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.

Legendary investor Warren Buffett recently wrote a surprise letter to shareholders of his company, Berkshire Hathaway.

In the letter, Buffett announced plans to convert 1,600 of his Berkshire Class A shares into 2.4 million Class B shares. These shares, valued at approximately $1.1 billion based on current market prices, will be given to his four family foundations: 1,500,000 shares to The Susan Thompson Buffett Foundation and 300,000 shares each to The Sherwood Foundation, The Howard G. Buffett Foundation, and the NoVo Foundation.

Despite a staggering net worth of $143.3 billion, placing him among the wealthiest individuals globally, Buffett reiterated that he has “never wished to create a dynasty or pursue any plan that extended beyond the children.”

With this latest gift, Buffett has now given away more than half of his Berkshire fortune. “The gifts I am making today reduce my holdings of Berkshire Hathaway Class A shares to 206,363, a 56.6% decrease since my 2006 pledge,” he wrote.

Buffett said that he hopes his three children, who are now 71, 69 and 66, can disburse all of his assets. He noted that all actions taken by the foundation overseeing his wealth would require a unanimous vote by his children.

Buffett has also designated three potential successor trustees, who are “somewhat younger” than his children, acknowledging the possibility that his children may not be able to fully deploy his vast fortune within their lifetimes.

‘Suggestion for all parents’

In addition to outlining his philanthropic plans, Buffett offered parenting advice about handling finances — applicable to families of any wealth level.

“I have one further suggestion for all parents, whether they are of modest or staggering wealth. When your children are mature, have them read your will before you sign it,” he wrote.

The reasoning, he explained, is to ensure that each child understands the logic behind your decisions and the responsibilities they will inherit after your passing. By fostering transparency, parents can minimize potential misunderstandings or conflicts down the road.

“You don’t want your children asking ‘Why?’ in respect to testamentary decisions when you are no longer able to respond,” he cautioned.

Buffett further advised parents to remain open to feedback from their children, suggesting that they “adopt those [suggestions] found sensible.” Reflecting on his own experience, he shared that he has often adopted his children’s suggestions over the years.

Buffett also highlighted the potential risks of poor estate planning.

“Over the years, Charlie and I saw many families driven apart after the posthumous dictates of the will left beneficiaries confused and sometimes angry. Jealousies, along with actual or imagined slights during childhood, became magnified, particularly when sons were favored over daughters, either in monetary ways or by positions of importance,” Buffett wrote.

Following Buffett’s advice has never been easier in today’s digital age. Platforms like LegalZoom have made legal services accessible and affordable, enabling individuals to create essential documents like wills, living trusts, and comprehensive estate plans with support from licensed attorneys.

LegalZoom’s user-friendly tools allow you to customize your estate plan to meet your unique needs, ensuring your assets are distributed as intended and reducing the risk of disputes. A basic will starts at just $99.

With a 4.3 rating on TrustPilot, LegalZoom can give you peace of mind knowing that your legal documents will be filed correctly and accepted in your state.

If you aren’t sure where to begin, you can also call LegalZoom for free to figure out exactly what you need and how to get started.

‘The best thing to do’

Buffett built his wealth by investing in winning companies. While he’s legendary at picking stocks, he’s an even bigger advocate for a simpler, tried-and-true strategy: investing in an S&P 500 index fund.

“In my view, for most people, the best thing to do is own the S&P 500 index fund,” he famously stated. 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.

Buffett’s deep belief in this strategy is evident in his posthumous instructions: he has directed that 90% of his wife’s inheritance be invested in “a very low-cost S&P 500 index fund” after his passing.

The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.

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. 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.

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.

Earl Crawley, fondly known as “Mr. Earl,” spent 44 years working as a parking lot attendant in Baltimore, earning no more than $12 an hour or $20,000 a year. Yet, against all odds, he built an investment portfolio worth $500,000.

Crawley’s extraordinary story caught the attention of the PBS show MoneyTrack back in 2007, where he shared his philosophy: “Stop working so hard and let the money work for you.”

His secret? A simple but powerful strategy: Crawley invested in shares of dividend-paying companies, such as Coca-Cola. And rather than spending the dividends, he reinvested them, allowing his investments to grow over time.

“Instead of taking the dividends and parking it, let it reinvest itself and increase my shares. The more shares I had, the more dividends I had, eventually the more money I have down the road,” he explained.

Crawley was able to accomplish this feat thanks to his sharp listening skills, which he’d honed in childhood.

“In school I was considered a slow learner — dyslexic, it’s called now. My true gift from God is my ability to listen, and that’s how I’m able to ask questions and use tips from the brokers, financial planners and bank customers I see every day,” he said.

Nickels and dimes

Without a high-paying job, and with a family to support, Crawley couldn’t make large investments. So, he started small and stayed disciplined with his budgeting.

“I did it with good old-fashioned nickels and dimes. My mother taught me how to budget, which made me appreciate how a little money can grow,” he told Kiplinger.

Crawley explained that he also saved whatever he could from odd jobs, such as mowing lawns and washing windows — all on top of his day job.

