Not only are SUVs spacious, but many are also family vehicles, so they come with high-end safety features. These features make some SUVs cheaper to insure than other popular vehicles on the market. The Subaru Outback takes the top spot on this list, and it’s also rated one of the safest midsize vehicles by the Insurance Institute for Highway Safety.
SUV
Average Annual Premium
Subaru Outback
$1,603
Honda CR-V
$1,635
Honda Pilot
$1,726
Ford Escape
$1,734
Honda Odyssey
$1,735
What Factors Make a Vehicle Expensive to Insure?
The primary factor that makes a vehicle more expensive to insure than another is the risk. Insurance companies calculate the risk for different vehicles based on how many claims people file for those vehicles, plus the cost of the repairs. While this data can’t predict the likelihood of someone getting into an accident, the data gives insurers a rough idea.
Insurance providers look at how much a vehicle costs to repair and the likelihood of the vehicle being in an accident. For example, insurance rates are higher for sports cars because people who buy sports cars are more likely to speed and drive recklessly, based on the data.
Some of the most common factors that make vehicles more expensive to insure include:
Vehicle age: An older vehicle may not have the newest safety features, but premiums may be lower on some older vehicles if the average repairs cost less.
Vehicle value: When cars are more expensive, they’re often more expensive to insure as well.
Cost of parts: Some vehicles have more expensive and specialty parts, which cost more to replace if the vehicle is in an accident. Various trim features in a vehicle can also raise the price of premiums.
Safety rating: Many insurance policies also cover physical injuries to you or another driver, which is why safety ratings play a major role in determining the cost of insurance.
Size: Although a larger vehicle may be safer, it can also cause more damage if it’s involved in an accident.
Most Expensive Cars to Insure
If you’re thinking about purchasing a new or used vehicle, it’s helpful to know which types of vehicles typically have the highest rates. They include:
Sports cars
High-end luxury vehicles
Electric vehicles
Cars that attract thieves
These vehicles are more expensive than others primarily due to the overall cost of repairs. For example, while electric vehicles may save you money on fuel, the cost of the battery can range from $4,000 to $20,000. There are also certain vehicles that thieves commonly target. A recent article from MoneyGeek[1] listed the following as the top 10 most stolen vehicles in America:
Chevrolet trucks
Ford trucks
Honda Civic
Honda Accord
Toyota Camry
GMC trucks
Nissan Altima
Honda CR-V
Jeep Cherokee and Grand Cherokee
Toyota Corolla
5 Tips to Get Cheaper Car Insurance
Whether you want cheap insurance for your new vehicle or to lower the rate for your current vehicle, these five tips may help.
Be a good driver. This sounds obvious, but it’s a must. When you’re a good driver, you save money on insurance. This means avoiding car accidents, DUIs, and other major violations.
Consider the insurance cost when buying a new vehicle. A vehicle’s make and model alone can make car insurance more expensive. Remember this when you’re buying a new vehicle, because not only will you have monthly car payments when financing a car, but you’ll also have insurance premiums.
Shop around. Like many other expenses and purchases, it’s a good idea to get multiple quotes before settling on an insurance company.
Look for discounts. Some insurance providers offer discounts, so be sure to ask. You may also receive discounts for bundling your auto and home insurance through one provider.
Improve your credit score. Your credit score may impact your car insurance rate, so make sure you watch for derogatory marks on your credit report that can lower your score.
FAQ
Here, we go over some of the most common questions people have about car insurance rates.
What Type of Car is the Least Expensive to Insure?
Subaru holds the top two spots for the cheapest cars to insure: the Subaru Outback and the Subaru Crosstrek.
Why Are Some Cars Cheaper to Insure?
Some cars are cheaper to insure because they’re cheaper to repair, have better safety features, and are a low-risk for insurance providers based on their data.
Is Insurance Cheaper for Older Cars?
Insurance for older cars is not necessarily cheaper than newer cars. If an older vehicle is more expensive to repair or has poor safety features, it may have higher rates. on the other hand, older vehicles that meet current safety standards and are inexpensive to repair may have lower rates than some newer vehicles.
What’s the Most Expensive Car to Insure?
Out of the top 25 most popular vehicles in the United States, the Tesla Model Y is the most expensive car to insure, and the Tesla Model 3 is the second most expensive.
How Your Credit Score Affects Your Car Insurance Rate
Many people don’t realize that not only does your credit score affect the cost of your vehicle, but it can also affect your insurance rates. If you have derogatory marks on your credit report from late payments, missed payments, or collections, you may face higher insurance premiums.
Before you shop for auto insurance, it’s helpful to know your credit score. You can receive a free credit report card at Credit.com, and our ExtraCredit® subscription offers even more credit management tools.
Methodology
Data was sourced from Quadrant Information Services and provided to NerdWallet[1] and Bankrate[2] . Both studies analyze data from ZIP codes throughout all 50 states and Washington, D.C., and are weighted based on geographic region and population.
NerdWallet’s research used data from Kelley Blue Book for the top 25 best-selling models, along with rates from different ZIP codes in the United States. NerdWallet based its data on both male and female drivers 35 years old with good credit and clean driving records using the following coverage limits:
$100,000 bodily injury liability coverage per person
$300,000 bodily injury liability coverage per crash
$100,000 property damage liability coverage per crash
$100,000 uninsured motorist bodily injury coverage per person
$300,000 uninsured motorist bodily injury coverage per crash
Collision coverage with $1,000 deductible
Comprehensive coverage with $1,000 deductible
The Bankrate study analyzed rates for a 40-year-old female and male who have clean driving records and good credit. Rates are for full coverage and are based on the following limits for a 2021 Toyota Camry that drives five days per week and roughly 12,000 miles per year:
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
Young professionals are becoming a major part of the workforce. Ranging in age from early-20s to mid-30s, young professionals are typically classified as working in a professional or white-collar field. However, as new careers emerge, the very definition and work of a young professional are changing and evolving on a daily basis.
It’s an exciting time for a young person in the workforce, with plenty of innovative opportunities, new directions and forward-thinking workplaces. To start their work lives off on the right foot, young professionals want to situate themselves in a good city with ample work opportunities in various fields.
