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Last Updated on November 10, 2021 by Mark Ferguson
One of the hardest parts of getting your real estate license is completing the education needed for the licensing requirements. In most states, you can take online real estate classes or classes in a classroom with a real teacher. There are many pros and cons to both options, and the better option will depend on your goals and plans as a real estate agent. I obtained my real estate license in 2002, and have run a team that has sold over 200 homes in a year. Now I own a real estate brokerage and focus on real estate investing. I was able to get my license online and so have many of my agents, but my wife got hers in a classroom. This article will discuss whether it is better to take real estate classes online or in person.
Do different states have different requirements?
Every state has different rules and regulations for real estate agent licensing. Most rates require a certain amount of classes to get your real estate license before you can take the licensing exam. In Colorado you have to take 162 hours of education; other states are more and some much less. Some states are even thinking about making it a requirement that all real estate agents have at least a bachelor’s degree to get a real estate license.
Once you take the education portion of the real estate classes, you must also pass a test, take a background check, and then find a broker to work for. Taking classes is only a small portion of the process of becoming an agent, but it is important.
Which option takes less time?
One of the pros of taking classes online is you may be able to finish the classes sooner than the actual hourly requirement. Each class is given a certain amount of hourly credits and once you pass the class you get credit for those hours. It may take someone 2 hours instead of 4 hours to finish a section online if they are fast learners or readers. If you take classes in person, you have to be in a classroom for very close to the full hourly requirement. You also will have a set schedule with in-person classes, where online classes let you work whenever you have time.
I am able to breeze through my update classes which are supposed to take 4 hours in well less than an hour. It is important that you understand the material though. If you breeze through the material without absorbing it, it will be very tough to pass the test.
Which option is more exciting?
The downfall of taking real estate classes online is that they are extremely boring. It is tough for many people to stare at a computer screen for hours and absorb information. No matter how hard you try, it is really hard to make real estate license material exciting. You must have a very good attention span to spend the time it takes to study material online, learn it, and then be able to pass the exam. If you take real estate classes in person they will be much more exciting. You won’t be staring at a computer screen, you will be listening to a teacher, reading books and listening to guest speakers.
If you take real estate classes online you also have to be self-motivated. You have to find the time to sit down and put those hours in. In a classroom, you will have a set schedule and someone telling you when you need to be there. If you have a job and/or a family, then it makes it even tougher to find time to take online classes.
How important is a live teacher?
Taking real estate education in a classroom involves real people teaching you and learning with you. You will most likely learn much more from a real classroom because the teacher can explain many more things than a computer can. That teacher also should have some real-world experience in selling real estate and may even have connections in the real estate world.
When you become a real estate agent, one of the most important things is meeting people and networking. The sooner you can start networking, the better off you will be. Your teacher or teachers may have connections to help you find a broker, have insights on the best way to pass the test, and help you get started selling houses! Real estate classes don’t teach you how to sell, they teach you the laws, how not to get sued, and how to abide by the ethics standards.
Where will you learn more?
The in-person real estate classes are much more interesting than staring at a computer screen all day, but there are other advantages. I am a HUD broker and I taught one of my HUD classes to a local community college that offered a real estate licensing program. I taught aspiring agents all about HUD homes, things to watch out for, and how to make money selling them. An online class will not be teaching students about the best ways to sell HUD homes and will not have guest speakers.
The classroom may also bring in guest speakers and other agents who have succeeded in the business. An online class will not expose you to real estate agents making it in your area.
The teacher in a real class will be able to tell stories and relate the law and rules to real-world examples. Online classes may be able to give some real-world examples, but it is always better to hear stories straight from the people who experienced them.
Which option is easier to complete?
A downfall to a real estate class is finding a schedule that fits you. With an online class, you can take classes when you have time, but when you take in-person classes, you have to make their schedule work. If you already have a job that may be difficult to do, but I have found many schools offer night classes to help work around students’ schedules.
It is often easier for most people to make the online classes fit their schedules better. The online classes can be easier to complete as well because they may not take as much time. Remember, that easier is not always better.
How long it takes to complete real estate classes will depend on the student. If you are an extremely motivated individual who can handle hours at a time staring into a computer, then you might be able to finish online courses faster. If you are not motivated to take those online classes, it may be faster to take the in-person classes that have a set schedule. My wife went to school full-time for her license and finished up in about 6 weeks. One of my team members took his classes online and it took him about 6 months, but he also had a full-time job and a family. If you want to get your license quickly, taking classes in a classroom is most likely the fastest way to go.
What is your goal as an agent?
I mentioned early in this article that an agent’s goals will determine the best route for getting a license. If you want to make a career of real estate and jump in with both feet, take an in-person class. The exposure to people in the business will be worth it. You may even have a better chance of finding the right broker once you get your license.
If you want to be a part-time agent that only uses their license for their own investments, then it makes sense to take online classes. You may not need the connections and the personal help a real teacher will provide. However, don’t expect to be given guidance on how to get deals from a real estate class online. Real estate classes teach almost nothing about investing.
What are some online schools?
If you decide you want to take your real estate classes online, I know a couple of schools that offer licensing. My assistant took his classes at Real Estate Express, which also offers continuing education classes. Real Estate Express offers very affordable classes and great customer support.
Once you get your real estate license, there is much more you must do to become a successful real estate agent. In fact, before you even get your license you should be working on your business.
Conclusion
It is not easy to get a real estate license. The classes are long and boring, and the test is not a piece of cake. Once you get your license you must work hard to succeed as an agent. Choosing the right method of taking classes can help you succeed or fail as an agent.
Last Updated on November 10, 2021 by Mark Ferguson
One of the hardest parts of getting your real estate license is completing the education needed for the licensing requirements. In most states, you can take online real estate classes or classes in a classroom with a real teacher. There are many pros and cons to both options, and the better option will depend on your goals and plans as a real estate agent. I obtained my real estate license in 2002, and have run a team that has sold over 200 homes in a year. Now I own a real estate brokerage and focus on real estate investing. I was able to get my license online and so have many of my agents, but my wife got hers in a classroom. This article will discuss whether it is better to take real estate classes online or in person.
Do different states have different requirements?
Every state has different rules and regulations for real estate agent licensing. Most rates require a certain amount of classes to get your real estate license before you can take the licensing exam. In Colorado you have to take 162 hours of education; other states are more and some much less. Some states are even thinking about making it a requirement that all real estate agents have at least a bachelor’s degree to get a real estate license.
Once you take the education portion of the real estate classes, you must also pass a test, take a background check, and then find a broker to work for. Taking classes is only a small portion of the process of becoming an agent, but it is important.
Which option takes less time?
One of the pros of taking classes online is you may be able to finish the classes sooner than the actual hourly requirement. Each class is given a certain amount of hourly credits and once you pass the class you get credit for those hours. It may take someone 2 hours instead of 4 hours to finish a section online if they are fast learners or readers. If you take classes in person, you have to be in a classroom for very close to the full hourly requirement. You also will have a set schedule with in-person classes, where online classes let you work whenever you have time.
I am able to breeze through my update classes which are supposed to take 4 hours in well less than an hour. It is important that you understand the material though. If you breeze through the material without absorbing it, it will be very tough to pass the test.
Which option is more exciting?
The downfall of taking real estate classes online is that they are extremely boring. It is tough for many people to stare at a computer screen for hours and absorb information. No matter how hard you try, it is really hard to make real estate license material exciting. You must have a very good attention span to spend the time it takes to study material online, learn it, and then be able to pass the exam. If you take real estate classes in person they will be much more exciting. You won’t be staring at a computer screen, you will be listening to a teacher, reading books and listening to guest speakers.
If you take real estate classes online you also have to be self-motivated. You have to find the time to sit down and put those hours in. In a classroom, you will have a set schedule and someone telling you when you need to be there. If you have a job and/or a family, then it makes it even tougher to find time to take online classes.
How important is a live teacher?
Taking real estate education in a classroom involves real people teaching you and learning with you. You will most likely learn much more from a real classroom because the teacher can explain many more things than a computer can. That teacher also should have some real-world experience in selling real estate and may even have connections in the real estate world.