Dividend investing has long been a strategy embraced by investors both large and small. Even legendary investor Warren Buffett recognizes its potential: Buffett’s company Berkshire Hathaway now collects over $700 million a year in dividends from Coca-Cola — one of Crawley’s favorite dividend-paying stocks.

And if the dividends are reinvested, they can harness the power of compounding, creating a snowball effect: each dividend payment buys more shares, which in turn produces even more dividends. Over time, this cycle can significantly amplify the growth of a portfolio, transforming small, consistent contributions into substantial wealth.

If picking individual stocks isn’t your preference, consider a simpler, tried-and-true strategy championed by Warren Buffett: investing in an S&P 500 index fund.

“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated. 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.

Buffett believes so strongly in this strategy that he has instructed 90% of his wife’s inheritance be invested in “a very low-cost S&P 500 index fund” after he dies.

The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change. Acorns can also automatically reinvest dividends, allowing you to harness the power of compounding — just like Crawley did.

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. 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.

Another path from rags to riches

Stocks aren’t the only asset class that has propelled everyday Americans to wealth — real estate has long been another powerful tool for building financial success.

Like dividend stocks, real estate offers opportunities to generate consistent cash flow through rental income while building equity over time through property appreciation.

It’s also a space where inspiring rags-to-riches stories emerge. Take real estate mogul and YouTube personality Ben Mallah, for example. Raised in the projects of Queens, New York, Mallah started investing in properties in “the tough neighborhoods of Oakland” that others avoided. Through decades of hard work, strategic refinancing, and leveraging the 1031 exchange, he built a real estate portfolio valued at $500 million.

While buying property today can seem daunting due to high prices and elevated interest rates, it’s important to remember that owning a property outright isn’t the only way to invest 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 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.

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.

Donald Trump’s victory in the U.S. presidential election has sparked a wave of relocations among high-net-worth individuals.

For instance, Ellen DeGeneres and her partner, Portia de Rossi, have reportedly moved to the U.K. following Trump’s win. Similarly, celebrities like Sharon Stone and Cher have publicly vowed to leave the U.S. should Trump secure the presidency.

However, not all high-profile individuals are looking for an exit from America.

Anthony Pratt, an Australian business tycoon and chairman of Visy Industries and Pratt Industries — global leaders in packaging and recycling — has taken a decidedly different approach. Instead of leaving, Pratt is doubling down on his commitment to the U.S.

In a LinkedIn post, Pratt announced that he has been granted a green card and is relocating to the U.S.

“We decided it was time to live in America because: (1) My family are all U.S. citizens. (2) Over the past 30 years we have invested to build 70 factories in America, creating 12,000 well-paying American manufacturing jobs,” he shared.

Pratt also reassured stakeholders that he will continue to serve as chairman of Visy Australia and plans to return to the country regularly.

With a net worth of $12.5 billion, Pratt has already made significant investments in the U.S., demonstrating the opportunities the country offers. But you don’t need to be a billionaire to take part in America’s economic growth.

Here are three straightforward ways everyday investors can tap into the nation’s economic boom.

Investing in stocks

One of the simplest and most accessible ways to invest in America is through the stock market. Stocks represent ownership in businesses, giving investors a stake in the profits and growth of the companies they choose to support.

Under Trump’s presidency, certain sectors are expected to thrive. For instance, his support for domestic energy production and reduced environmental regulations could benefit companies involved in oil, natural gas and coal. Investors might consider established energy giants to tap into this opportunity.

Another area to watch is infrastructure and construction. Trump has consistently advocated for massive infrastructure projects, which could create opportunities in companies specializing in building materials, construction equipment, and transportation services.

Financial services might also benefit from deregulation efforts, particularly in banking and investment sectors, which could see reduced restrictions and potentially higher profits.

To make informed decisions, platforms like Moby, an investment research service, can be invaluable.

Founded by former hedge fund analysts, Moby offers individual stock picks and insights and has already helped over five million users identify high-potential investments before they deliver multibagger returns. Over the past four years, Moby’s stock picks have outperformed the S&P 500 by an impressive average of 11.95%.

Investing in ETFs

Exchange-traded funds (ETFs) offer an easy and diversified way to invest in the U.S. economy. Unlike individual stocks, which tie your investment to a single company, ETFs bundle together multiple stocks, helping you spread risk across a broader portfolio.

For investors looking to capitalize on opportunities in America under Trump’s presidency, sector-specific ETFs can be worth a look.

For example, energy-focused ETFs can give you exposure to oil, natural gas, and other domestic energy industries, while infrastructure ETFs target companies in construction, engineering, and transportation.

Additionally, broad market ETFs, such as those tracking the S&P 500 Index, allow investors to participate in the overall growth of the U.S. stock market without picking individual winners and losers.

In fact, investing legend Warren Buffett has often championed the simplicity and reliability of index investing, famously saying, “In my view, for most people, the best thing to do is own the S&P 500 index fund.”

The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.

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.

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.

Investing in real estate

The U.S. is currently facing a significant housing shortage. An analysis by Zillow published in June estimated the housing shortage to be 4.5 million homes as of 2022.

