William at A Financial Revolution has some words of advice on penny stocks.
The beauty of penny stocks is that they are one of the only investments for which one simple, blanket rule applies without any exceptions: There is never a good reason to buy a penny stock, ever.
Why not?
Penny Stocks Cost Very Little For a Reason.
The efficient market hypothesis states that the stock price generally reflects all available knowledge about that security. In other words, a $2.00 stock is worth $2.00 to most people — no more, no less.
If there were solid data or a concrete reason for the stock to be valued at a higher price, it would already be at that price. It is incorrect to think that you are getting a bargain when you purchase a penny stock. If you purchase a penny stock, you are gambling — you are not investing.
Penny Stocks Are Not Cheap.
When investing, it is important to know how to value a stock. This concept is the topic of hundreds and hundreds of investment books. It is entirely possible that a stock trading for $72 is cheaper than a stock selling for $8. The price of a stock does not determine whether or not a stock is expensive. There are many other metrics for that.
My favorite (and easiest to understand) metric is the Price Earnings (P/E) ratio. The P/E ratio, roughly speaking, is a ratio which relates the price of the stock to the earnings that one can expect to receive from the share of the stock. This ratio lets you compute how expensive a stock is. The higher the P/E ratio, the more “expensive” a stock is. There are many documented problems with a P/E ratio, but I find that for basic analysis it is a good way to compare the relative value of very similar companies.
When you compare the P/E ratio of penny stocks to solid stocks, you will notice that the P/E ratios for most penny stocks are much higher. This is because penny stocks often have very few earnings, and their value (what little value there is) is derived from expectations of future earning (beyond the scope of the P/E ratio). Because the company has a very low (or negative) P/E ratio, you know that the company isn’t making much money yet.
Making a Profit is Not Easy.
Over 95% of businesses fail before the completion of their first year of operations. Investing in a new company with no proven track record is very, very risky. Roughly speaking, if you expect a total loss of your investment 95% of the time, a two-fold increase in your investment 4% of the time, and a ten-fold increase in your investment 1% of the time, the expected value of your $1000 gamble is -$820 ($180 left).
Even this scenario is wildly optimistic since the chances of the stock being so successful (10x growth) is much less than 1%. With penny stocks, you’re risking failure a most of the time. Sure, you might get a huge return if the company goes big. But I contend that you can get similar returns over time by investing in well-picked, small-mid sized companies with a proven track record of earnings!
Penny Stock Prices Are Easily Manipulated.
Since penny stocks have such low market capitalization (low share price and/or very few outstanding shares), people can easily manipulate their stock price by putting in large buy or sell orders.
A common tactic used by many scam artists is a “pump and dump”. The scamsters buy many shares of the stock at a low price and then pump up the stock. They spam investors (via fax or via e-mail), claiming that they have a “hot new stock.” The stock is artificially hyped by the scamsters who own shares. Even if a only a few people believe the hype, they will purchase enough stock to push up the stock price. As soon as there is a large purchase, the scamsters will sell all their shares, which will send the stock price plummeting. This leaves the scamsters with the profit and the scam-ees with depreciated shares of a useless company.
If You’re Going to Gamble, Get Better Odds.
Honestly, if you are looking for a quick way to double your money, my suggestion is to take all the money you’d put into penny stocks, head to the nearest casino, and play a hand of Blackjack with favorable rules. The expected value of your $1000 gamble is close to -$10 as opposed to -$820!
Final Verdict: F-
Thanks, William! For more of his advice, check out A Financial Revolution, which is a personal finance blog “geared toward the younger generation”.
The Zillow app on a smartphone arranged in Germantown, New York, US, on Tuesday, July 25, 2023. Zillow Group Inc. is scheduled to release earnings figures on August 2.
Gabby Jones/Bloomberg
Zillow Group Inc. shares slid after the company’s revenue forecast missed estimates, with an anemic U.S. housing market weighing on expected results.
The company, whose core business is helping real estate agents connect with homebuyers, said it’s projecting third-quarter revenue of $458 million to $486 million. That compares with an average analyst estimate of $488 million in data compiled by Bloomberg.