When you become a real estate agent, one of the most important things is meeting people and networking. The sooner you can start networking, the better off you will be. Your teacher or teachers may have connections to help you find a broker, have insights on the best way to pass the test, and help you get started selling houses! Real estate classes don’t teach you how to sell, they teach you the laws, how not to get sued, and how to abide by the ethics standards.
Where will you learn more?
The in-person real estate classes are much more interesting than staring at a computer screen all day, but there are other advantages. I am a HUD broker and I taught one of my HUD classes to a local community college that offered a real estate licensing program. I taught aspiring agents all about HUD homes, things to watch out for, and how to make money selling them. An online class will not be teaching students about the best ways to sell HUD homes and will not have guest speakers.
The classroom may also bring in guest speakers and other agents who have succeeded in the business. An online class will not expose you to real estate agents making it in your area.
The teacher in a real class will be able to tell stories and relate the law and rules to real-world examples. Online classes may be able to give some real-world examples, but it is always better to hear stories straight from the people who experienced them.
Which option is easier to complete?
A downfall to a real estate class is finding a schedule that fits you. With an online class, you can take classes when you have time, but when you take in-person classes, you have to make their schedule work. If you already have a job that may be difficult to do, but I have found many schools offer night classes to help work around students’ schedules.
It is often easier for most people to make the online classes fit their schedules better. The online classes can be easier to complete as well because they may not take as much time. Remember, that easier is not always better.
How long it takes to complete real estate classes will depend on the student. If you are an extremely motivated individual who can handle hours at a time staring into a computer, then you might be able to finish online courses faster. If you are not motivated to take those online classes, it may be faster to take the in-person classes that have a set schedule. My wife went to school full-time for her license and finished up in about 6 weeks. One of my team members took his classes online and it took him about 6 months, but he also had a full-time job and a family. If you want to get your license quickly, taking classes in a classroom is most likely the fastest way to go.
What is your goal as an agent?
I mentioned early in this article that an agent’s goals will determine the best route for getting a license. If you want to make a career of real estate and jump in with both feet, take an in-person class. The exposure to people in the business will be worth it. You may even have a better chance of finding the right broker once you get your license.
If you want to be a part-time agent that only uses their license for their own investments, then it makes sense to take online classes. You may not need the connections and the personal help a real teacher will provide. However, don’t expect to be given guidance on how to get deals from a real estate class online. Real estate classes teach almost nothing about investing.
What are some online schools?
If you decide you want to take your real estate classes online, I know a couple of schools that offer licensing. My assistant took his classes at Real Estate Express, which also offers continuing education classes. Real Estate Express offers very affordable classes and great customer support.
Once you get your real estate license, there is much more you must do to become a successful real estate agent. In fact, before you even get your license you should be working on your business.
Conclusion
It is not easy to get a real estate license. The classes are long and boring, and the test is not a piece of cake. Once you get your license you must work hard to succeed as an agent. Choosing the right method of taking classes can help you succeed or fail as an agent.
A good return on investment is generally considered to be about 7% per year, based on the average historic return of the S&P 500 index, and adjusting for inflation. But of course what one investor considers a good return might not be ideal for someone else.
And while getting a “good” return on your investments is important, it’s equally important to know that the average return of the U.S. stock market is just that: an average of the market’s performance, typically going back to the 1920s. On a year-by-year basis, investors can expect returns that might be higher or lower — and they also have to face the potential for outright losses.
In addition, the S&P 500 is a barometer of the equity markets, and it only reflects the performance of the 500 biggest companies in the U.S. Most investors will hold other types of securities in addition to equities, which can affect their overall portfolio return.
What Is the Historical Average Stock Market Return?
Dating back to the late 1920s, the S&P 500 index has returned, on average, around 10% per year. Adjusted for inflation that’s roughly 7% per year.
Here’s how much a 7% return on investment can earn an individual after 10 years. If an individual starts out by putting in $1,000 into an investment with a 7% average annual return, they would see their money grow to $1,967 after a decade, assuming little or no volatility (which is unlikely in real life).
It’s important for investors to have realistic expectations about what type of return they’ll see.
For financial planning purposes however, investors interested in buying stocks should keep in mind that that doesn’t mean the stock market will consistently earn them 7% each year. In fact, S&P 500 share prices have swung violently throughout the years. For instance, the benchmark tumbled 38% in 2008, then completely reversed course the following March to end 2009 up 23%.
Factors such as economic growth, corporate performance, interest rates, and share valuations can affect stock returns. Thus, it can be difficult to say X% or Y% is a good return, as the investing climate varies from year to year.
A better approach is to think about your hoped-for portfolio return in light of a certain goal (e.g. retirement), and focus on the investment strategy that might help you achieve that return.
Why Your Money Loses Value If You Don’t Invest it
It’s helpful to consider what happens to the value of your money if you simply hang on to cash.
Keeping cash can feel like a safer alternative to investing, so it may seem like a good idea to deposit your money into a savings account — the modern day equivalent of stuffing cash under your mattress. But cash slowly loses value over time due to inflation; that is, the cost of goods and services increases with time, meaning that cash has less purchasing power. Inflation can also impact your investments.
Interest rates are important, too. Putting money in a savings account that earns interest at a rate that is lower than the inflation rate guarantees that money will lose value over time.
This is why, despite the risks, investing money is often considered a better alternative to simply saving it. The inflation risk is lower.
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What Is a Good Rate of Return for Various Investments?
As noted above, determining a good rate of return will also depend on the specific investments you hold, and your asset allocation. You can always calculate the expected rate of return for various securities.
CDs
Certificates of deposit (CDs) may be considered a relatively safe investment because they offer a fixed rate of return in return for keeping your money on deposit for a specific period of time. That means there’s relatively little risk — but because investors also agree to tie their money up for a predetermined period of time CDs are also considered illiquid. There is generally a penalty for withdrawing your money before the CD matures.
Generally, the longer money is invested in a CD, the higher the return. Many CDs require a minimum deposit amount, and larger deposits (i.e. for jumbo CDs) tend to be associated with higher interest rates.
It’s the low-risk nature of CDs that also means that they earn a lower rate of return than other investments, usually only a few percentage points per year. But they can be a good choice for investors with short-term goals who need a relatively low-risk investment vehicle while saving for a short-term goal.
Here are the weekly national rates compiled by the Federal Deposit Insurance Corporation (FDIC) as of April 17, 2023:
Non-Jumbo Deposits
National Avg. Annual Percentage Yield
1 month
0.24%
3 month
0.78%
6 month
1.03%
12 month
1.54%
24 month
1.43%
36 month
1.34%
48 month
1.29%
60 month
1.37%
Bonds
Purchasing a bond is basically the same as loaning your money to the bond-issuer, like a government or business. Similar to a CD, a bond is a way of locking up a certain amount of money for a fixed period of time.
Here’s how it works: A bond is purchased for a fixed period of time (the duration), investors receive interest payments over that time, and when the bond matures, the investor receives their initial investment back.
Generally, investors earn higher interest payments when bond issuers are riskier. An example may be a company that’s struggling to stay in business. But interest payments may be lower when the borrower is trustworthy, like the U.S. government, which has never defaulted on its Treasuries.
Stocks
Stocks can be purchased in a number of ways. But the important thing to know is that a stock’s potential return will depend on the specific stock, when it’s purchased, and the risk associated with it. Again, the general idea with stocks is that the riskier the stock, the higher the potential return.
This doesn’t necessarily mean you can put money into the market today and assume you’ll earn a large return on it in the next year. But based on historical precedent, your investment may bear fruit over the long-term. Because the market on average has gone up over time, bringing stock values up with it, but stock investors have to know how to handle a downturn.
As mentioned, the stock market averages a return of roughly 7% per year, adjusted for inflation.
Real Estate
Returns on real estate investing vary widely. It mostly depends on the type of real estate — if you’re purchasing a single house versus a real estate investment trust (REIT), for instance — and where the real estate is located.
As with other investments, it all comes down to risk. The riskier the investment, the higher the chance of greater returns and greater losses. Investors often debate the merit of investing in real estate versus investing in the market.
