How the Top 1% Are Investing in 2026 (Real Portfolio Data)

20:12Tad Fallows:And then there's the people who made$50 million by a whole variety of things. I worked in tech. I started a company doing X. I had a very successful banking or consulting career. for any of those people who fall in the other category, I think beyond a certain point, real estate becomes a relatively time consuming and challenging asset for them to manage where, you know, I've got two private rental properties. And you know, that's fine. They've given me very good returns. They're not that hard to manage. But if you told me, hey, you woke up tomorrow 10 times as much money, and now you're managing a portfolio of 20 properties, that's gonna be a giant pain, right?

20:44Tad Fallows:Every day, I'm gonna be dealing with a plumber, I'm gonna be dealing with a property manager, there's just only so much money you can put to work there unless you go into a truly passive, my money's in a REIT, my money's in some fund, and I don't do any of the hands-on management. But when I think when you get to that level, the ability for those funds, I think real estate can significantly outperform when you're doing it yourself, you're putting leverage yourself. But when you're just a passive investor in these funds, it's not necessarily that much more attractive than other private equity type asset classes.

21:11How much of that do you think is selection bias for long angle? Does long angle attract certain types of investors there versus real estate investors who are successful hang out on bicker pockets?

21:22Tad Fallows:That certainly could be the case. We do attract people who tend to have significant success earlier in their careers. So I'd say our median member, again, is probably $15 million and maybe 40 years old. My impression is that it's a little bit easier to hit those kinds of net worth 15 years into your career if you're doing something like being an entrepreneur or having a very successful career in tech or finance, I think real estate may be more of a kind of compounding game where you'd get that$15 million mark maybe a decade later in the career. So I think that may be part of it. It may be just the quality of the bigger pockets community has kept those people excited.

21:57I want to move to this page, which shows private company equity allocations rise as net worth increases. And more importantly, I'm looking at the investment real estate and the home equity. The investment real estate goes down between the$2 million to$10 million net worth and the$25 million net worth. Does that investment real estate include privately held rental properties and REITs? Is it all investment properties?

22:23Tad Fallows:Yes, it's all investment properties, but it tends to be very heavily in the privately held. People have some REIT holdings or some various kinds of real estate fund holdings, but it's much more people owning, whether it's a complex here or, you know, small multifamily, things like that. And does private company equity imply private equity or can I own a business and that's my private company equity? It's both of those. Or a third category may be that you work at a company and have stock in that privately held company that you work at. You think over the next 12 to 24 months, you're probably going to have SpaceX, OpenAI, Anthropic, you know, companies like that going public and they will create thousands and thousands of people with tens of millions of dollars.

23:09Tad Fallows:And so there's also, I think, a significant chunk of people who are in that situation. So it can be all three. I would say private equity in the traditional sense of I'm going to KKR and giving them a million dollars and they'll use it over five years to buy companies. Usually people put their money there once they have money. You don't usually become wealthy that way because there's very high initial buy-in. So you'll often become wealthy by starting a company or working at a company. And then later you will stay wealthy by private equity of diversifying it across these different asset classes here.

23:37Tad Fallows:It's a very interesting dynamic of these people who... My journey, as I mentioned, was that I started a company and then sold it. So one advantage I have is I had in full liquidity and then could allocate my portfolio to the best of my abilities. The person who is, let's say they are at SpaceX right now and SpaceX goes public, they're all of a sudden giving me this situation where on day two of that, maybe they've got$20 million and 18 million of it is in this single SpaceX stock. And then they'll have these questions of, okay, well, how do I diversify that holding? Even if you get past these mandatory SEC holding periods, if I sell it all today, then I'm going to have a massive tax bill.

24:14Tad Fallows:And so how do I think about how much should I take the tax hit and slowly, or should I diversify more slowly? Happy to get into that a little bit. But that's a dynamic that a lot of people cover is whether it's from making a smart bet on crypto or something else, people often end up much more concentrated than they expect when they first get wealth and think about different ways to diversify the concentration. Yeah, we're going to do a deep dive on how to think about the problem, good problem of having a very concentrated position in company stock, and how to bridge from that position to a target portfolio tax efficiently.

