Ritholtz Wealth Management

Chief Operating Officer

Data Scientist

Cornerstone Research

Senior Analytics Consultant

Analytics Consultant

Senior Analyst

Provide financial and economic analysis for commercial litigation matters.  Support experts in preparing for deposition and trial testimony.

Analyst

Federal Reserve Board (Banking Supervision and Regulation)

Risk Policy Intern

Stanford University

Research Assistant for Program on Energy and Sustainable Development

Acumen LLC

Quantitative Research Analyst Intern

Stanford Institute for Economic Policy Research (SIEPR)

Research Assistant

Despite investing for over 13 years, only 30% of my net worth comes from investment gains.

The other 70% came directly from my income and savings.

If you’re trying to figure out where to focus your attention: look at your paycheck, not your portfolio.

Nick Maggiulli

NY Times Bestselling Author | COO at Ritholtz

Hot take: maximizing time freedom is overrated.

Everyone says they want unlimited free time. 
No boss. No deadlines. No obligations. No work.

But total freedom often leads to stagnation.
Without structure, there is no path forward. 
Without commitment, there is no progress.

Freedom is the antidote to servitude, but the poison to purpose.
Too little and you're trapped, but too much and you're lost.

Don't quietly quit.
Don't retire early.
Don't escape your responsibilities, focus on finding better ones.

Owning a home is the most socially acceptable way to display your wealth.

Tell someone you have a $3M brokerage account and you’re bragging. Show them your $3M home, and you’re “living the dream.” 

The total assets didn't change, only the perception did.

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You want the secret to getting rich? 

There isn't one. 

I've studied personal finance for over a decade. I've written over 500,000 words and published two books on the topic. And, based on everything I've experienced, there's no single solution to getting rich. There's just a collective of daily decisions that build wealth over time.

Work hard. 
Acquire skills. 
Provide value to others. 
Own income-producing assets.

Not everyone follows this path to wealth. Some get lucky. Some are born into it. 

But most aren't. Most people have to work for it over decades. One dollar at a time. One good financial decision after another. 

In the end, thousands of these decisions compound on each other to build wealth.

If there were a secret to getting rich, that's it.

I’ve spent most of my life focused on one person—myself.
My goals. My career. My future.

But now that my wife is 13 weeks pregnant, for the first time in my life, I’m building wealth for someone else.

My latest on the trade-offs between building wealth for yourself and building it for others:

👉 https://lnkd.in/eG-vXdkG

How to pay 0% taxes in retirement while earning $126,700:

-Be married
-Earn only long-term capital gains (e.g. dividends, selling assets)
-Have no other income

Do that, and you can make up to $126,700 tax-free (with the standard deduction). No gimmicks. No loopholes. It's just the law.

Taxable brokerage accounts are underrated.

The greatest irony of building wealth:

By the time your portfolio can generate life-changing money, it isn’t life-changing anymore.

$10K feels huge when you have nothing. 
But it’s a rounding error when you have $10M.

That’s why most wealthy people don’t actually feel wealthy.

Never become a landlord. No amount of money is worth even a 1% chance of going through something like this.

An investment truth that took me years to understand:

The amount of time you spend thinking about your portfolio should be proportional to its size.

When you have $10,000, your annual return can't pay for one month's rent.

When you have $1,000,000, your annual return might be higher than your salary.

This is why worrying about your asset allocation at $10k is a waste of time, but ignoring it at $1M can be financial malpractice.

Knowing which stage you are in is what matters most.

Morgan Housel’s new book The Art of Spending Money comes out today and I couldn’t be more pumped to read it!

$1 million is still a lot of money, but it's not what it used to be.

You'd need $2 million today to have the same purchasing power as $1 million did in 1998.

Back then, having $1 million put you in the top 5% of U.S. households. Today, you'd need closer to $4 million to be in the same group.

The dollar has become worth less, but not worthless. 

$1 million is still a lot of money.
There are just a lot more people with it.

How to stay broke, a guide:

(1) Give up. Accept that you'll never change your situation.

(2) Don't think about the future. Stay focused on the present, or, better yet, constantly dwell on the past.

(3) If you ever catch a lucky break, don't capitalize on it. Ride it back to zero.

(4) Spend to impress others. Make sure everyone else thinks you have money.

(5) Borrow heavily. Only pay back the minimum required.

(6) Stay uninformed, especially about personal finance. The less you know, the better.

(7) Don't invest in yourself in any way. If it could help you, avoid it.

(8) Gamble often. And, if you win big, keep going.

(9) Never own anything that could pay you income. No stocks. No businesses. No real estate.

(10) Work less. Avoid overtime and more responsibility.

(11) Take asymmetric risks with lots of downside and little upside. 

(12) Spend any free time you have in pointless endeavors. Argue with people on the internet. 

For those who want to build wealth, do the opposite of everything listed above.

The truth about money and happiness:

If you're poor, more money will probably make you happier.
If you're happy, more money will probably make you happier.

But if you aren't poor and you aren't happy, more money won't do a thing.

While your 20s can be used building wealth, they’re best used for building skills.

It's easier to get a $10,000 raise than to earn $10,000 a year from your investments.

Careers compound faster than returns.

Friendly reminder that having a $1 million net worth doesn't mean you can spend $1 million dollars. 

Being "house + retirement rich, but cash poor" is the default for the majority of U.S. millionaires.

(Data via US Census Bureau, chart by Bloomberg)

Millennials are both the richest and the most frustrated generation in history.

They have more inflation-adjusted wealth than any group at the same age before them, yet homeownership is down, their debt is higher, and many still feel like they’re falling behind.

Why? Because absolute wealth is different from relative wealth.

Boomers still control 5x more wealth than Millennials. That power imbalance shapes everything from housing affordability to career mobility to political preferences and beyond.

My latest on why Millennials are wealthier than ever (yet still feel behind) and the three paths they have to move forward:

👉 https://lnkd.in/eQecMfDE

If you think wealthy families stay wealthy forever, consider this: 

"When 120 of Cornelius Vanderbilt's descendants gathered at Vanderbilt University in 1973 for the first family reunion, there was not a millionaire among them."

-Fortune's Children (Arthur T. Vanderbilt II)

20% of the Forbes 400 built their wealth in Finance & Investments
17% did it through Technology
10% through Fashion & Retail

But...

100% started a business (or are related to someone who did)

Entrepreneurship isn't for everyone, but it's the only path to extreme wealth.

Everyone thinks that the most common financial mistakes are the things that you do:

-Spending too much
-Taking on too much risk
-Going deeply into debt

But I think that the most common financial mistakes are the things that you don't do:

-Ignoring your career
-Failing to negotiate
-Not investing your extra cash

More money has been lost in wasted potential than in all the bad investments combined.

If there’s a single “hack” to raising your income, it’s learning how to separate your time from your earnings.

Most people get paid when they work.
The goal is to get paid even when you’re not working.

There are four main ways to do this:

Labor: Hire others to create more value than you pay them
Capital: Have your money earn for you
Content: Have your ideas (writing, videos, etc.) earn for you
Code: Build software that earns for you around the clock

This idea is called leverage, a concept popularized by Naval Ravikant. 

It’s not easy to build leverage, but once you do, your time stops being the limiting factor for your income.

If you found this helpful, follow Nick Maggiulli for more.

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