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Yahoo
an hour ago
- Business
- Yahoo
You Don't Need To Be a Tech Bro or Crypto Trader To Get Rich — 5 Non-Trendy Paths to Wealth
Building wealth doesn't have to mean launching a startup, day-trading crypto, or chasing the next tech unicorn. Read More: Try This: Some of the most effective strategies are the least flashy and the most overlooked. While they may not come with Twitter hype or venture capital buzz, these methods work quietly in the background to grow real, lasting wealth. If you're more into steady gains than sudden fame, here are five non-trendy ways to get rich without the drama. Contribute Consistently to Retirement Accounts Regularly investing in tax-advantaged accounts like IRAs and 401(k)s may not be exciting, but it's one of the most powerful ways to build long-term wealth. Thanks to compound interest and tax breaks, steady contributions can quietly outperform trend-chasing strategies over time. 'People often don't think about how powerful compound interest can be over time,' said Julian Merrick, founder and CEO of Supertrader. 'While everyone else is busy looking for the next big thing, those who regularly put money into retirement accounts are quietly making sure they'll have enough money in the future.' Merrick explained, 'These low-key strategies usually do better than trend-based investing because they don't depend on market hype or volatility. Wealth grows steadily over time, and the returns are more stable than those of more risky investments. Also, tax breaks make long-term growth much faster.' Discover Next: Invest in Real Assets Platforms now make it possible for individuals to invest in real-world assets, such as solar energy projects, without requiring a stock market. These investments generate steady, long-term revenue based on the demand for electricity, not speculation or hype. For example, while many investors focus on stocks, some are turning to income-generating infrastructure, such as solar energy, through regulated crowdfunding, said Tyler Hurlburt, director of investor relations at Energea, a renewable energy investment platform. 'They're grounded in real-world demand,' Hulburt said. 'Solar energy projects produce reliable revenue, independent of market volatility. While trends come and go, the need for electricity — and the contracts behind these projects — provides consistent cash flow that isn't based on speculation.' Use Tax Strategy To Boost Returns Reducing taxes can be just as powerful as earning high returns. When investors align their investment strategy with a smart tax approach through account types, timing, or structure, they can increase their after-tax gains and build wealth more efficiently. 'Having a solid tax strategy that aligns with your investment strategy is the most underrated investment advice, but one of the top priorities for ultra-high net worth investors,' said Kelly Ann Winget, CEO, founder, and fund manager at Alternative Wealth Partners. Winget explained, 'If you can reduce or eliminate taxes associated with your income or your investment returns, then you can add an additional 20-50% to your overall return.' Even conservative investments earning 6-8% often deliver closer to 4% after accounting for taxes and inflation. 'If you can reduce or eliminate your tax liability through the type of investing, entity structure, or timing, then that return stays closer to 6%,' Winget said. Go Beyond Traditional Retirement Accounts While consistently contributing to traditional retirement accounts is a solid foundation, some investors choose to take it a step further. Mikey Lucas, founder of American Energy Fund, said that strategies like self-directed IRAs and 1031 Exchanges enable individuals to invest in real assets and defer taxes, thereby boosting long-term growth without relying solely on Wall Street. 'A self-directed IRA gives you the power to take your retirement funds and put them into private energy projects; assets you actually control,' Lucas said. 'A 1031 Exchange lets you defer capital gains by rolling real estate profits into energy infrastructure.' Lucas added, 'These tools aren't just for the ultra-wealthy. They're for anyone who's serious about scaling their wealth without losing it to taxes and inflation. The IRS code is a playbook. If you learn the rules, you can win. If you ignore them, you get penalized.' Automate Investing With Index Funds Automated contributions to low-cost index funds are one of the most reliable ways to build long-term wealth. 'It is not flashy, but consistently contributing a portion of your paycheck every month (especially if your employer offers a match) is one of the most reliable ways to grow wealth over time,' said Diana Babaeva, a financial expert and founder of Babaeva added, 'It removes the emotion and guesswork from investing. Most people think they need to 'time the market,' but time in the market is what really makes the difference.' More From GOBankingRates The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on You Don't Need To Be a Tech Bro or Crypto Trader To Get Rich — 5 Non-Trendy Paths to Wealth
Yahoo
a day ago
- Business
- Yahoo
