Author: Vishesh Raisinghani

It’s easy to assume that wealth and income are deeply intertwined. After all, how does anyone become wealthy without a high-income stream?

However, data gathered by Dave Ramsey’s team suggests the link between wealth and income may be weaker than most people assume.

Looking to our neighbours down south, only 31% of American millionaires earned an average annual income of US$100,000 over the course of their careers, according to The National Study of Millionaires, conducted by Ramsey Solutions. Perhaps even more surprising is that one-third of these millionaires never reached the six-figure income milestone throughout their careers.

In other words, it’s completely realistic to reach a seven-figure net worth without earning a six-figure salary. However, this modest income path to millionaire status does require more effort and discipline — here’s what you need to know.

Expenses are the key

The key to accumulating wealth is managing expenses. Many ultra-high-income individuals struggle to break into the millionaires club because they let lifestyle inflation consume them.

In fact, 85% of Canadians think living paycheque to paycheque is the new norm, with only 7% putting a fifth of their earnings into savings.

By comparison, someone with a modest five-figure income coupled with better savings and investing skills could be more likely to reach millionaire status. However, a high-savings rate isn’t a silver bullet. To break into the millionaires club with a mid-range income, you’ll need to invest wisely and start as early as you can.

Start investing early

The magic fuel that drives the compounding growth effect is time. In a long enough time frame, even modest savings and lacklustre investment returns can turn into serious wealth.

For instance, an 18-year-old would need to save only $250 a month and earn a modest 7% annual return on investment to reach $1 million by the age of 66. Put simply, if you want to accumulate exceptional wealth without an exceptional income, starting as early as possible is essential.

Avoid or limit debt

Another essential ingredient in your modest-income-to-millionaire journey is reducing your exposure to debt. After all, a high-interest loan can effectively offset all the positive impacts of a diligent savings and investing strategy.

For most people, avoiding debt — especially the expensive type — is their biggest challenge. As of late 2024, the average, non-mortgage Canadian debt load rose to $21,931, with the total debt amounting to $2.56 trillion, according to Equifax.

Serving this debt could be one of the key reasons why the average personal savings rate in America is only 5.7% in Q1 2025, according to Trading Economics.

By limiting or eliminating consumer debt, you can save more. That could be the key to your financial freedom, regardless of your income.

Creative planning

Life can be messy and even if you follow all the traditional financial advice, your journey to financial freedom could be derailed by health issues, divorce, bankruptcy or emergencies.

If you’re approaching retirement without much savings or a high-paying career, your chances of becoming a millionaire are greatly diminished. However, this doesn’t mean it’s impossible to enter the club.

Creative solutions could help you get there despite the odds. For instance, you could boost your savings rate by temporarily moving to a town or country with a lower cost of living. Working remotely while paying modest rent in Mexico, for example, could help you accumulate wealth faster.

You could also consider delaying retirement. Adding five or even 10 years to your retirement plan could make a significant difference, especially if you’re starting to build your nest egg later in life. A 40-year-old would need to save just $900 a month and earn a 7% return on investment to reach millionaire status at 75.

Finally, you could boost your investment returns by investing in alternative assets such as rental property, farmland, small businesses or high-growth tech stocks.

There’s always a practical path to the seven-figure club, regardless of your age or income.

Sources

1. Ramsey Solutions: The National Study of Millionaires

2. Equifax: Stable versus Struggling: Canada’s Financial Divide Widens (Feb 25, 2025)

3. Trading Economics: Canada Household Saving Rate

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

For a man who built a media empire out of hot takes and hustle, Dave Portnoy’s biggest money lesson is surprisingly simple: “Once you get it, it’s easy to get a lot more," he told Shannon Sharpe on a recent episode of the Club Shay Shay podcast.

The entrepreneur, who sold his company Barstool Sports to Penn Entertainment for about $500 million only to buy it back for $1 a few years later, says it took him a decade to accumulate his first million. But once he did, making money became significantly easier and he now claims to be able to generate $5 million in a week.

