Many people believe IRA stands for Individual Retirement Account, but it’s actually an Individual Retirement Arrangement, as outlined in the IRS tax code. An IRA isn’t an investment itself—it’s a tax-advantaged container you use to hold investments like mutual funds, CDs, stocks, and bonds. Depending on the type of IRA, your contributions and withdrawals are taxed differently:

• Deductible IRA: Tax-deductible contributions, taxable withdrawals.
• Roth IRA: No tax deduction upfront, but tax-free withdrawals later.
• Non-Deductible IRA: No tax deduction upfront; earnings are taxable at withdrawal. Contribution limits vary based on income, age, and marital status and are adjusted periodically by Congress.

Importance of Rebalancing Investment Portfolios

Rebalancing is a powerful strategy that ensures you’re buying low and selling high without trying to predict market performance. By periodically adjusting your asset mix, you can increase long-term returns and reduce risk. We rebalance our accounts based on past performance, a method that has proven successful and reliable.

Managing 401(k) Funds After Changing Jobs

When you leave a job, I recommend rolling over your 401(k) into an IRA. This avoids taxes and penalties, provides broader investment choices, and frees you from your former employer’s administrative constraints. IRAs also simplify future withdrawals and reduce management fees.

Gift Tax Exemption Rules

In 2025, you can give up to $19,000 per year to any number of individuals without triggering gift taxes. Couples can double that amount to $38,000 per recipient. Larger gifts up to $13.99 million per individual or $27.98 million per couple can be given tax-free under the unified credit provision, but this reduces the estate-tax-free amount for heirs. Ric also mentioned using trusts like Crummey Trusts to structure these gifts for future use.

Investing in Commodities

Commodities like gold, oil, and agricultural products can add diversification to your portfolio, but Ric recommends limiting them to no more than 5% of your holdings. These are high-risk, high-volatility assets best accessed through ETFs to reduce transaction costs and tax complexity.

Social Security and Retirement Planning

While Social Security isn’t going away, Ric warned it may become less generous over time. He urged attendees not to rely on it as a primary income source and to focus instead on personal savings and investment strategies. For 2025, the maximum monthly Social Security benefits are:

• Retiring at age 62: $2,831
• Full retirement age (67): $4,018
• Retiring at age 70: $5,108

College Financial Aid Strategies

Education reporter Kim Clark joined the session to discuss smart college planning. She emphasized affordability, advising families to apply to multiple schools to encourage competitive financial aid offers. She noted that some universities, like Carnegie Mellon, match aid from similar institutions. Kim also favored 529 plans over tuition prepayment plans due to the latter’s financial instability.

Leveraging Savings Programs Like Upromise

Upromise is a practical way to earn college savings by registering grocery and credit cards, earning small rebates on everyday purchases. Families can involve grandparents and friends to boost contributions. While this won’t replace a college fund, it can easily cover incidental costs like textbooks.

Retiree Regrets and Planning for Satisfaction

More than half of affluent retirees regret not planning earlier for a meaningful retirement. He stressed the importance of envisioning your ideal post-career life and saving with that vision in mind—not just to survive, but to thrive.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post Building Financial Success with IRAs, Rebalancing and College Savings appeared first on ROI TV.

The System Isn’t Designed to Make Me Rich

Let’s be honest: the economic system doesn’t reward people like me just for working hard. It rewards investors, not employees. Banks make billions off people who carry credit card debt. Corporations grow by encouraging us to spend more. The government hands out tax breaks to the wealthy who own assets—not to the middle-class worker trying to make ends meet.

And while inflation keeps eating into my paycheck, the prices of groceries, gas, rent, and everything else just keep climbing. If I didn’t understand how the system works, I might feel hopeless. But instead of giving up, I decided to take control of what I can.

Taking Ownership of My Financial Life

I used to think my financial problems were someone else’s fault—my employer, the government, the economy. But blaming the system doesn’t solve my problems. I had to stop pointing fingers and start asking myself tough questions. Was I spending more than I earned? Was I investing consistently? Did I have a plan?

