This is the No. 1 habit self-made millionaires share—and it’s also the most overlooked, says money expert

Nearly all of the self-made millionaires I interviewed said one of their top priorities was cultivating “rich relationships” and avoiding the “toxic” ones. ‘Rich relationships’ are about mindset, not moneyIt’s important to note that a “rich relationship” is defined by mindset, rather than wealth. “I limit my exposure to toxic, negative people,” one individual in the wealthy group of my study told me. As for the people who often contribute to “toxic relationships,” they usually have a very pessim


Nearly all of the self-made millionaires I interviewed said one of their top priorities was cultivating “rich relationships” and avoiding the “toxic” ones. ‘Rich relationships’ are about mindset, not moneyIt’s important to note that a “rich relationship” is defined by mindset, rather than wealth. “I limit my exposure to toxic, negative people,” one individual in the wealthy group of my study told me. As for the people who often contribute to “toxic relationships,” they usually have a very pessim
This is the No. 1 habit self-made millionaires share—and it’s also the most overlooked, says money expert Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: tom corley
Keywords: news, cnbc, companies, selfmade, individuals, toxic, shareand, taking, overlooked, millionaires, dont, relationships, theyre, money, habit, expert, wealthy, seeking, work, rich


This is the No. 1 habit self-made millionaires share—and it's also the most overlooked, says money expert

You are who you associate yourself with

That’s what I discovered through my “Rich Habits” study, in which I spent five years interviewing and researching the daily activities, habits and traits of 233 wealthy individuals (with at least $160,000 in annual gross income and $3.2 million in net assets) and 128 low-income individuals (with at least $35,000 in annual gross income and $5,000 in liquid assets). It’s human nature to associate ourselves with like-minded people with whom we feel the most comfortable. The ultra wealthy and successful, however, are a lot more selective when it comes to who they allow into their inner circle. Nearly all of the self-made millionaires I interviewed said one of their top priorities was cultivating “rich relationships” and avoiding the “toxic” ones.

‘Rich relationships’ are about mindset, not money

It’s important to note that a “rich relationship” is defined by mindset, rather than wealth. In other words, individuals who contribute to rich relationships don’t necessarily have big bank accounts (though they do know how to save money and don’t spend recklessly), but they all have lofty goals and aspirations — and they spend much of their time trying to achieve them. “I limit my exposure to toxic, negative people,” one individual in the wealthy group of my study told me. “Some of them may bring you down and infect you with their negativity, which can undermine your ability to creatively find solutions to problems and overcome obstacles.” And it makes sense, doesn’t it? Those with a positive attitude are better able to stay focused on seeking and finding solutions to their problems. Positivity can make you a problem-solver, whereas negativity can make you a problem-finder. Based on my research, individuals who contribute to rich relationships have at least one or several of the following traits: Positive mental outlook: They’re the entire opposite of downers; they bring an upbeat and optimistic type of energy to the table.

They’re the entire opposite of downers; they bring an upbeat and optimistic type of energy to the table. Gratitude: They are appreciative and focus on what they have, not what others have.

They are appreciative and focus on what they have, not what others have. Encouraging attitude : They inspire and motivate others to pursue their dreams.

: They inspire and motivate others to pursue their dreams. Hard work ethics : They take action on their goals and never quit.

: They take action on their goals and never quit. Health-oriented : They devote time to taking care of their physical and mental health. This might mean engaging in leisure time or exercising.

: They devote time to taking care of their physical and mental health. This might mean engaging in leisure time or exercising. Humility: They see egotism as a deficiency.

They see egotism as a deficiency. Future-oriented: They invest in themselves and for the long-term, instead of seeking instant gratification.

They invest in themselves and for the long-term, instead of seeking instant gratification. Open to feedback : They accept feedback — from their friends, colleagues, family and mentors — and see it as a means to pivot what they’re doing in order to achieve success.

: They accept feedback — from their friends, colleagues, family and mentors — and see it as a means to pivot what they’re doing in order to achieve success. Loyalty: They are trustworthy, responsible and reliable.

