💰We're talking taxes today

This week’s pressing questions:

• Would you start investing in gold if they sold it at Costco?
• Would you still invest in diamonds if you knew they were a scam?
• If we ship #PeloMon (like, Peloton and Lululemon, get it?), do you think they’ll make their products more affordable?

Get the scoop and weigh in on the debate by hitting reply to this email. All this and more as we supercharge your money, one step at a time!

- Milan

IN THE STOCKS

• S&P 500 4,308 (1.18%)
• NASDAQ 13,431 (1.60%)
• Dow Jones 33,407 (0.87%)

*Stock data as of closing on October 6th.

THE MONEY BREAKDOWN

What is the Progressive Tax System?

Taxes seem like a scary concept but today we’re breaking down the progressive tax system and all the ways it helps us move forward as a society. The progressive system is like the cool kid of the tax world and is used by most governments to reduce income inequality, fund social programs, and ensure that the tax burden is proportionate to citizens’ ability to pay.

In simple terms, each person who earns a salary falls under a tax “bracket”. The first bracket, where you're just getting started, has a lower tax rate, and as you get promoted, you’re pushed into higher tax brackets. But you don’t just pay a single percentage on your total income. 

Each bracket is allocated a percentage. In 2023, for the first $11,000 you earn, you are taxed 10%. As you enter the next bracket, you will pay 10% on $11,000 and then 12% on the rest. Once you earn more and move into the next bracket, you will earn 10% on the first $11,000, 12% on the next $11,000, 22% in the next bracket, and so on. Congrats! You are now one of the few people who understand how we are truly taxed.

If you are still a little confused, here’s another explanation for you.

IN THE KNOW

Calling All Lovebirds 💍

Prices of raw, uncut, unpolished diamonds are the lowest they’ve been all year so there’s no better time than now to invest in some much-awaited bling. If you’re in love and have been thinking about popping the question sometime soon, dare we say this is your sign?

Back in 2020, when people were unable to spend money on travel and dining because of lockdowns, they invested in luxury goods like diamonds and gold jewelry. Because diamonds are a consumer-driven market, this week’s downturn in diamond prices comes as consumers shift away from buying luxury goods and invest their money in services and experiences instead. 

But of course, we can’t have it all. Prices are expected to climb again throughout winter and early next year, when holiday shopping sends demand through the roof. What’s more, according to experts, just because the price of raw diamonds is declining, it doesn’t mean you’re going to see much of a difference in store. Retailers will continue to protect their profit margins, despite their reduced costs (boo!).

But don’t fret, we have a few tips that will help you through this tumultuous time. The solutions to all your diamond problems are in Milan’s Hack of the Day below!

Another Chance to Invest in Luxury 🏆

If diamonds aren’t really your thing, you might want to invest in another precious commodity that only appreciates in value: gold. Why now? Gold has appreciated over 15% in the last year and also because Costco says so. 

Everyone’s favorite savings store has now started selling 1 oz Gold PAMP Suisse Lady Fortuna Veriscan bars and they’re selling out fast. In true Costco style, the price is only available for purchase online by Costco members and each member can purchase a maximum of two gold bars. So it’s not really a way to rack up your wealth but definitely a way to start building your asset portfolio. As people continue to lose faith in the dollar, many are turning towards investments like these and we fully support it. 

Would you buy a gold bar from Costco? Hit reply to this email and let us know!

Side Hustles for Student Loans 🎓

Pandemic-era trends are all finally unraveling and student loans are no exception. After a three-year pause on federal student loan repayments because of the pandemic, millions of borrowers must now start making payments once again. 

Though the Biden administration recently forgave $9 billion in federal student loan debt under a one-time adjustment, 28 million Americans have restarted payments this October and are looking for new ways to finance this additional expense. Regardless of whether or not you have loans to pay, starting a side hustle is a great way to get ahead of your money and start building wealth. 

Look for the perfect side hustle for you in your niche, your city, or your network. You can start small, like fixing iPhone screens, or aim for something more lucrative, like dropshipping. If you want more ideas for side hustles, download my free Top 15 Hacks guidebook that has all the deets at www.milansingh.co/hacks 

Fitness Feuds are Finally Ending 💪🏼

Long-time feuding fitness companies Lululemon and Peloton are finally joining hands like they were always meant to. In 2021, Lululemon sued Peloton for “copying” their fitness wear products but the brands have finally come together to sign a 5-year long partnership.

Under the partnership, Lululemon will discontinue its fitness hardware, Mirror, and Peloton will significantly reduce its in-house clothing manufacturing. Instead, Lululemon will begin manufacturing a majority of Peloton-branded clothing and make Peloton’s on-demand online fitness classes available in the Lululemon Studio app. 

The two brands come together to form a “strategic global partnership” that’s bound to become a fitness powerhouse in no time, and with their combined resources, maybe we’ll see some great deals from our favorite fitness brands. Or at least we can hope.

MILAN’S HACK OF THE DAY

Who Needs Diamonds? 💎

We promised you the solution to impractical diamond prices and we’re here to deliver. But first - did you know that the value of the diamond industry was artificially inflated by one company? 

In the 80s, De Beers artificially restricted the supply of diamonds and simultaneously increased the demand through a genius marketing campaign. The results of it have lived on for decades and made diamonds a far more precious commodity than they actually are.

Our hack of the day? Don’t buy a diamond engagement ring. There are more meaningful and sustainable stones you can source, like a moissanite. But if she insists, here’s how you can save big on your dream diamond.

MONEY MYTH OF THE DAY

A Savings Account is the Best Way to Save Money

You must have noticed how savings accounts don’t really save you a lot of money. Average interest rates don’t match inflation and the bank seems to be making more money off your savings than you do. We’re here to confirm that your bank is, in fact, gaslighting you. 

You can make much more money off your savings by putting it away in a High Yield Savings Account (HYSA). It gives you a 4.50% APY, is FDIC insured, and has no hidden taxes or fees, so it’s really a win-win. I highly recommend SoFi and you can sign up for your very own account at milansingh.co/sofi

VIDEOS YOU MAY HAVE MISSED THIS WEEK

Here are the top videos you loved the most this week. Which one was your favorite?