Certificates of Deposit (CDs) work similarly to online savings accounts or money market accounts in terms of offering great returns with zero risk. The difference is, CDs “lock your money up” for a specified period of time. To access your funds before the term ends, you’ll have to pay a penalty.

Although CDs offer less liquidity than a regular checking account or savings account, you might get a higher rate of return with this financial product. This is especially true if you open a CD account with a longer timeline; for example, a 60-month CD instead of a 12-month CD.

According to the Federal Deposit Insurance Corporation (FDIC), national average CD rates range from 1.33% to 1.76% depending on the CD term, as of writing.

However, quite a few banks offer vastly superior CD rates to consumers who do their research. We compared dozens of banks and financial institutions to find the best CD rates today. If you’re on the hunt for a high-yield CD, start your search here.

Important Factors for Certificate of Deposit Accounts

• CDs are for long-term savings. Since CDs lock your funds into the account for a specific term (usually 12 to 60 months), they aren’t ideal for money you might need to access in the short term.

• CDs offer security for your funds. CD accounts are a secure place to stash your money and earn interest, thanks to FDIC insurance.

• Check for CD fees. Most CDs charge fees if you need to access your money early. Make sure you understand these fees before opening this deposit account.

• Online banks might offer better rates. Although brick-and-mortar banks offer their own CDs, you might find better rates through online banks. Compare legacy banks and online institutions to find the best CD rates.

If your goal is securing a superior short-term investment, the best CD rates are worth exploring. To help in your search, we compared many of the top financial institutions and online banks to find options with the most attractive rates and terms.

Find the Highest CD Rates from Banks and Credit Unions

Explore and contrast the top certificates of deposit (CDs) rates based on the highest Annual Percentage Yield (APY), spanning various terms including 3-month, 6-month, 1-year, 2-year, and 5-year options.

Bank	Rate	Term
Western Alliance Bank	5.51%	9 Months
Greenstate Credit Union	5.50%	10 Months
Ponce Bank	5.50%	9 Months
Sallie Mae Bank	5.40%	14 Months
Sallie Mae Bank	5.30%	10 Months
Blue Federal Credit Union	5.25%	15 Months
Lemmata Savings Bank	5.20%	9 Months
Patriot Bank	5.15%	13 Months
Blue Federal Credit Union	5.10%	No Penalty

The banks below made our ranking due to the interest rates they offer and other features.

• PNC 
• CIT Bank
• Discover
• Marcus by Goldman Sachs
• Synchrony Bank

Best Certificate of Deposit Accounts – Reviews

There are a few factors to consider when choosing where to open a certificate of deposit. These include whether you want to open your CD in person or online, the rates and terms that apply, and the fees required to access your money early.

The following reviews explain the CD rates for each of the top banks we profile and other details you should know.

PNC Bank

PNC Bank offers a variety of popular banking products, including certificates of deposit. Its CDs don’t require any monthly maintenance fees, and you can monitor your account at any time online or with the BBVA mobile banking app.

CD terms range from 7 days to up to 10 years, and CDs with longer timelines pay higher CD rates. Note that penalties apply if you access your money early.

If you cash out your CD early, with a term of one year or less, you’ll pay $25 plus 1% of the amount withdrawn. If you cash out a CD with a longer-term early, you’ll pay $25 plus 3% of the amount you cash out.

CD Rates: Online CDs with terms from 11 months to 36 months currently pay up to 5.04% APY.

CIT Bank

CIT Bank is known for its popular high-yield savings account, known as Savings Builder, but it also offers an array of CDs with excellent terms. Its 11-month, no-penalty CD stands out since it offers an excellent return rate. There are also no penalties if you need to access your money early.

CIT Bank also offers term CDs with various other lengths, as well as jumbo CDs for deposits of $100,000 or more. None of its CDs come with account opening fees or account maintenance fees.

CD Rates: CIT Bank currently pays from 0.30% to 5.15% APY on their CDs, depending on the term you choose. Top rates are offered on their 18 month CDs, which pay out 5.30% APY, respectively. Additionally, they have an excellent 11-month No-Penalty CD at 5.10% APY as of the time of this writing (09/26/23.)

Discover

With Discover, you can open a CD that lasts anywhere from three months to 120 months. There are no fees to open a CD, including account opening fees or maintenance fees, although their minimum opening deposit is $2,500.

Discover also stands out due to the reasonable penalties it charges if you need to access your money early. CDs with a term of less than one year, incur a penalty at three months of simple interest. For a CD that lasts one to four years, the penalty for cashing out early is just six months of simple interest.

CD Rates: The 120-month (10-year) CD is most rewarding, currently offering 3.80% APY, but that’s a long time to wait. If you’re willing to part ways with your funds for just 12 months, you can earn a rate of 5.00%.

Marcus by Goldman Sachs

Marcus by Goldman Sachs is a popular online bank for personal loans and high-yield savings accounts, yet it also offers rewarding CDs. Terms for its CDs range from seven months to six years, with a minimum $500 deposit to get started.

Marcus by Goldman Sachs even offers a 10-day guarantee that says you can move your rate up if the advertised rates on the CD you purchased increase within 10 days.

CD Rates: Some of the best CD rates from Marcus by Goldman Sachs are for its 9-month CDs, which currently pay 5.10% APY. Marcus by Goldman Sachs also offers limited-time CD rate promotions, like 5.25% on an 18-month CD.

What Holds It Back: Marcus by Goldman Sachs is an online bank only, so you don’t have the option to open your CD in person.

Synchrony Bank

We chose Synchrony Bank for our ranking because it doesn’t impose a minimum balance requirement, yet has competitive CD rates. It offers a 15-day guarantee, which lets you raise your rate if the advertised rate increases within 15 days of your CD purchase.

Terms are available from three months to 60 months. Early withdrawal fees for their CDs are also reasonable. For example, early cash-outs on CDs with terms of 12 months or less charge 90 days of simple interest at the current rate.

CD Rates: Five-year (60-month) CDs currently pay 4.00% APY, and three-year (36-month) CDs pay 4.30% APY. They also have a 16 month paying 5.40%

What Holds It Back: Synchrony Bank CDs are meant to be opened and maintained online, so you consider a different bank if you’re hoping for a personalized experience or you prefer to bank in person.

How We Found the Best CD Rates

Finding the best CD rates is important if you want to maximize returns on your savings, yet there are other factors to consider before opening an account. We considered the following factors when compiling this list of banks with the best CD rates of 2023:

Rates and Terms

Although we gave preference to banks that apply the best rates to various CD terms, we focused on banks that offer at least one CD with an APY that is at least double the average CD rate nationwide.

BBVA didn’t score well in this category, yet we included them due to their lack of account fees and a strong reputation among major U.S. financial institutions.

Account Fees

We only considered banks that don’t charge fees to open a CD account. We also chose banks that don’t charge any monthly account maintenance fees.

Early Withdrawal Penalties

Most banks charge an early withdrawal fee if you cash out your CD early, so we looked for banks with reasonable penalties. We also gave preference to accounts or CD options that don’t charge any penalty for early withdrawals.

FDIC Insurance

Finally, we only included institutions in our ranking that offer FDIC insurance. This insurance secures up to $250,000 of CD funds per account holder.

What You Need to Know About Certificates of Deposit

If you have never opened a certificate of deposit before, you might wonder how they work and why people choose this option. Here are some important factors when considering a CD account.

• CDs offer superior rates compared to other deposit products. According to recent figures from the FDIC, the average national CD rate for a 60-month term is about four times greater than the average national savings account rate.

• Longer CDs offer better yields. Committing your money to a longer timeline can lead to considerably higher returns. FDIC data shows that the average APR for a one-month CD is only .02% — not much better than a basic savings account.

• CD rates can go up or down over time. CD rates are determined based on the current interest rate environment, including benchmark interest rates. This means that you might get a better CD rate any time benchmark interest rates go up.

• CD rates can be higher on larger amounts. If you have $100,000 or more to deposit, you might qualify for a “jumbo CD”. This type of CD requires a high minimum deposit, but banks are willing to pay higher APYs to lock in more funds.

Summary: Best CD Account Rates of October 2023

	BEST FOR	AVAILABLE CD TERMS	BEST RATE OFFERED
Raisin (SaveBetter)	Short-term, no penalty	1 month to 14 months	5.51%
PNC	Long-term CD options	1 month to 10 years	Up to 0.04% APY
CIT Bank	11-month, no-penalty CD option	1 month to 5 years	4.65% APY
Discover	Reasonable penalties for early withdrawals	Three months to 10 years	5.00% APY
Marcus by Goldman Sachs	Low minimum deposit requirement	Seven months to six years	4.30% APY
Synchrony Bank	15-day rate guarantee	Three months to five years	5.00% APY

The Bottom Line – Locking in the Highest CD Rates

Investing in a certificate of deposit (CD) is one of the safest ways to grow your money. CDs are low-risk investments with guaranteed returns, so they can be an excellent choice for those looking to diversify their portfolios and lock in higher interest rates.

When choosing a CD, it’s important to compare APYs (annual percentage yields) and terms between different banks and credit unions in order to get the best rate possible. Shop around for promotional offers or talk to financial advisors if you need help selecting the right CD for your needs.

With careful research and comparison, you’ll be able to find the CD that gives you the highest rate – and peace of mind – in the long run.

The post Best Bank CD Rates for 2023 appeared first on Good Financial Cents®.

When I became an accredited investor, I found myself among an elite group with the financial means and regulatory clearance to access investments that many couldn’t. This opened doors to exclusive realms like hedge funds, venture capital firms, specific investment funds, private equity funds, and more.

Even though I had this “exclusive access” it took me a while to start investing in alternative asset classes.

The Securities and Exchange Commission states that as an accredited investor, I possess a level of sophistication that equips me to craft a riskier investment portfolio than a non-accredited investor. While this might not be universally true for everyone, in my case, I had demonstrated the financial resilience to bear more risk (see barbell investing), especially if my investments took an unforeseen downturn.

One of the intriguing aspects I discovered was that investment opportunities for accredited investors aren’t mandated to register with financial authorities. This means they often come with fewer disclosures and might not be as transparent as the registered securities available to the general public.

The underlying belief is that my status as a sophisticated investor implies a deeper understanding of financial risks, a need for less disclosure of unregistered securities, and a conviction that these exclusive investment opportunities are apt for my funds.

On a personal note, as a practicing CFP®, I haven’t always worked with accredited investors. Early in my career, I didn’t quite grasp the allure. However, as time went on, I began to see the broader spectrum of investment options available to accredited investors.

As I learned more the clearer it became why this realm was so sought after. The variety and potential of these exclusive opportunities were truly eye-opening, reshaping my perspective on the world of investing.

Introduction to Accredited Investors

An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. They are entitled to this privileged access because they satisfy one or more requirements regarding income, net worth, asset size, governance status, or professional experience.

The concept of an accredited investor originated from the idea that individuals or entities with a higher financial acumen or more resources are better equipped to understand and bear the risks of certain investment opportunities.

Historically, the distinction between accredited and non-accredited investors was established to protect less experienced investors from potentially risky or less transparent investment opportunities.

Regulatory bodies, such as the U.S. Securities and Exchange Commission (SEC), have set criteria to determine who qualifies as an accredited investor, ensuring that they have the financial stability and sophistication to engage in more complex investment ventures.

Criteria for Becoming an Accredited Investor

To be classified as an accredited investor, one must meet specific criteria set by regulatory bodies:

Criteria	Description
Income Requirements	An individual must have had an annual income exceeding $200,000 (or $300,000 for joint income with a spouse) for the last two years, with the expectation of earning the same or a higher income in the current year.
Net Worth Requirements	An individual or a couple’s combined net worth must exceed $1 million, excluding the value of their primary residence.
Professional Credentials	Recent updates have expanded the definition to include individuals with certain professional certifications, designations, or other credentials recognized by the SEC. Examples include Series 7, Series 65, and Series 82 licenses.
Business Entities	Entities, such as trusts or organizations, with assets exceeding $5 million can qualify. Additionally, entities in which all equity owners are accredited investors may also be considered accredited.

Best Investment Opportunities for Accredited Investors

Here’s a rundown of some of the top investments for accredited investors…

1. Fundrise

• Minimum Investment: $500

• Best for Newbie Investors

Fundrise has revolutionized the real estate investment landscape. By democratizing access to real estate portfolios, it allows individuals to invest without the complexities of property management or the need for vast capital. The platform’s innovative approach provides exposure to a traditionally lucrative, yet often inaccessible, sector of the market

Through Fundrise, investors can access a diversified range of properties, from commercial ventures to residential units. The platform’s expert team curates these portfolios, ensuring a balance of risk and reward. With its user-friendly interface and transparent reporting, Fundrise has become a top choice for many venturing into real estate investments.

How It Works

Investors start by choosing a suitable investment plan on Fundrise. Once invested, the platform pools the funds with other investors and allocates them across various real estate projects. As these properties generate rental income or appreciation in value, investors receive returns in the form of dividends or appreciation.

Pros & Cons

2. Equitybee

• Minimum Investment: $10,000
• Best for: Experienced Investors

Equitybee offers a unique platform that bridges the gap between private companies on the cusp of going public and potential investors. This innovative approach provides a golden opportunity for investors to tap into the potential of startups and other private firms before they make their public debut.

The platform’s primary focus is on employee stock options. By allowing investors to invest in these options, they can potentially benefit from their appreciation as the company grows. With a vast array of companies, from emerging startups to established giants, Equitybee presents a diverse range of investment opportunities.

How It Works

Investors browse available stock options from various companies on Equitybee. Once they choose an option, they invest their funds, which are then used to purchase the stock options from the employees. If the company goes public or gets acquired, the investor stands to gain from the increased value of these stocks.

Pros

• Access to pre-IPO companies.

• A diverse range of startups and established firms.

Cons

• Platform fee of 5%.

• Potential risks associated with private market investments.

3. Percent

• Minimum Investment: $500

• Best for Novice Investors

Percent stands as a beacon in the vast sea of the private credit market, illuminating a sector often overshadowed by traditional investments. This burgeoning market, valued at over $7 trillion, consists of companies borrowing from non-bank lenders. Percent offers a unique vantage point into this market, allowing investors to diversify their portfolios beyond typical stocks and bonds.

The allure of Percent lies in its ability to offer shorter terms and higher yields, combined with investments that are largely uncorrelated with public markets. This makes it an attractive proposition for those looking to step away from the volatility of traditional markets.

How It Works

Upon joining Percent, investors are presented with a plethora of private credit opportunities. After selecting an investment, funds are pooled with other investors and lent out to companies seeking credit. As these companies repay their loans, investors earn interest, providing a steady income stream.

Pros

• Access to the burgeoning private credit market.

• Potential for higher yields.

Cons

• Requires understanding of private credit dynamics.

• Less liquidity compared to public markets.

4. Masterworks

• Minimum Investment: $10,000

• Best for Novice Investors

Masterworks paints a vivid picture of art investment, blending the worlds of finance and fine art. Traditionally, investing in art was a luxury reserved for the elite. However, Masterworks has democratized this, allowing individuals to buy shares in artworks from world-renowned artists.

The platform’s strength lies in its expertise. From authentication to storage, every facet of art investment is handled meticulously. This ensures that investors can appreciate both the beauty of their investments and the potential financial returns.

How It Works

After registering on Masterworks, investors can browse a curated selection of artworks. They can then purchase shares, representing a fraction of the artwork’s value. Masterworks take care of storage, insurance, and eventual sale. When the artwork is sold, investors share the profits based on their ownership.

Pros

• Opportunity to diversify with fine art.

• Managed by art experts.

Cons

• The art market can be unpredictable.

• Long-term investment horizon.

5. Yieldstreet

• Minimum Investment: $15,000

• Best for: Advanced Investors

Yieldstreet stands at the intersection of innovation and alternative investments. It offers a smorgasbord of unique investment opportunities, ranging from art to marine finance. For those looking to venture beyond the beaten path of traditional stocks and bonds, Yieldstreet presents a tantalizing array of options.

The platform’s allure lies in its curated selection of alternative investments, each vetted by experts. This ensures that while investors are treading unconventional grounds, they’re not stepping into the unknown blindly.

