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The Investment That Pays 90% of Its Income to You: A Guide to REITs

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The Investment That Pays 90% of Its Income to You: A Guide to REITs


Are REITs a Good Investment? A Brief Lesson in Diversification

Long before Modern Portfolio Theory proved the benefit of diversification, “Don’t put all your eggs in one basket” was practiced. Intuitively, it makes sense to spread your income and investing risk around. The rationale behind diversification and asset allocation is that when one asset goes down in value, another may go up. Spread your investments and risk around and you’ll decrease the volatility of your returns.

For example, invest only in one stock market mutual fund and when the stock market falls 20% in a bad year, so do your investment returns. Add a bond mutual fund to the stock fund and even if the returns on the stock fund fall, the bond fund’s returns might go up 15% and make your total portfolio value more stable. Add real estate to the mix and the added diversification, and lower correlation with the other asset classes increases returns and lowers overall risk of your portfolio.

By adding various asset classes to your investment portfolio your portfolio risk declines and return improves.

What is a Real Estate Investment Trust (REIT)?

” REITs earn a share of the income produced through real estate investment – without actually having to go out and buy or finance property.”

REIT.com

So, you want to add real estate to your investments but don’t understand the whole real estate investment company idea.

According to REIT.com, a real estate investment trust is comprised of many companies, similar to a mutual fund, that own or finance income-producing real estate. There are two general varieties, Equity REITs and Mortgage REITs.

Equity REITs own real property, while mortgage REITs are actually debt instruments and own various types of real estate mortgages and loans. Drilling down, there are many distinct types of REITS from office, industrial, lodging, self-storage, infrastructure, mortgages, diversified and more. Due to the vast choices in real estate, investors can choose to invest in a specific type of REIT, like a mortgage REIT, or go with a broadly diversified fund with many types of real estate holdings.

I’ve invested in both bricks and mortar real estate and REITs and I’m a fan of REITs.

REIT dividends provide steady cash flow and allow you to sleep at night. You’re not going to get a tenant calling at 2 am with a broken pipe. When investing in the Vanguard Real Estate ETF (VNQ) fund you won’t worry when a tenant moves out before the lease is up.

Investing in a real estate fund is as easy as reviewing a list of available funds and clicking “buy” at your online discount brokerage account. But before you rush out to invest, check out the advantages and disadvantages of REIT investing.

Types of REITs

The benefits of investing in REITs include income, capital gains, and capturing assets in a niche corner of the market.

As an investor, I’ve bought broadly diversified real estate investment trusts in the U.S. and abroad. You might prefer to invest your money in specific types of property like storage or office buildings.

The types of real estate trusts might spark an interest in shares in an area you believe is poised to grow.

Most investors will buy and sell equity and mortgage REITs. Equity REITs are more common than mortgage REITs. Although there are also privately traded and non-listed REITs, typically for wealthier investors.

Here is a list of the types of REIT investments you might consider from various sectors:

  • Office
  • Industrial
  • Retail
  • Lodging
  • Residential
  • Timberland
  • Healthcare
  • Self Storage
  • Infrastructure
  • Data Centers
  • Mortgage
  • Diversified

REIT Index Mutual Funds and Exchange Traded Funds (ETF)

The best REITs for long term investors can be found on the NAREIT website. You’ll find nearly 200 different types of real estate investment trusts. This is also a great site to learn.

Here is a list of several broadly diversified national and international REIT mutual funds and ETFs. These are some of the best long-term REITs to gain exposure to a wide swath of the real property market.

  • VGSIX-Vanguard U.S. REIT Index Mutual Fund
  • VNQ-Vanguard U.S. REIT Index ETF
  • RWR-SPDR Dow Jones Index REIT ETF
  • VNQI-Vanguard Global ex-U.S. Global Real Estate ETF
  • FGL-iShares Developed Real Estate (ex-U.S.) ETF International Fund.
  • RWX- SPDR Dow Jones International Real Estate exchange-traded fund.

REIT Example – VNQI

The Vanguard Global ex-U.S. Real Estate ETF (VNQI) is a path to becoming an international real estate mogul. Well, almost. This REIT is a handy way to own real estate stocks in more than 30 countries.

You can count on Vanguard REIT funds to offer low-cost diversification.

