Author: Jing Pan

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

Celebrity chef Gordon Ramsay is a culinary titan and a household name in the restaurant industry. With a global empire of 88 restaurants, earning a total of eight Michelin stars, Ramsay has cemented his legacy as one of the most successful chefs in the world. And his estimated net worth of $220 million also places him among the highest-earning figures in the business.

However, during an appearance on the First We Feast YouTube channel, Ramsay revealed a surprising insight about his industry: one group always holds the upper hand — landlords.

Host Sean Evans, curious about the inner workings of Ramsay’s restaurant empire, asked, “Is there a hidden cost in running a restaurant that most diners are unaware of?”

Without hesitation, Ramsay replied, “Yeah, it’s called rent and labor cost — two big key factors in running a successful business.”

He went on to elaborate on landlords’ unique position in the industry: “Landlords — they win either way. So the more successful you are, the more rent they ask for. The less successful you are, the more demanding they are after the rent.”

Do landlords ‘win either way’?

Ramsay’s blunt assessment highlights a critical dynamic in the restaurant business: the leverage landlords hold in commercial real estate. While restaurateurs may find themselves grappling with thin profit margins, rising labor costs, and fluctuating food prices, landlords maintain a consistent advantage — the rent is always due.

When restaurants thrive, they’re often eager to stay in their prime locations, giving landlords the upper hand to renegotiate higher rents. In some cases, landlords may include percentage rent agreements, where tenants pay a base rent plus a percentage of gross sales exceeding a certain threshold. Under this arrangement, landlords directly benefit from a tenant’s success, as higher sales lead to higher rent payments.

When a restaurant struggles and fails to pay its rent, the landlord’s income stream is also at risk. To mitigate losses, landlords often turn to legal remedies to recover unpaid rent. This may include seizing the tenant’s assets on the premises — a process known as distraint — or initiating court proceedings to claim the owed amounts. In cases of prolonged non-payment or other lease violations, landlords may want to terminate the lease to seek a more financially stable tenant.

Getting a piece of the action

If you’re interested in restaurant real estate, consider exploring names like Four Corners Property Trust (FCPT), a real estate investment trust (REIT) that specializes in owning and acquiring net-leased restaurant and retail properties.

But for those seeking more stability, there’s another food-related real estate segment that demands attention — necessity-based properties.

Think about your go-to supermarket — the one you visit every week. How long has it been in the same spot? Likely for years, if not decades. That consistency highlights the appeal of this sector.

Properties anchored by grocery stores often attract long-term tenants, creating more predictable and reliable cash flow for investors.

Once reserved for institutional and elite investors, this sector has become increasingly accessible to a broader audience. For instance, platforms like First National Realty Partners (FNRP) allow accredited investors with a mininum of $50,000 investment to own shares in grocery-anchored properties without the hassle of finding and managing deals themselves.

FNRP properties are leased to national brands like Whole Foods, CVS, Kroger, and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, investors enjoy stable cash flow without bearing the burden of tenant-related costs.

Beyond grocery stores, residential properties also provide peace of mind for investors seeking reliability. Just as people always need groceries regardless of the economy, they also need a place to live. That makes housing one of the most dependable and enduring sectors in real estate.

And you don’t need to buy a house to get started. Crowdfunding platforms like Arrived have simplified the process, enabling everyday investors to own shares in rental properties without the large down payments or management headaches typically associated with owning real estate.

With Arrived, you can invest in shares of rental homes with as little as $100 without worrying about mowing lawns, fixing leaky faucets, or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Shaquille O’Neal was long known for his dominance on the basketball court, earning $292 million as a player in the NBA. But his legacy off the court is equally remarkable, building on his fortune as a savvy investor while staying in the public eye as an analyst on TNT’s “Inside the NBA” broadcast.

His financial journey started with a costly lesson — he often recounts that he blew his first $1 million paycheck in one day on cars and jewelry before learning he had to pay taxes — yet he found motivation to clean up his act.

“I saw horror stories about how five years after professional athletes stop playing, they have nothing,” Shaq explained during an interview with social media personality James Dumoulin published Dec. 12. “I didn’t want to be part of the horror stories, so I had to teach myself.”

Being a professional athlete is a glamorous but short-lived career. According to research by RBC, athletes typically retire before the age of 30 — with an average retirement age of 28 for NBA players. Few become superstars with the earning potential and longevity of Shaq — who played 19 seasons in the league — while many others may not acquire his financial discipline.

Dumoulin pressed Shaq on how he managed to preserve his vast fortune. The basketball Hall of Famer didn’t hesitate to answer.

“I think for those who are not financially literate, learn this word: annuity,” he said.

The magic word

An annuity, in simple terms, is a financial product that provides a steady stream of income, often used for retirement or as a tool to safeguard wealth over time. It can be structured to pay out regularly for a set number of years or even for life, making it a powerful way to ensure financial stability.

While Shaq didn’t go into detail about his specific investments, his advice underscores the importance of financial literacy and the use of strategies that prioritize long-term security over short-term splurges. For professional athletes like Shaq, whose peak earning years can be short-lived, tools like annuities offer a way to convert substantial but finite earnings into a lasting income stream.

In fact, when it comes to financial discipline, Shaq shared a piece of advice he once received: “Save 75% and have fun with 25%.”

The save-and-invest mentality is what enabled him to build upon his fortune. He was an early investor in Google and invested in Ring before its acquisition by Amazon. He also operates a large portfolio of restaurant franchises.