They are trustworthy, responsible and reliable. Authenticity: They don’t pretend to be someone they aren’t. This is because they like who they are.

They don’t pretend to be someone they aren’t. This is because they like who they are. Influence : They have some degree of influence, power or recognition in their field of work. They can open doors for others that otherwise would have been closed.

: They have some degree of influence, power or recognition in their field of work. They can open doors for others that otherwise would have been closed. Curious: They seek to improve their knowledge and skills in topics they want to learn more about. This might mean going the library, taking an online class or actively seeking mentors. As for the people who often contribute to “toxic relationships,” they usually have a very pessimistic view on everything and a “poor, poor me” attitude. They rarely take any sort of responsibility for the circumstances in life.

Nurturing ‘rich relationships’


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: tom corley
Keywords: news, cnbc, companies, selfmade, individuals, toxic, shareand, taking, overlooked, millionaires, dont, relationships, theyre, money, habit, expert, wealthy, seeking, work, rich


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Cyber threats are a top risk for most banks and corporations worldwide, expert says

Cyber threats are a top risk for most banks and corporations worldwide, expert says3 Hours AgoAlessandro Roccati, senior vice president of the Financial Institutions Group at Moody’s, discusses the growing cybersecurity threats to global lenders.


Cyber threats are a top risk for most banks and corporations worldwide, expert says3 Hours AgoAlessandro Roccati, senior vice president of the Financial Institutions Group at Moody’s, discusses the growing cybersecurity threats to global lenders.
Cyber threats are a top risk for most banks and corporations worldwide, expert says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-10
Keywords: news, cnbc, companies, worldwide, moodys, corporations, roccati, vice, says3, threats, president, lenders, cyber, senior, risk, banks, expert


Cyber threats are a top risk for most banks and corporations worldwide, expert says

Cyber threats are a top risk for most banks and corporations worldwide, expert says

3 Hours Ago

Alessandro Roccati, senior vice president of the Financial Institutions Group at Moody’s, discusses the growing cybersecurity threats to global lenders.


Company: cnbc, Activity: cnbc, Date: 2019-10-10
Keywords: news, cnbc, companies, worldwide, moodys, corporations, roccati, vice, says3, threats, president, lenders, cyber, senior, risk, banks, expert


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Stanford psychology expert: This is the No. 1 work skill of the future—but most fail to realize it

It’s 9 a.m.: You walk into the office, sit down, fire up your computer and attempt to start your workday. A lack of focus comes at a costThe challenge at work, of course, has always been to dodge things that distract us. In 1971, the psychologist Herbert A. Simon emphasized that a wealth of information means a dearth of something else: attention. Researchers have been telling us that attention and focus are the raw materials of human creativity and flourishing. That said, being indistractable is


It’s 9 a.m.: You walk into the office, sit down, fire up your computer and attempt to start your workday. A lack of focus comes at a costThe challenge at work, of course, has always been to dodge things that distract us. In 1971, the psychologist Herbert A. Simon emphasized that a wealth of information means a dearth of something else: attention. Researchers have been telling us that attention and focus are the raw materials of human creativity and flourishing. That said, being indistractable is
Stanford psychology expert: This is the No. 1 work skill of the future—but most fail to realize it Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: nir eyal
Keywords: news, cnbc, companies, psychology, focus, fail, attention, realize, skill, stanford, ping, work, todays, indistractable, important, expert, futurebut, information, human, single


Stanford psychology expert: This is the No. 1 work skill of the future—but most fail to realize it

It’s 9 a.m.: You walk into the office, sit down, fire up your computer and attempt to start your workday. Ping! Everyone is talking about Trump’s latest tweet. Ping! There it goes again — a family member just texted you. You pick up your phone to look at the news notification and answer your text, only to check a Facebook post and then watch a Youtube video. Suddenly, before you know it, an hour has passed, and you haven’t accomplished a single work-related task.

