At Accudo Capital Investments, we help founders, CEOs, and high-net-worth entrepreneurs safeguard their empires, families, and financial futures through smart insurance strategies that go far beyond the basics.

This guide is your deep dive into the seven advanced insurance policies every serious business owner needs — and how they work to defend not only your company, but your legacy.

Tony Robbins critiques 401(k) plans, widely used retirement savings vehicles holding over $3.5 trillion in assets and generating substantial profits for financial institutions, for often falling short of ensuring financially secure retirements. He underscores the issue of the “tyranny of compounding fees,” a term introduced by Vanguard founder John Bogle, as a major drawback that gradually erodes savings. Robbins points out that many 401(k) participants remain unaware of these fees; an AARP study found that 80% of individuals are oblivious to their plan’s costs, with 70% mistakenly believing they pay no fees at all, despite significant fee variations even among comparable investments.

The intricate fee structures of 401(k) plans often leave the average investor struggling to comprehend the costs they are incurring. Hidden within the fine print under terms like revenue sharing, expense ratios, wrap fees, and more, these charges—sometimes numbering up to 17 different types—can quietly erode an investor's savings.

The Case for Low-Cost Index Funds

Robbins advocates for low-cost index funds over actively managed mutual funds, prevalent in 401(k)s. He notes that only 4% of actively managed funds have surpassed market performance in the last decade. This statistic is further highlighted by the inconsistent nature of this 4%, varying each decade, which suggests a lack of sustained success among active fund managers.

Low-cost index funds, designed to mirror market performance, have significantly lower fees, often around 0.14%, compared to the 1.5% or more charged by typical mutual funds. This difference in fees can substantially increase savings over an investment lifetime.

A Real-World Example

To demonstrate the impact of fees, Robbins shares a striking example of two neighbors with contrasting investment strategies. One opts for an average fund with a 3.1% fee, while the other selects a low-cost fund with a mere 0.14% fee. Assuming both achieve an annual return of 8% on their investments, the neighbor investing in the low-cost fund accumulates significantly greater wealth over time. With an initial yearly investment of $5,000, the low-cost fund investor could amass $1.4 million, compared to just $619,000 for the higher-fee fund investor. This substantial difference—more than double the retirement savings—powerfully underscores the profound influence fees can have on investment outcomes.

The Long-Term Consequences of High Fees

Robbins highlights a crucial point: investment product fees can significantly hinder wealth accumulation. This isn't merely about slight differences in earnings but about substantial gaps in retirement savings. Even small percentage differences in fees compound over time, creating a stark financial divide between those who opt for low-cost funds and those burdened by high-fee options.

The Importance of Financial Literacy

Robbins emphasizes that ignorance is far from bliss, particularly in the realm of financial planning. He points out that what investors don’t know can significantly harm their financial well-being. Referencing a Forbes article, he highlights that the average cumulative cost of investment fees makes financial literacy not just advantageous but crucial for anyone aiming to achieve long-term financial stability.

Educating Yourself to Save Your Future

The central lesson from Robbins’ insights highlights the significance of being well-informed and proactive when it comes to investment decisions. By understanding how fees are structured and their long-term impact, investors can make smarter choices that align with their financial objectives and enhance their retirement savings. Robbins emphasizes the power of taking charge of one’s financial future by opting for low-fee investment strategies, which could potentially allow individuals to retire up to a decade earlier compared to high-fee alternatives.

Conclusion: Taking Action for Financial Freedom

Tony Robbins’ insights into the hidden costs of 401(k) plans serve as an essential wake-up call for investors. The “tyranny of compounding fees” must no longer be overlooked by anyone striving for financial independence and a secure retirement. By choosing low-cost index funds and gaining a clear understanding of the various fees tied to investment products, individuals can dramatically improve their financial outcomes. As Robbins wisely states, it’s about ensuring “you’re not lining the pocket of someone else” but instead investing in your own extraordinary future. His message is straightforward: take proactive steps today to safeguard your financial well-being. Life of an investor’s nest egg over a lifetime, according to Bloomberg.

