I read posts and articles all the time where opinions are dressed up as news pieces. Not to pick on Market Watch (who basically lifted these “chicken little” comments from Vice) or Inman but these are just a couple recent examples. There are dozens of these occurrences every week.
A couple old sayings come to mind when reading articles like these –
“Anything is possible.” Look at WeWork. There went a $40 billion IPO out the window in a span of a few weeks.
“There’s a first time for everything.” We just had the first World Series ever in which the visiting team won every game in the series.
Could, would, maybe…
What Constitutes Success in Real Estate?
In baseball, a .330 hitter makes an out in 2/3 of his at-bats. Do that for a career and you go into the Baseball Hall of Fame. A successful quarterback will have at least a 65% completion rate.
Most brokers and agents would pay dearly to have a consistent 5% lead conversion rate. So is it the number of at-bats or pass attempts, so to speak, or the number of hits or completions that counts?
Everyone knows about the low barrier to entry in the industry. This and the threshold for broker success in this business are tied to the huge fragmentation not just across the country as a whole but in every state too. So why does the volume of business (and resulting commissions) continue to concentrate at the top of the real estate agent ranks? Years ago, people used to talk about a 70/30 business environment where 30% of the agents accounted for 70% of the transactions. Then it became 80/20, now it is 85/15, and yet it still doesn’t stop new players from entering the game and trying to advance up the ladder of success.
The Next Big Thing
via GIPHY
Is this on the minds of VC’s and hedge funds when they look at this industry? What do they see that most people don’t when they pour tens of millions of dollars into a tech startup that thinks it has come across the next big thing in real estate? Anything is possible and there have been some great ideas that have come to fruition over the past 10-15 years.
Somewhere out there, someone is going to come up with the next great idea (see: Zestimates and Zillow Premier Agents). Data aggregation is critical but so is the ability to make sense of and leverage that data. Regardless, it takes technology to make all of that work and to speed up the process as well. There will be a next big thing – but who or what will it be? Maybe it’s Zillow Offers and we don’t even realize it yet.
What we CAN count on is that it will be technology-based combined with an equal dose of human talent and sensibilities. It will also likely be in an area that takes advantage of inherent inefficiencies in the industry.
And despite these inefficiencies and hundreds of markets in this country, it has to scale up across the country to really be the NEXT BIG THING.
Rich Barton sees it. He couldn’t have been more explicit at the recent Zillow Unlock conference. Do brokers see it?
Skeptics and Advocates
Not gonna happen, a lot of people say. Well, are we looking at probabilities similar to lead conversion rates, baseball batting averages, or quarterback pass completion rates? Circumstances change every day and there are lots of smart people out there who will spot the opportunity and act on it. Maybe it will pan out for them; maybe it won’t.
Ask Inside Real Estate and their investors what they think is coming down the road. See if Vista Equity Partners believes that there is something just over the horizon waiting to be monetized. They don’t need a .330 batting average. Some doubles and triples (and millions of dollars) will get them where they want to go.
What the real estate tech startups have always needed are deep-pocketed advocates – people who are willing to put those millions of dollars down on a proposal because they know that this business is a never-ending series of long shots. What the startups bring to the game is a relentless effort and a huge amount of sweat equity in the face of incredibly long odds. But it does require someone who believes to bankroll that effort. And recent history has demonstrated that there are a lot of angel investors out there willing to pony up that kind of money. Because there is a first time for everything.
These two stances, skeptics and advocates, are often considered to be extremes in human behavior when in fact they’re not. There are degrees of skepticism and belief. That’s why hedge funds are aptly named.
Years ago, people in the industry used to talk about “lions coming over the hill” and that those “lions” were going to leverage technology to take over the industry. Well, technology has advanced light years since that speech in 1993 and the lions are already in our midst. They’re not the Microsofts and Googles that everyone feared years ago. They’re the startups who have beaten the odds so far, defied the conventional wisdom, and succeeded to some extent. A lot of skeptics just don’t want to acknowledge it – yet.
There’s a first time for everything and anything IS possible.
On December 20th, Bank of America downgraded shares of Re/Max (NYSE:RMAX) to a sell rating with a $56.00 price target on the financial services provider’s stock. Analysts from Zacks also downgraded RMAX to a “sell” rating in a later report. Other analysts have rated the stock as a buy or hold on an earlier earnings report from RMAX.
