Finance – Fromer Media Group https://fromermediagroup.com Wed, 14 Feb 2024 01:01:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://fromermediagroup.com/wp-content/uploads/2022/01/cropped-fromermediagroup-32x32.png Finance – Fromer Media Group https://fromermediagroup.com 32 32 6 Ways to Help Your Child Build Credit During College https://fromermediagroup.com/2024/02/14/6-ways-to-help-your-child-build-credit-during-college/ Wed, 14 Feb 2024 01:01:54 +0000 https://fromermediagroup.com/2024/02/14/6-ways-to-help-your-child-build-credit-during-college/

College students have a lot on their plate already, including the need to study to get good grades, participating in any number of on-campus activities and potentially working part-time to have some spending money.

That said, college students should also focus on their financial future, including steps they can take to build credit before they enter the workforce.

After all, having a credit history and a good credit score can mean being able to rent an apartment, finance a car or take out a loan, whereas having no credit at all can mean sitting on the sidelines until the situation changes.

Fortunately, there are all kinds of ways for young adults to build credit while they’re still in school. Some strategies require a little work on their part, but many are hands-off tasks that you only have to do once.

Teach Them Credit-Building Basics

Make sure your student knows the basic cornerstones of credit building, including the factors that are used to determine credit scores. While factors like new credit, length of credit history and credit mix will play a role in their credit later on, the two most important issues for credit newcomers to focus on include payment history and credit utilization.

Payment history makes up 35% of FICO scores and credit utilization ratio makes up 30% of scores.

Generally speaking, college students and everyone else can score well in these categories by making all bill payments on time and keeping debt levels low. How low?

Most experts recommend keeping credit utilization below 30% at a maximum and below 10% for the best possible results. This means trying to owe less than $300 for every $1,000 in available credit limits at a maximum, but preferably less than $100 for every $1,000 in credit limits.

Add Your Child as an Authorized User

One step you can personally take to help a child build credit is adding them to your credit card account as an authorized user. This means they will get a credit card in their name and access to your spending limit, but you are legally responsible for any charges they make. Obviously, this move works best when you have excellent credit and a strong history of on-time payments and you plan to continue using credit responsibly .

While this step can be risky if you’re worried your college student will use their card to overspend, you don’t actually have to give them their physical authorized user credit card.

In fact, they can get credit for your on-time payments whether they have access to a card or not. If you do decide to give them their credit card, you can do so with the agreement they can only use it for emergency expenses.

Encourage Them to Get a Secured Credit Card

Your child can build credit faster if they apply for a credit card and get approved for one on their own, yet this can be difficult for students who have no credit history. That said, secured credit cards require a refundable cash deposit as collateral are very easy to get approved for.

Some secured credit cards like the Ambition Card by College Ave even offer cash back1 on every purchase and don’t charge interest2. If your child opts to start building credit with a secured credit card, make sure they understand the best ways to build credit quickly — keeping credit utilization low and paying bills early or on time each month.

screenshot of ambition card by college ave

Opt for a Student Credit Card Instead

While secured credit cards are a good option for students with little to no credit get started on their journey to good credit, there are also credit cards specifically designed for college students. Student credit cards are unsecured cards, meaning they don’t require an upfront cash deposit as collateral, but charge interest on any purchases not paid in full each month.

Many student credit cards offer rewards for spending with no annual fee required as well, although these cards do tend to come with a high APR. The key to getting the most out of a student credit card is having your dependent use it only for purchases they can afford and paying off the balance in its entirety each billing cycle. After all, sky high interest rates don’t really matter when you never carry a balance from one month to the next.

Student Credit Cards…

“One of the safest ways for college student to build their credit by learning valuable money skills.”

Help Your Child Get Credit for Other Bill Payments

While secured cards and student credit cards help young adults build credit with each bill payment they make, other payments they’re making can also help.

In fact, using an app like Experian Boost can help them get credit for utility bills they’re paying, subscriptions they pay for and even rent payments they’re making. This app is also free to use, and you only have to set up most bill payments in the app once to have them reported to the credit bureaus.

There are also rent-specific apps and tools students can use to get credit for rent payments, although they come with fees. Examples include websites like Rental Kharma and RentReporters.

Make Interest-Only Payments On Student Loans

The Fair Isaac Corporation (FICO) also notes that students can start building credit with their student loans during school, even if they’re not officially required to make payments until six months after graduation with federal student loans.

Their advice is to make interest-only payments on federal student loans along with payments on any private student loans they have during college in order to start having those payments reported to the credit bureaus as soon as possible.

“Making interest-only payments as a student will not only positively affect your credit history but will also keep the interest from capitalizing and adding to your student loan balance,” the agency writes.

Of course, interest capitalization on loans would only be an issue with private student loans and  Federal Direct Unsubsidized Loans since the U.S. Department of Education pays the interest on Direct Subsidized Loans while you’re in school at least half-time, for six months after you graduate and during periods of deferment.

The Bottom Line

College students don’t have to wait until they’re done with school to start building credit for the future, and it makes sense to start building positive credit habits early on regardless. Tools like a credit card can help students on their way, whether they opt for a secured credit card or a student card. Other steps like using credit-building apps can also help, and with little effort on the student’s part or on yours.

Either way, the best time to start building credit was a few years ago, and the second best time is now. You can give your student a leg up on the future by helping them build credit so it’s there when they need it.

1Cash back rewards are subject to the Ambition Rewards Terms & Conditions.

20% APR. Account is subject to a monthly account fee of $2, account fee is waived for the initial six-monthly billing cycles.

College Ave is not a bank. Banking services provided by, and the College Ave Mastercard Charge Card is issued by Evolve Bank & Trust, Member FDIC pursuant to a license from Mastercard International Incorporated. Mastercard and the Mastercard Brand Mark are registered trademarks of Mastercard International Incorporated.



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What is Stan Store? – Good Financial Cents® https://fromermediagroup.com/2024/01/11/what-is-stan-store-good-financial-cents/ Thu, 11 Jan 2024 22:51:46 +0000 https://fromermediagroup.com/2024/01/11/what-is-stan-store-good-financial-cents/

Initially, when my wife introduced me to Stan Store, I wasn’t impressed.

It seemed illogical to pay $30 a month for software that just offered a basic sales page, especially without any integrated email service provider.

This was a stark contrast to my experience with platforms like ConvertKit, where I started with a free account until my subscriber count grew large enough where I had to pay.

screenshot of Stan Store home page

As I spent more time with Stan Store, my perspective began to shift. I realized that for someone completely new to online marketing, who might be overwhelmed by the complexities of building and creating a landing or sales page, Stan Store could actually make a lot of sense.

It’s tailored for beginners, offering them a straightforward entry point into the world of digital marketing.

Who is Stan Store For?

So, who’s going to love Stan Store? Pretty much anyone aiming to make a buck online through digital products or services. If you’re like me, trying to turn those ‘link in bio’ clicks into actual sales, then Stan Store is your go-to.

Let me break it down for you. Stan Store is a hit with a wide range of creators and businesses, but from my experience, it’s a total game-changer for:

  • Content Creators, Influencers, Micro-influencers, and UGC Creators
  • Instagrammers, TikTokers, YouTubers, X’rs
  • Online Coaches, Mentors, and Teachers
  • Digital Product Creators (Etsy, you’ve got competition)
  • Social Media Managers and Content Managers
  • Designers, Freelancers, and Small Digital Businesses

And hey, even if you’re in the business of selling physical goods, Stan Store can be a killer tool for growing your email list or hosting online events.

Just a heads up though – selling physical products directly through Stan Store isn’t on the table just yet.

How Does Stan Store Work?

Picture this: I’m on TikTok or Instagram Stories, chatting about my latest digital product – let’s say it’s an eBook or a PDF.

In the past, I’d direct my followers to the ‘link in my bio’, which would then send them off to another site, like my website. There, they’d have to play detective to find the product I was talking about, or sit through endless page loads.

But with Stan Store, things get a whole lot smoother. The ‘link in my bio’ is now the store itself. Followers can hit that link, buy what they want right there and then, without being shunted off to a different site.

The best part? They can hop right back to Instagram or TikTok without feeling like they ever left. It’s all about keeping it simple and seamless – and that’s what Stan Store nails perfectly.

Here’s a screenshot of my wife’s personal Stan Store:

screenshot of my wife's personal Stan Store account.

We’re still not a big fan of their email signup process so for now our opt-in page (squeeze page) is hosted on Kajabi.

But my wife is selling our Digital Product Quickstart Guide on Stan Store. Here’s how the sales page looks:

screenshot of a sales page built in our Stan Store personal account

Behind the scenes of our sales page is a payment processor and the ability to deliver the digital product with ease. That’s what makes Stan Store so attractive. You can literally start selling your very own digital product in a matter of minutes.

Why Stan Store Stands Out

What truly sets Stan Store apart is its efficiency – you can begin selling your own digital products in just a matter of minutes.

Stan Store Features Overview

Stan Store is packed with features designed to make the life of a digital creator easier and more profitable. Whether you’re a coach, influencer, or digital product creator, here’s what Stan Store brings to the table:

  • Mobile & Desktop Optimized Store: Your store looks great and works seamlessly on any device, ensuring a smooth shopping experience for your audience.
  • Calendar Invites & Bookings Product: Easily manage appointments and bookings directly through your store.
  • Analytics: Get insights into your store’s performance to make data-driven decisions.
  • Unlimited Course Products: Offer as many courses as you like, with no restrictions.
  • 1-Tap Checkout: A streamlined checkout process that makes purchasing a breeze for your customers.
  • Recurring Subscription Products: Ideal for memberships and ongoing services, this feature allows for regular income.
  • Audience/Newsletter Builder: Grow your audience and keep them engaged with integrated newsletter tools.

Stan Store Plans: Creator vs. Creator Pro

Creator Plan

The Creator plan, priced at $29 per month (or $300 per year with a 20% discount), is an excellent starting point for anyone looking to jumpstart their online business. It includes all the essential tools you need:

  • Mobile & Desktop Optimized Store
  • Calendar Invites & Bookings Product
  • Analytics
  • Unlimited Course Products
  • 1-Tap Checkout
  • Recurring Subscription Products
  • Audience/Newsletter Builder

This plan is perfect for creators who are just beginning to monetize their online presence and need a comprehensive, yet straightforward set of tools to get started.

Creator Pro Plan

For those ready to take their business to the next level, the Creator Pro plan is available at $99 per month (or $948 per year with a 20% discount). It includes everything in the Creator plan, plus advanced features for optimizing conversions and offering more to your customers:

  • Advanced Pricing & Payment Plans
  • Discount Codes
  • Limit Quantity
  • Payment Plans
  • Order Bumps & Upsells
  • Funnel Builder
  • Affiliate Share Feature
  • Email Marketing

The Creator Pro plan is tailored for creators who are looking to expand their offerings, optimize their sales process, and engage more deeply with their audience.

Benefits of Using Stan Store

Convenience and Accessibility

The convenience and accessibility of Stan Store are what eventually changed my initial skepticism. The platform allows anyone, regardless of their technical skill, to quickly set up a landing or sales page.

This ease of use is a crucial factor for many users, especially those who lack the time or technical expertise to navigate more complex systems.

screenshot of our personal stan store account logged in

Competitive Pricing and Deals

The initial pricing, though seemingly high, is justified by the platform’s simplicity and effectiveness, particularly for its target audience – the absolute beginner in online marketing. The recent addition of an email service provider at a higher tier adds more value, making it a more comprehensive tool.

Drawbacks of Stan Store

Limitations in Product Availability

One of the criticisms I had of Stan Store was its limited range of features. While its simplicity is its strength, it also means that users looking for more advanced features might find Stan Store lacking. This limitation can be a significant drawback for users as their businesses and marketing skills evolve.

Stan Store Alternatives

In the journey of online entrepreneurship, it’s crucial to explore various platforms to see what aligns best with your business needs. While Stan Store has been a solid choice for me, I’ve also had experiences with other platforms worth mentioning:

  • Shopify: Shopify is a robust platform for creating online stores. It’s feature-rich and offers a lot of flexibility for those looking to build a detailed and extensive online shop.
  • WooCommerce: Ideal for WordPress users, WooCommerce seamlessly integrates with your existing site, transforming it into a fully functional e-commerce platform. It’s versatile but can be a bit complex, especially for beginners.
  • Etsy: Etsy is the go-to marketplace for unique, handmade, or vintage items. It’s less about building your own store and more about joining a vibrant, existing marketplace.
  • Teachable and Thinkific: Both are excellent for creating and selling online courses. They offer a range of tools tailored for educators and coaches, focusing on course creation and student engagement.
  • Gumroad: Simple and straightforward, Gumroad is perfect for independent creators selling digital products like books, music, or art directly to their audience.
  • Kajabi: Kajabi is an all-in-one platform offering tools for online courses, marketing, and website building. It’s ideal for those offering educational content and looking for a comprehensive solution.

Comparison Table: Stan Store vs. Alternatives

Feature/Platform Stan Store Shopify WooCommerce Etsy Teachable/Thinkific Gumroad Kajabi
Customization Moderate High High Low Moderate Low High
Ease of Use High Moderate Moderate High High High Moderate
Target Audience Creators General Retail WordPress Users Artisans Educators Independent Creators Educators/Marketers
Product Type Digital All Types All Types Handmade/Vintage Courses Digital Products Courses/Marketing
Pricing Model Subscription Subscription Free (Plugin) Transaction Fees Subscription Transaction Fees Subscription

This table gives a quick overview of how Stan Store compares with its alternatives in terms of customization, ease of use, target audience, product type, and pricing model. Each platform has its strengths, and the best choice depends on your specific business needs and goals.

Is Stan Store Worth it?

After diving deep into Stan Store and comparing it with its alternatives, the big question remains: Is Stan Store worth it? Based on my experience and the insights I’ve gathered, my answer leans towards a yes, especially for a specific audience.

Stan Store stands out for its sheer simplicity and focus on digital content creators. If you’re just starting out or find yourself overwhelmed by the complexities of more advanced platforms, Stan Store offers a welcoming and straightforward path. The ease of setting up a sales or landing page, combined with the platform’s focus on digital products, makes it an attractive option for creators who want to monetize their content without the hassle.

The pricing, initially a point of skepticism for me, actually makes sense when you consider the target audience and the features offered. For beginners and those not ready to navigate the complexities of platforms like Shopify or WooCommerce, Stan Store’s $29 monthly fee for the Creator plan is a reasonable investment.

And for those looking to scale up, the Creator Pro plan, despite its higher price, brings in advanced features that could justify the cost as your business grows. If you’re not sure Stan Store is a good fit, the 14-day free trial might be exactly what you need.

Bottom Line – Stan Store Honest Review

In conclusion, while Stan Store might not be the one-size-fits-all solution for every online entrepreneur, it certainly has carved out its niche. It’s a platform that understands and caters to the needs of digital content creators, making it a worthwhile consideration for those in its target demographic.