A sign stands outside a branch of Wells Fargo bank Wednesday, April 17, 2024, in Littleton, Colo. (AP Photo/David Zalubowski, File)

Key Points

• The Federal Reserve has lifted the 2018 asset cap on Wells Fargo after concluding the bank remedied its toxic sales practices.
• CEO Charlie Scharf hailed the bank as “different and far stronger” and awarded $2,000 to each of the bank’s 215,000 employees for their role in the turnaround.
• Wells Fargo’s sales culture had forced branch staff to open about 3.5 million unauthorized customer accounts, costing the bank billions in fines and severely damaging its reputation.
• The 2018 asset cap was an unprecedented Fed penalty that barred Wells Fargo from growing its assets until the bank demonstrated lasting reforms.

NEW YORK (AP) — The Federal Reserve said Tuesday that Wells Fargo is no longer subject to harsh restraints the Fed placed on the bank in 2018 for having a toxic sales and banking culture.

It’s a win for Wells Fargo, which has spent nearly a decade trying to convince the public and policymakers that it had changed its ways.

“We are a different and far stronger company today because of the work we’ve done,” said Wells Fargo CEO Charlie Scharf in a statement. Scharf also announced that each of the 215,000 employees at Wells Fargo would receive a $2,000 award for turning the bank around.

Wells Fargo used to have a corporate culture where it placed unreasonable sales goals on its branch employees, which resulted in employees opening up millions of fake accounts in order to meet those goals. Wells’ top executives called its branches “stores,” and employees were expected to cross-sell customers into as many banking products as possible, even if the customer did not want or need them.

After an investigation by The Los Angeles Times in 2016, Wells Fargo shut down its sales culture and fired much of its leadership and board of directors. The fake accounts scandal cost Wells Fargo billions of dollars in fines and lost business and permanently tarnished its reputation, particularly because the scandal broke only a few years after the Great Recession and financial crisis. It was later revealed that Wells Fargo opened up roughly 3.5 million accounts that were not wanted or needed by customers.

Wells Fargo, once thought to be the best-run bank in the country, was now the poster child of the worst practices of banking in decades.

In order to push Wells to fix itself, the Federal Reserve took the unusual step of placing Wells Fargo in a program where the bank could grow no larger than it was in 2018. No bank had previously been placed into such a program, known as an asset cap. The Fed required Wells to fix it culture and redo its entire risk and compliance departments in order to address its problems.

Since taking over in 2019, Scharf’s goal has been to convince the Federal Reserve that Wells Fargo had fixed its toxic banking practices. With the asset cap removed, the bank can now pursue more deposits, new accounts, and additional investment banking businesses by holding additional securities on its balance sheet.

This savings account still promises 10% — plus 9 more of the highest APYs of January 2025
Here’s what you need to know about the best savings account rates right now

Savings account rates are on the decline at the start of 2025, but banks and credit unions with the highest available rates of return this month continue to promise 5% annual percentage yield or more. Whether or not those returns remain, however, is another story, pros say. (See some of the best savings rates you can get now from our partner Bankrate.)

“These yields will come down as the year progresses and as the Federal Reserve trims interest rates further, but the best chance of continuing to earn a competitive return is with a bank currently paying a competitive return,” says Bankrate Chief Financial Analyst Greg McBride, adding, however, that “you can always move your money if the bank cuts the rate too far below what other accounts are paying.”

Here’s everything you need to know about what’s ahead for high-yield savings account rates, how to pick the best option for your money, and the best-paying accounts of January 2025.

What’s ahead in 2025?
After a flurry of interest rate cuts from the Fed at the end of last year, banks and credit unions also began to make some reductions in what they paid on savings accounts. And the average savings account today delivers just a 0.42% annual percentage yield, according to the latest government figures. This time last year, however, the average was 0.46% APY.

Although many larger banks are indeed cutting their promised rates to well below 1% APY, there are dozens of online-only institutions and credit unions promising big returns right now. That said, even the highest rates won’t be available for long, McBride says. “There are still plenty of online savings accounts with yields of 4.5% or better, so that is a good bogey to use,” he says. (See some of the best savings rates you can get now from our partner Bankrate.)

What to consider before opening a new savings account

Many of the highest available savings rates come with some big hoops to jump through. Whether it be with big minimum balance requirements, limited funds available to earn the highest promoted rates, or restrictive membership requirements, McBride says understanding the fine print is always critical before opening an account.