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"Once you get over the hump it just comes [to you]," says the 48-year-old online influencer.

Here’s why wealth creation can accelerate after you hit certain milestones.

The ultra-rich rely on the snowball effect to build wealth

Portnoy is referring to compound growth, a key strategy used by many to grow wealth. The late Charlie Munger often described it as “getting a snowball rolling down a hill.”

The snowball effect helps to explain why wealth creation accelerates once a person has hit certain financial milestones. An investor who starts off with no money and invests $1,000 a month in an asset that generates 10% annual returns would make $100,000 in 6.5 years. But with compound growth, that $100,000 would take just four years to grow to $200,000, and just three more years to reach $300,000.

This is because an investor with $100,000 is earning returns not only on their monthly contributions but also their accumulated wealth.

Put another way, an investor with $100 million in net worth can easily generate $5 million quickly — perhaps within a week — because they would need to earn just 5% on their assets to do so.

In fact, Portnoy admitted during the interview that he once “spent five hours just talking about the interest" he was earning on his cash after he got rich. "I couldn’t believe it, I was making money not doing anything."

This is why your early financial milestones are so critical in your long-term wealth creation journey: the earlier you start investing large amounts of money, the longer it has to grow with the most growth opportunity.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to set clear targets to build wealth

If you want to reach that tipping point where wealth builds itself, you need a strategy, and that starts with setting smart, achievable goals. Think of your first major milestone, such as $100,000 in assets, as the start of your personal snowball.

However, it’s essential that you consider your age, lifestyle and location while setting financial targets. A 60-year-old in San Francisco may need far more, while a 20-something in Detroit could be ahead of the curve with far less.

Once you’ve got a target, the next step is making sure your money is actually working. Keeping a large sum in a savings account earning a low interest won’t get you anywhere. And stuffing it under your mattress would be even worse. Inflation will eat away at your purchasing power every year.

Instead, build a portfolio that’s designed to grow. That might mean investing in stocks, ETFs, real estate or even alternative assets. The key is finding the right mix of risk and reward for your goals.

If you’re not sure where to start, talk to a financial advisor or planner who can help you set targets, diversify your assets and stay on track. Because once you hit that first big number and let compound growth kick in, you might find your money growing a lot faster than you expected.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

Like many people his age, Ethan from South Carolina is waiting for the perfect moment to hop onto the property ladder.

In an email to The Ramsey Show, the 28-year-old said he and his wife earn more than $200,000 a year and have roughly $180,000 in savings and investments. They’re just waiting for home prices to slide lower before snapping up their dream home.

But according to finance personality Dave Ramsey, that’s a big mistake.

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“Interest rates are going to do what they’re going to do,” he told Ethan during a recent episode. “House prices are not coming down … there’s no fix on the horizon for that."

Here’s why the veteran property investor is so confident about the resilience of the property market in 2025 and beyond.

‘Seventh-grade economics’

In theory, home prices are correlated to interest rates. When the cost of borrowing money for a mortgage rises, housing affordability craters, dragging demand lower.

However, Ramsey highlights the fact that interest rates have been elevated for a while but that so far, the impact on housing has been minimal.

As of late April, the average 30-year mortgage rate is 6.81%, according to the Federal Reserve — significantly higher than the 3% rate during much of 2021.

However, the median sales price of a U.S. home has declined a mere 5.8% from its peak at the end of 2022, according to the Fed.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Put simply, home prices have softened, but not nearly as much as expected. To understand why, Ramsey points to another factor: supply.

“There’s a serious shortage of housing,” he says, which is effectively putting a floor on the price of a home.

According to him, this supply-demand imbalance is “seventh-grade economics.”

The formation of new households has exceeded the rate of home-building for an extended period. That, according to calculations by the Brooking Institute, has created a shortage of approximately 4.9 million housing units as of 2023.

With that in mind, Ramsey and his co-host Jade Warshaw encourage Ethan to pull the trigger right away.

“I would say the right time to buy a house is when you can afford it,” Warshaw says.