Federal Reserve Chairman Jerome Powell addressed the crisis in September, pointing to the core issue: “The real issue with housing is that we have had, and are on track to continue to have, not enough housing.”

For investors, the housing supply gap presents a unique opportunity to invest in America. This trend transcends political administrations — no matter who is in the White House, people will always need a place to live.

While high home prices and elevated mortgage rates have made buying a home more challenging for individuals, 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.

Warren Buffett has never shied away from calling out underperforming investments. Among his most scathing critiques? An asset virtually everyone owns — cash.

In a 2008 op-ed for The New York Times, Buffett warned, “Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.”

Buffett had a point. Interest rates were low in 2008, so cash didn’t pay much. Meanwhile, inflation steadily eroded the purchasing power of money, diminishing cash’s real value over time.

Fast forward to today, and the story seems to have taken an unexpected turn. By the end of Q3 2024, Berkshire Hathaway’s cash reserves had swelled to a staggering $325.2 billion.

Why hold cash?

The sheer size of Buffett’s cash pile has raised eyebrows and fueled speculation about his strategy.

Edward Jones analyst Jim Shanahan told Reuters that the growing cash reserve “begs questions about whether Buffett thinks stocks are overvalued or an economic downturn is coming, or is trying to build cash for a big acquisition.” Similarly, CFRA Research analyst Cathy Seifert interpreted Berkshire’s cash hoarding as signaling a "risk-off" mindset, according to the report, which could lead investors to worry about its implications for the economy and markets.

Buffett himself has addressed concerns about his cash strategy, explaining his cautious approach during Berkshire’s annual shareholders meeting earlier this year.

“I don’t think anybody sitting at this table has any idea of how to use it effectively, and therefore we don’t use it,” he stated, emphasizing that “we only swing at pitches we like.”

Buffett has also voiced concerns about future complexities, noting, “As the world gets more sophisticated, complicated and intertwined, more can go wrong.” He added that the company aims to be prepared to “act when that happens.”

Putting cash to work

While Buffett is holding a massive cash pile, his warning about its drawbacks remains relevant. Inflation continues to chip away at the purchasing power of your hard-earned money. Putting your money to work not only helps you grow your wealth but also shields it from inflation’s long-term erosive effects.

Here are three popular ways to make your cash work harder to boost your net worth:

Stocks

As one of the most successful investors, Buffett built his fortune on investing in equities — particularly U.S. stocks. In his 2016 letter to shareholders, he expressed unwavering confidence in American businesses: “American business – and consequently a basket of stocks – is virtually certain to be worth far more in the years ahead.”

Berkshire’s performance serves as a powerful testament to that principle. From 1964 to 2023, the company delivered an astonishing overall gain of 4,384,748%.

Buffett emphasizes investing in businesses with durable competitive advantages — companies with unique strengths that allow them to outperform rivals over the long term. He also stresses the importance of understanding your investments. “Risk comes from not knowing what you’re doing,” he famously said. Doing your homework and focusing on industries and companies you understand is crucial for stock market success.

Today, there are more resources than ever to help investors make informed decisions. For instance, platforms like Moby, founded by former hedge fund analysts, offer stock research and insights tailored for everyday investors. Moby’s stock picks have outperformed the S&P 500 by an average of 11.95% over the past four years, helping over five million users identify promising investments before they take off.

Real estate

Real estate has long been considered a reliable hedge against inflation, thanks to its intrinsic value and income-generating potential.

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 during periods of escalating price levels.

In 2022, Buffett stated that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check.”

Whether the economy is booming or in a recession, people need a place to live. And with real estate prices rising to unaffordable levels in many parts of the country, renting has become the only option for many people.

These days, you don’t need to purchase a property outright to invest 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 with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants. 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.

Before you invest, make sure you understand all the risks of real estate crowdfunding. Keep in mind, there’s no guarantee of receiving rental income deposits from your investment and your money will be locked up until the property is sold, so there’s no liquidity.

Gold

Gold is another popular hedge against inflation. The reason 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. This unique characteristic has earned it the reputation of being a “safe haven” asset.

When inflation erodes the purchasing power of fiat currencies, gold’s appeal as a stable store of value often grows, driving up demand.

Investors have already taken note of its resilience. So far in 2024, gold prices have surged by 27%, surpassing $2,600 per ounce.

Economist Peter Schiff sees substantial further upside in investing in gold. “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.

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.

With over 20 years of industry experience, Priority Gold boasts 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 investment experience.

By signing up with Priority Gold, you are also eligible to receive up to $10,000 in free silver, along with a free investors guide to help you decide if this opportunity is the right fit for your retirement strategy.

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.

With four Super Bowl titles under his belt, legendary football tight end Rob Gronkowski has earned millions from his illustrious NFL career. But his most impressive financial touchdown happened off the field — and had nothing to do with sports.

Back in 2014, while playing for the New England Patriots, Gronkowski was building a house in Foxborough, Massachusetts with the help of a contractor who repeatedly urged him to invest in one specific stock.

“Every time I saw him, when we were building the house, he kept saying, ‘Get Apple. Get Apple,” Gronkowski recalled in an interview with Fortune.