With a 7.49% yield, passive investors seeking cash flow might benefit from the fund, with a rock-bottom 0.12% expense ratio. Recent lackluster performance may turn around as developing nations and other international real estate growth rebounds.

VNQ companies are distributed across the globe:

20.4% Emerging Markets

26.20% Europe

47.50% Pacific

1.0% Middle East

2.20% North America

2.70% Other

Pros of REIT Investing

  1. REITs provide an income stream as they are required by law to pay out at least 90% of their income in dividends. Although there are some REITS that circumvent the 90% rule.
  2. REITs have a long track record of growing their dividends.
  3. The properties owned by REIT companies can appreciate in value over time, thus growing your initial investment.
  4. REITs are professionally managed, to get the greatest returns on the individual properties.
  5. REITs provide diversification to a stock and bond portfolio and can curb portfolio losses should stock prices fall.
  6. REITs are easy to buy and sell through your online investment account. My spouse even invests in a REIT fund in his 401(k).

Compare Robinhood vs M1 Finance. Find out which platform is best for your money.

Cons of REIT Investing

  1. REIT investment risk might depend upon the type of properties you’re invested in. For example, mortgage REIT returns could suffer if interest rates are high and fewer investors are taking out mortgages.
  2. As interest rates rise, financing real estate will become more expensive and borrowers will pay higher interest costs. This can put a damper on broadly diversified REIT investment returns.
  3. REIT fund values go up and down, like most securities. Imagine that you buy a Vanguard REIT fund like VNQ for $76.00 per share and a 3.0% yield. If the price falls, your investment will be worth less. You’ll still receive your dividend payment, but the total value of your investment will decline.
  4. Although you typically earn a juicy dividend on your real estate assets, you’ll have to pay taxes on those dividends, typically at a higher rate than the 15% levied on most dividends. This is because most REIT income is considered ordinary income, although this varies by REIT.

Bonus: Should I pay off my mortgage or invest in the stock market?

FAQ

How do REITs make money?

REITs make money from rent they receive. They also make money when they sell real property for a profit.

Can you lose money in a REIT?

Yes. Like most investments, if the share price goes down, and you sell your investment, then you would lose money. When investing, it’s best to own various asset types, so that when one falls in price, others will remain steady or increase.

How is REIT income taxed?

 REITs send IRS Form 1099-DIV to their shareholders. The form breaks down the dividend distributions into ordinary income, capital gains, and return of capital. Investors pay taxes according to their tax rate for each category of income.

How much do REITs pay out in monthly dividends?

REITs pay out roughly 90% of their taxable earnings. The actual REIT payout ratio depends upon how those earnings are calculated.

Are REITs a Good Investment? The Takeaway

You diversify your investments because you don’t know which financial assets are going to shine and which ones will lag. Even if REITs aren’t the best stocks in the next year or two, over the long haul, they’ve proven to be a solid way to invest in real estate and grow your financial net worth.

My family investment portfolio includes REIT shares and has for decades. Like any investment, REITs have pros and cons. Although, there’s really little reason not to invest in REITs in a diversified portfolio.

  • Diversyfund Review – Real Estate Crowd Funding for Everyday Investors
  • REITs and Crowdfunding – How to Invest
  • EquityMultiple Review – Is This Crowdfunding Platform for You?
  • Fundrise vs REITs – Which is Best?

Disclosure; I own VNQ, VNQI and have an account at M1 Finance.

Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link. That said, I never recommend anything I don’t personally believe is valuable.

Barbara Friedberg
Barbara A. Friedberg, MBA, MS, former portfolio manager, is committed to investment and money education across multiple platforms. Her work has been featured on US News and World Report, Yahoo!Finance, Investors.com and more. Friedberg owns owns  barbaraFriedbergPersonalFinance.com which is dedicated to improving investment knowledge and wealth.  Friedberg consults for a select group of fintech companies and writes for many popular online media outlets. Her books “How to Get Rich; Without Winning the Lottery: A Guide to Money & Wealth Building” and “Invest and Beat the Pros-Create and Manage a Successful Investment Portfolio: Best Research Supported Index Fund Strategy” are available on Amazon.
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Alaska Airlines: 30% Off Base Fares With Promo Code SAVE30

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Alaska Airlines: 30% Off Base Fares With Promo Code SAVE30


The Offer

Direct link to offer

  • Alaska Airlines is offering 30% off the base fare of some flights with promo code SAVE30
    • Purchase By: 11:59 p.m. PST on February 25, 2026.
    • Travel Dates Restrictions: Travel is valid from March 10, 2026, through May 21, 2026.
    • Blackout Dates: Per fare rules, travel is not valid on March 21, 2026; March 28, 2026; April 4, 2026; April 11, 2026; and April 18, 2026.