Ramsey, meanwhile, believes Ethan could miss out on home price appreciation in the years ahead if he waits too long.

“The next round of real estate prospering these houses are going to shoot up again,” he says.

However, this advice overlooks another important characteristic of the housing market — that housing is local.

Housing is local

The national housing market is highly fragmented and influenced by several local factors. The market for condominiums in New York, for example, is strikingly different from the market for cottages in rural Nebraska.

Over the past year, San Francisco, Austin, and Miami have seen home prices decline between 7.7% to 10.9%, according to Realtor.com.

Factors such as over-construction in Texas, insurance costs in Florida and migration out of California could be some of the reasons driving these changes.

National statistics do not necessarily reflect these granular details for each market.

With that in mind, potential homebuyers should speak to local property experts and experienced investors to understand their local market before making what could potentially be one of the largest purchases of their life.

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• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

What was meant to be a quick sale of a rare antique turned into a sobering reminder of the hidden risks of so-called alternative assets.

Grande tête mince, a bronze sculpture by Swiss surealist Alberto Giacometti, failed to meet expectations at a recent Sotheby’s auction. Industry insiders and art experts estimated that the sculpture was worth US$70 million, however the auction failed after the highest bid maxed out at US$64.25 million, according to the New York Times.

This high-profile flop highlights some of the risks of investing in alternative assets such as art and collectibles. According to Deloitte ultrawealthy families across the world have allocated roughly 13.4% of their assets to artwork and collectibles, on average. Unfortunately, the art and collectible market is a tough asset to store wealth. These markets are notoriously opaque and illiquid, meaning many of these collectibles cannot fetch the high resale price that owners expect.

Investors looking to diversify using alternative assets don’t need to rely on an illiquid asset, such as fine art. Instead, consider these three alternative assets that can offer more attractive investment returns than ancient sculptures or oil on canvas.

Alternative asset #1: Gold

Gold has been around longer than any piece of ancient art and its collectors include central banks and sovereign nations. The market for this precious metal is also much more transparent and robust.

Gold’s reputation as an uncorrelated, safe haven is well known among investors — and the reliance on the market to gravitate to this precious metal has only been cemented in recent months. As President Donald Trump’s ongoing trade war whips up volatility in stocks, bonds and cryptocurrencies, the price of gold has surged roughly 25% over the past six months.

For investors, adding exposure to precious metals is a good idea, particularly if you’re worried about economic growth, inflation or interest rate volatility over the medium- to long-term.

Alternative asset #2: Real estate

Tangible land and property have strikingly different dynamics when compared to stocks or bonds. According to an analysis by J.P. Morgan , direct real estate as an asset class tends to have low or even negative correlation with the S&P 500 (SNP:GSPC) — the index fund commonly used to track the overall health of the North American stock market.

To be clear, J.P. Morgan focused on direct real estate deals. An analysis by Guggenheim Investments found that real estate investment trusts (REITs) had higher correlation with the S&P 500 (SNP:GSPC) — meaning if you’re a homeowner or landlord with real property holdings, your property’s value tends to rise and fall in relation to the health of the equities market. However, with real property the benefit is the inflation-hedged cash flow you earn from rent.

For investors considering a real property rental it’s important to understand the financial obligations and tax ramifications of purchasing a rental property. For investors looking for real estate exposure without the headache of being a landlord, opt for shares in REITs.

Alternative asset ##: Infrastructure

Infrastructure assets such as toll roads, bridges, cell phone towers and airports have many of the same dynamics as real estate. However, these assets are more rare and could have great earnings potential.

Private infrastructure assets across the world performed better than stocks and bonds in 2022, when inflation and interest rates were rapidly rising, according to KKR. That makes these assets an ideal “shock absorber” for a typical investor’s portfolio.

