Latest news with #income
Yahoo
11 hours ago
- Business
- Yahoo
The Average Net Worth of People With and Without a Doctorate
Doctorate degrees carry a lot of weight on a resume, but what do they actually do for your financial life? Are people with doctorates really that much better off when it comes to net worth? Here's how much net worth differs between those with a doctorate and those without. Discover Next: For You: According to data from the U.S. Career Institute, people with a doctoral degree earn around $4 million throughout their careers. That's a full million dollars more than what many people with a master's degree or bachelor's degree earn in their lifetime. And it's nearly double what someone with only a high school diploma or less can expect to make. Check Out: That difference in earning potential can make a pretty big difference over time, especially when it comes to savings and building net worth. It's important to note that income and net worth aren't the same. Income is how much you earn. Net worth is how much you actually keep after paying off everything you owe. Someone can make six figures and still have a low or even negative net worth if they're spending it all. That said, higher income makes it a lot easier to build wealth. The more you earn, the more room you have to save, invest, pay off debt and prepare for the future. For example, if someone with a doctorate earns around $4 million over a 30-year career, that averages out to about $133,000 per year. If they start saving just 10% of their income in their early 30s (roughly $13,000 a year) and invest it with a 6% average annual return, they could build a net worth of over $1.1 million by retirement if they don't have any debt. On the other hand, someone earning half that amount, around $66,000 a year, saving the same 10% would end up with about $550,000 over the same timeframe. With more income, doctoral holders can take advantage of opportunities others might not be able to. They're more likely to: Max out their retirement accounts Pay off student loans quicker Invest in real estate or the stock market Build an emergency fund faster But having a doctorate doesn't automatically mean someone is wealthy. It'll still come down to how they use their income and how they prepare for the long term. According to Brookings, less than 2% of U.S. adults have a doctoral degree. That rarity makes it more valuable in certain industries. Employers are often willing to pay more for someone with that level of education and expertise, especially in fields like academia, healthcare, law and research. Though people with a doctorate have a median income of 4 million, top earners of this group make slightly over 8 million in their lifetime. You may be able to earn a higher salary and achieve financial freedom faster with a doctoral degree. But remember that getting a doctorate will take lots of time, money and energy. Depending on where you live, the tuition can be expensive and depending on the field, it might take years before you see a solid financial return. If you're planning to work in a field where a doctorate is highly valued, it could absolutely be worth it. But you'll want to think beyond the salary you could potentially earn. Consider whether the degree aligns with your career goals, your interests and your long-term financial plans. In other words, if you're thinking about pursuing a doctorate, make sure you're doing it for the right reasons. The financial benefits can be huge, but only if you take advantage of them. More From GOBankingRates The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on The Average Net Worth of People With and Without a Doctorate Sign in to access your portfolio
Yahoo
16 hours ago
- Business
- Yahoo
3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio
Exchange-traded fund (ETF) inflows hit a record $1.9 trillion in 2024, pushing total ETF assets to $14.7 trillion. However, with 10-year U.S. Treasury yields hovering near 4.4%, income-hungry investors face a situation in which traditional ETFs struggle to compete. This has prompted a shift toward innovative strategies aimed at securing higher yields. Warren Buffett Famously Warned to 'Make Money While You Sleep' or 'You Will Work Until You Die': 5 Stocks To Invest Like Buffett 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Three notable funds are reshaping the income investing landscape by offering yields that far exceed conventional alternatives. Each one uses advanced covered call strategies on major indexes, turning volatile markets into reliable monthly income streams. The Global X Nasdaq 100 Covered Call ETF (QYLD) tracks the CBOE NASDAQ-100 BuyWrite V2 Index. With assets under management reaching $8.38 billion, QYLD's annual distribution rate sits at 14.13%, paying out distributions monthly. The