Our Verdict

Nice discount if you have one of these flights you want/need to book. 

‘End Streaming Fraud.’ – Music Business Worldwide

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‘End Streaming Fraud.’ – Music Business Worldwide


MBW Views is a series of op-eds from eminent music industry people… with something to say. The following MBW op/ed was written by Victoria Oakley (pictured, left), Chief Executive Officer of the IFPI, the organization that represents the recording industry worldwide, and Mitch Glazier (pictured, right), CEO of the RIAA (The Recording Industry Association of America).

Here, Oakley and Glazier comment on the recording industry’s ongoing global efforts to combat streaming fraud and suggest what the music business could do to put an end to it.

Streaming fraud is a quiet threat.

It’s often undetected, but it’s happening now and at scale.  It’s siphoning vital revenues away from the artists, songwriters, record labels, music publishers and others who power the music economy.  

The mechanics are simple.  Every day, fraudsters exploit gaps in music platforms’ protections and across the supply chain.  These criminals upload tracks via distributors and deploy armies of ‘bots’ to create artificial ‘plays’ of those tracks to generate income. 

Because streaming services pay rightsholders from a finite pool of revenue, income is being diverted from legitimate creators who attracted users, subscriptions, and advertising to these platforms in the first place.    

This is theft, plain and simple. 

And with the rise of generative artificial intelligence (AI), the practice has been industrialized, enabling the mass creation of artificial content and artificial listening, and making large-scale fraud cheaper and faster to perpetrate – and harder for systems to detect.  

So how can it be fixed?   

It requires a toolbox with varied but proactive and evolving approaches, along with robust enforcement that addresses both the artificial content that is used for fraud and the fake listening. 

IFPI, representing the recorded music industry worldwide, has taken legal action against many organizations behind these manipulation services.

We’ve disrupted and shut down illegal sites in Germany, France, Brazil and Canada, and we work with governments and law enforcement to help investigate and prosecute these crimes. 

But to stop fraud at scale, the organizations with the data, scale and leverage to prevent this fraudulent activity, including streaming services, content aggregators and distributors, must act together.

  

So, what needs to be done? 

  • Implement Robust Identity Verification:  Distributors need to know who is providing content to their services and digital service providers (DSPs) need to verify that accounts are used by real humans who are genuinely engaging with music and not ‘bots’.  These kinds of requirements are used in a variety of industries, such as banking, and involve verifying the identity of clients, including a determination of the level of risk that they could engage in unlawful activity. 
  • Vigorously Vet the Content: Distributors must put in place measures to verify not only the identity of their clients, but the legitimacy of their content before it goes live.  The authenticity of both the customer and the content should be regularly reviewed. 
  • Leverage Ecosystem Data: DSPs have the advantage of seeing across the entire ecosystem and they must leverage this bird’s-eye view. This means using first-class measures to be more effective in detecting, shutting down and mitigating the impact of fake plays and suspicious playlists. 
  • Cross-Industry Intelligence Sharing: When a bad actor is identified by one platform or service, they shouldn’t be able to simply move their “business” to another. Information in respect of known bad actors and their methods should be shared to prevent them from evading enforcement and repeating their behaviour. That means regularly updating measures to capture new fraudulent activity and actors based on shared learnings. 

These actions amount to something simple and essential: streaming services and distributors working together to identify, disrupt, and shut out fraudsters who abuse the system. 

This is essential as generative AI continues to grow and develop.   

Record labels are working to meet these standards. And, if we collectively use existing tools to share intelligence and apply best practices, we can make streaming fraud genuinely difficult and expensive to pursue.   