How it Works

Investors begin by browsing through the diverse investment opportunities on Yieldstreet. After selecting their preferred asset class, their funds are pooled with other investors and allocated to the chosen venture. Returns are generated based on the performance of these assets, be it through interest, dividends, or asset appreciation.

Pros

• Wide range of alternative investments.

• Potential for high returns.

Cons

• Some niches may be too specialized.

• Requires a deep understanding of chosen investments.

6. AcreTrader

• Minimum Investment: $10,000

• Best for Newbie Investors

AcreTrader, as its name suggests, brings the vast expanses of farmland to the investment table. It offers a unique opportunity to invest in agricultural land, combining the stability of real estate with the evergreen nature of agriculture. With the global population on the rise, the value of fertile land is only set to increase.

The platform meticulously vets each piece of land, ensuring only the most promising plots are available for investment. This rigorous process ensures that investors are planting their funds in fertile ground, poised for growth.

How It Works

Investors peruse available farmland listings on AcreTrader. After selecting a plot, they can invest, effectively owning a portion of that land. AcreTrader manages all aspects, from liaising with farmers to ensuring optimal land use. Investors earn from the appreciation of land value and potential rental income.

Pros

• Stable, tangible asset.

• Potential for steady returns.

Cons

• Returns may be slower compared to other platforms.

• Limited to U.S. farmland.

7. EquityMultiple

• Minimum Investment: $5,000

• Best for: Experienced Investors

EquityMultiple is a testament to the power of collective investment in the real estate sector. By leveraging the principles of crowdfunding, it offers a platform where multiple investors can pool their resources to finance high-quality real estate projects. This collaborative approach allows for diversification and access to projects that might be out of reach for individual investors.

The platform’s strength lies in its curated selection of real estate opportunities, ranging from commercial spaces to residential properties. With a team of seasoned real estate professionals at the helm, EquityMultiple ensures that each project is vetted for maximum potential and minimal risk.

How It Works

Upon joining, investors can explore a variety of real estate projects. After committing to a project, their funds are pooled with other investors to finance the venture. Returns are generated through rental incomes, property appreciation, or the successful completion of development projects.

Pros

• Diverse real estate opportunities.

• Managed by real estate professionals.

Cons

• Market risks associated with real estate.

• Longer investment horizons.

8. CrowdStreet

• Minimum Investment: $25,000

• Best for: Advanced Investors

CrowdStreet stands as a pillar in the commercial real estate investment domain. With its vast experience and industry connections, it offers a platform where investors can tap into prime real estate projects across the nation. From bustling urban centers to tranquil suburban locales, CrowdStreet provides a diverse range of investment opportunities.

The platform’s expertise ensures that each project is meticulously vetted, offering a blend of potential returns and stability. For investors looking to delve into commercial real estate without the hassles of property management, CrowdStreet is an ideal choice.

How It Works

After registration, investors can browse a myriad of commercial real estate offerings. Upon investing in a project, CrowdStreet manages the investment, providing regular updates and ensuring optimal project execution. Investors earn returns based on the project’s performance, be it through rentals, sales, or project completions.

Pros

• Access to prime commercial properties.

• Established platform with a proven track record.

Cons

• High minimum investment.

• Market dependency for returns.

9. Mainvest

• Minimum Investment: $100

• Best for Newbie Investors

Mainvest offers a refreshing twist in the investment landscape, focusing on the heart and soul of the American economy: local businesses. From quaint cafes to innovative startups, Mainvest provides a platform where investors can support and benefit from the growth of small businesses in their communities.

The platform’s community-centric approach ensures that investments are not just about returns but also about fostering local economies. For those looking to make a difference while earning, Mainvest presents a unique opportunity.

How It Works

Investors can explore various local businesses seeking capital on Mainvest. By investing, they essentially buy a revenue-sharing note, earning a percentage of the business’s gross revenue until a predetermined return is achieved.

Pros

• Support and invest in local businesses.

• Low minimum investment.

Cons

• Risks associated with small business investments.

• Returns might be slower compared to other platforms.

10. Vinovest

• Minimum Investment: $1,000

• Best for Novice Investors

Vinovest uncorks the world of wine investment, offering a blend of luxury, history, and financial growth. Fine wines have been a symbol of opulence for centuries, and Vinovest provides a platform where this luxury becomes an accessible investment.

With a team of wine experts guiding the way, the platform ensures that each wine is not just a drink but an investment poised for appreciation. From sourcing to storage, Vinovest handles every facet, ensuring the wine’s value grows over time.

How It Works

After signing up, investors set their preferences and investment amounts. Vinovest then curates a wine portfolio based on these preferences, handling sourcing, authentication, and storage. As the wine appreciates, so does the investor’s portfolio.

Pros

• Unique investment opportunity in fine wines.

• Managed by wine connoisseurs.

Cons

• Long-term holding for optimal returns.

• The market is influenced by external factors like climate.

11. Arrived Homes

• Minimum Investment: $100

• Best for Novice Investors

Arrived Homes offers a fresh perspective on real estate investment, focusing on the charm of single-family homes. While skyscrapers and commercial complexes often dominate real estate discussions, single-family homes offer stability, consistent returns, and a touch of nostalgia.

The platform’s strength lies in its focus. By concentrating on single-family homes, it offers investors a chance to tap into a stable real estate segment, benefiting from both rental income and property appreciation.

How It Works

Investors browse available properties on Arrived Homes. After selecting a property, they can invest in shares, representing a portion of the home’s value. As the property is rented out, investors earn a share of the rental income. Additionally, any appreciation in property value benefits the investors.

Pros

• Low minimum investment.

• Quarterly dividends.

Cons

• New platform with a shorter track record.

• Limited to single-family homes.

12. RealtyMogul

• Minimum Investment: $5,000

• Best for: Novice to Experienced Investors

RealtyMogul stands tall in the commercial real estate investment landscape. It offers a platform where diversification meets opportunity, presenting a range of commercial properties for investment. From bustling office spaces to serene residential complexes, RealtyMogul provides a plethora of options for investors to expand their portfolios.

The platform’s prowess lies in its dual approach. Investors can either dive into non-traded REITs or make direct investments in specific properties. This flexibility ensures that both novice and experienced investors find opportunities that align with their investment goals.

How It Works

Upon joining RealtyMogul, investors can choose between REITs or direct property investments. Their funds are then channeled into these real estate ventures. Returns are generated through rental incomes, property sales, or successful project completions.

Pros

• Wide range of commercial properties.

• Both REITs and direct investments are available.

Cons

• Market risks inherent to real estate.

• Higher minimums for direct investments.

The Future of Accredited Investing

The world of accredited investing is dynamic and ever-evolving. Emerging trends suggest a shift towards democratizing investment opportunities, with regulatory bodies considering more inclusive criteria for accredited investor status. This shift aims to balance the need for investor protection with the recognition that financial acumen can come from experience and education, not just wealth.

Furthermore, technological advancements are playing a pivotal role. The rise of blockchain and tokenized assets, for instance, is creating new avenues for investment and might reshape the landscape of opportunities available to accredited investors.

As the line between traditional and alternative investments blurs, the future promises a more integrated, inclusive, and innovative environment for accredited investors.

The Bottom Line – Top Investments for Accredited Investors

Understanding the role and opportunities of accredited investors is crucial in the modern financial landscape. While the distinction offers privileged access to unique investment opportunities, it also comes with increased risks and responsibilities.

As the world of investing continues to evolve, potential accredited investors are encouraged to stay informed, conduct thorough research, and seek professional advice. The realm of accredited investing, with its blend of challenges and opportunities, promises exciting prospects for those ready to navigate its complexities.

The post 13 Best Investment Opportunities for Accredited Investors appeared first on Good Financial Cents®.

From its humble beginnings in 2008 to today, Bitcoin’s history has been relatively short but very eventful. The original protocol for this popular digital currency was created in 2008 by Satoshi Nakamoto, believed to be a pseudonym for an unknown developer or group of developers. 

Nakamoto launched the Bitcoin network just a year later and began mining the currency— an estimated 1 million bitcoins were mined in the early years.

The creator(s) of this first-of-its-kind asset developed the cryptocurrency in response to the Great Recession of 2007-2009, spurred by a distrust of the traditional banking system and concerns about its stability. 

Given the recent values of Bitcoin, it’s hard to believe the currency first started trading on exchanges in 2010 at under $0.10. Since then, it’s experienced astronomical growth and some pretty wild price swings.

At its most recent high, one bitcoin was worth over $64,000—a far cry from trading for pennies in its earliest days. 

Whether you’re thinking of investing in Bitcoin or you’ve held this cryptocurrency for several years, it’s fun to look back at this groundbreaking asset’s history. Read on for insights on Bitcoin milestones, historical returns, and how its returns compare to those of other assets.

Bitcoin Performance Milestones

Since being created, Bitcoin has experienced several milestones. Here’s a look back at some of the most significant moments in the short history of this cryptocurrency:

• In March 2010, Bitcoin began trading on the now-defunct Bitcoin Market, one of the first-ever cryptocurrency exchanges.

• A Florida man named Laszlo Hanyecz bought pizza with 10,000 bitcoins in May 2010, making it the first time anyone used the currency to purchase something.

• In June 2011, Bitcoin saw its first significant price spike, climbing to a value of $29.60 (up from just $0.30 in January) before declining again later that year.

• The second half of 2013 marked another major spike—from $68 on July 4th to $1,237 on December 3rd before declining again.

• One of Bitcoin’s most significant increases happened in 2017, with its value surging from around $1,000 at the start of the year to $19,345 by mid-December. 

• The Bitcoin hype cooled in 2018, resulting in significant declines—its lowest value was around $3,232 in December of that year.

• In 2019, Bitcoin saw another spike, hitting $13,813 on June 26th before declining.

• After seeing modest ups and downs through October 2020, Bitcoin’s value began to surge again. It hit an astronomical high of over $68,000 in November 2021.

• Bitcoin dropped by over 75% in 2022

• Bitcoin continues to hover around the $30k mark in 2023

Bitcoin Total Return (10 Year, 5 Year, 3 Years, 1 Year)

While Bitcoin isn’t exempt from the volatility cryptocurrencies often experience, it’s delivered some impressive returns over the years. Here’s a look at Bitcoin’s annual returns from 2010 to 2022:

Bitcoin 10-Year Return Chart
Year	Return (%)
2011	1,473
2012	186
2013	5,507
2014	-58
2015	35
2016	125
2017	1,331
2018	-73
2019	95
2020	301
2021	90
2022	-81.02

And here’s a look at monthly returns, if you feel like getting a deeper dive:

Bitcoin Monthly Returns
Year	Jan.	Feb.	Mar.	April	May	June	July	Aug.	Sept.	Oct.	Nov.	Dec.
2010	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	210.99%	N/A	44.09%
2011	73.33%	65.38%	-8.77%	346.09%	149.71%	84.21%	-17.08%	-38.58%	-37.32%	-36.77%	-8.62%	58.92%
2012	16.10%	-11.31%	N/A	N/A	4.65%	29.15%	39.76%	8.66%	22.05%	-9.68%	12.23%	7.48%
2013	51.07%	63.55%	178.70%	49.66%	-7.48%	-24.31%	8.92%	32.76%	0.64%	48.82%	470.94%	-33.15%
2014	16.49%	-38.87%	-22.53%	0.22%	10.90%	1.15%	-7.18%	-18.28%	-19.43%	-12.96%	10.97	-15.12%
2015	-31.34%	16.27%	-3.90%	-3.43%	-2.52%	14.91%	7.42%	-19.12%	2.82%	31.92%	21.44%	13.75%
2016	-13.98%	17.95%	-4.71%	7.91%	17.92%	26.68%	-7.19%	-7.72%	5.97%	14.89%	6.27%	29.75%
2017	0.22%	23.18%	-9.26%	25.28%	70.38%	7.70%	16.23%	64.23%	-7.91%	47.94%	54.18%	39.25%
2018	-25.88%	0.67%	-32.86%	33.25%	-18.85%	-14.71%	20.79%	-9%	-5.67%	-4.06%	-36.54%	-8.18%
2019	-7.34%	11.04%	7.49%	29.70%	60.85%	36.41%	-6.81%	-4.84%	-13.65%	10.48%	-17.55%	-4.64%
2020	29.91%	-8.62%	-24.94%	34.56%	9.57%	-3.38%	24.06%	2.74%	-7.46%	28.04%	42.77%	46.97%
2021	14.37%	36.41%	30.11%	-1.78%	-35.38%	-6.09%	18.63%	13.42%	-7.02%	39.90%	-7.22%	-18.75%
2022	-16.70%	12.18%	5.41%	-17.3%	-15.56%	-37.32%	16.95%	-13.99%	-3.1%	5.53%	-16.26%	-0.86%
2023	39.83%	0.02%	23.1%	2.73%	-6.96%	11.97%	-4.07%

While Bitcoin has experienced some wild monthly price swings and a couple of years where its value has declined, you can see that its declines have been eclipsed by some incredible gains. Now let’s explore how Bitcoin’s value has changed over 10, 5, 3, and 1 years.

Bitcoin 10-Year Return

Let’s say you bought one bitcoin on August, 3rd 2013, for $1,106.75, its price at the time. If you held that one bitcoin until August 3rd, 2023, it would’ve been worth $29,310.44, and your total ROI for the 10 years would be 2,546.8%.

Bitcoin 5-Year Return

We’ll also assume you purchased one Bitcoin for this example. A single bitcoin was valued at $965.31 on August, 3rd, 2018, and its value climbed to $29,310.44 by August 2023. Using our calculation above, your total ROI for those five years would be 294.1%.

Bitcoin 3-Year Return

A single bitcoin was valued at $11,246.20 in August 2020, and its value climbed to $29,310.44 at the end of 2021. Your total ROI for those three years would be 160.6%.

Bitcoin 1-Year return

If you purchased a single bitcoin in August 2022, you would’ve paid around $22,626.83. In one year, that value would’ve increased to $29,310.44. Your total returns for that year would be 29.54%.

Bitcoin Multi-Year Returns Compared

	Initial value	Final value	ROI (%)
15 years (2008-2023)	$0.000764	$29,310.44	3,839,387,524,500%
10 years (2013-2023)	$1,106.75	$29,310.44	2,546.8%
5 years (2018-2023)	$7,438.67	$29,310.44	294.1%
3 years (2020-2023)	$11,246.20	$29,310.44	160.6%
1 year (2022-2023)	$22,626.83	$29,310.44	29.54%

How Much You’d Have If You Invested $1,000 in Bitcoin 10, 5, 3, or 1 Year Ago

Instead of buying one bitcoin, let’s say you decided to invest $1,000 into Bitcoin. Here’s a look at how this $1,000 investment would’ve performed if you bought and held your Bitcoin for 10, 5, 3, and 1 years.

	Initial Price	Number of Bitcoins purchased	Final Value
10 years (2013-2023)	$13.30	75.19	$2,203,358.14
5 years (2018-2023)	$13,880	0.072	$2,110.35
3 years (2020-2023)	$7,200	0.139	$4,073.15
1 year (2022-2023)	$16,605.10	0.0602	$1,765.11

While Bitcoin’s earliest investors would have benefitted the most from buying and holding their Bitcoin, those who’ve invested recently also fared well.

How Does Bitcoin Compare to Other Asset Classes?

If you’re curious how Bitcoin returns compare to those of other asset classes, here’s how its annual and total returns compare to gold, real estate, and the S&P 500.

(Spoiler alert: Bitcoin outperformed all three assets by an enormous margin.)

Bitcoin vs. Gold

If you compare Bitcoin’s returns to gold’s returns, you’ll notice a stark difference. Bitcoin has an average annual return of 1,576% and a total return of 18,912% from 2010 to 2022, while SPDR Gold Shares had an average annual return of just 5.14% and a total return of 61.67% over the same period. 

Year	Bitcoin Return (%)	SPDR Gold Shares (GLD) Return (%)
2005	–	17.76
2006	–	22.55
2007	–	30.45
2008	–	4.92
2009	–	24.03
2010	9,900	29.27
2011	1,473	9.57
2012	186	6.6
2013	5,507	-28.33
2014	-58	-2.19
2015	35	-10.67
2016	125	8.03
2017	1,331	12.81
2018	-73	-1.94
2019	95	17.86
2020	301	24.81
2021	90	-4.15
2022	-81.02	-3.21

Bitcoin vs. Real Estate

Let’s see if real estate fared any better compared to Bitcoin. The cryptocurrency delivered a whopping 1,576% average annual return and an 18,912% total return from 2010 to 2021, while the Vanguard Real Estate ETF had an average annual return of 13.49% and a total return of 161.91% over the same period.