fund maintains positions in all stocks in the Nasdaq 100 Index ($IUXX) and simultaneously sells call options on the index, effectively covering 100% of its portfolio. This strategy is aimed at collecting option premiums, which are distributed monthly. While this delivers a robust income stream, the tradeoff comes in the form of capped upside during sharp rallies. The fund's expense ratio is 0.6%, which is competitive given the complexity of its options strategy and the steady cash flow it aims to provide. The ETF is down 8.7% in the year to date and is down 6.7% over the past year. The NEOS S&P 500 High Income ETF (SPYI) is a product of NEOS Funds and began trading on Aug. 31, 2022. The ETF also pays out monthly distributions and has a 12-month distribution rate of 12.65%. This ETF is built on the back of the S&P 500 Index ($SPX), but it's not just a passive tracker. It holds the stocks in the benchmark index, and then in addition to selling call options on the index, its managers buy put options on the same index. This creates a 'collar' effect, aiming to retain more of the upside potential of its holdings if the market breaks out to the upside. SPYI manages $3.9 billion in assets. The fund's expense ratio is 0.68%, which is in line with its active approach and complex strategy. SPYI is down 2.4% in the year to date and 1.9% over the past 52 weeks. The ProShares S&P 500 High Income ETF (ISPY) brings a new twist to the high-yield ETF space. Tracking the S&P 500 Daily Covered Call Index, ISPY is the first ETF to implement a daily covered call overlay on the S&P 500. This means that rather than the typical monthly or weekly cadence, ISPY writes fresh out-of-the-money call options every single trading day, using swap agreements to access the full S&P 500 portfolio and maximize option premium capture. This high-frequency approach is designed to exploit the rapid time decay of daily options, allowing the fund to reset its strike price each day and adjust to changing market conditions. The result is a steady stream of elevated income, with the added benefit of some downside protection if markets turn choppy. However, this daily reset also means that returns are more closely tethered to short-term market swings, and the fund may lag in strong, sustained bull runs since upside is capped. Its 12-month distribution rate is 12.82%, and like QYLD and SPYI, it pays out distributions monthly. ISPY's assets under management stand at $740.3 million, and the fund charges an expense ratio of 0.55%, which is competitive for an actively managed, options-driven ETF. ISPY is down 7.9% in the year to date and 6.3% over the past 52 weeks. High-yield covered call ETFs like QYLD, SPYI, and ISPY offer a compelling way to boost monthly income, though they do sacrifice some growth potential for those generous payouts. Considering the current volatile investing environment, it's reasonable to expect these ETFs to stay relevant for income seekers in 2025. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Effettua l'accesso per consultare il tuo portafoglio
Yahoo
a day ago
- Business
- Yahoo
3 Asian Dividend Stocks Yielding Up To 5.8%
Amid escalating geopolitical tensions and trade-related concerns, Asian markets have experienced mixed performances, with investors closely monitoring developments between major economies. In this context, dividend stocks in Asia are garnering attention as they can offer potential income stability through regular payouts. Name Dividend Yield Dividend Rating Yamato Kogyo (TSE:5444) 4.61% ★★★★★★ Wuliangye YibinLtd (SZSE:000858) 5.36% ★★★★★★ Nissan Chemical (TSE:4021) 4.06% ★★★★★★ NCD (TSE:4783) 4.19% ★★★★★★ HUAYU Automotive Systems (SHSE:600741) 4.51% ★★★★★★ Guangxi LiuYao Group (SHSE:603368) 4.53% ★★★★★★ GakkyushaLtd (TSE:9769) 4.59% ★★★★★★ E J Holdings (TSE:2153) 5.39% ★★★★★★ Daicel (TSE:4202) 4.99% ★★★★★★ Asian Terminals (PSE:ATI) 6.44% ★★★★★★ Click here to see the full list of 1241 stocks from our Top Asian Dividend Stocks screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Zhejiang Expressway Co., Ltd. is an investment holding company that focuses on investing in, developing, maintaining, and operating roads in the People's Republic of China with a market cap of HK$42.92 billion. Operations: Zhejiang Expressway Co., Ltd.'s revenue primarily comes from its operations in road investment, development, maintenance, and management within the People's Republic of China. Dividend Yield: 5.9% Zhejiang Expressway recently approved a dividend increase to RMB 38.5 cents per share for 2024, with payment expected on June 24, 2025. The company's dividends have been stable and growing over the past decade, supported by a low payout ratio of 41.3% and cash flow coverage of 33.9%. Although its dividend yield is below the top tier in Hong Kong, earnings grew by CNY 85.6 million in Q1 2025 compared to last year, indicating strong financial health. Delve into the full analysis dividend report here for a deeper understanding of Zhejiang Expressway. The valuation report we've compiled suggests that Zhejiang Expressway's current price could be quite moderate. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Hong Leong Asia Ltd. is an investment holding company that manufactures and distributes powertrain solutions, building materials, and rigid packaging products in China, Singapore, Malaysia, and internationally with a market cap of SGD1.02 billion. Operations: Hong Leong Asia Ltd. generates its revenue primarily from Powertrain Solutions with SGD3.55 billion and Building Materials with SGD682.33 million. Dividend Yield: 4.4% Hong Leong Asia approved a final dividend of S$0.03 per share for 2024, paid on May 14, 2025. While its dividend yield of 4.38% is below Singapore's top tier, the payout ratio of 34.2% and cash payout ratio of 26.3% ensure coverage by earnings and cash flows. Despite a history of volatile dividends over the past decade, recent increases suggest potential growth in payouts as earnings are forecasted to grow annually by 13.83%. Get an in-depth perspective on Hong Leong Asia's performance by reading our dividend report here. According our valuation report, there's an indication that Hong Leong Asia's share price might be on the cheaper side. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: The Nisshin OilliO Group, Ltd. operates in the oil and fat, processed food and material, fine chemicals, and other sectors across Japan, Malaysia, China, Europe, the United States, and internationally with a market cap of ¥162.96 billion. Operations: The Nisshin OilliO Group, Ltd.'s revenue is primarily derived from its Oil and Fat Business - Oils and Meal segment at ¥301.51 billion, followed by the Processed Oil and Fat segment at ¥142.02 billion, Processed Food and Materials at ¥78.90 billion, and Fine Chemicals Business contributing ¥22.31 billion. Dividend Yield: 3.5% Nisshin OilliO Group's recent share repurchase plan aims to enhance shareholder returns amidst a challenging dividend landscape. The company's ¥90 per share dividend for 2025 represents a decrease from the previous year, with coverage concerns due to a high cash payout ratio of 101.2%. Despite stable and reliable dividends over the past decade, current yields are below Japan's top tier. The firm's earnings growth forecast and strategic buyback could support future dividend sustainability. Take a closer look at Nisshin OilliO GroupLtd's potential here in our dividend report. Our valuation report here indicates Nisshin OilliO GroupLtd may be overvalued. Get an in-depth perspective on all 1241 Top Asian Dividend Stocks by using our screener here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SEHK:576 SGX:H22 and TSE:2602. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
CBS News
2 days ago
- Business
- CBS News
How much would a $500,000 annuity pay monthly if bought at age 65?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Putting $500,000 into an annuity could result in big payouts during retirement, but there are a few factors that may also play a role. Getty Images If you're nearing retirement right now, you're likely weighing options for turning your savings into reliable retirement income. The market has, after all, been anything but predictable recently, so your investment portfolio's value has been fluctuating. And, despite inflation cooling from recent highs, the higher cost of living we're facing today is still straining many retirees' budgets. When you add in concerns over Social Security's long-term solvency, it's no surprise that people are turning to products like annuities for peace of mind. An annuity can be a smart tool to consider for retirement because it provides guaranteed income for life, which is a big reason why more people are now adding them to their retirement plans, especially retirees who want more stability amid market swings. But figuring out exactly how much income an annuity will generate isn't always a simple process. The answer depends on several factors, from your age and gender to the type of annuity you buy and what interest rates are at the time. What is clear is that if you're planning to buy an annuity this year, you'll likely benefit from the current higher-rate environment. So, how much can you expect in monthly income from a $500,000 annuity if you buy it at age 65? Learn how to add an annuity to your retirement plan now. How much will a $500,000 annuity pay monthly if bought at age 65? Let's start with the numbers. If you're 65 and buy a $500,000 immediate fixed annuity today, your monthly income will vary depending on your gender and whether the annuity covers