But it will happen only if the entire music community comes together and commits to meaningful, sustained action.   Music Business Worldwide

This 24 Year Old Has $200,000 in CASH

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This 24 Year Old Has $200,000 in CASH



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Better taps crypto funding to target sub-5% rates

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Better taps crypto funding to target sub-5% rates



Better is turning to crypto-linked capital to fund as much as $500 million in mortgages, betting the move can double originations and eventually push borrower rates below 5%. 

Processing Content

The lender is partnering with Framework Ventures to tap funding through the Sky stablecoin ecosystem, positioning the platform as an alternative source of warehouse liquidity backed by originated assets. CEO of Better Vishal Garg said the tokenized structure is intended to lower financing costs, expand lending capacity and create a new yield channel tied to U.S. housing credit.

Sky allocates capital across various “Stars” in multiple sectors, who then deploy it to generate yield and funnel the earnings back into the Sky ecosystem. Better is Sky’s home finance Star, an independent decentralised project within the ecosystem.

“We believe tokenization has the potential to unlock efficiency and global liquidity in housing finance, one of the largest asset classes in the United States,” Garg said in the release. “We will be the first conforming mortgage originator to deploy tokenized capital to responsibly support mortgage assets at institutional scale.”

Better’s integration into the Sky ecosystem “could be a win for all parties,” said Vance Spencer, cofounder of Framework Ventures, in a press release Monday. 

“With this capital injection, we think Better will be able to rapidly scale origination and potentially lower mortgage rates for consumers in the long-term. At the same time, bringing Better on as a Star would give the Sky stablecoin ecosystem a powerful and differentiated new source of yield,” he added.

Better plans to integrate into the ecosystem through Obex, a Sky-focused incubator administered by Framework Ventures and backed by $2.5 billion, the release said.

The integration will lower costs for Better and partners of its Tinman AI platform, Better’s loan origination system, and their customers by more than 100 basis points per year, Garg said.

Better will have full responsibility of underwriting and loan origination, while the Star will provide the lender with an alternative source of warehouse funding, which would be secured by originated assets and would not increase its balance sheet risk profile, the release said.

Better’s plan could eventually translate into sub 5% interest rates for borrowers, while the rest of the industry charges more than 6%. It could also lower the capital requirements to finance Better’s growth plans of scaling from $500 million per month in originations to over $1 billion this year, the release said.

“All this while providing token holders with yields well above current Stablecoin yield or rewards with superior credit risk,” Garg said. “We’re just getting started.”



A Return to Pre-2008 Lending Rules? Banks Are Ready to Open the Financial Floodgates to Borrowers

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Okay, so liar loans and the opportunity to buy a home in a deceased relative’s name might not be coming back anytime soon. However, the wild-and-windy lending days of the pre-2008 crash are moving a little closer to mainstream America as banks aim to make mortgage lending cheaper and easier.

The Dodd-Frank laws, put in place to prevent the kind of rampant fraud and bad lending practices documented in the movie The Big Short, are not going anywhere. That means qualified residential mortgages (QRMs) must still avoid risky features such as negative amortization, teaser rates, and most balloon payments. Full doc underwriting will also remain in place. 

However, recent comments from Federal Reserve officials and new regulatory reports point to a deliberate effort to put banks back at the center of the mortgage conversation after years on the back foot.

Look Forward to Getting a Loan

Federal Reserve Vice Chair Michelle Bowman said in a speech that the Fed is considering capital changes that would “encourage bank participation in mortgage servicing.” It plans to accomplish this by making it cheaper for banks to service mortgages in-house rather than outsourcing. In banking terminology, that means removing the requirement that banks deduct mortgage servicing assets from core regulatory capital while continuing to apply a 250% risk-weight loss to those assets. Bowman described it as a way to “better align capital requirements with actual risk.”

What that means for investors and flippers is that loan requirements could ease—lower LTV requirements and better underwriting—potentially improving pricing and availability for buyers who can bring more equity to the table, i.e., a higher down payment.

Why the sudden change? It appears that banks realized their bottom line had some wiggle room, as they made it too difficult for homebuyers and investors to get mortgages. In Bowman’s words, financial institutions’ hardline approach to mortgages “has been costly for banks, consumers, and the overall mortgage system.” The Fed’s vice chair added:

“Banks hold substantial numbers of mortgages with low loan-to-value ratios. By requiring disproportionately high capital, we reduce a bank’s ability to deploy capital to support the needs of their community. In light of these considerations, I am open to revisiting whether the capital treatment of MSRs and mortgages is appropriately calibrated and is commensurate with the risks.”

