Author: Vishesh Raisinghani

On paper, Jackson’s debt-free status and $200,000 annual salary might look like an easy ticket to financial freedom.

But in reality, the 25-year-old heavy-duty mechanic from Canada admits he’s often staring at a bank account that doesn’t reflect his hard work or financial progress.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

“I get my paychecks and I pay my bills with it and then I don’t look at my account all that much,” he said on a recent episode of The Ramsey Show. “I just kind of know there’s always a good chunk of change in there and it usually fluctuates between $15,000 and 25,000.

“But it’s not really going ahead from there because I’m kind of just living, you know?”

Jackson’s situation isn’t unusual, but celebrity finance personality Dave Ramsey believes his “healthy disgust” with his lack of progress at such a young age certainly is. Here’s why many high-income people struggle to accumulate meaningful wealth.

Biggest mistake rich people make

Jackson’s difficulty holding onto his high income isn’t unique. Roughly 36% of Americans earning more than $200,000 a year say they live paycheck to paycheck, according to a 2024 study by PYMNTs.

Among those in this income bracket, 22.8% cited family expenses as the top reason they can’t save money. Another 17% pointed to poor saving and financial habits as the main reason they live paycheck to paycheck.

Lifestyle creep and untamed budgets appear to drive many people to spend as much — or even more — than they earn. According to Ramsey, the biggest mistake high earners make is a lack of intentionality with their money.

Jackson, however, is determined to avoid that mistake.

“I feel like I make too much money to not have some sort of a plan and I don’t want to feel like a fool who squanders a fortune,” he tells Ramsey, who responds with a compliment: “Just asking the question puts you in the top 5%, dude.”

Ramsey’s advice? Start with a robust budget.

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

Give every dollar a job

According to Ramsey, the only way to be intentional with your money is to set up a spending plan before the income arrives.

“We’re going to write it down — before the month begins — where every dollar is going to go,” he told Jackson. “Give every dollar an assignment. Contract with yourself. If you have a spouse, do it with your spouse.”

A tight monthly budget should help Jackson earmark cash for necessary expenses, discretionary spending, taxes and emergencies — and ideally leave extra for savings and investments. Working with a financial planner would also be ideal.

Unfortunately, only 27% of Americans use professional help for investment advice and services, according to a 2024 YouGov survey.

Most aren’t doing this work independently either. Just two in five Americans said they have a monthly budget or closely monitor their spending, according to the National Foundation for Credit Counseling.

In other words, a robust, professional budget is rare, which helps explain why living paycheck to paycheck is so common. You can avoid the same pitfalls by hiring a professional or setting up a solid budget of your own.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

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.

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 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.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

As a former Federal Reserve Chair and U.S. Treasury secretary, Janet Yellen isn’t new to economic management.

So when she told CNN that the current administration’s approach is a prime example of economic mismanagement, it carried some weight.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

Yellen specifically singled out President Donald Trump’s trade war and tariff policy as financially destructive. “This is the worst self-inflicted wound that I have ever seen an administration impose on a well-functioning economy,” the economist said in an April interview, warning that other policies being considered by the administration could potentially deepen these wounds further.

Here’s why Yellen is so alarmed by the ongoing trade conflict and why she believes her successor, Scott Bessent, holds the key to salvaging the global economy.

Huge financial shock

As of mid-April, many global tariffs announced on Trump’s so-called “Liberation Day” are on a 90-day pause, according to Bloomberg’s live tariff tracker.

However, this policy is constantly shifting and Yellen points out that some of the nation’s largest trading partners — China, Mexico and Canada — face varying degrees of tariffs despite the pause.

Chinese exports, for instance, currently face a 145% tariff, while Mexico and Canada face between 10% to 25% tariffs on goods that do not comply with the U.S.-Mexico-Canada Agreement (USMCA) trade deal.

“Economists calculate that at this point, average tariff levels are now in the 20% to 25% range,” Yellen told CNN. “At the beginning of the Trump administration, they were just over 2%. So even if the reciprocal tariffs are abandoned, we have the highest average tariff rate since 1934.”

For the average family, this ongoing trade war is likely to raise costs. A typical household could see roughly $4,700 in additional annual expenses based on the current tariff rate, according to The Budget Lab at Yale.