For those without the benefit of an NBA-sized paycheck, saving three-quarters of your income might seem out of reach. However, the core lesson remains universal: whether you’re earning millions or living on a modest salary, knowing how to invest your money wisely — including the use of tools like annuities — can set the stage for long-term financial success.

Start small, build big

Many insurance companies offer annuity products that allow you to invest money upfront — either as a lump sum or through regular payments — in exchange for guaranteed income in the future. You can choose from different types, such as fixed annuities, which provide a guaranteed payout, or variable annuities, where returns are tied to market performance. The key is to find a product that aligns with your goals and risk tolerance, offering you the ability to build wealth steadily without requiring a large upfront investment.

For those looking to diversify, investing in dividend stocks is another way to generate passive income. Many blue-chip companies pay regular dividends — a part of their profits — to shareholders. Some of these companies even raise their payouts annually, making them an attractive option for investors seeking a reliable and growing stream of income in retirement.

Again, you don’t have to start big. One accessible way to start investing dividend stocks is through platforms like Acorns. Acorns makes it easy for anyone, even beginners, to grow their wealth by automatically investing spare change from everyday purchases.

Signing up for Acorns takes just minutes. Link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.

For those seeking a more customized experience, Acorns Gold allows for a mix of automated investments and individual stock selection, giving you the flexibility to tailor your strategy.

With Acorns, you can invest in a diversified portfolio with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

Passive income from real estate

Real estate is another compelling investment option that aligns well with Shaq’s emphasis on financial tools like annuities, thanks to its ability to generate consistent cash flow through rental income.

It can also serve as a hedge against inflation: when inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that can adjust for inflation.

And you don’t need millions to get started. Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can invest in shares of rental homes with as little as $100 without worrying about mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Shaquille O’Neal was long known for his dominance on the basketball court, earning $292 million as a player in the NBA. But his legacy off the court is equally remarkable, building on his fortune as a savvy investor while staying in the public eye as an analyst on TNT’s “Inside the NBA” broadcast.

His financial journey started with a costly lesson — he often recounts that he blew his first $1 million paycheck in one day on cars and jewelry before learning he had to pay taxes — yet he found motivation to clean up his act.

“I saw horror stories about how five years after professional athletes stop playing, they have nothing,” Shaq explained during an interview with social media personality James Dumoulin published Dec. 12. “I didn’t want to be part of the horror stories, so I had to teach myself.”

Being a professional athlete is a glamorous but short-lived career. According to research by RBC, athletes typically retire before the age of 30 — with an average retirement age of 28 for NBA players. Few become superstars with the earning potential and longevity of Shaq — who played 19 seasons in the league — while many others may not acquire his financial discipline.

Dumoulin pressed Shaq on how he managed to preserve his vast fortune. The basketball Hall of Famer didn’t hesitate to answer.

“I think for those who are not financially literate, learn this word: annuity,” he said.

The magic word

An annuity, in simple terms, is a financial product that provides a steady stream of income, often used for retirement or as a tool to safeguard wealth over time. It can be structured to pay out regularly for a set number of years or even for life, making it a powerful way to ensure financial stability.

While Shaq didn’t go into detail about his specific investments, his advice underscores the importance of financial literacy and the use of strategies that prioritize long-term security over short-term splurges. For professional athletes like Shaq, whose peak earning years can be short-lived, tools like annuities offer a way to convert substantial but finite earnings into a lasting income stream.

In fact, when it comes to financial discipline, Shaq shared a piece of advice he once received: “Save 75% and have fun with 25%.”

The save-and-invest mentality is what enabled him to build upon his fortune. He was an early investor in Google and invested in Ring before its acquisition by Amazon. He also operates a large portfolio of restaurant franchises.

For those without the benefit of an NBA-sized paycheck, saving three-quarters of your income might seem out of reach. However, the core lesson remains universal: whether you’re earning millions or living on a modest salary, knowing how to invest your money wisely — including the use of tools like annuities — can set the stage for long-term financial success.

Start small, build big

Many insurance companies offer annuity products that allow you to invest money upfront — either as a lump sum or through regular payments — in exchange for guaranteed income in the future. You can choose from different types, such as fixed annuities, which provide a guaranteed payout, or variable annuities, where returns are tied to market performance. The key is to find a product that aligns with your goals and risk tolerance, offering you the ability to build wealth steadily without requiring a large upfront investment.

For those looking to diversify, investing in dividend stocks is another way to generate passive income. Many blue-chip companies pay regular dividends — a part of their profits — to shareholders. Some of these companies even raise their payouts annually, making them an attractive option for investors seeking a reliable and growing stream of income in retirement.

Again, you don’t have to start big. One accessible way to start investing dividend stocks is through platforms like Acorns. Acorns makes it easy for anyone, even beginners, to grow their wealth by automatically investing spare change from everyday purchases.

Signing up for Acorns takes just minutes. Link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.

For those seeking a more customized experience, Acorns Gold allows for a mix of automated investments and individual stock selection, giving you the flexibility to tailor your strategy.

With Acorns, you can invest in a diversified portfolio with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

Passive income from real estate

Real estate is another compelling investment option that aligns well with Shaq’s emphasis on financial tools like annuities, thanks to its ability to generate consistent cash flow through rental income.

It can also serve as a hedge against inflation: when inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that can adjust for inflation.

And you don’t need millions to get started. Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can invest in shares of rental homes with as little as $100 without worrying about mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

As a co-founder of PayPal and the first outside investor in Facebook, Peter Thiel is widely recognized for his expertise in the tech world. But lately, the billionaire venture capitalist has been sounding the alarm on an entirely different sector: real estate.