As of this writing, RMAX shares are down to $30.92 from a six-month high of $56.25 per share. Despite the negative trend, there is good news for those vested in the stock. A recent Zacks Equity Research report the day before Christmas spotlighted RMAX in a crisp comparison with Jones Lang LaSalle (JLL) which revealed a lot about the short and long-term potential of both stocks. As I type this, Jones Lang LaSalle retains a Zacks Rank of #2 (Buy), while RE/MAX is lagging with a Zacks Rank of #4 (Sell). But, the Zacks report goes on to reveal why JLL is rated so much higher than RMAX.
Key among the other variables Zacks is the fact JLL has a P/B ratio of 1.59, while RMAX has a P/B of 7.17. As a reminder, the P/B ratio is what Zacks and other analysts use to compare a stock’s market value against its book value. The basic equation is the result of subtracting total assets minus total liabilities. The corresponding value is the reason JLL holds a Value grade of A, against RMAX with a Value grade of C. Other variables in the report explain why so many analysts have devalued RMAX recently. JLL currently has a forward P/E ratio of 11.45, against RMAX forward P/E of 12.94. Other metrics paint a clearer picture for the struggling stock.
Another kind of predictor called the Altman Z score was developed a few decades ago by an. Published by Edward I. Altman back in 1968, the Altman Z can predict a company going bankrupt within 2 years with 90% accuracy. Currently, RMAX Altman Z score of 3.734334, which indicates the company is unlikely to default in the next couple of years. RMAX stock stands nearly -52.83% off versus a 52-week high and 3.81% off from the 52-week low, with the current shares currently owned by investors at 18.14 million. Mixed as these signals seems to be, it’s good advice for investors interested in quality ratios of RMAX to into consideration the Gross Profitability of the stock, which is currently 0.498758. Another factor of confidence for RMAX is the moderately low Montier C-Score of 2.0, which indicates the company is unlikely to be cooking the books. A million mixed signals, so what’s the bottom line on RMAX?
Even the most profitable and stable stocks face setbacks from time to time. The mixed or even negative signals in media make the trading decision a tricky job at best. It’s a certainty that making these decisions based on one piece of data is a perilous strategy, but deciphering myriad equations and functions are no less hazardous. Negative information about a company usually prompts investors to sell quickly without delving into the deeper metrics. The same is true where positive intelligence is concerned. As for RMAX value now, my recommendation in a mixed bag of appraisals is to follow the big money. Having said that, BlackRock Inc. increased its position in Re/Max by 6.5% during the 2nd quarter of 2018, and now owns 2,432,754 shares of the financial services provider’s stock worth $127,598,000. BlackRock, for anyone who is not aware, is not in the business of losing investments. So, the “sell” rating put on RMAX means “buy” at the right price in my book. The next quarter of trading will tell, but my money is on holding the shares.
Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets including part owner of Pamil Visions with wife Mihaela. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. Phil is currently top interviewer, and journalist at Realty Biz News.
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 843.8 million USD in 2021.
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?
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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
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.
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.
David Zaslav: The Discovery Dynamo – Captaining Discovery as its CEO, David Zaslav, commands a whopping $129,500,000.
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.
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.
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 $47,709.90per 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-Figures 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.
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.
The U.S. housing market is on fire. Prices are rising at a record pace, and it’s getting harder and harder to find a good deal on a home. Even the ever-increasing cost of home lending isn’t doing much to drive prices downward, despite the US Federal Reserve’s best efforts to curb inflation by raising the base rate! If you’re looking for a luxury home, there are still a few markets where you can find some good deals. Here are five of the strongest luxury housing markets in the U.S. right now.
Stylish modern interior Idea for home design, beautiful luxurious living room, cozy living room with a stylish sofa, Generative AI
St. Louis, Missouri
St. Louis is a city that has been on the upswing in recent years. The economy is strong, unemployment is low, and there’s a lot of new development happening. This has all led to a surge in demand for luxury homes in St. Louis. The median home price in St. Louis is currently around $250,000. This is significantly lower than the national average of $375,000. So if you’re looking for a luxury home in a more affordable market, St. Louis is a great option.
While the Midwest region might not be for everyone, St. Louis has a lot to offer luxury buyers in terms of amenities. The city is home to a world-class art museum, a symphony orchestra, and a number of professional sports teams. St. Louis is also located within a short drive of some of the most beautiful natural scenery in the country.
Portland, Oregon, USA – June 5, 2022: Pittock Mansion in Portland. Originally built in 1909, Pittock mansion is a French Renaissance-style chateau located in the West Hills of the city.