As with any tool, it’s about finding the right fit for your specific needs, and for many creators, Stan Store could be just that.

To try Stan Store for free, click here for a 14-day trial.



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What is Systeme.io + how it works + my review (January 2024) https://fromermediagroup.com/2024/01/08/what-is-systeme-io-how-it-works-my-review-january-2024/ Mon, 08 Jan 2024 22:50:00 +0000 https://fromermediagroup.com/2024/01/08/what-is-systeme-io-how-it-works-my-review-january-2024/

Systeme.io has emerged as a versatile tool in the digital marketing landscape, often met with initial skepticism due to its bold claim of being an all-encompassing, free platform. This skepticism is not uncommon; many assume that a free, all-in-one software solution might compromise on quality.

However, as experienced firsthand, Systeme.io defies these expectations, offering robust functionality that genuinely surprises new users.

screenshot of systeme.io homepage

The platform serves a multifaceted purpose, aiming to simplify the digital marketing process. It’s designed for entrepreneurs and businesses seeking an integrated solution for email marketing, sales funnels, website building, and more. The importance of such a tool lies in its ability to streamline various marketing tasks, which are often scattered across different platforms, into one cohesive system.

How Systeme.io Works

The user interface of Systeme.io is a standout feature, characterized by its user-friendly design. This ease of use is particularly appealing to those who are new to digital marketing tools. The interface is intuitive, making navigation and operation straightforward, which is a stark contrast to the often complex dashboards of similar tools.

At the core of Systeme.io are several key features that make it a comprehensive digital marketing solution. These include email marketing capabilities, sales funnel creation tools, a website builder, options for hosting membership sites, and affiliate program management.

Each of these features is designed to work seamlessly with the others, providing a unified experience. For instance, the email marketing service is notably efficient, rivaling established providers like ConvertKit, AWeber, and MailChimp, especially with its free subscription model that remains functional up to a certain point.

Features of Systeme.io

Email Marketing: Systeme.io’s email marketing tool is not just about sending emails. It allows you to segment your audience, create personalized email campaigns, and track the performance with detailed analytics. For instance, you can segment your audience based on their behavior, like those who clicked a specific link in your last email. This level of customization ensures that your messages are targeted and effective.

Sales Funnel Builder: The sales funnel builder is a standout feature. It’s not just about creating a sequence of pages; it’s about guiding your potential customers on a journey. You can set up a funnel that starts with a landing page, leads to a product page, and ends with a thank you page, all while tracking user behavior. The drag-and-drop interface makes it easy to design each step, and you can add elements like pop-ups or forms to capture leads.

Blogging and SEO: Systeme.io’s blogging platform is straightforward yet powerful. You can create SEO-friendly blog posts with ease, thanks to features like customizable URLs, meta tags, and integration with Google Analytics. This ensures that your content is not only engaging but also ranks well in search engine results.

Automation and Workflow: Automation in Systeme.io is about saving time and creating efficient processes. For example, you can set up an automation rule to send a welcome email to new subscribers or trigger a specific action when someone purchases a product. This feature simplifies complex marketing tasks, making it easier to manage large-scale campaigns.

Affiliate Program Management: With Systeme.io, you can run your own affiliate program. This means you can recruit affiliates, track their performance, and manage payouts all within the same platform. It’s an excellent way for businesses to expand their reach without a significant increase in marketing spend.

Feature Description
Email Marketing Advanced segmentation, personalized campaigns, performance tracking
Sales Funnel Builder Drag-and-drop interface, user journey mapping, lead capture elements
Blogging and SEO SEO-friendly tools, customizable URLs, Google Analytics integration
Automation and Workflow Time-saving automation rules, efficient process management
Affiliate Program Management In-platform affiliate recruitment, performance tracking, payout management

Benefits of Systeme.io

One of the most significant benefits of Systeme.io is its cost-effectiveness. The platform offers a surprising amount of functionality without any initial investment, making it an attractive option for entrepreneurs and small businesses with limited budgets. This aspect was particularly striking, as it’s rare to find a platform that provides such a wide range of features for free.

Another major advantage is the all-in-one nature of Systeme.io. It eliminates the need for multiple subscriptions to different services, consolidating essential marketing tools into one platform. This not only simplifies the management of digital marketing activities but also ensures better integration and efficiency. The platform’s ease of use is a testament to its well-thought-out design, catering to users who may not have extensive experience in digital marketing.

Drawbacks of Systeme.io

Despite its many strengths, Systeme.io is not without its limitations. One notable drawback is the limited customization options. While it offers a range of templates and a user-friendly interface, users who desire more advanced customization may find the platform somewhat restrictive compared to more specialized software.

Scalability can also be a concern with Systeme.io. As businesses grow, their needs become more complex, and the platform may not be able to keep pace with these evolving requirements. This is particularly relevant for larger businesses or those with highly specialized needs. Additionally, while Systeme.io integrates well within its ecosystem, it may have limitations when it comes to integrating with external tools and services.

Systeme.io Pricing Structure

screenshot of systeme.io plan options and pricing structure

The pricing structure of Systeme.io is one of its most appealing aspects. The platform operates on a freemium model, offering significant functionality without any cost for up to 2000 contacts or email subscribers and three sales funnels. This approach allows users to thoroughly test and experience the platform before committing financially.

When compared to competitors, Systeme.io’s pricing is highly competitive. For instance, platforms like ClickFunnels offer powerful functionality but at a higher cost, typically starting at around $100 per month after a free trial. This can be a significant investment, especially for new entrepreneurs or small businesses. In contrast, Systeme.io’s paid plans, which provide access to a broader range of features, are more affordable, starting at less than $30 a month.

Comparative Analysis with Other Tools

To provide a broader perspective, let’s compare Systeme.io with other popular tools in the market:

Feature/System Systeme.io ClickFunnels HubSpot Kartra
Email Marketing Advanced segmentation and automation Basic email functionalities Comprehensive email tools with CRM integration Advanced automation and lead scoring
Sales Funnel Builder Intuitive drag-and-drop builder Highly customizable funnels More focused on inbound marketing Similar to ClickFunnels with added features
Blogging and SEO Basic but effective SEO tools Not a primary feature Advanced SEO and content strategy tools Limited blogging capabilities
Automation and Workflow Simple automation rules Complex automation capabilities Extensive automation with CRM integration Advanced automation but steeper learning curve
Affiliate Program Management Integrated affiliate management Available but less intuitive Not a core feature Robust affiliate management system
Pricing (Starting Plan) Free plan available $97/month $45/month $99/month

This comparison shows that while Systeme.io offers a comprehensive suite of tools at an affordable price, platforms like HubSpot and Kartra provide more advanced features in certain areas but at a higher cost. ClickFunnels, on the other hand, is more expensive but offers highly customizable funnel-building capabilities.

User Reviews and Testimonials

User reviews and testimonials play a crucial role in understanding the real-world effectiveness of Systeme.io. Many users have shared success stories, highlighting how the platform has helped them streamline their marketing efforts and grow their businesses. These positive experiences often emphasize the platform’s ease of use, comprehensive feature set, and excellent value for money.

However, it’s also important to consider critiques and common issues raised by users. Some have pointed out the limitations in customization and scalability, as mentioned earlier. These critiques are valuable for potential users to set realistic expectations and for the platform’s developers to identify areas for improvement.

Systeme.io for Different Business Sizes

Systeme.io’s suitability for small businesses is one of its key strengths. Its simple interface, combined with a comprehensive set of tools, makes it an ideal choice for small enterprises looking to establish or expand their online presence without a significant investment in multiple tools or platforms.

For medium to large enterprises, the relevance of Systeme.io can vary. While it offers a solid foundation for digital marketing, larger businesses with more complex needs might find the platform somewhat limiting. However, for businesses at the cusp of growth, Systeme.io can be an excellent tool to start with, providing a cost-effective solution for scaling up their marketing efforts.

Final Verdict on Systeme.io

The overall assessment of Systeme.io is overwhelmingly positive, especially when considering its target audience of small businesses and entrepreneurs. The platform offers a remarkable range of features at an unbeatable price point, making it an excellent choice for those starting their digital marketing journey or looking to consolidate their marketing tools.

The recommendation for specific user groups would vary based on their size, needs, and experience in digital marketing. For beginners and small businesses, Systeme.io is an excellent choice, offering everything needed to get started with digital marketing. For more established businesses or those with very specific needs, it might serve as a stepping stone before moving on to more specialized or advanced platforms.



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9 Figures Is How Much? https://fromermediagroup.com/2023/10/14/9-figures-is-how-much/ Sat, 14 Oct 2023 19:15:03 +0000 https://fromermediagroup.com/2023/10/14/9-figures-is-how-much/

Have you ever wondered what a 9-figure amount looks like? It’s a sum of money too big to ignore, with a whopping total of 100 million to less than 1 billion. Discover more about this colossal figure and the wealth it represents

When we mention nine-figure sums, we’re talking about a truly astronomical level of wealth. To put it in perspective, nine figures represent anything from $100,000,000 all the way up to $999,999,999. 

This figure surpasses the GDP of several small nations. For instance, Samoa reported a GDP of approximately 830 million USD in 2022.

Or consider that according to Investopedia, 7-figure wealth is what puts you among the top 0.1% of the wealthiest people on the planet. This means that having nine figures puts someone at an even more elite level, one whose luxury extends far beyond mere financial freedom.

Only a small fraction of individuals or companies globally can boast such immense wealth. However, it is not an unattainable goal. Let’s take a look at some of the strategies you can employ to accumulate substantial wealth while also examining the lifestyles and pursuits of those who have successfully achieved it.

How Much Is a 9-figure Salary?

A nine-figure income signifies any earnings that flaunt nine digits, starting from $100,000,000 and soaring upwards. To put it into words, we’re discussing one hundred million dollars. 

Quite a mind-boggling figure, isn’t it?

It’s like being handed the keys to a kingdom of unimaginable wealth. But remember, this is a sphere occupied by only a select few worldwide. 

Their playgrounds? Often, you’ll find them in the tech sector, inheriting vast wealth or expanding an already thriving family business.

Now, let’s delve a bit deeper, shall we? 

When we speak of nine figures, are we referring to the lower end close to one hundred million, the middle ground around 550,000,000, or the staggering high end nearing 999,999,999?

So, the next time you find yourself daydreaming about a nine-figure salary, remember this: It’s not just a number; it’s a lifestyle, a testament to extraordinary achievements, and a beacon of exceptional success.

And who knows? With the right mix of passion, dedication, and a sprinkle of luck, you might just find yourself joining this elite club. 

After all, isn’t the sky the limit when it comes to chasing our dreams? 

Examples of People Who Earn 9-Figure Incomes

1. Cristiano Ronaldo: A Sports Icon – With an astonishing income of $105,000,000, this celebrated athlete is not just a football superstar but also a nine-figure earner.

2. Safra A. Catz: Leading Oracle – As the CEO of Oracle, Safra A. Catz’s leadership prowess is reflected in her staggering earnings of $108,200,000.

3. David Zaslav: The Discovery Dynamo – Captaining Discovery as its CEO, David Zaslav, commands a whopping $129,500,000.

4. Nikesh Arora: The Palo Alto Networks Powerhouse – As the CEO of Palo Alto Networks, Nikesh Arora’s genius is rewarded with a hefty paycheck of $125,000,000.

5. Roger Federer: Tennis Titan – This globally recognized athlete proves that sports can indeed yield nine-figure incomes, as evidenced by his impressive earnings of $106,300,000.

Case Study: What Does A 9-Figure Earning Look Like?

Understanding the intricacies of nine-figure earnings can be a complex undertaking due to the lack of universally defined parameters. For the context of this case study, we will consider an annual income of at least $432K as the lower limit for this category. It is worth noting that any figure below this threshold would classify one into the realm of billionaires.

Renowned business magnates such as Warren Buffet and Mark Zuckerberg exemplify this earnings bracket, with annual incomes reported around $51M and marginally less than $50M, respectively.

warren buffett, successful investor of all time, shares his views on investing and the stock market

Reaching the stature of a nine-figure income earner typically necessitates either a substantial inheritance or proprietorship of a prosperous company with diverse revenue channels. The case of Elon Musk serves as a prime example, with his considerable income derived from two distinct sources – Tesla and SpaceX.

Aspiring for this scale of income undoubtedly sets a high bar. However, with the appropriate strategy and relentless determination, it is not beyond reach. Be prepared to tread a path akin to those who have already achieved this feat.

What Is the Potential Monthly, Weekly, Daily, or Hourly Income in the 9-Figure Range?

How Much Is 9 Figures Monthly?

To figure out the monthly income from a massive annual salary, just divide the yearly amount by 12. Keep in mind that this will give you a range of values. But if you want to earn a nine-figure salary, the smallest monthly income would be $8,333,333.33.

$100,000,000 per year / 12 months = $8,333,333.33 per month

This question might take a different perspective if you’re raking in 9 figures every month. That means your annual income would be at least $1,200,000,000 or even more.

How Much Is 9 Figures a Week?

If we were to divide the 9-figure annual salary by 52 weeks, we’d be looking at a minimum weekly income that could make anyone’s head spin – a cool $1,923,076.9! 💸💼.

$100,000,000 per year / 52 weeks = $1,923,076.9 per week

While you’re at it, if you manage to rake in a solid 9-figure sum every week, your annual income will soar to a minimum of £52,000,000,00 or maybe even more. 

How Much Is 9 Figures a Day?

Want to know how much you can earn daily from a nine-figure income? Just divide it by 365! If you make money every day, your minimum daily earnings would be $273,972.6. That’s your ticket to the nine-figure club!

Here’s the breakdown:

$100,000,000 per year / 365 days = $273,972.6 per day

Now, let’s say you take weekends and U.S. holidays off. In that case, you’d need to earn around $381,679.3 per day to make $100,000,000 per year. It’s a good goal to aim for if you want that nine-figure salary without burning yourself out.

How Much Is 9 Figures an Hour?

If you’re seeking a nine-figure income from hourly wages, the calculations are slightly different. Just divide your per day salary by 8 hours, and voilà! The minimum number is $47,709.90 per hour. This calculation is based on working days – usually 262 days per year in the US.

How Much Is 9 Figures After Taxes?

Achieving a 9-figure income is quite an extraordinary feat, one that is typically reserved for the most successful entrepreneurs, athletes, and entertainers in our society. It’s almost impossible to reach that level through a single salary alone. 

Instead, individuals in this income bracket often have multiple income streams, such as investments, business ventures, and other revenue-generating activities.

Calculating the exact tax on a 9-figure income can be a challenging endeavor. Taxes can vary greatly depending on many factors, including location, type of income, applicable deductions, and more. However, it’s safe to say that anyone earning in the 9-figure range will face a significant tax bill. 

What Is the Pathway To Achieving a 9-Figure Income?

If you are in pursuit of a 9-figure income, it is essential to have an understanding of the components that fuel this elusive status. What sets apart these high-net-worth individuals from the rest is their capacity to create multiple streams of passive income and capitalize on them. 