The lack of visibility on what this trade war could look like in just a few weeks or months is making matters worse, says Yellen. To bolster confidence, she calls on Bessent to communicate with the general public more clearly.

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

Bolstering credibility

According to Yellen, consumers, investors and corporations are struggling to adjust to the new reality because the tariff policy is “incoherent.” This is undermining the administration’s credibility.

She calls on Bessent and senior economic officials at the White House to do a better job communicating the trade policy not just with the general public, but also with Trump himself.

“All of them should be explaining to the president why his policies are so damaging to the American economy and why they will harm American workers and households, as well as people around the world,” Yellen said.

“And they should make sure that the president understands this reasoning, understands what impact it has been having on markets and why it’s so dangerous.”

Clarity and stability on economic policies may not reduce the costs of the ongoing trade war, but could make it easier for consumers and businesses to prepare for the impact.

For now, most families and businesses need to brace for higher costs, higher volatility and, potentially, lower income in the near-future.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

Rich Couture, a spokesperson for the AFGE SSA General Committee, a union representing roughly 42,000 Social Security workers, is sounding the alarm about the far-reaching impact of Elon Musk’s Department of Government Efficiency (DOGE) on the nation’s social safety net.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

In fact, he believes the cuts that have been announced so far could put the agency into a “death spiral.” Here’s why he is so concerned about the agency’s future.

Negative feedback loop

On paper, the Social Security Administration’s (SSA) planned cuts don’t look so extensive. Earlier this year, SSA acting commissioner Leland Dudek announced the federal agency would slash its workforce from 57,000 down to 50,000, which implies a 12.2 percent reduction to the workforce.

However, in an interview with Marketplace, Couture highlighted that the agency was already operating at a barebones level before these layoffs were implemented.

“Social Security is at a 50-year staffing low,” he said. “We currently have 57,000 workers serving about 73 million Americans, compared to fiscal year 2010, where we had 67,000 workers serving 60 million Americans. And we know by estimates that about 10,000 Americans turn age 65 every day — that’s when they become Medicare-eligible — and we handle Medicare applications … We haven’t been funded the way that we needed to be funded in order to keep up with this explosion in beneficiary growth, and it’s had real impact on service delivery and on productivity.”

Speaking to The Guardian, he expressed concern that cutting staff and shutting offices increases the workload for the remaining staff, which ultimately lowers morale and could lead to resignations.

This creates a “negative feedback loop,” he said, "until the agency ends up in a death spiral with staffing, inducing office closures."

Signs of chaos have already emerged. The Washington Post reported in March that the agency is “engulfed in crisis” with long waits, website crashes and office managers answering phones in place of receptionists.

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

"I’m hearing from Social Security recipients in MA who’ve been marked as ‘not currently receiving payments,’ on the Social Security website," Sen. Elizabeth Warren said on X, formerly Twitter, last month.

During his "Fighting Oligarchy Tour," Sen. Bernie Sanders also warned that the rapid layoffs and office closures are, “making it harder for people with disabilities and older people to get the benefits that they have paid into for their whole lives.”

Instead of responding to these concerns, Couture believes the Trump administration is likely to double-down on its firing spree in the months ahead.

"I don’t think they’re going to stop at 7,000 people lost," he said to The Guardian. "If they lose 10,000 or 12,000, they’re running up their high score. They’re able to brag about it."

If you’re worried about the future of this retirement safety net, here’s how you can prepare.

Protect yourself

Some lawmakers worry that the Trump administration’s actions and remarks about alleged fraud at Social Security are signs that it is on the path to privatization. There’s also concern about Social Security running out of money and being unable to pay full benefits starting in 2035.

Given the uncertainty about Social Security’s future, relying on this program to secure your retirement may no longer be prudent. Take the time to assess your financial situation and try to create a long-term, self-financed retirement plan.

For most Americans of working age, tax-sheltered investment accounts such as the Roth IRA and 401(k) are ideal spots for accumulating your nest egg.

A disciplined and consistent savings plan should help you create a diversified portfolio of assets by the time you are ready to retire.

