financial

Crude oil, natural gas, and chemicals

Reviewed by Charles Potters
Fact checked by Michael Rosenston

Exxon Mobil Corp. (XOM), one of the world’s largest oil and gas companies, traces its origins to an oil-refining business started by John D. Rockefeller, Maurice B. Clark, and Samuel Andrews in 1863 in Cleveland, Ohio. The business first incorporated as the Standard Oil Co. in Ohio in 1870, and by 1880 had grown into an oil empire controlling between 90% and 95% of all oil produced in the U.S. Despite a court order to dissolve in 1892, the company, which had been combined into a trust, maintained its power and operations. The trust shifted its headquarters to New York City and later incorporated as a holding company in New Jersey in 1899. But in 1911, the U.S. government ordered the company to divest its major holdings. One of those holdings was the Standard Oil Company of New York, which eventually became Mobil Oil Corporation in 1966. Another was the Standard Oil Company of New Jersey, which was renamed Exxon Corporation in 1972. The two companies merged in 1999 to become Exxon Mobil Corporation. Today, Exxon Mobil is the world’s second-largest public energy company with a market capitalization of over $466 billion as of May 18, 2025. In 2023, Exxon Mobil generated over $344 billion of revenue and profits of over $36 billion. Saudi Aramco, which went public in December of 2019, is the world’s largest energy company.

Exxon Mobil’s main business operations consist of the exploration for, and production of, crude oil and natural gas; manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals, and a wide variety of specialty products; and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen, lower-emission fuels, and lithium.

Exxon Mobil no longer controls the same market share as its predecessor in the late 19th century, but it still commands an overwhelming U.S. share of sales in the combined upstream, downstream, chemical, and other segments of the oil and gas market, according to CSI Market.

While Exxon Mobil has grown primarily internally, it’s sped up its growth and broadened its revenue base through a number of acquisitions over the past two decades. Some of these are oil deals that add to its core franchise. Other acquisitions extend Exxon Mobil’s interests in shale oil and gas properties in the Permian Basin and Canada. Other takeovers have made Exxon Mobil a major producer of chemical compounds used to make consumer products such as clothing, computers, snowboards, and tennis racquets.

We look at five of these acquisitions in more detail below. A special note that Exxon Mobil does not disclose the current annual revenue or profit contributed by these properties.

XTO Energy Inc.

• Type of Business: Natural Gas and Oil Company
• Acquisition Price: $41 billion (stock and debt transaction)
• Acquisition Date: December 14, 2009 (announced)

XTO Energy was first established as the Cross Timbers Oil Company in 1986. Its shares were traded under the ticker symbol “XTO” after the company went public in 1993 and before officially changing its name to XTO Energy in 2001. The company continued to expand and had become the largest producer of natural gas in the U.S. by 2009. In that same year, Exxon Mobil announced the purchase of XTO Energy for $41 billion, including $10 billion of XTO’s debt. Today, the company has operations throughout the U.S., Western Canada, and Argentina. The acquisition demonstrates a big push by Exxon Mobil into the natural gas sector, especially shale.

InterOil Corp.

• Type of Business: Oil and Gas Company
• Acquisition Price: Over $2.5 billion
• Acquisition Date: February 22, 2017 (completed)

InterOil is an oil and gas company founded in 1997 that is focused primarily on Papua New Guinea with its main offices in that nation’s capital Port Moresby as well as Singapore. Included among the company’s assets is one of Asia’s largest undeveloped gas fields, Elk-Antelope. Exxon Mobil announced it would acquire the company in mid-2016 and completed the transaction in early 2017. The deal bolsters the company’s position in liquified natural gas (LNG).

