📈 Biggest Growth Opportunities

Together with NEOS

Good morning,

A quick breakdown — in case you just don’t have the time.

1. ⭐ Real estate remains a high growth opportunity.

2. ⭐ Saving $2K / year is easier than you think.

3. ⭐ We spend more on interest than national defense.

4. ⭐ Cava (the salad company) is worth $10 Billion.

5. ⭐ Ethereum ETFs are apparently moving along nicely.

6. ⭐ Automatically begin tracking your net worth with Roi.

Market Overview

Chart of the Week

Millennials believe US stocks have the least amount of growth potential.

Read that sentence again — when asked “What asset class has the greatest opportunity for growth during your lifetime?” only 14% of American millennials answered “US stocks.”

Compare that to the 41% of Gen X’ers (born between 1965 — 1980) who believe US stocks are the #1 greatest opportunity for growth.

This chart tells us three things:

• The disparity of perceived opportunity between wealthy Americans and younger Americans (US stocks).

• Real estate is universally acknowledged as a great investment, likely because the median sales price of a single family home in the US is hitting all-time-highs.

• Despite investing toward a good cause (companies focused on a positive impact) — both wealthy Americans and younger Americans believe this investment strategy isn’t correlated to better returns.

Together with NEOS Investments

Seeking tax-efficient monthly income?

Perhaps it’s time to consider covered call ETFs like SPYI, QQQI, and IWMI.

• The NEOS S&P 500 High Income ETF (SPYI), Nasdaq-100 High Income ETF (QQQI), and Russell 2000 High Income ETF (IWMI) seek high monthly income, tax efficiency, and the potential for upside capture in rising markets for their investors.

• The newest of the NEOS ETFS – IWMI – is being launched at a time when small cap stocks are getting a lot of attention. According to Bank of America*, small cap stocks typically outperform large cap stocks in the 6-12 months after the first rate cut by the Fed.

• If you’re looking to add passive income focused ETFs to your portfolio, consider learning more about NEOS ETFs at neosfunds.com.

In Case You Missed It…

👉 Episode 70: Finding an Extra $2,000 / Year to Invest

In this week’s episode of the Rich Habits podcast (linked here) — Robert and Austin touched on the following:

1. Switch Wireless Carriers — if you’re someone who’s working hard to make ends meet, maybe it’s time to switch from Verizon, AT&T, or T-Mobile to a budget wireless carrier like Visible (not sponsored). They use the same towers as Verizon, while only charging you $25 / month.

2. Count Your Subscriptions — no matter where you are in your wealth building journey, you need to know what you’re paying for every single month. Sometimes those Uber or DoorDash subscriptions sneak up on us! Cut the ones you don’t use on a monthly basis and move on.

3. Shop Your Insurance — while we believe this is very important, it can be tedious and time consuming. Every two or three years take the time to compare auto, boat, home, and other insurance policies. You might find yourself saving hundreds per year!

👉 Q&A: Retirement Investing as an Entrepreneur, Cashing Out a 401(k), & Co-Signing Student Loan Debt

Not only did Robert and Austin hopefully talk someone off the ledge of cashing out their hard-earned 401(k) to invest in real estate, but someone also asked about co-signing $200K of debt to help their cousin pay for dental school.

You won’t want to miss this episode! New Q&A episodes are posted every Thursday morning (listen here).

We answer questions asked via Instagram DMs, so if you’re not yet following us — be sure to follow here! Thanks to all of you that are constantly sending messages! We promise that we’re doing the best we can to get back to you.

Robert’s Callout

Interest paid on federal debt is hitting all-time-highs.

As you all might remember, the Federal Reserve printed $7 trillion dollars (out of thin air) over the course of 24 short months between 2020 and 2022. The first $2 trillion dollars were out of desperation — trying to keep our economy from falling into a Great Depression scenario at the height of Covid-19.

The other $5 trillion… not so much.

Despite the argument for or against the printing of trillions of dollars — causing +35-50% inflation across all spending categories — it happened.

This money printing accelerated the annual deficit, therefor increasing the amount of debt the United States had. At the moment, the US is accumulating $1 trillion of debt every 100 days — that’s over $3 trillion of debt per year!

For perspective, it took our country 200 years (since the creation of the Department of Finance in 1781) to rack up $1 trillion in debt (as reported in 1981). And in only 43 years after surpassing the $1 trillion mark we have now accumulated over $34 trillion of debt.

The worst part about this debt is the interest payments. We’re not paying back any of the principle — only the interest. As a country we now spend more money servicing our interest than we do on all military and defense spending combined!

We don’t have the answers — but we do hope, for the next generation, that this debt can be sorted out quickly and responsibly.

Austin’s Callout

Everyone’s favorite fast-casual Mediterranean restaurant, Cava, has experienced increased momentum over the last 12-months as their revenue is now expected to surpass $1B in 2025.

The company began trading on the stock market June of 2023, and in only one year since making their public debut their stock price has climbed by +144%. This quick rise was catalyzed by the opening of +60 new locations while maintaining 25% profit margins at the restaurant level.

Today, the company’s market capitalization hovers around $10B — and with 323 locations around the country, each restaurant location is “worth” over $30M. Wall Street argues that’s a bit frothy, while other investors continue to pile in.

As an investor myself, I continue to keep an eye on the company’s free cash flow metric.

The Rich Habits Radar

• 👉 Microsoft is facing serious antitrust violations in Europe.

• 👉 Alphabet's Waymo rolls out ride-hailing service in San Francisco.

• 👉 Rivian will get up to $5B from Volkswagen.

• 👉 Ethereum’s ETF process is “going smoothly,” according to the SEC.

• 👉 Tesla issued its third and fourth recalls for the Cybertruck.

• 👉 FedEx shares jumped +14% after crushing earnings.

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• Acorns — Get $35 free when you subscribe

• Suriance — Protect your family with term life insurance

• Video Course — Use code “Newsletter” for 15% off

• Seeking Alpha — Optimize your portfolio

• Credit Card Matrix — Find your next favorite card to swipe

• Roi — Use code “Habits” and start tracking your net worth

• Dynasty — Protect your home in a trust

Disclaimer: This is not financial advice or a recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

NEOS Disclaimer: Investors should carefully consider the investment objectives, risks, charges and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF's prospectus containing this and other important information, please call (866) 498-5677 or view/download a prospectus here: SPYI | QQQI | IWMI. Please read the prospectus carefully before you invest. 

An investment in NEOS ETFs involve risk, including possible loss of principal. The equity securities purchased by the Funds may involve large price swings and potential for loss. 

The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses. The earnings and prospects of small and medium sized companies are more volatile than larger companies and may experience higher failure rates than larger companies. Small and medium

sized companies normally have a lower trading volume than larger companies, which may tend to make their market price fall more disproportionately than larger companies in response to selling pressures and may have limited markets, product lines, or financial resources and lack management experience. The funds are new with a limited operating history. 

Investments in smaller companies typically exhibit higher volatility. Investors in NEOS ETFs should be willing to accept a high degree of volatility in the price of the each fund’s shares and the possibility of significant losses. 

NEOS ETFs are distributed by Foreside Fund Services, LLC. 

*Source: https://finance.yahoo.com/news/investors-havent-loved-small-cap-stocks-this-much-in nearly-3-years-heres-why-191741930.html

(shoutout to Meg from IG!)