Likely Return on Investment Assets
For investors who have a high risk tolerance (they’re willing to take big risks to potentially earn high returns), some investments are better than others. For example, investing in a CD isn’t going to reap a high return on investment. So for those who are looking for higher returns, riskier investments are the way to go.
Remember the Principles of Good Investing
Investors focused on seeing huge returns over the short-term may set themselves up for disappointment. Instead, remembering basic tenets of responsible investing can best prep an investor for long-term success.
First up: diversification. It can be a good idea to invest in a wide variety of assets — stocks, bonds, real estate, etc., and a wide variety of investments within those subgroups. That’s because each type of asset tends to react differently to world events and market forces. Due to that, a diverse portfolio can be a less risky portfolio.
Time is another important factor when investing. Investing early may result in larger returns in the long-term. That’s largely because of compound interest, which is when interest is earned on an initial investment, along with the returns already accumulated by that investment. Compound interest adds to your returns.
Investing with SoFi
While every investor wants a “good return” on their investments, there isn’t one way to achieve a good return — and different investments have different rates of return, and different risk levels. Investing in CDs tends to deliver lower returns, while stocks (which are more volatile) may deliver higher returns but at much greater risk.
Your own investing strategy and asset allocation will have an influence on the potential returns of your portfolio over time.
Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, and other fees apply (full fee disclosure here). Members can access complimentary financial advice from a professional.
For a limited time, opening and funding an account gives you the opportunity to win up to $1,000 in the stock of your choice.
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market. Claw Promotion: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions. SOIN0423028
That was a phrase that my father continually beat into my head harder than Lars Ulrich could pound on his bass drum (in case there is a generation gap, Lars is the drummer from the rock band Metallica).
Even though on average college graduates do earn more in the long-run and online colleges are bringing down costs, the current job market is saturated with sustainable careers that don’t necessarily require a degree.
Taking a closer look, it seems a major shift in employer priorities is occurring in certain fields, such as manufacturing and information technology (IT), where soft skills and on-the-job training are deemed more beneficial than a formal educational background.
Individuals bringing these resources to the table are now in high demand, especially since many companies now offer assistantship programs or even paid training for high-achieving candidates.
In this day and age, it just might be more about the right skills than the right schooling.
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25 Highest Paying Jobs Without A College Degree
Margin Department Supervisor
Air Traffic Controller
Automobile Service Station Manager
Real Estate Broker
Landscape Architect
Lead Carpenter
Director of Security
Elevator Mechanic
Cable Supervisor
Flight Services Manager
Freelance Photographer
Personal Trainer
Funeral Director
Commercial Pilot
Truck Driver
Nuclear Power Reactor Operator
Firefighter
Emergency Medical Technician
Railroad Jobs
Medical Coder
Information Technology Technician
Criminal Investigator
Brick Mason
Postal Service Worker
Pharmacy Technician
If you have decided to not attend a four-year college right out of high school, or are looking for a fresh start at a new career path, 25 of the highest paying careers with virtually no degree are featured below.
Looking for a fun job that pays well? Scared that the cause of unemployment may be growing? Sign up for free and see who’s hiring in 2023 at www.FlexJobs.com.
Disclaimer: While there are definitely some good paying trade jobs on this list, I still think having a college degree is worth it. Yes, tuition is high and will continue to rise, but the experience, connections, and mindset that college offers are invaluable. Now on to the jobs…
1. Margin Department Supervisor
Average Salary: $74,799
Prior Education: A finance or accounting degree is not required, but knowledge of all basic processes is needed.
On-the-Job Training: Moderate to high training and/or shadowing.
Job Description: A Margin Department Supervisor oversees a company’s credit department, which manages customer credit accounts and approves or denies credit to customers.
As would be expected, approving or denying credit sometimes involves unhappy customers, so you’ll need strong communication and negotiation skills for this role.
Since the scope of the job requires mathematical calculations as well as debt analysis and recognition of accounting principles, make sure you are confident with these basic processes. Some companies may increase pay if you have a degree under your belt.
You’ll also primarily be in charge of ensuring all department employees adhere to federal policies and regulations.
2. Air Traffic Controller (ATC)
Average Salary: $124,540
Prior Education: A college degree is not required, but the nature of the field is very competitive where experience is highly valued. A combination of progressive work experience and formal education is generally preferred.
On-the-Job Training: Rigorous training and testing is required.
Job Description: An Air Traffic Controller is required to pass rigorous testing by the FAA, which includes health checks, as well as mental stability tests. You must initiate the testing process before age 31.
Being an Air Traffic Controller has been voted the most stressful job in the United States for many years because of what the job entails on a daily basis. Air traffic controllers also often work night shifts, weekends, and even holidays.
A typical work day may include monitoring and directing in-air traffic, including routine take off/landing. Sometimes in-air emergencies must be handled, hence the high stress associated with the position.
Strong organizational and problem-solving abilities along with excellent communication skills are highly valued in this role. It does help to know someone already in the business to land a job in this field.
3. Automobile Service Station Manager
Average Salary: $45,204
Prior Education: High school diploma or equivalent. Some employers may prefer a Bachelor’s degree in management or similar field and/or several years of experience in automotive service management.
On-the-Job Training: Most can obtain this type of position by working one’s way up the ladder through on-the-job experience. Obtaining certification may also be required.
Job Description: Essentially, the role of the Service Station Manager is to run the day-to-day operations of a gas station.
The scope of the work includes setting the gas prices for the day, scheduling and training the rest of the employees who work at the station, ordering new merchandise to keep the shelves stocked, ensuring service station safety, as well as being the direct manager for the other employees.
Some skills that would be helpful in obtaining this job would be good personal skills as well as some managerial and accounting experience.
4. Real Estate Broker
Average Salary: $56,730
Prior Education: High school diploma or equivalent. However, a college degree in finance or related field may prove beneficial.
On-the-Job Training: Even though you must take a couple of classes to obtain your certification, these courses are much less of an expense compared to financing a college degree. Licensure requirements typically vary from state to state.
Job Description: To become a real estate broker you will still need to take a couple of classes to become certified. But still, these courses are still much less of an expense to you compared to financing a college degree.
You will be trying to sell houses as well as filing the paperwork for the transactions. In addition, you will help customers with their loan agreements.
However, if you are considering this career, you should be very friendly and have flexible hours since you will most likely be working on your customers’ schedules.
You typically are self-employed setting your own hours and working on a commission basis. Good negotiation skills along with market research experience will prove helpful in this role.
5. Landscape Architect
Average Salary: $65,760
Prior Education: Typically a minimum of a Bachelor’s degree in Landscape Architecture is preferred. An internship experience is highly encouraged. This job may require you to take some classes at a community college on horticulture as well as landscape design, but these types of courses are not required.
On-the-Job Training: With this career, you will have the option of whether you would like to be becoming certified or not. However, if you are certified, you will have access to larger contracts and a wider scope of work. Most states do mandate licensure, though, and the requirements vary from state to state.
Job Description: If you do not mind getting a little dirty and working hard for a living, then this might be a good career for you. Typical job duties include designing functional yet attractive outdoor spaces and parks for a variety of clients.
Landscape architects spend a large portion of their time creating blueprints and preparing cost analysis reports. You would also analyze environmental conditions for projects and even participate in restoration initiatives.
Make sure you have a good eye for design and a strong work ethic to consider this career. Understanding GIS technologies and project management is a must.
Here’s a how-to guide for starting your own lawn company and making some serious money (in turn being able to and saving some serious money, too!).
6. Lead Carpenter
Average Salary: $51,150
Prior Education: High school diploma or equivalent. Most Lead Carpenters begin their careers as skilled apprentices.
This job requires a high amount of experience in the field either through attending a trade school to master technical skills or by being an apprentice to a lead carpenter.
On-the-Job Training: By going to trade school you will actually have to obtain some type of certification, possibly making you more marketable in the field.
Often training includes learning how to expertly handle a variety of power tools, such as power drills or saws.
Job Description: Serving as an apprentice would most likely land you in a job replacing your teacher. Either way, you can be very successful in this type of career if you enjoy working with your hands.