Here are some tips to help you achieve this milestone:

Acquire Valuable Skills and Experience

The first step towards achieving a 9-figure income is building a solid foundation of high income skills and experience in a high-value field. This could be anything from technology and finance to entertainment and sports. The key is to become exceptionally good at what you do, often necessitating years of dedication, learning, and practical application.

Build or Join a High-Growth Venture

Next, it’s super important to either build or get involved in a high-growth venture. This could mean starting a business with a game-changing idea or joining a rapidly expanding company in a leadership position. The aim here is to use your unique skills and experiences to create substantial value and wealth, which could potentially lead to a massive income if the venture becomes incredibly successful.

Invest Wisely and Diversify Your Income Streams 

Who said you can’t have your cake and eat it too? Investing in the stock market, real estate, bonds, and other alternative investments is another way to generate a 9-figure income. It’s important to diversify your portfolio across multiple strategies so that you’re not overly exposed to any one asset class.

Let’s give you an example. 

If you’re already running a successful business, consider investing in cryptocurrency or another digital asset class to increase your income streams. This could provide an additional source of passive income that can help solidify your journey to a 9-figure salary.

Equities and Derivatives Trading

The stock market is an incredibly powerful tool that can help you to achieve a 9-figure income. Through equity and derivatives trading, you can tap into the world’s most lucrative markets and make substantial returns on your investments in a short amount of time. 

Learning how to navigate this complex ecosystem of risk and reward requires patience, dedication, and a lot of practice. Start by investing in the stock market or trading on a simulated platform to get comfortable with the process before taking it to the next level. 

Leverage Networks and Opportunities

Networking is a critical component of achieving a 9-figure income. By cultivating meaningful relationships with influential people in your industry, you can open doors to opportunities that might otherwise remain closed. These could include partnerships, investments, or high-profile job offers that can significantly boost your income.

Jobs That Pay 9 Figures

Earning a nine-figure salary is an incredibly rare achievement reserved for the top echelons of various lucrative industries. Here are some of the highest-paying jobs and industries that can bring in nine-figure salaries. 

Tech Company Bosses

Tech company bosses, particularly those at the helm of companies like Amazon, Facebook, and Tesla, are among the highest earners globally. Their compensation often comes in the form of stock options, which can value in the hundreds of millions or even billions when their companies perform well.

Examples Include: 

  • Elon Musk, CEO of Tesla ($242.4 billion)
  • Jeff Bezos, CEO of Amazon ($151.5 billion)
  • Mark Zuckerberg, CEO of Facebook ($103.4 billion) 

Professional Athletes

In the world of professional sports, athletes like Cristiano Ronaldo, Lionel Messi, and LeBron James have managed to secure contracts and endorsement deals that push their annual incomes into the nine-figure realm. These athletes excel in their respective sports and have built strong personal brands, attracting lucrative sponsorship deals.

According to reports, these athletes earned more than $100 million in a single year:

Hollywood Celebrities

Hollywood is no stranger to nine-figure earners. Actors like Dwayne Johnson and Robert Downey Jr., thanks to their roles in blockbuster franchises, command massive salaries. Additionally, they earn significantly from endorsements, producing roles, and profit participation deals.

Media Stars

Media stars, especially those with a strong presence on digital platforms, can earn nine figures. For instance, YouTubers and influencers with millions of followers can generate substantial income from ad revenue, brand partnerships, and merchandise sales.

Hedge Funds & Investment Bankers

Investment bankers and hedge fund managers are some of the highest earners in the financial sector due to their expertise. Some notable examples include: 

  • Ray Dalio: Founder of Bridgewater Associates ($19.1 billion)
  • David Tepper: Hedge fund manager ($18.5 billion) 
  • Carl Icahn: Founder of Icahn Enterprises ($10.1 billion) 

Pop Superstars

The music industry has always been a lucrative field for successful artists. Pop superstars like Taylor Swift and Beyoncé have made fortunes from their music sales, concert tours, and endorsement deals. These musicians not only create hit songs but also build powerful brands that amplify their earnings.

Entertainment (Actors, Singers, Dancers, Etc.)

Performers in the entertainment industry, including actors, singers, and dancers, can achieve nine-figure incomes. Successful film actors can earn millions per movie while top-charting musicians make a significant portion of their income from touring. Broadway performers and dancers in high-demand shows can also command high salaries.

Top-Notch Business Owners

Business owners, especially those who own large corporations or successful startups, can earn nine figures. This income comes from their business profits and, in some cases, from selling their businesses. Entrepreneurs like Elon Musk and Jeff Bezos have made billions from their ventures.

These careers represent the pinnacle of earning potential in their respective fields. However, it’s essential to note that reaching this income level requires exceptional talent, hard work, and often a good dose of luck.

Are 9-Figures Rich?

When we talk about money, figures, and digits start dancing in our heads. Six figures? That’s quite impressive. Seven figures? Now you’re playing with the big boys. But when we leap into the world of nine-figure incomes, we’re talking about a whole different ball game. It’s like comparing a kiddie pool to the Pacific Ocean!

A nine-figure income means someone is raking in between $100,000,000 and $999,999,999 annually. That’s right. There are more zeros in that figure than in a beginner’s Sudoku puzzle! This income bracket places individuals among the financial titans of the world. To put it plainly, if you’re earning nine figures, you’re not just rich—you’re Scrooge McDuck swimming in a vault of gold-level wealth.

But let’s be real, nine-figure incomes are as rare as a unicorn at a donkey convention. Even some of the world’s wealthiest individuals, like Bill Gates and Warren Buffet, didn’t make their billion-dollar fortunes overnight. It took years of smart decisions, a bit of luck, and probably a few sleepless nights.

And don’t forget, these ultra-wealthy folks aren’t waiting for a paycheck every month. Their wealth comes from various sources, including investments, real estate, and businesses3. They’ve got their fingers in so many pies; they could open a bakery!

What Does a 9-Figure Lifestyle Entail?

Living a 9-figure lifestyle is beyond the realm of what most people could even imagine. It involves not just extraordinary wealth but also the responsibilities and opportunities that come with it. Here’s a detailed look at what such a lifestyle might entail:

Extreme Luxury

A 9-figure lifestyle allows for some of the most opulent luxuries in the world. For instance, consider real estate: billionaires often own multiple properties around the globe. According to a report by Economics Times, the average billionaire owns 4 homes, with each worth nearly $20 million.

Traveling is another area where this wealth is evident. Private jet travel is commonplace among this group. The cost of owning a private jet can range from $3 million to over $90 million, not including the ongoing costs of maintenance, fuel, and crew salaries.

Philanthropy

Philanthropy is a significant aspect of a 9-figure lifestyle. Many ultra-wealthy individuals are committed to giving back to society. For example, Warren Buffett, one of the richest people in the world, pledged to give away 99% of his wealth to philanthropic causes.

The Giving Pledge is another example of this. Initiated by Bill Gates and Warren Buffet, it’s a commitment by some of the world’s wealthiest individuals and families to give away more than half of their wealth to solve societal problems.

Investments

Individuals with a 9-figure income often have vast and diverse investment portfolios. For instance, Jeff Bezos, the founder of Amazon and one of the wealthiest individuals on the planet, has investments spanning multiple industries. He owns The Washington Post, has a venture capital firm called Bezos Expeditions, and invests in space exploration with his company Blue Origin.

Personal Staff

Having a 9-figure income often means employing an extensive personal staff to handle daily affairs. For example, Oprah Winfrey, a billionaire media mogul, reportedly employs a team of over 3,000 staff, including gardeners, chefs, housekeepers, and security personnel.

This level of staffing isn’t uncommon among the ultra-wealthy. After all, managing a 9-figure lifestyle requires a lot of planning and assistance to make sure everything runs smoothly. 

Political Influence

The ultra-wealthy have significant influence in politics due to their large contributions to political campaigns and the influence they can wield over policy decisions. This influence can be used for both good and bad purposes, depending on who is wielding it. 

However, the effects of political influence by wealthy individuals shouldn’t be underestimated. It can have a profound impact on policy decisions and shape public opinion in powerful ways. This level of influence is not available to everyone, but those with 9-figure incomes typically use it to their advantage. 

Privacy and Security

With great wealth comes the need for privacy and security. People with a 9-figure income often invest in advanced security systems, hire personal security staff, and take measures to maintain their privacy.

This isn’t just to protect their money; it’s also about protecting themselves and their families from potential threats. After all, when you’re one of the wealthiest people in the world, there are bound to be a lot of eyes on you.

High-End Experiences

Those with a 9-figure lifestyle often have access to experiences that are out of reach for most. This can range from private concerts with top musicians to exclusive dining experiences with world-renowned chefs. 

This level of wealth also opens up opportunities to travel to the most luxurious places in the world. From private island getaways to luxury cruises, the experiences available to 9-figure earners are limited only by their imagination and budget. 

The Bottom Line – Making 9 Figures

Taking all of this into account, it is clear that those with a 9-figure income have access to exclusive and luxurious experiences, as well as the privacy and security often associated with great wealth. This level of influence can also be extremely powerful. Therefore, it should not be underestimated or overlooked. 

Overall, 9 figures is an amazing achievement and one that requires hard work and dedication. It is often an indicator of success and can open up a world of new possibilities for those who have achieved it. 

Regardless of your current financial status, never forget that anything is possible with determination and perseverance! With the right attitude and mindset, you, too, could one day reach 9 figures or more. Start planning today, and remember to take every opportunity that comes your way. With a bit of luck and the right attitude, success is just around the corner.

FAQs – Making 9 Figures

How many words are nine figures?

Nine figures is a term used to refer to incomes between $100,000,000 and $999,999,999. It does not refer to the number of words. 

Does anyone make nine figures?

In the United States, a remarkably small number of individuals achieve the remarkable milestone of earning nine figures or more. According to a report by Market Watch, only 205 people in America earn an astonishing sum of over $50,000,000 in wages alone annually.

To put this into perspective, a nine-figure income would be twice the amount of $100,000,000! As a result, the exclusivity of this income bracket is amplified, leading to a limited number of individuals who can boast such astronomical earnings.

What do “figures” mean in money?

Figures is a term used in accounting and finance to refer to digits of numerical values. It does not refer to physical currency or coins. For example, if you have $50,000, five figures are present (50000). This can also apply to other forms of money, such as stocks, bonds, and investments. 

What is a nine-figure job?

A nine-figure job is a term used to refer to the careers of those who have achieved the tremendous milestone of earning nine figures or more annually. This could include professionals from various industries such as tech, investment banking, and sports.

These individuals are typically highly successful in their fields and command higher salaries than other professionals due to their extensive experience and knowledge. 

What’s the difference between a 9-figure salary and a 9-figure income?

A 9-figure salary is an annual income of $100,000,000 or more. A 9-figure income is a measure of all sources of income that a person has, including wages, investments, and other revenue streams like royalties. This means that a person can have a nine-figure income without having an extremely high salary.

For example, someone who earns a salary of $1,000,000 but has investments of $100,000,000 would have a 9-figure income. This demonstrates why it is important to consider all sources of income when assessing the overall financial health and status of an individual or family. 

What is the difference between 9 figures and 8 figures?

Eight figures refer to financial values between $10,000,000 and $99,999,999. In contrast, 9 figures are incomes of $100,000,000 or more. This is an important distinction to make when discussing the wealth of individuals because it shows how much greater the income of a nine-figure earner is compared to someone with eight figures.

For example, someone who makes $100,000,000 in a year would have twice the earnings of someone who makes $50,000,000. This is why it is important to consider figures when discussing wealth and income, as they can provide valuable insight into the financial status of an individual or family.

Is 9 figures a lot of money?

Yes, 9 figures is a lot of money. It is an astronomical amount that few individuals ever reach. As such, it demonstrates the impressive achievements of those who have managed to achieve nine-figure incomes and provides insight into their level of success and financial status. 



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10 Ways to Make One Million Dollars https://fromermediagroup.com/2023/10/11/10-ways-to-make-one-million-dollars/ Wed, 11 Oct 2023 19:13:13 +0000 https://fromermediagroup.com/2023/10/11/10-ways-to-make-one-million-dollars/

Discover ten practical strategies to help you make one million dollars and achieve financial success. From choosing the right career and investing early to avoiding debt and building a side hustle, these steps can bring you closer to your millionaire goals, whether you’re aiming for a fast track or a more gradual journey.

Having a million dollars may seem like an impossible dream, particularly if you’re starting from zero. But the fact that there are more than 33 million millionaires in the US already means it’s doable.

After all, if at least 33 million people can do it, so can you.

All you need are the right strategies and a generous helping of patience, and you can do it too.

To help you in that pursuit, I’ve laid out ten ways to make one million dollars.

Depending on your current financial situation and the intensity of your effort, you can reach millionaire status anywhere from a few years to two or three decades.

How to Make $1 Million Dollars

ways to make 1 million dollars

1. Choose the Right Career

The more money you earn, the more you’ll be able to save and invest. That will make the path toward one million dollars shorter and easier. For example, it will be much easier to save 20% or 30% of a $150,000 salary than it will be with a $75,000 salary.

U.S. News published a list of the top paying jobs in America earlier this year. It should come as no surprise that a disproportionate number of those are in the healthcare field, typically doctors of one type or another.

But I whittled that list down to the top-paying positions that don’t require you to have a medical degree. After all, not everyone is cut out to be a doctor.

Here’s the list, including the average salary for each occupation:

  • Petroleum Engineer: $154,780
  • IT Manager: $149,730
  • Marketing Manager: $145,620
  • Financial Manager: $143,530
  • Lawyer: $141,890
  • Sales Manager: $137,650
  • Financial Advisor: $124,140
  • Business Operations Manager: $123,460
  • Pharmacist: $121,710
  • Actuary: $114,850
  • Political Scientists: $112,030
  • Medical and Health Services Manager: $111,680

These are just examples of careers known to pay high salaries. If you’re not in one now, it’s something to aspire to. And there are plenty of other trade jobs or career fields where you can make six figures, particularly today on the Internet.

Make it a goal, and pursue it like your financial future depends on it – because it really does.

2. Invest Early and Often

A lot of young people don’t invest early, and that’s a big mistake. It’s understandable since so many people in their 20s graduate from college with big student loan debts. Then there’s always the pull to acquire the trappings of your desired lifestyle.

First and foremost, that includes a car. And then there’s an apartment and everything you need to fill it. Then there are those life-enriching experiences, like vacations and travel.

It’s fine to put some of your money into each of those.

But at the same time, the earlier you begin investing, the more quickly you’ll accumulate wealth.

Even if you start with a little bit, you’ll get yourself on track. And just as important, you’ll be getting yourself into the habit of investing regularly.

But let’s spend a moment on the importance of beginning to invest early.