But it’s not all about work. Young people want to have fun, as well! That’s why it’s imperative that a city wanting to cater to young professionals has a happening social scene. This can include everything from great restaurants to sports, live music and entertainment. A vibrant cultural scene gives young professionals a chance to let their hair down after work and connect with others in their community.
From a thriving jobs market to great after-work hours fun, these are the best cities for young professionals.
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These are the 10 best cities for young professionals
To be a good place for young professionals, a city needs to have a diverse job market. But it isn’t enough to have plenty of companies and job openings. You need chances for advancement within fields and companies. Plus, you need plenty of fun things to do outside of work that appeal to a hip, youthful crowd. These 10 cities rank highest as the best cities for young professionals in America.
10. Boston, MA
Massachusetts’ capital city is one of the best cities on the East Coast for young people to live and work. With thriving industries in IT, tech, finance, insurance and healthcare, young professionals working or hoping to work in these fields have tons of options. It’s an especially good location for the healthcare field, as Boston is home to some of the best hospitals nationally and around the world.
Another big plus: Boston is the home of Harvard, MIT and other top universities. This gives young professionals the chance to pursue advanced degrees in their field or change career paths.
Boston’s city life is one of the most diverse and vibrant on the East Coast. The city is full of history, which you can experience in its architecture and museums. But it’s also fully in the present and looking to the future in giving its residents a good quality of life. In 2017, Boston was named one of the most innovative cities in the world, which is felt everywhere from its work and educational institutions to its urban planning and cultural offerings.
It’s also an extremely health-conscious city, with tons of parks, bike paths and pedestrian-friendly areas. It boasts of a renowned art, theater and live music scene, as well as great dining and nightlife. Neighborhoods like South End and Allston/Brighton offer affordable, trendy places to live.
9. Madison, WI
Once overlooked as young professionals flocked to major coastal metropolises, Midwestern cities like Madison are showing that they have a lot to offer ambitious young people. The University of Wisconsin-Madison has highly regarded tech and IT programs, fueling a citywide industry.
Alongside education, young professionals here have their choice of many interesting, cutting-edge industries like healthcare, energy, aerospace and agriculture. Madison’s proximity to Chicago and Milwaukee also allows young professionals to make connections and network with companies in larger cities while enjoying Madison’s more relaxed and affordable quality of life.
Outside of work, Madison bustles with the energy of a college town. Sports are huge here (Go Badgers!), with football, basketball, hockey and baseball. Be sure to watch all those games while enjoying a cold, locally-made beer. Alongside its love of brats and cheese curds, Madison is known for its craft brews.
To burn off all those good eats, hit the paths of Madison’s many parks, especially the scenic ones along the shores of Lake Mendota and Lake Monona. For the more artistically inclined, you can find live music, museums and art exhibitions in abundance.
8. Atlanta, GA
Pursuing a career in Atlanta is bound to set young professionals up for success in life. The city positively crackles with expectation and energy. People living here are all about big ideas and big dreams, setting the stage for innovation and collaboration. Healthcare and finance are major industries here. But it’s also a great spot for young professionals looking to break into communications, media, film and entertainment.
The young workforce can take advantage of local groups like the Young Professionals of Atlanta for guidance, networking and giving back to the community. The Hartsfield–Jackson Atlanta International Airport, which is a major hub, also allows for easy work travel.
Beyond that, Atlanta just knows how to have a good time. There’s always something going on, from a concert to a new restaurant to try. So, there’s always an incentive to go out. Live music is king here. Atlanta’s dominance in the hip hop, live music and entertainment scenes is undeniable. It has great sports teams like the Falcons, Hawks and World Champion Braves.
From southern comfort food like fried chicken and barbecue, Atlanta is all about the good eats. With its lush parks set against towering skyscrapers, it’s a great city to explore on foot. Finally, neighborhoods like Cabbagetown and Old Fourth Ward have affordable living close to work in the downtown area.
7. Austin, TX
Austin’s cultural scene is enough of a draw to get young people to move there. The city has seen tremendous growth over the past decade and for good reason. Austin is a town for creatives, from its live music to visual art to multi-discipline experimentation. Local museums, the University of Texas at Austin and the famous SXSW Festival foster a highly creative environment. And let us not forget how good the tacos are.
But it’s not all play, no work. By many metrics, Austin is one of the best cities for young professionals to learn skills, gain experience and develop their careers. It’s fast becoming a major center for tech, advanced manufacturing, digital media, start-ups and space technology. Even Tesla is transplanting its headquarters to Austin.
But for a town that’s so tech-focused, it’s still affordable with a rent-to-income ratio of about 10 percent. Young professionals can expect to earn high incomes here but will be shelling out less of their money for rent and cost of living. Austin’s population growth has been a cause for concern for its affordability, but there’s no denying it’s a great place to live as a young professional.
6. Minneapolis, MN
Alongside Madison, Minneapolis is another Midwestern city showing its chops. With a diverse job market, young professionals are here not only for work but also for the low cost of living and cultural landscape. The live music and nightlife scenes rival those of major coastal cities. And sports lovers enjoy games cheering on the Vikings and other local teams like the Minnesota Twins.
Healthcare, banking, finance, data centers and biosciences are just some of the fields young professionals can work in here. Young people hoping to go into the medical field should definitely have Minneapolis on their radar. Nearby Rochester is home to the internationally-renowned Mayo Center.
You can pursue higher education at local universities like the University of Minnesota. From top-tier career opportunities to a vibrant social scene, Minneapolis has everything young professionals need to launch their careers while enjoying their youth.
5. Washington, D.C.
If you’re a young professional looking to get into politics, there’s nowhere better than the nation’s capital. From internships to working in the offices of congresspeople, opportunities abound. And as politics revolve around connecting with people, networking is practically an art form here. At power lunches and events, young professionals can make valuable connections to parlay into prized job positions. But politics isn’t the only game in this town. Healthcare, communications, higher education and tech also have strong footholds here.
Apart from work, Washington, D.C., is a hit among young people for its nightlife, dining, arts and culture. Good public transit also allows for easy connection between neighborhoods and business districts. With D.C. having a high cost of living, this gives young professionals the chance to live more affordably outside the city center.
