Haven't done this, though my wife got a rewards card
Quote
48. Get all the insurance discounts you deserve ("Ask your auto and home insurers for a list of potential discounts.") 
Have done a bit, need to do more
Quote
49. Tap the sharing economy (ie use Airbnb when traveling, and zipcar etc) 
Would love to
Quote
50. Reshop your car insurance every year   
I love this, need to do more
Quote
51. Never pay retail, part 1 (ie Buy cars that are at least 3 years old) 
Yes
Quote
52. Never pay retail, part 2 (use cash back sites for online purchases) 
tried it for a bit, but it didn't quite click
Quote
53. Negotiate for practically everything (haggle over cars and homes, and other things too... love this one) 
Love it!
Quote
54. Keep investing costs low (ie avoid high investing fees, duh!) 
Yes
Quote
55. Trim your wireless costs (lower your sell phone bill, buy pre-owned phone etc) 
Yes
Quote
56. Find the best airfare
Yes
Quote
57. Vow to be debt-free
Yes
Quote
58. Foster your philanthropic side (ie charitable giving as tax write off) 
Something to plan on
Quote
59. Use home equity strategically 
Don't yet own a home
Quote
60. Give to charity from your IRA 
Something to consider
Quote
61. Make your wealth last (ie build a charitable fund that lasts for generations)
Something to consider
Quote
62. Pay off your mortgage   
Love it!
Quote
63. Take stock of where you stand (ie "estimate the future value of your current savings and see how much more you'll need to save to hit your retirement goal.") 
Yes
Quote
64. Write down your plan.
Yes!
Quote
65. Maximize social security (ie wait until age 70 to get maximum benefits)
Plan to
Quote
67. Supersize your contributions (ie make extra contributions for 50 and older to IRA, or use SEP IRA if self-employed) 
Plan to!
Quote
68. Retire to a place that's healthy, fun and tax friendly (suggested locations: Austin, Texas; Naples, Florida; Nashville; Philadelphia; Seattle) 
At this point not sure
Quote
69. Create savings buckets (Quote: "If you are forced to sell your investments in a bear market, especially at the beginning of retirement, your carefully liad plans for making your savings last the rest of your life could be in jeopardy. To avoid that scenario, create three 'buckets' for your savings. The first should hold enough cash, CDs, and other short-term investments to conver one to three years of living expenses, after factoring in guranteed income, such as Social Security. Create a second bucket with slightly riskier investments, such as intermediate-term bond funds and a few diversified stuck funds. The third bucket is for long-term growth: fill it with diversified stock and bond funds. As you draw down the first bucket, you eventually refill it with profits form the second bucket, and the second bucket gets refilled with gains from the thirds." 
I don't fully understand this but I like the idea behind
Quote
70. Cover long-term care (ie get Long-term care insurance, but plan accordingly to cover costs). 
Hmm


Boxcat

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #8 on: March 16, 2017, 03:10:47 AM »
I'll change number 32: By not having the standard 2.5 kids you'll save yourself the need to earn a minimum of 750k to pay for them.

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #9 on: March 18, 2017, 12:25:43 PM »
I'll change number 32: By not having the standard 2.5 kids you'll save yourself the need to earn a minimum of 750k to pay for them.

No doubt

begood

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #10 on: March 19, 2017, 08:37:15 AM »
Great list! Bookmarking. Of the first 21, we're doing (or have done, or did) 17.

Johnez

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #11 on: March 19, 2017, 03:53:11 PM »
Knight Kipling's first five are gold. List is pretty dang complete. The buckets one is interesting, kind of meshes well with the idea diversifying investments.

Jazzpolice

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #12 on: March 20, 2017, 09:01:06 PM »
My wife, seeing my obsession these days with our financial planning, recently got me a year long subscription to Kiplinger's
(for the princely sum of $2!). 

Whoa whoa whoa...hold on a minute.  How'd you score a great deal on that Kiplinger's subscription at $2?  Nicely done!

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #13 on: March 20, 2017, 09:48:56 PM »
My wife, seeing my obsession these days with our financial planning, recently got me a year long subscription to Kiplinger's
(for the princely sum of $2!). 