The shares fell as much as 7.6% in late trading. They were down 2.1% to $51.91 at 4:46 p.m. New York time.
The disappointing forecast came on a day in which the company reported second-quarter earnings that beat analyst estimates.
Zillow’s “residential” business segment generated $380 million in revenue in the quarter, down just 3% from the same period of 2022, when the housing market was still blazing. That compares with a 22% decline in industry transaction volumes, according to the statement.
The company’s websites and apps remained popular despite slower home sales, attracting 226 million unique users on the average month in the second quarter. Zillow said investments to its sales funnel have helped it do a better job connecting homebuyers to real estate agents.
“Zillow outperformed the broader industry for the fourth consecutive quarter as we navigate a tough real estate market,” Chief Executive Officer Rich Barton said in the statement. “I’m pleased with our steady progress on improving and integrating our customer and partner experiences, especially in touring, financing and renting.”
Black Knight reported slimmer profits and slowing organic growth in the second quarter, largely due to weaker mortgage volume from clients as well as near-term effects from the proposed merger deal with Intercontinental Exchange (ICE).
The company’s profit dropped 61% quarter over quarter to $55.3 million in Q2 2023. Profit rose 32% from $40.3 million in Q1 2023.
“Our second quarter results reflect a weaker than expected mortgage market coupled with the near-term effects of the proposed merger with ICE. Revenue declined 4% on an organic basis driven by lower origination volumes as well as indirect effects of the mortgage market on our originations software business,” Black Knight CEO Joe Nackashi said in a statement.
Black Knight’s revenue in the second quarter reached $368.2 million, declining 7% from the same period in 2022.
“High interest rates following the rapid rise since early 2022 continue to cause operational challenges for Black Knight’s clients and prospects,” the company noted in its 8K filing.
Heightened focus on expenses by clients and prospects, as well as the proposed ICE transaction, has elongated the sales cycles in the short term; market conditions continue to result in elevated originator consolidation, bankruptcies and associated attrition, according to its filing with the Securities and Exchange Commission (SEC).
Software solutions represented 87.9% of the revenues in the first quarter, with an operating margin of 41.4%, down from 45.6% in the same period of 2022.
“Our origination software solutions revenues decreased $15.6 million, or 13%, as revenues from new clients were more than offset by a decrease of $8.3 million in license fees and the effect of lower origination volumes and attrition,” according to the company’s 10 Q filing with the SEC.
The remaining revenue came from data and analytics, a segment with an operating margin of 15.2% from April to June, compared to 24.9% in the previous year.
Development on ICE-Black Knight merger
With ICE’s proposed acquisition of Black Knight under review by the Federal Trade Commission (FTC), the two companies and the FTC are expecting a preliminary injunction hearing scheduled for August 14 – August 18.
Black Knight, ICE and the FTC asked for a delay as the planned sale of Optimal Blue in July requires time for the FTC staff to analyze the implications of the divestiture and discuss a potential resolution of the pending matter.
ICE and Black Knight also announced an agreement to sell loan origination system Empower to a subsidiary of Canada’s Constellation Software in March to quell FTC’s antitrust concerns.
Following ICE and Black Knight’s announcement of an agreement to sell Optimal Blue, Keefe, Bruyette & Woods (KBW) noted that the divestiture of Black Knight’s Optimal Blue leaves the FTC with a weak case as it remedies the remaining horizontal overlap cited in the FTC’s complaint.
KBW had floated the possibility of the FTC settling on the ICE-BK merger deal before the August 14 trial, allowing the deal to close Q3 2023.
“As this case continues to evolve, it is not possible to reasonably estimate the probability that the parties will ultimately reach settlement or that the FTC will ultimately prevail on its claims. Should the parties not reach a settlement, we intend to vigorously defend against the claims of the FTC,” Black Knight’s 10 Q filing said.
Due to the transaction with ICE, Black Knight has suspended the practice of providing forward-looking guidance.
Greg McDaniel earns $3,472 per hour cold calling real estate leads, and you can too! On today’s Real Estate Rockstars, Greg shares his cold-calling systems and scripts. Listen and learn how to instantly triple your productivity when prospecting. You’ll also get a pending-property script that any agent can use. Plus, Greg explains why real estate agents should celebrate their losses, how a strong social media presence wins listings, and what you can do right now to increase your conversion rate.
