How To Keep & Grow Your Money #27

Today’s Fastest Growing Company Might Surprise You

🚨 No, it's not the publicly traded tech giant you might expect… Meet $MODE, the disruptor turning phones into potential income generators.

Mode saw 32,481% revenue growth, ranking them the #1 software company on Deloitte’s 2023 fastest-growing companies list.

📲 They’re pioneering "Privatized Universal Basic Income" powered by technology — not government, and their EarnPhone, has already helped consumers earn over $325M!

Their pre-IPO offering is live at just $0.26/share – don’t miss it.

Invest Now

*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.

^{_{This section can contain product affiliate links. We may receive a commission if you make a purchase after clicking on one of these links.}}

In this letter, we analyze the iShares U.S. Technology ETF (IYW).

Ticker: IYW | Price: $165.84 | Market Cap: $20.8B | Average 10-Year Annual Return: ~21.2% (as of Jan 31, 2024)

What is it (short)?

The iShares U.S. Technology ETF (IYW) offers investors exposure to a broad range of U.S. technology companies, making it suitable for those seeking to invest in the tech sector's growth.

What is it (long)?

IYW aims to track the investment results of an index composed of U.S. equities in the technology sector. This includes companies involved in electronics, computer software and hardware, and information technology services. The fund provides targeted access to domestic technology stocks, encompassing industry leaders such as Apple, Microsoft, and NVIDIA. By investing in IYW, individuals can gain diversified exposure to the tech industry, benefiting from the sector's innovation and expansion. The ETF is passively managed, offering a cost-effective way to invest in the technology market.

Do your own research and if you would like to take our free course to learn how to invest into ETFs and Index Funds at Index Institution™ go here.

Discover Uruguay's 7% Lifetime Tax Opportunity

Uruguay presents a compelling opportunity for individuals seeking to reduce their tax burden while enjoying a high quality of life in a stable and welcoming environment.

Key Highlights:

• 11-Year Tax Holiday: New tax residents can benefit from an 11-year exemption on foreign-sourced income, allowing you to retain more of your earnings during this period.

• 7% Lifetime Tax Rate: After the initial tax holiday, a favorable 7% tax rate applies to foreign income, providing a sustainable, low-tax environment.

• Pathway to Citizenship: Uruguay offers a clear route to citizenship. Married couples can apply after three years of residency, while single individuals are eligible after five years.

Considerations:

• Residency Requirements: To qualify, you must establish tax residency, which typically involves residing in Uruguay for more than 183 days per year.

• Investment Options: Alternatively, obtaining tax residency can be achieved through significant investments in real estate or businesses within Uruguay.

Uruguay's combination of tax incentives, straightforward residency pathways, and a high standard of living make it an attractive destination for those looking to optimize their financial and personal well-being.

If you would like to explore legally paying less taxes and maximizing your freedom check out Global Optimizer™ or click here.

Financial concept to learn in this edition: Futures Contracts

What Is Operating Leverage and Why Is It Important for Investing?

Definition: Operating leverage measures how a company's fixed and variable costs affect its profitability. A company with high operating leverage has a larger proportion of fixed costs, meaning that increases in sales can lead to more significant increases in operating income.

Key Characteristics of Operating Leverage:

• Fixed Costs vs. Variable Costs: Fixed costs remain constant regardless of production volume (e.g., rent, salaries), while variable costs fluctuate with production levels (e.g., raw materials). Companies with high operating leverage have higher fixed costs relative to variable costs.

• Impact on Profitability: High operating leverage means that a small increase in sales can lead to a larger increase in operating income, as fixed costs are spread over more units. Conversely, a decrease in sales can significantly hurt profits.

Why Investors Should Care:

Understanding a company's operating leverage helps investors assess potential risks and rewards. Companies with high operating leverage can offer substantial profit growth during sales upswings but may face greater losses during downturns. This knowledge aids in making informed investment decisions based on economic conditions and industry trends.

Key Considerations for Investors:

• Industry Norms: Some industries, like manufacturing, typically have high operating leverage due to significant fixed assets, while service-oriented industries may have lower operating leverage.

• Break-Even Analysis: Evaluating the sales volume at which a company covers its fixed costs (break-even point) provides insight into its financial stability.

• Economic Sensitivity: Companies with high operating leverage are more sensitive to economic cycles, which can affect their earnings volatility.

In summary, operating leverage is a crucial concept for investors to understand, as it influences a company's profit potential and risk profile. By analyzing operating leverage, investors can better predict how changes in sales volumes may impact profitability and make strategic investment choices accordingly.

To learn more about Operating Leverage read more on Investopedia here or learn more from our full FREE investing course & community here.