24:46But all those various considerations, it matters how big the pile is, it matters how big your net worth is, it matters what your income tax brackets are, it matters where the net investment income tax threshold is, or your tax bracket, depending on how big this pie is. Sometimes the number is so big that you have new problems being kind of crushed through all these tax bracket issues. But yeah, it's a fun problem to have and pretty interesting topic. On the topic of this net worth, how would you describe the conservatism or aggression of private asset valuation by your community? And what I mean by that is when I was CEO of BiggerPockets, I had my net worth over here and then I had BiggerPockets equity and I literally counted it as zero.

25:27It never even showed up in my net worth statement. It was clearly not worth zero. And I do that with many assets today in my position. My personal net worth statement reflects a very conservative interpretation of my net worth as a result. Is that common in the community? Or would you say that people are aggressive or real?

25:44Tad Fallows:I would say that's incredibly common. Most people who start a company basically value it at zero until the point where they actually get liquidity. And so their net worth may appear to just go up tenfold the day they they sell it. I think if you look at people who are investing in private companies or private equity, then you also have this question where if I made some seed stage investment in Anthropic, well, certainly that's worth a lot today. And I can look at their series E and put a valuation on it. But there were probably the first five years there where that was actually generating a lot of economic value, but I had no way to put a number on that.

26:15Tad Fallows:So I would say most people tend to just carry their investments at cost, at least until there is some meaningful third party, exogenous event that allows them to put a valuation on that. And then they might still discount it a bit for the fact that it's not totally liquid. But people who are working at a company, a starting company in general, will carry that zero pretty far into it. Again, it becomes unreasonable at a certain point. If you look at Cargill is still a private company 100 years later, and all the Cargill heirs are getting millions of dollars a year in distributions, clearly Cargill is worth something.

26:47Tad Fallows:But if you're talking about your random AI company out there, Probably the right thing to do is to carry it at zero because it could turn out to be great. But at this point, you still have a lottery ticket. So would you say that for some of these positions, especially those with more allocated to private company equity, that net worth is dramatically understated and that the rich are far richer than they appear in survey data or net worth statements? I think that is probably fair. I think we could argue about the degree to which it's understated, but the direction is certainly true. Now, what often happens for a lot of these people, if you are selling your company, you can basically do two things.

27:20Tad Fallows:One is what I did, I sold it to a strategic acquirer. So they said, okay, we own 100 % and you get a pile of cash. And it's a very clean transaction. If you're selling to a private equity acquirer, that is pretty rare. Usually they will say, okay, we'll buy 70 % of the company, but we want you to roll a third of your equity. So even though somebody is getting a lot of cash, they still have a significant amount of exposure to this company. And that's the reason the private equity firm does it is they want to make sure that the management team is still incentivized to continue to drive value there.

27:48Tad Fallows:And I think that's a significant amount of what you see in these private company equities. It becomes easier to value because there has been transactions. So I know it's worth something, but it will continue to be a big part of my balance sheet. And a lot of those people, to your point about understating it, I've met many members of the community who've gone through this path. And almost to a person, the money that they rolled into their private equity deal ended up being worth as much or more. That 30 % they rolled was worth more ultimately than the 70 % they got in cash. And I didn't believe this initially.

28:16Tad Fallows:Remember when I was selling my company, I'd have private equity firms pitching to me this to me and I thought they were just totally talking their book I discounted that but I've now seen it time and again and this is part of the reason probably that I You know scott gave you a little pushback on this idea of private equity being overpriced because when i've seen these people And they roll a million dollars in their p.e deal There's one thing these p firms are very good at and that is continuing to drive high returns and make good money And i've seen enough times to kind of have a little more conviction in their ability to do that So I do think that that is probably a level of factor, both in your saying of understating and then also in terms of this general divergence of, you know, wealthier people having higher returns than less wealthy people.

28:55Tad Fallows:There's probably a lot of factors in terms of, you know, efficiency, in terms of ability to stick through with hard times. But I do think exposure to some of these higher return asset classes is like private equity is probably a factor in that as well. I believe you for stuff bought 10, 20 years ago, but I'm more skeptical about how we're seeing all these private debt funds blowing up. If they're blowing up, guess what's happening to the equity side on that? These guys are all lending to private equity companies. So I think that that's where my skepticism is. I think there's a lot of private equity wealth that's rolled in the last 20 years.