So, real estate saw slightly higher returns than gold, but it still didn’t come close to Bitcoin’s returns.

Year	Bitcoin Return (%)	Vanguard Real Estate ETF Return (%)
2005	–	12
2006	–	35.2
2007	–	-16.38
2008	–	-36.98
2009	–	29.76
2010	9,900	28.44
2011	1,473	8.62
2012	186	17.67
2013	5,507	2.42
2014	-58	30.29
2015	35	2.37
2016	125	8.53
2017	1,331	4.95
2018	-73	-5.95
2019	95	28.91
2020	301	-4.72
2021	90	40.38
2022	-81.02	-26.21

Bitcoin vs. S&P 500 (Stock Market)

The S&P 500 didn’t fare too much better in its head-to-head with Bitcoin. From 2011 to 2023, the Vanguard S&P 500 ETF delivered an average annual return of 15.74% and a total return of 173.14%. While those numbers aren’t too shabby, Bitcoin’s average annual return for the same period was a whopping 819%, and its total return was 9,012%.

Year	Bitcoin Return (%)	VOO, Vanguard SP500 ETF Return (%)
2011	1,473	2.09
2012	186	15.98
2013	5,507	32.33
2014	-58	13.63
2015	35	1.35
2016	125	11.93
2017	1,331	21.78
2018	-73	-4.42
2019	95	31.46
2020	301	18.35
2021	90	28.66
2022	-81.02	-18.15

How Does Bitcoin Compare to The Best Performing Stocks?

We’ve analyzed how Bitcoin compares to gold, real estate, and the stock market, but how does it stack up against some of the best-performing stocks? Here’s how this popular cryptocurrency stacks up against major companies like Amazon, Apple, Berkshire Hathaway, JP Morgan, Microsoft, Visa, and Walmart.

We looked at the average annual and total returns for each asset. This data assumes you bought the asset in 2010 and held it until 2023. 

Asset	Average annual return (%)	Total return (%)
Bitcoin	1,576%	18,912%
Amazon	35.54%	426.48%
Apple	33.22%	398.61%
Berkshire Hathaway	14.31%	171.76%
JP Morgan	13.53%	162.40%
Microsoft	23.92%	287.04%
Visa	23.10%	277.37%
Walmart	10.08%	120.94%

The Bottom Line – Bitcoin Historical Returns

While some investors may be skeptical about cryptocurrency, citing concerns over market volatility and a high risk of loss, Bitcoin’s performance over time paints a rosy picture. With its longevity and astronomically high returns, Bitcoin has been worth the risk for many investors—especially early adopters. 

Of course, historical performance doesn’t guarantee future returns. So if you’re considering investing in cryptocurrency, only invest what you can afford to lose.

The post Bitcoin Historical Annual Returns (10 Years, 5 Years, 3 Years, 1 Year) appeared first on Good Financial Cents®.

Imagine this: You’ve just received an incredible job offer with a pay rate of $35 per hour. Sounds amazing, doesn’t it? But then, a question pops into your mind: what does that amount to in a year?

Suddenly, you find yourself entering a world where numbers come alive, swirling and dancing to the beat of hourly wages and annual salaries.

In this article, we will unravel the mystery behind the figure of $35. We will follow its path as it multiplies into a weekly wage, expands into a monthly income, and ultimately transforms into an impressive annual salary.

This is not just a mundane mathematical exercise; it is a profound exploration of the true value of your earnings.

Whether you’re a job seeker evaluating offers, or an employee negotiating a raise, rest assured that there is something here for you. So sit back, relax, and allow us to guide you through the journey of understanding how much you can make in a year when paid $35 an hour. 

$35 an Hour Is How Much a Year?

We’ve calculated the yearly income based on a $35 per hour wage, considering a normal 40-hour workweek. 

Here’s the step-by-step breakdown:

• Start with a typical workweek of 40 hours and a standard year comprising 52 weeks.

• Calculate the total number of working hours in a year by multiplying the weekly hours (40) by the weeks in a year (52), which equals 2,080 hours.

• Determine the gross annual income by multiplying the hourly rate ($35) by the total annual working hours (2,080), resulting in $72,800.

For comparison, a gross annual salary of $72,800 is considered middle-class income, as it surpasses the $50,000 threshold.

How About if You’re Working Part-Time?

The calculation changes slightly for part-time workers. 

Let’s say you work 20 hours per week instead of the standard 40:

• Begin with your weekly hours (20) and multiply this by the number of weeks in a year (52), which gives you a total of 1,040 working hours in a year.

• Next, calculate your gross annual salary by multiplying the hourly rate ($35) by the total annual working hours (1,040), equating to $36,400.

What Does $35 an Hour Translate to in Terms of Paycheck?

Monthly Paycheck

If your hourly rate is $35, your gross monthly salary should average approximately $6,066.60. This figure is derived by dividing the annual salary of $72,800 by 12 months. However, it’s important to note that this amount may vary due to factors such as the number of days in each month and the schedule of your paydays.

Salary Increase Insight: Should your hourly wage increase from $25 to $35, you could anticipate an average monthly increase of approximately $1,733. This represents a significant enhancement to your income.

Weekly Paycheck

For those interested in a weekly perspective, the weekly salary is calculated by dividing the annual salary of $72,800 by 52 weeks, resulting in approximately $1,400. This is the gross amount before any taxes and deductions are applied.

Bi-weekly Paycheck

If you receive your salary bi-weekly, you will typically receive two monthly paychecks. To calculate your gross bi-weekly salary, divide the annual income of $72,800 by 26 pay periods.

With an hourly rate of $35, your bi-weekly paycheck would be around $2,800, prior to any taxes and deductions.

Daily Paycheck

Your daily earnings are contingent upon the number of hours you work each day. For example, if you work an 8-hour shift, your daily earnings would be $280 (calculated at $35 per hour).

How Does $35 an Hour Compare?

A wage of $35 per hour might seem like a substantial amount, and that’s because it is when compared to the national averages. If you’re working full-time at 40 hours per week, this hourly wage translates to an annual income of around $72,800. This figure significantly overshadows the median salary in the U.S., which stands at $56,473 per year.

Comparatively, the national average hourly wage in the USA is about $33.74, which puts $35 an hour above average. In biweekly terms, a $35 hourly wage would translate to approximately $2,800 before taxes.

Getting a job with a $35 per hour wage gives job hunters an edge over those starting their search. With this pay rate, candidates can expect attractive offers and valuable career guidance.

Is $35 an Ideal Hourly Wage?

That’s a question that tickles the mind, doesn’t it? Your location and lifestyle are the key ingredients in the secret recipe that determines the true worth of that paycheck. But let’s dig deeper and crunch some numbers with the federal poverty level in mind.

For all you fabulous singles out there without dependents, crossing the yearly income of the $13,590 mark would officially elevate you above the poverty line. On the flip side, if you have a family of four, then the target magic number becomes $27,740. 

We’re talking about a modest existence. Just sprinkle some budgeting magic, stay on top of those finances, and voila! You’ll be pleasantly surprised how far $35 an hour can whisk you away.

However, we must emphasize the importance of financial savvy and clever choices to maintain a comfortable lifestyle with a $35 hourly rate. By juggling your expenses skillfully and making wise financial decisions, this income level can splendidly cater to your individual needs and your lovely family’s necessities.

Paid Time off for Hourly Employees Earning $35 per Hour

Let’s never downplay the marvelous benefits of paid time off (PTO), particularly for those earning by the hour. PTO allows you to achieve a harmonious equilibrium between your professional commitments and personal life, all while ensuring your income remains steady.

Imagine this: a typical work week of 40 hours, stretched out over an entire year. Now, allow me to guide you through a pair of hypothetical situations that underscore the financial advantages of paid time off.

Scenario 1: Paid Vacation

Are you part of the fortunate group that enjoys a fortnight of paid leave each year? If so, give yourself a well-deserved round of applause! You maintain a steady annual income of $72,800, matching stride for stride with those enviable salaried colleagues of yours.

Scenario 2: No Paid Vacation

Regrettably, not every hourly worker is blessed with the luxury of paid vacation. In such instances, it’s vital to forecast a slight decrease in your annual earnings due to unexpected events or even some much-needed time off.

Imagine you take a two-week break without any pay; this leaves you with 50 weeks (or 2,000 hours) of work in a year, translating to an income of $70,000. So, while your day-to-day earnings might average around a cool two hundred dollars, remember to budget for those days when work takes a backseat. After all, everyone deserves a break.

How Much Is $35 an Hour After Taxes?

Have you ever wondered how taxes can impact your hourly wage? We’re here to guide you through it. Everyone’s tax situation is unique, but for the sake of clarity, let’s dive into this exploration with a few general assumptions:

• Federal tax rate: 12%

• Social Security and Medicare (FICA) rate: 7.65%

• State tax rate: 4%

• Gross Annual salary: $72,800

Now, let’s break down your potential tax deductions based on these assumptions.

Federal Taxes:	$8,736
Social Security and Medicare:	$5,569
State Taxes:	$2,912
Net Annual Salary:	$55,583

Assuming you work 2,080 hours per year, we estimate your Net Hourly Wage to be: $26.7

So, if your gross hourly wage is $35, after taxes, you’ll take home around $26.7 per hour. That’s a difference of $8.2.

Remember, these calculations are just an estimate. Your actual tax rate and deductions may vary.

Did you know some states in the US don’t impose state taxes on salary income? If you live in one of these states, you’ll still need to pay federal tax and FICA, but imagine the potential savings! Here are those tax-free states:

• Alaska

• Florida

• Tennessee

• Nevada

• South Dakota

• Texas

• Washington

• Wyoming

• New Hampshire

Are you curious about what your net monthly income would look like if you lived in one of these states and earned $35 per hour? Let’s do the math together!

In a tax-free state, your estimated tax deductions would look something like this:

Federal Taxes:	$8,736
Social Security and Medicare:	$5,569
Net Yearly Salary	$58,495

And your Net Monthly Salary? A cool $4,874

Isn’t it exciting to see how your financial landscape could change with just a little tax knowledge? 

Tips for Budgeting With a 35/Hour Salary to Maximize Savings

Cutting Corners Without Cutting Joy

Budgeting doesn’t have to mean sacrificing all the fun. It’s all about finding creative ways to save. Opt for potluck dinners instead of eating out, embrace second-hand shopping, or pick up a fun, free hobby.

You can still enjoy life while being financially responsible. Here’s how:

1. Embrace DIY: Do-it-yourself projects are not only fun but also cost-effective. For example, using a Cricut machine, you can create personalized greeting cards, home decor, and even clothing items. This can save you money and add a personal touch to your belongings. A Reddit user shared their experience with a Cricut Joy machine, indicating that it can make small cuts in corners, providing a unique touch to their DIY projects.

2. Learn to Cook: Eating out can be expensive. Learning to cook not only saves you money but also allows you to control what goes into your meals. It can be a fun and rewarding experience.

3. Second-hand Shopping: Thrift stores and online marketplaces offer a treasure trove of gently used items at a fraction of their original cost. It’s an eco-friendly option that’s kind to your wallet too.

4. Free Entertainment: Look for free activities in your community. Many cities offer free concerts, art exhibitions, and festivals. You can also opt for nature-based activities like hiking, picnicking, or beach days.

5. Trade and Barter: Swap items or services with friends or join a local barter group. This is a great way to get what you need without spending money.

Remember, the goal is to find a balance between saving money and enjoying life. It’s about making smart choices that align with your financial goals and lifestyle preferences.

The Magic of Automated Savings

Setting up automated savings is like having a financial fairy godmother. This ensures a portion of your paycheck goes directly into your savings account. Before you know it, your savings will start to accumulate without you lifting a finger.

The 50/30/20 Rule: A Tried and Tested Approach

The 50/30/20 rule is a classic in the realm of personal finance. This strategy involves allocating 50% of your income to necessities, 30% to wants, and the remaining 20% to savings and debt repayment.

Let’s crunch some numbers. Based on a $72,800 annual income, here’s how the 50/30/20 rule would play out:

• Necessities ($36,400): This includes rent or mortgage payments, utilities, groceries, health insurance, and car payments.

• Wants ($21,840): Think dining out, vacations, shopping sprees, and other non-essential expenses.

• Savings and Debt Repayment ($14,560): This category is all about the future you. Whether it’s paying down debt, saving for retirement, or building an emergency fund.

Adjust Your Budget Over Time

Budgeting isn’t a set-it-and-forget-it process. As your income, lifestyle, and goals change, so too should your budget. Regularly review and adjust your budget to ensure it’s still serving your needs and helping you reach your financial goals.

For instance, if you have a goal of buying a house in the next year, then you may prioritize increasing your savings rate to give yourself an edge. 

On the other hand, if you recently changed jobs and now make more money, you can increase your spending on wants without compromising your savings goals.

It’s all about finding that sweet spot that works best for you.

Emergency Fund

An emergency fund is a crucial part of any budget. Aim to save enough to cover three to six months of living expenses. This fund acts as a safety net for unexpected costs like medical emergencies or sudden job loss.

Tracking Your Spending Habits

Knowledge is power when it comes to budgeting. By keeping a close eye on your spending habits, you can identify areas where you might be overspending. There are numerous apps available that can help you track your spending and provide insights into your financial habits.

Here’s a quick look at some popular budgeting apps:

• Mint: Offers comprehensive budget tracking, bill management, and personalized savings tips.

• YNAB: Connects to your bank account to provide detailed spending insights.

• PocketGuard: Automatically categorizes your expenses so you can easily track where your money is going. 

Other popular options include Acorns and Digit. The key is to find what works best for you and your budgeting needs. 

Invest in Your Future

As part of your 20% savings, consider investing in a retirement plan, such as a 401(k) or an IRA. This not only provides a nest egg for your future but can also offer tax advantages. If your employer offers a 401(k) match, be sure to take full advantage, as it’s essentially free money.

Conquer the Debt Monster

Taking on debt is a crucial part of nailing budgeting on a $35-per-hour salary. Be in control by tackling high-interest debt, like those pesky credit card balances, as a priority. Your debt-to-income ratio fluctuates with your salary, so staying up-to-date is key.

Types of Jobs That Pay 35/Hour Salary

If you are looking for jobs that pay $30/hour, job search and career advice websites can be helpful. Some job titles that typically offer this salary range are:

Job Title	Avg. Hourly Wage
Business consultant	$36.00 per hour
Flight attendant	$38.00 per hour
Web developer	$37.12 per hour
Business operations manager	$36.00 per hour
Fashion designer	$36.45 per hour
Accountant	$35.37 per hour
Data scientist	$35.00 per hour
Cyber security analyst	$35.00 per hour
Software engineer	$35.00 per hour
Business analyst	$38.00 per hour
Technical writer	$35.89 per hour
Data analyst	$38.00 per hour
Product manager	$35.00 per hour
Stockbroker	$35.00 per hour

These careers can potentially pay you a salary of $35 per hour or more. By putting in hard work and commitment, it’s achievable to reach that aim.

Side Hustles To Supplement Your $35 Income

In today’s world, having a side hustle has become an increasingly popular way to supplement income. For those earning $35 per hour, these additional income streams can help reach financial goals faster and provide a safety net for unexpected expenses. 

Here are some of the most effective and lucrative side hustles you can consider:

Freelancing

As highlighted by Forbes, freelancing tops the list of easy side hustle ideas. If you have a skill that’s in demand, such as graphic design, copywriting, or programming, you can offer your services on a freelance basis.

Delivery Services

Entrepreneur suggests delivering for PostMates as another great option for earning extra income. Similar to working for Uber and Lyft, this type of gig offers flexibility and the potential for tip income.

Ride Sharing

The Savvy Couple mentions ride-sharing as one of the best side hustle ideas. When the kids are at school, and you’re home with some spare time, driving for a service like Uber or Lyft can be a profitable way to make use of that free time.