If you’re looking to add some exposure to this niche asset class, consider the iShares U.S. Infrastructure ETF (BTS:IFRA) or the SPDR S&P Global Infrastructure ETF. If you’d prefer not to risk currency exchange fees and withholding tax, consider Canadian stock options such as Bird Construction (TOR:BDT.TO), WSP Global (TOR:WSP.TO) and Badger Infrastructure Solutions (TOR: BDGI.TO).

Pipelines and cell towers might not be as exciting as rare exotic artwork, but the necessity of these infrastructure projects usually translates into a more lucrative asset that is typically less volatile.

Sources

1. The New York Times: Anatomy of a $70 Million Auction Flop, by Tim F. Schneider (May 14, 2025)

2. Deloitte: A snapshot of the last Deloitte Private and ArtTactic Art & Finance Report (Feb 8, 2024)

3. J.P. Morgan: Direct Real Estate: Finding diversification and stable income, by Meera Pandit (Apr 1, 2025)

4. Guggenheim Investments: Asset Class Correlation Map

5. KKR: Infrastructure: A Potential Economic Shock Absorber, by Brandon A. Freiman and Derek Craig (Jan 2024)

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

After rushing to file your taxes before the April 15 deadline, the fantasy of living in a world without the Internal Revenue Service (IRS) might feel especially tempting.

It’s certainly on the mind of President Donald Trump, who wants to “abolish the IRS,” according to Commerce Secretary Howard Lutnick.

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Given this administration’s history of bold and sometimes outlandish ideas — from threaten to use force to invade Greenland to abolishing the Department of Education — their stated goal shouldn’t be dismissed outright.

Here’s how Trump and his allies in Congress are already taking steps to dismantle the national tax agency, and what that could mean for your finances.

Trump’s plan

The Trump administration has already taken tangible steps to disrupt the IRS. According to the Associated Press, the agency has seen three leadership changes in a single week and is expected to lose tens of thousands of employees due to layoffs and voluntary retirement offers.

Abolishing the IRS entirely, however, poses a major challenge: how would the government fund its operations? Trump and Lutnick have proposed that tariffs, collected through a newly formed “External Revenue Agency” could replace the IRS.

“Let all the outsiders pay,” Lutnick said on Fox News.

But the math doesn’t add up. In 2023, the U.S. imported $3.1 trillion worth of goods but collected about $2 trillion in personal and corporate income taxes. According to the Peterson Institute for International Economics, “it is literally impossible for tariffs to fully replace income taxes.”

Republicans in Congress are proposing an alternative plan: replacing income tax with a national sales tax. Representative Earl "Buddy" Carter introduced the FairTax Act of 2025, which calls for a tax-inclusive rate of 23% beginning in the 2027 tax year.

However, the Tax Policy Center estimates that for every dollar spent, this would amount to taxpayers paying about 30 cents in federal sales tax for every dollar spent.

Whether these proposals will ever be fully implemented remains unclear. However, with serious discussions underway about tariffs and consumption taxes — and with the IRS facing significant internal disruption — American consumers should start preparing for the potential fallout.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

5 impacts on your finances

Experts say the Trump administration’s attempts to replace income taxes with tariffs or sales taxes could have five impacts on your personal finances.

• 1. Higher Costs: Perhaps the most noticeable impact is on costs. Tariffs and sales taxes raise the price of goods and services. As of April 9, the Yale Budget Lab estimates that the current tariff policies already cost the average household an additional $4,700 per year. Sales taxes are even more visible, showing up as a separate line item on receipts. Under the proposed 23% sales tax, a $30,000 car could cost $36,900.
• ** 2. Regressive Effects:** This shift would disproportionately impact lower-income households. A CEO earning millions may not feel the pinch of a price hike on a new car, but for a working family, that increase represents a significant portion of their annual income. The Peterson Institute’s analysis shows that the cost burden on low- and middle-income households is much greater than on the top 10% or 1% earners.
• 3. Market Volatility: Stock and bond markets could react negatively if the government’s revenue drops and isn’t fully offset by tariffs or sales taxes. A widening deficit could shake confidence and hit retirement portfolios, according to the Yale Budget Lab.
• 4. Risk of Recession: JP Morgan estimates a 60% chance of a recession triggered by an escalation in the trade war. A downturn, combined with rising prices and potential job losses, could mean families face the worst of both worlds: higher costs and lower income.
• 5. Job Losses: As industries react to higher tariffs and reduced consumer spending, layoffs could increase. Households may need to prepare for reduced job security in an already uncertain economic climate.