BOPCO

• Type of Business: Oil and Energy Company
• Acquisition Price: $6.6 billion
• Acquisition Date: January 17, 2017

BOPCO was owned by the wealthy Bass family, which inherited its initial fortune from its uncle, oil tycoon Sid Richardson. Richardson amassed a fortune over his lifetime and upon his death in 1959, left $100 million to his nephew Perry Bass and his sons. The Bass brothers built upon that fortune, mostly through oil. In 2017, Exxon Mobil purchased companies owned by the family, including BOPCO. The upfront cost was $5.6 billion with additional contingent cash payments worth a total of $1 billion to be paid between 2020 and 2032. The acquisition came with 250,000 acres of leasehold in the Permian Basin, which augments Exxon Mobil’s operations in that region known for shale deposits.

Celtic Exploration Ltd.

• Type of Business: Oil and Gas Exploration Company
• Acquisition Price: $2.52 billion
• Acquisition Date: February 26, 2013

Celtic Exploration, the oil and gas exploration and development company headquartered in the Canadian province of Alberta, was founded in 2002. The company’s focus since its inception has been on acquiring land in Canada’s shale regions. Celtic Exploration has oil and gas assets in the Montney shale gas region of British Columbia as well as in Alberta’s Duvernay shale region. Exxon Mobil announced that it agreed to acquire the company in 2012 and completed the transaction in early 2013. The deal demonstrates Exxon Mobil’s continued push into shale oil and gas following its acquisition of XTO.

Jurong Aromatics Corp.

• Type of Business: Aromatic Chemical Producer
• Acquisition Price: Undisclosed
• Acquisition Date: August 27, 2017

Jurong Aromatics, headquartered in Singapore and founded in 2005, is a manufacturer of aromatics. Aromatics are a class of chemical compounds, including benzene, toluene, and xylene, that are used in the production of many consumer products from clothing and computers to snowboards and tennis racquets. Exxon Mobil did not disclose what it paid for Jurong, but news reports said it paid as much as $1.7 billion to beat out a number of other bidders. The acquisition will serve to bolster the company’s petrochemical and refining business.

Exxon Mobil Diversity & Inclusiveness Transparency

As part of our effort to improve the awareness of the importance of diversity in companies, we have highlighted the transparency of Exxon Mobil’s commitment to diversity, inclusiveness, and social responsibility. The below chart illustrates how Exxon Mobil reports the diversity of its management and workforce. This shows if Exxon Mobil discloses data about the diversity of its board of directors, C-Suite, general management, and employees overall, across a variety of markers. We have indicated that transparency with a ✔.

Exxon Mobil Diversity & Inclusiveness Reporting
	Race	Gender	Ability	Veteran Status	Sexual Orientation
Board of Directors
C-Suite
General Management	✔ (U.S. Only)	✔
Employees

Reviewed by Toby Walters
Fact checked by Amanda Jackson

The highest and lowest unemployment rates in the world vary dramatically, even among the world’s largest economies. And low unemployment does not necessarily mean a wealthy nation. Read on to discover the highest and lowest unemployment rates in the world, as well as how they compare to the largest economies.

Key Takeaways

• Unemployment typically measures individuals in the labor force, meaning those who are not working but are actively seeking work.
• The countries with the lowest unemployment rates are Qatar, Cambodia, and Niger.
• A low unemployment rate does not mean a nation’s citizens are well-off; the standard of living is determined by GDP per capita.
• The countries with the highest unemployment rates include Eswatini, South Africa, and Djibouti.

Unemployment Rates

Below are the countries with the highest and lowest unemployment rates, in addition to the unemployment rates of the world’s largest economies (ranked by GDP), according to the most recently available data from the World Bank.

Highest Unemployment Rates

The world’s five highest unemployment rates at the end of 2024 (latest information) were in Africa and occupied Palestine.

• Eswatini: 34.4%
• South Africa: 34.4%
• Djibouti: 25.9%
• West Bank and Gaza: 24.4%
• Botswana: 23.1%

Eswatini suffers from extreme poverty and the world’s highest HIV/AIDS prevalence rate, according to the CIA. HIV/AIDS tends to cause a substantial decline in productivity as households lose human capital to the disease. The GDP growth rate for 2024 was 3.65%, with GDP per capita at about $4,421.