A lack of focus comes at a cost

The challenge at work, of course, has always been to dodge things that distract us. But today’s distractions feel different. The amount of information available, the speed at which it can be disseminated and the ubiquity of access to new content on our devices has made for a trifecta of distraction. What’s the cost of all this? In 1971, the psychologist Herbert A. Simon emphasized that a wealth of information means a dearth of something else: attention. That was true decades ago, but it’s truer than ever today. Attention, it appears, seems to be the ultimate scare resource in today’s economy. And if we don’t address it now, it’s only going to get worse.

The most important skill of the 21st century

The workplace is rapidly changing, and in the near future, there will be two kinds of people in the world: those who let their attention and lives be controlled and coerced by others and those who proudly call themselves “indistractable.” Researchers have been telling us that attention and focus are the raw materials of human creativity and flourishing. And in the age of increased automation, the most sought-after jobs are those that require creative problem-solving, novel solutions and the kind of human ingenuity that comes from focusing deeply on the task at hand. That said, being indistractable is the single most important skill for the 21st century. Many experts, including Adam Grant, who said that “success and happiness belong to people who can control their attention,” have addressed the importance of focus.


Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: nir eyal
Keywords: news, cnbc, companies, psychology, focus, fail, attention, realize, skill, stanford, ping, work, todays, indistractable, important, expert, futurebut, information, human, single


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Netflix should buy a TV maker to get a leg up in the streaming wars, consumer expert argues

As the streaming wars heat up and competitors look for advantages, Netflix and Apple should consider buying a TV manufacturer, consumer marketing expert Matt Britton told CNBC on Friday. Apple TV+ will launch Nov. 1, and Disney’s service will launch two weeks after that. Yes, Netflix has great content, Britton said, but that is accomplished mainly through “writing checks.” Britton said Apple has a strong ecosystem in the home, with iTunes and Apple TV, “which I think is incredibly powerful.” Net


As the streaming wars heat up and competitors look for advantages, Netflix and Apple should consider buying a TV manufacturer, consumer marketing expert Matt Britton told CNBC on Friday. Apple TV+ will launch Nov. 1, and Disney’s service will launch two weeks after that. Yes, Netflix has great content, Britton said, but that is accomplished mainly through “writing checks.” Britton said Apple has a strong ecosystem in the home, with iTunes and Apple TV, “which I think is incredibly powerful.” Net
Netflix should buy a TV maker to get a leg up in the streaming wars, consumer expert argues Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-04  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, netflix, think, buy, company, leg, apple, argues, amazon, consumer, strong, expert, britton, wars, maker, content, streaming


Netflix should buy a TV maker to get a leg up in the streaming wars, consumer expert argues

As the streaming wars heat up and competitors look for advantages, Netflix and Apple should consider buying a TV manufacturer, consumer marketing expert Matt Britton told CNBC on Friday.

“I think one largely missed element of this is the television itself,” Britton, CEO of consumer intelligence company Suzy, said on “Closing Bell.” “If I were a large company like Netflix or even Apple, I would buy a company that makes TV consoles and give them to high-income consumers for free.”

The reason, Britton argued, is that pieces of hardware like TVs are the “last mile for content.”

“We see that with the iPhone,” Britton said. “I think whoever controls that last-mile distribution is going to win, so I’m surprised that a defunct or an about-to-go-out-of-business company that makes TV consoles hasn’t been approached by one of these content companies.”

The streaming landscape has grown increasingly crowded, bringing added competition to established players like Netflix, Hulu and HBO.

Disney, AT&T’s WarnerMedia and Comcast-owned NBCUniversal are soon launching services of their own. Apple TV+ will launch Nov. 1, and Disney’s service will launch two weeks after that.

Britton’s comments Friday follow news that Disney is banning ads from competitor Netflix on all of its TV platforms except for ESPN.

Britton said he didn’t think that would be a major setback for Netflix’s business, outside of the Oscars “where they can’t run ads.”

“But besides that, there’s plenty of other places for them to capture customers,” he said.

At the same time, Britton said Netflix faces other headwinds. Yes, Netflix has great content, Britton said, but that is accomplished mainly through “writing checks.”

But “companies like Apple and Amazon have deeper checkbooks, and they have a thriving direct-to-consumer base,” Britton said.

Britton said Apple has a strong ecosystem in the home, with iTunes and Apple TV, “which I think is incredibly powerful.” Amazon also has a strong existing presence through Prime, Britton said.