He eventually gave in, despite it being uncharted territory for him.

“I [had] never been involved in stocks. I really didn’t know how stocks work. So I was like, ‘All right, let me do this, man,’” said Gronkowski. “After the 50th time, I got it. And let me tell you, it’s the best investment I’ve ever had in my life.”

Determined to make a bold move, Gronkowski decided to “go big.”

“So I call up my financial advisor. I’m like, ‘Put $69,000 in Apple.’ My own money, with no advice like this is just from the guy who built my house here in the New England area,” he said.

For a while, Gronkowski forgot about the investment. Two and a half years later, he revisited it — and was stunned to discover his Apple stock had grown to $250,000. So he sold a portion of the shares but held onto the rest.

As Apple’s stock price continued to rise, so did the value of his remaining shares.

“Now to this day, I have over $600,000 in Apple stock, all because of the investment I made in 2014 having no idea what I was doing, but just listening to the guy that built my house here in New England,” he told Fortune.

While not everyone has $69,000 to act on a stock tip, many assets that were once exclusive to the ultra-wealthy are now within reach for everyday Americans.

Here’s a look at how you can take advantage of these opportunities — even if you’re not an NFL superstar.

Invest in stocks

Stocks represent ownership in businesses, giving investors a stake in the profits and growth of the companies they choose to support. By owning shares, you can benefit from a company’s success through price appreciation and, in some cases, dividend income, making stocks a powerful tool for building wealth over time.

However, while Gronkowski’s Apple investment turned out to be a big win, not all stock tips lead to success. Legendary investor Warren Buffett — who made billions from his Apple investment — warns against acting on random advice.

“Never invest in a business you cannot understand,” Buffett advises according to CNBC, emphasizing the importance of doing your own research. He also advocates for owning businesses with durable competitive advantages — those with strong, sustainable edges over their competitors.

Today, there are more resources than ever to help investors make informed decisions. For instance, platforms like Moby, founded by former hedge fund analysts, offer stock research and insights tailored for everyday investors.

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

Invest in real estate

Real estate has long been a cornerstone of wealth building, offering opportunities for both rental income and appreciation.

Gronkowski is no stranger to the sector. According to Architectural Digest, his first major purchase was a $1.6 million, 4,781-square-foot mansion in South Tampa in 2012.

The home, featuring four bedrooms and seven bathrooms, sold just a year later for $2.08 million. Gronkowski then custom-built a Victorian-style home in Foxborough — the very project where his contractor recommended investing in Apple.

In 2016, Gronkowski expanded his portfolio by acquiring a $1.9 million, 2,063-square-foot corner-unit penthouse in Boston’s trendy Seaport District. He sold the property in 2019 for $2.3 million, turning a tidy profit. That same year, Gronkowski headed south, purchasing a $1.7 million Biscayne Bay double-condo in Miami from retired Norwegian soccer star John Carew.

Of course, not everyone has millions to invest — even regular single-family homes have become increasingly expensive. However, you don’t need to purchase a house outright to start building wealth through 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 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.

Invest in art

It’s easy to see why great works of art tend to appreciate over time. The supply is inherently limited, and many famous pieces have already been snatched up by museums and collectors.

Investing in art has become a popular strategy for diversifying wealth, and several NFL players have tapped into this market.

Former linebacker Keith Rivers, for instance, has built an impressive collection of modern and contemporary art, featuring pieces by iconic artists like Andy Warhol, Barbara Kruger and Glenn Ligon.

Similarly, Malcolm Jenkins, a two-time Super Bowl champion, has embraced art collecting, focusing on works that reflect his values and interests.

Art offers a unique advantage as an investment because it’s a tangible physical asset with little correlation to the stock market. According to Masterworks, postwar and contemporary art prices have outpaced the S&P 500 by 43% (1995-2024).

Traditionally, investing in fine art was a privilege reserved for the ultra-wealthy. However, platforms like Masterworks have made this market more accessible, allowing everyday investors to invest in shares of multi-million dollar art.

With 23 successful exits to date, every one of them profitable, Masterworks has delivered annualized net returns like 17.6%, 17.8%, and 21.5%. New offerings have sold out in minutes, but you can skip the waitlist here.

• See important Regulation A disclosures at Masterworks.com/cd

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 has long grappled with a growing deficit problem, as government spending outpaces revenue. Scott Galloway, professor of marketing at New York University, believes the situation is set to deteriorate further now that Donald Trump has secured the presidency.

In an interview with CNN’s Anderson Cooper days following the 2024 U.S. presidential election, Galloway delivered a stark warning about the economic fallout of Trump’s upcoming term.

“The Harris campaign was unable to expose a basic economic truth, and that is deficits, which have been bad under the Biden administration, but under the Trump administration versus the Harris economic plan, deficits are going to be triple,” Galloway said.

The numbers already paint a troubling picture. In fiscal year 2024 alone, the federal government spent $6.75 trillion while collecting $4.92 trillion in revenue, resulting in a $1.83 trillion deficit. Yet, Galloway suggests the consequences of even higher deficits could be generational.