Boulder, Colorado
Boulder is a city that is known for its stunning scenery, its vibrant arts and culture scene, and its strong economy. The city is also home to a number of Fortune 500 companies, which has helped to drive up demand for luxury homes in recent years.
The median home price in Boulder is currently around $900,000. This is significantly higher than the national average, but it is still relatively affordable for luxury buyers. Boulder is a popular destination for tech workers and entrepreneurs, and the city’s economy is expected to continue to grow in the coming years.
San Jose, California
San Jose is the heart of Silicon Valley, and it is one of the most expensive cities in the country. The median home price in San Jose is currently around $1.5 million. However, the city’s strong economy and its abundance of amenities make it a desirable place to live for luxury buyers.
San Jose is home to a number of Fortune 500 companies, and the city’s unemployment rate is consistently below the national average. The city also has a thriving arts and culture scene, and it is home to some of the best restaurants in the country. Plus, its close proximity to San Francisco means it’s close to even more incredible culture and arts.
Dallas, Texas
Dallas is a major financial and business center, and it is home to a number of Fortune 500 companies – much like many of the other entries on this list. Similar to San Jose, for example, the city’s economy is likewise quite strong, and the unemployment rate is consistently below the national average. In fact, the entire Dallas-Fort Worth area has been a solid economic performer for decades.
The median home price in Dallas is currently around $500,000. This is significantly lower than the median home price in San Jose or Boulder, but it is still a relatively high price tag. However, Dallas offers a number of amenities that appeal to luxury buyers. The city has a vibrant arts and culture scene, and it is home to some of the best restaurants in Texas.
Hilton Head, South Carolina
Hilton Head is a resort town located on the Atlantic coast of South Carolina. The city is known for its beautiful beaches, its golf courses, and its upscale shopping. It has a very strong and well-earned reputation for luxury living thanks to its position on the coast and the warm weather it experiences nearly year-round.
The median home price in Hilton Head is currently around $1 million. This is a relatively high price tag, but it is still affordable for luxury buyers. The city’s strong economy and its abundance of amenities make it a desirable place to live for those who want to enjoy a luxurious lifestyle. It’s especially relevant for anyone who enjoys boating or watersports of every kind.
These are just a few of the strongest luxury housing markets in the U.S. right now. If you are looking for a place to buy a luxury home, these are the cities where you should start your search.
Bonus Markets You Should Consider for Luxury Housing
St. Louis, Boulder, San Jose, Texas, and Hilton Head are fantastic choices if you’re looking for a solid luxury housing market. In addition to the five cities listed above, there are a few other markets that are worth considering if you’re looking for a luxury home. These include:
Austin, Texas
Nashville, Tennessee
Raleigh, North Carolina
Charlotte, North Carolina
Phoenix, Arizona
These markets are all experiencing strong growth, and they offer a good mix of affordability and amenities. So if you’re not sure where to start your search for a luxury home, these are a few great places to consider.
The Last Word on Luxury Home Markets in 2023
If you are in the market for a luxury home this year, you can’t go wrong with any of the excellent cities and neighborhoods mentioned in this list. However, you should be aware that markets change all the time based on economic conditions. Be sure to do your due diligence and thoroughly research every property you’re interested in. Enlist the help of a qualified real estate professional familiar with your target market for the best results!
Find topics in marketing, technology, and social media for realtors, and housing market resources for homeowners. Be sure to subscribe to Digital Age of Real Estate.
inflation cooled in June for the twelfth straight month despite persistent rent hikes and rising gas prices.
Even with interest rates on mortgage loans hovering around 7%, the market is still moving quickly, according to Market Watch.
“There appears to be more demand than available supply for homes, especially in the real-estate market, which is keeping home prices high,” Mike Simonsen, founder and president of real-estate analytics firm Altos Research, told MarketWatch.
The Baby Boomer generation is also largely ‘aging in place,’ according to a recent report by investment company US Money Reserve. The report said that 38% of American homeowners age 65+ have lived in their homes for more than 30 years, and another 39% have lived in their current homes for more than a decade.
Own a piece of Indianapolis history with this Victorian townhouse on Delaware St. in the Old Northside. Built in 1872, this home has been renovated from top to bottom and seamlessly combines historic charm with updated style.
The coffered ceilings, hardwood floors and turret with curved windows remind you of the home’s history and attention to detail. Features like the marble countertops, double ovens and built-in wine fridge mean you definitely aren’t living in the 1800s.