In light of these risks, it’s wise to revisit your financial plan. Consider expanding your emergency fund and adding a margin of safety to your family’s annual budget.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

Americans are growing increasingly worried that Elon Musk and the Department of Government Efficiency (DOGE) may be taking a metaphorical chainsaw to their retirement safety net.

A recent survey conducted by Clever Real Estate between March 5 and 9 found that 85% of U.S. adults are concerned about potential changes to their benefits, while 68% are worried about the future of the Social Security Administration (SSA).

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Gallup also found that fears surrounding the system’s future have recently reached a 15-year high.

Unsurprisingly, seniors who are already retired or approaching retirement are especially concerned. Roughly 73% of baby boomers — those born between 1946 and 1964 — told Clever Real Estate they were worried that the SSA’s ongoing austerity measures could impact their financial future.

Although only 55% of millennials share these concerns, changes to the Social Security system impact all taxpayers. That’s because 94% of American workers contribute to the pot every year, according to Rep. John Larson.

With that in mind, here are three simple money moves that can help shockproof your retirement income.

1. Monitor everything

With so much in flux, it’s easy to miss some major developments from the Trump administration or lawmakers on Capitol Hill.

Unfortunately, staying up to date may become a little more difficult. According to MarketWatch, the SSA is reportedly considering moving its public announcements from its official website to Elon Musk’s social media platform, X.

To stay informed, consider setting up an account on X if you haven’t already. You should also regularly log in to your Social Security account to monitor your earnings record and get benefit estimates. Setting up news alerts on your phone or email is another simple way to stay in the loop.

Frequently monitoring changes to the system can give you the time and flexibility to adjust your long-term financial plan and better protect your retirement income.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

2. Wait for FRA

The age at which you begin collecting Social Security can significantly impact your monthly benefits.

While you’re eligible to start receiving benefits as early as age 62 — provided you’ve paid into the system for at least 10 years — doing so means your benefits will be permanently reduced.

To receive your full benefit amount, you’ll need to wait until you reach your full retirement age (FRA). For anyone born in 1960 or later, the FRA is 67. Claiming benefits before this age result in smaller monthly checks, while delaying benefits beyond it — up to age 70 — can increase the amount you receive.

You can’t control potential changes to the Social Security system, but you can control when you start collecting benefits — making this one of the most powerful levers you have to maximize your retirement income.

3. Plan with an expert

Working with a financial professional can help you stay prepared for any changes to Social Security and build a solid plan around them.

Financial professionals are more likely to stay in the loop on the latest developments and are better equipped to explain how those changes could affect your personal finances.

According to Edelman Financial Engines, 52% of American adults believe they’re missing out on tax savings and benefits due to a lack of knowledge about sophisticated tax strategies. Nearly 45% said they would need professional help to properly plan for retirement.

Some of these strategies may take years, or even decades, to reach their full potential.

Even small tax savings today can lead to a significant boost in retirement income over time, especially if you have years left to let your investments grow. With that in mind, it’s a smart move to connect with an expert as soon as possible.

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• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

American TV host and philanthropist Mike Rowe believes there’s a “horror story” unfolding in the American labor market.

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“The stat that sticks with me and worries me today is 7.2 million able-bodied men, today in their prime working years, are not only unemployed … [they’re] officially not even looking,” he said in an interview with non-profit Moms For America.

Rowe did not provide a source for this statistic, but the number of prime-age men (ages 25 to 54) not participating in the labor market was around 7 million in March 2025, according to the Bureau of Labor Statistics. There is no information on whether they are “able-bodied” or not.