Let’s say you earn $50,000 per year and invest 10% of it – $5,000 per year. In a blended portfolio of stocks and bonds earning an average annual rate of return of 7%, you’ll have just about $1 million by the time you’re 65.

The calculation is incredibly conservative because it assumes your income will remain at $50,000 per year for the next 40 years. It will almost certainly increase, probably dramatically.

That means your portfolio at 65 will be much higher. In fact, you might even reach the $1 million mark before you turn 50, especially if your income rises quickly. Here’s a sample table that shows the potential growth:

YEAR BEGINNING BALANCE ANNUAL INVESTMENT INTEREST EARNED ENDING BALANCE
1 $0 $5,000 $350 $5,350
2 $5,350 $5,000 $723 $11,073
10 $61,359 $5,000 $4,595 $70,954
20 $198,378 $5,000 $14,189 $217,567
30 $489,632 $5,000 $34,574 $529,206
40 $952,963 $5,000 $67,107 $1,025,070

The key to investing your way to $1 million is to start early, let compound interest do its thing, and do it each and every year.

Million Dollar Secret:

The More You Devote to Savings and Investing, the Faster You’ll Become a Millionaire

The higher the percentage of your income you can devote to savings and investing, the sooner you’ll be a millionaire.

In the example above, I showed how you could become a millionaire by investing 10% of your income for 40 years. But if you gradually increase that percentage to 15%, 20%, or even 30%, the sooner you’ll reach millionaire status.

One proven way to do that is to increase your savings percentage each time you get a pay increase.

For example, if you get a 2% pay hike, increase your savings percentage by 1%. That’s how you can turn 10% into 15% in just five years, or 20% in ten years.

Below is a table that provides a clear example of how this might work over time. Assuming an initial savings rate of 10%, the table illustrates how the savings rate can increase to 15% in five years or 20% in ten years, by increasing the savings percentage by 1% for every 2% pay hike.

YEAR PAY INCREASE (%) INCREASE IN SAVINGS RATE (%) TOTAL SAVINGS RATE (%)
1 2 1 11
2 2 1 12
3 2 1 13
4 2 1 14
5 2 1 15
6 2 1 16
7 2 1 17
8 2 1 18
9 2 1 19
10 2 1 20

Aspiring millionaires don’t save and invest like everyone else. No, they go MUCH higher. It’s how so many become millionaires well before reaching retirement age.

3. Emphasize Growth Investments

I just mentioned a portfolio with an average annual rate of return of 7%. That’s based on a portfolio mix of approximately 60% stocks and 40% bonds. But it’s possible to do even better.

The average annual rate of return on stocks has been right around 10% for the past 90 years. While you should include fixed-income investments, like bonds, the largest allocation needs to be in stocks or other high-yield investments if you want to become a millionaire.

A portfolio consisting of 90% stocks and 10% bonds will produce an average annual yield of better than 9%. And it’s strongly recommended when you’re in your 20s, or even your 30s.

The idea is to emphasize growth in your portfolio. Right now, fixed-income investments are only paying around 2% per year.

You’ll never get rich on that kind of investment. Fixed-income investments do add an important safety element to your portfolio. That’s why you need to have them, though you don’t want to have too many.

If you’re not comfortable being too heavily invested in stocks, you can also expand into real estate investment trusts, or REITs. They have an average long-term return of close to 13% going back to 1978. That’s even better than the return on stocks.

Whether you invest primarily in stocks or REITs – or both – you’ll be adding the growth you need to build your portfolio faster over the long term.

Below is a table that represents various types of growth investments, along with their potential return and level of risk.

INVESTMENT TYPE POTENTIAL RETURN (%) LEVEL OF RISK
Stocks 7 – 12 High
Bonds 3 – 5 Low to Moderate
Real Estate 6 – 9 Moderate to High
Mutual Funds 5 – 10 Moderate
Exchange-Traded Funds (ETFs) 4 – 10 Moderate
Commodities 5 – 12 High
Private Equity 10 – 25 Very High
High-Yield Bonds 6 – 8 Moderate to High
Money Market Funds 1 – 2 Low
Venture Capital 15 – 30 Very High

4. Use Your Employer-Sponsored Retirement Plan for All It’s Worth

If you’re not taking full advantage of your employer’s sponsored retirement plan, you’re missing a major opportunity to reach the million-dollar mark. Employer-sponsored plans like 401(k) and 403(b) plans are one of the very best ways to reach millionaire status.

First, you can contribute up to $22,500 per year, or $30,000 if you’re 50 or older. And under plan rules, there’s no percentage of income limit. You can contribute the first $22,500 you earn to your plan. What’s more, the contributions will be tax-deductible, which means the government will be helping you fund your plan.

Meanwhile, the investment income built into the plan will accumulate on a tax-deferred basis. A 10% return on your portfolio will be 10%, rather than 7%, after being reduced for income taxes in a taxable investment account. Over the long term, that’ll make a huge difference.

But there’s another benefit that makes employer-sponsored retirement plans a must-have, and that’s employer matching contributions.

If your employer will provide a 50% matching contribution on up to a 10% contribution by you, that will add an extra 5% to your plan each year. It’ll increase your total contributions from 10% to 15% each year. Needless to say, your plan will grow 50% faster.

An employer matching contribution is like getting free money because that’s what it is. At a minimum, you should make a personal contribution rate sufficient to produce the maximum employer matching contribution.

5. Buy a House…or Two or Three

A house is a silent wealth-building machine. Even if you simply live in the house and make the monthly mortgage payments as scheduled, you’ll be building up a tremendous amount of equity.

For example, let’s say you purchase a house for $300,000. The house doesn’t rise in value, but after 30 years, your mortgage is paid in full, and you own the property free and clear. That will add $300,000 to your net worth.

But at least since World War II, a house has been a way to build wealth in two directions: paying down and ultimately paying off the mortgage and increasing property values.

According to huduser.gov, the median price of a new house was $130,000 in the middle of 1994. By July 2023, the median price had reached $415,400. That’s an increase of just over 270% in 25 years.

Based on those numbers, a house you purchase today for $300,000 could be worth $750,000 in 25 years. That single house purchase would get you three-quarters of the way to $1 million all by itself.

6. Start Your Own Side Hustle

If you don’t have the type of job that pays a six-figure income, one important way to work around that limitation is by starting a side business.

There are too many advantages to a side hustle to pass up the opportunity:

  • You’ll have a chance to earn additional income.
  • The additional earnings can be dedicated specifically to savings and investments, enabling you to build your portfolio faster.
  • You can grow a side hustle to the point where it earns more money than your regular job.
  • There are tax benefits to having a side hustle. You can write off business expenses and even take advantage of very generous self-employed retirement plans.

Choose a business where you’re knowledgeable, and preferably one you’re passionate about. Remember, the side hustle isn’t providing you with your regular paycheck for living expenses. For that reason, you can choose to do something you actually want to do.

And one thing that almost always happens when you do something you like is that you end up earning more money!

Which is a nice segue into Strategy #7.

7. Parlay Your Side Hustle into a Full-time Business

One of the best ways to become a millionaire is by becoming self-employed on a full-time basis. There are no limits on how much you can earn, and a successful business can often be sold for a large windfall – even millions of dollars.

A lot of people are understandably afraid to start their own business. That makes sense because there are risks involved. The first is that there will be no cash flow when you start. If that continues for too long, your business will fail.

But you can avoid that outcome if you start with a side hustle. While you’re still on someone else’s payroll, you can build up your business on the side.

You’ll be able to take as much time as you need, and do what’s necessary to make it happen, all without the risks associated with making it a full-time plunge.

Once you reach the point where your side hustle is providing steady cash flow, maybe even something close to income from your full-time job, it’ll be time to take the leap of faith and make it your full-time venture.

Armed with the knowledge that your business can succeed because of your side hustle experience, you’ll have the confidence to take your business as far as your talents and efforts can.

As a side benefit, special self-employed retirement plans, like the SEP IRA and Solo 401(k), can enable you to contribute up to $66,000 per year.

With tax-sheltered contributions that high, you’ll reach millionaire status in no time at all.

8. Become Friends with Other Millionaires

“You are the average of the five people you spend the most time with.”

Jim Rohn

It’s been said that we’re all the average of our five closest friends. If at least one or two of your friends are already millionaires, you’ll have a better chance of joining them.

That’s because you’ll learn how they think and act, particularly toward money. And just knowing such people can be motivating. When you get to know and become friends with real people who are millionaires, you begin to realize the goal is doable.

What’s more, you can turn to your millionaire friend(s) for advice. And because they’re already there, you can trust you’ll be getting the right advice.

There may even be times when you’ll be able to participate in wealth-building opportunities simply because of the connections your millionaire friend(s) have.

If you don’t know any millionaires personally, make it a point to begin following some on the web. There are many, many highly successful people telling their stories on blogs and YouTube.

Find a few you like and follow them regularly. And by swapping emails, you might just find a real millionaire friend. It’ll be well worth the effort.

9. Avoid “Lifestyle Inflation”

Lifestyle inflation is what happens as your income and wealth rise. While that may seem like a natural progression, it actually hurts your chances of becoming a millionaire. While your income and investments are rising in value, your lifestyle is eating up an increasing percentage of both.

Lifestyle inflation is especially common with rising incomes. As your income grows, you suddenly find yourself “outgrowing” your house, your car, the vacations you take, and the restaurants you frequent. You may also be tempted to join a country club or take on expensive hobbies.

But if you want to become a millionaire in the shortest time frame possible, you’ll need to avoid going in that direction. At best, it will slow you down, and at worst, it may lend you money in bankruptcy court.

Wants turn into needs, and before you know it, you don’t know where your money is going.

If you spend any time studying people in the FIRE movement – which is a moniker for Financial Independence, Retire Early – they do the exact opposite.

As their incomes grow, they keep their living expenses fixed and expand the portion of their earnings that goes into savings and investments.

If you hope to join the million-dollar club, you’ll need to do the same. And that’ll require, first and foremost, avoiding lifestyle inflation.

Translation:

Live as far below your means as possible. There will be plenty of time to enjoy the good things in life once you’re a millionaire. But you’ll have to work on getting there first.

10. Stay Out of Debt

If you buy or own a house, you’ll almost certainly have a mortgage. It’s also very typical to have a loan on a new or late model car. And millions of students graduate college with student loan debts.

If you have any of those debts, you should make it a personal mission to pay them off as soon as possible. You’ll not only get out of debt, but you’ll also free up your cash flow to save and invest more money.

While you’re paying off those necessary debts, it is also vitally important that you avoid other types of consumer debt.

These can include installment debt for the purchase of furniture and similar items, timeshares, and especially credit cards. Each not only adds to your debt burden, but they usually carry very high-interest rates.

For example, if you’re paying 20% on a credit card balance, you’re not likely to get anything close to that in investment returns, at least not on a long-term basis.

Paying off that kind of debt and avoiding it in the first place is the best way to take control of your income. The less debt obligation you have, the quicker the path to $1 million will be.

The Bottom Line: Make One Million Dollars in Just a Few Years

If you’re able to use all 10 of the above strategies, you’ll likely become a millionaire in just a few years. But even if you choose to focus on only three or four, you’re highly likely to reach millionaire status at some point in your life.

You can choose the fast track or the slower one – it’s up to you.



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$35 an Hour Is How Much a Year? https://fromermediagroup.com/2023/10/08/35-an-hour-is-how-much-a-year/ Sun, 08 Oct 2023 19:07:15 +0000 https://fromermediagroup.com/2023/10/08/35-an-hour-is-how-much-a-year/

Ever wondered how hourly earnings translate into a full year’s worth? Let’s crunch the numbers and discover the true power of a $35 hourly wage.

Imagine this: You’ve just received an incredible job offer with a pay rate of $35 per hour. Sounds amazing, doesn’t it? But then, a question pops into your mind: what does that amount to in a year?

Suddenly, you find yourself entering a world where numbers come alive, swirling and dancing to the beat of hourly wages and annual salaries.

In this article, we will unravel the mystery behind the figure of $35. We will follow its path as it multiplies into a weekly wage, expands into a monthly income, and ultimately transforms into an impressive annual salary.

This is not just a mundane mathematical exercise; it is a profound exploration of the true value of your earnings.

Whether you’re a job seeker evaluating offers, or an employee negotiating a raise, rest assured that there is something here for you. So sit back, relax, and allow us to guide you through the journey of understanding how much you can make in a year when paid $35 an hour. 

FACT: The average hourly earnings of all employees in the United States is $33.82 as of August.

This figure is up from $32.18 one year ago, marking a 4.35% increase.

So it means you’re already ahead of the game if you’ve been offered $35 per hour!

$35 an Hour Is How Much a Year?

We’ve calculated the yearly income based on a $35 per hour wage, considering a normal 40-hour workweek. 

Here’s the step-by-step breakdown:

  • Start with a typical workweek of 40 hours and a standard year comprising 52 weeks.
  • Calculate the total number of working hours in a year by multiplying the weekly hours (40) by the weeks in a year (52), which equals 2,080 hours.
  • Determine the gross annual income by multiplying the hourly rate ($35) by the total annual working hours (2,080), resulting in $72,800.

Expert Tip:

Remember, this is your gross income, not net income. It doesn’t include deductions like taxes, insurance, 401K contributions, etc.

However, it does give you an estimate of potential earnings for someone earning $35 per hour.

For comparison, a gross annual salary of $72,800 is considered middle-class income, as it surpasses the $50,000 threshold.

How About if You’re Working Part-Time?

The calculation changes slightly for part-time workers. 

Let’s say you work 20 hours per week instead of the standard 40:

  • Begin with your weekly hours (20) and multiply this by the number of weeks in a year (52), which gives you a total of 1,040 working hours in a year.
  • Next, calculate your gross annual salary by multiplying the hourly rate ($35) by the total annual working hours (1,040), equating to $36,400.

What Does $35 an Hour Translate to in Terms of Paycheck?

Monthly Paycheck

If your hourly rate is $35, your gross monthly salary should average approximately $6,066.60. This figure is derived by dividing the annual salary of $72,800 by 12 months. However, it’s important to note that this amount may vary due to factors such as the number of days in each month and the schedule of your paydays.

Salary Increase Insight: Should your hourly wage increase from $25 to $35, you could anticipate an average monthly increase of approximately $1,733. This represents a significant enhancement to your income.

Weekly Paycheck

For those interested in a weekly perspective, the weekly salary is calculated by dividing the annual salary of $72,800 by 52 weeks, resulting in approximately $1,400. This is the gross amount before any taxes and deductions are applied.

Bi-weekly Paycheck

If you receive your salary bi-weekly, you will typically receive two monthly paychecks. To calculate your gross bi-weekly salary, divide the annual income of $72,800 by 26 pay periods.

With an hourly rate of $35, your bi-weekly paycheck would be around $2,800, prior to any taxes and deductions.

Daily Paycheck

Your daily earnings are contingent upon the number of hours you work each day. For example, if you work an 8-hour shift, your daily earnings would be $280 (calculated at $35 per hour).

