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Yahoo
a day ago
- Business
- Yahoo
Here are the 7 top habits of ‘quietly wealthy' Americans — how many do you follow?
The millionaire next door simply doesn't make headlines. He or she has probably built their fortune in a mundane and boring way and lives an equally understated lifestyle. These are the 'stealthy wealthy' and their habits hold powerful lessons for anyone serious about financial freedom. Here are the top seven habits you could replicate to boost your financial position or peace of mind. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it The cardinal rule of the stealthy wealthy is to conceal your fortune (or at least not flaunt it) so that you can enjoy it in complete privacy. That means no flashy toys or glamorous status symbols that call your wealth to attention. A quietly rich person isn't likely to buy a Gucci belt or Birkin handbag. In fact, it's the middle class consumers, presumably trying to signal their affluence, who account for more than half of all global luxury brand sales, according to the Wall Street Journal. Put simply, you don't need to prove your wealth to anyone if you already have plenty of it. Avoid the status symbols and shop based on value and durability instead. Contrary to the stereotype, millionaires and multimillionaires are not all driving around in Aston Martins or Bugattis. In fact, Dave Ramsey's survey of millionaires across America found that the top three most popular brands were Toyota, Honda, and Ford. Picking a practical and relatively inexpensive car is perhaps the best way to retain your fortune rather than burning it off through a sports car's tailpipe. Making decisions in the most tax-efficient way is how most wealthy people retain their fortune and continue to expand it. Although your tax situation might be very different from someone with a seven- or eight-figure net worth, that doesn't mean you can afford to neglect tax planning. Take a page out of the stealthy wealthy playbook and hire the best accountants and tax planners to help you minimize your liabilities. Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings. A survey by Northwestern Mutual found that a whopping 84% of wealthy individuals had a financial plan, compared to just 52% for the general public. In other words, rich people are simply more intentional with their saving and spending. Adopting this proactive approach means telling your money what to do instead of helplessly reacting to the amount of money left in your account after you're done spending. Start with a budget and update it frequently as you make progress on your financial journey. Stealth wealth is rooted in a deep respect for privacy. By keeping your finances discreet, you not only protect yourself from fraud and financial crimes, but also improve your chances of securing better deals and avoiding tension in personal relationships because 'you can afford it.' The stealthy wealthy, according to the Wall Street Journal, were most likely to make their fortunes in relatively overlooked and mundane niches of the economy. Think cup holder manufacturers, commercial carpet cleaning or industrial appliance maintenance. Put simply, most successful entrepreneurs and investors are not chasing the latest hype cycle and are instead focused on lucrative, always-on industries with sparse competition. If you're trying to build wealth too, stop trying to build a billion-dollar AI tech startup and focus on something more practical and mundane. A single source of income, perhaps from your full-time job, is rarely sufficient to build wealth — especially these days. To reach the top you need a diversified pool of multiple income sources. Consider a side gig to boost your income and invest in passive income opportunities such as real estate or dividend stocks to get your financial goals faster. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fox News
2 days ago
- Business
- Fox News
Business Rundown: Next-Gen Financial Freedom
From high schoolers who've never learned basic compound interest to retirees unsure how to manage a 401(k)–study after study shows that Americans today are flying blind when it comes to money. FOX Business correspondent Lydia Hu speaks with Gerri Willis to preview some key lessons from her FOX Business In Depth Special, 'Course Correction: Next-Gen Financial Freedom,' airing this Wednesday, July 16th at 8 PM ET. Photo Credit: AP Learn more about your ad choices. Visit
Yahoo
3 days ago
- Business
- Yahoo
Here's the net worth you need to be in the top 10% of Americans — why it's a lot higher than you might think
One of the lesser-known rules of personal finance is that wealth is relative. A net worth of $500,000 might be a fortune in some countries and barely enough in others. That's why tracking your net worth against the national average and different percentiles can give you a clearer picture of your progress toward financial freedom. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it With that in mind, here's the latest available government data on how much wealth it takes to be in the top 10% of all Americans. The Federal Reserve is arguably the best source of data on national net worth. It has unmatched insight into how Americans earn, spend, save, invest and borrow. According to a Washington Post analysis of the Federal Reserve's 2022 Survey of Consumer Finances, the median American family has a net worth of just $192,900. If your household has more than that, you're doing better than half of the country. If your net worth is above $1,063,700, you're wealthier than the average American. This number is much higher than the median number because it is skewed by ultra-wealthy individuals like Jeff Bezos and Mark Zuckerberg. Still, it's a useful benchmark — being a millionaire or billionaire in America puts you ahead of most. To break into the top 10%, though, you'll need a net worth of at least $2 million, according to the 2022 survey. That means only 1 in 10 American households has a net worth above that threshold. In other words, if you're a multimillionaire, you can safely consider yourself among the affluent. Your family likely enjoys access to better housing, education than most. That said, 2022 was a while ago, and this data is likely outdated. If you're trying to crack the top 10% in 2025 or beyond, you might need to aim a little higher than $2 million. Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings. Every year, America's wealthiest people tend to get even richer. At the same time, the cost of living keeps rising. Since 2022, the S&P 500 has jumped roughly 64%, boosting the portfolios of many affluent families and potentially raising the bar for the top 10%. Meanwhile, consumer price inflation (CPI) has averaged about 3.25% annually since 2022, according to SmartAsset. This means cumulative inflation is around 10% over the past three years; your dollar buys 10% less than it did then. Taking all of this into account, it's safe to estimate that the current minimum net worth for joining the top 10% sits closer to $2.2 million. Reaching that milestone may take a lifetime of exceptional earnings, diligent saving, savvy investments, successful business ventures or even a lucky inheritance. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 days ago
- Business
- Yahoo
How one millennial played the stock market to quit his white-collar job and retire in his 40s
William Shippey retired early after he began day trading with an inheritance. The 44-year-old said he deployed several strategies to amass around $800,000 in wealth. He hasn't worked in two years and says he plans to never work again, beyond some passion projects. William Shippey, 44, hasn't worked in about two years. The former bank analyst says he's confident he'll probably never have to work again, apart from maybe on some side projects he'll consider picking up in the future to pass his free time. Beyond checking the stock market in the morning — and occasionally, making a trade or two — he describes his life as largely untethered from adult responsibilities, with most of his waking hours spent working in his yard. Shippey has around $800,000 in his brokerage account and said he expected to make around $7,000 this month in investment dividends, according to financial statements and screenshots of his brokerage account shared with Business Insider. Besides a Tesla he purchased in 2023, Shippey says he and his wife live pretty frugally, which also helps add to their sense of financial security. The couple lives child-free and rent-free in a garage apartment in South Carolina, which they secured through a family connection. Each month, he withdraws around $3,500 from his investment portfolio. He hands $3,000 to his wife to handle bills, like their health insurance. The remainder is fun money he can spend on his hobbies. "I have no rent. I have no mortgage. I don't have kids," Shippey told BI in an interview. "For all intents and purposes, I'm retired." Shippey is part of a tiny group of day traders that have actually made money over time. He's among the wave of Gen Z and millennials who flooded the market during the pandemic stock boom, many of whom were flush with pandemic stimulus and had plentiful free time amid lockdowns and work from home. But, unlike the majority of retail traders, Shippey's trades have been wildly successful. One 2020 study found that 97% of investors who traded for more than 300 days lost money, while less than 1% earned $54 or more a day. Shippey says he first opened up a Robinhood account and began trading in 2022, around the time r/WallStreetBets, Roaring Kitty, and GameStop kicked off the meme stock boom. He funded his account with around $20,000 in spare cash and tried his hand at trading options and swing trading key stocks. Besides an undergraduate accounting degree and some time working in commercial credit analysis at banks, his knowledge of markets is self-taught, he said. In 2023, Shippey's investments got an unexpected boost from an inheritance his mother left him, which included her life savings as well as his father's, who died in 2009. He quit his job at the time to sort out family affairs and sell his mother's home. In between the chaos, he sowed around $400,000 into his brokerage account to start trading on a wider scale. That's when Shippey says his luck really took off. In 2024, the S&P 500 rallied more than 20%, and Shippey made around $400,000 in profit, his brokerage statement shows. He attributes his profits to deploying a few well-timed trades at various points in his investing journey. Shippey says he closely followed Keith Gill, the Reddit user known as "Roaring Kitty" and closely documented his purchases of GameStop during the meme stock frenzy. Some of Gill's social media posts included the strike price of his calls, which is the price at which the contract gives the trader the option to buy the underlying asset. Shippey, who knew Gill had a cult following among retail traders, saw an opportunity. When Gill purchased call options on GameStop, Shippey purchased the same ones, but with a strike price $1 below Gill's. That made him a "boatload" of money, he said, as investors were still willing to pile into the trade so long as Gill still held the call. "I would not necessarily call it gambling," he said, pointing to the retail options investors who jumped into the market during the pandemic. "Those are the gamblers. They're taking very big risks, and I'm trying to buy a slice of risk and then sell all the risk beyond that to those guys." When Shippey was more actively trading, he focused on a handful of large-cap names he believed in — stocks like Amazon, Nvidia, Microsoft, Occidental Petroleum, and Walmart. GameStop was the only meme stock he ever dabbled in, he says, which he only traded due to Gill publishing his strike price online. Shippey also said he focused on diversifying his options trading portfolio and purchasing investments at strategic moments. Around the time Elon Musk renewed his fight with Donald Trump in June, he purchased