South Africa had one of the highest unemployment rates in the world in 2023. It’s also the second-richest country in this grouping as measured by GDP per capita. The World Bank estimated its GDP per capita to be $6,332 at the end of 2024, with GDP growth of 0.58%.

Djibouti benefits from its location on the Red Sea, making it a bridge between Africa and the Middle East. Its economy is primarily driven by its port complex, which is one of the most advanced in the world. Its economy slowed in 2022 but rebounded significantly in 2023, with a GDP growth rate of 7.37% in 2023 and 6.51% in 2024.

The Palestinian territories of the West Bank and Gaza face an unsustainable situation due to a war with Israel. GDP growth in 2024 was estimated at -82% in Gaza, and -19% in the West Bank. However, the Palestinian Central Bureau of Statistics estimates that the growth rate will climb slightly (0.6%) through 2025 if the war continues, and increase significantly by 16.9% if the war ends.

Botswana is located in Southern Africa and benefits from diamond wealth, strong institutions, a small population, and smart economic management. It was one of the richest countries in this category as measured by GDP per capita, which was $7,117.10 in 2024.

Important

Part-time workers are counted as employed, and these figures don’t count people who give up looking for work for an extended period of time.

Lowest Unemployment Rates

Below are the ten countries with the lowest unemployment rates at the end of 2024:

• Qatar: 0.1%
• Cambodia: 0.3%
• Niger: 0.4%
• Thailand: 0.7%
• Burundi: 0.9%
• Chad: 1.1%
• Bahrain: 1.1%
• Lao PDR: 1.2%
• Vietnam: 1.4%
• Moldova: 1.4%

The above countries have stunning unemployment rates. All bested the U.S. by a considerable margin at the end of 2024.

Unemployment Rates for the World’s Largest Economies

The unemployment rates for the top 10 largest economies by GDP were predictably low at the end of 2023, with some outliers such as Brazil, France, and Italy.

• United States: 4.1%
• China: 4.6%
• Germany: 3.4%
• Japan: 2.6%
• India: 4.2%
• United Kingdom: 4.1%
• France: 7.4%
• Italy: 6.8%
• Brazil: 7.6%
• Canada: 6.5%

$30.51 Trillion

U.S. GDP as of May 2025.

Unemployment Rates and Economic Strength

Having a low unemployment rate does not necessarily mean a country’s economy is strong. For instance, in 2024, according to the World Bank and the International Monetary Fund, Niger had only 0.4% unemployment and a GDP per capita of $751.04. In 2024, Burundi had 0.9% unemployment and a GDP per capita of $489.94.

These countries have low unemployment figures in large part because their economies rely heavily on agriculture, which is labor-intensive but seasonal. Remember that the underemployed are still counted in employment figures. Even Laos, with a relatively healthy GDP per capita of $2,100 in 2024, still had an unemployment rate of 1.2%, with many in its workforce transitioning to agriculture from services.

Unemployment Parallel With a Rich Economy

Of course, it’s possible to have both low unemployment and a rich economy. This combination is seen in Qatar. According to the World Bank’s latest information, the GDP per capita in Qatar was $71,650 in 2024 (with an unemployment rate of 0.1%).

That wealth helps its standing in the low unemployment listed above, as a country’s unemployment rate only factors in those actively looking for work. The working-age child of rich parents may feel less pressure to earn money and be more inclined to spend it.

Qatar’s economy is driven by oil and natural gas, hence its extreme wealth. However, it’s been making a sustained push to diversify into technology, marketing, construction, restaurants, and hotels.

What Is the Global Unemployment Rate?

According to the World Bank, the global unemployment rate was 5% in 2023, an improvement from 4.9% in 2024.

What Is Not Included in the U.S. Unemployment Rate?