Remember:

These figures represent gross income before taxes and deductions.

Your net take-home pay will be less, but understanding these calculations can provide valuable insight into how your hourly wage impacts your paycheck across different pay periods.

This information can serve as a useful tool for financial planning and budgeting.

How Does $35 an Hour Compare?

A wage of $35 per hour might seem like a substantial amount, and that’s because it is when compared to the national averages. If you’re working full-time at 40 hours per week, this hourly wage translates to an annual income of around $72,800. This figure significantly overshadows the median salary in the U.S., which stands at $56,473 per year.

Comparatively, the national average hourly wage in the USA is about $33.74, which puts $35 an hour above average. In biweekly terms, a $35 hourly wage would translate to approximately $2,800 before taxes.

Getting a job with a $35 per hour wage gives job hunters an edge over those starting their search. With this pay rate, candidates can expect attractive offers and valuable career guidance.

Is $35 an Ideal Hourly Wage?

That’s a question that tickles the mind, doesn’t it? Your location and lifestyle are the key ingredients in the secret recipe that determines the true worth of that paycheck. But let’s dig deeper and crunch some numbers with the federal poverty level in mind.

For all you fabulous singles out there without dependents, crossing the yearly income of the $13,590 mark would officially elevate you above the poverty line. On the flip side, if you have a family of four, then the target magic number becomes $27,740. 

Now, earning $35 an hour should surely land you in a comfy spot, don’t you agree? Of course, we’re not talking about a life of luxury here, folks! 

We’re talking about a modest existence. Just sprinkle some budgeting magic, stay on top of those finances, and voila! You’ll be pleasantly surprised how far $35 an hour can whisk you away.

However, we must emphasize the importance of financial savvy and clever choices to maintain a comfortable lifestyle with a $35 hourly rate. By juggling your expenses skillfully and making wise financial decisions, this income level can splendidly cater to your individual needs and your lovely family’s necessities.

Let’s never downplay the marvelous benefits of paid time off (PTO), particularly for those earning by the hour. PTO allows you to achieve a harmonious equilibrium between your professional commitments and personal life, all while ensuring your income remains steady.

Imagine this: a typical work week of 40 hours, stretched out over an entire year. Now, allow me to guide you through a pair of hypothetical situations that underscore the financial advantages of paid time off.

Scenario 1: Paid Vacation

Are you part of the fortunate group that enjoys a fortnight of paid leave each year? If so, give yourself a well-deserved round of applause! You maintain a steady annual income of $72,800, matching stride for stride with those enviable salaried colleagues of yours.

Scenario 2: No Paid Vacation

Regrettably, not every hourly worker is blessed with the luxury of paid vacation. In such instances, it’s vital to forecast a slight decrease in your annual earnings due to unexpected events or even some much-needed time off.

Imagine you take a two-week break without any pay; this leaves you with 50 weeks (or 2,000 hours) of work in a year, translating to an income of $70,000. So, while your day-to-day earnings might average around a cool two hundred dollars, remember to budget for those days when work takes a backseat. After all, everyone deserves a break.

How Much Is $35 an Hour After Taxes?

Have you ever wondered how taxes can impact your hourly wage? We’re here to guide you through it. Everyone’s tax situation is unique, but for the sake of clarity, let’s dive into this exploration with a few general assumptions:

  • Federal tax rate: 12%
  • Social Security and Medicare (FICA) rate: 7.65%
  • State tax rate: 4%
  • Gross Annual salary: $72,800

Now, let’s break down your potential tax deductions based on these assumptions.

Federal Taxes: $8,736
Social Security and Medicare: $5,569
State Taxes: $2,912
Net Annual Salary: $55,583

Assuming you work 2,080 hours per year, we estimate your Net Hourly Wage to be: $26.7

So, if your gross hourly wage is $35, after taxes, you’ll take home around $26.7 per hour. That’s a difference of $8.2.

Remember, these calculations are just an estimate. Your actual tax rate and deductions may vary.

Did you know some states in the US don’t impose state taxes on salary income? If you live in one of these states, you’ll still need to pay federal tax and FICA, but imagine the potential savings! Here are those tax-free states:

  • Alaska
  • Florida
  • Tennessee
  • Nevada
  • South Dakota
  • Texas
  • Washington
  • Wyoming
  • New Hampshire

Are you curious about what your net monthly income would look like if you lived in one of these states and earned $35 per hour? Let’s do the math together!

In a tax-free state, your estimated tax deductions would look something like this:

Federal Taxes: $8,736
Social Security and Medicare: $5,569
Net Yearly Salary $58,495

And your Net Monthly Salary? A cool $4,874

Isn’t it exciting to see how your financial landscape could change with just a little tax knowledge? 

Tips for Budgeting With a 35/Hour Salary to Maximize Savings

Cutting Corners Without Cutting Joy

Budgeting doesn’t have to mean sacrificing all the fun. It’s all about finding creative ways to save. Opt for potluck dinners instead of eating out, embrace second-hand shopping, or pick up a fun, free hobby.

You can still enjoy life while being financially responsible. Here’s how:

    1. Embrace DIY: Do-it-yourself projects are not only fun but also cost-effective. For example, using a Cricut machine, you can create personalized greeting cards, home decor, and even clothing items. This can save you money and add a personal touch to your belongings. A Reddit user shared their experience with a Cricut Joy machine, indicating that it can make small cuts in corners, providing a unique touch to their DIY projects.

      2. Learn to Cook: Eating out can be expensive. Learning to cook not only saves you money but also allows you to control what goes into your meals. It can be a fun and rewarding experience.

        3. Second-hand Shopping: Thrift stores and online marketplaces offer a treasure trove of gently used items at a fraction of their original cost. It’s an eco-friendly option that’s kind to your wallet too.

        4. Free Entertainment: Look for free activities in your community. Many cities offer free concerts, art exhibitions, and festivals. You can also opt for nature-based activities like hiking, picnicking, or beach days.

        5. Trade and Barter: Swap items or services with friends or join a local barter group. This is a great way to get what you need without spending money.

        Remember, the goal is to find a balance between saving money and enjoying life. It’s about making smart choices that align with your financial goals and lifestyle preferences.

        The Magic of Automated Savings

        Setting up automated savings is like having a financial fairy godmother. This ensures a portion of your paycheck goes directly into your savings account. Before you know it, your savings will start to accumulate without you lifting a finger.

        The 50/30/20 Rule: A Tried and Tested Approach

        The 50/30/20 rule is a classic in the realm of personal finance. This strategy involves allocating 50% of your income to necessities, 30% to wants, and the remaining 20% to savings and debt repayment.

        Let’s crunch some numbers. Based on a $72,800 annual income, here’s how the 50/30/20 rule would play out:

        • Necessities ($36,400): This includes rent or mortgage payments, utilities, groceries, health insurance, and car payments.
        • Wants ($21,840): Think dining out, vacations, shopping sprees, and other non-essential expenses.
        • Savings and Debt Repayment ($14,560): This category is all about the future you. Whether it’s paying down debt, saving for retirement, or building an emergency fund.

        Adjust Your Budget Over Time

        Budgeting isn’t a set-it-and-forget-it process. As your income, lifestyle, and goals change, so too should your budget. Regularly review and adjust your budget to ensure it’s still serving your needs and helping you reach your financial goals.

        For instance, if you have a goal of buying a house in the next year, then you may prioritize increasing your savings rate to give yourself an edge. 

        On the other hand, if you recently changed jobs and now make more money, you can increase your spending on wants without compromising your savings goals.

        It’s all about finding that sweet spot that works best for you.

        Emergency Fund

        An emergency fund is a crucial part of any budget. Aim to save enough to cover three to six months of living expenses. This fund acts as a safety net for unexpected costs like medical emergencies or sudden job loss.

        Tracking Your Spending Habits

        Knowledge is power when it comes to budgeting. By keeping a close eye on your spending habits, you can identify areas where you might be overspending. There are numerous apps available that can help you track your spending and provide insights into your financial habits.

        Here’s a quick look at some popular budgeting apps:

        • Mint: Offers comprehensive budget tracking, bill management, and personalized savings tips.
        • YNAB: Connects to your bank account to provide detailed spending insights.
        • PocketGuard: Automatically categorizes your expenses so you can easily track where your money is going. 

        Other popular options include Acorns and Digit. The key is to find what works best for you and your budgeting needs. 

        Invest in Your Future

        As part of your 20% savings, consider investing in a retirement plan, such as a 401(k) or an IRA. This not only provides a nest egg for your future but can also offer tax advantages. If your employer offers a 401(k) match, be sure to take full advantage, as it’s essentially free money.

        EXPERT TIP:

        If you need more help managing your money, consult with a financial advisor.

        They can provide professional guidance and tailored advice to help you reach your personal finance goals.

        Conquer the Debt Monster

        Taking on debt is a crucial part of nailing budgeting on a $35-per-hour salary. Be in control by tackling high-interest debt, like those pesky credit card balances, as a priority. Your debt-to-income ratio fluctuates with your salary, so staying up-to-date is key.

        Types of Jobs That Pay 35/Hour Salary

        If you are looking for jobs that pay $30/hour, job search and career advice websites can be helpful. Some job titles that typically offer this salary range are:

        These careers can potentially pay you a salary of $35 per hour or more. By putting in hard work and commitment, it’s achievable to reach that aim.

        Side Hustles To Supplement Your $35 Income

        In today’s world, having a side hustle has become an increasingly popular way to supplement income. For those earning $35 per hour, these additional income streams can help reach financial goals faster and provide a safety net for unexpected expenses. 

        Here are some of the most effective and lucrative side hustles you can consider:

        Freelancing

        As highlighted by Forbes, freelancing tops the list of easy side hustle ideas. If you have a skill that’s in demand, such as graphic design, copywriting, or programming, you can offer your services on a freelance basis.

        Delivery Services

        Entrepreneur suggests delivering for PostMates as another great option for earning extra income. Similar to working for Uber and Lyft, this type of gig offers flexibility and the potential for tip income.

        Ride Sharing

        The Savvy Couple mentions ride-sharing as one of the best side hustle ideas. When the kids are at school, and you’re home with some spare time, driving for a service like Uber or Lyft can be a profitable way to make use of that free time.

        E-Commerce

        Investopedia ranks e-commerce as one of the most profitable side hustles. Platforms such as Amazon, Shopify, and Etsy provide an easy way to set up a virtual store and start selling products online.

        As there are so many side hustles available, it’s important to find the one that best suits your lifestyle and goals. Consider which will work best for you and your budgeting needs.

        Final Thoughts on a $35/Hour Salary

        When budgeting on a $35 per hour salary, it’s important to remain mindful of your own needs and goals. Everyone’s financial situation is unique, so find what works best for you and adjust as required. 

        With the right mindset and dedication, it’s achievable to create a sustainable budget that sets you up for financial success. So take charge and make your budget work for you. With focus, determination, and a bit of creativity, you can reach any financial goal.



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What Is Passive Income? – Good Financial Cents® https://fromermediagroup.com/2023/10/05/what-is-passive-income-good-financial-cents/ Thu, 05 Oct 2023 19:03:42 +0000 https://fromermediagroup.com/2023/10/05/what-is-passive-income-good-financial-cents/

Ready to make your money pull a double shift while you catch some Z’s? Unveil the secrets of passive income, where your finances flourish, allowing you to revel in life’s pleasures, and aim for that dream of financial independence without the everyday hustle.

Passive income refers to earnings derived from an enterprise in which a person is not actively involved on a daily basis.

Unlike active income, where earnings are directly linked to the amount of work performed, passive income flows whether you are working, sleeping, or vacationing.

As Robert Kiyosaki (2017) explains in his best-selling book “Rich Dad Poor Dad,” passive income can be a way to achieve greater financial independence.

Unlike the typical income that requires constant work, passive income typically flows with less hands-on involvement. However, this doesn’t mean no work is involved; it’s often the initial setup that demands considerable time, effort, or capital.

If you’re looking for more passive income ideas, click below:

Purpose and Importance

The purpose of passive income is broad, spanning from financial cushioning to the possibility of early retirement. Generating continuous revenue without daily effort offers a means to enhance one’s lifestyle, build financial security, or pursue other interests and hobbies.

The significance of passive income goes beyond mere monetary gain, as it also provides a pathway to greater control over one’s time, a diversified income stream, and potential long-term growth.

EXPERT TIP:

Consider starting small and gradually building your passive income portfolio.

By investing in a diverse array of income-generating opportunities tailored to your risk tolerance and financial goals, you can create a resilient and sustainable revenue stream.

As emphasized by many financial experts, including those mentioned in “The Intelligent Investor” by Benjamin Graham (2003), careful planning and consistent monitoring of your passive income sources can lead to greater financial freedom and control over your time.

This step-by-step approach allows you to learn and adapt, maximizing the potential benefits of passive income without overextending your resources.

How Passive Income Works

Sources of Passive Income

Passive income can stem from various sources, such as rental properties, investments in stocks or bonds, a wide of array of apps, and royalties from intellectual properties like books or patents. Each source has its unique characteristics, risks, rewards, and requirements.

While some sources, like savings accounts interest, are readily accessible, others may need significant financial investment or specialized knowledge, like creating a successful blog that earns ad revenue.

Source of Passive Income Characteristics Risks Requirements
Rental Properties Steady Income, Property Growth Market Fluctuations Initial Investment, Maintenance
Dividend Stocks Potential Growth, Regular Dividends Market Volatility Investment Capital
Peer-to-Peer Lending Interest Earnings Default Risk Platform Registration
Royalties Income From Intellectual Property Contractual Risks Creative Skills, Legal Agreements

Automation and Minimal Active Involvement

Passive income often involves an automated process where money is earned with minimal active involvement. This includes setting up businesses that run themselves or investing in dividend-paying stocks that provide regular income.

Though these may require substantial initial setup, the ongoing maintenance is often minimal. But it’s worth noting that these ventures must be monitored and sometimes adjusted to ensure continued success.

Tax Considerations

Tax implications for passive income differ from those for active income. Passive income may qualify for different tax rates or deductions, depending on jurisdiction and the type of income. For instance, rental income may be subject to specific property tax rules.

Understanding these rules or consulting a tax professional is vital to maximizing after-tax returns and compliance with tax laws. You can read more about here about how passive income is taxed.

Active vs Passive Income

Understanding the difference between active and passive income is essential for anyone looking to diversify their income streams and work towards financial stability or even independence.

What is Active Income?

Active income refers to earnings that require consistent and direct effort. This includes wages from a job, salaries, hourly payments, commissions, and tips. Essentially, active income requires trading time for money.

This type of income is what most people rely on to pay bills, purchase necessities, and maintain their current lifestyle. The major limitation of active income is its direct correlation to time; you can only work a certain number of hours in a day, thus capping your earning potential.

Passive Income Contrasted to Active Income

Contrastingly, passive income is earned with little to no daily effort to maintain, after the initial setup or investment. It includes revenue from rental properties, dividends, royalties, or even a business that doesn’t require daily involvement.

