Financial solutions for HENRYs

Inside the lives of HENRYs

The acronym "HENRY" stands for "high earner, not rich yet." The phrase is becoming more popular as new census data shows that roughly 14% of US households bring in $200K or more per year. This article dives into the lives of a few HENRYs and explains the factors keeping them from increasing their respective net worths, from child care costs to rising housing prices. Read it here.

Even high earners are living paycheck to paycheck

While roughly 14% of American households make $200K or more per year, many of them still don't feel rich. For instance, more than 60% of people with salaries over $300K per year still struggle with credit card debt.

Read about the situations where a high-yield savings account doesn't make sense

While financial experts often recommend high-yield savings accounts, one expert argues that prioritizing adding more money to one doesn't make sense for someone who has a lot of high-interest debt or isn't taking advantage of their company's 401(k) match.

Financial rules that many FIRE followers live by include guidelines around tax efficiency and more

Many FIRE proponents follow specific financial rules, like the 4% rule, in order to achieve FIRE. They also take steps to create an efficient tax strategy and take advantage of compound interest.

Addressing psychological barriers to building wealth

Almost half of adults in the US report owning no investable assets. For many, the barrier to entry is the belief that investing is too complex for them to get involved. Consulting with a financial psychologist, this article addresses the cognitive bias that causes so many people to miss out on financial opportunities, and offers tips on how to get past the anxieties and just begin.

The 'ultrawealthy' in 2026 hold $30M or more

This group of ultra-high-net-worth individuals holds more than double the assets of the top 1% of Americans (and this group holds over a third of all American wealth). These folks go beyond a well-funded retirement plan and a paid-off home common to middle-class households with investments in private equity, commercial real estate, and alternative assets like art.

Inside the lives of FIRE followers

A man named Barney Whiter saved half of his salary each month so that, eventually, he could retire at age 43. Other FIRE followers rent out rooms in their homes or even their cars in attempts to achieve the same financial freedom.

Roughly 90% of generational wealth dries up by the third generation, epitomized by the phrase 'shirtsleeves to shirtsleeves in three generations.'

Watch Peter Adeney’s TED Talk

The Mr. Money Mustache blog, started in 2011 and written by Peter Adeney, gained a significant following documenting real people’s experiences trying out FIRE, and also helped popularize the concept.

HSAs are frequently criticized for exacerbating inequality in healthcare access

Health savings accounts offer large tax advantages, but require personal contributions. Some argue that the tax advantages benefit wealthy individuals more than anyone else and that HSAs don't do much to help people who can't afford to regularly contribute to one. As a result, HSAs only decrease costs for those who can comfortably invest in them, and health inequalities between high-income and low-income individuals are exacerbated.

The FIRE movement stands for ‘financial independence, retire early’

FIRE followers typically prioritize high savings rates, relatively frugal living, and aggressive investing strategies in an effort to work less and enjoy life more in the long term. They range from low-income manual laborers to high-income tech workers and doctors.

Health savings accounts are designed to alleviate upfront costs for high-deductible health plans.

Warren Buffett's advice for middle-class investors includes "pay yourself first"

Warren Buffett might not be part of the middle class himself (he's one of the richest people in the world), but he still knows a thing or two about everyday personal finance tips. This article chronicles his six best pieces of advice for the middle class.

How life looks different with a $75K household income versus $150K

"The cleanest way to describe the gap is that $75K is often about stability, while $150K can be about optionality, but only if fixed expenses do not expand to consume the raise," said one finance professor.

Read the financial advice America's founding fathers gave, including Benjamin Franklin, Thomas Jefferson, and Alexander Hamilton.

Hank Green on the problem with being a creator

YouTuber Hank Green takes over The Financial Diet's platform to talk about the creator economy. He walks the audience through the financial decisions involved when making content. He also describes brand deals, and who actually owns the content posted on social media platforms—the creator or the platform itself?

One financial planner says FIRE is a bad idea

Some financial professionals argue that those following the FIRE (financial independence, retire early) movement might be basing their math on too short of a timeline, leaving them without enough money if they live further into old age than expected.