You Don't Need To Be a Tech Bro or Crypto Trader To Get Rich — 5 Non-Trendy Paths to Wealth
Building wealth doesn't have to mean launching a startup, day-trading crypto, or chasing the next tech unicorn. Read More: Try This: Some of the most effective strategies are the least flashy and the most overlooked. While they may not come with Twitter hype or venture capital buzz, these methods work quietly in the background to grow real, lasting wealth. If you're more into steady gains than sudden fame, here are five non-trendy ways to get rich without the drama. Contribute Consistently to Retirement Accounts Regularly investing in tax-advantaged accounts like IRAs and 401(k)s may not be exciting, but it's one of the most powerful ways to build long-term wealth. Thanks to compound interest and tax breaks, steady contributions can quietly outperform trend-chasing strategies over time. 'People often don't think about how powerful compound interest can be over time,' said Julian Merrick, founder and CEO of Supertrader. 'While everyone else is busy looking for the next big thing, those who regularly put money into retirement accounts are quietly making sure they'll have enough money in the future.' Merrick explained, 'These low-key strategies usually do better than trend-based investing because they don't depend on market hype or volatility. Wealth grows steadily over time, and the returns are more stable than those of more risky investments. Also, tax breaks make long-term growth much faster.' Discover Next: Invest in Real Assets Platforms now make it possible for individuals to invest in real-world assets, such as solar energy projects, without requiring a stock market. These investments generate steady, long-term revenue based on the demand for electricity, not speculation or hype. For example, while many investors focus on stocks, some are turning to income-generating infrastructure, such as solar energy, through regulated crowdfunding, said Tyler Hurlburt, director of investor relations at Energea, a renewable energy investment platform. 'They're grounded in real-world demand,' Hulburt said. 'Solar energy projects produce reliable revenue, independent of market volatility. While trends come and go, the need for electricity — and the contracts behind these projects — provides consistent cash flow that isn't based on speculation.' Use Tax Strategy To Boost Returns Reducing taxes can be just as powerful as earning high returns. When investors align their investment strategy with a smart tax approach through account types, timing, or structure, they can increase their after-tax gains and build wealth more efficiently. 'Having a solid tax strategy that aligns with your investment strategy is the most underrated investment advice, but one of the top priorities for ultra-high net worth investors,' said Kelly Ann Winget, CEO, founder, and fund manager at Alternative Wealth Partners. Winget explained, 'If you can reduce or eliminate taxes associated with your income or your investment returns, then you can add an additional 20-50% to your overall return.' Even conservative investments earning 6-8% often deliver closer to 4% after accounting for taxes and inflation. 'If you can reduce or eliminate your tax liability through the type of investing, entity structure, or timing, then that return stays closer to 6%,' Winget said. Go Beyond Traditional Retirement Accounts While consistently contributing to traditional retirement accounts is a solid foundation, some investors choose to take it a step further. Mikey Lucas, founder of American Energy Fund, said that strategies like self-directed IRAs and 1031 Exchanges enable individuals to invest in real assets and defer taxes, thereby boosting long-term growth without relying solely on Wall Street. 'A self-directed IRA gives you the power to take your retirement funds and put them into private energy projects; assets you actually control,' Lucas said. 'A 1031 Exchange lets you defer capital gains by rolling real estate profits into energy infrastructure.' Lucas added, 'These tools aren't just for the ultra-wealthy. They're for anyone who's serious about scaling their wealth without losing it to taxes and inflation. The IRS code is a playbook. If you learn the rules, you can win. If you ignore them, you get penalized.' Automate Investing With Index Funds Automated contributions to low-cost index funds are one of the most reliable ways to build long-term wealth. 'It is not flashy, but consistently contributing a portion of your paycheck every month (especially if your employer offers a match) is one of the most reliable ways to grow wealth over time,' said Diana Babaeva, a financial expert and founder of Babaeva added, 'It removes the emotion and guesswork from investing. Most people think they need to 'time the market,' but time in the market is what really makes the difference.' More From GOBankingRates 5 Cities You Need To Consider If You're Retiring in 2025 This article originally appeared on You Don't Need To Be a Tech Bro or Crypto Trader To Get Rich — 5 Non-Trendy Paths to Wealth Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Gen Z is saving for retirement better than millennials