Passive income provides a means to break free from the time-for-money trade and opens doors to greater financial growth and freedom.

Comparison and Significance

The main distinction between active and passive income lies in the involvement and time required to generate revenue. While active income necessitates ongoing work, passive income aims to create sustainable income streams that flow regardless of daily activities.

Active income offers stability but often lacks scalability. Passive income, though requiring initial effort and possibly capital, offers the potential for long-term growth and diversification.

By combining both active and passive income streams, individuals can create a more resilient and flexible financial portfolio, allowing for the pursuit of broader life goals and interests, such as early retirement, travel, or investment in hobbies and personal development. The insights from Kiyosaki (2017) in “Rich Dad Poor Dad” emphasize this balanced approach to building wealth and achieving financial freedom.

The inclusion of both active and passive income in one’s financial strategy offers a multifaceted approach to wealth building. It’s an essential concept for anyone aiming to enhance financial security, diversify income, or explore new financial opportunities.

Feature Active Income Passive Income
Effort Required Daily, consistent effort needed Little to no daily effort after initial setup
Time Dependency Directly tied to hours worked Not tied to hours; can earn 24/7
Income Type Wages, salaries, commissions, tips Rental properties, dividends, royalties
Scalability Limited by time and energy Potential for growth without proportional time input
Financial Growth Potential Often stable but limited in growth Potential for long-term growth and diversification
Risks & Challenges Job loss, income stability Market risk, initial investment required

Benefits/Advantages/Pros of Passive Income

Financial Independence

Financial independence means having enough income to cover living expenses without needing to actively work. Passive income is often vital in this quest, allowing people to live comfortably without a regular paycheck. It offers an escape from the traditional work routine, opening doors to new opportunities, hobbies, or even early retirement.

“If you don’t find a way to make money while you sleep, you will work until you die.”

Warren Buffett

Flexibility and Freedom

The freedom granted by passive income extends to various life aspects. Whether it’s spending more time with family, traveling, or engaging in hobbies, the financial flexibility offered by passive income can significantly enhance life quality. It also provides an opportunity for strategic investments, exploring new ventures without the financial strain that might come without this income cushion.

Diversification of Income Streams

Having multiple income streams reduces the risk of financial hardship if one source diminishes or fails. By diversifying across various passive income avenues, financial stability is often enhanced.

Whether it’s investment in different market sectors, rental properties across various locations, or a mix of bonds and stocks, diversification is a fundamental risk management strategy in financial planning.

Potential Long-Term Growth

Some passive income sources offer the potential for substantial long-term growth. Investments like stocks may appreciate over time, generating not only regular income but also an increase in underlying asset value. This growth potential can substantially contribute to financial goals, whether saving for children’s education, building retirement funds, or other long-term planning.

Benefit Description or Example
Financial Independence Reduced Dependence on Active Employment; Flexibility in Lifestyle Choices
Income Diversification Spreading Income Sources; Reducing Financial Risk
Potential Long-Term Growth Opportunity for Compounding Returns Over Time

Drawbacks/Disadvantages/Challenges/Limitations/Cons of Passive Income

Potential Risk and Volatility

The potential risks and volatility in passive income sources must not be overlooked. Market fluctuations can significantly impact investment returns, while real estate investments can be influenced by economic conditions and property market dynamics. Careful risk assessment and strategic planning are vital to mitigate these risks and ensure consistent income streams.

High Initial Investments or Skills Required

Some passive income streams necessitate significant initial investments or specific skills. Purchasing real estate, developing software, or creating a successful YouTube channel, for example, may require substantial money, time, and expertise.

These barriers must be considered and planned for, as they can deter or delay the successful implementation of a passive income strategy.

Regulatory and Compliance Challenges

Different passive income streams come with varying regulatory and legal considerations. Landlords must adhere to housing regulations, while stock investments may involve understanding complex financial laws. Failing to comply with these regulations can lead to legal troubles or financial losses. Professional guidance may often be required to navigate these complexities.

Maintenance Requirements

While often touted as ‘set and forget,’ passive income streams usually require ongoing attention. Whether it’s maintaining a rental property, adjusting an investment portfolio, or updating a mobile app, these tasks, though generally minor, are essential.

This continuous oversight ensures that passive income sources remain lucrative and aligned with financial goals.

Drawback Description or Example
Potential Risk and Volatility Subject to Market or Economic Changes
High Initial Investments May Require Significant Capital or Effort to Start
Regulatory Challenges Must Comply With Various Laws and Regulations
Maintenance Requirements Ongoing Management or Oversight May Be Necessary

Building a Passive Income Portfolio

Choosing the Right Passive Income Streams

Identifying the right mix of passive income sources is a tailored process that considers individual risk tolerance, financial goals, and personal preferences. Whether it’s the stability of government bonds or the potential high returns of startup investments, these choices should reflect the individual’s unique circumstances. Proper research, planning, and professional advice can ensure a balanced portfolio that serves both current needs and future aspirations.

In Vanguard’s Four principles for successful investing, they stress:

The best way to work toward an investment goal is to start by defining it clearly, take a level-headed look at the means of getting there, and then create a detailed, specific plan. Being realistic is essential to this process: Investors need to recognize their constraints and understand the level of risk they are able to accept.

Vanguard

Strategies and Planning

Creating a successful passive income portfolio isn’t just about choosing the right investments; it requires a well-thought-out strategy and continuous planning. Factors to consider include risk diversification, liquidity needs, time horizons, and long-term goals. Regularly reassessing and adjusting this strategy ensures that it stays aligned with evolving needs and market conditions, safeguarding the financial future.

Monitoring and Adjustments

Regular monitoring and necessary adjustments are key to maintaining a robust passive income portfolio. The landscape can change due to market conditions, new laws, or personal circumstances. Regular assessments and prompt adjustments ensure that the strategy remains relevant, meeting its objectives while maximizing potential returns.

The exploration of passive income is not a simple undertaking but rather a multifaceted approach to building a sustainable financial future. The understanding of various sources, the recognition of benefits, and the consideration of potential drawbacks are essential components in the effective management of passive income streams.

From aspiring to retire early to simply wanting a more flexible lifestyle, passive income provides opportunities and challenges worthy of thoughtful exploration and careful planning.

The Bottom Line – Passive Income Explained

Passive income might seem like a complex idea, but it’s really about making your money work for you instead of the other way around. From investments to side businesses, there are ways to create a steady stream of cash that doesn’t tie you down to a 9-to-5 grind. Mixing active income from your regular job with passive income can lead to a more relaxed and secure financial life.

It’s not a get-rich-quick scheme, but with some thought, effort, and patience, passive income can be a valuable part of your financial picture. Whether you’re aiming for early retirement or just some extra spending money, understanding passive income is a good first step.

FAQs – What Is Passive Income?

What is Passive Income, and How Does It Differ from Active Income?

Passive income is earnings derived from investments, properties, or business ventures where a person is not actively involved daily. Unlike active income, where constant work is required, passive income generally flows with minimal ongoing effort, often after an initial setup phase.

Can Anyone Create a Source of Passive Income, or Does It Require Special Skills?

While some sources of passive income might require substantial initial investments or specialized skills, there are various opportunities available for different skill levels and financial capabilities. Proper research, planning, and sometimes professional guidance can help in successfully establishing a passive income source.

What Are Some Common Sources of Passive Income?

Common sources of passive income include rental properties, dividend-paying stocks, bonds, royalties from intellectual properties, and interest from savings accounts. The choice of sources often depends on individual risk tolerance, financial goals, and personal preferences.

Is Passive Income Taxed Differently Than Other Types of Income?

Yes, passive income may be subject to different tax rules depending on jurisdiction and the specific type of income. It’s advisable to consult with a tax professional to understand the applicable tax laws and ensure compliance.



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Bitcoin Annual Total Returns (1 https://fromermediagroup.com/2023/10/02/bitcoin-annual-total-returns-1/ Mon, 02 Oct 2023 18:58:43 +0000 https://fromermediagroup.com/2023/10/02/bitcoin-annual-total-returns-1/

From its humble beginnings in 2008 to today, Bitcoin’s history has been relatively short but very eventful. The original protocol for this popular digital currency was created in 2008 by Satoshi Nakamoto, believed to be a pseudonym for an unknown developer or group of developers. 

Nakamoto launched the Bitcoin network just a year later and began mining the currency— an estimated 1 million bitcoins were mined in the early years.

The creator(s) of this first-of-its-kind asset developed the cryptocurrency in response to the Great Recession of 2007-2009, spurred by a distrust of the traditional banking system and concerns about its stability. 

Given the recent values of Bitcoin, it’s hard to believe the currency first started trading on exchanges in 2010 at under $0.10. Since then, it’s experienced astronomical growth and some pretty wild price swings.

At its most recent high, one bitcoin was worth over $64,000—a far cry from trading for pennies in its earliest days. 

Whether you’re thinking of investing in Bitcoin or you’ve held this cryptocurrency for several years, it’s fun to look back at this groundbreaking asset’s history. Read on for insights on Bitcoin milestones, historical returns, and how its returns compare to those of other assets.

Bitcoin Performance Milestones

Since being created, Bitcoin has experienced several milestones. Here’s a look back at some of the most significant moments in the short history of this cryptocurrency:

  • In June 2011, Bitcoin saw its first significant price spike, climbing to a value of $29.60 (up from just $0.30 in January) before declining again later that year.
  • The second half of 2013 marked another major spike—from $68 on July 4th to $1,237 on December 3rd before declining again.
  • One of Bitcoin’s most significant increases happened in 2017, with its value surging from around $1,000 at the start of the year to $19,345 by mid-December. 
  • The Bitcoin hype cooled in 2018, resulting in significant declines—its lowest value was around $3,232 in December of that year.
  • In 2019, Bitcoin saw another spike, hitting $13,813 on June 26th before declining.
  • Bitcoin dropped by over 75% in 2022
  • Bitcoin continues to hover around the $30k mark in 2023

Bitcoin Total Return (10 Year, 5 Year, 3 Years, 1 Year)

While Bitcoin isn’t exempt from the volatility cryptocurrencies often experience, it’s delivered some impressive returns over the years. Here’s a look at Bitcoin’s annual returns from 2010 to 2022:

Bitcoin 10-Year Return Chart
Year Return (%)
2011 1,473
2012 186
2013 5,507
2014 -58
2015 35
2016 125
2017 1,331
2018 -73
2019 95
2020 301
2021 90
2022 -81.02

And here’s a look at monthly returns, if you feel like getting a deeper dive:

Bitcoin Monthly Returns
Year Jan. Feb. Mar. April May June July Aug. Sept. Oct. Nov. Dec.
2010 N/A N/A N/A N/A N/A N/A N/A N/A N/A 210.99% N/A 44.09%
2011 73.33% 65.38% -8.77% 346.09% 149.71% 84.21% -17.08% -38.58% -37.32% -36.77% -8.62% 58.92%
2012 16.10% -11.31% N/A N/A 4.65% 29.15% 39.76% 8.66% 22.05% -9.68% 12.23% 7.48%
2013 51.07% 63.55% 178.70% 49.66% -7.48% -24.31% 8.92% 32.76% 0.64% 48.82% 470.94% -33.15%
2014 16.49% -38.87% -22.53% 0.22% 10.90% 1.15% -7.18% -18.28% -19.43% -12.96% 10.97 -15.12%
2015 -31.34% 16.27% -3.90% -3.43% -2.52% 14.91% 7.42% -19.12% 2.82% 31.92% 21.44% 13.75%
2016 -13.98% 17.95% -4.71% 7.91% 17.92% 26.68% -7.19% -7.72% 5.97% 14.89% 6.27% 29.75%
2017 0.22% 23.18% -9.26% 25.28% 70.38% 7.70% 16.23% 64.23% -7.91% 47.94% 54.18% 39.25%
2018 -25.88% 0.67% -32.86% 33.25% -18.85% -14.71% 20.79% -9% -5.67% -4.06% -36.54% -8.18%
2019 -7.34% 11.04% 7.49% 29.70% 60.85% 36.41% -6.81% -4.84% -13.65% 10.48% -17.55% -4.64%
2020 29.91% -8.62% -24.94% 34.56% 9.57% -3.38% 24.06% 2.74% -7.46% 28.04% 42.77% 46.97%
2021 14.37% 36.41% 30.11% -1.78% -35.38% -6.09% 18.63% 13.42% -7.02% 39.90% -7.22% -18.75%
2022 -16.70% 12.18% 5.41% -17.3% -15.56% -37.32% 16.95% -13.99% -3.1% 5.53% -16.26% -0.86%
2023 39.83% 0.02% 23.1% 2.73% -6.96% 11.97% -4.07%

While Bitcoin has experienced some wild monthly price swings and a couple of years where its value has declined, you can see that its declines have been eclipsed by some incredible gains. Now let’s explore how Bitcoin’s value has changed over 10, 5, 3, and 1 years.

Bitcoin 10-Year Return

Let’s say you bought one bitcoin on August, 3rd 2013, for $1,106.75, its price at the time. If you held that one bitcoin until August 3rd, 2023, it would’ve been worth $29,310.44, and your total ROI for the 10 years would be 2,546.8%.

Bitcoin 5-Year Return

We’ll also assume you purchased one Bitcoin for this example. A single bitcoin was valued at $965.31 on August, 3rd, 2018, and its value climbed to $29,310.44 by August 2023. Using our calculation above, your total ROI for those five years would be 294.1%.

Bitcoin 3-Year Return

A single bitcoin was valued at $11,246.20 in August 2020, and its value climbed to $29,310.44 at the end of 2021. Your total ROI for those three years would be 160.6%.

Bitcoin 1-Year return

If you purchased a single bitcoin in August 2022, you would’ve paid around $22,626.83. In one year, that value would’ve increased to $29,310.44. Your total returns for that year would be 29.54%.

Bitcoin Multi-Year Returns Compared

Initial value Final value ROI (%)
15 years (2008-2023) $0.000764 $29,310.44 3,839,387,524,500%
10 years (2013-2023) $1,106.75 $29,310.44 2,546.8%
5 years (2018-2023) $7,438.67 $29,310.44 294.1%
3 years (2020-2023) $11,246.20 $29,310.44 160.6%
1 year (2022-2023) $22,626.83 $29,310.44 29.54%

How Much You’d Have If You Invested $1,000 in Bitcoin 10, 5, 3, or 1 Year Ago

Instead of buying one bitcoin, let’s say you decided to invest $1,000 into Bitcoin. Here’s a look at how this $1,000 investment would’ve performed if you bought and held your Bitcoin for 10, 5, 3, and 1 years.

Initial Price Number of Bitcoins purchased Final Value
10 years (2013-2023) $13.30 75.19 $2,203,358.14
5 years (2018-2023) $13,880 0.072 $2,110.35
3 years (2020-2023) $7,200 0.139 $4,073.15
1 year (2022-2023) $16,605.10 0.0602 $1,765.11

While Bitcoin’s earliest investors would have benefitted the most from buying and holding their Bitcoin, those who’ve invested recently also fared well.