These easily avoidable mistakes turn off buyers. Don’t do them.
Fort Wayne
This Fort Wayne condo has some incredible views. Floor-to-ceiling windows throughout the condo show off the Allen County Courthouse and the heart of downtown.
Listed for $549,900, it includes more than 1,400 sq ft of living space with a gourmet kitchen, quartz countertops, with an ultra-modern backsplash and lighting.
See $500K homes for sale around the state, including historic 1830 house
West Lafayette
For anyone thinking about making a move closer to Purdue, check out this Dutch colonial in West Lafayette that the listing says, “feels like the perfect setting for a Hallmark holiday movie.”
Moving bonus:Why some Indiana towns are willing to pay workers to relocate
Muncie
For those looking for more land for their money, this $580,000 home in Muncie sits on more than ten acres.
This modern farmhouse was built in 2002 and is perfect for country living in a spacious home with tons of amenities.
Take in the farm views while working in the updated kitchen with custom countertops and a farm sink.
The 4 bedroom 3.5 bath with more than 3,200 sq ft inside also has an above-ground pool outside and a large deck that is perfect for entertaining.
Evansville
This $575,000 home on Volkman Road in Evansville comes with more than enough room to spread out.
A 700 sq ft guest house and a large, insulated pole barn with a full bar and theater area come along with the five-bed, 2.5 bathroom home.
With more than 3,700 sq ft of total space, the 1954 brick home features a newly laid stone fireplace, updated kitchen and large living room.
April report:Buying or selling a home in Indiana? Here’s what a $500K house looks like around the state
The thought of investing–and doing it successfully–can be a daunting task. This is especially true if you’re a beginner investor. However, if you’re willing to take advantage of the information on the best investment sites, you’ll have a wealth of investment knowledge right at your fingertips.
The top investment sites for stock news, research, and analysis can be great tools for keeping you up to date on the latest financial and economic news. As you learn more from each site, you’ll have more knowledge with which to plan your own personal investment strategy.
Of course, they’re just opinions, but they are educated opinions. Whether you’re a beginner investor or a seasoned investor, these sites have information you should check out.
Our Top Picks For Investment Sites
Motley Fool – Great For Beginner Investor & Get $100 off
Morningstar – Great For DIY Investors & 14 Day Free Trial
Market Watch – Great For Up to Date Investment News
In This Article
What Are the Top Investment Sites?
Even the best investment sites aren’t guaranteed to pick stock winners and losers. However, the people who are hired to write on the sites typically have a wealth of experience and education behind them.
There are a few investment sites that people “in the know” use when they want information about companies and other economic news. Here are some of our favorite investment sites for garnering important economic information.
Here’s a list of some of our favorite investment sites for learning what you need to know about investing and company financial information.
1 .Motley Fool Stock Advisor
Motley Fool was founded in 1993 by David and Tom Gardner, brothers. Their goal? “Make the world smarter, happier, and richer.” Sounds good to me.
The Motley Fool brothers are big believers in buying stock in great companies and holding onto it. Their site has a great section on investing for beginners.
It also shares a wealth of information on the stock market, on investing for retirement and more. The site even shares personal finance information such as where to find the best checking accounts and credit cards.
Personally, I find the site very well put together and easy to use too. I’d happily use this site (and do) whether I was just starting out as an investor or knew most everything I thought I needed to know.
Motley Fool Stock Advisor: Join for just $99 a year!
Best for: Those looking for comprehensive information on individual stock purchases
2. Morningstar
Morningstar’s tagline is “Empowering investor success.” The site stays true to its investment philosophy of putting investors first. That means they won’t give you investment advice based off of an affiliate relationship.
Instead, they share what they believe to be the best guidance for investors. Morningstar is probably best known for the ratings it publishes on varying investments.
If you want access to Morningstar ratings and detailed investment analysis, you’ll have to sign up for their premium account, which costs $199 per year. However, the site does have an endless number of free informational articles talking about all things investment-related.
Best for: Both beginner and seasoned investors who want detailed information
3. MarketWatch
MarketWatch is another top-rated investment site. It’s a good site for keeping up to day with the latest investment and economic information.
The site shares global information for most all stock markets, commodities markets, forex markets and more. The Moneyist (the Dear Abby of personal finance and investing) is a personal favorite for me.
He answers questions ranging from “Do I have enough to retire?” to “My brother won’t give me my share of our father’s inheritance. What do I do?” and more.