29:30And I think that one of the challenges that's going to happen now is I think that the liquidity for that market has compressed a little bit. It's coming back, I think. But I think that folks are going to, if you have a loser, you don't mark it down until you absolutely have to. And when that happens, that's when, you know, at some point, those losers will be marked down and that will change the return profile for private equity, I think, in some capacity. But that's a whole different rabbit hole to dive down.

29:54Tad Fallows:The only thing I would say on that point there is I think that gets exactly to this idea of diversification. Like, I don't think that just adding private equity to your portfolio now makes you diversified. And in some ways, it's probably the least effective diversifier of the private markets. Because if you look at the name, stocks are called, quote, public equities, and then private equity or private equities. And they're very close cousins of each other, right? There are similar kinds of companies. In general, the private equity companies are a little smaller than the public companies. But in some cases, they're gigantic.

30:21Tad Fallows:They're not necessarily smaller. So I think they're actually relatively close cousins. As a little bit of an aside, but for your listeners, to my mind, the things that add maybe even more value in terms of being still giving you your double digit returns, but having much less correlation are things like litigation finance, for example. That is where you basically, if somebody, let's say they're generally B2B lawsuits. So one company is suing another company. The small company has been wronged, but they don't have the deep enough pockets to sue the larger company that's wronged them. You basically can fund their lawsuit and then you get a portion of the payouts.

30:55Tad Fallows:That has had absolutely phenomenal historical returns, probably absurdly good, like 30 % per year over a long period of time. as the asset class matures. I'm sure those returns will come down. They won't stay in the 30s. Maybe they'll come down to the teens. But your correlation to public equities is just completely different there. It's not based on the economy or the stock market going up and down, whether a company is going to win or lose a lawsuit. It's how good is the manager you're investing with at picking which lawsuits are valid. Another example might be oil and gas investing. This is something I've been very hot on for a long time.

31:26Tad Fallows:It's easy to say, okay, well, right now with the Iran war, those guys are minting money. And that is true. But the returns have been very strong, not always consistently strong. On average, they've been strong in these. But then they tend to have a bit of inverse correlation with the stock market, where if you think something like COVID was probably bad for everybody, although people all came back quickly. It's not totally abnormal, something like the current state with the Iran war, which is very bad for most companies, but it's great for the energy industry. That's kind of happened more than once.

31:53Tad Fallows:So I think there's a variety of these other asset classes that are not just private equity, which give you a little more diversification there. And you may not have these exact risks you're talking about. Okay, there's a sort of fundamental mispricing of that or in aggregate private equities or maybe gain stretch on valuation. Let's go back to the allocation by net worth. I asked you earlier if you thought that many of these high net worth individuals are conservative in valuing their current portfolios, especially private company equity and private equity investments that they've made. On the flip side of that, a common challenge, I think that happens at this level is going to be that your net worth is overstated because components of it are pre-tax or have not, you know, there's a large capital gain to be realized in some of these investments.

32:38So in that$2 to$10 million net worth range, I wouldn't be surprised if a big bucket of the stock or the public equity portfolio is in a pre-tax 401k or various components of that. I wouldn't be surprised if a lot of that is gains from early investments. And I wouldn't be surprised if a lot of that company equity, once it is marked to market, is pre-tax. And at this point, you have pretty substantial marginal tax bracket challenges, if you're in the$10 or$25 million net worth range, and you've got a several million dollar gain, that's 20 % marginal federal taxes. That's in Colorado, 4.4 % state tax.

33:15That can be much higher depending on what state you're in. And then you've also got net investment income tax on top of that. So you could bump it up to the high 20s approaching 30%.

33:23Tad Fallows:Well, in California, you're almost 40 % in California. You got 13.3 there. So certainly true. Do you think on the flip side of this, that a lot of these net worth positions are overstated by some of these folks because they're heavily pre-taxed positions? I don't think so. And my reason for that is if you have$50 million, you're not going to liquidate that portfolio probably ever. So if I have 50 million, maybe I put half a million into Nvidia 20 years ago, made a great bet. So now I've got, let's call it 50 million of Nvidia stock. Well, I'm actually probably making a lot of dividends as it is on Nvidia.