Community Banks Could Have Their Restrictions Eased

U.S. banking agencies have proposed easing the community bank leverage ratio from 9% to 8% and extending the time small banks have to return to compliance, which they say will keep capital strong while giving local lenders more room to operate. That’s vital for mom-and-pop investors who often rely on community and regional banks for small-balance investment loans that larger national lenders often ignore.

What This Means for Buy-and-Hold Investors and Flippers

The immediate benefit for small investors and flippers is likely to be greater access to capital. More lenders competing for your business puts you—the investor—in the driver’s seat regarding loans and terms. 

Industry groups such as the Mortgage Bankers Association (MBA) have said that the current capital framework has discouraged banks from competing aggressively in mortgage origination and servicing, particularly compared to nonbank lenders, including private and hard money operators. Responding to Bowman’s speech, an MBA spokesperson said, “A more appropriately calibrated approach, particularly with respect to mortgage servicing rights and mortgage loans, will strengthen banks’ ability to serve creditworthy borrowers while maintaining safety and soundness.”

Banks Can Afford More Risk

Banks are flush with cash and can afford to take some risks by lending money in situations they would have previously backed away from. U.S. banks generated about $300 billion in profits in 2025, a record level driven by higher interest margins and relatively low credit losses, according to the Financial Times. By loosening lending criteria while keeping Dodd-Frank protections in place, banks hope to thread the needle between viability and responsibility.

Why Community Banks Are Still the Go-To Source for Investors

If an investor prefers to partner with a bank rather than a hard money lender or private money lender, a community bank is still one of the best places to borrow money. These are bedrock investor loans, which tend to have lower rates than mainstream banks.

1. Conventional investment mortgages (one to four units)

For single-family rentals, duplexes, triplexes, and fourplexes, conventional lending requires a 20%-25% down payment, fixed 30-year terms, and is based on your credit score, income, and the subject property’s rents. Community banks are somewhat more flexible with investments than mainstream banks because they are in the market and might be more forgiving with a quirky property, especially if they keep the loan in-house.

2. Portfolio loans

Portfolio loans are usually kept on the bank’s books rather than sold to Freddie Mac and Fannie Mae, allowing the bank greater flexibility in property type, borrower profile, and structure. They are useful for buildings that need work and small multifamily properties with over four units, as well as mixed-use buildings, and for investors with multiple existing mortgages that do not fit strict agency limits.

3. Rental portfolio and “blanket” loans for multiple doors

Once you own multiple doors, doing one loan per property becomes cumbersome. A rental portfolio, or “blanket” loan, offered by a community or regional bank, is useful in these situations. Banks will usually finance $300,000 to over $6 million with 20% down on new purchases and 75% LTV. They allow an investor to free up equity for more deals while maintaining a single point of contact who understands your business strategy.

4. DSCR-style loan—where the property qualifies for the loan

Debt service coverage ratio (DSCR) loans have become an investor buzzword in recent years. Unlike conventional loans, it poses the question, “Does this property’s rent cover the mortgage and expenses?” 

A 2025 DSCR overview explains that lenders typically want a DSCR of about 1.1 to 1.2 or higher, meaning that the property’s net income is at least 10-20% of the total monthly debt payment, with down payments in the 20%-30% range.

5. Small-balance commercial real estate loans (five-plus units + mixed use)

These are go-to loans for small apartment buildings and mixed-use and business-purpose rentals, typically offering $2 million to $3 million with flexible terms and local underwriting, tailored to an investor’s needs.

Final Thoughts

Now that we’ve established that 2026 won’t turn into a banking bacchanalia, where part-time Uber delivery drivers suddenly start buying preconstruction luxury condos in Miami, sound financials still need to be in place to get a loan. That means good credit, proof of income, and cash reserves. 

However, with those in place, it’s likely you’ll be able to qualify for higher loan amounts than you would have previously, and with fewer hoops to jump through. If you plan to invest in 2026, shopping around with local lenders to gauge their changing loan qualification criteria is a good move while you get your finances together.