“For consumers, you get free shipping on your Amazon products and you can pay for the subscription, where Netflix you just get the content,” Britton said. “So that’s why I think it’s really hard for them to compete because they were first to market, but as these competitors come in, I think it’s going to be hard for them to hold their ground.”

Netflix could gain stronger footing by controlling a piece of hardware that helps distribute its content, Britton argued.

“I think you need the whole stack, so to speak,” he said.

Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.


Company: cnbc, Activity: cnbc, Date: 2019-10-04  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, netflix, think, buy, company, leg, apple, argues, amazon, consumer, strong, expert, britton, wars, maker, content, streaming


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How to train your brain to get more done at work, according to a productivity expert

Office distractions, especially in open work spaces, can lower your productivity — and pretty much everyone suffers from them. In fact, 99% of people said they get distracted while working at their desk, according to a 2019 survey from communications company Poly of 5,150 workers. And once distracted, the average person takes 23 minutes to get back on task, according to a 2008 study by University of California, Irvine. That’s the part of the brain that controls decision-making, among other thing


Office distractions, especially in open work spaces, can lower your productivity — and pretty much everyone suffers from them. In fact, 99% of people said they get distracted while working at their desk, according to a 2019 survey from communications company Poly of 5,150 workers. And once distracted, the average person takes 23 minutes to get back on task, according to a 2008 study by University of California, Irvine. That’s the part of the brain that controls decision-making, among other thing
How to train your brain to get more done at work, according to a productivity expert Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-03  Authors: aditi shrikant, sofia pitt, myelle lansat
Keywords: news, cnbc, companies, working, expert, distracted, according, bailey, work, brain, productivity, workers, train, attention, open, world


How to train your brain to get more done at work, according to a productivity expert

Office distractions, especially in open work spaces, can lower your productivity — and pretty much everyone suffers from them. In fact, 99% of people said they get distracted while working at their desk, according to a 2019 survey from communications company Poly of 5,150 workers. And once distracted, the average person takes 23 minutes to get back on task, according to a 2008 study by University of California, Irvine.

Part of why we’re so susceptible to breaks in our attention is that our brain rewards us for finding distraction, says Chris Bailey, author of “Hyperfocus: How to Manage Attention in a World of Distraction.”

It’s called the novelty bias, he says, and it refers to the phenomenon that every time we refocus on something new or novel, our brain releases dopamine into our prefrontal cortex. That’s the part of the brain that controls decision-making, among other things.

“Dopamine is this wonderful chemical we get every time we make love or we eat a delicious meal or do other things that stimulate the mind,” Bailey says. “But it turns out we get that same hit when we check Instagram and when we open up Facebook.”


Company: cnbc, Activity: cnbc, Date: 2019-10-03  Authors: aditi shrikant, sofia pitt, myelle lansat
Keywords: news, cnbc, companies, working, expert, distracted, according, bailey, work, brain, productivity, workers, train, attention, open, world


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There are 4 main paths to becoming a millionaire—and this is the easiest one, says money expert

Unless you were born into a rich family, building wealth can be very hard — depending on the path you choose. All of them had at least $160,000 in annual gross income and $3.2 million in net assets. Not only is it the easiest way to build wealth, but if you start early, it almost always guarantees a lot of money. The Saver-Investors in my group reached their first $1 million around their mid-to-late 30s, and accumulated an average net worth of $3.3 million by their mid-50s. It took them an avera


Unless you were born into a rich family, building wealth can be very hard — depending on the path you choose. All of them had at least $160,000 in annual gross income and $3.2 million in net assets. Not only is it the easiest way to build wealth, but if you start early, it almost always guarantees a lot of money. The Saver-Investors in my group reached their first $1 million around their mid-to-late 30s, and accumulated an average net worth of $3.3 million by their mid-50s. It took them an avera
There are 4 main paths to becoming a millionaire—and this is the easiest one, says money expert Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-27  Authors: tom corley
Keywords: news, cnbc, companies, early, net, million, expert, wealth, dreamers, paths, millionaireand, things, money, work, main, study, worth, easiest, path


There are 4 main paths to becoming a millionaire—and this is the easiest one, says money expert

Unless you were born into a rich family, building wealth can be very hard — depending on the path you choose. Many people look at multi-millionaires and desperately want to know: What’s their secret? How did they get there? What does it take? Those are the things I wanted to know back in 2004, when I began my “Rich Habits” study, in which I spent five years interviewing and researching the daily activities, habits and traits of 233 wealthy individuals. All of them had at least $160,000 in annual gross income and $3.2 million in net assets. During my research, I found there are four predominant paths toward accumulating wealth. The “Savers-Investors” path is the easiest, while the other three involve much more risk.

1. The Saver-Investors path

Just less than 22% of the millionaires in my study chose to take the Saver-Investors path. Not only is it the easiest way to build wealth, but if you start early, it almost always guarantees a lot of money. The Saver-Investors in my group reached their first $1 million around their mid-to-late 30s, and accumulated an average net worth of $3.3 million by their mid-50s. They also had four things in common: They typically had a middle-class income (many reached a six-figure salary early in their career, and if they didn’t, they lived very frugally.) They had a low cost of living and preferred to save, rather than spend lavishly. They saved 20% or more of their income. They started investing their savings early in life and continued to do so prudently for many years. No matter what their day job was, this group made saving and investing part of their routine; they were constantly thinking about smart ways to grow their wealth. The Savers-Investors path isn’t for everyone. It requires enormous financial discipline and long-term commitment.

2. The Dreamers path

This is perhaps the hardest path to building wealth because it requires the pursuit of a dream, such as starting a business, becoming a successful actor, musician or author. Approximately 28% of the folks in my study were Dreamers, and they accumulated an average net worth of $7.4 million — far more than any of the other groups — over a period of about 12 years. All of them told me that pursuing their dreams was one of the most rewarding things they had done in their lives. They loved what they did for a living, and their passion showed up in their bank accounts. Those who want to take this path, however, must be willing to work long hours and able to handle financial stress. The Dreamers in my study worked more than 61 hours per week before finally achieving their dreams. Weekends and vacations were almost non-existent. Trying to make ends meet was not easy. At first, getting a steady paycheck was “nearly impossible,” one Dreamer said. It was even harder for those who had families to support. To finance their dreams, some decided to put off buying a home, while others dipped into their retirement savings. If you’re risk-averse, this path may not be for you.

3. The Company Climbers path

Climbers are individuals who work for a big company and devote all of their energy into climbing the corporate ladder until they land a senior executive position. This is the second-hardest path to becoming a millionaire, and about 31% of the rich people I studied fell into this group. It took them an average of 22 years to accumulate a net worth of $3.4 million or more. In most cases, their wealth came from either stock compensation or a partnership share of profits. To be a Dreamer, you must have strong relationship-building skills. Networking and making lasting connections with powerful people in your industry is essential. Like Dreamers, however, Climbers also have long work hours. The ones I interviewed all arrived at the office early and left late. Many were required to travel frequently and even had to sacrifice a lot of their vacation time. Profitability is a huge factor in determining a Climber’s success. If their company struggles financially, their time and investment there might not be rewarded to the extent they had expected.

4. The Virtuosos path


Company: cnbc, Activity: cnbc, Date: 2019-09-27  Authors: tom corley
Keywords: news, cnbc, companies, early, net, million, expert, wealth, dreamers, paths, millionaireand, things, money, work, main, study, worth, easiest, path


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Why this tech expert is calling for a ‘PBS for social media’

Why this tech expert is calling for a ‘PBS for social media’12:32 PM ET Wed, 25 Sept 2019Mark Coatney, founder of Words TK and former Tumblr director, joins “Squawk Alley” to discuss a “PBS for social media” as an alternative to private Big Tech companies.


Why this tech expert is calling for a ‘PBS for social media’12:32 PM ET Wed, 25 Sept 2019Mark Coatney, founder of Words TK and former Tumblr director, joins “Squawk Alley” to discuss a “PBS for social media” as an alternative to private Big Tech companies.
Why this tech expert is calling for a ‘PBS for social media’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-25
Keywords: news, cnbc, companies, media1232, pbs, tech, words, tumblr, private, calling, expert, media, social, sept, squawk


Why this tech expert is calling for a 'PBS for social media'

Why this tech expert is calling for a ‘PBS for social media’

12:32 PM ET Wed, 25 Sept 2019

Mark Coatney, founder of Words TK and former Tumblr director, joins “Squawk Alley” to discuss a “PBS for social media” as an alternative to private Big Tech companies.


Company: cnbc, Activity: cnbc, Date: 2019-09-25
Keywords: news, cnbc, companies, media1232, pbs, tech, words, tumblr, private, calling, expert, media, social, sept, squawk


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Antitrust being redefined, says social media expert

Antitrust being redefined, says social media expert9 Hours AgoBig Tech is under fire amid antitrust probes. Andrew Selepak, professor at the University of Florida, and Edmund Lee of The New York Times talk with CNBC’s “Power Lunch” team about what it means for companies and investors.


Antitrust being redefined, says social media expert9 Hours AgoBig Tech is under fire amid antitrust probes. Andrew Selepak, professor at the University of Florida, and Edmund Lee of The New York Times talk with CNBC’s “Power Lunch” team about what it means for companies and investors.
Antitrust being redefined, says social media expert Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-24
Keywords: news, cnbc, companies, antitrust, times, redefined, university, talk, media, expert, york, social, selepak, team, tech


Antitrust being redefined, says social media expert

Antitrust being redefined, says social media expert

9 Hours Ago

Big Tech is under fire amid antitrust probes. Andrew Selepak, professor at the University of Florida, and Edmund Lee of The New York Times talk with CNBC’s “Power Lunch” team about what it means for companies and investors.


Company: cnbc, Activity: cnbc, Date: 2019-09-24
Keywords: news, cnbc, companies, antitrust, times, redefined, university, talk, media, expert, york, social, selepak, team, tech


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‘We need to eliminate passwords,’ warns fraud expert and ex-con artist

13 Hours AgoTo view this site, you need to have JavaScript enabled in your browser, and either the Flash Plugin or an HTML5-Video enabled browser. Download the latest Flash player and try again. Frank Abagnale, author of “Catch Me If You Can” and “Scam Me If You Can,” explains why we need to stop using passwords.


13 Hours AgoTo view this site, you need to have JavaScript enabled in your browser, and either the Flash Plugin or an HTML5-Video enabled browser. Download the latest Flash player and try again. Frank Abagnale, author of “Catch Me If You Can” and “Scam Me If You Can,” explains why we need to stop using passwords.
‘We need to eliminate passwords,’ warns fraud expert and ex-con artist Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-24  Authors: getty images, marco piunti
Keywords: news, cnbc, companies, passwords, site, scam, expert, browser, artist, flash, try, fraud, warns, eliminate, enabled, using, view, stop, need, excon


'We need to eliminate passwords,' warns fraud expert and ex-con artist

13 Hours Ago

To view this site, you need to have JavaScript enabled in your browser, and either the Flash Plugin or an HTML5-Video enabled browser. Download the latest Flash player and try again.

Frank Abagnale, author of “Catch Me If You Can” and “Scam Me If You Can,” explains why we need to stop using passwords.


Company: cnbc, Activity: cnbc, Date: 2019-09-24  Authors: getty images, marco piunti
Keywords: news, cnbc, companies, passwords, site, scam, expert, browser, artist, flash, try, fraud, warns, eliminate, enabled, using, view, stop, need, excon


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Doing this when buying a home can ‘put your future at risk,’ expert says

Bankrate polled 2,582 adults, including 789 millennials ages 23-38, and asked participants how they are funding their down payments and closing costs. Over half, or 53%, of millennials say they’re saving. And 13% of millennial respondents say they’re tapping their retirement accounts, as compared to 8% and 7% of Gen Xers and baby boomers. Putting ‘your future at risk'”Tapping into retirement savings is a risky move that can put your future at risk,” says Deborah Kearns, a mortgage analyst for Ba


