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Yahoo
2 hours ago
- Business
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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
3 hours ago
- Business
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With EPS Growth And More, OUTsurance Group (JSE:OUT) Makes An Interesting Case
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. In contrast to all that, many investors prefer to focus on companies like OUTsurance Group (JSE:OUT), which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Recognition must be given to the that OUTsurance Group has grown EPS by 57% per year, over the last three years. While that sort of growth rate isn't sustainable for long, it certainly catches the eye of prospective investors. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The music to the ears of OUTsurance Group shareholders is that EBIT margins have grown from 18% to 20% in the last 12 months and revenues are on an upwards trend as well. Ticking those two boxes is a good sign of growth, in our book. In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. Check out our latest analysis for OUTsurance Group Fortunately, we've got access to analyst forecasts of OUTsurance Group's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting. It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions. The real kicker here is that OUTsurance Group insiders spent a staggering R51m on acquiring shares in just one year, without single share being sold in the meantime. The shareholders within the general public should find themselves expectant and certainly hopeful, that this large outlay signals prescient optimism for the business. Zooming in, we can see that the biggest insider purchase was by CFO & Executive Director Jan Hofmeyr for R20m worth of shares, at about R42.27 per share. OUTsurance Group's earnings per share have been soaring, with growth rates sky high. Growth investors should find it difficult to look past that strong EPS move. And indeed, it could be a sign that the business is at an inflection point. If this is the case, then keeping a watch over OUTsurance Group could be in your best interest. Of course, just because OUTsurance Group is growing does not mean it is undervalued. If you're wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Keen growth investors love to see insider activity. Thankfully, OUTsurance Group isn't the only one. You can see a a curated list of South African companies which have exhibited consistent growth accompanied by high insider ownership. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. 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
Yahoo
3 hours ago
- Business
- Yahoo
Does Multi-Chem (SGX:AWZ) Deserve A Spot On Your Watchlist?
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Multi-Chem (SGX:AWZ). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. We can see that in the last three years Multi-Chem grew its EPS by 7.3% per year. This may not be setting the world alight, but it does show that EPS is on the upwards trend. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. EBIT margins for Multi-Chem remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 3.8% to S$684m. That's progress. In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image. Check out our latest analysis for Multi-Chem Since Multi-Chem is no giant, with a market capitalisation of S$279m, you should definitely check its cash and debt before getting too excited about its prospects. Seeing insiders owning a large portion of the shares on issue is often a good sign. Their incentives will be aligned with the investors and there's less of a probability in a sudden sell-off that would impact the share price. So those who are interested in Multi-Chem will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares. In fact, they own 82% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. This should be seen as a good thing, as it means insiders have a personal interest in delivering the best outcomes for shareholders. With that sort of holding, insiders have about S$230m riding on the stock, at current prices. That's nothing to sneeze at! One positive for Multi-Chem is that it is growing EPS. That's nice to see. To add an extra spark to the fire, significant insider ownership in the company is another highlight. The combination definitely favoured by investors so consider keeping the company on a watchlist. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Multi-Chem that you should be aware of. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Singaporean companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. 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
Yahoo
5 hours ago
- Business
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Why Lyft (LYFT) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike. Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term. Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks. Lyft, based in San Francisco, CA, was founded in 2012. The company, however, made its trading debut on the Nasdaq in March 2019. Its IPO price was $72 a share. Lyft completed its IPO on Apr 2, 2019. During the process, the company sold 32,500,000 shares of Class A common stock. On Apr 9, 2019, Lyft sold 2,996,845 more shares of Class A common stock at $72 per share. LYFT sits at a Zacks Rank #2 (Buy), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Internet - Services industry's P/E of 18.3X, shares of Lyft are trading at a forward P/E of 13.3X. LYFT also has a PEG Ratio of 0.6, a Price/Cash Flow ratio of 56.2X, and a Price/Sales ratio of 1X. A company's earnings performance is important for value investors as well. For fiscal 2025, seven analysts revised their earnings estimate higher in the last 60 days for LYFT, while the Zacks Consensus Estimate has increased $0.10 to $1.11 per share. LYFT also holds an average earnings surprise of 24.2%. Investors should take the time to consider LYFT for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lyft, Inc. (LYFT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
5 hours ago
- Business
- Yahoo
How to Make Your $7,000 TFSA Contribution Work Harder This Year
Written by Chris MacDonald at The Motley Fool Canada The Tax-Free Savings Account (TFSA) investing vehicle is one of the best, and perhaps most under-utilized, tools available to Canadian investors. This account allows Canadian investors to put $7,000 in after-tax dollars to work in an investing account, with the corresponding growth and dividend income provided by the investments in this account eligible to be pulled out tax-free at any point in time. For those planning for retirement, having access to a tax-free chunk of capital when it comes time to retire is a big deal. That goes double for those who plan to work into retirement, and/or those who expect to have a higher tax burden down the line. With the way fiscal spending is trending everywhere, that's a bet many may be willing to make. Here are three tips investors looking to maximize the performance of their TFSAs may want to think about right now. Generally speaking, most financial planners would advise investors to first consider which types of investments they're thinking about including in their TFSA. A very high-growth stock such as Shopify (TSX:SHOP) or Constellation Software (TSX:CSU) that has seen rapid price appreciation in recent years would be disproportionately rewarded by being held in such a fund. That's simply due to the fact that such stocks have continued to compound over time, and that capital appreciation investors would have seen from investing in such stocks early on would have resulted in most of the value of their current holdings being in price appreciation. In a TFSA, this price appreciation is tax-free. That said, putting all of one's TFSA funds in one or two particular stocks is a strategy most financial experts would also be up in arms about. A TFSA does disproportionately benefit investors who want to pick growth stocks that perform well. The key is that such holdings need to perform, and there are no guarantees on this front. Thus, holding a broader basket of diverse growth stocks may be the optimal choice for most passive long-term investors. Whether it's a growth-focused ETF or mutual fund, supplementing single-stock picks is a strategy I'm personally in favour of, and it is a strategy I think most investors should consider. One of the problems with a TFSA (which is similar to a Roth 401(k) in the U.S.) is the relative ease at which investors can pull their capital out of a TFSA when needed. While liquidity is great (and that's a feature of this investment vehicle), in terms of saving for retirement, excessive withdrawals over time from a TFSA can really degrade the long-term value that can come from holding high-quality growth stocks in this account. As such, I think the prudent advice for most investors is to put whatever possible into a TFSA (preferably to the maximum allowed), and let these funds sit there for as long as possible. That's the advice most financial experts would provide, and it's easier said than done. But for those who are patient and willing to let their winners ride, this is the account that makes the most sense to do so. The post How to Make Your $7,000 TFSA Contribution Work Harder This Year appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy. 2025