How Does Bitcoin Compare to Other Asset Classes?

If you’re curious how Bitcoin returns compare to those of other asset classes, here’s how its annual and total returns compare to gold, real estate, and the S&P 500.

(Spoiler alert: Bitcoin outperformed all three assets by an enormous margin.)

Bitcoin vs. Gold

If you compare Bitcoin’s returns to gold’s returns, you’ll notice a stark difference. Bitcoin has an average annual return of 1,576% and a total return of 18,912% from 2010 to 2022, while SPDR Gold Shares had an average annual return of just 5.14% and a total return of 61.67% over the same period. 

Year Bitcoin
Return (%)
SPDR Gold Shares (GLD) Return (%)
2005 17.76
2006 22.55
2007 30.45
2008 4.92
2009 24.03
2010 9,900 29.27
2011 1,473 9.57
2012 186 6.6
2013 5,507 -28.33
2014 -58 -2.19
2015 35 -10.67
2016 125 8.03
2017 1,331 12.81
2018 -73 -1.94
2019 95 17.86
2020 301 24.81
2021 90 -4.15
2022 -81.02 -3.21

Bitcoin vs. Real Estate

Let’s see if real estate fared any better compared to Bitcoin. The cryptocurrency delivered a whopping 1,576% average annual return and an 18,912% total return from 2010 to 2021, while the Vanguard Real Estate ETF had an average annual return of 13.49% and a total return of 161.91% over the same period.

So, real estate saw slightly higher returns than gold, but it still didn’t come close to Bitcoin’s returns.

Year Bitcoin
Return (%)
Vanguard Real Estate ETF
Return (%)
2005 12
2006 35.2
2007 -16.38
2008 -36.98
2009 29.76
2010 9,900 28.44
2011 1,473 8.62
2012 186 17.67
2013 5,507 2.42
2014 -58 30.29
2015 35 2.37
2016 125 8.53
2017 1,331 4.95
2018 -73 -5.95
2019 95 28.91
2020 301 -4.72
2021 90 40.38
2022 -81.02 -26.21

Bitcoin vs. S&P 500 (Stock Market)

The S&P 500 didn’t fare too much better in its head-to-head with Bitcoin. From 2011 to 2023, the Vanguard S&P 500 ETF delivered an average annual return of 15.74% and a total return of 173.14%. While those numbers aren’t too shabby, Bitcoin’s average annual return for the same period was a whopping 819%, and its total return was 9,012%.

Year Bitcoin
Return (%)
VOO, Vanguard SP500 ETF
Return (%)
2011 1,473 2.09
2012 186 15.98
2013 5,507 32.33
2014 -58 13.63
2015 35 1.35
2016 125 11.93
2017 1,331 21.78
2018 -73 -4.42
2019 95 31.46
2020 301 18.35
2021 90 28.66
2022 -81.02 -18.15

How Does Bitcoin Compare to The Best Performing Stocks?

We’ve analyzed how Bitcoin compares to gold, real estate, and the stock market, but how does it stack up against some of the best-performing stocks? Here’s how this popular cryptocurrency stacks up against major companies like Amazon, Apple, Berkshire Hathaway, JP Morgan, Microsoft, Visa, and Walmart.

We looked at the average annual and total returns for each asset. This data assumes you bought the asset in 2010 and held it until 2023. 

Asset Average annual return (%) Total return (%)
Bitcoin 1,576% 18,912%
Amazon 35.54% 426.48%
Apple 33.22% 398.61%
Berkshire Hathaway 14.31% 171.76%
JP Morgan 13.53% 162.40%
Microsoft 23.92% 287.04%
Visa 23.10% 277.37%
Walmart 10.08% 120.94%

The Bottom Line – Bitcoin Historical Returns

While some investors may be skeptical about cryptocurrency, citing concerns over market volatility and a high risk of loss, Bitcoin’s performance over time paints a rosy picture. With its longevity and astronomically high returns, Bitcoin has been worth the risk for many investors—especially early adopters. 

Of course, historical performance doesn’t guarantee future returns. So if you’re considering investing in cryptocurrency, only invest what you can afford to lose.



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13 Best Investment Opportunities for Accredited Investors https://fromermediagroup.com/2023/09/29/13-best-investment-opportunities-for-accredited-investors/ Fri, 29 Sep 2023 18:45:30 +0000 https://fromermediagroup.com/2023/09/29/13-best-investment-opportunities-for-accredited-investors/

Unlock the exclusive world of accredited investing where the stakes are high, the opportunities are vast, and the rewards can be game-changing. From hedge funds to venture capital delights, embark on an investment journey that only a select few have the privilege to explore.

When I became an accredited investor, I found myself among an elite group with the financial means and regulatory clearance to access investments that many couldn’t. This opened doors to exclusive realms like hedge funds, venture capital firms, specific investment funds, private equity funds, and more.

Even though I had this “exclusive access” it took me a while to start investing in alternative asset classes.

The Securities and Exchange Commission states that as an accredited investor, I possess a level of sophistication that equips me to craft a riskier investment portfolio than a non-accredited investor. While this might not be universally true for everyone, in my case, I had demonstrated the financial resilience to bear more risk (see barbell investing), especially if my investments took an unforeseen downturn.

One of the intriguing aspects I discovered was that investment opportunities for accredited investors aren’t mandated to register with financial authorities. This means they often come with fewer disclosures and might not be as transparent as the registered securities available to the general public.

The underlying belief is that my status as a sophisticated investor implies a deeper understanding of financial risks, a need for less disclosure on unregistered securities, and a conviction that these exclusive investment opportunities are apt for my funds.

On a personal note, as a practicing CFP®, I hadn’t always worked with accredited investors. Early in my career, I didn’t quite grasp the allure. But as time went on, I began to see the broader spectrum of investment options available to accredited investors.

As I learned more the clearer it became why this realm was so sought after. The variety and potential of these exclusive opportunities were truly eye-opening, reshaping my perspective on the world of investing.

Introduction to Accredited Investors

An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. They are entitled to this privileged access because they satisfy one or more requirements regarding income, net worth, asset size, governance status, or professional experience.

The concept of an accredited investor originated from the idea that individuals or entities with a higher financial acumen or more resources are better equipped to understand and bear the risks of certain investment opportunities.

Historically, the distinction between accredited and non-accredited investors was established to protect less experienced investors from potentially risky or less transparent investment opportunities.

Regulatory bodies, such as the U.S. Securities and Exchange Commission (SEC), have set criteria to determine who qualifies as an accredited investor, ensuring that they have the financial stability and sophistication to engage in more complex investment ventures.

screenshot from sec.gov on the financial and professional criteria to become an accredited investor

Criteria for Becoming an Accredited Investor

To be classified as an accredited investor, one must meet specific criteria set by regulatory bodies:

Criteria Description
Income Requirements An individual must have had an annual income exceeding $200,000 (or $300,000 for joint income with a spouse) for the last two years, with the expectation of earning the same or a higher income in the current year.
Net Worth Requirements An individual or a couple’s combined net worth must exceed $1 million, excluding the value of their primary residence.
Professional Credentials Recent updates have expanded the definition to include individuals with certain professional certifications, designations, or other credentials recognized by the SEC. Examples include Series 7, Series 65, and Series 82 licenses.
Business Entities Entities, such as trusts or organizations, with assets exceeding $5 million can qualify. Additionally, entities in which all equity owners are accredited investors may also be considered accredited.

Best Investment Opportunities for Accredited Investors

Here’s a rundown of some of the top investment for accredited investors…

1. Fundrise

  • Minimum Investment: $500
  • Best for: Newbie Investors

Fundrise has revolutionized the real estate investment landscape. By democratizing access to real estate portfolios, it allows individuals to invest without the complexities of property management or the need for vast capital. The platform’s innovative approach provides exposure to a traditionally lucrative, yet often inaccessible, sector of the market

Through Fundrise, investors can access a diversified range of properties, from commercial ventures to residential units. The platform’s expert team curates these portfolios, ensuring a balance of risk and reward. With its user-friendly interface and transparent reporting, Fundrise has become a top choice for many venturing into real estate investments.

How it Works:
Investors start by choosing a suitable investment plan on Fundrise. Once invested, the platform pools the funds with other investors and allocates them across various real estate projects. As these properties generate rental income or appreciate in value, investors receive returns in the form of dividends or appreciation.

Pros & Cons of Fundrise

Pros

Diversified real estate portfolios.
User-friendly platform with transparent reporting.

Cons

Limited liquidity compared to public markets.
Returns are dependent on real estate market performance.
Investments are structured as long-term commitments

2. Equitybee

  • Minimum Investment: $10,000
  • Best for: Experienced Investors

Equitybee offers a unique platform that bridges the gap between private companies on the cusp of going public and potential investors. This innovative approach provides a golden opportunity for investors to tap into the potential of startups and other private firms before they make their public debut.

The platform’s primary focus is on employee stock options. By allowing investors to invest in these options, they can potentially benefit from their appreciation as the company grows. With a vast array of companies, from emerging startups to established giants, Equitybee presents a diverse range of investment opportunities.

How it Works:
Investors browse available stock options from various companies on Equitybee. Once they choose an option, they invest their funds, which are then used to purchase the stock options from the employees. If the company goes public or gets acquired, the investor stands to gain from the increased value of these stocks.

Pros:

  • Access to pre-IPO companies.
  • Diverse range of startups and established firms.

Cons:

  • Platform fee of 5%.
  • Potential risks associated with private market investments.

3. Percent

  • Minimum Investment: $500
  • Best for: Novice Investors

Percent stands as a beacon in the vast sea of the private credit market, illuminating a sector often overshadowed by traditional investments. This burgeoning market, valued at over $7 trillion, consists of companies borrowing from non-bank lenders. Percent offers a unique vantage point into this market, allowing investors to diversify their portfolios beyond typical stocks and bonds.

The allure of Percent lies in its ability to offer shorter terms and higher yields, combined with investments that are largely uncorrelated with public markets. This makes it an attractive proposition for those looking to step away from the volatility of traditional markets.

How it Works:
Upon joining Percent, investors are presented with a plethora of private credit opportunities. After selecting an investment, funds are pooled with other investors and lent out to companies seeking credit. As these companies repay their loans, investors earn interest, providing a steady income stream.

Pros:

  • Access to the burgeoning private credit market.
  • Potential for higher yields.

Cons:

  • Requires understanding of private credit dynamics.
  • Less liquidity compared to public markets.

4. Masterworks

  • Minimum Investment: $10,000
  • Best for: Novice Investors

Masterworks paints a vivid picture of art investment, blending the worlds of finance and fine art. Traditionally, investing in art was a luxury reserved for the elite. However, Masterworks has democratized this, allowing individuals to buy shares in artworks from world-renowned artists.

The platform’s strength lies in its expertise. From authentication to storage, every facet of art investment is handled meticulously. This ensures that investors can appreciate both the beauty of their investments and the potential financial returns.

How it Works:
After registering on Masterworks, investors can browse a curated selection of artworks. They can then purchase shares, representing a fraction of the artwork’s value. Masterworks takes care of storage, insurance, and eventual sale. When the artwork is sold, investors share the profits based on their ownership.

Pros:

  • Opportunity to diversify with fine art.
  • Managed by art experts.

Cons:

  • Art market can be unpredictable.
  • Long-term investment horizon.

5. Yieldstreet

  • Minimum Investment: $15,000
  • Best for: Advanced Investors

Yieldstreet stands at the intersection of innovation and alternative investments. It offers a smorgasbord of unique investment opportunities, ranging from art to marine finance. For those looking to venture beyond the beaten path of traditional stocks and bonds, Yieldstreet presents a tantalizing array of options.

The platform’s allure lies in its curated selection of alternative investments, each vetted by experts. This ensures that while investors are treading unconventional grounds, they’re not stepping into the unknown blindly.

How it Works:
Investors begin by browsing through the diverse investment opportunities on Yieldstreet. After selecting their preferred asset class, their funds are pooled with other investors and allocated to the chosen venture. Returns are generated based on the performance of these assets, be it through interest, dividends, or asset appreciation.

Pros:

  • Wide range of alternative investments.
  • Potential for high returns.

Cons:

  • Some niches may be too specialized.
  • Requires a deep understanding of chosen investments.

6. AcreTrader

  • Minimum Investment: $10,000
  • Best for: Newbie Investors

AcreTrader, as its name suggests, brings the vast expanses of farmland to the investment table. It offers a unique opportunity to invest in agricultural land, combining the stability of real estate with the evergreen nature of agriculture. With the global population on the rise, the value of fertile land is only set to increase.

The platform meticulously vets each piece of land, ensuring only the most promising plots are available for investment. This rigorous process ensures that investors are planting their funds in fertile ground, poised for growth.

How it Works:
Investors peruse available farmland listings on AcreTrader. After selecting a plot, they can invest, effectively owning a portion of that land. AcreTrader manages all aspects, from liaising with farmers to ensuring optimal land use. Investors earn from the appreciation of land value and potential rental income.

Pros:

  • Stable, tangible asset.
  • Potential for steady returns.

Cons:

  • Returns may be slower compared to other platforms.
  • Limited to U.S. farmland.

7. EquityMultiple

  • Minimum Investment: $5,000
  • Best for: Experienced Investors

Summary:
EquityMultiple is a testament to the power of collective investment in the real estate sector. By leveraging the principles of crowdfunding, it offers a platform where multiple investors can pool their resources to finance high-quality real estate projects. This collaborative approach allows for diversification and access to projects that might be out of reach for individual investors.

The platform’s strength lies in its curated selection of real estate opportunities, ranging from commercial spaces to residential properties. With a team of seasoned real estate professionals at the helm, EquityMultiple ensures that each project is vetted for maximum potential and minimal risk.

How it Works:
Upon joining, investors can explore a variety of real estate projects. After committing to a project, their funds are pooled with other investors to finance the venture. Returns are generated through rental incomes, property appreciation, or the successful completion of development projects.

Pros:

  • Diverse real estate opportunities.
  • Managed by real estate professionals.

Cons:

  • Market risks associated with real estate.
  • Longer investment horizons.

8. CrowdStreet

  • Minimum Investment: $25,000
  • Best for: Advanced Investors

CrowdStreet stands as a pillar in the commercial real estate investment domain. With its vast experience and industry connections, it offers a platform where investors can tap into prime real estate projects across the nation. From bustling urban centers to tranquil suburban locales, CrowdStreet provides a diverse range of investment opportunities.

The platform’s expertise ensures that each project is meticulously vetted, offering a blend of potential returns and stability. For investors looking to delve into commercial real estate without the hassles of property management, CrowdStreet is an ideal choice.

How it Works:
After registration, investors can browse a myriad of commercial real estate offerings. Upon investing in a project, CrowdStreet manages the investment, providing regular updates and ensuring optimal project execution. Investors earn returns based on the project’s performance, be it through rentals, sales, or project completions.