Once I got honest with myself, I realized that personal accountability is my greatest financial asset.

How I Started Building Wealth

I began by following one rule: spend less than I earn. That meant cutting unnecessary expenses and setting up an emergency fund. My first goal was to save $2,000 for unexpected expenses—just enough to avoid going into credit card debt for life’s surprises.

Then I got serious about high-interest debt. I focused on paying off credit cards and payday loans, which can drain you with interest rates north of 20%. Once I had those under control, I turned to investing.

Always Be Buying

I didn’t wait for the perfect time to invest—I started with what I had. I follow a simple principle: Always Be Buying (ABB). Whether the market is up or down, I invest a set amount into index funds like VTI, SPY, or VOO. These give me exposure to the broader economy and top U.S. companies without needing to pick stocks.

To make it easier, I automated my investments so money gets pulled from my checking account every month. It’s hands-off, consistent, and effective.

Keeping It Simple and Staying Consistent

When I first started investing, I felt overwhelmed. I thought I had to know everything about the stock market. But I learned that simplicity wins. Broad market funds give me diversification without stress. I may make mistakes, but the biggest mistake would be doing nothing at all.

Playing the Long Game

Building wealth isn’t about overnight success. It’s about choosing discipline over comfort for a decade. I’ve committed to a “decade of sacrifice,” where I spend less, earn more, and invest the difference. If I stick with it, I know I’ll reach financial freedom—where my investments cover my living expenses, and I’m no longer dependent on a job to survive.

Bridging the Financial Education Gap

I wasn’t taught this in school. Most of us weren’t. We were trained to become employees, not investors. That’s why I’ve made financial education a personal mission—reading books, watching experts, and learning how the system works. If I want to succeed in a system built for investors, I have to think and act like one.

Final Thoughts

The system might not be fair—but I’m not powerless. By understanding how it works and taking responsibility for my financial life, I’ve started building real, lasting wealth. And the best part? Anyone can do it. It just takes commitment, consistency, and a willingness to start.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

The post Why So Many High Earners Are Broke and How I’m Building Wealth Anyway appeared first on ROI TV.

The article argued that holding too much in checking is a lost opportunity for earning interest. That’s true. The national average APY for checking accounts is around 0.07%. That means your money is essentially sitting still. If you’re not planning to spend it in the short term, you could be missing out on better returns through high-yield savings accounts, CDs, or long-term investments like index funds.

Another point raised was how behavioral economics plays into spending. When your checking account looks full, you’re more likely to spend. Tools like debit and credit cards make this even easier. Separating your spending money from your savings or emergency funds can help you stay disciplined. This is why I recommend using different accounts for different goals—just like financial experts suggest.

Now let’s talk about FDIC insurance. The article brought up the $250,000 coverage limit. While that’s a real limitation, it’s irrelevant for most of us managing balances around a few thousand dollars. Still, if you’re holding large amounts of cash, spreading it across different banks can ensure full FDIC protection.

The article also claimed that a higher balance could hurt your chances of getting a loan. This one made me laugh. In reality, lenders view higher balances as a sign of financial stability. Having money in the bank doesn’t make you a credit risk—it often does the opposite.

One valid concern? Fraud. Keeping a large balance in your checking account can make you a bigger target. Scams are more sophisticated than ever, with AI-generated voices, impersonations, and phishing attempts. Use strong passwords, two-factor authentication, and never respond to financial advice in the comments section of YouTube. Trust me, no real advisor is DMing you to “invest in crypto.”

So how much should you keep in your checking account? Most experts recommend one to two months’ worth of expenses, plus a 30% buffer for unexpected bills or delays. Personally, I check my accounts often and adjust based on my monthly needs and upcoming expenses.