33:55Tad Fallows:To take a step back, as you know, there's two kinds of income. There's your earned income, and then there's your capital gains and your investment income. What I have seen in the community is there are a lot of ways to mitigate the tax impact of investment income or capital gains. There's very few legal and ethical ways to mitigate. People try and do it, and the IRS keeps catching them. People still think it's a good idea to try and mitigate their W-2 income. There's a few legal things and most of them are in the real estate world, but by and large, that's hard to mitigate. But if you look at these untaxed capital gains, I think you said you're going to do maybe a separate episode on that.

34:27Tad Fallows:So I don't want to steal all of the thunder there. But just as a few examples of the kind of things that you see people do, one is the classic buy, borrow, die portfolio. You've probably heard of this concept, which is say, okay, I bought this asset. Again, now I've got my 50 million of NVIDIA stock. If I need to spend$5 million dollars. Well, I'll just borrow five million dollars secured against this NVIDIA stock. And whenever I pass away, then my estate will get a free markup on the basis of that. They can sell as much as they want to. They can pay it off. And that gain is never realized in the NVIDIA stock.

34:57Tad Fallows:Other examples, you can make a donation to charity and you don't ever have to realize the gain when you donate it to charity. You certainly have lost the money. So that's not a quote tax strategy. But that's another example. And then there's things like direct indexing and tax loss harvesting or exchange funds. And so, you know, I'd say my general takeaway is there are quite a number of ways that people can reduce or mitigate that. There's also a bit of timing of when you take your gains of if you've got a$10 million of gains in your portfolio, and maybe you quit your job because you're financially independent.

35:28Tad Fallows:So next year you have no earned income. Well, you say, okay, maybe I'll sell enough that have a quarter million dollars of gains. So I'll use up my low tax brackets and I'll have relatively small tax hit on this. And then the next year, again, I'll use up small tax brackets. And then if I get a job again, I'll stop selling. So you can kind of manipulate the timing of those sales to reduce the tax burden. So it's certainly true if you wanted to turn it all into cash today, you'd have a problem. But I don't see most people turning most things into cash without following one of these sort of more creative strategies to go about it.

35:58Tad Fallows:And then you also get into, which I've ever talked about a bit on these sort of trust structuring and insurance kinds of strategies, which can also provide some real tax benefits at higher net worth levels. One hypothesis I'd have here is that for this demographic,$10 million to$25 million or more in net worth, this will be the lowest tax environment they're ever going to see for the rest of their lives. I think that's the bet you'd have to make if you're rational at this level of wealth. Would you say that many of the people in the community agree with that? And does that inform their tax strategy at all?

36:31Tad Fallows:I would say most people agree with that. We have a rule of no politics in our platform. We say there's not another place where we need to debate, you know, whether Donald Trump is a great or a terrible person, you know, that you can find whatever self-validating opinions you want on that online. So we try and keep that out of the community. So that probably mitigates some of these discussions about where our tax rate's going. But I think you're right. You know, if you just look at the kind of structural deficit we have, I don't really see how we could have another round of massive tax cuts. You know, nobody's going to cut the social safety net.

36:59Tad Fallows:So there's only one realistic direction in my mind, unless it's just inflation. But does it inform behavior? I don't think people are saying, hey, I'm going to go ahead and pull forward my tax bill today to reduce the risk. I'm going to have a bigger tax bill tomorrow. I think people just, you know, that's against human nature. Nobody likes seeing their tax bill today. You know, I could have said the same thing to you before George W. Bush came into office. That would have been a bad idea to cut taxes. And then he went and cut them a lot. And then Trump cut them a lot more beyond there. Well, I agree.

37:26Tad Fallows:It seems like they ought to go up. I'm not sure that history has shown us when that's going to happen. So we don't see that. You do see people, though, trying to be just say, okay, given the tax environment as it does exist today, what are the things that I can do to keep the portfolio I want, but kind of put it in a structure so that is tax efficient? I'll give you another example, which is private placement life insurance. I'll say I'm the first person to tell you that whole life insurance or that 99 % of permanent life insurance is a terrible deal. It's sort of pitched by these salesmen who confuse a whole bunch of things and have a lot of hand waving and you don't understand what's happening, but they're getting very high fees.

38:01Tad Fallows:I will say that private placement life insurance is a bit of an exception on this, where it's one where it tends to be for very high dollar values. But for things like private credit or multi-strat hedge funds that make 10 % or 12 % ordinary income each year, it can protect those from both capital gains and ordinary income. And you only have about 1 % a year fee drag on that. So I think there's some more complex strategies like that that people will employ. We've made it through net worth so far. What are some other interesting segments of this? Do you want to flip through and show off some of the data?