4. Denver, CO
The Mile High City also ranks very high on our list of the best cities for young professionals. For outdoor lovers, there’s nowhere better. The Rocky Mountains are right next door, with hiking, climbing and skiing. But there’s plenty of fun in town, as well, from dining to craft brews to cheering on the Denver Broncos. The nightlife here is hot.
When not out climbing peaks, young professionals can climb the ranks at work. Top industries in Denver include telecommunications, healthcare, financial services, IT and aerospace. Hip neighborhoods like Capitol Hill and Highland are centrally located, with easy access to downtown for work. An average commute of 25 minutes also means that living outside the city center isn’t a deal-breaker.
3. San Francisco, CA
The City by the Bay is a great place for young professionals to put down roots. This is especially true if they’re in the fields of tech, IT, software, digital and social media, international business and biotech. Thanks to its proximity to the tech hub of San Jose, San Francisco has become an outpost for innovative, forward-thinking young professionals all working on the next big thing.
It’s no secret that affordability is not San Francisco’s strongest suit. However, due to the in-demand careers and work opportunities present in the area, the median household income is $112,449. So, even with the high cost of living, it’s still possible to earn enough to enjoy a comfortable lifestyle. And most locals will say the high rents are the price you pay for living in such a dynamic place. With historic neighborhoods, parks, a robust performing arts scene and a food scene spanning cuisines from around the world, San Francisco is a great place for young professionals with active social lives.
2. Charleston, SC
The city of Charleston is known for its historic architecture, Southern cuisine and abundant history. But it’s fast getting a reputation as a great hub for young professionals. The city is home to major industries like aerospace, tech, defense and life sciences.
Housing here is also very affordable for renters. In popular neighborhoods like Harleston Village, North Charleston and James Island, the average rent is around $900 to $1,100. You can find higher education opportunities at the College of Charleston and the Medical University of South Carolina.
Charleston also boasts of a very lively social scene. That classic southern hospitality makes it a great place to go out and meet people. Young people living here have tons of activities to choose from in their free time. Charleston has a much-lauded dining scene, with tons of restaurants and cuisines to try.
The city also has a growing nightlife scene that will greatly appeal to the young crowd. Arts and culture lovers can get their fill at Charleston’s many museums and galleries. Live music is also getting a foothold here, offering something for the late-night crowd besides dancing and bars.
1. Seattle, WA
It’s called the Emerald City, but it’s taking home the gold as the best city for young professionals. Seattle is one of the West Coast’s top cities for industry and business. But it also provides unbeatable access to the great outdoors, art, culture, dining and live music. While Seattle is an expensive city, it has plenty of affordable neighborhoods that young professionals can call home.
Seattle is famously home to multiple Fortune 500 companies. Just to name a few, there’s Amazon, Starbucks and Microsoft. Many other household name companies are also based here, giving young professionals plenty of highly sought-after jobs to go after. The aerospace industry, tech and IT are also big players.
Beyond the competitive job market, young professionals in Seattle enjoy taking advantage of the city’s multicultural food scene, live music, theater and art. Heading out into the forests, waterways and mountains of Washington state is another popular way people living here unwind.
The top 50 cities for young professionals
Do the cities in the top 10 not have the right opportunities or connections you’re looking for? Craving a different type of scene? Don’t worry, there are plenty more options for great cities for young professionals.
The worst cities for young professionals
Not every city has the right tools for the job as one of the best cities for young professionals. Plenty of cities fall short due to factors like bad income-to-rent ratio, high rental rates and high unemployment rates among young people. These are the worst cities you can live in as a young professional.
Young professionals can have it all in these cities
Young people launching their careers want good opportunities. But they also want to enjoy the trappings of youth, like going out to parties or concerts. These cities provide the best of both worlds for young professionals.
Methodology
Cities were ranked based on a weighted scoring system using four broad categories: Demographics, Housing Costs to Income, Recreation and Community and Economics. Each category was weighted to account for 25 percent of the final score. Among the categories, features were weighted as follows:
Demographics: 25 points
Percent of the population age 25-34: 12.5 points
Percent of population with a bachelors degree or higher: 12.5 points
Housing Costs to Income: 25 points
Rent to income ratio: 25 points
Recreation and Community: 25 points
Bars and restaurants per capita: 6.25 points
Art/culture and nature/parks per capita: 6.25 points
Inbound migration, different state, 1 year: 6.25 points
Inbound migration, abroad, 1 year: 6.25 points
Economics: 25 points
Laborforce participation, Age 25-34: 8.33 points
The unemployment rate, Age 25-34: 8.33 points
Percent change in median income, 2015-2019, Age 25-44: 8.33 points
Data on population, educational attainment, migration, labor force participation, unemployment and median income are from the U.S. Census’ 2019 American Community Survey 1-year Estimates. Median income data from the U.S. Census’ 2015 American Community Survey 1-Year Estimates were used in calculating the percent change in median income.
Recreation data, including estimates of bars, restaurants, art and cultural institutions, and natural amenities are from commercially licensed business listings and are based on NAICS categories for Drinking Places (Alcoholic Beverages), Full-Service Restaurants, Independent Artists, Writers and Performers, and Nature Parks and Other Similar Institutions.
Cities with insufficient data were excluded.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
NEW YORK, Oct 19 (Reuters) – Relentless selling of U.S. government bonds has brought Treasury yields to their highest level in more than a decade and a half, roiling everything from stocks to the real estate market.
The yield on the benchmark 10 year Treasury – which moves inversely to prices – briefly hit 5% late Thursday, a level last seen in 2007. Expectations that the Federal Reserve will keep interest rates elevated and mounting U.S. fiscal concerns are among the factors driving the move.
Because the $25-trillion Treasury market is considered the bedrock of the global financial system, soaring yields on U.S. government bonds have had wide-ranging effects. The S&P 500 is down about 7% from its highs of the year, as the promise of guaranteed yields on U.S. government debt draws investors away from equities. Mortgage rates, meanwhile, stand at more than 20-year highs, weighing on real estate prices.
“Investors have to take a very hard look at risky assets,” said Gennadiy Goldberg, head of U.S. rates strategy at TD Securities in New York. “The longer we remain at higher interest rates, the more likely something is to break.”