Get 10+ hours of mastermind-level content 100% FREE. Register at Carrot.com/Rockstar today!
Listen to today’s show and learn:
Greg McDaniel’s real estate career [4:24]
How social media can win you real estate listings [6:31]
The shift with cold calling [7:25]
A pending-property script that any agent can use [8:34]
How to triple your productivity with cold calling [13:49]
Ways to get your reps in with cold calling [17:08]
How to do video texts and emails [22:42]
A way to come up with real estate content [24:39]
Automated follow-up systems and advice on real estate CRMs [27:34]
Greg McDaniel’s cold-calling stats [30:29]
What getting one percent better can do for your annual earnings [34:01]
Why you should celebrate your losses [38:26]
What’s next for Greg McDaniel [43:31]
Where to find and follow Greg McDaniel [43:46]
Greg McDaniel
Greg McDaniel literally began his career in real estate at his father’s knee & it would not be an exaggeration to say that real estate is in his blood. Greg learned the real estate industry from his dad, Terry McDaniel, a 42 year real estate veteran – acting as his chauffeur and watching him negotiate real estate transactions.
As a partner in McDaniel/Callahan Real Estate, Greg works with a team of professionals dedicated to educating buyers & sellers about every aspect of the real estate process & providing the highest degree of service with the goal of providing every client with a seamless transaction that get RESULTS.
Related Links and Resources:
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After high-profile acquisitions and purchases over the past month, Rithm Capital emphasized its pivot toward business diversification but offered few details regarding a potential spinoff of its mortgage operations in an earnings call Wednesday.
“While we are a mortgage REIT I like to think of us as an asset manager operating as a REIT,” said Michael Nierenberg, CEO and president of the New York-based real estate investment trust, in its second-quarter earnings call.
The company’s recent focus on new additions to the business is helping to fuel speculation about whether a separation of its home lending businesses into a new entity might be in the offing. Nierenberg’s plans to grow Rithm as an alternative asset manager was underscored in July with a deal that brought Sculptor Capital Management as a fully owned subsidiary.
In its previous earnings call, Nierenberg said Rithm had filed a confidential S-1 registration form, typically used by companies before an intended public listing, with the Securities and Exchange Commission. But Nierenberg gave no further clues on if, or when, a change might occur on Wednesday.
In 2020, the company, which was previously known as New Residential Investment Corp., filed the same form as it considered a public offering of its Newrez home lending business. Plans ended following New Residential’s acquisition of Caliber Home Loans.
While saying that no mortgage lending company is trading at a significant premium currently, Nierenberg added that “the timing is right,” based on the work done at Rithm to develop Newrez and Caliber “to bring this company out.” Earlier this year, Nierenberg had also suggested that the mortgage business’ headwinds were weighing down on its overall trading value.
“I don’t necessarily think that we’re going to turn around and just sell down the entire thing. I think it’s more to give us flexibility,” he said on Wednesday’s call.
In a post-earnings note, research analysts Eric Hagen and Jake Katsikas of BTIG noted that the timing of a spinoff “looks more optimal considering the run we’ve seen in other originator/servicers over the last three months.”
While Rithm Capital focused on diversification outside of home lending and a possible company split, its mortgage origination and servicing operations still accounted for the majority of profits in the second quarter, particularly through loan servicing.
The REIT posted company-wide net income of $357.4 million, equaling 74 cents per share, in the second quarter. The number represented a 418% increase from the $68.9 million bottom line number in the first quarter. One year ago, Rithm lost $3.3 million over the same three-month period.
The servicing unit generated $285.8 million in net income offsetting an $8.9 million loss in originations, as the mortgage industry continued to face depressed volumes and interest rate challenges. But numbers improved from the first quarter’s $192.1 million servicing gain and $24.4 originations loss. Between April and June of 2022, servicing income came in at $427.2 million, while the loss in originations settled at $21.1 million.
Meanwhile, Rithm’s mortgage-servicing rights related investments garnered it $52.5 million in profit in the most recent quarter, compared to a $29.7 million loss three months earlier. In the second quarter last year, net income from the MSR investments unit totaled $32.1 million.