During a recent interview with The Free Press, Thiel drew upon the insights of 19th-century economist Henry George to underscore the gravity of America’s real estate crisis.

“The basic Georgist obsession was real estate, and it was if you weren’t really careful, you would get runaway real estate prices, and the people who owned the real estate would make all the gains in a society,” Thiel said.

The core of the issue, Thiel explained, lies in the “extremely inelastic” nature of real estate, especially in regions with strict zoning laws.

“The dynamic ends up being that you add 10% to the population in a city, and maybe the house prices go up 50%, and maybe people’s salaries go up, but they don’t go up by 50%,” he said. “So the GDP grows, but it’s a giant windfall to the boomer homeowners and to the landlords, and it’s a massive hit to the lower middle class and to young people who can never get on the housing ladder.”

Thiel warned that this “Georgist real estate catastrophe” is playing out across many “Anglosphere countries,” including the U.S., Britain and Canada.

‘Incredible wealth transfer’

The surge in U.S. home prices has been nothing short of alarming. Over the past five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has climbed by over 50%.

This sharp rise in home prices creates significant challenges for prospective buyers, but renters aren’t immune to the impact either. It’s all part of the broader cost-of-living crisis gripping many Americans.

Thiel broke it down, stating, “There’s a way you could talk about inflation in terms of the prices of eggs or groceries, but that’s not that big a cost item, even for lower middle class people. The really big cost item is the rent.”

At its core, Thiel argued, the issue boils down to supply and demand.

“If you just add more people to the mix, and you’re not allowed to build new houses because of zoning laws, where it’s too expensive, where it’s too regulated and restricted, then the prices go up a lot,” he said. “And it’s this incredible wealth transfer from the young and the lower middle class to the upper middle class and the landlords and the old.”

Thiel isn’t the only one raising the alarm. Federal Reserve Chairman Jerome Powell has highlighted similar concerns.

“The real issue with housing is that we have had, and are on track to continue to have, not enough housing… It’s hard to find — to zone lots that are in places where people want to live… Where are we going to get the supply?” Powell said at a press conference in September.

The gap in the housing market is significant. A June Zillow analysis estimated the U.S. housing shortage to be 4.5 million homes as of 2022.

‘Get on the housing ladder’

Beyond soaring home prices, elevated mortgage rates are another major obstacle preventing many Americans from “getting on the housing ladder,” as Thiel described.

The good news? The U.S. Federal Reserve has been cutting interest rates, providing opportunities for potential buyers. Freddie Mac recommends shopping around by obtaining quotes from three to five lenders to secure the best mortgage rate possible.

To make this process easier, tools like the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders. By entering basic details — such as your zip code, property type, price range and annual income — you can view mortgage offers tailored to your needs and shop with confidence.

Also, these days, you don’t need to buy a house to start investing in real estate. Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can invest in shares of rental homes without worrying about mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

Another option is First National Realty Partners (FNRP), which targets necessity-based commercial real estate.

With a $50,000 minimum investment, the platform lets accredited investors own a share of high-quality properties leased by national brands like Whole Foods, CVS, Kroger and Walmart. Investors can enjoy the potential to collect stable, grocery store-anchored income every quarter.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

It’s no secret that President-elect Donald Trump has a fondness for tariffs — he once called it “the most beautiful word in the dictionary.” While some experts question their effectiveness, “Shark Tank” star Kevin O’Leary sees them as a crucial tool to reshape trade relations — particularly with China.

“China’s a different issue completely to Canada or any other country. Since they came into the World Trade Organization, they have broken the rules with every country, including the U.S.,” O’Leary said in a recent interview with Fox Business.

O’Leary shared his frustration with China, rooted in his business dealings: “I’m an individual who does business there. My businesses have been absolutely screwed. I’ve said it countless times. They don’t play by the rules. There’s nothing reciprocal in our relations.”

As a result, he advocates for strong measures. O’Leary emphasized that the only way to make it work with Chinese President Xi Jinping is to “inflict massive economic pain and risk on him by imposing tariffs on sectors where many Chinese people are employed.”

“The only way to put [Xi] at risk is to say, look, if you want to mess with the largest economy you trade with, then we’re going to force a lot of people that make yoga mats or electronics or whatever else it is to be unemployed in your cities, and they’ll be rioting in the streets, they won’t have any bread, and you will be out of power. That is the only way it’s going to work — so very selected high-impact weaponry like tariffs, but you’ve got to be hardcore,” he explained.

Trump has proposed implementing 25% tariffs on Mexico and Canada on his first day in office, along with an additional 10% tariff on goods from China.

America is ‘set up to grow’

According to O’Leary, implementing tough measures is essential to leveling the playing field with China.

“[Xi] only understands the stick. That’s all he understands. Any weakness at all, he plays off and he has done so for years. So I’m hoping this is the administration that fixes the problem. I have really been hurt by China, and there are millions of other businesses in America in the same boat I’m in,” he said.

To be sure, economists generally view tariffs as a double-edged sword. On one hand, they can protect domestic industries by making imported goods more expensive, giving local manufacturers a competitive edge. On the other hand, higher tariffs may result in increased costs for consumers, as companies pass on the extra expenses. This can lead to inflation, eroding household purchasing power and raising the cost of living.