38:34Tad Fallows:Yeah, I mean, I think something else that's interesting is the flip side of people not being willing to take a lot of risk, as you might say, and not hold a lot of bonds, is they don't take a lot of risk on the borrowing side. The total aggregate amount of debt is much lower than you might expect. So 40 % of members don't owe any mortgage at all, either because a few of them just don't own a house, but then a full third of people own their house free and clear with no debt. And then even beyond that, if you look at things like borrowing against their portfolio, most people just don't take on nearly as much debt as they could.

39:07Tad Fallows:And if you look long-term returns, you say, well, maybe it would be profit maximizing to take on more leverage and have higher returns. But in practice, people seem to say, okay, I've got enough money. I don't need to take this sort of silly risk that could risk a total blow up. I'll invest my money on the more aggressive side in the spectrum in equities, but then I won't take out a big leverage position and risk having a margin call and being a forced seller in a bad environment. And frankly, I think that's a pretty smart move and one that I probably take more debt than most people on here because I've got a lot of real estate-backed debt, but most people being conservative on that front.

39:39Tad, has that changed in the last couple of years? Did you have studies before interest rates started rising?

39:43Tad Fallows:The biggest thing that's changed is if you looked during COVID, people were just much more bullish on buying real estate. I think it was a fairly simple analysis to say, look, you've got the government spending like a drunken sailor, but you can borrow money at two, two and a half percent, which is where most people actually locked in their mortgage. And so it's almost guaranteed that inflation is going to be higher than paying on this debt, and I can lock it in for 30 years fixed. And so I think at that point, people were very heavy on the real estate acquisition spree. Today, I think people are much less...

40:11Tad Fallows:They're not necessarily selling their real estate, but they're not putting fresh capital work there. They say it's a very different analysis. If I have to spend 4.5 % and I don't think inflation is going to exceed 4.5%, I can get better returns elsewhere. So that's really what we've seen is that... And I think that's probably a good takeaway to think about from this is you can have a pie chart in any given day of what the allocation looks like. But some of that is legacy of, as you were saying, with private equity, maybe you thought it was a better deal 10 years ago. People may still be holding those holdings they built up then.

40:38Tad Fallows:I think real estate, a lot of it is people are holding the real estate they bought then. But that doesn't mean that they're putting new dollars to work at the same ratios as they were historically? As a real estate agent, I know that a lot of my investor clients have significantly dropped off their acquisitions just because the numbers aren't making sense at a 6 % mortgage in my market. Yeah. And I think, you know, I don't need to explain to you, you've got the flip side is I think the seller is also being rational because the seller is saying, well, I'm locked in a 2.5 % mortgage. So I don't need to take a haircut just to make your economics work.

41:09Tad Fallows:And you don't need to pay up to make my economics work. And so, we can both be totally rational and look at the same deal the same way and both agree that there is no market clearing price. My local market here, that's the same thing that I'm seeing. I'm not selling. I moved to a new house. I didn't sell the old one because I could get much more money renting it out, but it's not like I'm going to buy three more rentals. I don't know if I'm common or unusual as a member of this cohort here, but I find it to be very advantageous to reduce all fixed costs in my life as much as I possibly can because that allows me to realize very little income.

41:41So having no mortgage means that I can live the lifestyle of a neighbor that, you know, around here that might have a very pretty expensive mortgage. I got a nice house. That's a huge, huge advantage for me. And because I would, or I will be in a high income tax bracket most years, not the highest, but in a high tax bracket, that's a pretty big advantage for me. And so not having a car payment, same deal, right? Very little income. You have to realize if you drive that thing for the next seven to 10 years, then there's lower insurance because I can have a high deductible because I've got a strong cash position and those types of things.

42:13Do you find that attention to not necessarily discretionary spending, maybe I'll go out to a nice restaurant, maybe I'll go on a nice vacation, but is there a shared obsession in this cohort with reducing those fixed expenses for that reason?