Nierenberg noted the performance of Rithm’s MSR portfolios during the past quarter in helping the company grow its book value. A new mortgage spinoff would likely include a majority of that portfolio, in addition to originations and most of the servicing units, Nierenberg said.
“Some MSRs may stay back,” he said. “It’s one of these TBD things as we continue to work through it.”
Overall revenue across all segments of the company grew 27.6% to just over $1 billion from $783.4 quarter to quarter. But on an annual basis, revenue was off 21.5% from $1.3 billion.
Within its mortgage operations, funded originations grew 41% to $9.9 billion from $7 billion between first and second quarters. Rithm’s correspondent lending channel accounted for close to 63% of the volume following recent disruption within the segment.
“We think it’s likely benefited around the margins from Wells Fargo’s exit from the correspondent channel this year,” wrote BTIG’s researchers.
Gain-on-sale margins, though, shrank to 125 basis points compared to 161 bp in the first quarter and were down from 195 bp a year ago.
Unpaid balance in the mortgage company’s servicing portfolio inched up to $506 billion from $504 billion in the prior quarter.
While discussion revolves around Rithm’s near-term business moves, Nierenberg made efforts to emphasize that mortgage would still have a large presence in the company’s strategy.
“We’re still going to have a mortgage REIT. If you look at some of the some of the best run and larger alternative asset managers, they have REITs,” he said. “I think you should think of us in the same light.”
“This period of time, from an investment perspective, is some of the best environments we have seen in years. The time is now. While we are a mortgage REIT, I like to think of us as an asset manager operating as a REIT.”
Nierenberg spoke to analysts after Rithm announced Wednesday that it delivered a $357.4 million GAAP net income in the second quarter of 2023 — higher than the $68.9 million the prior quarter. Earnings available for distribution reached $297.9 million in the second quarter, compared to $171 million in the previous quarter.
In June, Rithm invested $145 million to purchase $1.4 billion of consumer loans from Goldman Sachs and purchased 371 newly built single-family rental properties from Lennar. In July, the company acquired 200 newly-built townhomes from Dream Finders Homes and announced the acquisition of Sculptor Capital Management for $639 million.
Rithm had 1.8 billion of total cash and liquidity to support its acquisitions at the end of the second quarter.
“Subsequent to quarter end, we announced the acquisition of Sculptor Capital Management. This acquisition helps accelerate our growth in the alternative asset management space, as Sculptor’s $34 billion of AUM complements Rithm’s $7bn of permanent equity capital and $30+ billion balance sheet,” Nierenberg said. “With the introduction of new capital rules being instituted on banks and the highest level of rates seen in 20+ years, the investing environment has not been this good in years.”
Bank regulators last week released a proposal to increase capital requirements for banks under the Basel III regulation.
Rithm executives, who said the market is at a transition point in tightening from monetary to regulatory, estimate that regulations open up over $1.5 trillion to $2 trillion in funding needs with $170 billion in additional capital requirements. Assets impacted include mortgages, funding to corporates, market-making and trading intermediations and fee-based businesses.
Mortgage business
Rithm’s mortgage business delivered a combined pre-tax income of $326.9 million in the second quarter of 2023, compared to $164 million in the previous quarter.
Originations returned to profitability, with $8.7 million in pre-tax income from April to June. Volumes increased to $9.9 billion in the second quarter, higher than the $7 billion in the previous quarter. However, gain-on-sale margins decreased to 1.25% in Q2 2023, from 1.61% in Q1 2023, due to “channel mix and overall market conditions,” the company said.
“We don’t need to originate a unit to do volume. We want to originate units that are core to our business, where we are doing something that is going to make money for LPs and shareholders. So, whether we do an extra billion dollars in origination in a channel, or a billion dollars less in a channel, we care about one thing, obviously servicing our customers and then driving profitability for our shareholders and LPs,” Nierenberg said.
Rithm’s mortgage production is expected to be between $8 billion and $10 billion in Q3 2023.
The company recently filed a confidential S-1 to spin off its mortgage business. Nierenberg said the separated business may include all the origination operations and most servicing assets, but some MSRs may stay back. He said Rithm does not plan “to turn around and just sell down the entire thing” but wants flexibility with a listed company.
