How good are you with your money?Take this 2 minute quiz to get your financial wellness score!
Click Here to Start*Bonus: Learn about my new book, Get Good with Money

Meet the Get Good With Money Girls

Meet the Get Good With Money Girls

By TheBudgetnista -  Tags:

Are you ready to learn about investing?

Here's the deal... in my experience many women are a little frightened by investing.

Let's look at the stats...

  • According to Money magazine, some women miss out on approximately $1 million in investments in comparison to their male counterparts over the course of their professional lives. 
  • According to Fidelity, women make smarter investments than men by 0.3%. (Yes, a small number, but WE’LL TAKE IT).

You know my saying: We budget so we can save; save so we can invest; and invest so we can grow wealth.

You may also know that I recently announced my first book with a major publishing house, titled Get Good With Money

One of the ten steps of what I like to call “Financial Wholeness'' is actually dedicated to investing… BUT I know how often women run away from the topic. (Trust me, with more than 10 years in the game I’ve seen some things… HECK I ran from investing too).

That’s where the Get Good With Money Girls come in! Ashley, Maria, and Tamara are all at different income levels, with unique goals and needs, yet they are all starting on their 2021 goal of INVESTING. Follow their stories on my social media platforms and blog to find simple strategies to invest at any stage of the game.

I’ve been in the lab with Jully, a.k.a the Investing Latina, to create this easy way for us to learn about investing...by following some women who have some of the same "life" things going on that you and I do.

Hey Jully!

Hey Get Good With Money Girls! I’m Jully, Founder of Investing Latina. I’m an award-winning money expert, writer, producer, and youtuber and I’m extremely passionate about inspiring women to invest. Tiffany and I teamed up to show you just how simple it can be to start investing with our series: “Investing 101 with the Get Good With Money Girls''. Throughout the year, we will be breaking down investing terms, showing you different scenarios, and answering all of your investing questions along the way. We will be going live regularly to talk about investing, so be sure to follow TheBudgenista & Investing Latina to join our chats and to get all the goodies that we’ll be sharing. 

I want to get started by introducing you to three amazing (fictional) women - from completely different backgrounds, living in different parts of the United States, and making different salaries. One is just starting her career as a teacher, one is an Executive Assistant & Mom, and the other is a Solopreneaur. Although they have different paths and different experiences, they share one thing in common: a desire to build wealth by investing and to secure their retirement. I’m going to give each of them an investment strategy based on how much they make, their goals, and most importantly: how to use the tax codes to protect and grow their money.

This week we talk about choosing the best account to meet your unique needs.

Meet Ashley a 24 year old teacher in St. Louis, MO

Salary: $35k/year 

Ashley’s 2021 Retirement Investment Goal: $2,560

Accounts she will be using: 403(b), and Roth IRA

Why invest: Ashley recently graduated and doesn’t have too much money to spare, but she can start small now and slowly work her way up. She’s going to contribute up to the company match and also use a Roth IRA to invest outside of her work-sponsored account. 

Why these accounts: Since Ashley has access to a work-sponsored retirement account, that’s always the best place to start. I know they call it “saving for retirement”, but you’re really INVESTING, which many people don’t realize. Also, Ashley’s company is offering her a MATCH, that’s like “free money”, which is a nice benefit perk to have. If she doesn’t contribute, she will miss out on that money that her company is gifting her for retirement investing. 

Now, outside of work Ashley is going to open a Roth IRA. IRA stands for Individual Retirement Arrangement, and it’s something you can do on your own, at any investment institution. A Roth IRA is an amazing retirement account that does a few amazing things but the biggest one is: it allows you to invest post-tax and you never have to pay taxes on the money you put in or the money you make through that investment account. Isn’t that amazing?! 

Opening a Roth IRA: to name a few of my favorite, you can use fidelity.com, vanguard.com, etrade.com to open Roth IRAs. Many other institutions offer IRAs, too!


Meet Maria a 33 year old professional mom from Charlotte, NC

Salary: $75k/year

Maria’s 2021 Retirement Investment Goal: $8,850

Accounts she will be using: 401k, 529, and Brokerage

Why Invest: Maria has done ok with saving for retirement by saving up to the company match of 3%, but she wants to bulk up her accounts and she also wants to invest for her kids. Her ultimate goal is to build generational wealth.

Why these accounts: Maria has been using her 401k at work for some time now, and she understood early on that getting the company match is “free money” that she should always take advantage of. This year, she wants to invest more so I’m going to have her increase her 401k contributions. In a 401k, the maximum that the employee can contribute is $19,500 (in 2021, and this amount goes up a little every few years), and this doesn’t include the company max! Aside from that, she will also create college savings plans for her kids via a 529 vehicle. 529s are designed to help save (and invest) for educational expenses. So these accounts will help pay for tuition, books, room & board, a computer, and more while her kids are in college. The money grows tax-free, so the tax savings on the money earned in the account is a big plus. 