Fed Chairman Jerome Powell on Thursday said monetary policy does not feel “too tight,” bolstering the case for those who believe interest rates are likely to stay elevated.
Powell also nodded to the “term premium” as a driver for yields. The term premium is the added compensation investors expect for owning longer-term debt and is measured using financial models. Its rise was recently cited by one Fed president as a reason why the Fed may have less need to raise rates.
Here is a look at some of the ways rising yields have reverberated throughout markets.
Higher Treasury yields can curb investors’ appetite for stocks and other risky assets by tightening financial conditions as they raise the cost of credit for companies and individuals.
Elon Musk warned that high interest rates could sap electric-vehicle demand, which knocked shares of the sector on Thursday. Tesla’s shares closed the day down 9.3%, as some analysts questioned whether the company can maintain the runaway growth that has for years set it apart from other automakers.
With investors gravitating to Treasuries, where some maturities currently offer far above 5% to investors holding the bonds to term, high-dividend paying stocks in sectors such as utilities and real estate have been among the worst hit.
The U.S. dollar has advanced an average of about 6.4% against its G10 peers since the rise in Treasury yields accelerated in mid-July. The dollar index, which measures the buck’s strength against six major currencies, stands near an 11-month high.
A stronger dollar helps tighten financial conditions and can hurt the balance sheets of U.S. exporters and multinationals. Globally, it complicates the efforts of other central banks to tamp down inflation by pushing down their currencies.
For weeks, traders have been watching for a possible intervention by Japanese officials to combat a sustained depreciation in the yen, down 12.5% against the dollar this year.
“The correlation of the USD with rates has been positive and strong during the current policy tightening cycle,” BofA Global Research strategist Athanasios Vamvakidis said in a note on Thursday.
The interest rate on the 30-year fixed-rate mortgage – the most popular U.S. home loan – has shot to the highest since 2000, hurting homebuilder confidence and pressuring mortgage applications.
In an otherwise resilient economy featuring a strong job market and robust consumer spending, the housing market has stood out as the sector most afflicted by the Fed’s aggressive actions to cool demand and undercut inflation.
U.S. existing home sales dropped to a 13-year low in September.
As Treasury yields surge, credit market spreads have widened with investors demanding a higher yield on riskier assets such as corporate bonds. Credit spreads blew out after a banking crisis this year, then they narrowed in subsequent months.
The rise in yields, however, has taken the ICE BofA High Yield Index (.MERH0A0) near a four-month high, adding to funding costs for prospective borrowers.
Volatility in U.S. stocks and bonds has bubbled up in recent weeks as expectations have shifted for Fed policy. Anticipation of a surge in U.S. government deficit spending and debt issuance to cover those expenditures has also unnerved investors.
The MOVE index (.MOVE), measuring expected volatility in U.S. Treasuries, is near its highest in more than four months. Volatility in equities has also picked up, taking the Cboe Volatility Index (.VIX) to a five-month peak.
Reporting by Saqib Iqbal Ahmed; Writing by Ira Iosebashvili; Editing by Stephen Coates
Our Standards: The Thomson Reuters Trust Principles.
Outside of buying a home, purchasing a vehicle can be one of your most costly expenses. Early this year, as the cost of new cars reached new heights, many drivers held off on signing on the dotted line.
But the industry is finally shifting as vehicle inventory stabilizes and manufacturers offer more incentives. Brian Moody, executive editor at Autotrader, says it’s good news for those looking to buy. Consider how the industry’s current state might make this fall season a fine time to finance a new set of wheels.
New vehicle prices are holding steady
The average price Americans paid for a new vehicle in August was almost flat compared to one year ago, according to data from Kelley Blue Book (KBB). It now stands at $48,451, an increase of less than $50 from last year. Growing vehicle inventory and incentives helped make prices more accessible.
Even more remarkably, new vehicle transaction costs are down 2.4 percent compared to January, which KBB called “the most significant decrease in the past decade.” But despite prices’ downward trend, high interest rates have made many hesitant to set out to the dealership. These rates offset any wins that a lower price tag carries.
“The other costs associated with buying a new car specifically are higher,” Moody says.
According to recent Bankrate data, new car buyers getting a 60-month car loan received an average interest rate of 7.51 percent in late September. Without a down payment, a rate like this can mean a monthly payment of up to $970 for the average new car.
Interestingly, though, higher interest rates have positively impacted the bottom line for car buyers, Moody explains.
“In a way, they’re playing to the consumer’s benefit because ultimately you have to pay what you have to pay, but it is helping the prices stay steady because the dealers and the people who are pricing these know they can’t just keep raising the price,” he proposes.
Dealerships know the challenges shoppers face and aim to avoid pricing out entire populations before arriving at the dealership. With this in mind, many dealers have adjusted by upping dealer incentives.
Increase in dealer incentives
A dealer incentive is a perk offered to buyers by the dealership. These can be cash rebates, lower rates or vehicle upgrades. Last year, incentives were low due to supply chain issues. With demand high and supply low, dealers had little reason to offer generous incentives.
But these buyer perks jumped for the eleventh consecutive month in August, KBB found. The average incentive package was 4.9 percent of the entire price, up 2.3 percent at the same time last year. But still, these incentives remain historically low.
For context, incentives back in August 2020 averaged 10.8 percent of the average transaction price (ATP). However, some vehicle sectors offer incentive rates close to pre-pandemic levels. Of the sectors with the highest incentives, the high-end luxury segment provided the most for its buyers, reaching 10.1 percent of ATP.
Vans, small and midsize pickup trucks and high-performance cars held the lowest available incentives in August.
A high down payment also helps to offset the price
Another way to save money on your monthly payment is to put down a large down payment — ideally, at least 20 percent. Calculate how much more money down can save you.
Available vehicle inventory has grown
The pandemic resulted in supply chain issues across industries, including the automotive sector.
That meant fewer new vehicles were produced, resulting in higher prices. Even those who could afford higher-priced vehicles could not find their desired car.
But there has finally been a shift in the market. Data from Cox Automotive in early September, ahead of the ongoing United Auto Workers strike, reported 2.06 million in total inventory, which has not happened since April 2021.