Although highly dependent on the type of industry, job duties may include analyzing construction plans, creating project timelines, and managing and overseeing team production activities.
Carpenters often work in both indoor and outdoor settings and may need to eventually join a union.
7. Director of Security
Average Salary: $78,608
Prior Education: Typically a minimum of a Bachelor’s degree in Computer Science or related field is preferred along with years of experience in related positions.
In reality, this job will involve starting off in an entry level security position before working your way through the ranks to become the Director of Security.
On-the-Job Training: You might also be required to pass a security guard training program, but this will most likely be paid in full by the employer so the actual educational cost to you would be zero.
Depending on the company you will work for, you might also be required to pass a background check as well as some minor health inspections.
Job Description: A typical work day would include reviewing and implementing security department policies along with ensuring relevant local, state, and federal laws and regulations are adhered to. This role may also involve actively participating in training programs with the security staff.
Some good skills to have for this type of job would be some above average physical characteristics, as well as integrity to always choose what is right.
This position often involves being on-call for any emergencies after-hours, so make sure you can fulfill this requirement.
You can also try going the Police Officer route. If you decide to pursue this career, make sure you study with the Police Exam Guide.
8. Elevator Mechanic
Average Salary: $77,806
Prior Education: High school diploma or equivalent.
Just like the Lead Carpenter job, this job will most likely be acquired through a trade school degree, assistantship, or lots of years of experience. Being an elevator mechanic does have a couple more stipulations, though.
On-the-Job Training: Moderate to high training; may need to attend trade school to contract with large corporations.
Job Description: Lots of major corporations will require you to have a license and work for an insured company, which in this case would then force you to go the trade school route so that you could work on these large corporate jobs.
A typical work day would include repairing elevators and fulfilling routine preventative maintenance when needed. Installing and repairing control systems or adjusting and inspecting safety controls are other common work tasks.
Elevator mechanics should be able to identify and troubleshoot issues quickly and efficiently, and having a working knowledge of elevator mechanics is needed. Most of this industry is unionized, so make sure you are willing to join a union before entering this line of work.
9. Cable Supervisor
Average Salary: $51,112
Prior Education: High school diploma or equivalent. However, technical school education or an internship/assistantship may prove beneficial.
On-the-Job Training: A good way to acquire this type of a position is to either apply for the job with some type of managing/scheduling background or to apply for an entry-level position and work your way up by knowing the business.
Job Description: This career would be in a managerial-type setting. You would be responsible for overseeing the maintenance as well as installation workers setting up cable boxes and internet connections.
Typical work duties would also include interpreting cable specifications, troubleshooting issues with cable equipment, and also hiring and training any new cable technicians.
You would be responsible for the scheduling aspect as well as holding the workers accountable to be where they need to be.
10. Flight Service Manager
Average Salary: $64,042
Prior Education: Typically a minimum of a Bachelor’s degree in aviation management or related field is preferred. Completing an internship program is highly suggested.
On-the-Job Training: This career would most likely be obtained through lots of on-the-job experience along with obtaining certification if required.
Job Description: You would be responsible for helping schedule flight crews as well as taking care of customer complaints and filing any necessary paperwork.
This job would require great personal skills as well as lots of patience with unhappy customers. Making sure all passengers have the best onboard experience possible is of top priority for Flight Services Managers.
Airlines can be a stressful arena to work in, so if you are considering this line of work make sure you can keep your cool in the toughest of situations.
11. Freelance Photographer
Average Salary: $36,630
Prior Education: No educational experience required.
On-the-Job Training: This career typically involves both self-education and hands-on training through practice. Natural talent and creativity are highly valued in this field.
Job Description: Being a Freelance Photographer takes dedication to one’s tasks, as well as a great eye for artistic detail. This type of career may also require traveling long distances to be able to acquire the right “shot” for the right story.
In a sense, being a Freelance Photographer can take many forms, such as snapping pictures of nature for magazines, or taking pictures of stories for newspapers, or even being a paparazzi-type photographer and searching for the next big celebrity scandal.
To really make a sustainable living in this field, it may prove helpful to complete some basic business management courses, or to attend training sessions on editing or even lighting techniques.
It’s best that Freelance Photographers have good personal skills and can identify and fulfill client needs and/or requests. If you become a really good photographer, you could even sell your photos on Shutterstock to make some extra cash.
12. Personal Trainer
Average Salary: $38,222
Prior Education: High school diploma or equivalent.
This career will most likely require that you are qualified to teach proper physical fitness techniques to clients. Many Personal Trainers have strong backgrounds in nutrition, exercise science, or other related fields.
This certificate is not very difficult to obtain; however, it is relatively cheaper compared to any other type of trade school mentioned above.
On-the-Job Training: Continual through updating or expanding one’s professional certifications.
Job Description: To be successful in this line of work you will most likely want to be a very physically active person yourself, as well as have a passion for this line of work.
A typical work day would include meeting one-on-one with clients to assess their physical fitness needs with the intent of designing an individualized training program.
Personal Trainers also motivate and encourage their clients to reach and even surpass their fitness goals. As a result, good personal and communication skills are a must.
Most Personal Trainers work at gyms, private workout facilities, or provide at-home or virtual coaching services. Some decide to work both inside and outside the home to help facilitate a higher income.
Also, you can try getting your Yoga certification.
13. Funeral Director
Average Salary: $56,850
Prior Education: Educational requirements range from a high school diploma or equivalent to an Associate’s or Bachelor’s degree in Funeral Service Education or related field. Internships are also encouraged.
On-the-Job Training: Licensure is required in the U.S. before taking on a Funeral Director position, and some states may require a certain level of education or the completion of an apprenticeship.
Job Description: You do need some training to become a Funeral Director and possibly certification, but you can eventually make as much as $80,000 a year.
A typical work day would include helping families organize funeral details and complete any corresponding paperwork, such as a death certificate.
Offering counseling to grieving family members and helping to prepare the deceased body for the funeral service are other common duties.
It is important that you be able to handle the macabre, and you do need to have tact and a warm personality since you are dealing with people in difficult situations. Make sure you can accommodate a flexible schedule since visitations and funerals are often on weekdays and weekends.
14. Commercial Pilot
Average Salary: $78,740
Prior Education: High school diploma or equivalent, but most airlines now require a Bachelor’s degree as a prerequisite for employment.
On-the-Job Training: Moderate to high training is involved. Often the first step is to get your private pilot’s license. You’ll get your flight hours up and be more comfortable in the cockpit.
Job Description: Commercial Pilots fly planes for very specific reasons, such as for rescue operations, aerial photography, aerial tours, or charter flights.
Pilots generally evaluate overall conditions of aircraft, communicate with air traffic control, and monitor engines and fuel consumption, among other routine tasks. Being a team player with strong communication and observational skills is also a plus.
You’ll be spending a considerable amount of time away from home, so make sure you aren’t too much of a homebody. Fatigue and jet lag may also be experienced often.
Excellent observational and communication skills prove quite beneficial in this field of work. You can easily make more than $50,000 if you get on as a commercial pilot at the right airline.
15. Truck Driving
Average Salary: $53,199
Prior Education: Typically a Commercial Drivers License (CDL) and/or high school diploma or equivalent is preferred.
On-the-Job Training: Drivers must complete several weeks of on-the-job training.
Job Description: After completing six to eight weeks of training and obtaining your commercial driver’s license, you can make $45,000. Work your way up to becoming a trainer, and you can clear more than $70,000 a year.
Maintaining a clean driving record is crucial. Truck Drivers must adhere to all traffic laws, ensure cargo is secure for transport, and keep all trucks and equipment in good working condition.
Hand-eye coordination, visual stamina, and mental focus are important qualities to have for this type of position.
To become a Truck Driver you need a Commercial Drivers License or CDL. I recommend using both a CDL Practice Test and CDL Test Answers to help you study up so you can pass.
16. Nuclear Power Reactor Operator
Average Salary: $72,384
Prior Education: A degree in a field like engineering is required by some nuclear power plants, but you do not need a college degree to land a lower level operator job. In some cases, all you need to do in some cases is to simply pass the certification test.