Speak to a financial advisor who understands recent changes to government-sponsored programs and can help you prepare for a future without them.

If you’re a retiree, these experts may also be able to help you access the benefits you are entitled to or adjust your personal finances to a new reality.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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

In a digital post dripping with outrage, Georgia Republican Rep. Marjorie Taylor Greene echoed the claims made by Elon Musk and President Donald Trump, alleging widespread fraud within the Social Security system.

"Our own government just blindly sends checks to anyone and everyone whether citizen, non-citizen, dead or alive,” Greene said in a recent post on X, formerly Twitter. "We must end this malpractice and outright waste, fraud, and abuse. This is the mission of DOGE."

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

To be fair, the Congresswoman has a reputation for making baseless allegations and promoting conspiracy theories. In previous tweets, she has claimed that 9/11 was an inside job, Jewish people control a space laser that causes wildfires and that the Sandy Hook massacre was staged.

Her latest assertion — that cracking down on “widespread” fraud can save the Social Security Administration (SSA) $1 trillion — has also been debunked.

Here’s a closer look at why experts argue that while addressing waste and fraud is necessary, it’s not a silver bullet for the nation’s safety net.

Misleading claims

The claim that the Social Security Administration “blindly” sends out checks is misleading.

Non-citizens or foreign-born workers with legal permits pay into the system at the same rate as citizens but collect fewer benefits on average, according to the Bipartisan Policy Center.

Meanwhile, undocumented workers contributed an estimated $25.7 billion in Social Security taxes — typically through borrowed or fraudulent Social Security numbers. These individuals are not eligible to receive benefits.

While the agency isn’t immune to fraud and improper payments, the overall impact is minimal.

During a press conference on March 18, Lee Dudek, the agency’s acting commissioner, estimated that annual losses due to direct deposit fraud at roughly $100 million. That represents just 0.00625% of the $1.6 trillion the government distributes annually in Social Security benefits, according to the Brookings Institute.

That figure is nowhere close to Greene’s claims of $1 trillion per year on X. Her claim would amount to 62.5% of the SSA’s total projected payouts for 2025.

Nevertheless, the Congresswoman continues to insist that tighter identity verification procedures could help reduce fraud.

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

Stringent ID requirements

The SSA confirmed updated ID policies were implemented by April 14. Under the new rules, more people will need to visit a Social Security office in person to make changes to their direct deposit information.

Critics argue that these changes come at a time when the agency is still reeling from mass layoffs and office closures by the Trump administration’s Department of Government Efficiency. In February, the SSA announced a 12% reduction in its workforce and a reduction in field offices from 10 to 4, according to AARP.

“The customer service situation at Social Security has really declined in the past month or so,” Bill Sweeney, senior vice president of government affairs at AARP, told CNBC. He noted that the average wait time for the SSA’s 800 number rose from 11 minutes in November to 21.2 minutes.

This could be a good time to log in to your SSA account and double-check your details to ensure the agency has the correct information. If not, contact SSA to make any necessary corrections or updates and to avoid delays in receiving your benefits.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

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.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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.

Celebrities and athletes often aim to turn fame into fortune, but billionaire investor Mark Cuban warns they often mismanage their earnings.

During a podcast interview, Cuban shared blunt advice for those who suddenly come into wealth: “Don’t invest in the restaurant, don’t invest in the clothing label, don’t invest in the liquor company … or music,” he said. “That is the death!”

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10

Here’s why Cuban, a seasoned entrepreneur, avoids these flashy ventures with “no barriers to entry.”

Barriers to entry

Cuban’s advice to people with lots of money to invest is to hire somebody to manage it. "It cannot be your friend," he added. "It’s got to be somebody who’s done it for big time people."

He warns against investing in industries like clothing, restaurants, or liquor, calling them “too easy to enter…those businesses are hard because there’s no barriers to entry.”

Barriers to entry, as defined by the Corporate Finance Institute, are factors like regulations, licensing, technology, or patents that restrict competition and enhance profitability.

But navigating investments in complex industries with high barriers to entry typically requires professional expertise. Advisor.com can help you find the right experts to navigate these barriers.