Everyone’s financial situation is different, so there’s no one-size-fits-all rule here. But the key takeaway? Don’t let catchy headlines make you second-guess yourself. If your checking account gives you peace of mind, that’s worth something, too.

Let me know in the comments how much you prefer to keep in your checking account—and why. I love hearing how others approach this everyday money decision.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post Should You Keep More Than $3,000 in Your Checking Account? appeared first on ROI TV.

1. Understanding Financial Challenges and Economic Changes

The past few years have brought financial hardships for many, from inflation to job losses. Economic cycles include both prosperity and downturns, so preparing for future challenges is essential. Instead of reacting to financial difficulties, taking proactive steps can help you stay afloat and thrive.

2. Budgeting: The First Step to Financial Control

One of the best ways to avoid going broke is to create and stick to a budget. Without a clear understanding of income and expenses, it’s easy to overspend.

Use a Budgeting Tool – The EveryDollar app (or similar tools) can help track your money.
Categorize Expenses – Identify needs (rent, food, utilities) vs. wants (subscriptions, dining out).
Adjust Spending Habits – Trim unnecessary expenses and live within your means.

A budget isn’t about restriction—it’s about taking control and reducing financial stress.

3. Eliminating Debt for Long-Term Financial Stability

Debt is one of the biggest obstacles to financial freedom. Relying on credit cards or loans to cover expenses only creates more problems in the long run.

How to Get Out of Debt Fast

Stop Borrowing – Avoid taking on new debt.
Use the Debt Snowball Method – Pay off smallest debts first to gain momentum.
Increase Payments – Earn extra income or cut expenses to pay off debt faster.

Being debt-free means keeping more of your income, allowing you to build savings and invest in your future.

4. Building an Emergency Fund

Unexpected expenses happen—car repairs, medical bills, or job loss can wreak havoc if you’re not prepared. That’s why an emergency fund is crucial.

How Much to Save?

Starter Fund: $1,000 to handle small emergencies.
Full Emergency Fund: 3-6 months of expenses once debt-free.

How to Build Your Fund Fast

• Sell unused items.
• Take on a side hustle (freelancing, rideshare, delivery, etc.).
• Cut non-essential expenses (e.g., streaming services, eating out).

A solid emergency fund prevents financial panic and keeps you from falling back into debt.

5. Increasing Income and Cutting Expenses

If you’re struggling to make ends meet, increase your income while reducing unnecessary costs.

Ways to Boost Income

Side hustles – Drive for Uber/Lyft, deliver for DoorDash, or start freelancing.
Ask for a raise – If you’ve been at your job for a while, it may be time to negotiate.
Learn a new skill – Upskill in areas like digital marketing, coding, or sales to improve job opportunities.

Easy Ways to Cut Expenses

• Cancel unused subscriptions.
• Cook at home instead of dining out.
• Use public transportation to save on gas.

Making small changes adds up quickly and frees up money to build savings and pay off debt.

6. Fully Funded Emergency Fund for Financial Security

Once you’ve eliminated debt, expand your emergency fund to cover 3-6 months of expenses.

Why It Matters?

• Covers major life events (job loss, medical emergency, home repairs).
• Prevents living paycheck to paycheck.
• Provides financial peace of mind.

Tip: Keep emergency funds in a high-yield savings account for easy access and better interest rates.

7. Investing and Wealth Building

Once your finances are stable, it’s time to grow your wealth.

Attend an Investing Essentials Event – Learn from experts like Dave Ramsey and George Kamel about 401(k)s, mutual funds, and real estate investing.

Why Invest?

Long-term wealth growth – Your money works for you.
Retirement security – Avoid financial stress in later years.
Passive income opportunities – Build financial independence.

Final Thoughts

Avoiding financial hardship isn’t about luck—it’s about making smart financial decisions. By budgeting, eliminating debt, building savings, and investing, you can create a secure future.

What’s your biggest financial goal this year? Drop a comment below!

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post How to Avoid Going Broke appeared first on ROI TV.