A 2019 study by economists from the Federal Reserve Bank of New York, Princeton University, and Columbia University analyzed the effects of Trump’s tariffs through late 2018. Their findings were clear: “Our results imply that the tariff revenue the U.S. is now collecting is insufficient to compensate the losses being borne by the consumers of imports.”

Tariffs can also spark retaliation from trading partners, leading to trade wars that disrupt global supply chains and hinder economic growth. Ian Sheldon, a professor and the Andersons Chair of Agricultural Marketing, Trade and Policy at Ohio State University, underscored this risk during a conversation with Business Insider: “We have this integrated market in North America, and we’re already in a trade dispute with Mexico over genetically modified corn. It seems counterproductive to me to potentially exacerbate trade relations with one of our large trading partners. It doesn’t make any sense to me.”

Still, many business leaders remain optimistic about America’s future under Trump’s presidency — and O’Leary isn’t alone in his confidence. Amazon founder Jeff Bezos recently expressed his own optimism, calling America “the luckiest country in the world” and saying it is “so set up to grow.”

With the U.S. poised for potential growth and renewed strength, those who share this optimism might see opportunities to invest in America’s future. Here are some simple ways to get started.

Invest in American businesses

One of the simplest and most accessible ways to invest in America is through the stock market. When you buy stocks, you’re purchasing a share of ownership in businesses, giving you a stake in their profits and growth potential.

Legendary investor Warren Buffett has championed this strategy for decades, maintaining steadfast confidence in its long-term rewards.

“America has been a terrific country for investors. All they have needed to do is sit quietly, listening to no one,” Buffett wrote in his latest annual letter to Berkshire Hathaway shareholders. His unwavering faith in U.S. equities has been a cornerstone of his success.

“I can’t remember a period since March 11, 1942 — the date of my first stock purchase — that I have not had a majority of my net worth in equities, U.S.-based equities,” he wrote.

For those looking to follow in Buffett’s footsteps, he has consistently advocated for a simple but effective strategy which he referred to at Berkshire’s 2020 annual meeting: “In my view, for most people, the best thing to do is own the S&P 500 index fund.”

This straightforward approach gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.

One accessible way to start investing in the S&P 500 and other diversified portfolios is through platforms like Acorns. Acorns makes it easy for anyone, even beginners, to grow their wealth by automatically investing spare change from everyday purchases.

Signing up for Acorns takes just minutes. Link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.

For those seeking a more customized experience, Acorns Gold allows for a mix of automated investments and individual stock selection, giving you the flexibility to tailor your strategy.

With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

Building wealth through American real estate

Real estate has been another cornerstone of wealth creation in America, and the current housing supply gap highlights a unique opportunity for investors. According to a June analysis by Zillow, the U.S. housing shortage reached an estimated 4.5 million homes as of 2022.

Federal Reserve Chairman Jerome Powell underscored the severity of the crisis in a September press conference, stating, “The real issue with housing is that we have had, and are on track to continue to have, not enough housing.”

While high home prices and elevated mortgage rates have made buying a home more challenging, you don’t need to purchase a property outright to invest in U.S. real estate.

Crowdfunding platforms like Arrived have simplified the process, enabling everyday investors to own shares in rental properties without the large down payments or management headaches typically associated with owning real estate.

Through Arrived, you can invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

Another option is First National Realty Partners (FNRP), which targets necessity-based commercial real estate.

The platform lets accredited investors own a share of institutional-quality properties leased by national brands like Whole Foods, CVS, Kroger and Walmart. Investors can enjoy the potential to collect stable, grocery store-anchored income every quarter.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

As a real estate mogul, Grant Cardone has long championed the advantages of real estate investing. However, in recent years, Cardone has been quietly building his position in a completely different asset — one he believes holds tremendous potential for growth.

“I’ve been investing in Bitcoin (BTC) since 2013 and consistently adding to my position quietly, even as recently as last week and today when BTC hit $106,000,” he wrote in a Dec. 17 email to Moneywise.

Cardone’s conviction stems from his vision of Bitcoin’s future role in the global financial landscape.

“My belief is BTC will eventually replace gold, and possibly be on the U.S. balance sheet and at least adopted as an alternative to treasury bills, savings accounts, ETFs and diversified mutual funds,” he explained.

He further pointed out that this idea isn’t far-fetched, noting that the Bitcoin Policy Institute has drafted an Executive Order for a Strategic Bitcoin Reserve for President-elect Donald Trump.

Once considered a niche asset, Bitcoin has surged into the mainstream, with its price skyrocketing 120% in 2024 alone. The cryptocurrency has also caught the attention of policymakers, including Trump, who sees its strategic potential.

“We’re going to do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead,” Trump told CNBC’s Jim Cramer in December.

How high can it go?

One reason Bitcoin attracts crypto enthusiasts is its built-in scarcity, often earning it the nickname “digital gold.” Unlike fiat currencies, which can be printed in unlimited quantities by central banks, Bitcoin’s supply is capped at 21 million coins, a limit enforced by its underlying mathematical algorithms. This scarcity has fueled its reputation as a hedge against inflation.

Over the years, Bitcoin proponents have made bold predictions about its future price. In his email to Moneywise, Cardone shared his own projections for the cryptocurrency’s potential growth in the coming years.

“A conservative model project BTC prices of:

• $150,000 – 180,000 in 2025,
• $300,000 within 36 months,
• $600,000 at 60 months,
• and $1 million at 72 months,” he stated.

Reaching the $1 million mark would represent an extraordinary upside of approximately 843% from Bitcoin’s recent levels.