“Put your money directly with a federally insured bank or credit union, and link the account to your existing checking account so you can transfer the money when it is needed,” he says. “Avoid going through technology providers that call themselves ‘fintechs’ but are not banks and rely on partnering with banks in order to offer bank products. Having a non-bank middleman poses a significant, but little-appreciated risk.”

10 of the best high-yield savings accounts of January 2025

These 10 high-yield savings accounts have the best rates for January 2025. All accounts in this ranking are insured by either the Federal Deposit Insurance Corp. or the National Credit Union Administration. Read all the fine print before opening an account to learn about any restrictions or hurdles.

Community Financial Credit Union Savings Accounts: Up to 10.00% APY

This is likely the highest available savings rate available right now, but it comes with a significant restriction. While there is a low $5 minimum required to open an account, only the first $1,000 is eligible to earn this 10% APY. Balances beyond that, however, only earn a return rate of 0.10% APY.

St. Anne’s Credit Union Online Savings: Up to 6.25% APY

Savers at this Massachusetts-based credit union can earn 6.25% APY. However, that high rate only applies to the first $1,000 deposited, with balances beyond that earning as little as 0.03% APY. To qualify, you’ll need to become a member, which means opening an account with a minimum of $5 and living in select counties in Massachusetts or Rhode Island.

Boeing Employees Credit Union: Up to 6.17% APY

This high 6.17% APY account also comes with a sizable catch: It only applies to the first $500, with the remaining balance earning a rate closer to the industry average. What’s more, to become a member and take advantage of what this credit union has to offer, you must live, work, worship, or go to school in Washington State or other counties in Oregon or Idaho.

Digital Federal Credit Union Primary Savings: Up to 6.17% APY

Also among the best of the best this month, this 6.17% APY rate only applies to the first $1,000 and comes with a $500 minimum balance to open. Balances that exceed the $1,000 threshold, however, earn just a meager 0.15% APY, which is well below the industry average. Membership requirements include living in select counties of Massachusetts or in a participating condominium community in New Hampshire but can also be granted to those working for select employer groups or those belonging to local participating organizations.

Apple Bank SmartStart Savings: Up to 6.00% APY

Balances from $1.01 to $10,000 can earn up to 6.00% APY in an Apple Bank SmartStart Savings account. Deposits above that amount, up to $20,000, earn between 3.38% and 6.00%, depending on the balance. A $1 minimum balance is required to open an account.

Andrews Federal Credit Union Online Savings Account: Up to 5.75% APY

This is yet another case where reading the print is critical to understanding your true earning potential. While yes, this is one of the best available rates right now, that promoted 5.75% APY only applies to balances between $0.01 and $1,000, with accounts exceeding that amount earning just 0.05% APY. What’s more, only those who work for one of a dozen eligible employer groups based in Maryland, Washington, D.C., Virginia, or New Jersey can apply, but if you’re not employed by one of the listed organizations, you can qualify through the American Consumer Council.

Oregon Community Credit Union Ignite Savings: Up to 5.25% APY

The 5.25% APY here only applies to the first $500. Accounts with $500.01 to $2,500 earn 3.45% APY. Beyond that, there’s a sliding scale for account balances that bottoms out at 0.15% APY for balances more than $25,000.01. Become a member of the Oregon Community Credit Union by living, working, or belonging to an organization in one of 28 qualified counties in Oregon or by living, working, worshiping, or going to school in Washington State. Those with family members who are members of the credit union can also seek membership, as can students at the University of Oregon, Bi-Mart store members, and Bi-Mart Federal Credit Union members.

Service Credit Union Primary Savings: Up to 5.00% APY

It only takes $5 to open an account and start earning up to 5.00% APY with the Primary Savings account from Service Credit Union. That said, the advertised rate here only applies to the first $500, with balances that exceed that amount earning just 0.25% APY. What may be more restricting, though, is that membership at this credit union is limited to only active-duty military, veterans, and their families, as well as those who currently or previously have worked for the Department of Defense. Another way in is to have worked for one of its eligible employer groups or by joining the American Consumer Council or Financial Fitness Association.

OnPoint Savers Account: Up to 5.00%

This account also requires just $5 to open. And like many of the leading rates this month, this 5.00% APY offer only applies to the first $500, with accounts exceeding that amount earning a low 0.10% APY. To join this credit union, you’ll also have to either live, work, or worship in select counties in Oregon and Washington.