“There’s tons of supply versus, say, a year or so ago, when we were talking about not much inventory in terms of new cars, especially,” explains Moody. But now, he says, “There’s an abundant supply.”
On top of overall inventory growth, a larger variety of vehicle types has also positively shifted the market. The EV sector, for example, had vehicle availability above the industry average in early September, according to KBB. The sector boasted incentives averaging 8.1 percent of ATP.
Moody explains that an increase in electric car models leads to increased competition, which is favorable even for those not looking to drive green.
“That’s the story that I think people miss about electric cars. Everyone gets all hung up on, ‘Well, I don’t want to drive an electric car, and why are they forcing us,’” Moody quips.
But more choices mean more competition across automakers and thus more consumer benefits, Moody concludes.
Not all vehicles cost the same
For example, purchasing a compact car will save you additional money over a larger truck. Check out Bankrate’s best-value cars before shopping for the best deals.
How to save for future vehicle purchases
Although vehicle prices have remained steady, and the increase in inventory bodes well, prices are still very high. And growing inflation and moves made by the Federal Reserve will make financing your vehicle more expensive.
Consider the following tips to get the best deal on your next auto loan purchase.
Buy electric. While EVs tend to carry a higher initial cost, they can cost less throughout ownership. On top of this, August data showed a continued decline in electric vehicle prices, driven by Tesla’s price cuts.
Consider shopping with a credit union. With high interest rates, it is wise to compare multiple lender options. Check out credit unions, as they often offer lower rates than dealerships and online lenders.
Improve your credit. The stronger your credit score is, the more competitive your rates will be. Before applying for a loan, try improving your credit to secure the best rate.
Apply for loan preapproval. While not all lenders offer this perk, loan preapproval will give you a firm idea of the expected cost and leverage for negotiation.
Outside of these tips, Moody has straightforward advice for those who might purchase a car this year: “Just don’t overextend yourself.”
While purchasing a flashy luxury vehicle can be tempting, it is not worth the risk if it pushes your budget over the edge. Take the time to calculate the true cost of ownership, including any additional costs, and consider how your terms will impact your monthly payments.
Moody says a successful purchase requires three things. Buyers should be realistic about the price, look for the most attractive incentives and have a strong credit score.
With those in mind, Moody thinks drivers “can find a good deal and can potentially be paying less from here on out going forward.”
Lauren Gumport was en route to a vacation on the island of Chios, Greece, in July, where she was set to stay in an Airbnb for five nights with her best friend.
But upon her arrival in Athens to connect to her flight to Chios, she received a WhatsApp message from someone stating that their dad owned the Airbnb property, but that they managed it. The son said they’d be out of town — and that their dad didn’t speak English — but that Gumport would still be able to check in with the dad.
Gumport, who works for the travel insurance company Faye, is no stranger to stories of travel mishaps. She sensed something was off but forged ahead with the Chios flight. When she arrived at the meeting spot near the Airbnb, no one was there.
“It was hot and not in a touristy area, so it didn’t feel great,” she says. “We were exhausted from the flights and just wanted to drop our bags, so that was frustrating.”
She had an international cell phone plan, so after 15 minutes of waiting for the owner, she called Airbnb customer service. An hour later, an Airbnb customer service agent finally offered to rebook them elsewhere. But with no other suitable Airbnb listings, Gumport declined the offer. Airbnb then offered to pay for two nights at a hotel.
“Airbnb didn’t give any type of nightly cap on cost, and frankly the island didn’t have a ton of options,” she said. “We found a great hotel and sent Airbnb the receipt.”
The two-night hotel stay came out to $443.50, and Gumport received a reimbursement from Airbnb to her bank account in a few days. Airbnb also refunded the $434.22 cost of her original five-night reservation.
As for the other three nights they were supposed to spend in Chios? Gumport took the opportunity to check out another Greek island, where she booked a last-minute stay.
What happens if your host doesn’t show up?
Gumport contacted Airbnb as soon as she realized her host wasn’t there and says Airbnb appropriately compensated her for the inconvenience.
“Luckily, my friend and I have traveled so much that when things go wrong, we just quickly pivot and laugh it off,” she said. “We stayed two nights in the other hotel, had a great time, then hopped on a ferry to Samos, Greece, for the rest of our trip.”
But not all vacation rental companies have robust customer support, and not all will be as generous with compensation. Plus, not all travelers will be able to pivot like Gumport.
And it’s not just vacation rental companies, like Airbnb or Vrbo, where ghosting is a risk. It’s a challenge facing the ever-growing list of peer-to-peer travel platforms. That includes RV rental companies like Outdoorsy or RVshare, and rental car companies like Turo. There’s also a boat equivalent called GetMyBoat.
Each company has its own set of policies to mitigate mishaps. Some immediately rebook the closest alternative, which can often entail an upgrade. If the owner of the Toyota you booked through Turo doesn’t show up, the company might instead send a Tesla.
But even an upgraded Tesla might not come without some stress. Turo says you need to wait at least 30 minutes past the trip start time before you can contact customer support, according to a note on its help page. That’s 30 minutes you might be sitting on a curb in a foreign city, followed by the transport time hauling your bags to a different location once the company has found an alternative.
Also, the second option might not be exactly what you wanted. You may have to sacrifice features found in your initial vacation rental booking, like laundry or a kitchen, given the last-minute arrangement. Potential “upgrades” might not be much better, such as a larger car that just proves harder to park.
For what it’s worth, many sites that facilitate peer-to-peer rental services have increasingly cracked down on hosts who cancel reservations. In September 2023, vacation rental site Vrbo began instituting financial penalties for hosts. The amount of the fee is based on the overall cost of the listing, as well as how far out they cancel.
Have a plan in case you get ghosted
What if you make it to the check-in time and the host hasn’t canceled but also hasn’t materialized? Sometimes careful pre-trip research can’t prevent ghosting, but backup plans during the trip are critical.
Understand the booking company’s policies. For example, Airbnb promises to help rebook guests into a similar place if the host cancels, but the promise only applies to cancellations made by the host within 30 days of check-in. So, if the host cancels 31 days before Super Bowl Sunday for a home in the host city, good luck finding affordable alternative lodging.