Lastly, Maria’s 3rd type of investment account will be a brokerage. So there are no tax benefits like there are on her other two types of accounts, but it’s another vehicle for building wealth. What’s great about investing using a brokerage account is the flexibility you have. There is no penalty to take money out, she’s not restricted on how much she can put into the account, and she has access to any funds or stocks she’s interested in investing in. It’s important to note that for Maria, we will focus on long-term investing - because we want to avoid paying short-term capital gain tax! Remember that understanding taxes is a big part of investing and building wealth, so Maria is going to do what she can to minimize her tax liability. We’ll learn more about taxes throughout the year, so stay tuned for the journey. 

Opening a 529 in North Carolina: https://www.cfnc.org

Opening a brokerage: you can use any investment bank to open a brokerage. I once again recommend Vanguard.com, Fidelity.com, or Etrade.com. 


Meet Tamara, a 42 year solopreneur in New York City, NY

Salary: $125k/year

Tamara’s 2021 Retirement Investment Goal: $14,400

Accounts she will be using: Roth IRA, Solo 401k, and Brokerage

Why Invest: Tamara has never invested for retirement because she has never had access to an employer sponsored account, but that doesn't mean she can’t invest for retirement using an Individual Retirement Account (IRA) and other accounts that she has access to.

Why these accounts: Tamara will be using these accounts because she has to open her own accounts since she doesn’t work for a company. Opening a Roth IRA will be her beginning point and introduction to investing for the first time. Remember that anyone with earned income can open and contribute to an Individual Retirement Arrangement. In this case, I am having Tamara use a Roth IRA, where she will be contributing up to the limit of $6,000 into this post-tax account allowing it to grow over the years, as her business and income grows. Since she is a small business owner, I’ll also have her open a Solo 401k through her business. This is an awesome account because it will give her the ability to invest more than any other retirement account. The limit on this account is $57,000 for 2021, and although Tamara won’t be maxing it out, she’ll definitely be using it to her advantage. Tamara also wants to have the flexibility of a brokerage just like Maria did, so she will have a brokerage account that she will be contributing a small amount to every month. 

Opening a Roth IRA, a solo 401k, and brokerage: you can use any investment bank to open a brokerage. I recommend Vanguard.com, Fidelity.com, or Etrade.com although there are many more options out there! 

Have an investing question, you can #AskMeMoneyThings by texting Jully at 917-636-4049 or by clicking here.

Are you good with money? Take my Financial Wholeness quiz by clicking here.

See you in the next episode...


Disclaimer: Please keep in mind that we are not certified financial planners, and that by investing you take on risk, so be sure to not construe this as investment advice, but rather as educational content.

Get FREE Weekly Goodies!

Join the mailing list to get FREE weekly budgeting goodies directly to your inbox.
Tiffany “The Budgetnista” Aliche is quickly becoming America's favorite, personal financial educator. The Budgetnista is also an Amazon #1 best selling author (The One Week Budget and Live Richer Challenge), sought-after speaker and teacher of financial empowerment.
DISCLAIMER: Please read this Disclaimer carefully before using the www.thebudgetnista.com Website (the "Website") operated by CLD Financial Life ("us," "we," "our") as this Disclaimer contains important information regarding limitations of our liability. Your access to and use of the Website is conditional upon your acceptance of and compliance with this Disclaimer. This Disclaimer applies to everyone, including, but not limited to: visitors, users, and others, who wish to access or use the Website.

By accessing or using the Website, you agree to be bound by this Disclaimer. If you disagree with any part of this Disclaimer, then you do not have our permission to access or use the Website.

Tiffany “The Budgetnista” Aliche is not a lawyer, accountant, credit analyst or investment broker. Information Tiffany Aliche provides during her presentations is for informational and educational purposes only. Tiffany Aliche assumes no responsibility or liability for any errors or omissions in the content provided. The content Tiffany Aliche shares in this video, workshop and/or presentation is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness. The information shared is from Tiffany’s personal experience wherein she increased her credit score, reduced her taxes, increased her earnings and shifted her business organization. Any reference to credit scores that “Jump like Jordan” should be taken figuratively—not literally. Any reference to credit scores that Jump like Jordan is not a guarantee that your score will increase similar to Tiffany Aliche.

Tiffany Aliche’s personal success is not a reliable indicator of future results. It is very important to do your own analysis before making any financial, legal or accounting decisions based on your own personal circumstances. You should take independent financial advice from a professional, or independently research and verify any information before implementing any information that Tiffany Aliche shares and you wish to rely upon.

Affiliate Disclaimer: We participate in the https://thebudgetnistablog.com/favorite-things/ affiliate advertising program, which is designed to provide a means for us to earn fees by linking to their products or services on our Website. The fact that we participate in this affiliate program means that https://thebudgetnistablog.com/favorite-things/ compensates us for the inclusion of links that are clicked on and our reviews.

Changes: We reserve the right to amend this policy at any time without any prior notice to you.
© Copyright 2020 - The Budgetnista Blog - All Rights Reserved
magnifier
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram