ments. So now you should have a good idea of not only how to spot potentially good investments based on their overall standing, their competitive position, and the health of their industry. But now you can drill down into some of the more nuanced components of the business's operations, such level of financial strength, rate of profitability, growth prospects, and more.But understanding the business itself is only part of the battle. The other component is understanding how these businesses can fit with you ...

Core Insights - The FINRA Foundation's National Financial Capability Study indicates that 48% of respondents had no investments in 2024, highlighting a significant barrier to wealth growth across income levels [1] Investment Strategies for $60,000 Earners - Money expert Ramit Sethi suggests that individuals earning $60,000 should not let limited extra cash deter them from investing [2] - Sethi emphasizes the importance of starting to invest at least 5% of after-tax income to benefit from compound interest, with the option to begin at a lower rate if necessary [4] - Increasing the investment rate by just 1% annually can lead to substantial wealth accumulation over time [5] Tax-Advantaged Accounts - Prioritizing tax-advantaged accounts is recommended to defer or avoid taxes on investment growth [6] - For those with 401(k) accounts, contributing enough to receive the maximum employer match is crucial; an example shows that saving 3% of a $60,000 income for 30 years at a 7% return could yield over $351,000 with a match [7] - Alternatives like traditional IRAs and Roth IRAs are available for those without a 401(k), each with distinct tax implications [8] - Health savings accounts offer a unique triple tax advantage, allowing tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses [9]