“It’s great for you and me Anderson, because we own homes and we own stocks, and the stimulus of that deficit spending will take the value of our stocks and our real estate up,” Galloway explained. “But our kids are going to have to pay that back at some point.”

He summed it up with a blunt metaphor: “All deficits do is take the credit card of youth, run it such that we can have champagne and cocaine in the club — deficits are nothing but delayed taxes on the young.”

It’s a grim outlook, and Galloway isn’t alone in raising concerns. A week before the election, the Committee for a Responsible Federal Budget provided a central estimate that Trump’s proposed policies could add $7.75 trillion to the national debt over the next decade — nearly double the $3.95 trillion central estimated increase under Harris’s plan.

If you’re worried about the implications of this growing fiscal burden, here’s a look at how you can hedge against the economic impact — drawing from Scott Galloway’s insights.

Real estate

Galloway pointed out that one reason the projected surge in deficits under Trump is “great” for him and Anderson Cooper is that they “own homes.” He noted that deficit spending can inflate asset values, including real estate, while warning that the younger generation may face inflation and higher mortgage rates.

It seems that excessive government spending can indeed contribute to rising prices. Research out of MIT shows that federal spending played a significant role in the inflation spike Americans experienced in 2022.

Fortunately, real estate has historically been an effective hedge against inflation. When inflation rises, property values often increase as well, reflecting the higher cost of materials labor, and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that can adjust with inflation. This combination makes real estate an attractive option for preserving and growing wealth during periods of escalating price levels.

While Galloway cautioned about the potential for high mortgage rates in the future, the U.S. Federal Reserve has begun cutting interest rates, providing opportunities for potential buyers, while experts recommend shopping around and obtaining quotes from several 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.

Of course, 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.

Equities

As Galloway noted, older generations tend to hold stocks — another asset class that can benefit from deficit spending. When the government spends more than it earns, additional funds are injected into the economy, potentially boosting corporate profits and investor confidence in the short term.

Stocks can also serve as a hedge against inflation, which deficit spending can exacerbate. As inflation drives up costs, companies capable of passing these expenses onto consumers through higher prices can maintain or even grow their profit margins. This ability to adapt could lead to stronger earnings and potentially higher stock prices.

You don’t have to be among the wealthy, like Galloway or Cooper, to invest in stocks. Trading apps like Public allow everyday investors to capitalize on the stock market by investing in fractional shares for as little as $5. You can easily pack your portfolio with your favorite companies, with zero commissions. Public also offers a high-yield cash account with a competitive 4.35% APY, letting your idle funds work for you.

To make informed decisions, investors can use research tools like Moby, which provide expert analysis and market insights, helping users optimize their portfolios.

The team of former hedge fund analysts and experts at Moby sift through financial news and data to provide superior stock and ETF research to keep you up-to-date on what’s moving the markets.

In four years, across almost 400 stock picks, Moby’s recommendations have beaten the S&P 500 by almost 12%, on average.

Gold

Galloway isn’t alone in warning about the inflationary risks of a second Trump presidency. Former U.S. Treasury Secretary Larry Summers echoed similar concerns to CNN, cautioning that if Trump implements his economic plans, “there will be an inflation shock significantly greater than the one the country suffered in 2021.”

A traditional hedge against inflation is gold. Unlike fiat currencies, the precious metal can’t be printed in unlimited quantities by central banks. And because its value isn’t tied to any one currency or economy, gold could provide protection during periods of economic uncertainty. This unique characteristic has earned it the reputation of being a “safe haven” asset.

In 2024, gold has lived up to its reputation, soaring by over 25% and surpassing $2,600 per ounce.

One way to invest in gold that also provides significant tax advantages is with a gold IRA. 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.

One of the country’s most trusted precious metals companies – with an A+ rating from the Better Business Bureau – American Hartford Gold has helped thousands of clients open and manage a gold IRA to help protect their retirement.

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.

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.

Real estate mogul and YouTube personality Ben Mallah epitomizes a classic rags-to-riches story. Raised in the projects of Queens, New York, he defied the odds to build a $500 million real estate empire.

Mallah’s journey began with a sharp eye for overlooked opportunities, starting in “the tough neighborhoods of Oakland” where he invested in properties “nobody else wanted.”

Today, Mallah’s empire has evolved far beyond those humble beginnings.

During his appearance on The Iced Coffee Hour podcast with Graham Stephan and Jack Selby, Mallah described the backbone of his current portfolio: “Today, we’re sitting on a very large portfolio of what I like to call ‘necessity real estate,’ or ‘essential real estate.’”

He elaborated further, explaining, “I like retail, but I like retail that the internet can’t hurt, Amazon can’t hurt. I like food, I like necessity services like hair, nails, food, good, strong restaurants, dentists, medical… things that people can’t go online and accomplish.”

Mallah shared that while he had opportunities to invest in shopping malls, he deliberately chose not to due to the inherent risks associated with them.

Instead, he gravitated toward necessity real estate, which he finds far more appealing. “I had opportunities to buy shopping malls, and I didn’t do it because I was afraid of them,” Mallah admitted. “But I like this stuff,” he added, referring to the essential real estate properties that form the cornerstone of his portfolio.

