Many people flaunt their wealth online or promote get-rich-quick schemes, but in reality, most millionaires build their wealth through steady, often unremarkable means. The “millionaire-next-door” typically follows a simple, disciplined process that’s so understated, you might not even notice their rise to seven-figure net worth. Here are some subtle signs that someone is quietly building wealth — and if you recognize them in your own habits, you could be on the same path. Must Read 1. Above-average fi ...

Core Insights - The 2026 Social Security cost-of-living adjustment (COLA) is set at 2.8%, resulting in an average increase of $56 per month or $672 per year for retirees, which may not sufficiently cover rising living costs [1][2][8] Group 1: Social Security Adjustments - The average senior's retirement benefit will increase by $56 monthly, totaling $672 annually, which may not be adequate for inflationary pressures [2][8] - The 2.8% COLA is slightly above the historical average but is not expected to significantly impact most beneficiaries' financial situations [1] Group 2: Supplementing Income - Personal savings can be utilized to cover shortfalls from Social Security, with options for tax-deferred and Roth account withdrawals [4][5] - Part-time work is suggested as a viable option for those with limited savings, providing a steady income stream while allowing for flexible hours [6] - Supplemental Security Income (SSI) may be available for low-income seniors to help manage expenses [8] Group 3: Earnings Test and Benefits - Beneficiaries can earn up to $24,480 without losing benefits; earnings above this threshold will result in a reduction of benefits [9] - Once beneficiaries reach their full retirement age (FRA), the earnings test rules change, allowing for higher earnings before benefits are reduced [9]

Fiscal Policy & Economic Growth - The analysis suggests tariffs are running at an annual rate between $400 billion and $500 billion, potentially improving the deficit, but real GDP growth is considered the key to significantly reducing the deficit as a percentage of GDP [1] - The report anticipates real GDP growth will surprise on the high side of expectations later in the year and into 2026, driven by innovation platforms like robotics, energy storage, AI, multiomic sequencing, and blockchain technology, all catalyzed by AI [1] - The analysis highlights deregulation, particularly in crypto, AI, and nuclear energy, as a significant factor for economic growth, with tax changes encouraging manufacturing and innovation through accelerated depreciation schedules and full expensing of equipment, R&D, and software [1] Inflation & Monetary Policy - The report indicates that while inflation may seem stuck in the 2% to 3% range, innovation-driven productivity gains could lead to deflation in the coming years [2] - The analysis points out that M2 money supply growth has significantly dropped compared to the COVID boom, and the velocity of money is declining, potentially diffusing inflationary pressures [2] - The yield curve, measured by the two-year Treasury yield relative to the three-month Treasury yield, indicates tight monetary policy, which is expected to have disinflationary or deflationary effects [3] - True inflation CPI is reported at 19%, even with tariffs factored in, and consumer inflation expectations are expected to decline [3] Market Indicators & Investment Strategy - The analysis notes that manufacturing has been contracting for the last three years, and services are not in great shape, signaling potential economic concerns [4] - The report highlights that AI-powered capital spending is increasing, supported by new tax rules, while the trade deficit is being addressed [5] - The analysis observes that pending home sales are deteriorating, and new home inventory is high, potentially leading to price cuts and impacting the CPI [5] - The report suggests that the return on investment in the US is expected to increase due to innovation, tax laws, and deregulation, potentially strengthening the dollar [5] - The analysis notes that corporate profits are healthy, but quality of earnings and harnessing new technologies will be crucial for future growth [5] - The report observes that commodity prices are going nowhere, and gold is breaking out to all-time highs relative to metals, possibly signaling deflationary concerns [5]

Group 1 - The core viewpoint is that an increasing number of residents prefer to save money in banks, with new bank deposits reaching 9.22 trillion yuan in Q1 2025, averaging 6,585 yuan per person [1] - The total amount of household savings in China is 151.25 trillion yuan, with an average of approximately 108,000 yuan per person [1] - The primary reasons for this saving behavior include the need to prepare for unexpected events such as unemployment and illness, as well as the perception that current investment risks are high [1] Group 2 - Despite a preference for saving, most households have limited savings, with 90% of families holding less than 100,000 yuan, and only 0.37% having savings exceeding 500,000 yuan [3] - Having 300,000 yuan in savings can provide significant benefits, such as financial security during job loss and the ability to manage expenses related to education, home renovations, and travel [3] Group 3 - High housing prices severely impact residents' ability to save, with over 95% of families needing to take out loans for home purchases, which depletes savings and requires a significant portion of income for mortgage payments [5][7] - The average personal housing loan balance reached 417,000 yuan by the end of 2024, with a year-on-year growth of 5.6%, and families spend an average of 42.3% of their income on mortgage repayments [7] Group 4 - Many residents have low monthly incomes, typically between 3,000 and 6,000 yuan, while living costs continue to rise, making it challenging to save [9] - Even families without mortgage pressure may find it difficult to save 3000 yuan monthly, requiring over eight years to accumulate 300,000 yuan without any significant life changes [9] Group 5 - Modern attitudes towards saving differ from previous generations, with younger individuals often prioritizing immediate enjoyment over saving, leading to a trend of living paycheck to paycheck [10][12] - Achieving 300,000 yuan in savings is feasible for ordinary families if they minimize unnecessary expenses and avoid debt, allowing them to reach this savings goal over time [12]