History’s largest intergenerational wealth transfer is happening in the next few decades

The founder of a multifamily office firm offers lessons on how to preserve wealth for generations from a global perspective, like educating younger family members.

Americans are projected to inherit $105T over the next 30 years

Today, someone's financial standing has more to do with their families than any other outside factor. Of the more than $100T of projected inheritance, that money is concentrated among a few wealthy estates and families.

Financial caregiving 101

In this podcast episode, a financial expert outlines how to prepare to financially take care of an elderly parent before they get sick or an emergency happens. This includes ensuring their payments are automated, getting access codes for their cell phones and accounts, and more.

Smart tips for making the most of your 401(k)

There’s a lot of advice about handling a 401(k), but it can be mired in disclaimers and legalese. Come prepared to your financial advisor or accountant by watching this informative take on how to properly use a 401(k), from consolidating plans to some of the most common errors.

Investing in private equity is typically reserved for 'accredited investors'

Limiting PE to accredited investors helps protect less experienced investors from large and risky investments. Accredited investors must meet requirements set by the Securities and Exchange Commission—they're typically required to have a net worth exceeding $1M, for instance. (Some users may experience a paywall.)

Half of the richest people in the US are finding ways around death taxes

One of the main purposes of the federal estate tax is to crack down on generational wealth, so wealth isn't concentrated among a select few. However, the ultra-rich have found ways around paying these taxes. This ProPublica article investigates the practices used by half of the 100 richest people in the US to avoid death taxes.

How universities manage their endowments

The CNBC video report explores how elite universities like Harvard handle their massive endowments, the ethical debates around their investments, and the tension between growing wealth and rising college costs. If you’re curious about where billions of dollars in higher education go, why tuition remains high despite huge endowments, or how student activism is pushing for ethical investing, this video offers a revealing, accessible look at the financial engines behind America’s top colleges.

Seven early retirement lessons

After one year of retirement under his belt, financial publication Kiplinger's former editor has learned some lessons. Specifically, in this article, he shares his best early retirement advice, from when it makes sense to convert a traditional IRA to a Roth in early retirement, to how to prepare for retirement from a psychological perspective. Read more here.

Hear a finance professor answer questions about investing

From stocks and index funds to gold, a business professor at Duke University answers questions from the internet about investing.

The number of illiquid millionaire households is increasing

"Illiquid" refers to the increasing number of millionaire households that have most of their net worth tied up in housing and retirement accounts. Rising home values and the growing prevalence of 401(k) plans and IRAs as primary retirement savings vehicles have contributed to the increase.

More than half of today's family offices—the private companies that help ultrawealthy individuals manage their fortunes—were incorporated after 2010.

How the wealthy are preparing for an estate tax clip

In 2017, the federal government passed a tax bill that raised the estate tax threshold for individuals and married couples. However, this exemption was temporary and is set to expire at the end of 2025. This Bloomberg Tax podcast episode explains what wealthy individuals are doing to protect their estates before the tax change. Listen here.

Five mistakes experts see people make with 529 plans

In this podcast, financial experts review the top five mistakes investors make when it comes to this education investment vehicle. Some mistakes are true for all investments, such as periodically checking for new rules and regulations. Others focus on 529 plans and how to get the most out of them.

Ted Benna is the father of the 401(k)

It took a benefits consultant to highlight the financial power of a subtle, obscure tax code change buried away in Section 401, subsection k of the Internal Revenue Code. Benna realized this section, designed primarily for high-earning corporate executives, could help workers save money on taxes when preparing for retirement.

Experts say those receiving year-end bonuses may want to pay down high-interest debt

Experts say other sound options for spending bonuses include topping off an emergency fund or putting more money away for retirement.

Four popular budgeting strategies

While budgeting is an individualized process, there are a few tried-and-true budgeting methods people interested in saving money or paying down debt tend to use. These methods include the envelope method—where people budget for things like rent, savings, and food by putting cash in various physical envelopes—the 50/20/30 method, and others. Read about four popular budgeting strategies in this article.

A third of Americans don't have the cash they need to cover a $500 emergency, according to a 2023 Federal Reserve survey.