As e-commerce continues to disrupt traditional retail, Mallah’s focus on essential, in-person services offers a blueprint for resilience. By investing in businesses tied to basic needs, he’s built a portfolio that stands strong against the forces reshaping the consumer landscape. And the best part? You don’t need $500 million to start adopting Mallah’s proven strategy for yourself.

Grocery-anchored real estate

Investing in grocery-anchored real estate offers a significant advantage for savvy investors: stability.

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.

Unlike office buildings or other commercial properties, necessity-based real estate caters to the everyday needs of local communities.

Properties anchored by grocery stores and essential services 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 to own shares in institutional-quality, 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. With FNRP, investors can expect to [collect steady income] backed by reliable grocery store tenants every quarter.

Another option for grocery-focused investments is real estate investment trusts (REITs). Slate Grocery REIT (SRRTF), for example, holds a portfolio of 116 properties, with 95% anchored by grocery stores.

These REITs provide a hands-off way to invest in this sector while benefiting from diversified exposure to essential real estate.

Housing is essential, too

Housing, much like grocery stores, is a cornerstone of necessity real estate. No matter the state of the economy, people will always need a place to live, making residential properties one of the most dependable and enduring investments in real estate.

The U.S. is currently facing a significant housing shortage, intensifying the demand for residential properties.

An analysis by Zillow published in June estimated the housing shortage to be 4.5 million homes as of 2022.

Federal Reserve Chairman Jerome Powell addressed the crisis in September, pointing to the core issue: “The real issue with housing is that we have had, and are on track to continue to have, not enough housing.”

For potential investors, the housing supply gap presents a unique opportunity. While high home prices and elevated mortgage rates have made buying a home more challenging for individuals, you don’t need to purchase a property outright to invest in residential 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 without worrying about maintenance or tenant issues. Simply 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.

REITs provide another avenue for those looking to gain exposure to this essential market. Companies like American Homes 4 Rent (AMH) focus on single-family rental homes, while Equity Residential (EQR) targets multifamily housing in high-demand urban areas. These companies can serve as a starting point for further research.

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.

Life seems to be getting even better for California Governor Gavin Newsom. For years, he and his family have lived in a $3.7 million home in Sacramento County, purchased in December 2018 by a company registered to Newsom’s cousin, Jeremy Scherer. Now, the governor is upgrading — at least part-time.

Newsom recently bought a $9.1 million mansion in Marin County, just across the Golden Gate Bridge from San Francisco. The luxurious six-bedroom property features floor-to-ceiling windows, a swimming pool and a spa. Reports reveal that Newsom acquired the home through MHBD Farms, LLC, an entity formed just two days before the transaction.

While Newsom’s office has declined to confirm the purchase, a spokesperson told the San Francisco Chronicle, “The family continues to split their time between Sacramento and Marin counties.” According to the Daily Mail, the governor plans to keep his $3.7 million Sacramento residence too.

It’s no secret that real estate in Marin County comes with a hefty price tag. Zillow estimates the average home price in the area at $1,449,891. California as a whole has one of the nation’s most expensive housing markets: the average home in the Golden State costs $771,057, more than double the U.S. average of $359,099.

The good news? You don’t need millions to get a slice of California’s lucrative real estate market.

Invest through REITs

Real Estate Investment Trusts (REITs) offer an easy and accessible way for investors to participate in the real estate market without the challenges of owning property.

These companies own, manage or finance income-generating real estate, making them a convenient alternative to traditional land investment. Think of a REIT as a landlord: it owns and operates a portfolio of properties, collecting rent from tenants and distributing most of its income to shareholders.

By law, REITs are required to pay out at least 90% of their taxable income as dividends, providing investors with a stream of passive income.

Many REITs are publicly traded, allowing you to buy and sell shares through a brokerage account, just like stocks. Additionally, some REITs specialize in specific regions or property types. For those interested in California’s thriving real estate market, here are two REITs with a strong focus on the Golden State.

Essex Property Trust (ESS)

Essex Property Trust is a REIT that focuses on acquiring, developing, and managing apartment communities in supply-constrained markets. Unsurprisingly, California plays a central role in the company’s operations. Its portfolio primarily targets Southern California, the San Francisco Bay Area, and the Seattle metropolitan area.

According to its latest investor presentation, Essex owns 254 apartment communities totaling around 62,000 units. Over 80% of the REIT’s net operating income comes from properties located in California, making it a name worth considering for those looking to tap into the state’s robust housing market.

The company currently pays quarterly dividends of $2.45 per share, translating to an annual yield of 3.2%.

Rexford Industrial Realty (REXR)

Rexford Industrial Realty specializes in industrial properties, with a particular focus on infill Southern California. This focus stems from the region being considered “the largest industrial market and consistently the highest-demand with the lowest-supply major market in the nation.”

Rexford’s current portfolio includes 424 properties, encompassing approximately 50.3 million rentable square feet. These properties are leased to a diverse array of tenants, with no single sector accounting for more than 25% of the REIT’s annualized base rent.

