How To Keep & Grow Your Money #28

Over the last seven elections, this asset class has outpaced the S&P 500

Instead of trying to predict which party will win, and where to invest afterwards, why not invest in an ‘election-proof’ alternative asset? The sector is currently in a softer cycle, but over the last seven elections (1995-2023) blue-chip contemporary art has outpaced the S&P 500 by 64% even despite the recent dip, regardless of the victors, and we have conviction it will rebound to these levels long-term.

Now, thanks to Masterworks’ art investing platform, you can easily diversify into this asset class without needing millions or art expertise, alongside 65,000+ other art investors. From their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5% (among assets held longer than one year), even despite a recent dip in the art market.*

It's easy to get started at Masterworks, and our readers can SKIP THE WAITLIST HERE.

Past performance not indicative of future returns. Investing Involves Risk. See Important Disclosures at masterworks.com/cd.

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In this letter, we analyze the SPDR Portfolio S&P 500 Growth ETF (SPYG).

Ticker: SPYG | Price: $89.59 | Gross Expense Ratio: 0.04% | Average Annual Return (10-Year): 15.69% (as of January 31, 2025)

What is it (short)?

The SPDR Portfolio S&P 500 Growth ETF (SPYG) offers investors exposure to the growth-oriented companies within the S&P 500 Index, focusing on firms expected to experience above-average earnings and revenue growth.

What is it (long)?

SPYG seeks to replicate the performance of the S&P 500 Growth Index, which includes large-cap U.S. companies exhibiting strong growth characteristics based on sales growth, earnings change to price ratio, and momentum. The fund comprises 208 holdings, with top positions in companies like NVIDIA Corp, Apple Inc., and Microsoft Corp. With a low gross expense ratio of 0.04%, SPYG provides a cost-effective means for investors to gain diversified exposure to the growth segment of the U.S. equity market.

Our thoughts:

SPYG is an attractive option for investors seeking to capitalize on the potential of large-cap growth companies in the U.S. Its diversified portfolio reduces the risk associated with individual stock selection, while the low expense ratio enhances net returns. However, investors should be mindful of the inherent volatility associated with growth stocks and ensure that such an investment aligns with their risk tolerance and long-term financial goals.

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.

U.S. Drops in Corruption Index—What It Means for You

The United States has fallen four places in the global Corruption Perceptions Index (CPI), now ranking lower than Portugal and South Korea. This marks its lowest score ever, raising concerns about governance, accountability, and economic stability.

What’s happening?

Transparency International’s CPI ranks 180 countries on a scale from 0 (highly corrupt) to 100 (very clean). This year, the U.S. scored 65, a drop from 69 last year. While a four-point decrease may seem minor, it reflects a significant decline in global trust.

The primary reason? The rollback of key anti-corruption protections, particularly a 50-year-old anti-bribery law that prevented U.S. companies from engaging in corrupt practices abroad.

This decision, aimed at easing business operations, has instead weakened corporate accountability and signaled a shift away from strict enforcement.

Why it matters:

Corruption isn’t just about business—it has widespread effects on democracy, human rights, and economic freedom. When institutions lose credibility, the risk of financial instability rises, leading to weaker investor confidence and long-term economic consequences.

Countries that prioritize strong anti-corruption measures attract higher levels of investment and maintain stronger political stability, while those that don’t risk increased inequality, reduced economic growth, and declining public trust.

What you can do:

With rising corruption and uncertainty, it’s more important than ever to take control of your financial future. From asset protection to tax planning, ensuring your wealth remains secure is key in a shifting economic landscape.

If you're concerned about how these trends may impact your investments and personal security, we can help you explore solutions to safeguard your future.

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: 183-Day Rule

What Is the 183-Day Rule and Why Is It Important for Investing?

Definition: The 183-day rule is a criterion used by many countries to determine an individual's tax residency status. Generally, if a person spends 183 days or more in a country during a tax year, they are considered a tax resident of that country and are subject to its tax laws.

Key Aspects of the 183-Day Rule:

• Global Application: Many countries, including Canada, the United Kingdom, and Australia, utilize the 183-day threshold to establish tax residency. This means spending more than half the year in these nations could render you liable for local taxes.

• U.S. Specifics: The United States employs a "substantial presence test" to determine tax residency. This test considers:

  • 31 days of physical presence in the current year, and

  • 183 days over a three-year period, calculated as:

    • All days present in the current year

    • One-third of the days in the previous year

    • One-sixth of the days in the year before that

Why Investors Should Care:

Understanding the 183-day rule is crucial for investors, especially those with international interests or who travel frequently. Establishing tax residency in a country can have significant implications, including:

• Tax Obligations: Being deemed a tax resident may subject you to income tax on worldwide earnings in that jurisdiction.

• Double Taxation Risks: Without proper planning, you might face taxation on the same income in multiple countries.

• Tax Benefits: Some countries offer favorable tax treatments or exemptions for residents, which could be advantageous depending on your financial situation.

Key Considerations for Investors:

• Track Your Days: Maintain accurate records of your physical presence in various countries to manage and anticipate tax liabilities.

• Understand Local Laws: Each country has specific rules and exceptions regarding tax residency. For instance, some nations may have tax treaties that override the 183-day rule.

• Consult Tax Professionals: Given the complexity and potential financial impact, it's advisable to seek guidance from tax advisors familiar with international taxation.

In summary, the 183-day rule plays a pivotal role in determining tax residency, affecting how and where your income is taxed. For investors with cross-border activities, a thorough understanding of this rule is essential to optimize tax outcomes and ensure compliance with global tax obligations.

To learn more about the 183-Day Rule read more on Investopedia here or learn more from our full FREE investing course & community here.