‘No way I would go to university only to leave with huge debts and poor job prospects,’ says analyst

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‘No way I would go to university only to leave with huge debts and poor job prospects,’ says analyst


As artificial intelligence (AI) threatens the white-collar job market and the cost of living continues to skyrocket, and while doomsday essays about white-collar job loss go viral—including those by Citrini Research and by Matt Shumer—a top global strategist has a stark warning for today’s youth: skip university and learn a trade.

Albert Edwards, a veteran macroeconomic analyst known for his contrarian views and his self-described “perma-bearish” outlook, is sounding the alarm on an economy that is systematically leaving young people behind. Specifically citing the mega-viral doomsday essay by Citrini Research, Edwards wrote in his global weekly strategy that he’s been making the exact same arguments from inside a global investment bank.

Once you factor in the “current clear benefits of surging AI-led productivity growth for investors,” along with lower unit labor costs, inflation and interest rates, he argued, “the blindingly obvious conclusion [is] that AI is already causing serious damage to aggregate job prospects, especially those of recent university graduates.”

“I can honestly say that if I was 18 now, there is no way I would go to university only to leave with huge debts and poor job prospects,” said Edwards. “Instead, I would become an electrician or similar trade.” Edwards even dabbled in the field when he was 22, rewiring his first house in 1983, which he claims to be a success save for losing the top of his left thumb when his interacted with a live connection. “To my knowledge, that house hasn’t burnt down yet.”

Edwards, who has previously talked to Fortune at length about what he describes as his radicalization as an analyst, stresses his views do not represent the house view at Societe Generale. He has long criticized capitalism, as evidenced in his 2023 analysis of corporate profit margins hitting an all-time high. In it, he wrote “we may be looking at the end of capitalism.” Three years later, he’s now predicting the end of perhaps the human side of capitalism. “The AI macro doomsday scenario is not for 2028,” he wrote. “It’s here right now!”

The brick wall

Edwards’ warning stems from this belief that 2028 will be too late for the AI doomsday scenario to play out because of the damage already visible in his analysis. Job cuts, initially concentrated in the tech sector, are now spreading to unexpected industries, including insurance, fund management, and logistics. But at the crux of Edwards’ analysis is the evidence he sees that the consumer is “running on fumes.”

While aggregate consumer spending appears to be growing at a healthy rate of nearly 3%, he highlighted that the growth is fundamentally hollow, entirely unsupported by real personal disposable income, which has remained flat for the last six months. Instead, Americans are surviving by draining their savings.

The personal saving rate has collapsed to an “eye-wateringly low” 3.6%—a level not seen since the euphoria of the 2006 housing bubble. He believes the economy is barreling toward an AI-led consumer crunch, where job cuts cause weaker consumption, triggering a vicious cycle of further layoffs as companies try to maintain their high margins.

The Citrini Research report, for comparison, warned of a “deflationary spiral” and “ghost GDP.” This would be caused by AI as the white-collar workforce suffered a brutal recession from sudden and rapid displacement. In a services-heavy U.S. economy—where white-collar jobs account for roughly 50% of employment and 75% of discretionary consumer spending— the report argued that AI-driven productivity gains would accrue to capital, not labor, with profits reinvested in machines rather than people. In other words, a scenario very much resembling the stagnation in real income growth that Edwards says is already underway.

Edwards added that he believes the recent slump in the savings ratio is a short-term reaction to “real incomes hitting a brick wall.” The personal saving ratio will soon either stop falling—sending consumption growth to zero—or rise on a precautionary basis, causing overall consumption to decline, he added.

Marx for the digital age?

While sell-side research has been somewhat slow to respond to the Citrini note—which by some estimates, triggered a $300 billion selloff in 2026 markets so far—Evercore ISI’s Krishna Guha criticized it as “a high tech version of Marx’s thesis that capitalism would ultimately destroy itself by immiserating the petit bourgeois and working class until it had no consumers left, no additional profits to be earned on existing products produced, and no reason to grow.” Others, such as Marginal Revolution blogger and George Mason economist Tyler Cowen and Ritholtz Wealth Management CEO Josh Brown, have argued that it’s improbable that AI would represent the first time in hundreds of years of capitalism that new jobs would fail to be created by technological advancement.