Paying quarterly dividends of $0.4175 per share, Rexford offers an annual dividend yield of 3.88%.

Invest outside the stock market

These days, REITs aren’t the only way to diversify into real estate. Crowdfunding platforms like Arrived have opened the door for everyday Americans to invest in rental properties across the U.S. — without the 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.

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.

Headline inflation has eased in the U.S., but according to economist and former Treasury Secretary Larry Summers, soaring prices may not be over — especially in light of Donald Trump’s recent presidential election victory.

Speaking at a New York Economic Club, Summers cautioned that Trump’s proposed policies could drive inflation even higher than the levels triggered by his predecessor’s actions.

“There is a very substantial risk that the president will attempt to implement what he talked about. If he does, the consequences are likely to be substantially greater inflation than what was set off by the excessive Biden stimulus,” Summers suggested, according to a recent CNN report.

He also looked to the U.S. Federal Reserve, which recently announced a second consecutive cut to its benchmark interest rates.

“My own judgment is that the Fed and markets are still underestimating the overheating risk,” he wrote in a post on X.com. “I ask myself: Why is cutting rates a priority into that environment?”

In October, the U.S. Consumer Price Index recorded a 2.6% annual increase, a significant drop from its 40-year high of 9.1% in June 2022.

Still, Summers remains vigilant, warning, “I am fearful that the Fed is going to be more like once burned, twice burned, rather than once burned, twice shy, on inflationary risks.”

Inflation impacts everyone by eroding the purchasing power of money. If you share Summers’s concerns, here are three strategies to guard against its impact.

Real estate

Real estate has long been considered a reliable hedge against inflation, thanks to its intrinsic value and income-generating potential.

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 during periods of escalating price levels.

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 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.

Gold

Gold is another popular hedge against inflation. The reason 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. This unique characteristic has earned it the reputation of being a “safe haven” asset.

When inflation erodes the purchasing power of fiat currencies, gold’s appeal as a stable store of value often grows, driving up demand.

Investors have already taken note of its resilience. So far in 2024, gold prices have surged by 27%, surpassing $2,600 per ounce.

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

Contemporary art

It’s easy to see why great works of art tend to appreciate — especially during times of inflation. Supply is limited, and many famous pieces have already been snatched up by museums and collectors.

Investing in art was traditionally a privilege reserved for the ultra-wealthy.

In 2022, shortly after inflation reached a 40-year high, the art collection of late Microsoft co-founder Paul Allen sold for a total of $1.5 billion at Christie’s New York, making it the most valuable private collection of all time.

Art is also a popular way to diversify because it’s a tangible physical asset with little correlation to the stock market. According to Masterworks, postwar and contemporary art prices have outpaced the S&P by 64% (1995-2023).

Masterworks is a platform for investing in shares of blue-chip artwork by renowned artists including Pablo Picasso, Jean-Michel Basquiat, and Banksy.. It’s easy to use, and with 23 successful exits to date, every one of them profitable.

Simply browse their impressive $1 billion portfolio of paintings and choose how many shares you’d like to buy. Masterworks will handle all the details, making high-end art investments both accessible and effortless.

Masterworks has already sold roughly $45 million worth of art, distributing the net proceeds to everyday investors. New offerings have sold out in minutes, but you can skip their waitlist here.

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.

Real estate has long been known for generating significant returns, helping investors build wealth steadily over time. However, according to real estate mogul and YouTube personality Ben Mallah, the potential gains can far exceed even the most ambitious expectations.

During an appearance on “The Iced Coffee Hour” podcast with Graham Stephan and Jack Selby, Mallah shared his preferred wealth-building strategy in real estate.

“Every time I had a property, I improved it and I went and I increased the value in it, I would refinance it … because that’s a non-taxable event — pull my money out of it and still cash flow,” he explained.

Refinancing a property involves replacing the existing mortgage with a new loan. If the property has appreciated in value, an investor can often take out a larger loan based on the higher current value. For example, in a cash-out refinance, an investor takes out a larger loan, uses it to pay off the old mortgage, and receives the remaining balance as cash. Since the proceeds from a refinance are technically a loan rather than income, they’re generally not subject to taxes. This strategy allows investors to tap into the property’s equity while still retaining ownership and cash flow.

This is a real estate investment strategy more commonly known as the BRRRR method, where BRRRR stands for buy, rehab, rent, refinance and repeat.

Mallah emphasized how this approach transforms his returns. “The ultimate goal to me, has always been in real estate is, you buy something, you improve it — now it’s worth more money, then you get your money back. So now I have nothing invested in my property, but I still cash flow. What kind of return is that?” he asked.

“Infinite,” both Mallah and Stephan replied. Let’s take a closer look at the math behind this claim.

‘Infinite’ returns?

Mallah described a strategy where, once a property’s value has increased, you “get your money back” through refinancing. By pulling out his original investment, Mallah is no longer out-of-pocket on the property, yet it continues to generate rental income.

In simple terms, Mallah argues that by removing his initial investment through refinancing, his personal capital in the property effectively becomes zero. If you calculate the return by dividing the property’s cash flow by the remaining personal investment (now zero), the result could be infinite.