Bankrate polled 2,582 adults, including 789 millennials ages 23-38, and asked participants how they are funding their down payments and closing costs. Over half, or 53%, of millennials say they’re saving. And 13% of millennial respondents say they’re tapping their retirement accounts, as compared to 8% and 7% of Gen Xers and baby boomers. Putting ‘your future at risk'”Tapping into retirement savings is a risky move that can put your future at risk,” says Deborah Kearns, a mortgage analyst for Ba
Doing this when buying a home can ‘put your future at risk,’ expert says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: alizah salario, bob sullivan, ivana pino, myelle lansat
Keywords: news, cnbc, companies, buying, future, say, long, savings, think, financial, retirement, risk, respondents, money, expert, youre, millennials, doing


Doing this when buying a home can 'put your future at risk,' expert says

To save for a down payment on a new home, some millennials are getting creative, according to a recent survey of prospective homebuyers from Bankrate.com. But one of their strategies in particular, experts worry, may be shortsighted, and even risky. Bankrate polled 2,582 adults, including 789 millennials ages 23-38, and asked participants how they are funding their down payments and closing costs. (Respondents could pick multiple answers.) Over half, or 53%, of millennials say they’re saving. Some are taking more drastic steps: 14% say they’ve moved in with family or friends to cut down on expenses, and 12% are selling personal items such as jewelry, cars, or electronics. And 13% of millennial respondents say they’re tapping their retirement accounts, as compared to 8% and 7% of Gen Xers and baby boomers.

Graphic preview How people find the money to buy homes Millennials tend to use more sources to fund the down payment and closing costs on their first homes than other generations. Social chart title Note: Respondents could choose more than one answer. kiersten schmidt/grow Bankrate

Here’s why experts suggest you think twice before dipping into your retirement fund.

Putting ‘your future at risk’

“Tapping into retirement savings is a risky move that can put your future at risk,” says Deborah Kearns, a mortgage analyst for Bankrate. “By and large, homeownership has long been touted as the way you build wealth,” she says. “While that’s still true to some extent, you can’t overextend yourself to make that happen.” Mark LaSpisa, a certified financial planner and president of Vermillion Financial Advisors in South Barrington, Illinois, agrees. While there may be some cases in which putting equity from retirement savings into a home may make sense, the “psychological, habit-forming” component of drawing down from your retirement savings is a concern, too: “It’s easy to think, ‘I broke the seal, and now I can go in and raid my IRA for any reason,'” he says.

By and large, homeownership has long been touted as the way you build wealth. While that’s still true to some extent, you can’t overextend yourself to make that happen. Deborah Kearns mortgage analyst, Bankrate.com

Generally, when you pull from a retirement account before you reach age 59½, your withdrawal is considered an “early” or “premature” distribution. That means the money is subject to taxes and a 10% penalty. Traditional and Roth IRAs make an exception for first-time homebuyers, letting you avoid those consequences. But even if you’re not incurring additional costs in the short-term, you may well be setting yourself back over the long term. Let’s say you decide to take $10,000 out of your retirement account to put toward a first-home purchase, and you’re 32, the average age of first-time buyers. If you instead left that money in the account and it saw average returns of 8% over the next 33 years until you retire at 65, those funds would have grown to more than $126,700. But growing your retirement savings thanks to compounding interest is only part of why experts recommend leaving that $10,000 alone. If you chip away now at what you’ve already saved, you might find it harder to stay on track later with your retirement goals, should you experience a job loss or other financial emergency that affects your ability to save. For all of these reasons, Suze Orman’s advice is to leave the money in your retirement accounts alone. “Do not take a loan, do not make withdrawals, do not touch your retirement accounts,” Orman told CNBC Make It last year. “Because if you think you need that money now, I’m here to tell you you’re going to need it even more later on in life when you no longer have a paycheck coming in.”

Taking the long view


Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: alizah salario, bob sullivan, ivana pino, myelle lansat
Keywords: news, cnbc, companies, buying, future, say, long, savings, think, financial, retirement, risk, respondents, money, expert, youre, millennials, doing


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