You can also find personal finance information on the site. MarketWatch is full of useful information, easy on the eyes and a pleasing website to navigate.
The site also shares valuable news articles from around the web, whether it be auto reviews or best retirement spots.
Best for: Anyone who wants to find up-to-date investment and other financial information quickly and easily.
4. Barron’s
Barron’s is an investment site for the serious investor. This site is formatted most like the newspapers of old. Clear and concise, Barron’s shares market information along with its favorite current stock picks.
The site’s e-magazine contains articles about popular publicly traded companies’ ups and downs. And the site’s e-advisor keeps you up to date on it’s favorite investment moves.
The articles and information are written smartly and simply. However, they assume you’ve got a solid basic understanding on investing and economics as a whole. While Barron’s is a phenomenal site for seasoned investors, beginner investors might want to stick with one of the other sites mentioned here.
Best for: The seasoned investor who wants a wide span of information on current economics and company performance.
5. Wall Street Journal
I clearly remember seeing my grandfather and his friends perusing over the Wall Street Journal in the early 90’s as they shared breakfast together at the local greasy spoon.
My family and I would eat there on occasion, but we never interrupted the group other than to say “hi” to grandpa and give him a quick hug. Yep, this group of wealthy men would never spend more than $10 for breakfast, but they all had the money to buy the cafe’ if it ever went up for sale.
Thank you, Wall Street Journal. For as long as I can remember, the Wall Street Journal has been the go-to source for those seeking investment advice. It’s changed with the times but still stayed the same, keeping its “real” paper but managing a well-put-together website too.
Wall Street Journal covers everything regarding economic markets in the U.S. and the world. And it tosses in some articles on politics, tech, and current events as well.
The online website headlines are free, but if you want complete information you’ll have to pay for the digital editions, print editions, or both. The good news is that WSJ is affordable at no more than $20 per month. Therefore, we love it as one of the best investment sites.
Best for: Investors that want to get the scoop on the markets and the rest of the world’s happenings, as well as those craving that great feeling of holding a printed newspaper in their hands.
6. Zacks
Zacks is an investment website that’s committed to independent research analysis. The Zacks “About” page says their strategy has beat the S&P market by quite a length (over double) for the past 25+ years.
Of course, past performance is not a guaranteed indicator of future results, but it sure does tell you a thing or two. Namely that the group at Zacks knows their stuff when it comes to investing.
While the site provides a wealth (no pun intended) of free information, you’ll have to pay to get the inside scoop on the Zacks investment strategy. That includes the Zacks #1 rank list of 220 of the best stocks.
They offer a 30-day free trial. After that, you’ll pay $249 a year to continue getting access to Zacks’ investment secrets.
Bonus: Zacks links to the best articles from popular sites such as MarketWatch too.
Best for: The serious investor who’s willing to take the time to learn about in-depth investing.
7. Seeking Alpha
Seeking Alpha does a great job of delving deeper into the “whys” behind investing in a particular stock or fund. While this is a terrific feature for experienced investors, beginner investors may find the information a bit lofty.
Seeking Alpha is part investment news source and part investing community. Articles are written by investor members and then rigorously scrutinized to ensure accurate information.
With over 7,000 members, there’s no shortage of investing information and opinions. The site is great for those who want to do some in-depth research on markets, stocks, and investments.
The Basic Seeking Alpha site is free. However, the site also offers a Premium membership for $240 annually and a Pro membership for roughly $2400 annually.
Think of the Premium membership as a self-directed site and the Pro membership as a full-service site. See the website for more detailed information on what you get with the upgraded memberships.
Best for: Intermediate and advanced investors looking for community support and advice
8. The Financial Times
The Financial Times (or FT as it’s often called) focuses primarily on stocks, funds, and stock news. But you’ll also find tech information, personal finance articles, and more. In-depth information on company performance rounds out the offerings.
The site has a nice collection of charts and graphics too. There are some free articles on Financial Times, but as with Wall Street Journal you’ll have to pay if you want full access.
Like Zacks, Financial Times is a bit on the spendy side if you’re not used to paying for investment information. Digital access is $39.50 per month or $369.20 per year. The print access subscription includes digital access and costs $199 per year.
You can pay $1 and get a 4-week trial if you’d like to sample Financial Times. And there are other subscription options as well.
Best for: Investors looking for a melting pot of investment and economic news, information, and opinion
9. CNBC
CNBC is a popular news channel with a focus on investment and economic news. While you can get CNBC regularly with many paid TV subscriptions, you can also access the company’s many articles for free on their website.