“With where mortgage companies are trading, I don’t know that anybody trades at a significant premium at this point. And quite frankly, we just think the timing is right now with the scale and what the team has done around with the New Rez brand and obviously the Caliber acquisition.”
Servicing contributed $357.3 million in profits during the second quarter. The company’s mortgage servicing rights portfolio (MSRs) totaled $598 billion in unpaid principal balance (UPB) as of June 30, 2023, down from $603 billion as of March 31, 2023.
According to Nierenberg, Rithm continues to move mortgage servicing rights from some of its subservicers back in-house. However, the executive anticipates “there’s limited upside for us” regarding MSR values, so while Rithm monitors where rates are, the company will start putting “more hedges on against that asset as we go forward.”
After the earnings release, analysts at BTIG said they “Continue to see value in the equity, which could offer the optionality to participate in a spin off of the originator/servicer while owning a growing and re-purposed asset manager at a potentially attractive valuation.”
The company’s stock was trading at $10.20 on Wednesday afternoon, up by 1.54% after the earnings report.
Despite a $35 million net loss in the second quarter, Zillow saw a slight annual increase in revenue to $506 million, beating Wall Street’s estimates. As a result, the company’s executives told investors and analysts that they were pleased with the firm’s second quarter performance, especially in touring, financing, and renting.
“Zillow outperformed the broader industry for the fourth consecutive quarter as we navigate a tough real estate market,” said Zillow cofounder and CEO Rich Barton on the firm’s second-quarter earnings call Wednesday evening. “I’m pleased with our steady progress on improving and integrating our customer and partner experiences, especially in touring, financing, and renting. The housing super app is coming into focus, opening up significant transaction TAM for the company and our shareholders.”
With the resilient but still slower housing market conditions of the second quarter of 2023, Zillow reported that traffic to its apps and site was at 226 million average monthly unique users, down from 234 million a year ago.
Zillow executives attribute much of this improvement to a healthy top of funnel relative to the weak housing market, and consistent organic traffic to their apps and sites.
Meanwhile, Premier Agent, Zillow’s residential segment, reported a 3% annual decrease in revenue, outperforming both the 22% drop in U.S. home transactions and the high end of the company’s expectations. It also marked the fourth consecutive quarter of outperformance, noted Barton.
According to the executives, the company was able to deliver a better-than expected number of connections to Premier Agent partners, and had strong performance relative to the macroeconomic tailwinds in housing.
Zillow’s mortgage arm, Home Loans, on the other hand, recorded a 17% year-over-year decline in revenue to $24 million. Purchase loan origination volumes in Q2 2023 grew 30% sequentially from Q1 2023 and 73% year over year from Q2 2022. Finally, rental revenue increased 28% year over year to $91 million as the company continued to see strong traffic and growth in multifamily properties.
Although rival CoStar has made noise in overtaking Realtor.com in web traffic, Barton stressed that Zillow has remained the most-visited rental platform since May 2022, according to Comscore.
Barton also touched on its fabled “housing super app.” He reiterated the five growth pillars of the app, touring, financing, seller solutions, enhancing our partner network, and integrating our services.
“The expected output of this strategy is to grow our share of customer transactions from 3% to 6% by the end of 2025,” he said.
Barton also presented Zillow’s product roadmap, touching on different updates and projects underway. He highlighted the launch of Listing Showcase by ShowingTime+ last June in select markets. The product, an AI-powered “super listing” available exclusively on Zillow, was made to allow listing agents to present their brand and properties in a distinctive manner.
Zillow on Wednesday also announced the acquisition of Aryeo, a marketing media solution for agents and brokerages. Aryeo will become a part of ShowingTime+.
Barton also spoke of Zillow’s partnership with Opendoor, which allows sellers on Zillow to request a cash offer from Opendoor, stating that it is now present in 25 markets, compared to 2 when they first launched in February.
The company said it’s projecting third-quarter revenue of $458 million to $486 million.
Anxiety can be considered a disability. If you have severe anxiety symptoms that prevent you from working and you meet certain criteria, it’s possible to qualify for Social Security Disability Insurance (SSDI) benefits.