Rowe also pointed to the shortage of tradespeople in the U.S. and said the nation’s labor force is “wildly out of balance.” Here’s why many men have abandoned the formal economy.

Able-bodied men? Not really

According to the Bureau of Labor Statistics (BLS), men between the ages of 25 and 54 saw their labor force participation rate drop from 98% in September 1954 to 89.1% in March 2025.

To understand why men in their prime were participating less, the Bipartisan Policy Center (BPC) conducted a survey in 2024.

Fifty-seven percent of prime-age men not seeking work cited physical, mental or behavioral health reasons. Close to 30% said they are not working by choice, and 9% said they are busy caring for others. "This was significantly different from men who are looking for work, of whom only 16% said their physical or mental health was the main reason they were out of work," said the study.

Put simply, men who are not employed and not looking for work may not be as “able-bodied” or mentally fit as Rowe assumes. However, his thesis about an unbalanced labor market seems justified. Men seem to have acquired skills that are no longer a good fit for the labor market.

Fortunately, there are solutions for both issues.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Solving the male participation crisis

Since mental and physical health concerns are keeping many men out of the workforce, a better framework for supporting employees in the workplace could address some of the participation challenges.

A majority of men (52%) not looking for work in the Bipartisan Policy Center survey said that better health insurance coverage from their employers would be an important factor for them to consider going back to work.

Between 40% and 47% also said they would like to see paid sick leave, accommodations for disabilities, flexible working arrangements and mental health benefits.

Meanwhile, Rowe is trying to address the talent gap by compensating young Americans who try to gain new skills and enter sectors with severe talent shortages.

His foundation, mikeroweWORKS, has given out nearly $12 million in scholarships to over 2,000 recipients across the country since 2008.

President Trump this year signed an executive order titled “Preparing Americans for High-Paying Skilled Trade Jobs of the Future” to expand the Department of Labor’s Registered Apprenticeships program.

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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

Bill Gates is widely known as the billionaire who co-founded Microsoft, but one of the other factors that has contributed to his wealth is his pragmatic, relatively-conservative investment strategy.

For example, take the Bill & Melinda Gates Foundation Trust portfolio. Its investments include stakes in railways, waste management and fast food restaurants, which are considered relatively low-risk investments compared to other offerings. Gates is also the owner of nearly 270,000 acres of farmland across the U.S., according to The Associated Press.

However, one asset class that you won’t find in his well-diversified portfolio is cryptocurrency. In fact, the billionaire has long been a vocal critic of digital currencies.

"There are people with high I.Q.s who have fooled themselves on that one," the 69-year-old shared with The New York Times in a recent interview.

Here’s why the tech entrepreneur isn’t a fan of this digital asset class.

Crypto is too risky

Gates’ skepticism of Bitcoin and other crypto assets isn’t a recent phenomenon. Back in 2021, the tech billionaire said he wasn’t a fan of the asset because of its volatility.

“I do think that people get bought into these manias who maybe don’t have as much money to spare. So I’m not bullish on Bitcoin,” Gates shared with Bloomberg. He suggested that the unpredictable fluctuations in Bitcoin’s market price made it a better fit for those who were already financially secure, such as fellow billionaire Elon Musk.

“Elon has tons of money and he’s very sophisticated so I don’t worry that his Bitcoin will randomly go up or down,” Gates added. “My general thought would be that if you have less money than Elon then you should probably watch out.”

According to BlackRock’s calculations, Bitcoin is 3.9 and 4.6 times more volatile than gold and global equities, respectively. This volatility is clear to anyone who has seen a recent price chart of the asset — each Bitcoin traded at just USD$42,000 at the start of 2024 before hitting USD$106,000 by December, and then dropping back to USD$85,000 as of February, 2025.

For some, these wild ups and downs suggest the crypto asset class is still speculative, which makes it unsuitable for risk-averse investors. However, for someone with an appetite for risk, there is a way to add cryptocurrency exposure without compromising your overall portfolio.

Small speculative bets

Not all wealthy investors are as cautious as Gates, but even the most adventurous ones understand the need for a strategic approach with robust guardrails for their risky ventures.