Carefully read the reviews and only book listings that have plentiful, positive reviews. Previous guests might offer insights into the host’s reliability and help indicate which rentals to skip.
Have contact information handy for the host and customer support. Should you be abroad, consider purchasing an international phone plan or at least know where to find free Wi-Fi (such as train stations or cafes).
Research nearby alternatives, including other available listings. Be prepared to be flexible and change plans if necessary.
Take advantage of last-minute deals. Just as Gumport ferried to another Greek island for part of her stay, you could be similarly flexible. Hotels can often be cheaper when booked last minute anyway. Jamie Lane, chief economist at vacation rental data platform AirDNA, says the same holds true with lodging beyond hotels.
“Ask for last-minute deals,” Lane says. “Unbooked weeks or recent cancellations can lead to big discounts to fill open nights.”
This article was written by NerdWallet and was originally published by The Associated Press.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:
Most tech CEOs emphasize how their technology empowers, not replaces, humans. But Pavan Agarwal, CEO of Sun West Mortgage Company and the creator of the Angel Ai technology, has a different perspective, which he shares in this interview with HousingWire Editor in Chief Sarah Wheeler. This interview has been edited for length and clarity.
Sarah Wheeler:What do people in the mortgage industry not understand about AI?
Pavan Agarwal: I think the mortgage industry is captivated by ChatGPT. That’s a good thing: I love ChatGPT because it raised awareness. Before, when you said AI, people thought you were talking about futuristic stuff, pie in the sky. Then ChatGPT came out and people realized AI is real and it’s here today.
But the mortgage industry and the real estate industry have kind of equated AI with ChatGPT. So there’s this assumption that ChatGPT is cute, it’s nice — it’s helpful for a marketing team. But high value? No.
High value is what we’re doing with Angel Ai: really calculating income, really reviewing documents, really running through tens of thousands of pages of federal and agency regulations and finding the best path. The creation of ChatGPT is revolutionary from a tech standpoint, but its application has been incremental.
However, on our side, what we’ve developed is fundamentally disruptive. Because 99% of what is done by humans in the mortgage industry, it does automatically.
SW: At which points are humans involved in the mortgage process at Sun West?
PA: We have humans helping in three steps of the process. The first is our Angelistas — the humans who get on the phone and call consumers. The second is when documents are scanned and the data is scrubbed off the documents, we have humans double check it, to make sure there’s no mistakes. And then a third human layer is when the AI is analyzing the rule or analyzing the request, and its confidence level isn’t high enough to issue a final answer, then it automatically loops in a human to make the decision.
And that’s really important, because remember, I put my money behind Angel Ai, so if we let loans go through with a low confidence level, then I’ve got a big problem on my hands — I’m going to have lots of loans on my balance sheet and that’s not good for business.
Increasing the confidence level speaks to the speed that we’ve been solving this and getting better at it. And as you get more and more answers, less and less human review is needed. There’s a lot of intermediate steps for any request I put in AI — it doesn’t just say one answer, it makes a series of decisions along the way to finally get to that answer.
If any one of those decisions has a low confidence score, then a human has to be involved. But just looking at the process we have in place today, we’ve really reduced the amount of human touchpoints.
SW: Most other companies talk about leveraging automation or AI to enhance the work of humans, but it sounds like you have a different goal.
PA: The goal is complete robotic manufacturing. That’s how every other product that you use is manufactured, from your cell phone to your automobile. It’s like the new Tesla with the Giga Press: it’s just press one button and the car squeezes out. And AI can deliver that.
We have hardly any people, and the people we do have are massively scalable. We have people reviewing documents to make sure that the OCR is correct. How much training did that take versus the training to have an experienced underwriter? So when I say this is disruptive, this is why. Because, let’s say, even if my headcount is the same as the headcount of another mortgage company — it isn’t just about headcount, it’s the skill level of the people.
As an example, these are not real numbers, but if a company had 10 DE underwriters, and I have one DE underwriter and nine administrative people double-checking data, which one do you think is more scalable, more resilient and more profitable?
When mortgage rates finally drop and the mortgage business turns around, what happens when you need 10 underwriters again? Remember, back in COVID companies were paying huge signing bonuses to underwriters and mortgage loan processors? With our AI, when the next mortgage wave comes, we’ve got the solution. We basically have a Giga Press for mortgages: You can stamp out as many loans as you want.
SW: How do people in the mortgage industry react when you talk about manufacturing loans like this?
AP: People do get upset. But the median age of homebuyers is like 30 and the median age of loan officers is like 55. And loan officers are getting older every year while homebuyers are staying the same or getting younger, so the gap is expanding. And these young whippersnappers, they want everything fast and reliable. They just don’t understand why everything else in life works one way but not real estate. And this is the real market I’m after: the loan officers and industry professionals who understand that.
SW: So do you think there’s going to be a day when there will be no more loan officers?
PA: No, I think there will be a day when there will be no more loan officers the way they are today, and that is already here. Our loan officers spend very little time, if at all, in the manufacturing process and they spend all their time sourcing business.
SW: How does that change who you hire for your loan officers?
PA: Well the challenge here is that the last 10 years in this business were amazing and you didn’t really have to source. And most loan officers that are here today came into this over the last 10 years, so they’re not used to sourcing. Sourcing used to be normal! Loan officers didn’t want to get involved in the manufacturing — they wanted to source because that’s how they made money. We were a sourcing industry. Back then the manufacturing was done by hand by a team who supported the loan officers, but now we can do it with AI.
SW: You have this mortgage company, Sun West Mortgage Company, and you also have this tech component, Angel Ai. Which way is the future for you: mortgage or tech?
PA: Fundamentally, I’m a tech guy. In life, you have things that you need to do and then things that you want to do. And I’ve been able to thread this needle so beautifully that I can do both. I need to run a mortgage company and I want to build amazing technology that can help everyone. And I’ve been able to leverage the mortgage company to do that. Because it’s the best testing ground and development R&D ground.
SW: You developed Angel Ai for Sun West but now you’ve made it available to your competitors. How does that work?
PA: I don’t have to win by someone else losing — there is plenty of business out there, even in a market like this.