Applying for disability benefits takes time, though, and most claims are denied. To increase your chances of getting approved, you’ll need to show robust medical documentation. Consider getting an experienced disability lawyer to help you put together a strong case.
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Work accommodations for anxiety
The Americans with Disabilities Act (ADA) requires that reasonable accommodations be made in the workplace (assuming the employer is able to do so) for employees with disabilities, including mental health conditions and anxieties
. Common accommodations for workers with anxiety might include:
Quieter workplace environments.
The ability to work from home.
Flexible scheduling to allow for medical appointments.
If your employer refuses to provide reasonable accommodations for anxiety, this could be considered discrimination. If you believe you’re being discriminated against on the basis of disability, you can file a complaint with the U.S. Equal Employment Opportunity Commission within 180 days of when the discrimination occurred. You might be entitled to a remedy such as a reassignment, promotion or back pay.
What type of anxiety qualifies for disability benefits?
Your anxiety needs to be found to be a medically determinable impairment of your daily life in order to qualify as a disability for SSDI, says Amanda J. Bonnesen, an attorney with Berger and Green Attorneys at Law, an injury and disability law firm based in Pittsburgh.
The Social Security Administration’s definitions
The Social Security Administration (SSA) will first consider whether your supporting medical documentation aligns with the adult medical listing for anxiety in the SSA Blue Book
, the guide that lists medical specifications to qualify for disability.
For anxiety disorders: Patients must display several overlapping symptoms, starting with three or more of the following:
Irritability.
Difficulty concentrating.
Restlessness.
Easily fatigued.
Muscle tension.
Sleep disturbance.
For anxiety that’s medically diagnosed as agoraphobia or a panic disorder: The condition must cause a person to have a disproportionate fear or anxiety about two separate situations (like interacting with other people and using public transportation) and/or cause persistent panic attacks.
Along with those indicators, you’ll also have to show either
:
Certain functional limitations.
Or a history of having a serious or persistent anxiety disorder for at least two years and receiving treatment for it.
Your work history
If your medical records don’t exactly match the criteria in the Blue Book, the SSA will move on to analyze your work history. That usually includes consulting with vocational experts, physicians and/or therapists to formulate what they see to be a person’s functional limitations, and whether or not the condition is impacting the ability of a person to do their job.
A disability attorney will typically try to get a claim approved “by showing that even though a client is in treatment, the best functionality this person is going to have still prevents this person from attending work regularly,” Bonnesen says. “Or, if they do attend, they’re not able to stay on task, maybe requiring moments to leave work to gather themselves, or to leave altogether because of their symptoms.”
How likely is it that the SSA will approve my SSDI application?
The likelihood of your SSDI application being approved depends greatly on the details of your specific case.
For claims filed from 2010 through 2019, 31% of disabled-worker applications were granted benefits
. As of December 2021, about 4% of SSDI recipients received benefits due to “other mental disorders,” a category that includes anxiety.
“The problem is, at every stage of the game there’s a human being on the other end making that decision,” Bonnesen says. “So unfortunately, as much as they try to make it objective with rulings, laws and federal codes, there’s still a human being interpreting it. There’s no way to take the subjectivity completely out of it.”
Julie Burkett, an attorney who serves on the board of directors for the National Organization of Social Security Claimants’ Representatives (NOSSCR), says she recently had two decisions handed down regarding anxiety disorders in the same week, one that was approved and one that was denied.
The likelihood of getting a claim for anxiety approved? “It’s possible, but not a given,” she says.
SSDI benefits for anxiety
How much income a person can bring in through SSDI is dependent on several factors.
“What Social Security will do is analyze your earnings history pooled through the IRS,” Bonnesen says. Social Security then uses its own formula to calculate a monthly benefit.
Of those awarded benefits, payments typically amount to more than part-time wages but not as high as a full-time salary, Bonnesen says. In June 2023, Social Security paid approximately $1,483 per month to disabled workers
. This, it’s worth noting, is barely above the federal poverty level.
How to improve your chances of qualifying for SSDI
Applying for SSDI can be a challenging task. There are a few things you can do to help improve your chances of qualifying.