For those looking to hop on the Bitcoin bandwagon, platforms like Robinhood Crypto allow users to buy and sell crypto with as little as $1 without any trading fees or commissions.

Robinhood Crypto has the lowest trading cost on average in the U.S. — meaning you could get up to 3.6% more crypto compared to trading on other platforms.

Real estate isn’t forgotten

While Bitcoin’s ascent has drawn plenty of attention, its journey to current levels hasn’t been without significant pullbacks. To address this, Cardone is launching a hybrid fund that aims to balance the risks and rewards of cryptocurrency with the stability of real estate.

“Our conservative models, using historical performances, suggest we can use real estate to mitigate volatility by pairing BTC and institutional-quality, cash-flow-positive real estate together,” Cardone explained in his email. “We’re purchasing 10 institutional-grade properties in prime locations, all of which generate positive cash flow and will benefit from rental growth over the next 48 to 72 months.”

Cardone’s strategy involves using the dollar-cost averaging method to incorporate Bitcoin, funded by the monthly cash flow generated from these properties. He says this approach combines the best attributes of both asset classes: “time-tested, institutional-grade real estate and the high-growth potential of Bitcoin.”

Real estate remains a cornerstone of wealth building for many investors. Rental properties can not only provide a steady stream of passive income but also offer the potential for long-term appreciation and act as a tangible hedge against inflation, as property values often rise in tandem with the increasing costs of raw materials, labor and land.

Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential.

Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

Another option is First National Realty Partners (FNRP), which targets necessity-based commercial real estate.

The platform lets accredited investors own a share of institutional-quality properties leased by national brands like Whole Foods, CVS, Kroger and Walmart. Investors can enjoy the potential to collect stable, grocery store-anchored income every quarter.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

According to legendary investor Warren Buffett, there’s a very simple strategy with the potential to outperform even the most complex (and elite) hedge fund strategies — and it doesn’t cost an investor any extra time or money to use it.

Over the years, Buffett has repeatedly emphasized that any investor with little or no knowledge of the equity market can still grow a profitable portfolio using a passive investment strategy.

At one point Buffett — known as the Oracle of Omaha — was so confident in the use of index funds that he confidently wagered $1 million against a basket of hand-picked hedge fund equities chosen by Ted Seides from Protégé Partners. It was 2007 and Buffett chose the Vanguard 500 Index Fund Admiral Shares (VFIAX), a popular index fund among US investors. For the next 10 years, the earnings of the VFIAX and the basket of equities was closely monitored.

The outcome? Buffett triumphed — decisively.

Buffett shared the final scorecard of the bet in his 2017 shareholder letter. The index fund he selected delivered a total gain of 125.8% during the decade, while the five funds-of-funds as chosen by Seides delivered a total gain of 21.7%, 42.3%, 87.7%, 2.8% and 27.0%, respectively, during the same period.

What can investors learn from Warren Buffet’s $1 million wager?

What can investors and those saving for retirement take from Buffett’s wager? That it’s 100% achievable to build a winning investment portfolio as long as you focus on diversification and keeping fees low. Here are two strategies to put these simple investing techniques into practice.

Keep fees low

Fees should not be overlooked as this cost can eat into your returns. In an op-ed for Bloomberg titled “Why I Lost My Bet With Warren Buffett,” Seides agreed with Buffett on the subject of hedge funds’ management fees.

“He is correct that hedge-fund fees are high, and his reasoning is convincing. Fees matter in investing, no doubt about it,” he wrote.

Rather than focus on high-priced hedge funds or expensive mutual funds, investors can use an online brokerage account and select from dozens of low-cost exchange-traded funds (ETFs).

For instance, the Vanguard S&P 500 ETF (TSX:VOO), which follows the S&P 500, has a low expense ratio of 0.03%, which means for every $1,000 invested, you only pay $3 in fees. Similarly, the SPDR S&P 500 ETF Trust (TSX:SPY) tracks the same index and carries an expense ratio of 0.0945%.

Focus on diversification, not cherry-picking a winning stock

Passively managed funds, such as index funds, do not actively trade their basket of equities to try and beat the market. Instead, passive funds allow investors to hold a basket of funds — offering diversification — while allowing investors to capitalize on gains, when the market goes up (or suffer losses, if the market goes down).

These funds are good for investors for three reasons:

• Over time, the stock market consistently rises over time.
• It’s difficult (or nearly impossible) to predict which stocks will outperform and beat the market.
• Fees erode investor returns, so it’s best to keep them as low as possible.

Index funds to invest in as a Canadian investor

Online brokerage accounts offer access to an incredible selection of low-fee ETFs with low-fees and excellent track records. For instance, consider:

• Vanguard Canadian Short-Term Corp Bond IDX ETF (TSX:VSC)
• Vanguard Canada Inc S&P 500 Index EFT (TSX:VFV)
• Vanguard S&P 500 ETF (VOO)
• Vanguard FTSE All Cap Index ETF (TSX:VCN)
• iShares Core S&P 500 ETF (TSX:IVV)
• SPDR S&P 500 ETF Trust (TSX:SPY)
• Vanguard Total Stock Market ETF (TSX:VTI)

Where to buy index funds

To buy cost-effective ETFs, you’ll need an online brokerage account. Good options include:

• [CIBC Investor’s Edge]: Get 100 free trades when you open a CIBC Investor’s Edge account using promo code EDGE2425. Plus, get $200 or more cash back. Qualifying steps apply.
• Questrade: Move your existing accounts to Questrade, and get a rebate on the transfer fees charged for the switch.