around 200 shares of Tesla, waited for the stock to go up by several dollars, and sold his position. He repeated that several times and made around $1,200 in profit by the closing bell. There's one thing Shippey now favors above all else: stocks that pay a dividend. That's partly due to fears for what could happen to markets and the economy as a result of President Donald Trump's tariffs. In Shippey's view, the US could enter a "substantial" recession in the coming year, and he's looking to wait out the volatility in stocks. Shippey now rarely trades. Around Liberation Day, he sold most of his portfolio and plowed the majority of his wealth in the iShares 20+ Year Treasury Bond ETF, from which he expects a $7,000 dividend this month, he told BI. Shippey predicts the ETF could rally around 15%, mostly due to the economy being in a "very iffy situation." Shippey says he's enjoying his life now, especially since he doesn't have a boss. Prior to becoming a day trader, he wore many hats, from working as a pizza maker at Papa John's, to an analyst at several financial firms, to a crew member at Home Depot. He stocked medical supplies at a hospital, and, most recently, he worked in the warehouse of a beer company. "I've had bosses who were saints, and I've had other bosses that were completely just awful people. And no matter how you look at all that, if you didn't have to put yourself through that and you go on with your life and do something that you find fulfilling, would you do that instead?" The stress of trading does get to him at times, particularly on big days when the market is down. On the day he spoke to Business Insider, his portfolio lost $15,000 amid a broader market sell-off. But, between his large portfolio and no-frills lifestyle, he says he's able to stomach the chaos most days and feel financially stable. "It'd be great to make more money. I would love to make more money. That would just make you that much more comfortable. But at the same time, if I go sideways from here to the end of my life, I'll be okay." Do you have a story to share about day trading, quitting work, or retirement? Contact this reporter at jsor@ Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Here are the 7 top habits of ‘quietly wealthy' Americans — how many do you follow?
The millionaire next door simply doesn't make headlines. He or she has probably built their fortune in a mundane and boring way and lives an equally understated lifestyle. These are the 'stealthy wealthy' and their habits hold powerful lessons for anyone serious about financial freedom. Here are the top seven habits you could replicate to boost your financial position or peace of mind. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it The cardinal rule of the stealthy wealthy is to conceal your fortune (or at least not flaunt it) so that you can enjoy it in complete privacy. That means no flashy toys or glamorous status symbols that call your wealth to attention. A quietly rich person isn't likely to buy a Gucci belt or Birkin handbag. In fact, it's the middle class consumers, presumably trying to signal their affluence, who account for more than half of all global luxury brand sales, according to the Wall Street Journal. Put simply, you don't need to prove your wealth to anyone if you already have plenty of it. Avoid the status symbols and shop based on value and durability instead. Contrary to the stereotype, millionaires and multimillionaires are not all driving around in Aston Martins or Bugattis. In fact, Dave Ramsey's survey of millionaires across America found that the top three most popular brands were Toyota, Honda, and Ford. Picking a practical and relatively inexpensive car is perhaps the best way to retain your fortune rather than burning it off through a sports car's tailpipe. Making decisions in the most tax-efficient way is how most wealthy people retain their fortune and continue to expand it. Although your tax situation might be very different from someone with a seven- or eight-figure net worth, that doesn't mean you can afford to neglect tax planning. Take a page out of the stealthy wealthy playbook and hire the best accountants and tax planners to help you minimize your liabilities. Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings. A survey by Northwestern Mutual found that a whopping 84% of wealthy individuals had a financial plan, compared to just 52% for the general public. In other words, rich people are simply more intentional with their saving and spending. Adopting this proactive approach means telling your money what to do instead of helplessly reacting to the amount of money left in your account after you're done spending. Start with a budget and update it frequently as you make progress on your financial journey. Stealth wealth is rooted in a deep respect for privacy. By keeping your finances discreet, you not only protect yourself from fraud and financial crimes, but also improve your chances of securing better deals and avoiding tension in personal relationships because 'you can afford it.' The stealthy wealthy, according to the Wall Street Journal, were most likely to make their fortunes in relatively overlooked and mundane niches of the economy. Think cup holder manufacturers, commercial carpet cleaning or industrial appliance maintenance. Put simply, most successful entrepreneurs and investors are not chasing the latest hype cycle and are instead focused on lucrative, always-on industries with sparse competition. If you're trying to build wealth too, stop trying to build a billion-dollar AI tech startup and focus on something more practical and mundane. A single source of income, perhaps from your full-time job, is rarely sufficient to build wealth — especially these days. To reach the top you need a diversified pool of multiple income sources. Consider a side gig to boost your income and invest in passive income opportunities such as real estate or dividend stocks to get your financial goals faster. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