Try every recommended treatment
The SSA is looking for medical conditions where the person is doing everything medically recommended to get better and the treatments are just not helping them stabilize, says Bonnesen. Someone who drops out of treatment or only sees a primary care physician — as opposed to therapists and specialists — won’t be considered, she notes.
Communicate clearly and frequently with your medical team
Be sure to communicate all of your symptoms with your doctors and therapists.
“Don’t assume or take for granted that the first time you tell them something, that will carry through,” Bonnesen says. “Be vocal the whole time, or your records won’t reflect what you’re suffering with.”
Follow your doctor’s orders
If your doctor recommends a course of action or treatment for your condition, you’ll want it documented that you’re doing what they recommended, says Burkett.
Avoid alcohol and recreational drugs
If you drink or use recreational drugs and have anxiety, the SSA will need to determine whether you’d still suffer from anxiety without the interference of those substances. This makes the process more difficult.
Get to know the parameters for continuing to work
Anyone looking to apply for SSDI should understand the rules regarding working and receiving benefits.
“A person cannot be working full time. That’s the whole standard,” Bonnesen says. “Social Security compensates individuals who are unable to work full time, on a consistent and ongoing basis, due to a condition lasting or expected to last 12 months or longer.”
Since the application process can take a while, people can work part time, within certain limits, while waiting on their decision. That’s typically under 40 hours a week, with gross monthly earnings that are less than a certain amount. For 2023, someone earning over $1,470 per month (or $2,460 if they’re blind) won’t be considered for SSDI
.
Once your application has been accepted, there is a trial period of nine months allowed for someone to receive full benefits and test their ability to work, regardless of how much they make.
Get a lawyer
If it seems like qualifying for SSDI requires jumping through a lot of hoops, that’s because it does.
“Representation can help so much, because it allows an individual to focus on what they need to do with their health team, rather than worrying about paperwork with the administration or deadlines or gathering records,” Bonnesen says.
Look for a disability lawyer with experience working on claims like yours, with a high rate of successful outcomes. Disability lawyers work on contingency, meaning they won’t be paid unless your claim is approved. The SSA also sharply limits how much disability lawyers can charge in fees.
Frequently asked questions
If I’m denied SSDI once, can I reapply?
There are four ways to appeal an SSDI denial:
A reconsideration of your original claim by a person who was not involved with the original claim.
A hearing by an administrative law judge.
A review by the appeals council.
A federal court review, which can only take place if you disagree with the appeals council or your request was denied by them.
If you do plan to appeal a denial, you have 60 days from when you receive notification of your denial to do so.
What records do I need to share with the SSA to qualify for SSDI?
The more information you can gather to file your SSDI request, the better your chances are of succeeding.
The SSA recommends getting together a “substantial” history of treatment from your physician and qualified mental health professionals. That includes therapy notes, hospitalization records, psychological tests, reports from your doctors and, if relevant, work history reports.
What if my anxiety keeps me from being able to handle everything I need to do to apply?
Look for an experienced disability lawyer who has worked on anxiety claims in the past. They can help with meeting deadlines and completing the application process.
Have you ever wondered what a 9-figure amount looks like? It’s a sum of money too big to ignore, with a whopping total of 100 million to less than 1 billion. Discover more about this colossal figure and the wealth it represents
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 843.8 million USD in 2021.
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?
Table of Contents
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
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.
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.
David Zaslav: The Discovery Dynamo – Captaining Discovery as its CEO, David Zaslav, commands a whopping $129,500,000.
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.
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 $47,709.90per 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.
Instead, individuals in this income bracket often have multiple income streams, such as investments, business ventures, and other revenue-generating activities.
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-Figures 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:
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.
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
How many words are nine figures?
Nine figures is a term used to refer to incomes between $100,000,000 and $999,999,999. It does not refer to the number of words.
Does anyone make nine figures?
In the United States, a remarkably small number of individuals achieve the remarkable milestone of earning nine figures or more. According to a report by Market Watch, only 205 people in America earn an astonishing sum of over $50,000,000 in wages alone annually.
To put this into perspective, a nine-figure income would be twice the amount of $100,000,000! As a result, the exclusivity of this income bracket is amplified, leading to a limited number of individuals who can boast such astronomical earnings.