On-the-Job Training: Moderate to high training is required along with possible certification.
Job Description: Nuclear power reactor operators manage nuclear reactors, monitoring them and making adjustments as necessary to ensure the safety of the nuclear power production process.
They also have to perform routine maintenance on the reactors and shutdown on very specific systems. Because the job is quite risky and requires very careful attention to detail, it pays quite well.
It also helps to become efficient in the required computer technologies involved in nuclear power plants. Make sure you can handle shift work and long hours.
17. Fire Fighting
Average Salary: $49,080.
Prior Education: High school diploma or equivalent. Any prior training in emergency medical services is a plus.
On-the-Job Training: Completing a physically demanding training program is mandatory along with other certifications.
Job Description: The starting salary for a Firefighter is often just a little more than $30,000, but you can make more than $50,000 a year depending on where you work and whether you reach a supervisory position.
Firefighters must know how to use standard field equipment, such as hoses and ladders, become proficient at providing medical attention to injured victims, and properly handle coming in contact with hazardous materials or wildfires.
Depending on which state you work in, you may need to complete specific training programs, such as high-rise building rescues.
Being a firefighter is a very strenuous and dangerous occupation, and you often must work long shifts and over 40 hours per week. To help you get physically ready for firefighting duty, I recommend you check out Pass the Beep Test, a guide to help you prepare your body for firefighting.
18. Emergency Medical Technician (EMT)
Average Salary: $33,380
Prior Education: Typically a high school diploma or equivalent and cardiopulmonary resuscitation (CPR) certification is required. Completing a postsecondary educational program is common.
On-the-Job Training: Generally there is little to no on-the-job training, but completing levels of certification are more than likely required for most states.
Job Description: If you are about to take your EMT classes to become an EMT, you will be happy to learn that the job outlooks in this field are very promising. However, chances of having a good job in the EMS are given to those who have more EMT certifications (like paramedics).
EMTs are first responders in a medical emergency, assessing victims’ conditions and possibly transporting them to the hospital by ambulance. Often people’s lives are on the line when EMTs arrive on the scene.
The hourly wages can vary from $12.08 (10% of the workforce earns less than this) to $24.77 (10% earn more than this bracket). According to the Bureau of Labor Statistics, as of 2023 the median hourly wages of EMTs was at $17.76 per hour.
19. Railroad Jobs
Average Salary: $59,780
Prior Education: Typically a high school diploma or equivalent is required.
On-the-Job Training: Several months of moderate-level training is standard. Obtaining certifications may also be required.
Job Description: Do you like trains? Do you enjoy traveling? If so, a railroad job might be just for you.
A variety of positions are available, ranging from engineers and conductors to switch operators and management positions. Railroad jobs give you a chance to see new parts of the country while getting paid very well in the process.
Since trains operate every day of the week, expect to work nights, weekends, and holidays in all kinds of weather conditions.
Hand-eye coordination, visual acuity, and communication skills are valuable assets in this industry. If you’re looking at getting a railroad job, here’s a comprehensive guide that shares how to get a job in the railroad industry.
20. Medical Coder
Average Salary: $45,035
Prior Education: Typically a high school diploma or equivalent is required, while an Associate’s Degree is sometimes preferred.
On-the-Job Training: There is little to no on-the-job-training since specific training programs are generally completed as a prerequisite for employment. Completing certifications may also be required.
Job Description: The healthcare industry is currently booming, and you can expect it to continue to rise with the Baby Boomer generation getting older. There aren’t enough doctors and nurses available.
Behind all of the doctors is a team of medical coders typing up detailed reports on what procedures you had done and billing you or your insurance company the amount owed.
According to The American Academy of Professional Coders (AAPC)’s 2022 salary survey, on average medical coders without certification bring home approximately $47,200 per year. However, becoming certified as a Certified Professional Coder (CPC) is highly sought after to seek higher pay.
21. Information Technology (IT) Technician
Average Salary: $41,305
Prior Education: Associate’s degree, Bachelor’s degree, or certificate program in computer science or related field is typically preferred. A degree is usually not required to land an entry-level position.
On-the-Job Training: Little to no on-the-job training expected since some employers require that candidates complete some level of formal training as a prerequisite for employment.
Job Description: There are a number of career paths within information technology that do not require a college degree.
Starting out you’ll probably conduct support calls on a helpdesk and only make $11-13 per hour. As your skills and experience progress and you get more experience you can easily make $50,000 to $70,000 per year as you get into systems administration and network engineering.
Typically IT technicians diagnose and repair computer malfunctions and install and maintain network systems. Get started on your IT career path by getting some online computer training and certification.
22. Criminal Investigator
Average Salary: $58,582
Prior Education: High school diploma or equivalent.
Several years of prior experience in law enforcement is encouraged. Some employers do require a minimum of an Associate’s degree in Criminal Justice or related field.
On-the-Job Training: Moderate on-the-job training is expected. Most states do require standard licensure for criminal investigators, along with a license to carry an armed weapon.
Training typically involves learning how to properly gather information and conduct remote surveillance, among other routine tasks. Reconstructing accident scenes is also a field-specific skill learned.
Job Description: Criminal investigators are the individuals tasked with interviewing and collecting evidence for specific cases.
Depending on the case at hand, you may be performing background checks, verifying facts and statements, conducting surveillance, searching online records, or gathering information on persons of interest.
You may even need to testify in court or make a physical arrest. This job is fast-paced and often involves working odd hours, weekends, and holidays.
Important skills to have include resourcefulness, inquisitiveness, and integrity. Being able to stay cool, calm, and collected during criminal investigations is integral to performing well in this role.
23. Brick Mason
Average Salary: $42,900
Prior Education: High school diploma or equivalent. Many masons also complete extensive apprenticeship programs or specific coursework before employment.
Any previous experience as a construction laborer is acceptable.
On-the-Job Training: Learning the trade is often accomplished through completing apprenticeships and/or on-the-job training shadowing experienced masons.
In these apprenticeship programs, promising candidates learn standard masonry practices, such as construction basics, measurement calculations, and safety procedures.
Job Description: Generally a brick mason uses bricks to construct walls, fences, and other structures.
A typical work day would include reading blueprints, gathering required materials, cleaning surfaces with power tools, and lifting heavy materials for proper alignment.
Brick masons often work long hours in a fast-paced and strenuous environment where becoming injured on the job is common. Protective gear, such as safety glasses, should be worn at all times.
Construction deadlines must be met, so brick masons often work indoors and outdoors in all kinds of weather. Important skills to have for this role include hand-eye coordination, physical strength, and attention to detail.
24. Postal Service Worker
Average Salary: $57,260
Prior Education: High school diploma or equivalent. An excellent driving record is a must along with a clean track record.
On-the-Job Training: There is some short-term on-the-job training involved, including passing a written exam, road test, and other standard background checks.
Job Description: Postal service workers generally collect, sort, process, and distribute mail in a timely manner. It’s their responsibility to make sure mail is delivered seamlessly.
They also sell common postal products, such as stamps, and obtain any customer signatures for certified mail.
Important skills to have for this role include a strong focus on customer service and attention to detail.
25. Pharmacy Technician
Average Salary: $31,750
Prior Education: High school diploma or equivalent. Complete a postsecondary program in pharmacy technology before employment is acceptable.
On-the-Job Training: Moderate on-the-job training is required, which typically involves passing an exam or specialized program.
You may also need to learn how to operate automated dispensing equipment, and some states may require certification.
Job Description: Pharmacy technicians are responsible for correctly filling, packaging, and labeling customers’ or health professionals’ prescriptions.
You would also be involved in organizing inventory, processing insurance claims, and accurately entering patient information into a computer database.
Having excellent organizational, listening, and customer-service skills is highly valued for this role.
Pharmacy technicians may be required to work nights and some weekends. Make sure you are physically fit enough to spend most of the day on your feet fulfilling orders.
Is Attending College Overrated?
There’s one thing I know for sure – college is extremely expensive! As the College Board highlights in a recent survey outlining changes in college tuition between 2012-2013 and 2022-2023, tuition is on a steady upward climb that shows no signs of letting up.