E-Commerce

Investopedia ranks e-commerce as one of the most profitable side hustles. Platforms such as Amazon, Shopify, and Etsy provide an easy way to set up a virtual store and start selling products online.

As there are so many side hustles available, it’s important to find the one that best suits your lifestyle and goals. Consider which will work best for you and your budgeting needs.

Final Thoughts on a $35/Hour Salary

When budgeting on a $35 per hour salary, it’s important to remain mindful of your own needs and goals. Everyone’s financial situation is unique, so find what works best for you and adjust as required. 

With the right mindset and dedication, it’s achievable to create a sustainable budget that sets you up for financial success. So take charge and make your budget work for you. With focus, determination, and a bit of creativity, you can reach any financial goal.

The post $35 an Hour Is How Much a Year? appeared first on Good Financial Cents®.

When we mention nine-figure sums, we’re talking about a truly astronomical level of wealth. To put it in perspective, nine figures represent anything from $100,000,000 all the way up to $999,999,999. 

This figure surpasses the GDP of several small nations. For instance, Samoa reported a GDP of approximately 830 million USD in 2022.

Or consider that according to Investopedia, 7-figure wealth is what puts you among the top 0.1% of the wealthiest people on the planet. This means that having nine figures puts someone at an even more elite level, one whose luxury extends far beyond mere financial freedom.

Only a small fraction of individuals or companies globally can boast such immense wealth. However, it is not an unattainable goal. Let’s take a look at some of the strategies you can employ to accumulate substantial wealth while also examining the lifestyles and pursuits of those who have successfully achieved it.

How Much Is a 9-figure Salary?

A nine-figure income signifies any earnings that flaunt nine digits, starting from $100,000,000 and soaring upwards. To put it into words, we’re discussing one hundred million dollars. 

Quite a mind-boggling figure, isn’t it?

It’s like being handed the keys to a kingdom of unimaginable wealth. But remember, this is a sphere occupied by only a select few worldwide. 

Their playgrounds? Often, you’ll find them in the tech sector, inheriting vast wealth or expanding an already thriving family business.

Now, let’s delve a bit deeper, shall we? 

When we speak of nine figures, are we referring to the lower end close to one hundred million, the middle ground around 550,000,000, or the staggering high end nearing 999,999,999?

So, the next time you find yourself daydreaming about a nine-figure salary, remember this: It’s not just a number; it’s a lifestyle, a testament to extraordinary achievements, and a beacon of exceptional success.

And who knows? With the right mix of passion, dedication, and a sprinkle of luck, you might just find yourself joining this elite club. 

After all, isn’t the sky the limit when it comes to chasing our dreams? 

Examples of People Who Earn 9-Figure Incomes

1. Cristiano Ronaldo: A Sports Icon – With an astonishing income of $105,000,000, this celebrated athlete is not just a football superstar but also a nine-figure earner.

2. Safra A. Catz: Leading Oracle – As the CEO of Oracle, Safra A. Catz’s leadership prowess is reflected in her staggering earnings of $108,200,000.

3. David Zaslav: The Discovery Dynamo – Captaining Discovery as its CEO, David Zaslav, commands a whopping $129,500,000.

4. Nikesh Arora: The Palo Alto Networks Powerhouse – As the CEO of Palo Alto Networks, Nikesh Arora’s genius is rewarded with a hefty paycheck of $125,000,000.

5. Roger Federer: Tennis Titan – This globally recognized athlete proves that sports can indeed yield nine-figure incomes, as evidenced by his impressive earnings of $106,300,000.

Case Study: What Does A 9-Figure Earning Look Like?

Understanding the intricacies of nine-figure earnings can be a complex undertaking due to the lack of universally defined parameters. For the context of this case study, we will consider an annual income of at least $432K as the lower limit for this category. It is worth noting that any figure below this threshold would classify one into the realm of billionaires.

Renowned business magnates such as Warren Buffet and Mark Zuckerberg exemplify this earnings bracket, with annual incomes reported around $51M and marginally less than $50M, respectively.

Reaching the stature of a nine-figure income earner typically necessitates either a substantial inheritance or proprietorship of a prosperous company with diverse revenue channels. The case of Elon Musk serves as a prime example, with his considerable income derived from two distinct sources – Tesla and SpaceX.

Aspiring for this scale of income undoubtedly sets a high bar. However, with the appropriate strategy and relentless determination, it is not beyond reach. Be prepared to tread a path akin to those who have already achieved this feat.

What Is the Potential Monthly, Weekly, Daily, or Hourly Income in the 9-Figure Range?

How Much Is 9 Figures Monthly?

To figure out the monthly income from a massive annual salary, just divide the yearly amount by 12. Keep in mind that this will give you a range of values. But if you want to earn a nine-figure salary, the smallest monthly income would be $8,333,333.33.

$100,000,000 per year / 12 months

= $8,333,333.33 per month

This question might take a different perspective if you’re raking in 9 figures every month. That means your annual income would be at least $1,200,000,000 or even more.

How Much Is 9 Figures a Week?

If we were to divide the 9-figure annual salary by 52 weeks, we’d be looking at a minimum weekly income that could make anyone’s head spin – a cool $1,923,076.9! .

$100,000,000 per year / 52 weeks

= $1,923,076.9 per week

While you’re at it, if you manage to rake in a solid 9-figure sum every week, your annual income will soar to a minimum of £52,000,000,00 or maybe even more. 

How Much Is 9 Figures a Day?

Want to know how much you can earn daily from a nine-figure income? Just divide it by 365! If you make money every day, your minimum daily earnings would be $273,972.6. That’s your ticket to the nine-figure club!

Here’s the breakdown:

$100,000,000 per year / 365 days

= $273,972.6 per day

Now, let’s say you take weekends and U.S. holidays off. In that case, you’d need to earn around $381,679.3 per day to make $100,000,000 per year. It’s a good goal to aim for if you want that nine-figure salary without burning yourself out.

How Much Is 9 Figures an Hour?

If you’re seeking a nine-figure income from hourly wages, the calculations are slightly different. Just divide your per day salary by 8 hours, and voilà! The minimum number is $47,709.90 per hour. This calculation is based on working days – usually 262 days per year in the US.

How Much Is 9 Figures After Taxes?

Achieving a 9-figure income is quite an extraordinary feat, one that is typically reserved for the most successful entrepreneurs, athletes, and entertainers in our society. It’s almost impossible to reach that level through a single salary alone. 

Calculating the exact tax on a 9-figure income can be a challenging endeavor. Taxes can vary greatly depending on many factors, including location, type of income, applicable deductions, and more. However, it’s safe to say that anyone earning in the 9-figure range will face a significant tax bill. 

What Is the Pathway To Achieving a 9-Figure Income?

If you are in pursuit of a 9-figure income, it is essential to have an understanding of the components that fuel this elusive status. What sets apart these high-net-worth individuals from the rest is their capacity to create multiple streams of passive income and capitalize on them. 

Here are some tips to help you achieve this milestone:

Acquire Valuable Skills and Experience

The first step towards achieving a 9-figure income is building a solid foundation of high income skills and experience in a high-value field. This could be anything from technology and finance to entertainment and sports. The key is to become exceptionally good at what you do, often necessitating years of dedication, learning, and practical application.

Build or Join a High-Growth Venture

Next, it’s super important to either build or get involved in a high-growth venture. This could mean starting a business with a game-changing idea or joining a rapidly expanding company in a leadership position. The aim here is to use your unique skills and experiences to create substantial value and wealth, which could potentially lead to a massive income if the venture becomes incredibly successful.

Invest Wisely and Diversify Your Income Streams 

Who said you can’t have your cake and eat it too? Investing in the stock market, real estate, bonds, and other alternative investments is another way to generate a 9-figure income. It’s important to diversify your portfolio across multiple strategies so that you’re not overly exposed to any one asset class.

Let’s give you an example. 

If you’re already running a successful business, consider investing in cryptocurrency or another digital asset class to increase your income streams. This could provide an additional source of passive income that can help solidify your journey to a 9-figure salary.

Equities and Derivatives Trading

The stock market is an incredibly powerful tool that can help you to achieve a 9-figure income. Through equity and derivatives trading, you can tap into the world’s most lucrative markets and make substantial returns on your investments in a short amount of time. 

Learning how to navigate this complex ecosystem of risk and reward requires patience, dedication, and a lot of practice. Start by investing in the stock market or trading on a simulated platform to get comfortable with the process before taking it to the next level. 

Leverage Networks and Opportunities

Networking is a critical component of achieving a 9-figure income. By cultivating meaningful relationships with influential people in your industry, you can open doors to opportunities that might otherwise remain closed. These could include partnerships, investments, or high-profile job offers that can significantly boost your income.

Jobs That Pay 9 Figures

Earning a nine-figure salary is an incredibly rare achievement reserved for the top echelons of various lucrative industries. Here are some of the highest-paying jobs and industries that can bring in nine-figure salaries. 

Tech Company Bosses

Tech company bosses, particularly those at the helm of companies like Amazon, Facebook, and Tesla, are among the highest earners globally. Their compensation often comes in the form of stock options, which can value in the hundreds of millions or even billions when their companies perform well.

Examples Include: 

• Elon Musk, CEO of Tesla ($242.4 billion)

• Jeff Bezos, CEO of Amazon ($151.5 billion)

• Mark Zuckerberg, CEO of Facebook ($103.4 billion) 

Professional Athletes

In the world of professional sports, athletes like Cristiano Ronaldo, Lionel Messi, and LeBron James have managed to secure contracts and endorsement deals that push their annual incomes into the nine-figure realm. These athletes excel in their respective sports and have built strong personal brands, attracting lucrative sponsorship deals.

According to reports, these athletes earned more than $100 million in a single year:

• Cristiano Ronaldo ($200 million) 

• LeBron James ($385 million) 

Hollywood Celebrities

Hollywood is no stranger to nine-figure earners. Actors like Dwayne Johnson and Robert Downey Jr., thanks to their roles in blockbuster franchises, command massive salaries. Additionally, they earn significantly from endorsements, producing roles, and profit participation deals.

Media Stars

Media stars, especially those with a strong presence on digital platforms, can earn nine figures. For instance, YouTubers and influencers with millions of followers can generate substantial income from ad revenue, brand partnerships, and merchandise sales.

Hedge Funds & Investment Bankers

Investment bankers and hedge fund managers are some of the highest earners in the financial sector due to their expertise. Some notable examples include: 

• Ray Dalio: Founder of Bridgewater Associates ($19.1 billion)

• David Tepper: Hedge fund manager ($18.5 billion) 

• Carl Icahn: Founder of Icahn Enterprises ($10.1 billion) 

Pop Superstars

The music industry has always been a lucrative field for successful artists. Pop superstars like Taylor Swift and Beyoncé have made fortunes from their music sales, concert tours, and endorsement deals. These musicians not only create hit songs but also build powerful brands that amplify their earnings.

Entertainment (Actors, Singers, Dancers, Etc.)

Performers in the entertainment industry, including actors, singers, and dancers, can achieve nine-figure incomes. Successful film actors can earn millions per movie while top-charting musicians make a significant portion of their income from touring. Broadway performers and dancers in high-demand shows can also command high salaries.

Top-Notch Business Owners

Business owners, especially those who own large corporations or successful startups, can earn nine figures. This income comes from their business profits and, in some cases, from selling their businesses. Entrepreneurs like Elon Musk and Jeff Bezos have made billions from their ventures.

These careers represent the pinnacle of earning potential in their respective fields. However, it’s essential to note that reaching this income level requires exceptional talent, hard work, and often a good dose of luck.

Are 9-Figures Rich?

When we talk about money, figures, and digits start dancing in our heads. Six figures? That’s quite impressive. Seven figures? Now you’re playing with the big boys. But when we leap into the world of nine-figure incomes, we’re talking about a whole different ball game. It’s like comparing a kiddie pool to the Pacific Ocean!

A nine-figure income means someone is raking in between $100,000,000 and $999,999,999 annually. That’s right. There are more zeros in that figure than in a beginner’s Sudoku puzzle! This income bracket places individuals among the financial titans of the world. To put it plainly, if you’re earning nine figures, you’re not just rich—you’re Scrooge McDuck swimming in a vault of gold-level wealth.

But let’s be real, nine-figure incomes are as rare as a unicorn at a donkey convention. Even some of the world’s wealthiest individuals, like Bill Gates and Warren Buffet, didn’t make their billion-dollar fortunes overnight. It took years of smart decisions, a bit of luck, and probably a few sleepless nights.

And don’t forget, these ultra-wealthy folks aren’t waiting for a paycheck every month. Their wealth comes from various sources, including investments, real estate, and businesses3. They’ve got their fingers in so many pies; they could open a bakery!

What Does a 9-Figure Lifestyle Entail?

Living a 9-figure lifestyle is beyond the realm of what most people could even imagine. It involves not just extraordinary wealth but also the responsibilities and opportunities that come with it. Here’s a detailed look at what such a lifestyle might entail:

Extreme Luxury

A 9-figure lifestyle allows for some of the most opulent luxuries in the world. For instance, consider real estate: billionaires often own multiple properties around the globe. According to a report by Economics Times, the average billionaire owns 4 homes, with each worth nearly $20 million.

Traveling is another area where this wealth is evident. Private jet travel is commonplace among this group. The cost of owning a private jet can range from $3 million to over $90 million, not including the ongoing costs of maintenance, fuel, and crew salaries.

Philanthropy

Philanthropy is a significant aspect of a 9-figure lifestyle. Many ultra-wealthy individuals are committed to giving back to society. For example, Warren Buffett, one of the richest people in the world, pledged to give away 99% of his wealth to philanthropic causes.

The Giving Pledge is another example of this. Initiated by Bill Gates and Warren Buffet, it’s a commitment by some of the world’s wealthiest individuals and families to give away more than half of their wealth to solve societal problems.

Investments

Individuals with a 9-figure income often have vast and diverse investment portfolios. For instance, Jeff Bezos, the founder of Amazon and one of the wealthiest individuals on the planet, has investments spanning multiple industries. He owns The Washington Post, has a venture capital firm called Bezos Expeditions, and invests in space exploration with his company Blue Origin.

Personal Staff

Having a 9-figure income often means employing an extensive personal staff to handle daily affairs. For example, Oprah Winfrey, a billionaire media mogul, reportedly employs a team of over 3,000 staff, including gardeners, chefs, housekeepers, and security personnel.

This level of staffing isn’t uncommon among the ultra-wealthy. After all, managing a 9-figure lifestyle requires a lot of planning and assistance to make sure everything runs smoothly. 

Political Influence

The ultra-wealthy have significant influence in politics due to their large contributions to political campaigns and the influence they can wield over policy decisions. This influence can be used for both good and bad purposes, depending on who is wielding it. 

However, the effects of political influence by wealthy individuals shouldn’t be underestimated. It can have a profound impact on policy decisions and shape public opinion in powerful ways. This level of influence is not available to everyone, but those with 9-figure incomes typically use it to their advantage. 

Privacy and Security

With great wealth comes the need for privacy and security. People with a 9-figure income often invest in advanced security systems, hire personal security staff, and take measures to maintain their privacy.

This isn’t just to protect their money; it’s also about protecting themselves and their families from potential threats. After all, when you’re one of the wealthiest people in the world, there are bound to be a lot of eyes on you.

High-End Experiences

Those with a 9-figure lifestyle often have access to experiences that are out of reach for most. This can range from private concerts with top musicians to exclusive dining experiences with world-renowned chefs. 

This level of wealth also opens up opportunities to travel to the most luxurious places in the world. From private island getaways to luxury cruises, the experiences available to 9-figure earners are limited only by their imagination and budget. 

The Bottom Line – Making 9 Figures

Taking all of this into account, it is clear that those with a 9-figure income have access to exclusive and luxurious experiences, as well as the privacy and security often associated with great wealth. This level of influence can also be extremely powerful. Therefore, it should not be underestimated or overlooked. 

Overall, 9 figures is an amazing achievement and one that requires hard work and dedication. It is often an indicator of success and can open up a world of new possibilities for those who have achieved it. 

Regardless of your current financial status, never forget that anything is possible with determination and perseverance! With the right attitude and mindset, you, too, could one day reach 9 figures or more. Start planning today, and remember to take every opportunity that comes your way. With a bit of luck and the right attitude, success is just around the corner.