Zynlo Bank Tomorrow Savings Account: Up to 5.00% APY

Meet the low $10 opening deposit minimum, maintain a $0.01 balance, and start earning 5.00% APY today with the Zynlo Bank Tomorrow Savings Account. This is an online-only account and comes without fees.

Wall Street is really worried about bonds. It might be time to buy some.

On Friday, a jobs report that blew past expectations pushed yields on 10-year Treasurys to 4.772%, the highest close since Nov. 1, 2023, and those on 30-year paper to 4.962%.

What is spooking markets, however, is that much of the recent rise in yields doesn’t appear to reflect expectations of stronger economic growth. Rather, it might be the result of investors applying a higher discount or “term premium” to hold long-term bonds, estimates by the Federal Reserve suggest. Some analysts attribute this to the possibility of Donald Trump’s promised tariffs derailing the global economy and leading to a jump in inflation, while his tax cuts bloat budget deficits further.

Movements in term premiums are usually strongly correlated across the globe, and the consequences are being felt more starkly in weaker economies overseas, especially in Britain. There, 30-year yields are trading around 5.4%, a 27-year high. U.K. Treasury chief Rachel Reeves, who has made a public pledge to appease bond markets while also attempting to set out some moderate growth ambitions in her latest budget, is under strong pressure.

France is also in the hot seat: The government is shackled by a parliamentary deadlock and now has borrowing costs firmly above those of Greece.

In a further sign of trouble, the pound and the euro are falling, with the latter sliding close to parity with the U.S. dollar. The S&P 500 and the Stoxx Europe 600 ended Friday down 1.5% and 0.8%, respectively.

But counterintuitively, bonds may ultimately prove to be the safest place amid the storm.

For one, the fiscal doomsayers are probably wrong: Countries that print their own currency can’t truly be pushed to default. More importantly, inflation-linked Treasurys have sold off too, belying the idea that markets see a hot economy and tariffs as a serious inflationary problem.

It might all have to do with interest rates after all. Since December, the Fed has squashed expectations of a prolonged rate-cutting cycle. As a result, the whole middle part of the Treasury yield curve—from two to five-year maturities—has become positively sloped for the first time since 2022. Only the very short end, from three months to one year, remains inverted, reflecting the one or two cuts that markets suggest might still happen this year.

The reason alarm bells are ringing is that longer-term bonds have sold off even more—a “bear steepening” trade, in Wall Street lingo. Three out of four times, yield curves steepen for the opposite reason, historical data shows: a fall in short-term yields driven by central banks cutting rates very fast. Bear steepenings following a period of inverted yield curves are rare and mostly are reminiscent of the “stagflation” periods of the 1970s and 1980s.

But this gets to the core of the matter. Today’s situation, in which central banks have been able to aggressively raise rates without harming the economy and then slowly cut them while launching hawkish messages, is nearly unprecedented.

Keeping this in mind, what is happening to bonds makes sense. Fixed-income investors have ruled out a “hard landing” for the economy and have been persuaded by officials that returns on cash probably won’t dip below 3.5% for the foreseeable future. They have thus started demanding a larger reward to lock up their money for longer.

This term premium still isn’t huge: It is reportedly adding 0.6 percentage point to 10-year yields, when the historical average is 1.5 percentage points. The steepness of most of the yield curve remains mild by historical standards.

So why did stock markets react so negatively on Friday? One key factor might be stretched valuations. After years of technology-led rallies, the S&P 500 has become so expensive that, even if analysts’ optimistic outlook for 2025 is realized, its one-year forward earnings yield has fallen to 4.6%—the same as the yield of a 5-year Treasury. This explains why equity holders are increasingly seeing bonds as competition, especially for medium-term investment horizons.

To be sure, this doesn’t rule out the possibility that yields could rise further or that high yields themselves could have a negative impact on economic growth, especially abroad.

Were growth and corporate earnings to truly suffer, though, central banks would need to change course and go into stimulus mode. Guess which asset class gains in that scenario: Bonds.