The unemployment rate only takes into consideration the labor force. The labor force consists of those individuals who are currently working and those who are not working but who are looking for work. If an individual has not been looking for work in the previous four weeks, they are not considered part of the labor force and do not factor into the unemployment rate.

What Is the U.S. Unemployment Rate?

The unemployment rate in the U.S. as of Apr 2025 was 4.2%. This was the same as the previous month, but an increase from January and February.

The Bottom Line

The global unemployment rate is moderate, but the world still faces challenges that include inflation, ongoing global supply chain problems, and instability as policy shifts test the trade system. Globally, growth is expected to be underwhelming as tensions between trading partners are slowly unwound and local economies recover from tariff shocks and uncertainty.

Reviewed by Julius Mansa
Fact checked by Michael Rosenston

With its massive population and bustling economy, India is an engine of growth. As the Indian economy has grown, so has the value of its public companies.

In 2024, India’s stock market capitalization surpassed Hong Kong’s for the first time, becoming the fourth-largest market for public equities in the world. According to data compiled by Bloomberg, on Jan. 22, 2024, the value of shares listed on Indian exchanges reached $4.33 trillion, compared to $4.29 trillion for Hong Kong.

Key Takeaways

• India has two primary stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
• The BSE is India’s oldest stock exchange.
• India’s exchanges are regulated by the Securities Exchange Board of India (SEBI).
• The two prominent Indian market indexes are Sensex and Nifty.

The BSE and NSE

Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE was established in 1875. The NSE was founded in 1992 and started trading in 1994. Both exchanges follow the same trading mechanism, trading hours, and settlement process.

As of the start of 2025, the BSE had 5,595 listed firms, whereas the rival NSE had 2,266 as of Jan. 30, 2024. Almost all the significant firms of India are listed on both exchanges. The BSE is the older stock market, and the NSE is the largest in volume.

Trading and Settlement

Trading on both exchanges is through an open electronic limit order book where order matching is done by the trading computer. There are no market makers, and the entire process is order-driven by investors matched with the best limit orders. Buyers and sellers remain anonymous.

An order-driven market brings more transparency by displaying all buy and sell orders in the trading system. Institutional investors can use the direct market access (DMA) option, using trading terminals provided by brokers for placing orders directly into the stock market trading system.

Equity spot markets follow a T+1 rolling settlement, with any trade on Monday getting settled by Tuesday. All trading is conducted between 9:15 a.m. and 3:30 p.m., Indian Standard Time (+ 5.5 hours GMT), Monday through Friday. Delivery of shares must be made in dematerialized form. Each exchange has its own clearing house, which assumes all settlement risk by serving as a central counterparty.

Market Indexes

The two prominent Indian market indexes are Sensex and Nifty. Sensex is the oldest market index for equities; it includes shares of 30 firms listed on the BSE. It was created in 1986 and provides time series data from 1979 as the base year.

The Standard and Poor’s CNX Nifty includes 50 shares listed on the NSE. It was created in 1996.

Market Regulation

The development, regulation, and supervision of India’s stock market rests with the Securities and Exchange Board of India (SEBI), formed in 1992 as an independent authority. Since then, SEBI has consistently tried to lay down market rules in line with the best market practices. It enjoys vast powers of imposing penalties on market participants in case of a breach.

Investing in India’s Markets

India permitted outside investments in the 1990s. Foreign investments are classified into two categories: foreign direct investment (FDI) and foreign portfolio investment (FPI). All investments in which an investor takes part in the day-to-day management and operations of the company are treated as FDI, whereas investments in shares without any control over management and operations are treated as FPI.

To make portfolio investments in India, one must be a foreign institutional investor (FII) or one of the sub-accounts of one of the registered FIIs. Both registrations are granted by the market regulator, SEBI. Foreign institutional investors mainly consist of mutual funds, pension funds, endowments, sovereign wealth funds, insurance companies, banks, and asset management companies. FIIs can also invest in unlisted securities outside stock exchanges, subject to the approval of the price by the Reserve Bank of India.

