Thu Oct 31 2024, by Tyler Gardner

Five Things I Will Not Do With My Money Heading Into 2025

Hello, I'm Tyler, a former financial advisor and portfolio manager. I now create financial content for free so you don't have to pay for it. Here are five things I will avoid with my money as we approach 2025:

1. Not Keeping Money in a High-Yield Savings Account

I will not keep my money in a high-yield savings account thinking it’s a good long-term investment. By definition, it's not an investment at all. It's great for short-term needs, but with interest rates dropping, if this is for your long-term goals, wouldn't you rather have the return on that money going up, not down?

2. Not Investing Heavily in Stocks

I would not invest too heavily in stocks if you haven't already. The market has been on a tear, and while I don’t have a crystal ball and don't time the market, I can assure you that the reckoning is coming. When it does, you always want to leave yourself an out if it's the only money you've got.

3. No Longer Investing in a Roth IRA

I will no longer be investing in a Roth IRA. Being over 40 and in a higher tax bracket, I believe I’ll be in a much lower tax bracket when I retire and start taking distributions. I’d prefer to take advantage of the tax benefits now in traditional and pre-tax accounts rather than in a Roth.

4. Not Paying Off My Mortgage Early

I still would not put one extra dime towards paying off my mortgage early. I locked in a 30-year fixed rate at 3.25%. As long as I can continue to achieve guaranteed post-tax returns elsewhere, I’ll appreciate having cheap debt.

5. Continuing to Cut My Own Hair

Lastly, I’m still not going to pay for a haircut. It’s been five years of self-cuts, and it certainly beats whatever was happening to my head at Supercuts. Although that tea tree massage was worth the 20 bucks!

If any of this has been helpful, please like and follow for more tips, and I’ll continue to help you get one step closer to where you need to be.

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