In 2023, public four-year in-state tuition is $10,950 for full-time students. This was a 1.8% increase from the previous college year.
There are a vast amount of careers that you can obtain without an actual college degree, but most require either a trade school certification or just time on the job and working your way up through the ranks.
“Formal education will make you a living. Self education will make you a fortune.” – Jim Rohn
Looking for a job? Scared that the cause of unemployment may be growing? Sign up for free at www.FlexJobs.com and see who’s hiring today!
FAQs on High Paying Jobs with No Degree
Are there high paying jobs with no degree?
Yes, there are several types of jobs that do not require a college degree but can still offer competitive salaries. Some examples include web developers, software engineers, medical coders, sales professionals and IT support staff.
What qualifications do I need for these jobs?
What qualifications do I need for these jobs? The requirements for these types of positions vary depending on the job and company, but often include certifications or specialized training in the field you are interested in pursuing.
In addition to technical skills, employers are looking for individuals who demonstrate strong problem solving abilities, excellent communication skills and an understanding of customer service principles.
Q: What are some high paying jobs that don’t require a college degree?
Here are some examples of high paying jobs that don’t require a college degree:
-Commercial pilots: median salary of $121,430 per year -Detectives and criminal investigators: median salary of $81,920 per year -Nuclear power reactor operators: median salary of $94,350 per year -Power distributors and dispatchers: median salary of $83,020 per year -Real estate brokers: median salary of $61,720 per year -Elevator installers and repairers: median salary of $80,180 per year -Web developers: median salary of $73,760 per year -Petroleum engineers: median salary of $137,170 per year -Computer network architects: median salary of $112,690 per year -Medical and health services managers: median salary of $100,980 per year
Are there any high paying jobs that don’t require a college degree, but do require experience?
Yes, there are many high paying jobs that don’t require a college degree but do require experience. Some examples include:
-Commercial pilots: typically require several years of flight experience as a co-pilot before being considered for a pilot position. -Detectives and criminal investigators: typically require several years of experience in a related field, such as a police officer or federal agent. -Nuclear power reactor operators: require extensive on-the-job training and experience. -Real estate brokers: typically require several years of experience as a real estate agent before becoming a broker. -Petroleum engineers: typically require several years of experience in the oil and gas industry before being considered for a position as a petroleum engineer.
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Day traders may hold stocks for a few hours, while buy-and-hold investors may hold onto a stock for decades. There is no single formula that works for everyone when it comes to deciding how long to hold stocks.
Rather, the decision to hold stocks or sell them must include a number of factors that may be unique to each investor. These can include everything from company fundamentals to industry trends to the investor’s own goals.
In a perfect world, an investor would hold onto stocks until they made a profit. But how much of a gain, and how long that might take — and what to do if the stock loses value? — is more complicated than it seems. Here are some variables to consider.
Why Hold Onto Stocks for the Long Term?
Here are some reasons for an investor to hold on to a stock: They only feel compelled to sell it because of that stock’s most recent performance in the markets. But selling a stock because of a sudden drop in value could be considered timing the market — a strategy that, at times, can hurt investors.
What happens today in the markets doesn’t necessarily reflect longer trends, therefore holding onto stocks despite a dip may give your shares time to recover.
A study done by Dalbar illustrates how investors who attempt to time the market often turn into their own worst enemies. During the 20-year period studied, the S&P 500 had an average annual return of approximately 10%. During the same time period, the average investor achieved a return of just 2.5%, due to the frequent changing of their investment holdings (often mutual funds).
Sure, in the moment, it can be tempting to sell a stock based on a dramatic price change. But, calculating stock profit or loss alone may not be particularly helpful. Stocks that enjoy long-term growth take on some dips in price. And, similarly, dud stocks may have some brief moments in the sun.
Buying and Holding for the Long Game
What’s the ideal holding period for a stock? Some investors might say forever. (Or, at least until the money is needed — like, for income when you’ve reached your target retirement date.)
There are several allures of holding stocks for a long time. First, spending ample time in the market reduces the risk of short-term market volatility. Ups and downs in value are an inevitable part of investing in the stock market, whether through a single stock or a fund. Especially in the short-term, the market could move in any direction.
The bear market between 2007 and 2009 was a prime example of this, as the U.S. stock market lost more than 50% of its value then. This wasn’t an ideal time to be holding stocks — but it was an even worse time to sell. With a buy-and-hold strategy, investors can keep their eyes fixed on the potential for a recovery. The stock market hasn’t yet experienced a dip that it did not bounce back from.
What Is Index Investing?
This is why some investors prefer passive investing strategies. Index funds hold a representative sample of the entire stock market, in an attempt to achieve the market’s average returns. Instead of betting on just one company stock’s performance, index funds invest in the entire engine of the economy. Research has shown that over time, market returns may exceed the returns of active strategies.
Since the great recession of 2008, the stock market has more than made back its losses. This is why buy-and-hold is a strategy that is popular with index fund investors.
Holding Stocks for Future Profitability
Let’s say that a company’s stock has performed well. Perhaps, it’s even hit an investor’s profitability target. Is growth, alone, a good reason to sell? Some investors might think no.
At any moment in time, what makes an investment worth holding on to is the belief that it will be profitable in the future. Therefore, what has happened in the recent past may or may not be relevant to the future.
In investing parlance, this notion is called fundamental analysis. Here are just a few big factors that an investor might chew on when adopting this type of market analysis:
An investor wants to hold on to the stock of a company that continues to increase its sales over time, with a forward-looking forecast that indicates growth. Perhaps the company continues to beat Wall Street’s expectations on earnings.
Maybe, the company has strong management that continues to improve profit margins without sacrificing innovation. Or, perhaps the company continues to develop products that increasingly capture market share, making the company a stronger industry competitor.
While none of the above scenarios outright guarantee a company’s stock will continue to perform well into the future, keeping an eye trained to the days ahead — instead of the past — may be a useful skill for investors to develop.
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Reasons to Sell Stocks
Some investors and traders, however, are not interested in long-term holding strategies. Instead, they set certain profit thresholds, selling once those requirements are met.
Selling Once a Stock Hits a Profit Requirement
Here’s one scenario:
A trader may want to sell once a stock reaches 10% or 20% in profit. Similarly, a stock could be sold once it hits a preselected price target — usually based on a stock’s per-share price. Price-target selling can be set up automatically, through what’s called a limit order.
For example, an investor buys a stock for $50. They want to sell this stock if (and only if) the price reaches $65. A limit order can be set to sell when the stock hits this target price. If it never reaches $65, then order is not filled (and the stock remains held).
Selling for Personal Reasons
Although it is not, generally, recommended that an investment strategy change in response to the market’s ups and downs, there are plenty of personal reasons why a person may opt to sell stock investments.
Certain life events may create a shift in an investor’s ability to tolerate the risk of stocks. For instance, a divorce, family death, the birth of a child, or a big move may cause a person to want to keep more of their overall investment portfolio in easy-to-access cash (or other less volatile investments).
Similarly, a person might just want to build up their cash savings. For financial goals with a more immediate timeline, it may make little sense to subject that money to the volatility of the stock market. Instead, savers may prefer to sell stocks to keep that money liquid and ready to be used.
Changes in personal investment strategy can also drive an individual to sell stocks. Shifts along these lines may have nothing to do with a stock’s recent performance or that of the market. Investors approaching retirement, for example, could want to shift towards more conservative investments, like cash or bond holdings.
Selling to Diversify Assets
Many investors opt to put a mix of stocks, bonds, and cash in their long-term investment portfolios. For example, an investor may choose a mix of 70% stocks and 30% bonds to balance out investment goals and risk tolerance.
But, when diversifying assets, one type of investment may outperform the other. Because of the potential for this uneven growth, an investor’s asset allocation could get thrown out of balance.
Let’s imagine a large spurt of growth in the stock market coupled with more lackluster growth in the bond market. Remember the investor from above, with a 70/30 mix? Maybe, now. they’re left with a portfolio that’s closer to 80% stocks and 20% bonds.