Real estate investments can be an excellent way to earn returns, generate cash flow, hedge against inflation, and diversify an investment portfolio. However, buying physical properties can be costly, difficult, and risky. Instead, you can buy shares of diversified real estate investment trusts, or REITs, which are public companies that own large portfolios of real estate and pay dividends to investors. There are many different types of REITs, providing access to residential, commercial, and specialty real estate. Here are 10 of the best REITs to buy in 2025, according to Morningstar analysts:

Realty Income Corp. (O)

Realty Income is a retail REIT that owns, develops, and manages U.S. retail real estate with a focus on single-tenant buildings. It is the largest triple-net REIT in the U.S., meaning tenants pay all property expenses, including real estate taxes, maintenance, and building insurance. Realty Income has a 5.1% dividend yield and makes monthly dividend payments, making it an attractive income source. Analyst Kevin Brown says Realty’s impressive operating metrics and defensive retail tenants make the company’s dividend an extremely stable income source for investors. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $62.42 on Oct. 2.

Invitation Homes Inc. (INVH)

Invitation Homes owns, operates, and leases single-family U.S. homes in the starter and move-up categories. Brown says Invitation’s property portfolio is highly geographically diversified across the Western U.S., Florida, and the rest of the Southeast. He says the cost of renting is lower than the cost of home ownership in many of these markets, a dynamic that supports high occupancy rates and rent growth. Invitation can also hire its own repair and maintenance technicians, helping control costs and maintain higher margins than smaller competitors. Morningstar has a “buy” rating and $41 fair value estimate for INVH stock, which closed at $34.38 on Oct. 2.

Sun Communities Inc. (SUI)

Sun Communities owns and operates manufactured housing communities, primarily in the Midwest and Southeast. Brown says Sun has expanded its portfolio rapidly in the past 15 years. He says the company targets properties that would be appealing as vacation properties or second homes.

Crown Castle Inc. (CCI)

Crown Castle International is a specialty REIT that owns and operates wireless communications towers. Analyst Samuel Siampaus says Crown’s aggressive push into the fiber business in the past decade was a mistake, but the company’s recent announcement that it’s strategically reviewing the fiber business for a potential sale is a positive move and an opportunity to raise cash. Siampaus says Crown Castle shares are attractively valued, and its tower business will continue to grow as global wireless carriers upgrade their 5G networks to meet booming data demand. Morningstar has a “buy” rating and $135 fair value estimate for CCI stock, which closed at $115.78 on Oct. 2.

Healthpeak Properties Inc. (DOC)

Healthpeak Properties is a health care REIT that invests in life science and medical office properties and other health care facilities throughout the U.S. Healthpeak recently completed a merger with Physicians Realty Trust, and the combined company began trading under the ticker DOC in March. Brown estimates the number of Americans aged 80 or higher will nearly double in the next decade. He says people in this age range spend more than four times the national average on health care. Morningstar has a “buy” rating and $30.50 fair value estimate for DOC stock, which closed at $22.34 on Oct. 2.

Host Hotels & Resorts Inc. (HST)

Host Hotels & Resorts is a hotel and resort REIT that owns luxury hotels in North and South America. Brown says hotel REITs have some of the most volatile share prices in the industry, and they tend to be highly correlated to the U.S. economy. Host and other hotel REITs benefit from booming business travel when the economy is expanding, and the U.S. economic outlook is attractive heading into 2025. Morningstar has a “buy” rating and $24 fair value estimate for HST stock, which closed at $17.57 on Oct. 2.

Federal Realty Investment Trust (FRT)

Federal Realty Investment Trust is a retail REIT that owns and manages community and neighborhood shopping centers. Brown says Federal Realty’s portfolio of properties has the highest average location population density and median household income in the retail REIT market. These quality locations generate strong demand for Federal Realty’s shopping centers, resulting in impressive same-store net operating income growth and double-digit re-leasing spreads. Brown says Federal Realty’s properties are reliable investments, attracting tenants and shoppers even in a difficult retail environment. Morningstar has a “buy” rating and $142 fair value estimate for FRT stock, which closed at $111.16 on Oct. 2.

Kilroy Realty Corp. (KRC)

Kilroy Realty is an office REIT that owns and develops life sciences and other office properties in Los Angeles, Seattle, San Diego, San Francisco, and Austin. Brown says Kilroy’s investments in large metropolitan areas on the West Coast were timed well to take advantage of high-growth technology and life science market clusters. Brown says a growing number of these tech companies are requiring employees to return to the office full time. He says offices play an essential role in innovation, collaboration, and company culture. Morningstar has a “buy” rating and $59 fair value estimate for KRC stock, which closed at $37.85 on Oct. 2.