42:27Tad Fallows:I would say that there is, on the specific thing of fixed expenses, like, should I have a mortgage or should I not have a mortgage? I think that really just comes down to personal preference. Some people will say, I think I can make 10 % investing that money in stocks. So if I can borrow it from the bank at 3%, there's no reason to pay down my 3 % mortgage and sacrifice the 10 % returns. Other people, and a lot of them take the exact philosophy you're talking about, of I care about my cash flow. I don't care about the theoretical 10 % gain that may or may not materialize. I may or may not crystallize.

42:58Tad Fallows:I just want to have my cash flow be more attractive. We see that both ways. What I do think is very consistent is this idea of you could expect that somebody with$25 million is not really going to care about the pennies. they're going to be indifferent to costs on a variety of functions, but it's much more exactly what you talk about. They're willing to spend a lot of money for something they really want, but they are going to be thoughtful about their spending for something that they think should be a commodity. So I think at the beginning, you probably let your cards show in your perspective of financial advisors.

43:28Tad Fallows:And I think that's very common in our community. If somebody's saying, hey, 75 basis points, three quarters of a percent, that may sound like a small headline number, but if you've got$10 million, that's really$75 ,000 a year. That's a ton of money and that's after tax, that's the same as earning$150 ,000 a year, that the reason that probably three quarters of members don't have an RIA is some combination of this concern about conflicts of interest, and then just frankly, not wanting to spend that much money on it. And I think the same thing could go across a lot of different spending categories.

43:55Tad Fallows:So I think even though people are wealthy, that doesn't mean that they ignore the costs. But the flip side is if there is some fancy, you know, there's some trip they want to go on, there's some restaurant they want to eat at, they're perfectly comfortable writing the check, provided it's a place that they actually think is fair value for money. Tad, not all of our listeners have a net worth of$25 million. I don't think Scott or I have a net worth of... I don't think we have a net worth of$25 million combined. So I'm not throwing you listeners under the bus. But how can they read this report and take action that would work for them?

44:31How could they apply this to themselves?

44:33Tad Fallows:I think almost everything in here applies. you know, partly because a lot of these things don't have as high of minimums as you might think. Like if you listen to this and say, okay, there's a certain kind of, you know, this litigation finance sounds interesting. There's ways, and actually we do a lot of this in the community of trying to kind of get these economies of scale. Because again, our average member doesn't have 25 million either. As I said, the median person, maybe, you know, 10 or 15 million. And so they might say, well, litigation finance sounds interesting, but I'm not going to put 2 million out of my 10 into this one, you know, litigation finance deal that I think is interesting, but I don't know if I have that much conviction.

45:06Tad Fallows:We do syndicate investments there. Well, that'll bring the minimum down to maybe$100 ,000. So they say, okay, well, now I need to just put 1 % of my net worth. I can actually try it out, see how I like it and that this goes well. I can scale it up from there. So even the bare minimums, I think, tend to be... A lot of this, I'd say, is probably less relevant for somebody maybe with$1 or$2 million. But I think when you get to a point where you're talking$5 million or more, it's really just scaling everything by percentage basis. And from an absolute perspective, I think it's almost all relevant.

45:35Tad Fallows:And even things that you might not think are that relevant, like estate tax being a great example, where the limit on exclusions from estate tax today is$15 million for an individual or$30 million for a couple. So you might say, Mindy, I don't know how much money you have, but let's say you're 40 years old and you have$10 million. You're actually almost certain to break that$30 million threshold by the time you pass away. And so these things become relevant. Again, you sort of reach a certain escape velocity if your passive income and your appreciation is exceeding your spending. And then the kind of people who made a lot of money often tend to keep working even if they don't have to.

46:11Tad Fallows:And so the net worth tends to go up quickly. So I do think it's actually quite relevant. And these same ideas about like, hey, how much debt should I take on? Should I really be borrowing against my stocks to try and juice a couple extra points? Or should I not take that risk so that the next time stocks fall 50%, I'm not risking a margin call? all that is equally applicable, sort of no matter how much money you have. I love that you think I'm 40. Thank you, Tad. You're now my favorite person. Is there a way that a non-member can read this report? Yes, it is totally freely available on our website.

46:41Tad Fallows:You just go to longangle.com and we've got this, we've got a number of other reports. We also have an income and spending one, does a similar breakdown and people, okay, how much their money do they spend on travel? How much do they save? What do they spend on insurance, et cetera? We also have one on professional service providers of in terms of how much are people spending on their lawyer and their gardener and their nanny, et cetera, and how happy are they? We try and publish as much as we can of the data from our community to everybody publicly. Well, Tad, thank you so much for coming on back on the Bigger Pockets Money podcast.