That mix may carry more risk than the investor deems appropriate. So, in this scenario, rebalancing the portfolio requires selling some stock holdings and then moving the funds into less volatile bonds.
Understanding Short-Term Holdings
Investors debating how long to hold their stocks will likely want to consider taxes. There’s no minimum amount of time when an investor needs to hold on to stock.
But, investments that are sold at a gain are taxed at a capital gains tax rate. This rate changes, depending on whether the investor held onto the stock for more or less than one year.
For a holding period of less than one year, any gains will be taxed at a person’s marginal income tax rate. By holding onto a stock for more than one year, an investor will likely lower their tax burden. It can be helpful for investors to speak with a certified tax professional before adopting any tax strategy.
The Takeaway
Even though investors typically put a great deal of thought into selecting stocks and other securities, with the hope that those securities will appreciate in value, there is no guarantee they will. And there is no crystal ball that can tell any investor how long to hold onto a stock.
Sometimes it’s the stock itself that determines how long you’ll hold it. But sometimes your investing strategy determines your stock selection. If you’re planning to sell quickly with a gain in mind, that’s one approach. But if you expect to hold onto a stock for the long haul, that can also influence which stocks you think have staying power.
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We’re about to let you in on a little secret. Come in close, we promise it will be worth it, especially if you’ve been in a constant state of panic on how to truly price your house.
So are you ready? The secret to selling your house as quickly as possible for the greatest cash possible is … to find the dollar value both you and your buyer are happy with. That’s it. Sorry. Kind of anticlimactic, really.
The truth is, there’s no big secret those slick real estate agents are keeping stashed away, concealed in a safe, written in code on a device which self-destructs in five seconds Tom Cruise-style. It boils down to doing your research, maintaining realistic expectations and putting in the hard work.
We know it sounds hard and time-consuming, but we promise, it can actually be kind of fun! Let’s take a closer look.
The Home Pricing Tightrope
We can’t emphasize this point enough. Finding the right price for your home requires compromise. Sure, you may fondly remember your dad and his bicycle shorts parading around the yard with a weed wacker, but your buyer isn’t wearing those rose-colored spectacles. They’re seeking a house they can eventually turn into a home, and for now they have no memories to build on.
Which brings us to the cardinal rule of pricing your home. It’s a balance. For better or worse, it’s a tightrope you and your buyer will need to walk together.
This balancing act also has big implications for how you set your price to begin with. Here’s a slightly scary statistic for you:
Interest in a home market listing trails off sharply after about three weeks. That’s not a lot of time! In a mere 21 days, your property listing transforms from new and fresh like 2014 Jennifer Lawrence to “Oh yeah. We saw that one. Next” 2018 Jennifer Lawrence.
That doesn’t give you a ton of time to capitalize on that initial surge of interest. But there’s one effective way to start your tightrope walk on the right footing. Drum roll please….
List Your Home Below Market
Gasp. We know. How dare we. But here’s what happens: Most buyers will have a Realtor doing a lot of research on comparable homes. An underpriced home will stick out like a lime, polka-dot chimney. You can bet your home will end up on your Realtor’s short-list of early recommendations, and with any luck, buyers will look at your opening price and experience that thrill we all know and recognize — the thrill of a bargain.
Bam. They’re intrigued. They want to see this amazing (and really quite reasonably priced) house. They even like the lime, polka-dot chimney! Right there, you’ve set out on the pricing tightrope on the right footing. With any luck, other buyers will see it too and you may end up on the receiving end of a bidding war, which is a very good war to be in if you’re the seller.
Price Drops Can Scare Buyers Away
It can certainly be tempting to start with a higher price. But if no one bites, at some point you’ll have to lower your price anyway. When the price drops on a home, it’s often perceived as undesirable, making your house essentially the Urkel of the block that no one wants to take to prom.
Realtors working with their buyers might even see the price drop and keep their buyers away, focusing instead on other opportunities.
Shameless plug fact #1: It takes Homie only 16 days to sell a home. On top of that, you can save the 6 percent Realtor commission ($18,000 on a $300,000 home), and add a new polka-dot chimney to your next new home.
Here endeth the lesson of the home pricing tightrope and the importance of reasonable expectations! Let’s turn now to an equally important truth nugget in getting a great price on your home: research.
Zig When They Zag (With Careful Research)
We’ve all had a bespectacled, chalk-throwing teacher inform us at some point in our lives that Knowledge is Power. And when you’re selling your home, it’s certainly a lesson to remember.
Information is going to be your best friend as you negotiate the selling price of your home, giving you answers to the questions your buyers will inevitably ask. In short, it lets you know just how much “give” you should yield to their “take.”
So, what information should you have at your fingertips?
Comparable Home Sales
It’s imperative (serious face) that you look at homes for sale in Phoenix or Salt Lake City that are similar to yours. This means equivalent bedrooms, square footage, year built, and style. The more detailed you can get, the better comp you’ll come up with for your home. This gives you a hard line that is simple yet powerful: you know your home’s value. But wait, there’s more!
As a reward for this dedication to data (ya nerd), you’ll also gain a useful insight into how long your home is likely to stay on the market. Staying within your comp range will increase your probability of selling the home within a similar number of days as other homes you’ve comp’d against.
Sales of Homes in the Same Neighborhood
Comparing your home to those all over town won’t do much good. You need to compare apples with apples (or whichever fruit you prefer). To do that properly, you’ll need an insight into what factors drive prices up and pull prices down. Major lines of separation such as freeways, train tracks, and rivers often create natural borders. There may simply be a perception that houses on side X of the freeway belong to the less desirable neighborhood, while those on side Y magically belong to the good part of town.
If you don’t have that information, go out and find it. Looking at HOA divisions is a great place to start. HOAs usually have similar homes, making comparing homes more practical. There are exceptions though. If a HOA neighborhood backs up into mountain foothills (and has great views) they’ll tend to have higher comps, so avoid the million dollar listing unless you can touch Camelback Mountain from your back porch.
Failing that, talk to people! Find a local expert, sit them down with a margarita or a spiked iced latte, and interrogate them if necessary. Avoid shining a bright desk lamp in their eyes though. Most people consider that rude.
Price Per Square Foot
Then there’s more practical information to gather. Square foot pricing can really simplify comps. There may be a larger home within a neighborhood that obviously costs more. But is it a good value? If the average square foot cost is $120 per square foot and the large home is $130 per, it isn’t too overpriced. On the other hand, if the larger home was $165 per, that could be a problem.
Sales Over the Last Three Months
Another good factoid to have up your sleeve is how “hot” the market is right now. Looking at sales over the last three months will give you a good idea on the trend. Are sales slowing, going flat, or increasing? If you’re about to list your home and sales are slowing, you might need to come down on your initial list price to get ahead of slowing sales.
Shameless plug fact #2: As a licensed real estate broker, Homie merges all this deliciously useful info into one, convenient Home Value Report. This report is your best friend in helping you zero in on pricing that hits the “sweet spot” for both buyer and seller.
When Selling Your Home, Avoid Your Inner Alec Baldwin
Thus far, we’ve looked at two very practical foundations for selling your home at the right price: balanced expectations and careful research. This final piece of the sales puzzle might seem a bit “feely touchy” by comparison, but it’s no less important. In fact it may be the “one piece to rule them all.” Such a nerd.
It’s nice to be nice. Or as grandma used to say, you catch more flies with honey.
While you can get caught up on all the activity that goes into selling a home in Phoenix, don’t forget that there’s another party involved. You want the best price. That’s understandable. But so does your counterpart. In a sense, you share a common goal: to close the deal and leave the situation a winner.
If you and the other party seem far off on price, don’t give up just yet! You can always counter by getting closer to their price, adding an incentive, or other tactics that can get both sides closer to a deal.
If they see you giving a little, they’re likely to give as well. The selling process can actually be fun, and you might even end up actively working together to build the greatest possible outcome for both parties. Awwww.
Pricing your home right and making a successful sale is always a journey. It takes balance, research, and a willingness to work with your buyer. Fortunately, you have excellent resources at your disposal! With Homie, you have a powerful licensed real estate broker right at your fingertips and for a fraction of the cost a traditional agent charges.