Bottom line

To find out more about the best ETFs to buy in 2024, check out the Money.ca guide on Canadian ETFs. For investors who don’t want to go it alone, consider using a robo-advisor. To learn how robo-advisors work, read the Money.ca guide on the best Canadian robo-advisors.

As for earnings from that legendary $1 million bet? Buffett gave all proceeds to the Omaha, Nebraska-based charity, Girls Inc. Turns out that the biggest winner of Buffett’s bet were the girls.

Sources

1. Bloomberg: Why I lost my bet with Warren Buffett (May 3, 2017)

—with files from Romana King

This article Here’s why Warren Buffett favours simple investing techniques — and isn’t a fan of hedge funds and portfolio managers that promise outsized market gains originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

America is undeniably an economic powerhouse, but Tesla CEO Elon Musk — the richest person in the U.S. and the world — is sounding the alarm about its financial future.

“The country is going bankrupt. If we don’t take action, the dollar’s going to be worth nothing,” Musk warned during a recent appearance on The Joe Rogan Experience podcast.

Musk’s alarm centers on the ballooning U.S. national debt, which currently stands at $36.17 trillion. Managing this staggering debt comes with a hefty price: interest payments alone are a significant and growing strain on government finances.

“The interest payments, which are already 23% of all government income… is just going to pay interest right now, and that number is continually rising,” Musk explained. “So if we don’t do something, the entire government budget will be paying interest — there won’t be money for anything. No, there won’t be money for Social Security, there won’t be money for Medicare, nothing. That’s where we’re headed. That’s what bankruptcy means.”

The numbers paint a grim picture. In fiscal year 2024, interest on U.S. federal debt totaled $1.1265 trillion, while the federal government collected $4.92 trillion in revenue.

Musk stressed the urgency of the situation: “I’m looking at the numbers here and I’m like, if we don’t do something, America is toast.”

Can America print its way out?

Whether America can technically go bankrupt is a complicated question because the federal government cannot file for Chapter 11 bankruptcy reorganization. Instead, Congress would have to decide to let the federal government default on its debt, otherwise it can keep borrowing as long as there is demand from investors for government bonds.

“Technically speaking, the government can’t go bankrupt because it only promised to hand over a certain number of dollars; it didn’t promise what the value of those dollars would be. Because the value of the dollars was never specified, the government can print enough to render the dollars nearly worthless. To the rest of us, the effect is the same as the government going bankrupt,” wrote the co-hosts of podcast “Words & Numbers.”

In other words, printing money to stay afloat has significant consequences, as inflation erodes the purchasing power of the U.S. dollar. And while that’s a concern, say J.P. Morgan market analysts, they may not go so far as predicting the country is “toast.”

They say the likelihood of the country defaulting on its debt remains “extremely low.” This is because the U.S. benefits from a “unique position” of issuing debt in its own currency — which also happens to be the global reserve currency — along with a robust tax base that can help raise revenue through tax reforms if required.

The analysts point to Japan as an example. With a debt-to-GDP ratio of 228% — nearly twice the indebtedness of the U.S. — they argue it is indeed possible for a country to avoid a fiscal crisis despite a hefty burden of debt.

So whether the situation is as critical as Musk believes remains to be seen — but there’s still a way to make your own silver lining regardless. Throughout history, savvy investors have found ways to shield themselves from inflation’s bite. Musk himself highlighted this strategy in 2022, just before inflation hit a 40-year high in the U.S.

“It is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high,” he advised.

Let’s take a closer look at some of these assets.

‘Physical things like a home’

When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.

This combination makes real estate an attractive option for preserving and growing wealth when the U.S. dollar is losing its value.

Over the last five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has surged by more than 50%.

You can invest in real estate by purchasing rental properties and becoming a landlord. Alternatively, crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can invest in shares of rental homes with as little as $100 without worrying about mowing lawns, fixing leaky faucets, or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential.

Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

‘Stock in companies you think make good products’

Investing in stocks of companies that “make good products” has proven to be a successful strategy during the recent inflationary period, with Musk’s own Tesla (TSLA) serving as a standout example.

Tesla’s popular electric vehicles have enabled the company to dominate the growing EV market in the U.S. This success has translated into significant rewards for its shareholders: Tesla’s stock has skyrocketed by over 1,400% in the last five years.

Another example is Apple, a company whose flagship product, the iPhone, commands the largest share of the U.S. smartphone market. Apple’s ability to consistently deliver desirable products has paid off for investors as well. Over the past five years, Apple’s stock has surged by 250%.

That said, it’s important to remember that stocks are inherently volatile, and past performance is no guarantee of future results. However, today’s investors have access to a wealth of resources to help make informed decisions.

For example, platforms like Moby, founded by former hedge fund analysts, provide stock research and insights tailored for everyday investors.

Over the past four years, Moby’s stock picks have outperformed the S&P 500 by an average of 11.95%, helping more than 5 million users identify promising investments before they take off.

A timeless alternative

When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold.

The appeal of investing in gold is straightforward: the yellow metal can’t be printed in unlimited quantities by central banks like fiat money. And because its value isn’t tied to any one currency or economy, gold could provide protection during periods of economic uncertainty — or in the kind of dollar collapse scenario Musk has warned about.

As inflation erodes the purchasing power of paper currencies, gold’s appeal as a stable store of value often grows, driving up demand. In 2024, gold prices surged by 27%, surpassing $2,600 per ounce.