There’s definitely an advantage that we [Sun West] have, because we understand the tech at a level that no one else does. But there’s also a disadvantage relative to other lenders because we have a tech culture, so this is not the place for everyone.
For example, there are some brokers we just can’t work with because they refuse to chat with the AI, they want to talk to a person all the time. Of course, we have senior VPs who have decision authority that are happy to talk to you, but we’re not going to be there to visit you at your office at a moment’s notice. We’re not staffed to wine and dine you, romancing you like other account executives are doing.
SW: 10 years from now when we look back at this moment, do you think this will be the inflection point for AI?
PA: Yes, I think the combination of market conditions and AI tech, and then this generation gap in the originators versus customers — those three are a perfect storm. They are a forest fire and today’s redwoods are gonna get slashed and burned and new seedlings are going to be the next forest. And you can already see it — I’m talking to lenders, brokers, originators who right now have this new generation mindset. They understand what 20-somethings want, and they don’t want to talk to their bankers on the phone, and yet we see brokers who don’t want to talk to AI, they can’t do business unless they talk to someone. Yet their customers, that they want to win over, don’t want to talk to them that way.
The numbers to know about the world’s biggest cryptocurrency.
This article originally appeared on Finder.com and has been republished here with permission.
The first digital currency and the largest, Bitcoin makes up 39% of the total value of the biggest 250 cryptocurrency coins as of September 2022.
Bitcoin’s founding is the stuff of legend: It was created in 2009 under the alias Satoshi Nakamoto – an unknown entity who believes future currencies shouldn’t be controlled by a central government or agency.
The first Bitcoin hit the market in July 2010 at a cost of under $0.01. It took three years for the currency to reach more than $1,000. Since 2013, Bitcoin has smashed all records. It peaked at $69,045 back in November 2021. The current price of Bitcoin is around $22,259 — or 8.8% lower than what it was just one month ago. All prices are quoted in US dollars.
The price of Bitcoin has changed by -$1,963 over the past day, with yesterday’s price of about $31,818 and today’s price of $29,855. The number of Bitcoin currently in circulation is 19,055,843. While there can only be 21 million Bitcoin created, it’s estimated that this maximum won’t be reached within the next 100 years.
Bitcoin is by far the biggest cryptocurrency in terms of market capitalization — or total value in existence. Currently, $424 billion worth of Bitcoin is out in the wild. Bitcoin surpassed a market cap of $1 trillion for the first time in February 2021. Ethereum, the second most popular currency, has a market cap of $210 billion.
Some $36 billion worth of Bitcoin has been traded over the past 24 hours. The graph below depicts the volume of Bitcoin traded daily. This figure can be somewhat volatile, with $12 billion traded on one of its worst days and $72 billion traded on one of its best.
The price of Bitcoin can also be volatile. Elon Musk announced in February 2021 that Tesla had purchased $1.5 billion worth of Bitcoin and would be accepting the currency as payment, paving the way for larger companies to adopt Bitcoin and sending the price soaring. Musk reversed that announcement in May and declared that Tesla would no longer accept Bitcoin due to its high carbon footprint, leading to an immediate crash of the Bitcoin price to roughly where it was before his first tweet.
While you’ll find excellent guides covering how to invest in Bitcoin, as with any cryptocurrency, it’s wise to invest with caution.
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?
Table of Contents
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.
The Bottom Line – Making 9 Figures
Taking all of this into account, it is clear that those with a 9-figure income have access to exclusive and luxurious experiences, as well as the privacy and security often associated with great wealth. This level of influence can also be extremely powerful. Therefore, it should not be underestimated or overlooked.
Overall, 9 figures is an amazing achievement and one that requires hard work and dedication. It is often an indicator of success and can open up a world of new possibilities for those who have achieved it.
Regardless of your current financial status, never forget that anything is possible with determination and perseverance! With the right attitude and mindset, you, too, could one day reach 9 figures or more. Start planning today, and remember to take every opportunity that comes your way. With a bit of luck and the right attitude, success is just around the corner.
FAQs – Making 9 Figures
How many words are nine figures?
Nine figures is a term used to refer to incomes between $100,000,000 and $999,999,999. It does not refer to the number of words.
Does anyone make nine figures?
In the United States, a remarkably small number of individuals achieve the remarkable milestone of earning nine figures or more. According to a report by Market Watch, only 205 people in America earn an astonishing sum of over $50,000,000 in wages alone annually.
To put this into perspective, a nine-figure income would be twice the amount of $100,000,000! As a result, the exclusivity of this income bracket is amplified, leading to a limited number of individuals who can boast such astronomical earnings.
What do “figures” mean in money?
Figures is a term used in accounting and finance to refer to digits of numerical values. It does not refer to physical currency or coins. For example, if you have $50,000, five figures are present (50000). This can also apply to other forms of money, such as stocks, bonds, and investments.
What is a nine-figure job?
A nine-figure job is a term used to refer to the careers of those who have achieved the tremendous milestone of earning nine figures or more annually. This could include professionals from various industries such as tech, investment banking, and sports.
These individuals are typically highly successful in their fields and command higher salaries than other professionals due to their extensive experience and knowledge.
What’s the difference between a 9-figure salary and a 9-figure income?
A 9-figure salary is an annual income of $100,000,000 or more. A 9-figure income is a measure of all sources of income that a person has, including wages, investments, and other revenue streams like royalties. This means that a person can have a nine-figure income without having an extremely high salary.
For example, someone who earns a salary of $1,000,000 but has investments of $100,000,000 would have a 9-figure income. This demonstrates why it is important to consider all sources of income when assessing the overall financial health and status of an individual or family.
What is the difference between 9 figures and 8 figures?
Eight figures refer to financial values between $10,000,000 and $99,999,999. In contrast, 9 figures are incomes of $100,000,000 or more. This is an important distinction to make when discussing the wealth of individuals because it shows how much greater the income of a nine-figure earner is compared to someone with eight figures.
For example, someone who makes $100,000,000 in a year would have twice the earnings of someone who makes $50,000,000. This is why it is important to consider figures when discussing wealth and income, as they can provide valuable insight into the financial status of an individual or family.
Is 9 figures a lot of money?