Give yourself the best chance of getting it right. Give Homie a try. You’ll save on both time and commissions.
Deciding you’re ready to consult with a financial advisor is a first and important step in reaching your financial goals — but finding the right professional for your needs takes some time and effort, starting with a closer look at what you need, exactly.
A financial advisor can do many things. Generally, they examine a client’s current financial picture, from debt to savings and investments; discuss financial goals (whether retirement, saving for college, or another goal); and create a plan to help the client get there.
Some financial professionals simply offer guidance or a basic plan; others may completely manage a client’s portfolio, while others may offer services that fall somewhere in between. Finding the right person hinges on whether their services match your needs, whether their cost structure makes sense, in addition to other considerations.
Benefits of Using a Financial Advisor
Financial advisors can help their clients create a financial plan that allows them to save and invest for future goals while still meeting the obligations of today. In other words, they can help craft a comprehensive plan to guide people through multiple stages of life in a way that dovetails with their unique goals. Typically, the plan has some degree of personalization.
Plus, advisors can help their clients stay the course, saving and investing for the long term. Creating a financial plan is a key step, but then it’s crucial to stick with the plan. This isn’t always easy when, for example, the market is volatile and emotions are triggered. But that’s when an experienced advisor may come in handy; they can provide perspective and help clients stay focused.
Some financial advisors help clients to become more financial savvy. Some may make trades for their clients, while many monitor investments made to help ensure that a client’s portfolio is on track. Some help with tax issues as well, e.g. whether to use a strategy like tax-loss harvesting, and more complex financial matters like estate planning.
By looking at these benefits, which seem most important to you? Sometimes making a list of requirements can be helping when trying to find a financial advisor. Under some circumstances you may even want to consider hiring a wealth advisor.
Seeking an Advisor
Next step in finding an advisor is to obtain some recommendations. To get a list of advisors to consider:
Friends and Family Recommendations
• Ask friends and family if they’ve used or are using an advisor. If so, what services are they receiving? How happy are they? Are there any concerns about any of the advisors they’re using? Ideally you want to take recs from people in similar circumstances to your own.
• Do the same with business colleagues, or people who belong to the same organizations that you do.
By looking at the websites of these advisors, do they seem like a potential match?
Industry Associations
Another option when seeking an advisor is to consult industry associations and trade groups.
• The National Association of Personal Financial Advisors website (NAPFA focuses on fee-only financial planners).
• Financial Planning Association. Advisors in this network are CERTIFIED FINANCIAL PLANNERS™ (CFP®s) and you can search by location, area of specialty, how they’re paid and any asset minimums that may exist.
• Garrett Planning Network. All advisors in this network charge hourly.
Finding the Right Fit
Just as you wouldn’t buy the first car you test-drove, or the first pair of shoes you tried on, you don’t have to commit to working with the first financial planner you talk to. Many advisors offer a free consultation so you can find out more about them. While the selection process does take a little extra time, it’s worth investing that time for your future.
Questions to Consider
Some people may find that the same names keep cropping up when asking for recommendations and exploring online sites. It can therefore make sense to create a short list of financial advisors from those findings and explore those options in more depth.
Questions to ask those advisors can include:
• What specific services do you offer?
• What processes do you use to create a plan for me?
• What qualifications do you have?
• How often would we meet or otherwise communicate?
• What is your overall investment philosophy?
If you’re a beginning investor, it can help to ask about the financial advisor’s experience in getting new people started with planning and investing in a basic portfolio.
Fiduciary Rules
Another key question: is a financial advisor a fiduciary? If so, the advisor must work in the best interests of a client and either disclose conflicts of interest or avoid them. If an advisor is not a fiduciary, he or she is required only to make recommendations that are considered suitable.
In 2013, the U.S. Department of Labor tried to mandate that all financial advisors needed to follow a fiduciary standard with retirement accounts. But in 2018, the Fifth Circuit Court overruled the standard. Although this issue may be revisited, for now, investors who want a fiduciary must find out what standard a particular financial advisor follows.
Advisors who follow a fee-based payment structure are, by definition, fiduciaries. Those who get paid a commission when clients make certain investments may or may not be. When an advisor isn’t a fiduciary, they might recommend investments because they’re right for the client, but they could also be recommended because the advisor gets paid a commission.
Also, when comparing advisors, what will services for each of them cost?
Common Financial Advisor Charges
Financial advisors’ fees can be structured in a number of ways, and what you pay for a financial advisor depends on a number of factors. In general, financial advisors are either paid a flat fee (such as a retainer or a fee-for-services), commissions on products and investments they sell you (such as insurances and/or mutual funds), or a hybrid.
Retainer
Some advisors charge fixed retainer fees, due monthly, quarterly, or annually. The fees can range significantly; annually, the low end may be $2,000, with the high end at $7,500. Investors can ask an advisor to explain what they get for paying the retainer.
Commission
In this scenario, advisors get paid based on the products they sell to clients. Some advisors may receive a percentage of the assets of a client before the investments are made. Others can be paid by a financial institution after the transaction has occurred, while others may charge clients each time that a stock is bought or sold.
Advisory Fees
This can be a percentage of the assets being managed by the financial advisor. Generally speaking, paying 1% annually is reasonable under this structure when including both the fees of a financial advisor and any investment fees. When considering an advisor who charges these fees, it can make sense to ask for a breakdown and the reasoning behind the fee structure.
Planning Fees
This could be an upfront fee for a financial plan or for ongoing advice. There can also be a subscription-based fee structure, similar to a retainer. Fees for these services vary widely, so be sure to ask what your all-in costs would be when working with any advisor.
Hourly Fees
This would involve a straight hourly fee for services provided. For example, setting up your retirement portfolio might cost $X, while setting up a 529 college savings plan for your kids might cost $Y.
Robo Advising vs Financial Advisors
It may also make sense to consider an online robo-advisor, or automated investing platform. This is an algorithm-driven digital platform that provides clients with basic financial guidance and pre-set portfolio options.
First, the investor responds to a questionnaire by inputting their goals and time horizon. Typical questions may also include risk tolerance. (Here’s a helpful risk tolerance quiz.)
Based on the investor’s preferences, the technology on the backend comes up with a basic plan and a recommended portfolio option (e.g. one that’s more aggressive or more conservative).
Because most automated portfolios are built with low-cost index or exchange-traded funds (ETFs), these services are considered efficient and low cost compared with using a human advisor.
Robo portfolios often involve an annual fee, perhaps 0.25% to 1% of the account balance. In some instances, a robo advisor may charge a small monthly dollar amount for lower balances, e.g. $4 per month, instead of a percentage. Remember, these costs are in addition to the fees for the underlying funds in your portfolio.
Automated investing platforms may not be the right choice for people who need advice for complex financial situations, such as tax planning. It also wouldn’t fit the needs of investors who simply prefer to sit down with a human advisor, of course.
Just like with human advisors, different robo advisor programs offer different services. So if the idea of robo advising sounds appealing, it can help to check more than one option.
Free Financial Advice
Some companies offer complimentary financial advice for their customers. In some cases this feature is only offered if your account balance is high enough. But even though an advisory service might be touted as ‘no cost’, remember that different investment products always come with a fee, such as an expense ratio. Topics discussed can include how to:
• Set and reach financial goals, based on the current financial landscape.
• Create a budget and practice good spending habits.
• Leverage debt strategically by balancing repayment of debt with saving for long-term goals.
• Build an emergency fund and save for the future.
• Create an investment strategy that dovetails with personal risk tolerance and goals.
The Takeaway
Deciding to work with a financial advisor is an exciting step toward taking control of your financial future. Finding the right person, however, takes time and diligence. Financial advisors can come with a range of qualifications and specialties. The services they offer and the fees they charge also vary.
Fortunately, there are a number of organizations that can help you do a search for someone who is the right fit. And you can also consider taking a more tech-driven route and using a robo-advisor.
Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here), and members can access complimentary financial advice from a professional.
For a limited time, opening and funding an account gives you the opportunity to win up to $1,000 in the stock of your choice.
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