Important

India is projected to surpass Japan as the world’s fourth-largest economy sometime in 2025, with an estimated GDP of $4.19 trillion.

Restrictions and Investment Ceilings

The government of India prescribes the FDI limit, and different ceilings have been prescribed for different sectors. The maximum limit for portfolio investment in a particular listed firm is decided by the FDI limit prescribed for the sector to which the firm belongs. However, there are two additional restrictions on portfolio investment.

According to SEBI, an FII can invest up to 10% of the equity of any one company, subject to the 24% limit on overall investments. The 24% limit may be raised to 30% for individual companies that have received shareholder approval to do so. FIIs are allowed to invest 100% of their portfolios in debt securities.

Investments for Foreign Entities

Foreign entities and individuals can gain exposure to Indian stocks through institutional investors. Investments can be made through some of the offshore instruments, like participatory notes (PNs), depositary receipts, such as American depositary receipts (ADRs) and global depositary receipts (GDRs), exchange-traded funds (ETFs), and exchange-traded notes (ETNs).

Participatory notes representing underlying Indian stocks can be issued offshore by FIIs, only to regulated entities, but small investors can invest in American depositary receipts representing the underlying stocks of some of the well-known Indian firms, listed on the New York Stock Exchange and Nasdaq. ADRs are denominated in dollars and subject to the regulations of the U.S. Securities and Exchange Commission (SEC).

Retail investors can invest in ETFs and ETNs, based on Indian stocks. India-focused ETFs mostly make investments in indexes made up of Indian stocks. Most of the equities included in the index are listed on the NYSE and Nasdaq. Two ETFs based on Indian stocks include the iShares MSCI India ETF (INDA) and the Wisdom-Tree India Earnings Fund (EPI).

What Is the Main Stock Market in India?

The main stock market in India is the Bombay Stock Exchange (BSE) which has around 5,500 listed firms. The second-largest exchange is the National Stock Exchange, with over 2,200 listed firms, many of them cross-listed on the BSE.

What Is the Largest Company on the Indian Stock Market?

The largest company on the Bombay Stock Exchange (BSE) is Reliance Industries with a market cap of over $230 billion as of May 18, 2025.

Can Americans Invest in the Indian Stock Market?

Yes, Americans can invest in the Indian stock market. There are a few ways of doing so, such as investing in exchange-traded funds (ETFs) or purchasing American depository receipts (ADRs) of the company.

The Bottom Line

Most of the trading in the Indian stock market takes place in the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). As of 2024, India ranked as the fourth-largest market in the world. The two dominant Indian market indexes are Sensex and Nifty.

Fact checked by Vikki Velasquez

Whether you were unable to save as much as you hoped to when you were younger or had to dip into your retirement accounts early, leaving the workforce with limited savings can make fully retiring difficult.

According to a 2024 BlackRock survey, less than half (47%) of retirement savers said they felt they were on track to retire with the lifestyle they wanted. Three-fifths said they were worried they would outlive their retirement funds.

Retiring with a smaller nest egg can be challenging, but with strategic planning and informed decisions, it’s possible to transition into retirement successfully.

Key Takeaways

• It’s possible to retire with limited savings, but you may need to draft a financial plan and explore alternative income sources like part-time work or home equity.
• Delaying Social Security benefits can significantly boost retirement income, but it may only make sense if you have other funds to bridge the gap.
• There’s no one-size-fits-all approach to retirement, so decisions like how much to save, whether to relocate or downsize, and when to claim Social Security should be based on your finances and personal circumstances.

Take Stock of Your Finances

Before you decide to retire, it’s essential to get an idea of your finances. You’ll want to take stock of how much you have saved up across different accounts, whether that’s your bank accounts, brokerage accounts, 401(k)s, or individual retirement accounts (IRAs).