Edwards previously told Fortune that much of his analysis is rooted in his sense that this is the first generation of Americans who do not feel they will be better off than their parents, creating a primal sense of betrayal. He argues that by being excessively greedy, corporations have “laid the seeds for their own destruction”. The lack of a true stake in modern capitalism takes the incentivization out of the economy for young people entirely. He pointed out that current economic conditions have created intense “intergenerational strife”. Young people are currently shut out of wealth concentration and face a nearly impenetrable housing market, heavily evidenced by the fact that the average age of a first-time homebuyer has now hit 40 years old.

Fortune recently interviewed Seth Lavine, a veteran venture capitalist, and Elizabeth MacBride, a veteran journalist, who co-authored Capital Evolution: The New American Economy, a book grappling with the same soul-searching over where things are headed. MacBride highlighted that neoliberal capitalism was born in an era that ignored behavioral psychology and relied on a purely economic view of human motivation while dismissing the reality that people are highly emotionally driven, and with neoliberalism largely discredited after the crisis of 2008, this period is a “messy middle.” As they learned in interviews for the book, business leaders including BlackRock CEO Larry Fink and JPMorgan CEO Jamie Dimon share concerns about what’s next, as do many normal, everyday middle-class Americans.

“Belief in the future is breaking down,” MacBride noted, pointing to alarming indicators such as dropping life expectancy and a suicide crisis among white men as stark evidence that the system is malfunctioning. Economic mobility has severely contracted: 50 years ago, an American born in the bottom wealth quartile had a 25% chance of reaching the top, but today that chance has plummeted to just 5%. “People do not feel like following the rules of the system is going to get them anywhere,” she added.

“This is probably the first generation [that] won’t be expected to outrun their parents,” Levine added. “So I mean, just by basic measures, we’re failing to provide for sort of economic mobility.”

Perhaps the reason the AI doomsday scenario has struck such a chord is the idea that, instead of potentially restoring the middle class in the 21st century, this technological advancement could go further in the direction of entrenching inequality, wiping out the white-collar careers that left a lucky few with precarious middle-class status. Could picking up a toolbox be safer than risking financial ruin for a vulnerable white-collar career? As Edwards previously told Fortune of modern capitalism’s dysfunctions, “You reap what you sow”.

The Everything App: Coinbase Launches Stock Trading, ETFs

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Coinbase (NASDAQ:COIN), has launched stock trading and ETFs for all US customers. The announcement fulfills previous announcements as the marketplace seeks to become the “everything app,” supplying all an individual’s financial services needs.

Shares of Coinbase pushed higher on the news, closing the day up over 13% from the market open. While far below its 52 week high, the looming approval of the CLARITY Act, the crypto market infrastructure legislation, could provide the fuel to drive Coinbase shares back above $200.

In a blog post, Coinbase said the launch “marks a major step in bridging traditional markets with the digital asset economy.” The company said that a partnership with Yahoo Finance will boost its services by providing a wealth of financial data and information for its customers.

As traditional online brokerages have been slow to embrace crypto and alternative assets, Coinbase has an opportunity to provide a more comprehensive financial platform desired by sophisticated and younger investors.

Coinbase was the first crypto exchange to go public. It has since added many new features and functionalities as it aims to become the modern marketplace consumers demand.

Coinbase stated that users can trade thousands of stocks 24 hours a day, five days a week.  While the company is launching with “leading equities,” the number of securities available will expand over time.

Coinbase also said it would expand perpetuals while allowing global investors to gain access to US equities.

“Our Everything Exchange vision is about removing artificial boundaries between asset classes and building for the next generation of markets. This expansion is a foundational step toward unifying traditional investments and digital assets into a single platform, simplifying portfolio management and unlocking what comes next,” said the company.

Coinbase already supports the diverse universe of crypto, including custody, institutional access, wallets, stablecoins, and more.

In 2025, Coinbase generated approximately $1.35 billion in stablecoin revenue, representing around 19% of the company’s revenue, up from $911 million in 2024.

Coinbase is also poised to enter the primary offering market for private securities. It has been mentioned in the past that tokenization will help support exempt securities offerings issued under Reg A, Reg CF, and Reg D. A secondary trading marketplace would be only a step or two away.

 



When Are You Going to Retire? It May Be Sooner Than You Think

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As my parents aged, my sister and I talked a lot about where Mom would go when Dad passed away. My sister’s house? My house? Assisted living?