Current market numbers are conveniently displayed throughout the site. And you’ll find articles on investing, technology, business, politics, and more.
Under the “Investing” tab, you’ll find “Invest in You” and “Personal Finance” sections that have a wealth of articles aimed at making personal finance more, well, personal. These sections show you how to put the site’s advice into action and better your personal money situation.
If you want access to CNBC’s “PRO” content, however, you’ll have to buy a subscription. CNBC PRO gives you access to live programming, exclusive video series, and more.
It costs $29.99 per month to subscribe to CNBC PRO, or you can pay $299.00 annually. There is a 7-day trial period you can use to check it out.
Best for: those wanting a quick glance at the world’s most up-to-date economic information
10. Kiplinger
Kiplinger was started in the 1920’s by a former AP economic reporter. The Kiplinger Letter, the company’s weekly economic publication, is considered the most widely read business forecasting publication in the world, according to the Kiplinger website.
Kiplinger also has a monthly magazine. The Kiplinger website gives access to The Kiplinger Letter if you’re a member. You can find a wealth of free information on the site, including investment information. The site also shares informational articles on:
Retirement
Taxes
Wealth creation
Personal finance
And more. However, if you want the goodies like the print magazine and/or complete access to all website information, you’ll have to subscribe.
As of this writing, you can get access to print subscriptions, digital access, or both for $29.95 for 12 months or $39.90 for 24 months. But I think you might find it well worth the price.
One thing I really like about the Kiplinger site is that many of the articles are written in a way even the most beginner personal finance/investment aficionado can understand. The site has a great mix of both beginner and experienced investor articles and information.
Best for: Beginner and experienced investors who want print news and digital news
11. Stock Rover
Stock Rover makes our list of best investment sites because of its mission to help all levels of investors make informed decisions. The Stock Rover website works to provide affordable, comprehensive research to help investors learn before they invest.
The site can help you compare companies or investments, research reports, and manage your portfolio. Stock Rover’s blog includes investing articles, stock research articles, and other valuable information.
For instance, you can learn how to build a better stock portfolio. Of course, these features don’t come for free–at least not all of them. Stock Rover has four plans you can choose from, one of which is free.
While the “free” plan does provide a lot of information and articles, the paid plans provide other valuable tools. The Essentials, Premium, and Premium Plus plans range in price from $7.99 per month to $27.99 per month.
Watchlists, screens, and the number of portfolios you can manage go up with each plan. You can get additional information via other subscriptions on Stock Rover too, such as research reports plans and bundles.
Best for: People who want more of a personal touch as they invest
12. AAII
AAII, or the American Association of Individual Investors, is a non-profit organization aimed at helping people learn about investing and grow their investment portfolios. They’ve been in business for over 40 years.
The organization uses education, information, and research to help members learn about investing and manage their investments. Along with the AAII website, you may have a local chapter that meets in person in your area.
AAII has two membership options. The Basic membership is $1 for the first 30 days and then $3.25 a month going forward. You get access to the AAII market-beating portfolio, investor guides, and other information.
The Plus membership is $2 for the first 30 days and then $15.67 per month going forward. It includes additional benefits such as stock and fund evaluators and graders, and detailed portfolio analysis and alerts.
Both membership options include free access to the local chapters of AAII. In addition, you get access to the award-winning AAII Journal in digital format, print format, or both.
Best for: Those looking for investment guidance with a heart
13. Yahoo Finance
Yahoo Finance, albeit basic, is a good at-a-glance option for investment information. The site shares market numbers along with investment and economic news articles from around the web.
You’ll find links to articles from Reuters, MarketWatch, Investopedia and other well known sites. Yahoo Finance also has their own penned articles on the site. It’s a good one stop shop for economic news.
Best for: Those wanting access to current investment and economic news from a variety of sources
14. Investopedia
Last but certainly not least, we like Investopedia as one of the best investment sites for investment news. What started out as sort of a Wikipedia with a money/investing focus has morphed into a great resource for investing and economic news and information.
Along with current investment news, you can check out Investopedia’s stock simulator. And Investopedia Academy features paid online courses to help you learn everything you want to learn about investing.
The articles cover every type of investor from the beginner to the day trader. And while the courses do cost money, most of the basic information on Investopedia is free.