“‘Do I have enough?’ This is probably the question I get asked the most often,” said MaryAnne Gucciardi, a CFP and founder of Wealthmind Financial Planning. “For clients, I start with a model [that includes] what they’re spending, what’s coming in, and what they really want to do.”

Ultimately, how much you want to have saved up depends on what you think you’re spending will look like in retirement.

The 4% Rule

If you don’t have a financial planner, it could be helpful to use a common rule-of-thumb, like the 4% rule, to figure out if you have enough money.

With the 4% rule, a retiree can take a 4% withdrawal from their nest egg the first year of retirement and then adjust it every year after that for inflation. This approach is designed to make your savings last for approximately 30 years.

If your annual expenses are $60,000, by following the 4% rule, you would aim to save 25 times that amount, or $1.5 million.

This approach, however, doesn’t account for the income you’ll receive from Social Security or the fact that you’ll no longer have 401(k) or IRA contributions in retirement. Therefore, you may consider saving less than that amount, as your spending may decline in retirement.

You can also use retirement savings tables online to help you figure out if you’re on track to retire based on your age and income.

At the end of the day, these are just general guidelines, so make sure to personalize them.

Funding The Shortfall

After you’ve taken stock of your finances, there are many ways to try to fund the gap in your retirement savings.

“People can work part-time, they can downsize, they can relocate, they can have children move-in and share rent, mortgage, and other expenses. There are so many creative ways to get to retirement that you love,” said Gucciardi.

Consider Working Longer

If you’re still able to work, consider extending your career a bit longer—this gives you extra time to build up your savings, a shorter retirement to fund, and possibly the ability to delay collecting Social Security benefits.

And for those who are unable to continue to work full-time or in-person, there are some types of gig work—like freelance writing or tutoring—can be done entirely from home, offering retirees flexibility and the opportunity to create their own schedules.

Take Advantage of IRA Catch-Up Contributions

Those who continue to work can put additional money towards retirement. For IRAs, individuals age 50 and over can make contributions worth up to $8,000 for 2025. (The IRA and catch-up contribution limits are $7,000 and $1,000, respectively.)

Additionally, if you have a workplace retirement plan and are age 50 or older, you may be eligible to make catch-up contributions worth up to $7,500 for 2025. The total annual contribution limit, including the catch-up for 401(k)s is $31,000.

Plus, under SECURE 2.0, a federal retirement law, workers aged 60, 61, 62, and 63 are now able to make larger catch-up contributions, up to $11,250 in 2025.

Take a Look at Your Home Equity

If you own a home, you may not consider your home equity when evaluating your retirement nest egg. However, some retirees may be able to free up extra funds by selling their home and downsizing or moving to a lower-cost-of-living area in retirement.

One Vanguard study found that 60% of retirees who move end up in an area with a cheaper housing market. By moving to a location with a more affordable housing market, retirees unlocked a median home equity of approximately $100,000.

Note that this may not be practical option for everyone, especially for those who currently live in a low cost of living area but plan to move to more expensive region. Gucciardi also notes that retirees shouldn’t solely relocate based on cost, but should take a more holistic approach to their decision.

“When I have clients who say they are going to move or relocate to a low-cost area, I drill down and ask them: Who is going to take them to appointments? Are they moving someplace where they have a community?” said Gucciardi. “At some point, you will need more help and need a network.”

Think Carefully About When to Collect Social Security

By delaying Social Security, retirees can earn extra money to the tune of hundreds of thousands of dollars over the course of retirement, yet delaying might not be the right choice for everyone.

When choosing when to start collecting benefits, carefully weigh factors such as your health status, family medical history, whether you have a spouse who will collect on your record, life expectancy, and if you have additional retirement funds to rely on if you choose to delay.

Waiting to collect past full retirement age (FRA)—which is age 67 for retirees born in 1960 or later—results in an 8% annual boost in benefits up to age 70. That means retirees can earn up to 124% of their benefit by delaying.