We only discussed Mom because my father would obviously go first. He was not only older, but not nearly as healthy. He was legally blind; Mom had to drive him around and take care of him. It wasn’t a problem; she was healthy, happy and in great shape.

Then one Monday morning, Mom took a nap in her favorite chair, and she didn’t wake up.

We’d never considered that scenario as remotely possible. And that’s the thing about life: Just when you think you’ve got it figured out, you find out you don’t.

As they say, people plan and God laughs.

I’ve talked to a lot of people about their retirement plans over the years. Most tell me they’ll keep working until they hit 65 or 67. Many have a spreadsheet mapping it all out. They figure they’ll max out their Social Security benefits and build a massive portfolio before finally calling it quits.

And often it works out that way. Other times, not so much.

The gap between when we expect to retire and when we actually do is one of the most consistent findings in financial research. If you’re building your entire financial future on the assumption that you’ll work into your late 60s, you need a backup plan.

The numbers don’t lie, and they tell a story you need to hear.

The gap between expectation and reality

There isn’t a single official retirement age tracked by the government, but the major surveys all point to the same truth. According to a Gallup poll on retirement timing, the average age when Americans retire is 61 or 62. Meanwhile, non-retired folks expect to keep working until they’re 66.

That’s a massive disconnect.

The 2025 Retirement Confidence Survey summarized by Kiplinger from the Employee Benefit Research Institute (EBRI) paints a similar picture. Workers reported a median expected retirement age of 65. But when you ask actual retirees, the median age they left the workforce was 62.

Even more telling is what happens at the extremes. In that same EBRI survey, 30% of workers said they expect to retire at 70 or later or simply never stop working. Yet only 9% of actual retirees did that.

Conversely, just 12% of workers plan to retire before 60, but 27% of retirees said that’s exactly what happened to them.

Why we leave the workforce early

You might think retiring early sounds like a dream. For some, it is. The EBRI data shows that among those who retired earlier than planned, 44% did so because they could afford to. That’s the ideal scenario.

But for the rest, early retirement wasn’t a choice. It was forced on them.

  • Health problems: According to the survey, 31% of early retirees pointed to a health problem or disability as the reason they had to stop working. You can’t plan for a sudden illness, but it happens all the time.
  • Company changes: Another 31% cited changes at their employer. That means layoffs, downsizing or a business closing its doors. If you lose your job in your early 60s, finding another one that pays the same isn’t easy. Many older workers eventually give up the job hunt and simply declare themselves retired.

This destroys the popular strategy of planning to work a few extra years to make up for a lack of savings. You can’t just assume your employer will keep you around or your body will cooperate.

The myth of working in retirement

Here’s another assumption that gets people in trouble. A massive 75% of workers in the EBRI survey said they plan to work for pay in retirement. They think they’ll pick up a fun part-time job or consult on the side to bring in some extra cash.

The reality? Only 29% of retirees actually do it.

If your financial plan relies on earning a paycheck after you officially retire, you’re taking a massive gamble. When health issues pop up or those part-time jobs don’t materialize, you’ll be left with a serious hole in your budget.

How to protect yourself

The takeaway here isn’t to panic. It’s to be realistic. You need to stress-test your financial plan for an early exit.

1. Save more right now: Don’t assume you have another decade to catch up. Push as much cash into your investment accounts as you can stomach while you’re still earning a steady paycheck.

2. Understand Social Security: You need to know what happens if you’re forced to claim early. Taking benefits at 62 permanently reduces your monthly check compared to waiting until your full retirement age. (You can read more about the impact of claiming early in “4 Dave Ramsey Rules for Claiming Social Security at 62.”)

3. Plan for the health care gap: If you retire at 62, you still have three years before Medicare kicks in at 65. Finding private health insurance to bridge that gap can be brutally expensive, though there are ways to cover health care costs for an early retirement. Factor those costs into your projections.

4. Build flexibility: The people who survive an unexpected early retirement are the ones who didn’t pin all their hopes on a single target date. Keep your debts low and your options open.

AI’s Big Payoff Is Coordination, Not Automation

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The technology can dramatically reduce the “translation” costs that keep teams, tools, and data from working together.

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