Best for: Those interested in an education-based investment site
Summary
With the plush selection of the best investment sites out there, there’s no reason you can’t stay up to date on current investment news. And there’s no reason that even the most beginner of investors can’t learn how to invest smartly and successfully.
There are investment sites out there for the knowledge levels and learning preferences of just about everyone on earth.
Laurie is personal finance writer and a licensed Realtor. Her goal in blogging is to help others find their way to financial freedom, and to a simpler, more peaceful life.
Should I save for retirement or use my extra income to pay off debt? That is a question that many Americans are currently faced with. There is no question that debt has become a huge problem for most people in this country. In fact, I believe that the best way to financial freedom is to eliminate all debt!
However, most Americans have also neglected their retirement savings as well. According to a recent article by Market Watch:
The gap between what Americans need for retirement and the amount they have saved is a staggering $6.6 trillion. The $6.6 trillion retirement income deficit amounts to about $90,000 per household if you count all 72 million households ages 32 to 64, though that figure includes even those who have enough saved for retirement, said Anthony Webb, a research economist at Boston College’s Center for Retirement Research.
This means that many of us will be in serious financial trouble once the time for retirement comes around. The only way to correct this is to start saving today, or forgo retirement and work until you are physically unable.
So then the question becomes…which is more important? If you are in debt and behind in your retirement savings, where do you stick your cash? Do you hold off on contributing to retirement accounts until you are completely debt free? Should you instead max out your retirement accounts and take much longer to get out of debt? Is there a logical, orderly way to combine both?
Pay Off Debt Before Saving For Retirement
There are two very strong arguments for why you should completely get out of debt before contributing to your retirement accounts.
Guaranteed Rate Of Return
If you concentrate on getting out of debt, then you guarantee yourself a rate of return on your money that is equal to the rate of interest on your debt. For instance, if you are currently paying 20% each year on your credit card debt, then by paying it off, you guarantee yourself a 20% annual rate of return! That sounds like a great investment to me!
The same is true for any other type of debt for which you pay interest. Even though the interest rate on a house or a car is generally lower than that of a credit card, and the fact that they are amortized means that more of the interest is paid in the beginning of the loan, there is still significant savings to be had by paying them off early.
Financial Freedom
The second argument for paying off your debt before saving for retirement, is that you gain financial freedom! Being debt free means that you are now free to allocate your money any way you wish – after covering your living expenses, of course.
Fund Your Retirement Accounts Before Focusing On Debt
The Power Of Compound Interest
Simply stated, compounding interest describes what happens when interest is calculated on a principal amount of money, and then that interest is added to the principal and now interest will be calculated on this new higher amount. For instance, if you save $10,000 and it earns 10% interest over the course of a year, you have earned $1,000, meaning you now have $11,000 in your account. If we are dealing with compound interest, the next year will begin with a new principal amount of $11,000 and your 10% interest will now earn $1,100 in the second year!
Since you aren’t going to withdrawal any money out of your retirement account, each year the returns from the previous year are invested as well, so your account continues to build even if you do not add new funds [Note: The actual mechanics of investment accounts work a little differently, but the basic result is still the same].
So each year that you neglect to save for retirement, you are not only losing out on what you would have contributed for that year, but you are also missing out on the compound interest on your contribution for the next 20 to 40 years!
Tax Deferred Accounts Have An Annual Contribution Limit
If you wait until you are completely out of debt before you contribute to your retirement accounts, you will still be subject to the IRA contribution limits or the 401k contribution limits for that particular year. So even if you now have $40,000 to contribute to your retirement in 2015 because you neglected retirement savings in the previous years to get out of debt, you will still only be able to contribute $16,500 to your 401k and $5,000 to your IRA (assuming that the limits don’t change between now and then, and you are under 50)!
You May Be Missing Out On Free Money
If your employer offers a 401k employer match, then by refusing to contribute to your 401k until you get out of debt, you are passing up on free money! You could actually be turning away thousands of dollars each year because you are so focused on debt! If you make your retirement planning a priority, then you can avoid giving away money!
Save For Retirement While Getting Out Of Debt
Here is my suggestion for most people. There is no rule that says you have to go “all or nothing” when it comes to allocating your money. Put some of your money toward debt repayment, and put some toward retirement saving.
Because debt has such a negative influence on our financial freedom, happiness, and even weight, my vote is always to eliminate debt. However, because of the prospect of free money for retirement, I can’t imagine passing on my 401k contributions.