FAQs – Making 9 Figures

The post 9 Figures Is How Much? appeared first on Good Financial Cents®.

To get the best savings account rates, start by shopping around and comparing different banks and credit unions. Here are some of the top national rates to get the most out of your savings account.

While the best savings accounts used to come from traditional brick-and-mortar institutions, this is no longer the case at all. The reality is that many online banks and fintech companies offer savings accounts with lower fees (or no fees) these days, and their interest rates are much more competitive than you’ll find elsewhere.

Don’t believe me? Once you do some digging, you’ll quickly find that banks like Chase and Wells Fargo are offering a paltry 0.15% rate on their regular savings accounts. This is even lower than the national average the FDIC is reporting!

Since you definitely want to secure the highest rates you can on your savings, it’s crucial to compare banks and their savings account offers side-by-side. We just did exactly that to help you in your search, and we highlight the best savings accounts of 2023 below.

Our Picks for Best Savings Accounts of August 2023

• Discover Online Savings Account: Best User Experience
• UFB Direct Rewards Savings: Best for High APY
• CIT Bank Savings Connect: Best for No Fees
• Marcus by Goldman Sachs: Best for No Minimum Deposit
• Citi Accelerate Savings: Best for Citi Customers
• Barclays Online Savings Account: Best Online Tools
• SoFi Money: Best Sign-Up Bonus Offer
• Bread High Yield Savings: Best for Easy Online Transfers

Best Savings Accounts – Reviews

Before you open up one of the best savings accounts we profile in this guide, you should get a general idea of how each account works, including their minimum account balance requirements and monthly fees. The following savings account reviews can help you learn more about each bank and what they offer.

Current APY	Minimum Deposit Amount	Fees
4.30%	$0	None

While Discover is well known for its popular rewards credit cards, this online bank also offers personal loans, checking and savings accounts, and student loans. When it comes to their savings account products, consumers can open an account with a $0 minimum deposit requirement and no monthly fees or maintenance fees.

You can open an online savings account with Discover without having to visit a physical bank branch, and your Discover account may come with broad ATM access, depending on where you live.

Other benefits of Discover online savings accounts include no fees for insufficient funds and access to a highly-rated mobile app that makes it easy to make deposits, monitor your account balance, or transfer money between accounts on the go.

Current APY	Minimum Deposit Amount	Fees
5.25%	$0	None

UFB Direct offers a high-yield savings account with no maintenance or service fees and no minimum account balance required. You don’t have to make a minimum direct deposit of any kind to qualify for their highest-yield offer, and you even get a free ATM card included.

UFB Direct also comes with a robust online banking portal, as well as a mobile app that is highly rated by users. You can use the app to make mobile deposits, track your spending and savings goals, and transfer money between accounts. This bank also comes with 128-bit encryption on their accounts, so you can rest assured your banking information and personal data will remain safe.

Current APY	Minimum Deposit Amount	Fees
4.65%	$100	None

While CIT Bank was once a standalone online bank, the institution is now a division of First Citizens Bank. With that in mind, you should know that the CIT Bank Savings Connect account requires a minimum deposit of at least $100 to get started. However, there are no account management fees or hidden fees to be aware of, and consumers can earn an exceptional rate of 4.65% APY.

Opening this account online is a breeze, and consumers can use the mobile app to make deposits remotely, transfer money, or keep track of their savings balance. Like other savings accounts that made our ranking, CIT Bank is also FDIC-insured. This means that depositors can sleep well at night knowing that up to $250,000 of their savings has protection in the event of a bank default.

Current APY	Minimum Deposit Amount	Fees
4.15%	$0	None

Marcus by Goldman Sachs offers some of the best high-yield savings accounts and personal loans on the market today. Their savings accounts, in particular, offer a competitive APY of 4.30%. There are no fees required for this account, and you can open one and get started with no minimum deposit required.

You can also make same-day transfers from other banks in amounts up to $100,000, and Marcus by Goldman Sachs accounts are all FDIC insured.

The bank’s mobile app is also highly rated and recommended. Applicants can open their accounts online or using the mobile app, but the app itself is incredibly useful once you fund your account. As an example, you can use the Marcus by Goldman Sachs app to schedule transfers in and out of your account, see how much interest you have earned, and keep track of your savings goals.

Current APY	Minimum Deposit Amount	Fees
4.05%	$0	$4.50 monthly service fee if you maintain a balance of less than $500

If you are hoping to open a savings account with a bank that may have physical branches in your area, Citibank is worth considering. This bank has branches throughout the country, but you’ll also be able to access over 65,000 ATMs through their network. In the meantime, Citibank also offers a useful mobile app with excellent ratings on Google Play and in the App Store.

In terms of their online savings account, their highest tier of savings currently earns 4.05% APY. A monthly service fee of $4.50 may apply if you have a Citi Accelerate savings account without a connected checking account, but you can have this fee waived if you maintain an average monthly balance of at least $500 in your account at all times.

Current APY	Minimum Deposit Amount	Fees
4.35%	$0	None

Barclays is another bank that offers exceptional high-yield savings account almost anyone can open. This account is currently earning 4.35% APY, and the minimum account balance requirement starts at $0. There are also no monthly fees associated with this account, as well as no hidden fees in general.

Barclays accounts come with FDIC insurance, and they make it easy to transfer money between accounts online or using the bank’s mobile app. At the end of the day, this account is a no-frills option that aims to grow your savings without requiring you to jump through any hoops.

Current APY	Minimum Deposit Amount	Fees
4.5% APY	$0	None

SoFi offers an exceptional APY of 4.5% on their savings accounts with no minimum deposit requirement and no monthly fees or hidden fees to worry about. The online bank is even offering a new account bonus of up to $300 when you sign up and set up qualifying direct deposits to your account.

Opening an account with SoFi also gets you access to more than 55,000 fee-free ATMS in the Allpoint ATM network, and qualifying direct deposits can protect you from overdraft fees when you overdraft your account by up to $50. A SoFi savings account also lets you access your paycheck up to two days early. The SoFi mobile app is highly rated as well, and it makes it easy to monitor all your SoFi accounts in one place.

Bread Savings is another online institution that can help you grow your savings with a high APY and no hidden fees. You need at least $100 to open a savings account with Bread, and you can earn an APY of 4.75% after that, regardless of your account balance.

Bread’s high-yield savings accounts are mostly free of frills and special features, but the company does have a mobile app with plenty of perks. For example, you can use the Bread app to monitor your savings balance, transfer funds, make deposits, and more. Bread also offers unlimited deposits via mobile check capture and ACH transfer.

Finding the Best Savings Accounts

Opening a savings account can make it easier to reach your savings goals, yet it can make sense to check out and compare other financial products like Certificates of Deposit (CDs) and money market accounts as well. If you want an account that you can use to make regular purchases, you should also look at the best checking accounts on the market today.

When evaluating the best savings accounts, here are all the factors you need to consider:

Factor	Description	Pros	Cons
Interest Rate	The percentage rate that the bank pays you on your savings	Higher rates earn you more interest income over time	Rates can change frequently and may be subject to limitations or fees
Fees	Charges by the bank for account maintenance, transactions, or other services	Low or no fees help you keep more of your savings	Some fees may be unavoidable, such as those for overdrafts or account closures
Minimum Balance	The minimum amount required to keep in the account to avoid fees or earn interest	Low or no minimum balances make it easier to keep your account open	Higher minimum balances may be required for higher interest rates or other benefits
Access to Funds	How easily and quickly you can withdraw your money	Easy access can be helpful in emergencies or for unexpected expenses	Restrictions on withdrawals may limit your flexibility
Account Features	Additional benefits or services, such as online banking, mobile apps, or ATM access	Convenient features can make managing your account easier and more efficient	Additional features may come with additional fees or restrictions
FDIC Insurance	The Federal Deposit Insurance Corporation (FDIC) insures bank deposits up to $250,000	FDIC insurance provides peace of mind that your savings are protected	Accounts at banks that aren’t FDIC-insured may not be as secure

Savings Accounts 101

If you still believe the best savings accounts will meet your needs, read on to learn more about how savings accounts work and their pros and cons.

How Savings Accounts Work

A savings account is a type of bank account that intends to help you grow your money over time. Savings accounts offer an annual percentage yield (APY) that is a lot higher than you’ll get with a checking account. However, some savings accounts come with minimum balance requirements, monthly fees, or limits on the amounts you can transfer or withdraw each month.

To get the most out of a savings account, you should look for options that offer the highest APY you can find with minimal fees or no fees. You can grow your savings faster by setting up automatic transfers or deposits, and you can open multiple savings accounts for different goals.

Use-Cases for Savings Accounts

There are myriad reasons to open a savings account with your regular bank or an online institution. With that in mind, here are some of the most common uses for savings accounts and the funds they hold.

• Short-Term Goals: Many consumers use a savings account to save up for short-term goals, whether that includes home upgrades or repairs, an upcoming vacation, or a new vehicle for the family.
• Long-Term Goals: You can also use a savings account to save for longer-term goals such as the down payment on a home, college tuition, or your future retirement.
• Emergency Funds: Most experts say you should have three to six months of expenses tucked away in a savings account for emergencies only. With a fully-stocked emergency fund that’s held in a high-yield savings account, you’ll have some protection against unexpected expenses and bills, a loss in income, a job loss, and more.
• Rainy Day Funds: It never hurts to have some savings that aren’t allocated for anything in particular. You can open up a savings account and fund it for anything that pops up, from a last-minute trip you want to take to a splurge purchase of something you have always wanted.

Savings Account Pros and Cons

How We Found the Best Savings Accounts

To find the best savings accounts on the market today, we looked for options that offer the highest annual percentage yield (APY) possible with no monthly fees or minimal fees required. We also looked for institutions that have a mobile app, and we only considered bank accounts that are FDIC-insured.

Other features we looked for include low minimum deposit requirements (or a $0 minimum deposit requirement), access to fee-free ATMS, a robust online portal, and easy money transfers and deposits via an online banking portal or mobile app.

• Discover Online Savings Account: Best User Experience
• UFB Direct Rewards Savings: Best for High APY
• CIT Bank Savings Connect: Best for No Fees
• Marcus by Goldman Sachs: Best for No Minimum Deposit
• Citi Accelerate Savings: Best for Citi Customers
• Barclays Online Savings Account: Best Online Tools
• SoFi Money: Best Sign-Up Bonus Offer
• Bread High Yield Savings: Best for Easy Online Transfers

The Bottom Line – Finding the Best Savings Account Rates

Shopping around for online savings accounts can be intimidating at first, but with the right research tools and a bit of savvy, you can find the perfect fit for your needs. Make sure to remember the importance of security when evaluating online accounts and, of course, look for the one with the best rate of return.

People often overlook online savings as a way to make their money work for them – don’t forget that a high-yield account often starts from small beginnings! Take advantage of online savings options and unlock a wealth of financial opportunities.

FAQs on Finding the Best Savings Account For Your Money

The post 8 Best Savings Accounts of 2023 appeared first on Good Financial Cents®.

“How do you want to pay for it?”

I had recently returned from Iraq, and my wife and I were hunting for a couch for our new home.

We found one that was on sale. We both thought it was perfect.

Okay, it was a red couch, and she thought it was perfect. I personally didn’t understand why anyone would buy a red couch, but apparently, I didn’t understand home decor. Nonetheless, the wife’s vote trumped mine.

When the sales clerk asked how we wanted to pay, suggesting we take advantage of their great in-store financing, an exciting thought ran through me – “We can pay cash.”

A year prior, that wouldn’t have been an option. Not even close!

But now we found ourselves in a very exciting position; we were financially stable.

I can’t say that I 100% believed we were financially stable at that point in our lives, but it definitely was a turning point for us.  Not only could we pay cash, but we also had money left over.

People often spend most of their lives chasing financial stability. But is it possible that you may already be financially stable?

Here are 27 signs that you’re financially stable – already! And if you’re not, you can start working to make a lot of these a reality in your life.

1. You Never Overdraw Your Checking Account

Even if you have overdraft protection with your checking account, you still prefer to keep a cushion in your account rather than relying on the protection. And you absolutely, positively, never bounce a check!

Part of it has to do with your aversion to paying overdraft fees. But mostly, it’s because you have a sufficient amount of money that you can keep more in your checking account than you need in a typical month.

2. You Don’t Lose Sleep Over Finances

When you go to sleep at night, you tend to sleep deeply and peacefully. And if anything does keep you awake, it’s usually not related to financial matters.

This is a non-financial benefit that people who are financially stable have as a result of their strong financial position. This isn’t to say that you don’t have any money worries at all, but rather that they are not significant and never without some sort of reasonable solution.

3. You Use Credit Cards for Convenience and Rewards – But Never Out of Necessity

I currently have 4 credit cards in my wallet and use them almost every day. <gasp!>

How could you, Jeff? You’re a Certified Financial Planner!

Yes, I am, but here’s the catch: I pay them off every month. As a bonus, we have carefully selected credit cards that collect reward points which we use for airline miles. Boo-yah!

Many people who are not financially stable have a bad habit of using credit cards as a way to extend their paychecks – to buy the things that they really can’t afford.

That’s not an issue in your life!

If you do use a credit card, it will strictly be for convenience, such as being able to make a fast payment online. Or you will do it because your credit card company provides you with rewards for making purchases.

4. You Don’t Worry About Losing Your Job

This is one of the very best indicators that you are financially stable. It’s a sad state of affairs that the vast majority of people in the US live from paycheck to paycheck. The thought of losing their job, even for a month or two, would be a financial disaster.

Since your finances are in balance, losing your job isn’t something that you worry about, at least not the potential for ruining your finances.

5. You’re Never Late With Payments

This is partly because you always have plenty of money to pay your bills, but also because of your preference for being ahead of your finances rather than behind.

This is also a big reason why you don’t lose sleep over your finances. When you go to bed at night, you know that your bills are paid and all is right in the world.

6. You Pay Your Bills Ahead of Time

Part of the reason why you’re never late with payments is that you pay your bills ahead of time. In fact, you probably pay them as soon as they come in. You do this because you don’t like bills to linger – and simply don’t like owing anybody anything.

7. People Ask Your Opinion About Financial Matters

One of the biggest outward signs that you are financially stable is when people ask your opinion about financial matters. They’ll do this because they see you as someone who has “figured it out,” at least when it comes to money.

When this happens, take it as a supreme compliment. It means that your financial stability is so obvious that others can see it and will ask your opinion as to how to achieve it.

8. You’re Generally Happy With Your Financial Situation

This doesn’t mean that your financial situation is completely perfect, but rather that your finances are in balance and you are satisfied with the direction that things are heading.

Even if you have financial challenges over the horizon, you have some sort of plan set up to deal with them before they come. That’s all anyone can do, and you’ve already got it covered.

9. You Have No Ugly Credit Card Balances

It’s not at all unusual for people who have high incomes and a large number of financial assets to also carry great, big, ugly credit card balances. That’s not a game that you play.

You absolutely refuse to carry credit card balances that can’t be paid off relatively quickly. And that keeps you from paying high-interest rates and from losing sleep at night.

10. You Finance Your Cars Over Five Years or Less – If You Take Loans at All

Even though there are car loans available as far out as seven years, you keep your car loans to five years or less. Or you pay cash for your cars, or you pay them off ahead of schedule.

That means that you won’t live your life carrying a perpetual car loan payment. That also means that when you buy a new car, it’s very likely that you’ll be making a larger-than-average down payment on it, which is why you take shorter loans in the first place.

11. You Contribute a Double-Digit Percentage of Your Pay To Retirement

Many, many people contribute nothing more than the minimum percentage that they need in order to get the maximum employer match on their retirement contributions.

But that’s not a game that you play.

You recognize the importance of aggressive retirement investing as a critical part of becoming financially stable. You either make the maximum retirement contribution that you’re allowed, or your contribution is well into double-digit percentages.

And because you do, early retirement is actually a legitimate consideration in your life.

Investing and feeling good about it has never been easier with great online brokerage tools such as M1 Finance or Betterment. Learn more about how to use M1 Finance on our review page.