Advisor.com (ADVR LLC), a Registered Investment Adviser, connects you with unaffiliated third-party RIAs through its matching tool and offers in-house guidance via Advisor Wealth Management (AWM).

With Advisor, you gain access to tailored strategies and professional advice to help you identify promising opportunities while avoiding common pitfalls.

In contrast to high-barrier opportunities, Cuban’s point is that launching a clothing line or restaurant requires minimal investment or expertise, making it easy for anyone to enter. This flood of competition reduces pricing power and profitability. Indeed reports the average profit margin for a full-service restaurant is just 3% to 5%.

Investors and entrepreneurs should keep an eye on the barriers to entry and whether they are backing a product that is truly exceptional.

Boring businesses (and alternatives)

Boring, unglamorous industries can act as barriers to entry simply because they lack broad appeal. Few dream of starting waste disposal firms or pest control services, but Cuban would probably agree that these industries can be lucrative for those willing to forgo bragging rights.

Legendary investor Warren Buffett has built a fortune by betting on "boring" businesses. As of Q3 2024, his portfolio includes companies like Chubb Limited (insurance) and DaVita (kidney treatment), demonstrating his knack for spotting undervalued, overlooked opportunities.

For guidance on navigating “boring” but profitable industries, you could turn to Moby, an investment research platform led by former hedge fund analysts.

Moby provides expert stock reports backed by hundreds of hours of research, breaking complex market data into simple insights. With stock picks outperforming the S&P 500 by nearly 12% over the past four years, Moby equips investors with a rare edge to uncover opportunities in undervalued sectors.

For example, when you consider the low competition and steady demand in industries like logistics, utilities, energy, or enterprise software, Moby can help you tap into these opportunities where profitability often thrives.

Premium subscribers also benefit from a 30-day money-back guarantee, making it a solid tool for making smarter, data-driven investment decisions.

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

Real estate

While "boring" businesses may thrive in overlooked niches, real estate offers an alternative way to invest in steady, income-generating assets.

Real estate offers a stable option for those seeking long-term income generation and inflation-resistant growth. Whether through residential properties, commercial developments, or specialty niches, real estate has proven its resilience during volatile economic periods.

For example, First National Realty Partners (FNRP) specializes in grocery-anchored retail properties, a sector known for resilience during economic volatility. FNRP gives accredited investors access to expert guidance and a team that manages every aspect of the investment process – from due diligence and leasing, to property management and upside.

By leasing to essential-needs brands like Kroger, Walmart, and Whole Foods, FNRP creates opportunities for passive income and inflation-hedged growth via a personalized investor portal.

New investing platforms are also making it easier than ever to tap into the residential real estate market.

For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted internal returns ranging from 12% to 18%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

If you’re not an accredited investor, crowdfunding platforms like Arrived allows you to enter the real estate market for as little as $100.

Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, curated and vetted for their appreciation and income potential.

Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.

Artwork

Alternative investments like art have become increasingly popular among investors looking to diversify beyond traditional asset classes.

Historically, fine art has shown resilience during market downturns and the potential for strong returns, making it an attractive option for savvy investors seeking low-volatility assets. The good news is that art investing, once limited to accredited investors and ultra-wealthy, is now accessible to everyday investors through platforms like Masterworks.

Specializing in blue-chip works by artists like Basquiat, Masterworks [fractionalizes ownership] of iconic pieces. With every one of its 23 art sales yielding profits, Masterworks is revealing the value of art as a solid alternative asset.

Masterworks takes care of all the heavy lifting from buying the paintings, to storing them, to selling them opportunistically for you — no art experience required.

See important Regulation A disclosures at Masterworks.com/cd

Gold

For centuries, gold has served as a trusted store of value, especially during economic uncertainty. As a hedge against inflation and a stabilizer for fluctuating markets, gold remains a cornerstone of diversified portfolios.

Opting for a gold IRA gives you the opportunity to invest directly in physical precious metals rather than stocks and bonds.

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

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 looking to potentially hedge their retirement funds against economic uncertainties.

To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.

What to read next

• Don’t have the cash to pay Uncle Sam in 2025? You may already be eligible for a ‘streamlined’ handshake with the IRS — here’s how it works and how it can potentially save you thousands
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in great wealth. How to get in now

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