Schiff believes this is just the beginning. “If gold can go from $20 an ounce to $2,600 an ounce, it can go from $2,600 to $26,000, or even to $100,000. There’s no limit because, again, gold isn’t changing — it’s the value of the dollar that’s decreasing,” he recently stated.

At today’s prices, a climb to $100,000 would represent an astounding upside of over 3,700%.

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those seeking to ensure their retirement funds are well-shielded against economic uncertainties. Since you will be holding physical gold, you will be charged storage fees on top of other types of fees, so make sure to do your research and find the best deal for yourself.

With over 20 years of industry experience, Priority Gold has earned an A+ rating from the Better Business Bureau and a 5-star rating on TrustLink. The company promises transparent pricing, free shipping, and secure storage options for a hassle-free and trustworthy investment experience.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

Amazon founder and Washington Post owner Jeff Bezos, once a vocal critic of Donald Trump, appears to have shifted his tone significantly toward the president-elect. In the past, Bezos delivered sharp critiques of Trump, including a comment at a 2016 Vanity Fair Summit accusing him of behavior that “erodes our democracy around the edges.”

Now, however, Bezos seems much more optimistic — and even supportive.

Speaking at the New York Times DealBook Summit earlier this month, Bezos surprised many with his remarks.

“If we’re talking about Trump… I’m actually very optimistic this time around, I’m very hopeful,” he said. “He seems to have a lot of energy around reducing regulation, and if I can help him do that, I’m going to help him.”

Bezos’ willingness to collaborate with Trump reflects a broader concern about the regulatory hurdles facing the U.S. economy.

“We do have too much regulation in this country,” he said. “We are burdened by excessive permitting and regulation. You can’t build a bridge, and all these things — you know what they are. We see these examples all the time. We need to be able to build solar fields and everything else.”

Bezos is not alone in this critique. Tesla CEO Elon Musk has also voiced frustration with what he sees as overregulation. Last month, Musk wrote on X, “We finally have a mandate to delete the mountain of choking regulations that do not serve the greater good.”

‘Luckiest country in the world’

While highlighting concerns about regulation, Bezos also delivered an uplifting message about America’s inherent strengths.

“We are the luckiest country in the world. We have all these natural resources, including energy independence. We have the best risk capital system in the world by far,” he said.

Bezos’ statement highlights widely recognized advantages. The U.S. is the world’s largest economy by GDP and is endowed with abundant natural resources, including oil, gas, minerals and arable land. Beyond natural wealth, the country boasts strong financial markets and dominates in venture capital and private equity — critical drivers of innovation and entrepreneurship.

These strengths are underpinned by a culture of innovation, a robust legal framework for intellectual property and a history of technological leadership.

According to Bezos, the U.S. is “so set up to grow.” With Trump’s focus on deregulation, the country could regain a stronger growth trajectory.

“I’m very optimistic that President Trump is serious about this regulatory agenda and I think he has a good chance of succeeding,” he said.

Betting on America

America’s economic strength and growth potential make it a compelling destination for investment, and this optimism is shared by some of the most successful investors, including Warren Buffett.

“America has been a terrific country for investors. All they have needed to do is sit quietly, listening to no one,” Buffett wrote in his latest annual letter to Berkshire Hathaway shareholders. His unwavering faith in U.S. equities has been a cornerstone of his success.

“I can’t remember a period since March 11, 1942 — the date of my first stock purchase — that I have not had a majority of my net worth in equities, U.S.-based equities,” he wrote.

For those looking to follow in Buffett’s footsteps, he has often championed a simple but effective strategy which he referred to at Berkshire’s 2020 annual meeting: “In my view, for most people, the best thing to do is own the S&P 500 index fund.”

This straightforward approach gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.

One accessible way to start investing in the S&P 500 and other diversified portfolios is through platforms like Acorns. Acorns makes it easy for anyone, even beginners, to grow their wealth by automatically investing spare change from everyday purchases.

Signing up for Acorns takes just minutes. Link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.

For those seeking a more customized experience, Acorns Gold allows for a mix of automated investments and individual stock selection, giving you the flexibility to tailor your strategy.

With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

Building wealth through American real estate

Real estate has been another cornerstone of wealth creation in America, and the current housing supply gap highlights a unique opportunity for investors. According to a June analysis by Zillow, the U.S. housing shortage reached an estimated 4.5 million homes as of 2022.

Federal Reserve Chairman Jerome Powell underscored the severity of the crisis in a September press conference, stating, “The real issue with housing is that we have had, and are on track to continue to have, not enough housing.”

While high home prices and elevated mortgage rates have made buying a home more challenging, you don’t need to purchase a property outright to invest in U.S. real estate.

If you are looking for an easy way to invest in real estate, you can buy real-estate-backed bonds with Worthy Bonds that earn a fixed rate of 7% APY.

Worthy Bond proceeds are used to provide secured loans to American real estate projects, including affordable housing, which help strengthen local economies. So you can invest for your future and the future of American communities.

You can also set up a recurring investment plan through auto purchase, and Worthy Bonds will do the rest. What’s more, their roundup feature allows you to automatically invest spare change from everyday purchases.

Sign up today and get started with just $10.

However, residential real estate is not your only option. For accredited investors who want to make a larger allocation, First National Realty Partners (FNRP) targets necessity-based commercial real estate.

A recent report from Cushman & Wakefield commented that “for the first time in years, the retail market is at a point of being supply-constrained — at least for space in quality shopping centers."

Heightened demand plus insufficient supply could drive increased rents, and strong returns for those invested.