12. You Don’t Feel Guilty When You’re Out For Special Occasions

Everybody has episodes where they spend a little bit too much money. This can happen on special occasions, such as birthdays, holidays, vacations, and other celebrations. But for you, these events are not budget-busters.

You have enough flexibility built into your budget that you can accommodate the occasional spending spree without having too much money at the end of your paycheck.

13. You Can Afford to Buy the Things You Really Want

If you really want something, you go out and buy it. Your finances are strong enough to enable you to get the things that you really want.

This isn’t at all about impulse spending on an ongoing basis, but rather about having enough room in your budget to get the things that you really want. In that way, money doesn’t rule you.

14. Recreational Spending Doesn’t Appeal to You

There are all kinds of coping devices in life, including bad habits like hard drinking, drug use, and overeating. For some people, the vice is recreational shopping.

Spending money enables them to lose themselves and their troubles, at least for a time. And often, recreational spending is a way of rebelling against their impaired financial situation.

That’s not something that you engage in, nor do you ever feel the need to do so. You’re happy with your finances in general, and you don’t need to spend money to feel good about yourself.

15. You’re a Natural Saver

This is one of the key habits to becoming financially stable, and it’s one that you mastered a long time ago. You’ve been doing it so long and so well that you are virtually a natural saver.

You can do it with a sense of purpose and without ever feeling any pangs of self-denial.

16. You’re Generous With Money When it Comes to Charities or Helping Others

You have certain charities that you support on a regular basis, and you’re generous to the people around you who are in need.

You’re able to do this because you never sense that giving money to others in need will in any way negatively impact your financial position. You give with ease, and you feel good about it.

17. You’re Confident About Your Future

This is one of the best indications that you are financially stable. Your finances are sufficiently under control that you feel confident about your future.

This is because you’re easily able to live on what you earn, you have substantial financial assets that you’re adding to on a regular basis, and you carry little, if any, non-housing debt.

The future tends to be kind to people in that situation, and that’s where your confidence comes from.

18. Your Net Worth Grows Significantly From Year to Year

Your net worth tends to grow each year, and it does so by fairly large amounts. This isn’t about doubling your money each year, but rather about achieving fairly consistent increases in your net worth.

Those increases come from a combination of adding to your investments through regular contributions and solid investment returns.

19. You Have Substantial Equity in Your Home

Another of the major markers of being financially stable is that you have a large amount of equity in your home.

This is either because you made a large down payment on the home when you bought it, or because you’re paying extra principal on your monthly payment as a way to accelerate the payoff of the mortgage. It may even be a combination of both.

That large equity means that you don’t worry about falling property values, at least not the way people in low- or no-equity situations do.

20. You Consistently Live Beneath Your Means

You consistently live beneath your means because you are well aware of the fact that all the things that make someone financially stable start with having extra room in your budget for savings, investments, or paying off debt.

This isn’t a struggle for you either, but something that makes sense and comes easily to you.

21. A Large Pay Cut Wouldn’t Destroy Your Life

Yet another of the benefits of being able to live beneath your means is that the prospect of taking a large pay cut wouldn’t destroy your life.

Because you are already living on less than you earn, taking a pay cut at work or transferring to a lower-paying position won’t represent a mortal blow to your existence.

22. The Cost of Sending Your Kids to College Doesn’t Scare You

You’re looking forward to your kids going to college. You’re well aware that the cost is outrageous, but you’re making plans so that you’ll be prepared when the time comes.

This can be a combination of specifically saving money for each child through a college savings plan, streamlining your own finances so that you’ll be able to pay a large chunk out of your income, or working to help your children get scholarships that will contribute toward the cost.

23. You’re Totally Unconcerned With Keeping Up With the Joneses

In your world, being financially stable is its own reward. You have no need to acquire the trappings of the good life that others around you are working so hard to attain.

That keeps you from spending money that you don’t have and going into debt. And that leaves you more money for savings and investments, which increases your financial stability even more. No toys or trophies are needed!

24. You Give 100% on the Job – Financial Concerns Don’t Distract You

Just as you sleep like a baby because you are unconcerned with financial troubles, you’re able to give 100% on your job. You aren’t weighed down by the emotional troubles of having unpaid bills or outsized debts to pay.

And because you can live on less than you make, you don’t waste time feeling sorry for yourself because you’re not making enough money to pay your bills.

That frees you up to do the job that needs to be done and makes it more likely that you will get the bigger raises and promotions when they come around.

25. You Pay Your Credit Cards in Full Each Month

Since you don’t use credit cards as an extension of your paycheck, you simply pay the balance in full each month as the bill comes in. There are no lingering debts in your life and none of the worries that are attached to them. Every month, you have a clean slate going into the next month. See #3 again. 

26. You Could Survive For Months Without a Paycheck

You have sufficient liquid savings that you can live for months without a paycheck if you have to. You won’t need to tap long-term savings, like retirement plans, either. And bankruptcy won’t be even a remote consideration since you have very little debt.

The fact that you can live without a paycheck for an extended period of time even makes it easier to do your job. You can work without concerning yourself with the threat of being laid off or fired. And you never feel trapped by your job.

This is one of those circumstances where being financially stable feels so good!

27. You Feel in Control of Your Finances – Never Dominated by Them

Overall, you have a strong sense that you are in control of your finances. This means that when it comes to money, you have choices. And since money creates options in life, you have more than the average person.

This is what being financially stable is all about and what its ultimate goal should be. Being able to do what you want, when you want, and on your own terms.

This is a long list, and if you’re not feeling some of these right now, you can work to get yourself into a position where you will. It’ll take a bit of effort, but that effort will be sooo worth it!

The Bottom Line – What It Takes to Be Financially Stable

Achieving financial stability requires a combination of disciplined habits, informed decision-making, and a proactive approach to managing one’s finances.

By understanding the importance of budgeting, saving, investing wisely, and living within our means, we can pave the way for a secure and prosperous future. It may not always be an easy journey, but the rewards of financial stability are well worth the effort.

The post 27 Signs You Are Financially Stable appeared first on Good Financial Cents®.

Building wealth takes time and patience, but it also requires you to take real, actionable steps with your money. After all, you won’t get rich by keeping your extra cash under your mattress and hoping for the best. You have to invest your money if you want it to start growing to its full potential.

But, how do you do that if you only have $100 to get started? That’s not a lot of capital, but it’s definitely better than nothing.

Also know that most “regular people” who’ve built real wealth started with small sums, kept on investing, and watched as their money snowballed from there. Not only that, but the act of learning how to invest is often all it takes to change someone’s mindset about money, and to get them on a path to earning more cash in other ways.

Having $100 in the bank might not seem like a lot, but it may be all you need to change your future for the better. If you’re wondering how to invest $100, how to flip $100, and how to invest and make money daily, you’re in the right place.

Can $100 Really Make a Difference?

Learning how to invest can feel like you’re playing a game of “catch-up” at first, and that’s especially true when you only have small sums of cash to start the process. After all, we’ve all heard of people who have made millions of dollars investing in the right stocks, crypto, or non-fungible tokens (NFTs) at the right time, or coming up with an awesome business idea nobody had ever thought of before.

However, you really do have to change your mindset if you want to flip $100 and turn it into substantial sums of money. The reality is, there are plenty of situations where you could have turned $100 into thousands, tens of thousands or even hundreds of thousands had you invested at the right time.

Don’t believe me? The chart below shows how much $100 would be worth today if you invested approximately 10 years ago:

COMPANY/STOCK	INVESTED 10 YEARS AGO	INVESTMENT VALUE TODAY
Google (GOOG)	$100	$685
Tesla (TSLA)	$100	$12,081
Amazon (AMZN)	$100	$1,190
Bitcoin (BTC)	$100	$380,692

Investing $100 into Bitcoin a decade ago would have seemed crazy at the time, yet a single Bitcoin purchased in 2012 would have set you back just $5.29. If you were forward-thinking enough to get in the game early on, imagine how many Bitcoins you could have purchased and what they might be worth today.

Remember the 12-year-old who made NFTs and used them to build a crypto wallet worth over $1 million dollars? How about the teenager who made millions on Bitcoin after investing what he had at the time ($1,000) in 2011?

These stories are absolutely real, and they happened to real people who had the courage and foresight to create something or invest at just the right time.

Can You Really Become a Millionaire With $100?

If you don’t want to make risky bets that may or may not pay off, you can still become a millionaire by investing relatively small sums of money over time. The key to winning at this game is investing in assets that can provide a fairly steady return you can count on, and making sure your contributions are consistent and automatic.

For example, it’s totally possible to invest $100 per month into a combination of index funds, ETFs, and individual stocks and then turn the money into more than $1 million dollars over the long term.

You may have to wait decades to become a millionaire, but it’s still totally possible. The chart below shows how long you would have to invest and the type of return you’ll need to hit the $1 million mark during your lifetime.

Monthly Investment	% Earned	10 Years	20 Years	30 Years	40 Years
$100	6%	$15,816.95	$44,142.71	$94,869.82	$185,714.36
$100	8%	$17,383.87	$54,914.36	$135,939.85	$310,867.82
$100	10%	$19,124.91	$68,730	$197,392.83	$531,111.07
$100	12%	$21,058.48	$86,462.93	$289,599.22	$920,509.70
$100	14%	$23,304.75	$109,229.91	$428,144.22	$1,610.430.12

What Should You Do With $100?

What it really boils down to is this: How do you want to spend the $100 you have right now, as well as the hundreds (or thousands) of extra dollars you’ll have over the next few years?

For the most part, you have three main options to choose from. You can:

• Spend the Money: Buy “stuff” you want, go out to eat at your favorite restaurants, and have a blast as long as you can. YOLO!

• Save Your Money: Stash your cash in your emergency fund, which is hopefully held in a high-yield savings account. You can also use your money to pay down debt.

• Invest for the Future: With some discipline and forward-thinking, you can also begin investing your extra $100 or more for the future.

While you may have to give up a few things you want today to start investing $100 every single month, your future self will thank you. Not only that, but you’ll get used to stashing away $100 per month if you give it enough time, and you may not even miss the money at all.

Investing for Quick Profits vs. Long-Term Gains

As you decide how you want to invest your $100, you’ll also need to think about whether you want to invest for quick profits or for the long term. The fact is, there are a ton of ways to flip $100 and turn it into a few hundred dollars or even $1,000 or more over a few days or a few weeks. However, you can also get in the habit of investing to build long-term wealth, which is a totally different ballgame.

Examples of how to flip $100 include:

• Searching for Garage Sale or Thrift Store Finds You Can Sell at a Profit

• Investing Into High Value Sneakers You Can Flip

• Flipping Sports Cards After Buying Them for Less Than They’re Worth

• Offering a Service on Social Media, Such as Washing Cars or Painting

As you decide whether you want to flip $100 or invest for the long haul, it’s important to remember that time is money. For the most part, flipping items for profit requires you to exchange time for money, so this work isn’t passive at all.

Investing for the long haul is the opposite of that because it helps you build long-term wealth in a way that is totally passive. With the best passive investments, you don’t have to do any work outside of contributing more money to your account every month.

Examples of how to invest for the long term include:

• Buying index funds, ETFs, and other long-term investments aimed at long-term growth

• Pouring small sums of money (even as little as $1) into fractional shares of popular stocks

• Investing in crypto or NFTs and HODLing (holding on for dear life)

• Investing in real estate with the goal of creating long-term profits

How to Invest $100 Starting Today

Here’s a secret about investing most people don’t know:

It’s not really about how much you invest at first. What matters most is that you actually get started and do something.

Whether you’re trying to figure out how to invest $100, or you need to know how to invest $1,000 dollars, the key to getting ahead is making a decision and sticking with it.

Ready to invest $100? The ten strategies below are the perfect place to start.

1. Round Up Your Savings

Risk Level: Low

Acorns is an app that automatically “rounds up” your change when you make a purchase so it can invest that money on your behalf. When you sign up for a plan, you can automatically grow your wealth and your savings. You can also even choose among professionally curated portfolios that might work better or worse based on your goals and risk preferences.

How It Works:

Plans cost $3 or $5 per month depending on whether you want a personal plan or a family plan. Both plans automatically round up your purchases and invest your spare change, and they come with added benefits like checking and fee-free access at more than 55,000 ATMs nationwide.

Where to Get Started:

To get started, open an account with Acorns and download the mobile app. Pick your plan and you can begin rounding up your purchases and investing the difference at a lightning-fast speed. The top-tier Personal and Family plans are an excellent place to stash your initial $100 investment. Learn more through my Acorns app review.

Who It’s Best For:

Acorns is ideal for anyone who wants help saving money automatically, then investing that money into expertly chosen investments.

2. Dabble in Fractional Shares

Risk Level: Varies

Fractional shares are nothing more than a “fraction” or a “slice” of an individual stock. As a result, this type of investing lets you use $100 to buy stocks and other investments you couldn’t otherwise afford. You can also diversify your $100 investment across many different stocks and other assets that would work well in your portfolio.

How It Works:

You can buy stock in a company even if you don’t have enough money to buy an entire share. It’s called fractional share investing. Instead of buying one share of a $100 stock, you could invest $10 in 10 different stocks.

Where to Get Started:

Many online brokers make it easy to open an account and get started. This platform even lets you invest into BTC, ETH, LTC, DOGE and other cryptocurrencies with 0% in fees and a minimum starting investment of just $1.

Who It’s Best For:

Many online brokers are a great option for investing in fractional shares since there are no commissions and no minimum balance required to get started. Fractional share investing can be a good option for any investor who wants to diversify as much as they can.

3. Invest in Real Estate

Risk Level: Varies

Investors who poured their money into real estate have done incredibly well over the last decade and especially the last few years. In fact, the National Association of Realtors (NAR) just reported that the median price for a single-family home rose 15.7% nationally from May 2022 to May 2023. That’s a pretty sweet return for just a single year, and this rate of increase comes after a decade of rising prices among all types of housing across the board.

That said, the real estate industry has a fairly high barrier to entry since you need tens of thousands of dollars to begin buying up properties. That’s why I typically suggest investing in real estate through other means instead, including Real Estate Investment Trusts (REITs).

How It Works:

By investing in Real Estate Investment Trusts (REITs), you get exposure to real estate without having to buy individual properties or deal with the grunt work of being a landlord. Once you pick a fund and invest your money regularly, your investment balance can grow based on real estate profits that are realized over time.

Where to Get Started:

Fundrise is my favorite platform for investing in Real Estate Investment Trusts (REITs). However, this company specifically sells private equity REITs, or “eREITs,” which is a trademarked term. You can get started with Fundrise with as little as $10, and the starter account comes with auto-invest and dividend reinvestment features.

Who It’s Best For:

Fundrise is best for individuals who want to invest in real estate without dealing with the hassles involved in buying individual properties. There are also many other popular REITs to choose from, including options from brokerage firms like Fidelity and Vanguard.

4. Buy Index Funds

Risk Level: Moderate

An “index fund” is a type of mutual fund or exchange-traded fund that tracks the returns of a market index such as the S&P 500. This means you can invest in an index fund and receive roughly the same return as the market it tracks without any added work on your part.

Index funds are popular with long-term investors who are looking for ways to invest passively without having to worry about picking individual stocks. Plus, index funds have secured pretty good returns over the years. As an example, the S&P 500 index fund from Vanguard (VFIAX) is currently averaging a return of 8.17% over the last 15 years.

How It Works:

Investing in index funds is about as easy as it gets. All you have to do is select one of the best online brokerage firms then open an account. Decide on the index you want to track, and invest in the fund that suits your needs.

Where to Get Started:

I suggest investing in index funds with Betterment, mostly because this robo-advisor will work with you to help you achieve your long-term investing goals. You can set up an account in minutes, and Betterment offers added benefits like portfolio rebalancing, dividend reinvestment, and tax-loss harvesting.

Who It’s Best For:

Index funds are ideal for investors who want a passive way to invest in the stock market so they can build wealth over time.

5. Collect Dividends

Risk Level: Moderate

When I talk about collecting dividends, I am of course talking about investing in dividend stocks. This type of stock pays out a distribution of cash or stock to its shareholders regularly, so they are commonly used by investors who want to build streams of passive income.

For the most part, dividend stocks are offered by companies that have a long history of strong profits. However, there are also plenty of popular dividend-paying ETFs to choose from. Just remember that dividends aren’t necessarily guaranteed, and the expense ratios for dividend stocks, mutual funds, and ETFs can be higher than investment options without dividends.