Retirement expectations versus reality

There's a big gap between what many Americans expect to happen during retirement and what actually happens—at least according to one financial planner. In this article, the financial planner in question explores how retirement expectations can differ from reality, exploring financial considerations such as how long people expect to work part-time during retirement, and more. Read the article here.

Why donors love to give to the wealthy schools

In this podcast episode of Revisionist History, Malcolm Gladwell explores why Hank Rowan’s $100 million gift to a small New Jersey college didn’t inspire others to support underfunded schools. Instead, donors continue to flock to elite institutions like Harvard and Stanford. “My Little Hundred Million” examines ways ideology and prestige have reshaped educational giving.

The best investing advice for new college grads

While new college graduates typically don't have much money to invest, creating a plan for the money they earn from their first job can set them up for a promising financial future. This list of investing advice for new grads includes recommendations like enrolling in their company's retirement plan as soon as possible, prioritizing building an emergency fund, and more. Read the full list here.

How to put on a hedge

These days, hedging your portfolio isn’t just for hedge fund managers. An explainer from Robinhood delves into what a hedged position actually is, why traders put on hedges, and how you, too, can work to guard your holdings against a market downturn. The idea is to derive gains from your portfolio when markets are trending up, down, or sideways.

You have to earn under a certain gross amount per year to be eligible for a Roth IRA

A Roth IRA might make the most sense for someone confident that they will have a higher income in retirement than they do now. For 2025, those allowed to contribute to a Roth IRA must have a modified adjusted gross income (MAGI) of less than $150K.

Should you pay off debt or invest?

Some experts say you should put aside 20% of each paycheck and use that money for future goals, such as saving, investing, and paying off debt. But which should you prioritize first? It all depends on where you are in your financial journey. This article outlines the steps you should take depending on what your finances look like right now. Read it here.

Inside a FIRE follower's money diary

This podcast episode details a few days inside the bank account of a woman in Australia who set out to retire by age 35.

While annuities can guarantee an income for risk-averse investors, they may play it too safe for others

Whether or not an annuity is the right investment option depends on the buyer’s unique needs. People who plan to retire soon are more likely to opt for the lower-risk investment, but there may be opportunity costs for people seeking higher returns.

Read why Gen Z is saving more for retirement than older generations

Despite more and more Americans taking money from their retirement funds to cover expenses, many members of Gen Z are investing more in their retirement. Part of the reason for increased savings amongst this generation could be better-designed retirement plans.

Americans ages 30 to 34 have $44,800 in their 401(k) accounts on average

Americans ages 28 to 44 save about 13.5% of their pretax income on average, which is close to the recommended retirement savings rate of 15%.

HSAs are triple-tax advantaged—offering tax-free contributions, investments, and withdrawals

One of the reasons HSAs are so popular is the plan's triple-tax advantage. All contributions to an HSA happen pretax, funds in the HSA can be invested in stocks, bonds, or exchange-traded funds, and withdrawals to cover medical expenses are tax-free.

Some argue that a massive emergency fund can hurt more than it helps

A financial advisor makes the case for an emergency fund that isn't too overstuffed. An emergency fund that is too large, he argues, can mean that you'll miss other opportunities to grow your wealth.

Life insurance policies are often recommended for people with financial dependents

If you’re a parent, spouse, business owner, homeowner, or if you hold a lot of debt, you might want to consider life insurance. It can replace a loss of income or pay off debt.

Mr. Money Mustache is a popular FIRE advocate and blogger

The Mr. Money Mustache blog was started in 2011, and was written by a man named Peter Adeney. It gained a significant following documenting real people’s experiences trying out FIRE, and also helped popularize the concept.

A 1992 personal finance book helped inspire the FIRE movement

"Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence" by Vicki Robin and Joseph Dominguez argued that people should prioritize consuming less and living better.

How to balance paying down debt vs. investing

When someone has extra money in their pocket, they're quickly faced with a decision: Is it a better idea to use that money to pay down debt, or invest it? While the answer depends on each individual's financial situation, this video explains which solution works best depending on the circumstances. Watch it here.