So, if you are in debt and have a chance to contribute to a 401k, do it – at least contribute enough to get the full employer match. Then put the rest of your money toward debt repayment.
Some may ask…why not contribute more? Good question. Well, do you remember that compound interest that we talked about? If you are in debt, chances are that it is working against you. You are not only charged interest on the principal amount, but also on any previously accumulated interest! That means that you must make getting out of debt a top priority – right below getting free money!
What are your thoughts? Tell us what you think about the debt vs. retirement debate in the comments!
By Khaleef Crumbley2 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited January 25, 2012.
One of the most characteristic elements of the most recent recession in the United States, was the fact that many people saw their retirement accounts reduced by a significant amount. That lead to many people becoming afraid of saving for retirement, thus leading to a decrease in 401k contributions across the board!
People were fearful of any type of investing, after seeing the stock market drop over and over again. This lead to a bunch of irrational activity, such as people taking money out of retirement accounts (willing to pay taxes and penalties), and sticking everything in savings accounts.
Fortunately, it looks like we may see a reversal of that trend – even though it isn’t enough to save most people during their golden years.
401k Contributions Increasing
According to a Market Watch article…
The average 401(k) account balance hit $74,900 at the end of the first quarter, a 12% hike from a year ago, a 58% jump from the first quarter of 2009, and the highest level since Fidelity Investments first started tracking the data in 1998, according to the retirement-plan provider’s data…
This would seem to signal that people are beginning to think more rationally about funding their retirement. However, we must dig a little bit deeper in order to see if this is really true. Retirement account levels were so low a couple of years ago, that the increase in the average account balance could just be due to the increase in the overall stock market from that time!
According to Fidelity, “about two-thirds of the increase in account balances is due to market gains, and one-third is employer and employee contributions.” It could be that people are finally tired of throwing away free money – by not taking advantage of the 401k match provided by their employer – and are at least contributing up to the match maximum (usually set at 6%).
The article also stated that, “about 10% of plan participants increased their contribution rate in the first quarter — the largest percentage that did so since Fidelity started tracking that data in 2006.”
Those are decent numbers, but I would love to see many more people taking full advantage of the generous 401k contribution limits! Too many people are living as if they have some invisible safety net that will catch them if they fall into near-poverty in retirement. It would be wise for us to not simply rely on Social Security or some other government program to save us, nor can we always rely on our family members to be in a position to care for us when we are not able to work.
Many Not Prepared For Retirement
It would be one thing if people were ignorant of their lack of preparation for retirement, but that doesn’t seem to be the case:
Just 21% of workers surveyed said they are on track with their retirement savings, down from 37% in 2005, according to the annual Retirement Confidence Survey, conducted for the Employee Benefit Research Institute, a nonprofit, nonpartisan group.
If 79% of people surveyed feel as though they are not on track with their retirement savings, then I would expect much more than 10% of plan participants increasing their savings!
It seems like most people are either so focused on getting all they can for today, or they are so intimidated with the idea of investing (or basic math), that they fail to properly and adequately plan for retirement.
Even when I speak to clients (for financial consulting or taxes), they often have no idea of how much they will need, or they just make up an arbitrary figure. The results of the EBRI survey bear that out:
While 31% of workers said they need to save less than $250,000 for retirement, another 19% said their goal is $250,000 to $499,999, and another 22% said they need to save $500,000 to $999,999, according to EBRI. Seven percent said they need to save $1 million to $1.49 million, and 10% said they need $1.5 million or more.
But a lot of these figures are pure guesswork: 42% of workers surveyed said they guessed at how much money they need to see them through retirement.
This means that nearly half of the people surveyed were comfortable making up a figure, that would determine their standard of living for a period of 30 or more years! Almost a third of all workers said that they will need less than $250,000 for retirement?!?! Many of those people will be in for a rude awakening once they retire (well, at least they can get a tax break on their job hunting expenses)!
What Should You Do?
Make sure you are taking full advantage of both 401k and IRA contribution limits
Use a simple retirement calculator (you can find Excel templates, or ones online) to get a rough estimate of your retirement needs
Talk to a financial adviser to come up with a more detailed plan
Pay off debt (including your mortgage), so that you will only be responsible for your basic living expenses once you stop working
Be realistic when setting goals and evaluating potential expenses
My Lending Club account has continued to improve over the last few months as my returns have now surpassed the 12% threshold I was aiming for, reaching 12.06% net annualized return this month. I’ve been able to improve my returns over the past year or two by moving away from investing solely in A and […]