Pros:

  • Access to prime commercial properties.
  • Established platform with a proven track record.

Cons:

  • High minimum investment.
  • Market dependency for returns.

9. Mainvest

  • Minimum Investment: $100
  • Best for: Newbie Investors

Mainvest offers a refreshing twist in the investment landscape, focusing on the heart and soul of the American economy: local businesses. From quaint cafes to innovative startups, Mainvest provides a platform where investors can support and benefit from the growth of small businesses in their communities.

The platform’s community-centric approach ensures that investments are not just about returns but also about fostering local economies. For those looking to make a difference while earning, Mainvest presents a unique opportunity.

How it Works:
Investors can explore various local businesses seeking capital on Mainvest. By investing, they essentially buy a revenue-sharing note, earning a percentage of the business’s gross revenue until a predetermined return is achieved.

Pros:

  • Support and invest in local businesses.
  • Low minimum investment.

Cons:

  • Risks associated with small business investments.
  • Returns might be slower compared to other platforms.

10. Vinovest

  • Minimum Investment: $1,000
  • Best for: Novice Investors

Vinovest uncorks the world of wine investment, offering a blend of luxury, history, and financial growth. Fine wines have been a symbol of opulence for centuries, and Vinovest provides a platform where this luxury becomes an accessible investment.

With a team of wine experts guiding the way, the platform ensures that each wine is not just a drink but an investment poised for appreciation. From sourcing to storage, Vinovest handles every facet, ensuring the wine’s value grows over time.

How it Works:
After signing up, investors set their preferences and investment amount. Vinovest then curates a wine portfolio based on these preferences, handling sourcing, authentication, and storage. As the wine appreciates, so does the investor’s portfolio.

Pros:

  • Unique investment opportunity in fine wines.
  • Managed by wine connoisseurs.

Cons:

  • Long-term holding for optimal returns.
  • Market influenced by external factors like climate.

11. Arrived Homes

  • Minimum Investment: $100
  • Best for: Novice Investors

Arrived Homes offers a fresh perspective on real estate investment, focusing on the charm of single-family homes. While skyscrapers and commercial complexes often dominate real estate discussions, single-family homes offer stability, consistent returns, and a touch of nostalgia.

The platform’s strength lies in its focus. By concentrating on single-family homes, it offers investors a chance to tap into a stable real estate segment, benefiting from both rental income and property appreciation.

How it Works:
Investors browse available properties on Arrived Homes. After selecting a property, they can invest in shares, representing a portion of the home’s value. As the property is rented out, investors earn a share of the rental income. Additionally, any appreciation in property value benefits the investors.

Pros:

  • Low minimum investment.
  • Quarterly dividends.

Cons:

  • New platform with a shorter track record.
  • Limited to single-family homes.

12. RealtyMogul

  • Minimum Investment: $5,000
  • Best for: Novice to Experienced Investors

RealtyMogul stands tall in the commercial real estate investment landscape. It offers a platform where diversification meets opportunity, presenting a range of commercial properties for investment. From bustling office spaces to serene residential complexes, RealtyMogul provides a plethora of options for investors to expand their portfolios.

The platform’s prowess lies in its dual approach. Investors can either dive into non-traded REITs or make direct investments in specific properties. This flexibility ensures that both novice and experienced investors find opportunities that align with their investment goals.

How it Works:
Upon joining RealtyMogul, investors can choose between REITs or direct property investments. Their funds are then channeled into these real estate ventures. Returns are generated through rental incomes, property sales, or successful project completions.

Pros:

  • Wide range of commercial properties.
  • Both REITs and direct investments available.

Cons:

  • Market risks inherent to real estate.
  • Higher minimums for direct investments.

The Future of Accredited Investing

The world of accredited investing is dynamic and ever-evolving. Emerging trends suggest a shift towards democratizing investment opportunities, with regulatory bodies considering more inclusive criteria for accredited investor status. This shift aims to balance the need for investor protection with the recognition that financial acumen can come from experience and education, not just wealth.

Furthermore, technological advancements are playing a pivotal role. The rise of blockchain and tokenized assets, for instance, is creating new avenues for investment and might reshape the landscape of opportunities available to accredited investors.

xAs the line between traditional and alternative investments blurs, the future promises a more integrated, inclusive, and innovative environment for accredited investors.

The Bottom Line – Top Investments for Accredited Investors

Understanding the role and opportunities of accredited investors is crucial in the modern financial landscape. While the distinction offers privileged access to unique investment opportunities, it also comes with increased risks and responsibilities.

As the world of investing continues to evolve, potential accredited investors are encouraged to stay informed, conduct thorough research, and seek professional advice. The realm of accredited investing, with its blend of challenges and opportunities, promises exciting prospects for those ready to navigate its complexities.

FAQs – Investment Options for Accredited Investors

Why is there a distinction between accredited and non-accredited investors?

The distinction is primarily for investor protection. Accredited investors are deemed financially savvy or stable enough to handle the risks associated with unregistered securities, which might be riskier and less transparent.

What investment opportunities open up for accredited investors?

Accredited investors gain access to a broader range of investment opportunities, including hedge funds, private equity, venture capital, certain private placements, and more.

Are investments for accredited investors riskier?

While not inherently riskier, these investments often come with less regulatory oversight and transparency, which can increase potential risks. It’s essential to conduct thorough due diligence before investing.

Do accredited investors have any advantages in the public stock market?

While the primary benefits of being an accredited investor pertain to private investment opportunities, the financial acumen and resources associated with accredited investors can also be advantageous in public markets, especially when considering more complex investment strategies.



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Best CD Rates: Certificate of Deposit 2023) https://fromermediagroup.com/2023/09/26/best-cd-rates-certificate-of-deposit-2023/ Tue, 26 Sep 2023 18:41:22 +0000 https://fromermediagroup.com/2023/09/26/best-cd-rates-certificate-of-deposit-2023/

Certificates of Deposit (CDs) work similarly to online savings accounts or money market accounts in terms of offering great returns with zero risk. The difference is, CDs “lock your money up” for a specified period of time. To access your funds before the term ends, you’ll have to pay a penalty.

Although CDs offer less liquidity than a regular checking account or savings account, you might get a higher rate of return with this financial product. This is especially true if you open a CD account with a longer timeline; for example, a 60-month CD instead of a 12-month CD.

According to the Federal Deposit Insurance Corporation (FDIC), national average CD rates range from 1.33% to 1.76% depending on the CD term, as of writing.

However, quite a few banks offer vastly superior CD rates to consumers who do their research. We compared dozens of banks and financial institutions to find the best CD rates today. If you’re on the hunt for a high-yield CD, start your search here.

Important Factors for Certificate of Deposit Accounts

  • CDs are for long-term savings. Since CDs lock your funds into the account for a specific term (usually 12 to 60 months), they aren’t ideal for money you might need to access in the short term.
  • CDs offer security for your funds. CD accounts are a secure place to stash your money and earn interest, thanks to FDIC insurance.
  • Check for CD fees. Most CDs charge fees if you need to access your money early. Make sure you understand these fees before opening this deposit account.
  • Online banks might offer better rates. Although brick-and-mortar banks offer their own CDs, you might find better rates through online banks. Compare legacy banks and online institutions to find the best CD rates.

If your goal is securing a superior short-term investment, the best CD rates are worth exploring. To help in your search, we compared many of the top financial institutions and online banks to find options with the most attractive rates and terms.

Find the Highest CD Rates from Banks and Credit Unions

Explore and contrast the top certificates of deposit (CDs) rates based on the highest Annual Percentage Yield (APY), spanning various terms including 3-month, 6-month, 1-year, 2-year, and 5-year options.

For The Current CD Rates…

Raisin (Save Better) partners with some of the top banks in the U.S. for the highest rates on CDs. Check below for the current rates.

Disclaimer: Interest rates are subject to daily fluctuations, and we strive to provide you with the most current information. Please verify the rates with your bank or credit union for accuracy!

The banks below made our ranking due to the interest rates they offer and other features.

  • PNC 
  • CIT Bank
  • Discover
  • Marcus by Goldman Sachs
  • Synchrony Bank

Best Certificate of Deposit Accounts – Reviews

There are a few factors to consider when choosing where to open a certificate of deposit. These include whether you want to open your CD in person or online, the rates and terms that apply, and the fees required to access your money early.

The following reviews explain the CD rates for each of the top banks we profile and other details you should know.

PNC Bank

PNC Bank offers a variety of popular banking products, including certificates of deposit. Its CDs don’t require any monthly maintenance fees, and you can monitor your account at any time online or with the BBVA mobile banking app.

CD terms range from 7 days to up to 10 years, and CDs with longer timelines pay higher CD rates. Note that penalties apply if you access your money early.

If you cash out your CD early, with a term of one year or less, you’ll pay $25 plus 1% of the amount withdrawn. If you cash out a CD with a longer-term early, you’ll pay $25 plus 3% of the amount you cash out.

CD Rates: Online CDs with terms from 11 months to 36 months currently pay up to 5.04% APY.

CIT Bank

CIT Bank is known for its popular high-yield savings account, known as Savings Builder, but it also offers an array of CDs with excellent terms. Its 11-month, no-penalty CD stands out since it offers an excellent return rate. There are also no penalties if you need to access your money early.

CIT Bank also offers term CDs with various other lengths, as well as jumbo CDs for deposits of $100,000 or more. None of its CDs come with account opening fees or account maintenance fees.

CD Rates: CIT Bank currently pays from 0.30% to 5.15% APY on their CDs, depending on the term you choose. Top rates are offered on their 18 month CDs, which pay out 5.30% APY, respectively. Additionally, they have an excellent 11-month No-Penalty CD at 5.10% APY as of the time of this writing (09/26/23.)

Discover

With Discover, you can open a CD that lasts anywhere from three months to 120 months. There are no fees to open a CD, including account opening fees or maintenance fees, although their minimum opening deposit is $2,500.

Discover also stands out due to the reasonable penalties it charges if you need to access your money early. CDs with a term of less than one year, incur a penalty at three months of simple interest. For a CD that lasts one to four years, the penalty for cashing out early is just six months of simple interest.

CD Rates: The 120-month (10-year) CD is most rewarding, currently offering 3.80% APY, but that’s a long time to wait. If you’re willing to part ways with your funds for just 12 months, you can earn a rate of 5.00%.

Marcus by Goldman Sachs

Marcus by Goldman Sachs is a popular online bank for personal loans and high-yield savings accounts, yet it also offers rewarding CDs. Terms for its CDs range from seven months to six years, with a minimum $500 deposit to get started.

Marcus by Goldman Sachs even offers a 10-day guarantee that says you can move your rate up if the advertised rates on the CD you purchased increase within 10 days.

CD Rates: Some of the best CD rates from Marcus by Goldman Sachs are for its 9-month CDs, which currently pay 5.10% APY. Marcus by Goldman Sachs also offers limited-time CD rate promotions, like 5.25% on an 18-month CD.

What Holds It Back: Marcus by Goldman Sachs is an online bank only, so you don’t have the option to open your CD in person.

Synchrony Bank

We chose Synchrony Bank for our ranking because it doesn’t impose a minimum balance requirement, yet has competitive CD rates. It offers a 15-day guarantee, which lets you raise your rate if the advertised rate increases within 15 days of your CD purchase.

Terms are available from three months to 60 months. Early withdrawal fees for their CDs are also reasonable. For example, early cash-outs on CDs with terms of 12 months or less charge 90 days of simple interest at the current rate.

CD Rates: Five-year (60-month) CDs currently pay 4.00% APY, and three-year (36-month) CDs pay 4.30% APY. They also have a 16 month paying 5.40%

What Holds It Back: Synchrony Bank CDs are meant to be opened and maintained online, so you consider a different bank if you’re hoping for a personalized experience or you prefer to bank in person.

How We Found the Best CD Rates

Finding the best CD rates is important if you want to maximize returns on your savings, yet there are other factors to consider before opening an account. We considered the following factors when compiling this list of banks with the best CD rates of 2023:

Rates and Terms

Although we gave preference to banks that apply the best rates to various CD terms, we focused on banks that offer at least one CD with an APY that is at least double the average CD rate nationwide.

BBVA didn’t score well in this category, yet we included them due to their lack of account fees and a strong reputation among major U.S. financial institutions.

Account Fees

We only considered banks that don’t charge fees to open a CD account. We also chose banks that don’t charge any monthly account maintenance fees.

Early Withdrawal Penalties

Most banks charge an early withdrawal fee if you cash out your CD early, so we looked for banks with reasonable penalties. We also gave preference to accounts or CD options that don’t charge any penalty for early withdrawals.

FDIC Insurance

Finally, we only included institutions in our ranking that offer FDIC insurance. This insurance secures up to $250,000 of CD funds per account holder.

What You Need to Know About Certificates of Deposit

If you have never opened a certificate of deposit before, you might wonder how they work and why people choose this option. Here are some important factors when considering a CD account.

  • CDs offer superior rates compared to other deposit products. According to recent figures from the FDIC, the average national CD rate for a 60-month term is about four times greater than the average national savings account rate.
  • Longer CDs offer better yields. Committing your money to a longer timeline can lead to considerably higher returns. FDIC data shows that the average APR for a one-month CD is only .02% — not much better than a basic savings account.
  • CD rates can go up or down over time. CD rates are determined based on the current interest rate environment, including benchmark interest rates. This means that you might get a better CD rate any time benchmark interest rates go up.
  • CD rates can be higher on larger amounts. If you have $100,000 or more to deposit, you might qualify for a “jumbo CD”. This type of CD requires a high minimum deposit, but banks are willing to pay higher APYs to lock in more funds.

Summary: Best CD Account Rates of August 2023

BEST FOR AVAILABLE CD TERMS BEST RATE OFFERED
Raisin (SaveBetter) Short-term, no penalty 1 month to 14 months 5.51%
PNC Long-term CD options 1 month to 10 years Up to 0.04% APY
CIT Bank 11-month, no-penalty CD option 1 month to 5 years 4.65% APY
Discover Reasonable penalties for early withdrawals Three months to 10 years 5.00% APY
Marcus by Goldman Sachs Low minimum deposit requirement Seven months to six years 4.30% APY
Synchrony Bank 15-day rate guarantee Three months to five years 5.00% APY

The Bottom Line – Locking in the Highest CD Rates

Investing in a certificate of deposit (CD) is one of the safest ways to grow your money. CDs are low-risk investments with guaranteed returns, so they can be an excellent choice for those looking to diversify their portfolios and lock in higher interest rates.

When choosing a CD, it’s important to compare APYs (annual percentage yields) and terms between different banks and credit unions in order to get the best rate possible. Shop around for promotional offers or talk to financial advisors if you need help selecting the right CD for your needs.

With careful research and comparison, you’ll be able to find the CD that gives you the highest rate – and peace of mind – in the long run.



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