Billionaire Mark Cuban, for instance, has been a fan of cryptocurrencies for several years. In 2017, he shared his approach to high-risk bets with Vanity Fair. “If you’re a true adventurer and you really want to throw the Hail Mary, you might take 10% and put it in Bitcoin or Ethereum,” he said. “But if you do that you’ve got to pretend you’ve already lost your money.”

Since the value of Bitcoin is up 1,300% since that interview aired, the potential upside may have justified the risk of losing 10% of your portfolio.

Musk seems to have taken a similar approach. As of 2025, there are 11,509 BTC on Tesla’s balance sheet collectively worth less than USD$1 billion — a fraction of the company’s market capitalization and Musk’s personal net worth.

With this in mind, investors with an appetite for risk and sizable investments in other secure assets can consider putting a small fraction of their portfolio in relatively risky (but fun) assets like cryptocurrencies.

Sources

1. DATAROMA: Bill & Melinda Gates Foundation Trust (Dec 31, 2024)

2. The Associated Press: Bill Gates owns a lot of American farmland, but not the majority by Philip Marcelo (May 2, 2022)

3. Daily Mail: Bill Gates’ withering assessment on wildly popular investment: ‘People with high IQs have fooled themselves’ by Tilly Armstrong (Feb 3, 2025)

4. Indy100: Bill Gates urges people not to make one hugely popular investment by Sinead Butler (Feb 4, 2025)

5. iShares: Bitcoin volatility guide: Trends & insights for investors by Jay Jacobs (July 11, 2024)

6. CoinMarketCap: Bitcoin price today

7. YouTube: Mark Cuban’s Guide to Getting Rich | Vanity Fair (Oct 8, 2017)

8. Bitcoin Treasuries: Bitcoin Treasuries

This article Bill Gates claims ‘people with high IQs’ have ‘fooled themselves’ with this 1 wildly popular investment — says Elon Musk can handle it, but too risky if you’re not rich. Do you own it?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.

If you’re planning your own retirement, you probably have a retirement savings goal in mind. Americans believe the “magic number” they need to retire comfortably is $1.26 million, according to a survey by Northwestern Mutual.

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Comparing your number with the actual net worth of retirement-age seniors should give you an idea of how realistic your long-term financial plan is and what kind of lifestyle you can expect in your golden years.

Since the average age Americans expect to retire is 66 and medicare is available to those 65 and older, we looked at the net worth of households led by seniors of ages 65 to 69. Net worth is the total value of everything owned minus what is owed (liabilities).

Here are the six levels of wealth for these senior-led households, based on the Federal Reserve’s Survey of Consumer Finances from 2022.

1. Financial vulnerable (Household net worth $69,500 and under)

Seniors with less than $69,500 in net worth fall into the bottom 25% of retirees. This group is particularly vulnerable to financial shocks and highly dependent on public safety net programs such as Social Security and Medicare.

If you’re approaching retirement with less than this number, it could be a good idea to look for additional income, more ways to save money or even a potential delay to your retirement so that you can be less vulnerable in your senior years.

2. Lower middle class (Household net worth between $69,500 and $394,300)

The median net worth of these households is $394,000, according to the Federal Reserve. That means if your wealth is under this benchmark, around half of all senior households in this age group are wealthier than you.

This cohort, which can best be described as lower-middle class, isn’t necessarily financially vulnerable. However, this is far from a comfortable retirement. Seniors in this wealth category may have to stick to a tight budget.

3. Solidly middle class (Household net worth between $394,300 and $1.16 million)

Seniors with a net worth that places them between the 50th and 75th percentiles could be described as middle class.

This means you have access to a more comfortable retirement. However, if much of your net worth is trapped in an illiquid asset, such as your house or private business, you may need to find ways to create liquidity in your senior years.

Even if your assets are liquid and easily accessible, you probably still need a stringent budget and conservative spending habits to ensure you don’t deplete your funds in retirement.