Macerich Co. (MAC)

Macerich is a retail REIT that owns and manages regional and community shopping centers throughout the U.S. Even after its strong performance this year, Brown says Macerich shares remain undervalued. He says the company has done a tremendous job of divesting lower-quality properties, acquiring new Class A malls, and consolidating and redeveloping its existing portfolio. Today, Brown says Macerich is generating higher occupancy levels, tenant sales productivity, and rent revenue. Morningstar has a “buy” rating and $24 fair value estimate for MAC stock, which closed at $17.68 on Oct. 2.

Park Hotels & Resorts Inc. (PK)

Park Hotels & Resorts is a hotel and resort REIT that owns and operates a portfolio of mostly hotel properties in the U.S. Since its spinoff from Hilton Worldwide in 2017, Brown says Park has successfully divested 23 lower-quality U.S. hotels and its entire international portfolio to focus on high-quality assets in domestic, getaway markets. He says Park’s property renovations will help it generate solid revenue growth and industry-leading revenue-per-available-room growth. Morningstar has a “buy” rating and $25 fair value estimate for PK stock, which closed at $14.10 on Oct. 2.

• Forward Dividend Yield: the present stock price divided by the anticipated yearly dividend. *Upside Potential: The percentage difference between the current stock price and the analyst’s fair value estimate.

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Bitcoin’s and Ethereum’s 2025 outlook

Key takeaways

• Bitcoin’s price has broken 8 months of consolidation and has pushed higher into uncharted territory.
• Macroeconomic factors, including liquidity, fiscal policy, and monetary policy, may continue to play key roles in influencing crypto prices.
• In the past few months, bitcoin’s price has outperformed that of ethereum’s. So far, this trend is in line with how the 2 assets have behaved in previous bull markets.

After nearly 8 months of consolidation and volatility, bitcoin’s price has broken above $100,000 and has pushed higher into uncharted territory. Where might it go next? Could the incoming administration and shifts in Congress have any impact? And will Ethereum’s price catch up to Bitcoin’s?

Here are key factors to watch as we head into the new year.

Could the results of the presidential election be positive for crypto?

Many in the crypto industry are cautiously optimistic that the upcoming presidency will be more favorable toward crypto and digital assets compared to previous governments. They hope the new administration will open the doors for long-awaited industry regulations, making it possible for the industry to grow domestically.

That said, it remains to be seen whether this will come to pass.

However, when it comes to factors that might benefit crypto, Jurrien Timmer, Fidelity’s Director of Global Macro, believes there are 2 larger elements at play: fiscal policy (how the government spends money) and monetary policy (how the Fed operates).

“We’re in a period of fiscal expansion. And both parties seem to not be too afraid to spend money,” says Timmer. “And we’re in a different monetary regime now, where we’ve gone from raising rates and driving real rates higher to now lowering rates.” In September, the Fed cut interest rates for the first time since 2020. Historically, interest rate cuts have helped push crypto prices higher, though past performance is no guarantee of future results.

“We’re going to have easier monetary policy and expansionary fiscal policy,” says Timmer. “And that could be a pretty good one-two punch in favor of digital assets, in my view.”

Where might bitcoin’s price go from here?

No one can tell the future, and past performance is no guarantee of future results. With that said, reviewing previous bull markets may provide some context as to where we might currently be in the cycle.

“We were already firmly in a bull market phase before, with bitcoin returning over 150% in 2023 and then adding another 75% year-to-date return earlier in 2024 on the heels of the ETP approvals,” says Chris Kuiper, Research Director, Fidelity Digital Assets®.

“If the past is any guide, we are at least halfway through the full bull market. But Fidelity Digital Assets’ research team is quick to note that the second half of bull markets is typically when volatility and price appreciation are higher versus the first half. However, every cycle can be different.”

Like Timmer, Kuiper believes macroeconomic factors could have the most influence on bitcoin’s price going forward. “The largest macro factors that will drive bitcoin and other digital assets in the year ahead and longer are liquidity and changes in inflation expectations,” says Kuiper.