Yes, 9 figures is a lot of money. It is an astronomical amount that few individuals ever reach. As such, it demonstrates the impressive achievements of those who have managed to achieve nine-figure incomes and provides insight into their level of success and financial status.
It’s 2021. A group of Redditors has inflated GameStop’s share price by 2,100% and investors have poured $280 million into BUZZ, an ETF based on social media hype.
Backed by the founder of Barstool Sports, BUZZ is currently outperforming the S&P 500.
What a time to be alive.
The market madness of early 2021 has given everyone from retail investors to the Chairman of the Fed plenty to think about. For investment firm VanEck, it highlighted a golden opportunity to resurrect a wacky idea from the mid-2010s: an ETF based not on rising price, but on hype.
The VanEck Vectors Social Sentiment ETF (BUZZ) is made up of 75 stocks chosen by their “social media sentiment,” i.e. their levels of buzz online. It’s a bit of a wild concept since investors don’t traditionally associate hashtags with a rise in share price. But if the GameStop explosion is any indication, hashtags matter now.
So how does BUZZ work? Why is it controversial? And why are ETFs in general considered a better long-term investment than individual stocks?
Let’s investigate BUZZ.
What’s Ahead:
What makes BUZZ such a unique ETF?
On paper, BUZZ looks like a pretty normal ETF. It consists of a healthy number of stocks (75) including many blue chips like Ford, Tesla, and Twitter. Plus, it has a high bar for entry: all stocks in BUZZ must have a market cap of at least $5 billion, so no volatile newcomers are welcome here.
If BUZZ’s appearance seems normal, it’s the way these stocks were chosen that’s so fascinating.
How ETFs are (typically) built
ETFs have themes that link the underlying securities together. The first ETF, built in 1993, was SPY, and was launched to reflect the overall performance of the S&P 500. An investment in SPY, therefore, is like an investment in the S&P 500 index itself.
Today, there are over 7,600 ETFs bundling commodities like gold or oil, sectors like IT and healthcare, and emerging markets like Africa and India.
While ETF themes can range from the obvious to the creative, all ETF managers follow one basic principle: to build a fund that will increase in value over time. Case in point, you can’t just make up an ETF and get it listed – you have to get it approved by the SEC and sell your underlying logic to investors.
That’s what makes BUZZ so unique and controversial: some investors think it’s based on nothing at all.
How BUZZ was built, and why it’s getting mixed reactions
The Van Eck Vectors Social Sentiment ETF (BUZZ) gets its 75 stocks from an algorithm called the Buzz NextGen AI U.S. Sentiment Leaders Index, which identifies companies getting “bullish social media sentiment.”
In short, it picks stocks based on rising popularity, not price.
Many investors aren’t too keen on BUZZ because they struggle to link social media mentions with share price. Earnings, growth potential, demand… these are factors that should indicate a rise in share price.
But Reddit mentions? Really?
Case in point, BUZZ isn’t the first hype-based ETF. The Sprott Buzz Social Media Insights ETF (BUZ) launched alongside the aforementioned AI index in 2015. But most agree that BUZ was just too ahead of its time. Due to a lack of investor interest, it closed.
Does that mean the naysayers are right? That social media mentions are a terrible predictor of a rise in share price?
Well, if BUZ had stayed open, it would’ve outperformed the S&P 500 in four of the last five calendar years.
BUZZ is not a “meme stock” ETF
Some in the media are quick to label BUZZ a “meme stock ETF” full of stocks that saw skyrocketing share prices thanks to the subreddit r/WallStreetBets. However, the two most notorious meme stocks, GameStop and AMC, are nowhere to be seen on BUZZ.
“This is not a Reddit meme stock ETF” says BUZZ originator Jamie Wise, as quoted in CNBC.
While GameStop and AMC support the logic behind BUZZ, that hype can drive share price, both stocks were way too extreme to be included. Among other reasons, they weren’t mentioned in enough places for a long enough period of time.
BUZZ isn’t trying to predict memes, but rather, find companies that might see a tick in share price due to positive social media sentiment. Hedge funds have been monitoring social media for years, but BUZZ represents the first time this intel is being shared with the people.
If learning about BUZZ has piqued your interest in ETF investing, here’s a quick refresher of the basics, and why, according to the experts, ETFs are often considered a better long-term investment than individual securities.
What is an ETF?
An ETF, or Exchange Traded Fund, is like a bundle of investments that you can buy and sell on an exchange. To illustrate, you can buy shares of BUZZ right now on Webull – for example – just like you’d buy shares of TSLA or GOOGL.
An ETF can include a mix of individual stocks, commodities, bonds, and other securities. And unlike mutual funds, ETFs can be traded all day, so their share prices constantly fluctuate.
ETFs offer a convenient way to invest in a broader concept, commodity, or even an entire sector
Let’s say you want to invest in the clean energy sector. You could go buy, say, 88 individual company stocks. It’ll just take hundreds of hours of research, 88 trades, and fees, and leave you with 88 tickers to track in your portfolio.
Or, you could just invest in a single clean energy ETF. That way, the research is already done for you, you make one trade, and you only have a single ticker to track in your brokerage app of choice.
ETFs have lower expense ratios
Expense ratios are a funds management costs, which are typically taken out of the fund’s assets.
Generally speaking, ETFs are passively managed and have significantly fewer operating expenses than something actively managed like a mutual fund. This means that ETF managers can afford to charge shareholders like you fewer fees (if any).
ETFs are more diverse and stable than individual securities
Because they represent bundles of securities, ETFs are naturally more diverse and stable than individual stocks. If the market is like a big, wide ocean, ETFs are like cargo ships. Sure, they can be a little slow, but they’re resilient to crashing waves and the occasional hurricane.
If you invest in a single stock and it tanks, you’re out of luck. But if you invest in a sector ETF and just one out of 108 stocks tanks, your investment will barely be affected. In fact, you might not even notice as the share price continues to rise with sector performance.
ETFs don’t always go up, of course, but their inherent diversity makes them a superior long-term investment than most individual securities.
Summary
BUZZ’s hype-based indexing logic is certainly avant-garde, but it still follows a traditional ETF philosophy: to provide a diverse, convenient, and stable pathway to long-term growth for investors.
Whether or not this ETF will continue to perform remains to be seen, and only time will tell!