Money Magic —Gold Nuggets from Personal Finance expert
“Money Magic” — An Economist's secrets to more money, less risk, and a better life —is a book by Laurence Kotlikoff is a must have personal finance book for this generation.
Laurence Kotlikoff isa professor of economics at Boston University, fellow of the American Academy of Arts and Sciences.
Some top tips from his book in this review —
Social Security has 13 benefits, most of which you’ve probably never heard of. With Social Security, it’s use it or lose it. If you don’t file for a benefit for which you are eligible, you’ll be giving up free money. Your job is to get what's yours.
Social security is not a gift, you earn them by contributing 12.4% FICA contributions on every dollar.
Social security provides enormous incentive to delay collecting your retirement benefits
Roth conversions let you expand your asset balances in Roth IRA
HSA’s, FSA’s, 529 plans can reduce a lot of tax over the lifetime.
Fixed rate mortgages have one great feature — they hedge against inflation since you repay watered-down dollars
Consider working for yourself. It comes with maximum job security.
The biggest 401(k)/IRA/Roth tax benefit isn’t deferring taxes but shifting taxes to low-bracket years
I-Bonds and TIPS are terrific assets to have regardless of your investment strategy.
Sell your employer short. No matter how much you lover your company, sell it short if possible
Mortgages are tax and financial losers. Pay them off as fast as possible
Your living standard is your bottom line. Simulate its potential paths based on alternative investment and spending strategies to see where these strategies can lead you
The richer you are, the less you should invest in stocks
Avoid income-driven federal student loans unless you’re absolutely sure you’ll always be a low earner
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Top 15 Super Investor stocks — https://medium.com/@investmentmonks/super-investors-portfolio-top-15-stocks-49045f5ac124
Happy Investing !!!