one or two people. According to recent estimates from Cannex data analyzed by here's what those monthly payments could look like: Male, age 65 : Around $3,269 per month for life : Around $3,269 per month for life Female, age 65 : Around $3,151 per month for life : Around $3,151 per month for life Joint life, age 65: Around $2,863 per month (payments continue as long as either person is alive) These numbers reflect a lifetime payout starting immediately. So, if you were to hand over $500,000 to an insurance company today to open an immediate fixed annuity, you would receive that monthly income for the rest of your life, no matter how long you live. The reason payouts differ between men and women comes down to life expectancy. Women tend to live longer, which means insurance companies expect to make payments for more years. To account for that, the monthly annuity payouts for women tend to be slightly lower than for men. Meanwhile, joint life annuities, which cover two people, typically a married couple, offer even smaller payouts, since payments are expected to last even longer. But gender and payout structure aren't the only factors at play. Here are a few others that influence your monthly annuity income: The interest rate environment One of the biggest drivers of annuity payouts is interest rates. That's because insurance companies invest your premium in fixed-income assets, and the yield they earn helps fund your future payments. When rates are higher, annuity payouts tend to be more generous. On the flip side, lower interest rates generally mean smaller monthly checks. In today's rate climate, buyers are still seeing relatively strong payouts compared to what they would've locked in just a few years ago. But as the Federal Reserve looks toward possible rate cuts later this year, the window to lock in higher monthly annuity income may begin to shrink. Find out how an annuity could help you prepare for retirement today. The type of annuity Not all annuities are created equal. The numbers above reflect a single premium immediate annuity (SPIA), which begins paying out right after purchase and offers a simple structure: You pay once and the insurer sends you monthly checks for life. But there are other options. For example, deferred annuities start payments at a later date, which can result in higher income since your money has more time to grow. Variable and indexed annuities are tied to market performance, offering growth potential but less predictability. Lifetime annuities with a period certain (which provide guaranteed payments for a minimum number of years even if you die early) also come with tradeoffs, usually in the form of lower monthly payments in exchange for that added guarantee. Payout features and inflation protection Many retirees opt for added features like cost-of-living adjustments (COLAs) or refund guarantees, which help protect against inflation or ensure that your beneficiaries receive remaining funds. However, these features typically reduce your starting monthly payment. So while you might receive less per month initially, the long-term benefit could outweigh the upfront reduction, especially if you live a long life or want to leave something for beneficiaries. Should you buy an annuity now or wait? If you're eyeing an annuity but aren't quite ready to act, timing could be a big consideration. While rates are still relatively high, any forthcoming Federal Reserve rate cuts could reduce future annuity payouts. So, it could make sense to make your move now and lock in a good rate. On the other hand, if you're still a few years from retirement and can wait, a deferred annuity could boost your income later, though that comes with the risk of shifting market conditions. One option that's nearly always worth exploring, though, is shopping around for quotes. Annuity pricing can vary widely between insurance companies, and working with a broker or using online marketplaces can help you compare your options side-by-side. You might also consider splitting your savings into multiple annuities or combining an annuity with other retirement income sources, like Social Security or a 401(k), to build a more flexible income plan. The bottom line A $500,000 annuity purchased at age 65 could generate between about $2,900 to $3,300 per month for life, depending on your gender and the payout structure. That kind of consistent income can offer peace of mind, especially in uncertain economic times. Still, annuities aren't for everyone. Whether a $500,000 annuity makes sense for you depends on factors like your retirement goals, health, risk tolerance and income needs. Before buying, though, it's a good idea to compare multiple quotes. And if you're planning to buy soon, don't wait too long, as the current rate environment may not last much longer.