How It Works:

Like other stock market investing strategies, you can get started with dividend stocks by opening an online brokerage account. One of the best platforms for this type of investment is M1 Finance since it lets you invest in dividend stocks without any investment fees.

Where to Get Started:

Open an account with M1 Finance since this company lets you invest without any fees. From there, you can build your own pie of investments with a selection of ETFs such as the Schwab US Dividend Equity ETF (SCHD), the Vanguard International High Dividend Yield ETF (VYMI), the Vanguard Dividend Appreciation ETF (VIG), and more.

6. Enroll in a Course or Certification

Risk Level: Low

There are thousands of different online courses you can take for less than $100, including ones that can help you expand your knowledge in any area you want. Whether you want to learn how to be a better writer, how to use Photoshop, or how to get paid to be a speaker — the options are endless!

How It Works:

A variety of online platforms let you purchase online courses and certifications in almost any industry. Consider what skill can be useful in your professional or personal life. Perhaps a certification would help you get a promotion at your current job, or maybe a new skill would help you drop your 9-to-5 job and begin working in a brand-new field.

Where to Get Started:

MasterClass is my top pick for enrolling in courses and certifications. With this online platform, you can pay a small monthly fee ($15 to $23) and enroll in hundreds of courses in arts and entertainment, music, business, and more. Your initial $100 investment in this platform could currently pay for more than six months of unlimited learning.

Who It’s Best For:

Online courses and certifications can be a good investment for anyone, but MasterClass in particular is a good choice if you don’t know exactly which courses you want to take. With a small monthly fee, you can take a bunch of different courses until you find the right fit.

7. Open a Roth IRA

Risk Level: Varies

A Roth IRA is a type of retirement account you can open in addition to other accounts you have like a workplace 401(k). This type of retirement account lets you invest with after-tax dollars, and your money grows tax-free until you are ready to access it. The best part is, you can withdraw your Roth IRA funds without paying income taxes once you’re at least 59 ½ years in age.

How It Works:

You’ll need to open a Roth IRA on your own, which is easy to do with any number of online brokerage firms. Just keep in mind that income caps limit who can contribute, so it’s possible you may not be eligible if you have a high income.

Also, note that contribution limits apply. Most people can contribute up to $6,500 to a Roth IRA (and a traditional IRA, in total) in 2023, yet those ages 50 and older can contribute up to $7,500.

Where to Get Started:

The best places to open a Roth IRA include Betterment, Stash, M1 Finance, and more. Research online brokerage accounts until you find the best option for your needs and goals.

Who It’s Best For:

A Roth IRA makes sense for anyone who wants to save money for retirement or other goals. Since this account lets you withdraw money without income taxes in retirement, it’s also a good choice for people who want access to tax-free money later in life.

8. Worthy Bonds

Risk Level: Medium

Worthy is a company that offers bonds with a fixed interest rate of 5%. You only need $10 to get started, and interest compounds in your account on a daily basis. There are no hidden fees, and the money you invest is loaned out to businesses that can make a positive impact in your community.

How It Works:

Opening an account with Worthy is easy, and there are no fees or penalties involved. Since each bond costs just $10, your initial investment of $100 can help you buy 10 bonds right off the bat.

Where to Get Started:

Head to the Worthy website and select the option to open a new account. From there, you can buy as many bonds as you want in $10 increments. Interest will accrue daily in your account, and there are no fees involved.

Who It’s Best For:

Worthy bonds are a great option for anyone who wants to earn a fixed rate of 5% on their savings.

9. Open a High-Yield Savings Account

Risk Level: Low

If you have $100 to your name but you don’t have any extra cash for emergency expenses, then your best bet, for now, is to save that money. However, you can easily earn a better rate of return with a high-yield savings account from an online bank.

This type of savings account works like other savings accounts from a traditional bank. Setting up an account is a breeze, and the biggest difference is that you can earn a higher interest rate on your deposits.

How It Works:

The best online savings accounts are from banks like Discover, CIT Bank, and national average of just 0.07%. Just make sure you compare accounts until you find an option with the perks you want and no hidden fees.

Where to Get Started:

Discover offers excellent high-yield savings accounts with no minimum deposit requirement and no ongoing fees. You can also earn 5x the national average on your savings. That’s still not a lot, but earning something is still better than nothing.

Who It’s Best For:

Everyone needs savings for emergencies and a rainy day.

Your Investment Style 

If you only have $100 to invest right now, you’ll want to be careful you’re investing in a way that aligns with your investment style. This style will probably depend on a whole host of factors, which may include:

• Whether You’ll Need Easy Access to Your Money

• How Much Risk You Want to Take

• Your Investment Timeline

• How Much Research You Want to Do

If you want to invest for the long haul and you won’t need your $100 right away, then you may want to look into options like opening a Roth IRA, investing in cryptocurrency, or getting started with fractional shares. Each of these lets you grow your money over a long timeline, and potentially without a lot of fine print or hidden fees.

On the flip side, you may want a “safer” option if you need access to your $100 when emergencies come up. In that case, Worthy Bonds or a high-yield savings account might be a better choice.

Invest $100 to Make $1,000 a Day

Many people also wonder how they can invest $100 and turn it into $1,000 in income for every day of the year. While it will absolutely take time to build up $1,000 per day in passive income, keep in mind that $1,000 per day works out to $365,000 per year, and there are all kinds of people who have that kind of passive income coming in.

Generally speaking, you’ll need a $9 million dollar investment portfolio earning 4% to generate $360,000 per year (or a little less than $1,000 per day) in passive income. However, you’ll only need a portfolio of $6 million dollars to generate that much if your money is earning 6% per year.

If your portfolio is earning 9%, on the other hand, you only need a portfolio of $4 million to generate $360,000 in spending money every year.

Building that kind of portfolio may seem out of reach, particularly if you’re starting out with just $100. However, these examples still show the point I’m trying to make.

The sooner you start investing, the faster you can start working toward your goals.

From there, finding a way to achieve higher annual returns can help you reach your goals at a lightning-fast speed.

Don’t Waste Your $100 on This

Finally, you’ll want to read this warning: Don’t fall for get-rich-quick schemes!

It’s absolutely crucial to avoid throwing your $100 (or more) away on something that won’t help you build wealth. Remember that there are always going to be people who promise you can get rich quick if you do this or that, but that their promises are totally empty the vast majority of the time.

Also try to remember the golden rule that applies to most aspects of our lives:

If something seems too good to be true, it probably is!

Some of the most common schemes to avoid include:

• Penny Stocks (Remember the Movie the Wolf of Wall Street?)

• Options Trading

• Fly by Night Crypto Meme Coins

• Pyramid Schemes

• Almost All MLMs (Market-Level Marketing Companies)

If someone is promising that you can turn your $100 into thousands of hundreds of thousands of dollars practically overnight, you should run from them, block them on your phone, or both right away.

Chances are good that whatever plan they’re suggesting will only benefit them (and not you).

The Bottom Line on Investing $100

There are many ways to invest $100, just as there are smart options if you have $1,000 to invest, $5,000 to get started, or $10,000 you are ready to devote to building wealth. Make sure you compare all of your options and only dive in once you know you’re ready.

Although $100 may not seem like a lot, imagine what you can accomplish if you began investing $20, $50 or even $100 per month. When it comes to building wealth, you really do have to start somewhere. Investing $100 is the first step to building the life you really want.

FAQs on Investing $100

The post 9 Ways – How to Start Investing With $100 appeared first on Good Financial Cents®.

Are you curious about how much $30 an hour could earn you in a year? Well, wonder no more because we’re diving into the nitty-gritty of annual and monthly salaries for those who make this hourly wage. Money may not grow on trees, but with the right salary, it might as well.

Did you know that according to the United States Bureau of Labor Statistics, the median hourly wage for all workers is $29 per hour? That means making $30 an hour is already above average. So, let’s see what your yearly take-home pay could look like with such a handsome hourly rate.

But wait, there’s more. We’ll also explore what type of jobs typically pay $30 an hour and how you can make sure that you get the most out of your salary. Stick around, and we’ll give you all the answers.

$30 an Hour Is How Much a Year?

We calculated the annual salary based on an hourly rate of $30 and assuming an average workweek of 40 hours.

Calculation Breakdown

Let’s break down the math to find out how much you could earn annually with a $30 hourly wage:

1. Consider an average workweek of 40 hours and an average year consisting of 52 weeks.

2. Multiply the number of hours in a workweek (40) by the number of weeks in a year (52) to calculate the total number of working hours in a year: 40 hours x 52 weeks = 2,080 hours.

3. Multiply the $30 hourly rate by the total number of working hours (2,080) to determine the gross annual salary: $30 x 2,080 hours = $62,400.

Keep in mind that this calculation represents the gross annual salary, not accounting for taxes, insurance, 401K, or deductions. Nonetheless, it reveals the potential earnings for someone with a $30 hourly wage.

The gross annual salary of $62,400 is considered a middle-class income as it is above the salary threshold of $50,000.

Part-Time Work?

For those working part-time, the annual salary calculation differs slightly. Let’s assume you work 20 hours a week instead of the standard 40:

• Multiply your weekly hours (20) by the number of weeks in a year (52) to determine the total number of working hours in a year: 20 hours x 52 weeks = 1,040 hours.

• Calculate your gross annual salary by multiplying the hourly rate of $30 by the total number of working hours (1,040): $30 x 1,040 hours = $31,200.

What Does $30 an Hour Translate to in Terms of Paycheck?

Monthly Paycheck

With a $30 hourly rate, your gross monthly paycheck would average around $5,200. We arrived at this figure by dividing the annual salary of $62,400 by 12 months: $62,400 ÷ 12 = $5,200.

Keep in mind that the actual amount you receive may vary depending on factors such as the number of days in each month and your payday schedule.

If you were to receive a pay raise from $20 to $30 per hour, you could expect an additional average of $866 per month, significantly boosting your earnings.

Weekly Paycheck

The weekly salary for someone making $30 an hour would be calculated by dividing their annual salary of $62,400 by 52 weeks: $62,400 ÷ 52 = $1,200.

This equates to approximately $1,200 per week before taxes and deductions are applied.

Bi-Weekly Paycheck

Having a bi-weekly payday means that you receive two paychecks per month. To calculate your gross bi-weekly salary, divide the annual income of $62,400 by 26 paychecks: $62,400 ÷ 26 = $2,400.

With an hourly rate of $30, you would receive a bi-weekly paycheck of approximately $2,400 before taxes and deductions.

Daily Paycheck

Your daily paycheck is based on how many hours you work each day. For instance, if you work for 8 hours, your daily pay would be $240 (calculated at $30 per hour).

Earnings Overview: $30 per Hour Salary Breakdown

Pay Frequency	Hourly Rate	Gross Pay
Monthly Paycheck	$30	$5,200
Weekly Paycheck	$30	$1,200
Bi-Weekly Paycheck	$30	$2,400
Daily Paycheck	$30	$240 (for 8 hours)

How Does $30 an Hour Compare?

Earning $30 an hour results in a yearly income of $62,400, which surpasses the national average income of $48,672 per year but falls below the median salary of $68,703 per year. Nonetheless, it is an excellent salary for someone who holds only a high school diploma or lacks a college degree.

Securing a job with a $30 hourly wage also provides a competitive advantage to job hunters compared to those just beginning their job search. With this pay rate, job candidates can anticipate receiving attractive job offers accompanied by valuable career guidance.

Is $30 an Ideal Hourly Wage?

Well, that’s a bit of a tricky question, isn’t it?

Your location and way of life play a huge part in determining the worth of that paycheck. But let’s try to break it down with the federal poverty level in mind, shall we?

For all you single folks out there without dependents, a yearly income of $14,580 deems you officially above the poverty line – congrats!

Got a family of four?

From a more analytical perspective, an hourly rate of $30 can indeed be suitable, contingent upon the cost of living in your area and your personal circumstances. As per the federal poverty guidelines, a single individual without dependents would surpass the poverty threshold with this rate. Further, a household of four would likewise be above the poverty line. 

It is important to stress, however, that financial prudence is critical in maintaining a comfortable lifestyle with a $30 hourly rate. By efficiently managing one’s expenses, this income level can adequately sustain both individual and family needs.

Paid Time Off for Hourly Employees Earning $30 per Hour

Don’t underestimate the power of paid time off, especially as an hourly employee. With paid time off, you can maintain a healthy balance between work and personal life while still securing a stable income.

Imagine working 40 hours a week throughout the year, and let’s dive into two scenarios that show how valuable paid time off can be to your bank account.

Case 1: Paid Vacation

Are you one of the lucky ones receiving two weeks of paid time off annually? If you are, pat yourself on the back! Your yearly earnings will stay consistent at $62,400, just like those fabulous salaried folks out there.

Case 2: Non-Paid Vacation

Unfortunately, not all hourly employees receive the glorious benefit of paid time off. In this case, it’s crucial to anticipate a modest dip in your yearly income due to unforeseen circumstances or even some well-deserved vacation time.

Let’s say you take two weeks off without pay; that leaves you working 50 weeks (2,000 hours) out of the year, earning you $60,000. So, while your daily earnings may hover around two hundred bucks a day, don’t forget to plan for those no-pay-off days.

How Much Is $30 An Hour After Taxes?

Understanding how taxes can affect your hourly wage is crucial. Although everyone’s tax situation is different, this article will make use of the following general assumptions:

Federal Tax Rate:	12%
Social Security and Medicare (FICA) Rate:	7.65%
State Tax Rate:	4%
Gross Annual Salary:	$62,400

Here is an estimation of your tax deductions based on the given assumptions.

• Federal Taxes: $7,488

• Social Security and Medicare: $4,773

• State Taxes: $2,496

Net Annual Salary: $47,643

We will calculate your hourly wage based on the assumption that you work 2,080 hours per year.

Net Hourly Wage: $22.9

Your gross hourly wage is $30, and your net hourly wage is $22.9, which means there is a $7.1 difference between them.

Please note that the calculations provided are an estimation only, and your real tax rate and deductions may be different.

Note: There are some states in the US that do not impose state taxes on salary income. If you live in one of these states, you will still need to pay your federal tax and FICA.

Here is a list of states that do not have a state income tax:

1. Alaska

2. Florida

3. Tennessee

4. Nevada

5. South Dakota

6. Texas

7. Washington

8. Wyoming

9. New Hampshire

What would your net monthly income be if you lived in any of these states and earned $30 per hour?

Let’s do math again!

Based on the assumptions provided, I have calculated an estimate of your tax deductions in a tax-free state:

Federal Taxes:	$7,488
Social Security and Medicare:	$4,773
Net Yearly Salary:	$62,400 – ($4,773 + $7,488) = $50,139
Net Monthly Salary:	$4,181

Tips for Budgeting With a 30/Hour Salary to Maximize Savings

Bring out the best of your $30 per-hour salary by mastering the art of budgeting. With a solid budget, you’ll pave the way for a bright financial future by saving for the essentials, like retirement, emergencies, and other endeavors.

Be a Detective with Your Expenses

It’s time to journey into the realm of finance and uncover the mystery that is your expenses! Seek out the differences between your fixed expenses like rent or mortgage, car payments, and loan installments and your ever-changing variable expenses such as groceries, gas, and fluctuating credit card bills.

Conquer the Debt Monster

Waging a battle against debt is vital in mastering budgeting on a $ 30-per-hour salary. Take charge by striking down high-interest debt, like menacing credit card balances, first. Your debt-to-income ratio constantly changes with the ebb and flow of your salary, so it’s important to stay up-to-date.

Managing Discretionary Spending

To make the most of a $30-an-hour salary, keeping discretionary spending in check is crucial. Think of these non-essential expenses like entertainment and hobbies as the cherry on top – satisfying 5-10% of your income after covering the essentials. Once bills are paid, and savings are secured, you can enjoy the simple pleasures without breaking the bank.

Savings and Retirement – Your Best Friends on a $30/hr Salary

Automate your savings and watch your emergency fund grow effortlessly. And while you’re at it, why not hop on the 401k bandwagon? Enrolling in an employer-sponsored retirement plan unlocks pre-tax deductions from your paycheck and could provide an employer match.