In September, the U.S. central bank started moving aggressively in this new direction and cut interest rates by 50 basis points (bps). Rates were cut again in November.

Commercial real estate typically appreciates in value when interest rates drop because buyers can afford to pay more for assets at lower borrowing costs — and First National Realty Partners (FNRP) is ideally situated to help investors take advantage of the current rate environment.

The platform allows accredited investors to own a share of institutional-quality properties leased by national brands like Whole Foods, CVS, Kroger and Walmart.

FNRP offers accredited investors access to these types of promising retail-anchored commercial real estate investments, while offering white-glove service which means the team does the deal leg work for you.

That way, investors can sit back and enjoy the potential to collect stable, grocery store-anchored income every quarter.

You can engage with experts, explore available deals and easily make an allocation, all in one personalized secure portal.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

The U.S. stock market has seen clear sailing in 2024, with the S&P 500 up an impressive 28% year-to-date, but Rich Dad, Poor Dad author Robert Kiyosaki sees dark clouds on the horizon — and when the storm hits, it’s the one generation that will feel the brunt of it.

“BOOMERS are SOL: When the stock market bursts … BOOMERS will be BIGGEST LOSERS,” Kiyosaki recently posted on X.com.

As a boomer himself, he acknowledged that his generation has been lucky. Data supports that claim, with reports showing that baby boomers are likely the wealthiest generation that has ever lived.

But that streak of fortune won’t last forever, he warned. “The biggest CRASH in history is coming. Please be proactive and get rich … before the BOOMER’s go BUST.”

So, how can people prepare? Kiyosaki offered some sage advice.

“If I were a child of a BOOMER … I would nudge my parents to sell their home, stocks, and bonds now … while prices are high … before the CRASH that is coming … and buy gold, silver, and Bitcoin now … before your BOOMER mom and dad move in with you … or expect you to pay for their rising healthcare or funeral costs.”

Precious metals

Kiyosaki’s recommendation to invest in silver and gold is hardly surprising — he has been a vocal proponent of precious metals for decades.

In October 2023, Kiyosaki predicted: “Gold will soon break through $2,100 and then take off. You will wish you had bought gold below $2,000. Next stop gold $3,700.”

That forecast has gained traction. Gold prices surged in 2024, now standing at about $2,700 per ounce.

Silver and gold have long been considered popular hedges against inflation. The reason is simple: central banks can’t print precious metals in unlimited quantities like fiat money.

Kiyosaki revealed that he has been purchasing gold and silver mines since 1985 and now he “literally owns tons of gold and silver.”

One way to invest in gold — which provides significant tax advantages — is with a gold IRA through American Hartford Gold. Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those seeking to ensure their retirement funds are well-shielded against economic uncertainties.

When you sign up with American Hartford Gold, you’ll be eligible for an offer to receive up to $15,000 in free silver, along with the assurance of the best pricing through their price match guarantee.

Real estate — revisited

“Your house is not an asset” is one of Kiyosaki’s most well-known ideas. “What is the definition of the word? If it puts money in my pocket, it’s an asset. If my house is taking money from my pocket, it’s a liability,” he explained.

The Rich Dad website expands on this concept, pointing out that owning the home you live in often takes money out of your pocket in the form of mortgage payments, utilities, taxes and maintenance costs.

Rental properties, however, are a different story.

According to the website, when purchased and managed wisely, rental properties can generate “significant, regular cash flow.” Additionally, increases in rents and property values over time can create “an important supplementary revenue stream.” While all investments carry some level of risk, cash-flowing properties are “generally less subject to the daily ups and downs” of the market compared to other types of investments.

Perhaps that’s why Kiyosaki once disclosed he owns 15,000 houses — strictly for investment purposes.

The good news is you don’t need to be as wealthy as Kiyosaki to get started in real estate investing. Crowdfunding platforms like Arrived have made it easier for average Americans to invest in rental properties without the need for a hefty down payment or the burden of property management.

With Arrived, you can invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

Bitcoin

Bitcoin has been another standout performer in 2024, rising approximately 128% year-to-date.

On November 29, Kiyosaki predicted, “Bitcoin will soon break $100,000.” On December 4, the cryptocurrency surpassed that milestone, grabbing headlines worldwide.

But Kiyosaki doesn’t see $100,000 as the end of the road. In a November 24 post, he posted a bold projection: “Q: what is the price of Bitcoin in 2025? A: $500,000 according to AI.” He did not specify which artificial intelligence model informed this prediction, but the ambitious target has certainly sparked interest.

One reason Bitcoin attracts crypto enthusiasts is its built-in scarcity, often likened to digital gold. Like gold, Bitcoin can’t be printed at will by central banks. Instead, Bitcoin volume is capped at 21 million by mathematical algorithms.

Kiyosaki has warned that once Bitcoin crosses $100,000, it will become “almost impossible for the poor and middle class to catch up.”

He attributes this to the dominance of ultra-rich entities — such as corporations, banks, and sovereign wealth funds — who will be the only ones able to acquire Bitcoin in significant amounts.

“The horse will be out of the barn and running,” he wrote, urging people to act now. “Don’t let the rich get richer … without you.”

For those looking to hop on the Bitcoin bandwagon, platforms like Robinhood Crypto allow users to buy and sell crypto with as little as $1 without any trading fees or commissions.

Robinhood Crypto has the lowest trading cost on average in the U.S. — meaning you could get up to 3.6% more crypto compared to trading on other platforms.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.