For example, if your monthly benefit is $2,000 at age 67, it would be $2,480 if you waited until age 70. That would be an additional $5,760 a year.

Yet waiting past FRA may not be the best strategy for everyone.

In a 2024 Morningstar study, researchers found that waiting until age 70 is often a better strategy for individuals who don’t need money immediately, are healthy, and, if they’re no longer working, have other funds and retirement accounts they can tap while they wait until age 70 to collect.

The Bottom Line

Retiring with limited savings isn’t easy, but it is doable with the right planning. Start by understanding your current finances and consider creative ways to fill the gap, like part-time work, putting extra money into your 401(k) or IRA, or tapping home equity.

You’ll also want to be deliberate about when you collect Social Security benefits–delaying benefits can pay off, but it may not be the right option if you’re in poor health or urgently need money.

Financial independence doesn’t have to follow a single path. Here’s how FIRE and micro-retirement compare—and how to choose the one that fits your lifestyle.

Fact checked by Vikki Velasquez

Is it better to retire early and never look back or to take meaningful breaks throughout your career and work longer overall?

That question is at the heart of two popular strategies for financial freedom: FIRE (Financial Independence, Retire Early) and micro-retirement.

Both challenge the idea that you must wait until your 60s to live on your own terms. While FIRE is about building wealth fast and quitting work for good, micro-retirement is about pausing intentionally and returning when ready.

Here’s how each strategy works, and what a financial advisor says about making the right call for your lifestyle and long-term financial health.

Key Takeaways

• FIRE (Financial Independence, Retire Early) involves aggressively saving and investing to retire decades earlier than traditional timelines.
• Micro-retirement means taking planned career breaks to rest, travel, or pursue personal goals, then returning to work.
• A hybrid approach that blends both strategies can offer balance and prioritize financial planning while making time for life outside of work.
• Regardless of the path, working with a financial advisor to align your plan with your income, goals, and risk tolerance is important.

What Is FIRE and Who Is It for?

FIRE is a savings-first strategy aimed at building enough wealth to retire in your 30s or 40s. That often means saving more than 50% of your income during your highest-earning years, investing heavily, and living well below your means.

According to Ally Invest Senior Financial Advisor Paula Parrish, “Financial Independence, Retire Early typically works well with someone who has a high income, maybe a high stress job, that doesn’t mind putting in the time up front—maybe a 15 or 20 year career that is planned—so that a lot of money goes towards retiring early.”

But FIRE also means decades without a paycheck. A market downturn, a major health expense, or simply outliving your savings can turn early retirement into a high-risk strategy.

“You want to plan for emergencies and unexpected expenses. Maybe there might be a delay getting back to work,” said Parrish. “Most of the time, you want to almost think about [saving] double of what you were thinking that you might need.”

What Is Micro-Retirement?

Micro-retirement involves taking short, planned breaks from work—typically from a few months to a few years—before returning to the workforce. These sabbaticals can be used to rest, travel, focus on family, or pursue personal goals.

Instead of delaying life satisfaction until your golden years, micro-retirement spreads it out over time. You get the benefits of substantial time off, while continuing to build long-term savings between breaks.

“Most people can do it,” said Parrish. “It just is going to take some juggling and maybe some additional savings, you know, sort of giving up a little bit today for having that break tomorrow.”

The biggest downside is that stepping away interrupts income and career momentum. Without a strategy, it may lead to weaker retirement benefits or working later in life.

Still, the mental reset can be worth it. “Giving it to yourself is such a gift,” Parrish added. “Coming back into the workforce with more focus and more of an idea of what you want to accomplish can only benefit you in the future.”

You don’t need a six-figure salary to take a micro-retirement. You just need a plan.

Can You Combine Both?

Some people use elements of both approaches, aiming for early retirement while building in time off along the way.

Parrish had a client in a high-stress position who was working while saving aggressively to buy a lake house. It was only “after some long conversations and actually a health care scare, he decided to retire early and not get the lake house, but to move to where his grandchildren lived, and spend some time helping the family, rather than just seeing them once or twice a year,” Parrish shared.