Tani Imasogie didn't grow up hearing about registered retirement savings plans at the dinner table. But that didn't stop her from opening her own account by the time she was 21. With the help of YouTube videos and online articles, she learned about the importance of compound interest and sifted through the jargon of Canada's different registered accounts. Today, she works at a pharmaceutical company in Toronto and contributes 3 per cent of her salary to a defined-contribution pension plan, and, in turn, her employer contributes 7 per cent. She hopes to be able to contribute more as her salary increases. 'I don't want money to control me or make me stressed,' she said, now 28. 'I want to reach financial freedom one day.' Retire Rich: The financial struggles of Gen Z and millennials Ms. Imasogie is one of a growing group of Gen Z Canadians, those born between 1996 and 2012, who are motivated to get a head start on retirement saving. Despite facing one of the toughest job markets in decades and an increasingly unattainable path to homeownership, many are learning from the experiences of older generations using online resources to take their financial futures into their own hands. According to new data from TD Bank, 68 per cent of Gen Zers invest consistently each year, more than any other age group. They're also contributing more to their RRSPs than millennials were at the same age, according to data from Statistics Canada. In 2023, the median RRSP contribution for Canadians under 25 was $1,880, more than 20 per cent more than millennials contributed in 2009, even after adjusting for inflation. 'Gen Zs have grown up in an information-rich environment,' said Pat Giles, TD's vice-president of Saving & Investing Journey, the bank's approach to help Canadians start saving as early as they can. 'They're much more likely to use social media to shape their investing decisions.' Many Gen Z Canadians have taught themselves financial basics, with the help of resources in the form of TikToks, YouTube, Reddit or even AI. A June CFA Institute report found that 79 per cent of young Canadians trust online financial education, more than two-thirds use AI tools like ChatGPT for information and 62 per cent turn to influencers and social media. Ms. Imasogie estimates that a large majority of what she knows about money came from the internet. She then used that knowledge to open her RRSP through Questrade, a do-it-yourself investment platform. Low-cost investment platforms such as Questrade and Wealthsimple let users open and manage registered accounts from their phones, with minimal fees and no in-person meetings. Today, nearly one in five Canadians aged 18 to 40 use Wealthsimple, according to the company. While a tough labour market stalled salary growth for some young workers, the pandemic presented a unique opportunity to them. Many young people moved back into their parents' home, had government benefits rolling in and had no places to spend money, said Matthew Kempton, a portfolio manager at Verecan Capital Management. 'Younger people, especially, gained a lot of interest in investing through that time, as it was something to pass the time,' Mr. Kempton said. Some were able to start investing earlier than they'd planned. In 2019, the median RRSP contribution for Canadians under 25 was $1,430. A year later, it jumped to $1,720. Giancarlo Rosa, 25, was one of them. He opened a TFSA at 18 and an RRSP at 20, but it wasn't until the COVID lockdowns, when his expenses dropped, that his investing habits really took off. 'Time value of money was a huge thing,' said Mr. Rosa, who lives in Richmond Hill, Ont. 'It just made sense to get started early rather than playing catch-up later.' He now saves 25 per cent of his nearly six-figure income and contributes regularly to his RRSP, not just for retirement, but to eventually use the funds under the federal Home Buyers' Plan, which lets first-time home buyers borrow from their RRSP tax-free for a down payment. 'The sole reason for putting it in the RRSP is not for retirement, as dumb as I sound,' he said. 'It's to take advantage of the Home Buyers' Plan.' Airlines are using AI to set ticket prices. Here's how you can avoid price manipulation when booking flights That kind of strategy is becoming more common, financial experts say. New policies have made registered accounts more flexible, and appealing, for young people. The FHSA, introduced in 2023, allows Canadians to save up to $40,000 tax-free toward a home. In April, 2024, the Home Buyers' Plan withdrawal limit rose to $60,000 from $35,000. Still, some Gen Zers are able to save simply because they're not buying homes. For many, the decision to hold off on homeownership isn't a rejection of the dream, but a lesson learned, said Hans Friedrich, an adviser at Sun Life and managing partner at Evolv Financial. After watching older millennials stretch their budgets thin to buy property, many Gen Zers are choosing to invest their savings instead. 'A lot of people on the millennial side tried to push through that and were like, 'We're going to get this done no matter what,'' Mr. Friedrich said. 'Gen Z is the first generation to actually learn from what the millennials did.'