To be clear, when you divide a number by zero, it’s undefined. And while dividing a positive number by something approaching zero can result in a value approaching positive infinity, “infinite return” here is more of a conceptual term. It reflects that he continues to generate cash flow with no initial investment capital remaining at risk, but from an accounting perspective, the initial investment isn’t truly erased — it’s just been recouped. And for accounting, the return would be calculated based on the full cycle of the cash flows and capital involved, making the “infinite” concept more motivational than strictly accurate.

There are potential pros of the BRRRR method, like the wealth building opportunities, but there are several pitfalls and risks investors should be aware of. Chase Bank mentions high starting costs, the difficulty of finding properties that have potential for renovation and adequate rental income, the possibility of investing in property that won’t appreciate in value or gain tenants and the significant commitment required for renovating and managing rental properties.

“The BRRRR method isn’t for everyone. BRRRR investors need to devote time to identifying worthwhile properties, rehabbing them, and then serving as a landlord for potentially multiple tenants simultaneously. You also need to have knowledge and experience in real estate and a keen eye when it comes to renovations. If you fail to miscalculate market value, rehab costs, or failure to secure tenants when you need them, you can take a loss,” says David Greene, a real estate broker writing for BiggerPockets. “If you’re going to BRRRR, we don’t recommend doing it alone. Work with a team of skilled experts who have the time and know-how to make the most of the BRRRR experience.”

Still, Mallah highlighted the power of this strategy: “So now here I am. I’m sitting with all these properties that I refinanced. I got all my money back so I can deploy it in other deals, or whatever, spend it, and I’m still cash flowing, and that’s great. I own businesses, real estate, without any money invested.”

Learning from Mallah

When asked about his current portfolio, Mallah told Stephan and Selby, “Today, we’re sitting on a very large portfolio of what I like to call necessity real estate, or essential real estate.”

He explained that while he invests in retail, he focuses on properties that are resistant to online competition — businesses that, as he puts it, “the internet can’t hurt” and “Amazon can’t hurt.” Providing examples, he said, “I like food, I like necessity services like hair, nails, food, good, strong restaurants, dentist, medical … things that people can’t go online and accomplish.”

In a world where the internet has dramatically shifted consumer habits, Mallah’s approach highlights the importance of focusing on essential, in-person services that are less vulnerable to digital disruption.

For investors interested in this approach, platforms like First National Realty Partners (FNRP) focus on necessity-based commercial real estate. FNRP allows accredited investors to [own a share of institutional-quality properties] leased by national brands like Whole Foods, CVS, Kroger and Walmart. Investors can potentially to collect stable, grocery store-anchored income every quarter.

Residential real estate is another necessity sector — after all, people will always need a place to live.

Platforms like Cityfunds allow investors to grow their returns by investing in residential properties in top U.S. cities — like Denver, Austin, Nashville and Miami — without the burden of traditional homeownership costs.

Cityfunds allows investors to invest in diversified portfolios of owner-occupied homes. In exchange for capital, Cityfunds secure an interest in the home’s future value. As the home appreciates, so does the value of Cityfunds equity investment.

This means you can invest in the housing market of the city you love for as little as $500, without the high upfront costs or the challenges of managing a property.

It’s important to note that real estate crowdfunding online is relatively new and comes with several risks, like a lack of liquidity, that investors should fully understand before they invest any money — and sometimes means getting advice from an expert.

With the help of a qualified professional, like those you can find through Advisor.com, you can figure out what investments are best for your portfolio and goals.

Advisor.com is a free service that helps you find a financial advisor who can co-create a plan to reach your financial goals by matching you with a small list of the best options for you to choose from. From their database of thousands, you get a pre-screened financial advisor you can trust. You can then set up a free, no-obligation consultation to see if they’re the right fit for you.

1031 exchange

In addition to refinancing, Mallah credits the 1031 exchange rule as a cornerstone of his wealth-building strategy, using this powerful tax-deferral tool to continually expand his real estate portfolio.

“What created my wealth was pretty much based on the 1031, you know, deferred tax exchange that the IRS laws have,” he said.

Under U.S. tax law, a 1031 exchange allows an investor to sell a property and reinvest the proceeds into a "like-kind" property without immediately paying capital gains taxes on the sale. This deferral means Mallah can retain more capital to reinvest, enabling him to purchase progressively larger or more lucrative properties, amplifying his wealth over time.

Mallah also highlights timing as crucial to his success. By selling at opportune times, he maximizes property values before executing a 1031 exchange, capturing peak profits and reinvesting them into new assets while deferring taxes on each sale.

“Everything is timing. When the market goes up, there might be even more value in it … So now I might decide, I want to move, I want to raise cash, I want to do some bigger deals, I might sell it, but if I sell it, I’ve always 1031’d into the next deal” he explained.

This disciplined approach has worked well for Mallah, fueling his growth for over three decades. “For over 30 years I’ve been doing that. I never touch the money from a sale. The money gets reinvested into the next deal. And that kind of forced me to grow,” he remarked.

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