47:08We'll have lots more to talk about, I think, in future episodes as well, because we do want to cover this. We feel like, you know, the goal of Bigger Pockets Money is to help people get to like kind of this two and a half million dollar net worth target goals in the community often range from one to five million. But as a byproduct of getting to that point, many folks will happen to get much wealthier than that. And so we actually finally have a pretty good overlap with the long angle community among our listeners. So that's been a place where several members have joined up and had great things to say.

47:36So thanks for coming back on and sharing that data with us. And I think it's aspirational for a lot of folks. Hopefully, they listen to BiggerPocketsMoney for long enough, you'll have this problem on one day of needing to figure out how to invest like the wealthy because you have a portfolio that reflects a lot of wealth.

47:50Tad Fallows:Yeah, no, thank you for having me. I think we actually have almost 100 members who are overlap, you know, both BiggerPockets members and have joined on Long End Community. And one other thing I would mention just didn't come up here, but our community is there's no membership fees. So I think people may say, oh, this seems like something's going to cost 10 grand a year, but we decided not to charge anything for membership. So if people have heard this and are interested in being part of the community, you can click apply now and that will set you up basically for an interview or a live discussion with a current member who will just tell you more about it.

48:19Tad Fallows:You can see if it seems interesting to you and you can tell them more about yourself. Awesome. Yeah. I am a member and I love this community. It's so refreshing to be able to speak to people on a higher level about problems that I am having that maybe somebody isn't having without the same level of wealth. And that seems like such a snotty thing to say. I don't know how to say it any better. So I'm just going to leave that in. Tad, thank you so much for joining us. It was a lot of fun. And we will talk to you soon. Well, thanks so much for having me today, Mindy and Scott. All right, Scott. That was Tad Fallows from Long Angle.

48:50And that was quite the interesting look into how high net worth individuals invest. What did you think of this report, Scott? I thought it was an acute take. Sorry, I couldn't resist on the patterns and behaviors and actual data of the top 1%. So I think there's probably a little bit of confirmation bias in the survey because the community probably attracts people of certain dispositions there. certainly younger people in the net worth range, but I still think it's a very fascinating view into how wealth is managed by the ultra wealthy in America, especially those in the younger cohorts, 30s to 50s.

49:23Yeah, I was particularly surprised at the bonds because you keep hearing 60-40 bonds, 60-40 bonds, and that's not represented in this group. Although on the other hand, bonds are to protect your portfolio. So if your portfolio is so much bigger than you will ever need, it doesn't really need that much protection. So I guess it makes sense. It's just weird to see like people who have high net worth, in my opinion, are super knowledgeable about financial everything. So clearly they should be doing everything right. And the reality is, you know, like Tad said, some people had a rather modest net worth and all of a sudden they have a high net worth.

50:00So they're trying to figure this out, which is what Long Angle is all about. It's a space where you can go to ask people questions who are in a similar situation. If our listeners want to read this research, this report is really, really interesting. You can find it at longangle.com. You don't need to have a membership to read this report. You just go to the resources tab and look at all research and studies. This is available as well as several other studies that they have done that are really, really fascinating all around money. Absolutely. Mindy, should we get out of here? Yes, Scott, we should.

50:33But I want to remind our audience that if they want more financial independence information, they can head over to our website, biggerpocketsmoney.com. You can sign up for our weekly newsletter. You can also find free resources, calculators and templates all designed to help you accelerate your FI journey. And one of the new things that's coming out on the BiggerPocketsMoney website is ask a question. Go to that community tab at biggerpocketsmoney.com and fill out a question for Mindy and I. And we'll try to answer it to the best of our ability, free only for entertainment purposes only, of course.

51:06As a note, Mindy and I have answered questions from listeners for many years. We're going to continue to do that. We just hope to do more of that on the BiggerPocketsMoney website so that other people can benefit from that experience. And, of course, we will anonymize that as a default unless you prefer to have your real name or are willing to have your real name and numbers shown on the website there. So please feel free to ask us questions through the ask a question format on the website on a go forward basis. And we'll look forward to hearing from you. All right, Scott. Now that wraps up this episode of the BiggerPocketsMoney podcast.

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