Globe and Mail
3 days ago
- Business
- Globe and Mail
Think you're good at investing? U.S. babies may soon have you beat
Good morning. And happy Christmas in July. Before thoughts of winter sneak in your subconscious, I'm here to distract you with a new investment program in the U.S. that helps build compound interest as early as humanly possible. Imagine being handed an investment account the day you're born, preloaded with $1,000, just sitting there, quietly growing in the background until you turn 18. That's about to become reality for American babies. Thanks to the reconciliation bill signed this month by U.S. President Donald Trump, every child born between 2025 and 2028 (and who is an American citizen) get $1,000 from the U.S. Treasury. That money goes straight into a low-cost index fund and stays put until they hit adulthood. At 18, it automatically becomes a traditional IRA, but cash can also be pulled out early to do things such as help pay for school, start a business or buy a first home. Plus, every account can take up to $5,000 in additional contributions each year, including up to $2,500 from a parent's employer contributions, tax-free. It's a bold idea and it made me wonder: What's the Canadian version of this? Turns out, there isn't really one. The closest thing is the Canada Learning Bond (CLB), which helps low-income families save for post-secondary education. It offers up to $2,000 through a child's RESP, $500 upfront, then $100 a year until they're 15. But, unlike the U.S. account, there's a catch: Household income typically has to be under about $70,000 to qualify but could be a higher or lower threshold depending on how many kids you have. Could Canada roll out a universal baby bond program such as the U.S. one? Not likely, at least any time soon, experts said. 'There would be large administrative costs to set something like this up,' said Jason Heath, managing director of Objective Financial Partners. But whether it's a U.S. baby bond, an RESP or a plain old investment account, the takeaway is the same: start early. Marc Henein, a senior wealth adviser at ScotiaMcLeod, told me that if you invest $1,000 with a 6-per-cent annual return for 18 years and leave it alone, it grows to about $2,854, without adding a single extra dollar. 'Starting early would probably be the best advice I could give anybody,' Mr. Henein said. So, if you're a parent in Canada, opening an RESP for your child is still your best move. The government matches 20 per cent of your contribution, up to $500 a year per child. Hard to beat. The more you earn, the more you need to save. That might seem backward, but for high-income Canadians, the usual retirement safety nets, such as CPP and OAS, don't come close to replacing lost income. That means bigger paycheques demand higher savings rates. Why it matters: Many people assume a flat savings rate will work, but income level, age and whether you have a pension all dramatically change the math. Someone earning $180,000 may need to save more than double what someone making $60,000 does, just to maintain the same retirement standard. Yes, but: Not everyone needs to panic. Lower-income Canadians may find government benefits cover most of their retirement needs, especially if they've never earned much above $40,000. This 73-year-old retiree is living off dividends and self-publishing books. The situation: Brian Borgford retired in 2014 at age 62, after 42 years in accounting, business consulting and teaching. He and his wife spent their final working years abroad in China, the United Arab Emirates and Qatar, before returning to Calgary to reconnect with family and enjoy retirement. These days, Mr. Borgford spends his time writing: He's self-published dozens of books, including memoirs, fiction and even one on his investment strategies. He also maintains an investment blog and keeps active, though health issues have slowed his and his wife's travel plans. The numbers: Mr. Borgford contributed to company pension plans, maximized his RRSPs and invested in non-registered accounts throughout his career. Early on, he invested through an adviser, but after retiring, he took control of his own portfolio, focusing on dividend-growth stocks. Today, he primarily lives off dividend income. His advice: 'My advice to others approaching retirement is to ensure you are ready and have a plan for your postwork life,' he said. He almost retired a year earlier but waited, and that was the right call. 'Once I retired, I never looked back.' His other tip: Don't overcommit. 'Remember, retirement is supposed to be fun!' 💔 A midlife divorce can derail more than your relationship … it can shatter retirement plans. With pensions, RRSPs and home equity suddenly on the table, splitting assets in your 40s or 50s often means working longer, saving harder, or retiring with less. For some, it's a financial reset. For others, especially women, it's a years-long climb back to stability. ☀️ Sunscreen skepticism is going viral, and doctors are worried. As false claims about SPF ingredients spread on TikTok, dermatologists are fighting back with facts. With melanoma rates rising in Canada, experts warn that ditching sunscreen for DIY alternatives isn't just misguided. It's dangerous. 🏠 A mortgage refinance was supposed to wipe out high-interest debt, but instead, the bank used the funds to repay an interest-free government loan. Raymond Chen's experience highlights how confusing mortgage rules, lack of consent and the absence of legal advice can leave homeowners deeper in debt and short on answers. 🎮 Millions of seniors are video gamers. Nearly a third of U.S. gamers are over 50, with many finding joy, connection and even income through video games. From livestreaming Call of Duty to tackling brain-training apps, older adults are proving that they shouldn't be discounted as NPCs. ✈️ Use the 'cheapest' tab on Google Flights to save money. Until recently, Google showed only the 'best' flight options, determined by both price and convenience. Take another look — there's now another tab for people who are willing to give up some convenience to save money.
Yahoo
6 days ago
- Business
- Yahoo
Preserve capital, don't swing 'for the fences,' portfolio manager says
STORY: "If you have investments that generate current income, you have the ability to take advantage of the most powerful force in the universe, and that's compound interest," Dean said. Until President Trump's trade policy is settled, "this is not a time to be buying dips [on stocks]," he added.