What do “figures” mean in money?
Figures is a term used in accounting and finance to refer to digits of numerical values. It does not refer to physical currency or coins. For example, if you have $50,000, five figures are present (50000). This can also apply to other forms of money, such as stocks, bonds, and investments.
What is a nine-figure job?
A nine-figure job is a term used to refer to the careers of those who have achieved the tremendous milestone of earning nine figures or more annually. This could include professionals from various industries such as tech, investment banking, and sports.
These individuals are typically highly successful in their fields and command higher salaries than other professionals due to their extensive experience and knowledge.
What’s the difference between a 9-figure salary and a 9-figure income?
A 9-figure salary is an annual income of $100,000,000 or more. A 9-figure income is a measure of all sources of income that a person has, including wages, investments, and other revenue streams like royalties. This means that a person can have a nine-figure income without having an extremely high salary.
For example, someone who earns a salary of $1,000,000 but has investments of $100,000,000 would have a 9-figure income. This demonstrates why it is important to consider all sources of income when assessing the overall financial health and status of an individual or family.
What is the difference between 9 figures and 8 figures?
Eight figures refer to financial values between $10,000,000 and $99,999,999. In contrast, 9 figures are incomes of $100,000,000 or more. This is an important distinction to make when discussing the wealth of individuals because it shows how much greater the income of a nine-figure earner is compared to someone with eight figures.
For example, someone who makes $100,000,000 in a year would have twice the earnings of someone who makes $50,000,000. This is why it is important to consider figures when discussing wealth and income, as they can provide valuable insight into the financial status of an individual or family.
Is 9 figures a lot of money?
Yes, 9 figures is a lot of money. It is an astronomical amount that few individuals ever reach. As such, it demonstrates the impressive achievements of those who have managed to achieve nine-figure incomes and provides insight into their level of success and financial status.
Zillow Group‘s new-construction listings will be automatically syndicated to Redfin. The deal between the listing platforms comes as new construction listings form roughly 30% of the housing sales market.
The partnership is aimed at expanding the reach of homebuilder listings on Zillow, allowing Redfin’s brokerage customers to explore a broader range of new construction for sale, the two companies said on Tuesday.
“Zillow’s Community pages, in particular, help buyers understand the benefits of a new-construction home and give home builders a place to highlight all the amenities within a new-build community,” Owen Gehrett, vice president and general manager of new construction at Zillow, said in a statement.
“The partnership with Redfin extends this unique and valuable resource to a wider audience. It benefits home builders by expanding their reach to additional home buyers,” Gehrett added.
Zillow and Redfin’s partnerships come at a time when buyers are increasingly turning to new construction due to a rate lock-in effect caused led by high mortgage rates.
New single-family home sales rose 23.8% in June from a year ago while the market saw 28% fewer new listings added during the same period.
With inventory of existing homes dwindling and buyers’ demand for new construction rising, one-third of single-family homes available for sale were newly built homes – marking a record-high share, according to a Redfin analysis.
“This (Zillow partnership) is a win-win-win for our customers, agents and the builders who advertise with Zillow, who will now reach the homebuyers on Redfin,” Adam Wiener, Redfin’s president of real estate operations, said.
“The partnership provides a new revenue opportunity while allowing us to focus on what we do best, helping customers buy and sell homes with local Redfin agents,” Wiener added.
Zillow, the country’s top real estate listing platform, recorded a $22 million net loss in the first quarter of 2023. Its business model relies heavily on revenue from real estate agent advertising, and it’s been a sluggish housing market.
Traffic to its apps and site remained flat compared to a year ago and other metrics including – Premier Agent and Zillow Home Loans – were not as strong.
Despite weak financial earnings, executives said they will focus on making the home-buying transaction more seamless for the remainder of 2023.
Real estate brokerage and listings platform Redfin was also in the red in Q1 — reporting a $60.8 million net loss, an improvement on the $90.8 million lost in Q1 2022.
While executives at Redfin noted that the company is headed in the right direction, the firm is unlikely to get in the black in Q2 – with net loss projected to be between $35 million and $44 million.