The Guardian
2 days ago
- Business
- The Guardian
What could Albanese do to improve productivity? Here is a short, non-exhaustive list
In his address last week at the National Press Club, the prime minister announced a 'productivity roundtable' in concert with the Productivity Commission's latest inquiry into the issue. I won't be at the round table, but I do have a few ideas. First off, remember that productivity is the amount you produce with the hours and equipment you have. Work better with what you have or (usually) get better equipment to do your work faster, and productivity increases. It is not about reducing the cost of producing things. Getting paid $10 less an hour to do the same amount of work does not increase productivity even if your employer is more profitable. Unfortunately, productivity is often confused with profit and so business groups argue the key is lower company tax. They claim this will increase investment in things that increase productivity (such as new equipment or new buildings and structures). The evidence, though, is pretty nonexistent. The massive 2017 Trump company tax cuts, for example, which cut the federal US company tax rate from as high as 35% to a flat rate of 21% did bugger all to spur investment: If the graph does not display click here Hopefully the Productivity Commission will heed the advice of the current productivity commissioner, Danielle Wood, who in 2018, wrote that cutting the company tax rate would 'see national incomes go backwards for six years'. And income is really what productivity is about – specifically workers' income and their living standards. In theory, the real value of how much you earn an hour should rise in line with productivity. In the 1990s this mostly happened, but from 2000 onwards workers have missed out: If the graph does not display click here So, when worrying about productivity, we must remember to ask who benefits. But what could the government do to improve productivity? Here is a short, non-exhaustive list. This year, the government will pay about $10bn in diesel fuel rebates to mining and transport companies and the agriculture sector. By 2028-29 it will be $13bn. Despite growing almost as fast as the NDIS, we never hear the government talk about needing to rein in the expense: If the graph does not display click here But the fuel tax credit not only encourages use of fossil fuels, it creates a disincentive to investment in more efficient, and productive new vehicles – such as electric trucks. Research and development is vital to produce new equipment and technology (such as electric trucks). But the Australian government spends much less on R&D than most other OECD governments: If the graph does not display click here The government in April extended the $20,000 instant asset write-off for small business. This was purely a political rather than economic decision. Rather than encourage investment in productivity enhancing equipment, it is mostly a tax rort to buy big utes. How do we know this? Well, last week the AFR's wealth reporter, in a column about avoiding paying tax, described the instant asset write-off as 'a favourite perk of small businesses and sole traders'. They ain't lying. What else is a bad productivity investment? Residential land. It adds bugger all. But Australians devote far too much capital to property – almost 2.5 times that of the US: If the graph does not display click here Our tax system encourages this with the 50% capital gains tax discount and negative gearing, while also reducing housing affordability. The Parliamentary Budget Office estimated that removing the tax discount and negative gearing on investment properties would raise about $13.35bn in 2025-26. Dental health hurts the economy and reduces productivity because workers avoid going to the dentist because of the cost and end up with chronic issues that reduce output. A public system would be much more productive because it would massively reduce the cost hurdle for workers. The PBO estimated that putting dental into Medicare would cost $13.7bn. Rather conveniently for us, that is essentially the same as removing the CGT discount and negative gearing. By the same token, we know health systems that are dependent on private health insurance, such as in the US, are unproductive because the resources devoted to them deliver worse outcomes than public health: If the graph does not display click here Australia's health system is generally well regarded, but a recent report noted that we faired quite poorly when it came to access to care. Private health insurance is not a productive industry – consider the hours and expense devoted to marketing that yields no extra benefit. The same goes for private schools and the fees people pay fees. A 2022 study found that private education does not improve a student's academic performance. More resources devoted to no better outcomes is the essence of poor productivity. Currently both are exempt from GST, which effectively incentivises people to spend money on them (as does allowing donations to build structures in private schools to be tax deductible). Including both within the GST would deliver revenue that could go to improving productive public schools and hospitals, while repairing the shrinking tax base of the GST. Best of all, because richer households spend more of their income on both private school and private health insurance, the tax would actually be progressive. If the graph does not display click here Controversial? Of course. Which is why a government would also want to announce something huge – like say dental in Medicare. Productivity is an ongoing issue, but the key is to always think about who benefits from changes, and that the solutions are not about increasing profits or offshoring labour or reducing workers' pay, but should always be about making people's lives better. Greg Jericho is a Guardian columnist and policy director at the Centre for Future Work