With this dynamic duo, you’ll be on your way to securing savings and a rich retirement without missing a beat.

The table below shows the recommended budget percentages based on an hourly wage of $30.

Expense	Amount
Rent/Mortgage	$1373.00
Utilities	$300.00
Transportation	$568.00
Groceries	$300.00
Debt Repayment/Charitable Donations	$416.00
Health/Life Insurance	$200.00
Retirement/Savings	$832.00
Entertainment	$171.00
Total	4160

Prioritize Expenses

As a budgeting whiz, take control of your expenses and pay your essential bills first – rent, utilities, and food reign supreme. Then, attending to other must-haves like transportation, insurance, and healthcare, you’ll create a well-structured budget that leaves room for those delightful discretionary expenses. It’s all about balance with a $30-an-hour salary.

Keep Your Budget in Check

Stay ahead of the game by continuously revisiting and fine-tuning your budget. As your financial landscape evolves, it’s crucial to keep your budget aligned with your current monetary reality. Don’t let your budget gather dust — consider it a living document, always prepared to accommodate life’s twists and turns.

Finding an excellent employer is another valuable piece of the puzzle. Be on the lookout for companies that value the importance of employee growth and development. More often than not, employers who appreciate their workforce will ensure that you gain relevant experience and certifications needed for better positions.

Let’s take the food service industry, for instance. Here, numerous business-savvy restaurants offer entry-level positions with ample training opportunities to help their dedicated employees climb the ranks. To cap it off, these techniques pave the way to not only bagging a $30-an-hour job but setting the stage for even greater monetary success down the line.

Types of Jobs That Pay 30/Hour Salary

If you are looking for jobs that pay $30/hour, job search and career advice websites can be helpful. Some job titles that typically offer this salary range are:

Job Title	Hourly Wage
Insurance Underwriters	$30.45
Food Scientists	$30.95
Dental Hygienists	$32.63
Budget Analysts	$33.29
Multimedia Artists & Animators	$30.20
Arbitrators, Mediators and Conciliators	$30.41
Speech-Language Pathologists	$32.86
Purchasing Agents and Buyers	$30.02
Market Research Analysts	$32.45
Landscape Architects	$31.69
Writers	$31.04
Physical Therapists	$36.64
Civil Engineers	$39.03
Occupational Therapists	$33.98
Materials Scientists	$39.59
School Psychologists	$34.77
Diagnostic Medical Sonographers	$30.60
Geographers	$34.33
Sociologists	$36.63
Architects	$37.93
Environmental Engineers	$38.82
Animal Scientists	$31.02
Film and Video Editors	$30.62
Nuclear Medicine Technologists	$32.91
Education Administrators	$38.53
Loan Officers	$30.39
Urban and Regional Planners	$31.10
Accountants	$32.42
Operations Research Analysts	$36.23

These careers can potentially pay you a salary of $30 per hour or more. By putting in hard work and commitment, it’s achievable to reach that aim.

Side Hustles To Supplement Your $30 Income

Looking to give your bank account that extra zing? Say hello to side hustles! These wonderful opportunities let you make some moolah on the side while enjoying your free time. Dive into these fresh ideas and watch your earnings soar:

Master the Online Marketplace

You don’t need to be an artist to launch a successful online store. Dive into the print-on-demand business without the need for upfront capital investments, and make your mark on platforms like Etsy, Shopify, and Amazon.

Delivery Driving

Transform your idle hours into a gold mine by taking up delivery driving gigs with crowd favorites like DoorDash, Uber Eats, or Instacart. Catch the dinner rush to maximize earnings and cherry-pick delivery jobs that fit your fancy!

Virtual Tutoring: Monetizing Expertise

Leverage your specialized degree and share your knowledge by becoming an online tutor, assisting students across the globe. With platforms like VIPKID and Chegg, you can cultivate a stable side income, earning up to $30 per hour.

Short-term Rentals: A Calculated Investment

For a fruitful side income, consider listing extra rooms with private entrances on short-term rental platforms like Airbnb. By maintaining a presentable and clean space with effective marketing, you can entice guests and yield higher returns.

Unleash Your Freelance Potential

No matter your expertise – be it photography, writing, tech, or beyond – freelancing opens up a world of opportunities. Capture stunning images for websites, pen engaging blog posts, articles, and reviews, or even put your design skills to work by creating websites and assisting as a virtual helper. With resourceful platforms like Fiverr, Upwork, and Freelancer, you control when and how much you make.

Blogging & Podcasting: Making the Most of Your Voice

In a digital age, content continues to reign supreme. Become an online sensation by starting your own blog or podcast, and speak to the world about your passions. This only requires a mobile phone and internet connection, so give it a go.

Share Your Skills

Use your unique talents to create positive change in your community! If cleaning and organizing is your jam, or if you have a magical green thumb, offer services like pet sitting, dog walking, child care, and handyman assistance to make some extra cash.

Final Thoughts on a $30/Hour Salary

The cost of living, housing costs, and taxes greatly influence how much money you’ll have in your pocket at the end of the month. When taking into account these three factors, a salary of $30 per hour on an annual basis can support a comfortable lifestyle that is above the poverty line.

The key to making this work is budgeting and smart money management. With diligence and dedication to financial planning, you can enjoy the benefits of your salary without having to worry about making more money.

$30 an Hour FAQs

The post $30 an Hour Is How Much a Year? appeared first on Good Financial Cents®.

One of my most favorite questions that I often get as a financial planner is

“What’s your best rates on Roth IRAs?”

Coming in at a close second is,

“What’s the best stock to buy right now?”

Both of those questions are extremely hard, if not impossible, to answer. In addition, the question I get on Roth IRAs makes almost no sense at all. So, how would you explain Roth IRA rates to someone?

Whenever I get that question, I typically start by explaining what an I-R-A stands for:

 Individual Retirement Arrangement (emphasis on arrangement).

I have to admit that I even thought that the “A” stood for account at one point in my life. However, I was informed by my readers that the Internal Revenue Service actually refers to them as “arrangement.”  (Thanks to my readers for keeping me on my toes!)

Need to Open a Roth IRA?

My favorite online broker is M1 Finance but you can check out our recap on the best places to open a Roth IRA and the best online stock broker sign-up bonuses.

There are many good options out there, but I have had the best overall experience with M1 Finance. No matter which option you choose, the most important thing with any investing is to get started.

Another important fact for everyone to realize is that Roth IRAs don’t pay anything or have interest rates attached to them.   They are just a type of account – a retirement account.

Roth IRAs Are Not Investments

The Roth IRA serves as a retirement “account,” but not a retirement investment. Many people have the belief that IRAs are like a CD that pays out interest.

However, this is only true if you invest in an IRA at your local bank. In this case, you are purchasing a CD within the IRA because CDs are typically the only investment option that is available (some banks now do have in-house brokerage firms that allow you to put money into other investments).

So in this case, the best IRA rate you can get on your Roth IRA Account is what the going CD rates are.

IRAs Are the “Investment Vehicle”

I have always explained the IRA as your own personal investment vehicle. Once you open an account, you can then choose which type of passengers go inside your vehicle.

Of course, a mental image of a clown car might be coming to mind at this point. You can have as many clowns in your IRA as you want – or as few as you want. I recorded this YouTube short using my daughter’s Barbies to illustrate this here:

You could have all your money invested into Walmart stock or spread out across 100 different stocks (You would have to have a substantial amount of money in the IRA to do this).

If you open a Traditional or Roth IRA at a brokerage firm, you may invest into CDs just like at your local bank, but you also open the door to many other investment choices. Then, what your IRA pays is determined on the actual return of that investment.

If you had invested into the stock market in 2008, your Roth IRA probably paid closer in the -30% range.   (Ouch!)

When somebody asks me what the best Roth IRA rate is, I simply respond with:

“It depends.”

Then I wait for confusion to set in.

What’s the Average Roth IRA Interest Rate?

While Roth IRAs don’t pay interest directly, the investments inside of them can pay dividends, capital gains and interest. What you can expect to earn depends on the investments you have chosen for your Roth IRA.

To give you an idea of the potential returns, let’s consider some investment options commonly found in Roth IRAs. Large-cap stocks historically offer average rates of return ranging from 7% to 10%, but they come with higher risks.

Small-cap stocks tend to yield slightly higher returns, averaging between 9% and 11%. On the other hand, government bonds provide lower-risk investments with average rates of return ranging from 2% to 5%.

Certificates of Deposit (CDs), another option for Roth IRAs, offer lower average rates of return, typically ranging from 1% to 3%, depending on the term.

Remember, these figures are historical averages and not guarantees. Your actual Roth IRA returns will depend on the performance of the investments you choose.

Let’s Define a Roth IRA

Now that we have explained how a Roth IRA doesn’t really have “rates” of its own, let’s delve into how Roth IRAs actually work.

In summary, a Roth IRA is a retirement account that is funded with after-tax dollars. As such, many people use a Roth IRA in conjunction with a tax-advantaged retirement account.

For 2023, the maximum amount most people can contribute to a traditional or Roth IRA is $6,500. Those ages 50 and older can make what is known as a “catch-up contribution” and contribute up to $7,500 each year.

Not everyone can open a Roth IRA, however, due to the rules that govern this retirement account. To be able to contribute the maximum amount to a Roth IRA in 2023, for example, you must:

• Be single or head of household with an income less than $138,000
• Be married filing jointly with an income less than $218,000

The income cut-off for Roth IRAs doesn’t come to an abrupt halt. At $138,000 for singles and $218,000 for married couples filing jointly, the maximum amount you can contribute begins to phase-out gradually. For 2023, the phase-outs for retirement savers are as follows:

• Single or head of household begins phasing out at $138,000, and becomes ineligible at $153,000
• Married filing jointly begins phasing out at $218,000, and becomes ineligible at $228,000

Roth Accounts That Handle Investing For You

Traditionally, when a person opened a Roth IRA account all of the interest earned would depend on their ability to invest in stocks, mutual funds, or other investments.  With better artificial intelligence that is not the case any more.

A new type of investment advisor has been created by using machine learning to make the investments for us.  These new advisors are called robo-advisors and have become a very popular place to open your Roth IRA. Currently there are two main competitors who offer a Roth account:

• Wealthfront – Is a very good service and is top notch on their technology.  Their entire platform is designed so you do not have to talk to a person.  Once you do the initial risk assessment survey they take it from there. 
• You can open an account with Wealthfront with only $500 and there are no fees on the first $10,000 you invest.  After the $10k threshold you only pay 0.25% on all additional money invested.
• Betterment – Betterment is the largest of the robo-advisors and has been a personal favorite.  They offer their services for a low fee of 0.25% and the back end is really slick.  When you open an account with Betterment, you will have a five minute questionnaire that determines your risk tolerance and then they do all the investing and adjusting for you.

Why Are Roth IRAs So Popular?

If you read about retirement strategies at all, you have probably heard all about the Roth IRA and its benefits. Year after year, Roth IRAs remain popular among those serious about saving for retirement, and for myriad reasons.

Here are some of the reasons Roth IRAs continue to pique the interest of retirement savers everywhere:

By contributing with after-tax dollars now, you can save on taxes later. Since Roth IRAs are funded with after-tax dollars, you don’t get a tax break on the front end when you choose to contribute. However, many people see this as much more of a positive than a negative. 

By contributing to a Roth IRA with after-tax dollars, you can avoid paying taxes on distributions down the line. That’s right; contributions to Roth IRAs grow tax-free and distributions are also tax-free.

You can contribute to a Roth IRA or traditional IRA in addition to your tax-advantaged retirement accounts. Anyone who is serious about saving for retirement will want to max out as many retirement accounts as possible while they’re still young.

Fortunately, you can contribute to a Roth IRA even if you max out your work-sponsored 401(k) or retirement account.

Diversify your exposure to taxes. Where tax-advantaged retirement accounts let you avoid paying taxes on your contributions now, a Roth IRA provides the opposite experience.

Because of this, many people see having both types of accounts as a way to diversify their exposure to taxes in the future. 

Anything you contribute to a Roth IRA will grow tax-free. And once you’re ready to begin taking withdrawals, the money you receive will also be tax-free.

You can withdraw contributions without paying a penalty at any time. Here’s something few people know about their Roth IRA. If you want, you can withdraw your contributions at any time without penalty. Because of this, many people see the Roth IRA as a type of savings account as well. 

Just remember, you can withdraw your contributions without penalty at any time, but not your earnings.

You don’t have to begin taking distributions at a certain age. While traditional IRAs require you to begin taking distributions at age 72, Roth IRAs don’t have that requirement. Because of this, they offer more flexibility than most retirement plans. 

Since Roth IRAs will let you grow your money indefinitely, you can hold onto them at the last minute and only begin taking money out when you need it.

How to Decide if You Should Open a Roth IRA

So, at this point, we have covered what a Roth IRA is and what it isn’t. We have also talked about who qualifies for one and highlighted the major benefits that come with using a Roth IRA for retirement.

But, is a Roth IRA really right for you?

When deciding whether to open a Roth IRA, it’s important to consider your individual situation and your retirement goals. A Roth IRA might not be right for everyone, but opening one is probably a smart move if you fall into one of these categories:

You should consider a Roth IRA if…

• You want to save as much money for retirement as you can. If you’re serious about saving for retirement, the Roth IRA offers one more place to stash your money away. Even after you max out your work-sponsored 401(k), you can still put $6,500 in a Roth IRA or traditional IRA in 2023 (or $7,500 if you’re ages 50 and older). If you have a lot of discretionary income and want to put it away for future use, the Roth IRA is a no-brainer.
• You think you will be in a higher tax bracket later. Since the Roth IRA is funded with after-tax dollars, the money you invest is allowed to grow tax-free. Then, you’ll get tax-free withdrawals once you begin taking money out – as long as you’re ages 59 ½ or older and your account has been open for at least five years. If you think you might be in a higher tax bracket when you retire – or if you worry taxes will be higher for everyone across the board – investing with a Roth IRA is one way to shelter yourself from higher taxes in the future.
• You want a retirement account that allows you to withdraw contributions without paying a penalty. With a Roth IRA, you can withdraw your contributions at any time without a penalty. This makes this account very different from other tax-advantaged retirement accounts which require you to pay a penalty if you choose to take your contributions out early. This is also the reason many people who want some flexibility choose to invest in a Roth IRA. Since you can withdraw your contributions without a penalty at any time, any money you invest will remain within your reach.
• You want to provide your heirs with some tax-free funds upon your death. If you’re worried about your heirs getting stuck with a huge tax bill, having a Roth IRA might be a smart move. Because these accounts are funded with after-tax dollars, your heirs can generally access this money without paying taxes upon your death. If you hope to save your heirs from paying at least some taxes on their inheritance, the Roth IRA is a smart investment vehicle in that respect.
• You want at least one account you don’t have to touch. If you want at least one retirement account that doesn’t come with a minimum age for distributions, the Roth IRA is an extremely smart choice. By opening this account and funding it for a lifetime, you create a retirement nest egg that won’t need to be accessed once you reach a certain age. Whether you live to be ninety years old, you’ll never have to take a single cent out of your Roth IRA if you don’t want to.
• You want to invest in diverse investment products. While a work-sponsored 401(k) plan might offer limited investment choices, the fact that you can open a Roth IRA anywhere and on your own terms means you get to choose where you invest that money. That could mean investing in stocks, bonds, mutual funds, and more. Of course, you’ll also get to choose a firm to invest that money for you. While Ally Invest is one of our favorite options, you’ll find an array of choices out there.

We also highlighted some other top choices in our guide on the best places to open Roth IRA.

The Bottom Line – Best Roth IRA Rates

I hope you have enjoyed this primer on the fallacy of “Roth IRA rates,” along with a general idea of Roth IRA Rules and guidelines. Now that you know all about this exciting investment vehicle, it’s time to figure out if a Roth IRA is actually right for your situation.

No one can make this decision for you, but I hope we highlighted some of the top reasons a Roth IRA might work in your favor. As a general rule, having more money saved for retirement is better than not having much saved at all.

The Roth IRA is just one more place to stash your money where it can grow over time and be there for you when you’re ready to retire.

The post What Are Your Best Roth IRA Rates? appeared first on Good Financial Cents®.