This Billionaire Executive Just Shared His 3 Tips To Wealth

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Eric Schmidt is the executive chairman of Google’s parent company Alphabet. The man is worth an estimated $11 billion so if he has any advice on how to get wealthy, it’s probably wise for people to pay attention.

Most of Schmidt’s wealth came from Google’s stock that he reeived as CEO, but he has three tips that could help anyone build their net worth. According to Schmidt, these three suggestions can help any professional save and make money.

1. Take full advantage of your 401(k)

Schmidth told CNBC, “If your company offers matching 401(k), take it — all of it. Maximize what you put into anything that’s matched.”

“That’s a 50 or 100 percent return depending on your company’s policy, instantly,” he explained.

2. Don’t try to beat the market

Schmidt says, “Don’t try to beat the market. Don’t try to pick stocks.” According to the executive, it may be tempting to buy or sell stocks based on daily movements, but short-term trading won’t make you rich.

Schmidt believes in long term investing and says, “Invest in index funds, Vanguard funds.”

3. Think twice about hiring a money manager

“Do not pay someone a lot of money to manage your money for you,” he says. Schmidt has two words, “minimize fees.”

According to the billionaire, paying someone to manager your money ends up costing you more over time.

“Understand how much it costs you to pay someone one percent a year to manage your money,” he explains.
Schmidth says you should take the money you save on fees and invest it yourself.