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4. Upper middle class (Household net worth between $1.2 million and $2.9 million)

Congratulations, you’re officially upper middle class. It’s possible you have even achieved the “magic number” for retirement savings according to most Americans.

A comfortable lifestyle is nearly guaranteed. However, it’s easy to succumb to lifestyle inflation and unnecessary splurges which can quickly erode your financial security.

5. Affluent (Household net worth $2.9 million or more)

Only the top 10% of senior households in this age bracket have a net worth above $2.9 million. These affluent retirees are usually former bankers, lawyers, C-suite executives or business owners who are accustomed to a lavish and financially unrestrained lifestyle.

If you’re a high earner who is currently planning for retirement, the gates to this affluent club should be within reach. However, you will need a robust savings habit and diligent investments over the long-term to get to this target.

6. Top 1% (Household net worth $21.7 million or more)

Only the top 1% in this category have a net worth over $21.7 million. This is the ultra-wealthy bracket that most Americans can only dream of belonging to.

Your retirement plan probably looks very unconventional. You may be less focused on budgeting and more focused on asset allocation, tax optimization and estate planning.

Dealing with this level of wealth could be complicated, especially if your assets are spread across multiple jurisdictions. This is why many ultra-wealthy seniors rely on an army of tax accountants, wealth managers, lawyers, investment advisors and senior bankers to help them navigate this exclusive arena.

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

Concerns about a lack of job-ready skills have dominated workforce debates, but Mike Rowe, CEO of the mikeroweWORKS Foundation, is pointing to another crisis: a diminishing desire to work.

“The skills gap is real, but the will gap is also real,” said the 63-year-old former TV host in a recent interview with Fox Business.

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According to him, 6.8 million “able-bodied men” are not just unemployed but not even seeking employment. “That’s never happened in peacetime,” he argued.

Here’s why he believes America’s famous work ethic is gradually eroding.

Men abandoning the workforce

Data from the Bureau of Labor Statistics (BLS) shows that women’s participation in the workforce has remained relatively stable since the early-1990s. However, men’s participation has steadily declined, dropping from 86.6% in 1948 to 68% in 2024.

According to the Bipartisan Policy Center (BPC), the participation rate for men in their prime working years (ages of 25 to 54) has fallen from 98% in September 1954 to 89% in January 2024.

Notably, 28% of these men said they were not working by choice, validating Rowe’s claim that the desire for employment has diminished. However, the survey also found that 57% of prime-age men cite mental or physical health issues as barriers to working or job-seeking, suggesting that many are not as “able-bodied” as Rowe assumes.

Additionally, 47% of these men cite a lack of training and education, obsolete skills, or a lacklustre work history as major obstacles to employment. Fortunately, Rowe has a solution for this specific group.

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Solving the crisis

Expanding opportunities for skills training could help bring some men back into the labor force.

Through his foundation, Rowe has given away $8.5 million in scholarships since 2008, supporting more than 1,800 men and women enrolled in skilled trades programs across the country.

“My goal with mikeroweWORKS is not to help the maximum number of people,” he told Fox Business. “It is to help a number of people who comport with our view of the world and are willing to go to where the work is. Who are willing to demonstrate something that looks a lot like work ethic here in 2025.”

Similarly, the BPC calls for expanding Pell Grant eligibility so that more people can access financial aid. As of 2024, roughly 34% of undergraduate students receive a Pell Grant, according to the Education Data Initiative.

Expanding workplace support programs could be key to reentering the workforce for men struggling with mental and physical health challenges. More than half of prime-age unemployed men surveyed by BPC said health insurance is a major factor in deciding whether to return to work.

Other critical benefits include paid sick leave, disability accommodations, flexible schedules and medical leave. Additionally, 40% of respondents said mental health benefits are very important, and 28% said they might have stayed at their previous job if they had access to paid medical leave.

While these solutions may be complex and expensive, improving male workforce participation could yield significant economic benefits, including lower inflation and higher growth, according to a 2023 study by the Center for American Progress.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

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