“Liquidity metrics have turned back to positive year-over-year growth, and we have entered another interest rate-cutting cycle. Inflation is still elevated above the Federal Reserve’s 2% target, and so I personally think there is still a risk of inflation coming back in a ‘second wave.’ Both of these things would be tailwinds for bitcoin.”

When should investors start thinking about taking profits?

Many digital assets have made significant price gains since the beginning of 2023. Those who bought and held crypto throughout the last 2 years may be wondering if they should start locking in profits if they haven’t already.

Of course, the answer ultimately depends on the individual’s goals and risk tolerance. Investors should note that while it may seem there may be a “second half” to the current bull market to come, as Kuiper believes above, past performance is no guarantee of future results. It’s always possible this cycle could act differently, and the bull market could end earlier than expected.

“Fidelity Digital Assets’ research team continues to believe investors should have a very long-term mindset when it comes to these assets, and that regular rebalancing can be critical and beneficial,” says Kuiper. “For example, if an investor sets a target percentage of their portfolio for bitcoin exposure, they should rebalance accordingly if bitcoin rises or falls.”

“This can be an excellent way to manage risk. Somewhat counterintuitively, Fidelity Digital Assets research shows that historically, rebalancing has actually created a net benefit, as it can take advantage of bitcoin’s high but positive volatility.”

Investors should also keep in mind potential tax implications. Consider consulting a licensed tax professional to help accurately manage your tax bill.

Will Ethereum’s price catch up to Bitcoin’s?

In recent months, bitcoin’s price has outperformed that of ethereum’s. So far, this trend is in line with how the 2 assets have behaved in previous bull markets. Typically, bitcoin leads the rally, then consolidates as ethereum and other altcoins catch up.

So when might Ethereum catch up for this cycle? Fidelity Digital Assets Research Analyst Max Wadington is watching for factors that include increasing demand for tokenized assets (one example being stablecoins, a niche where Ethereum is dominant) and the potential for new regulatory clarity regarding decentralized finance (DeFi).

“There has been a bounce back in the spot ether ETP flows during October and November 2024, which finally are showing net positive,” says Wadington. These flows could be a sign that a rebound is in progress.”

Nevertheless, Wadington also sees several reasons to be cautious, as Ethereum faces stronger competition relative to Bitcoin, which could impact its performance. “Many investors view Ethereum as a complementary asset to Bitcoin rather than a replacement, which might limit its potential to outperform,” says Wadington. “Moreover, if traders continue to treat Ethereum and Bitcoin as similar assets, their prices may continue to move in tandem, despite their different use cases. Therefore, while there are promising signs for Ethereum, it is essential to consider these factors when evaluating its future performance.” 

Infinite banking is a concept that has been gaining popularity in recent years as more and more people become aware of its potential benefits. Essentially, infinite banking is a system that allows individuals to act as their own bank and use their own money to finance their financial needs. This is done through the use of a fixed index annuity, which is a type of insurance contract that provides guaranteed returns, in this case paying an average of 15.7% annually.

Let me explain in detail how it works. The first step in infinite banking is to open a fixed index annuity with a reputable insurance company. This annuity is designed to work much like a traditional savings account, with the key difference being that the returns on your investment are tied to the performance of a specific financial index.

In this case, the average annual return is 15.7%. This means that if the financial index you have chosen performs well, your returns will be higher. On the other hand, if the index performs poorly, your returns will be lower. However, with a fixed index annuity, your original investment is guaranteed, so you never have to worry about losing your money.

Once you have opened your annuity, you can start using it as your own personal bank. Instead of taking out loans from a traditional bank, you can borrow against the value of your annuity. This is done by taking out a policy loan, which allows you to borrow up to 90% of the value of your annuity without paying any interest or penalties. You can then use this money to finance your financial needs, such as a home purchase, a business investment, or even a child’s education.

The key benefit of infinite banking is that you are in control of your own money. Instead of paying interest to a bank, you are earning interest on your money and borrowing from yourself. This allows you to keep more of your money and build wealth over time. Additionally, because you are borrowing against the value of your annuity, you are not affecting your credit score or leaving yourself vulnerable to defaulting on a loan.

In conclusion, infinite banking is a powerful concept that allows individuals to take control of their financial future. By using a fixed index annuity, you can act as your own bank, earn high returns on your money, and finance your financial needs without having to pay interest to a traditional bank. It is a smart financial strategy that has the potential to help you build wealth over time.