Whoa whoa whoa...hold on a minute.  How'd you score a great deal on that Kiplinger's subscription at $2?  Nicely done!

Lol.  I dunno. My wife found it, I'll ask her.

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #14 on: March 20, 2017, 09:50:11 PM »
Great list! Bookmarking. Of the first 21, we're doing (or have done, or did) 17.

Nice work!

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #15 on: March 20, 2017, 09:53:22 PM »
Knight Kipling's first five are gold. List is pretty dang complete. The buckets one is interesting, kind of meshes well with the idea diversifying investments.

Agreed:  this is a GREAT list.
the buckets one was the newest to me, I'm still absorbing the idea, thought it might be new to some others, that's why I quoted most of it.

begood

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #16 on: March 21, 2017, 06:05:31 AM »
1. Save early and often
2. Create an emergency fund (I prefer the term "contingency" fund)
3. Make the most of employer incentives (ie 401ks for those of you employed, I'm self-employed)
4. Open a Roth - By the time we figured out what this was, our income was too high to open one, and we haven't investigated back door strategies.
5. Ask a pro for advice (ie talk to a financial planner)
6. Polish your credit.
7. Kick it up a notch (ie open a brokerage account)
8. Set specific goals
9. Live like the invisible rich (ie live within/below your means)
10. Cultivate your career
11. Buy a Home (when you're ready)
12. Save for college as soon as your kids are born
13. Fill the gaps in home insurance (ie make sure home insurance covers things like special items, consider flood insurance etc)
14. Shield yourself from lawsuits (ie get liability coverage in your auto insurance, and uninsured-motorist coverage, as well as an umbrella policy for auto and home)
15.Get enough life insurance
16. Buy disability insurance
17. Make the most of Health Savings Accounts (ie use it as an investment tool, let the balance grow instead of using it for health expenses as much as possible)
18. Think stocks (Quote from article: "The best way to build wealth over the long haul is to invest in stocks.")
19. Guard your good name (ie. protect your credit rating)
20. Thwart ID thieves - Eh, all my financial accounts now have distinct user names and passwords - does that count?
21. Update your estate plan (ie will and other estate planning documents)

Hey, turns out we are doing (or did, or have done) 19 of 21. Yay, us! We don't currently own or rent (provided housing at spouse's job), so those questions don't apply at the moment.

katsiki

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #17 on: March 21, 2017, 11:54:39 AM »
Is the MMM secret getting out?  ER is on the cover of Money magazine also!

http://time.com/money/4697410/early-retirement-tips/?xid=homepage

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #18 on: March 22, 2017, 11:17:22 AM »
Is the MMM secret getting out?  ER is on the cover of Money magazine also!

http://time.com/money/4697410/early-retirement-tips/?xid=homepage

Yep, I read that article.  Many Moustachian type ideas on there.

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #19 on: March 22, 2017, 11:17:58 AM »

Hey, turns out we are doing (or did, or have done) 19 of 21. Yay, us! We don't currently own or rent (provided housing at spouse's job), so those questions don't apply at the moment.

Awesome job!

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #20 on: March 25, 2017, 11:59:20 AM »

Whoa whoa whoa...hold on a minute.  How'd you score a great deal on that Kiplinger's subscription at $2?  Nicely done!

Apparently my wife saw an email about getting magazine subscriptions for a year for $2.  She got four of them, including
Kiplinger's and Money Magazine for me.

begood

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #21 on: March 25, 2017, 12:10:12 PM »

Whoa whoa whoa...hold on a minute.  How'd you score a great deal on that Kiplinger's subscription at $2?  Nicely done!

Apparently my wife saw an email about getting magazine subscriptions for a year for $2.  She got four of them, including
Kiplinger's and Money Magazine for me.

Ah, better have her check that they won't "auto renew" at newsstand prices. It took me quite some time to get out of a couple of magazine subscriptions I'd done through magazines. com.

DieHard_772

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Re: Kiplinger's 70 Ways to Build Wealth
« Reply #22 on: March 26, 2017, 06:55:14 PM »


Ah, better have her check that they won't "auto renew" at newsstand prices. It took me quite some time to get out of a couple of magazine subscriptions I'd done through magazines. com.

Of course