This hybrid approach allows for both flexibility and long-term planning, especially when paired with professional financial guidance. “It’s more about the resources and how you apply your resources than about how much it is that you have,” Parrish said.

The Bottom Line

FIRE and micro-retirement both offer ways to reclaim your time. FIRE is best for those with high incomes and the discipline to save aggressively for full early retirement. Micro-retirement can be a good fit for people who want more balance now, even if it means working slightly longer.

Whichever you choose, planning ahead is key. Talk to a financial advisor about your values, goals, and risk tolerance. You may find that the right answer isn’t one or the other, but a little of both.

Reviewed by Robert C. Kelly
Fact checked by Pete Rathburn

India is one of the fastest-growing economies in the world, driven primarily by its service, industrial, and agricultural sectors. It is projected to overtake Japan as the world’s fourth-largest economy in terms of nominal gross domestic product (GDP) in 2025.

India’s economy grew at a rate of 8.2% in fiscal year 2023-2024. This growth was primarily due to strong demand for the country’s goods and services in addition to a high level of industrial activity. The country was once a supplier of British tea and cotton. It now has a diversified economy with the majority of activity and growth coming from the service industry. India is considered a “global player” in the world of international economics.

India’s economy was hard hit by the COVID-19 pandemic in 2020 and 2021. Its second-quarter 2020 GDP came in nearly 24% below the second quarter of 2019 as the pandemic precipitated restrictions on all non-essential businesses, sharply curtailing economic activity. The economy has rebounded in notable ways.

Key Takeaways

• India is one of the fastest-growing economies in the world.
• Agriculture was once India’s main source of revenue and income but it fell to approximately 17% of the country’s GDP by 2024.
• The service industry in India increased from a fraction of the economy to approximately 55% from the early 1960s through 2024.

Historical Development of India’s Economy

India formed a centrally-planned economy known as a command economy after gaining independence from Britain in 1947. The government makes the majority of economic decisions regarding the manufacturing and distribution of products with a centrally planned economy,

The government focused on developing its heavy industry sector but this emphasis was eventually deemed unsustainable. India began to loosen its economic restrictions in 1991 and an increased level of liberalization led to growth in the country’s private sector. India is considered a mixed economy in the 2020s. The private and public sectors co-exist and the country leverages international trade.

Citizens can choose their occupations and start private enterprises but the government maintains a monopoly in certain areas of the economy such as defense, power, and banking. The country’s economy grew exponentially over 20 years from $288 billion in 1992 to $4.19 trillion in 2025.

The Agricultural Sector

Agriculture was once India’s main source of revenue and income but it fell to approximately 17.59% of the country’s GDP by April 2024. Analysts have pointed out that this fall should not be equated with a decrease in production. It reflects the large increases in India’s industrial and service outputs.

The agricultural industry in India faces some problems. It’s not as efficient as it could be. Millions of small farmers rely on monsoons for the water necessary for their crop production. Agricultural infrastructure isn’t well developed so irrigation is sparse and agricultural production is at risk of spoilage due to a lack of adequate storage facilities and distribution channels.

India is the world’s second-largest producer of fruit and the global leading producer of lemons, bananas, mangoes, papayas, and limes. Forestry might be a relatively small contributor to the country’s GDP but it’s a growing sector. It’s responsible for producing fuel, wood-based panels, pulp for paper, paper, and paperboard.

Important

An additional small percentage of India’s economy comes from fishing and aquaculture. Shrimp, sardines, mackerel, and carp are among its significant fisheries.

Industrial Production

Chemicals are a big business in India. The petrochemical industry first entered the Indian industrial scene in the 1970s and it experienced rapid growth in the 1980s and 1990s.

India produces a large supply of the world’s pharmaceuticals in addition to chemicals as well as billions of dollars’ worth of cars, motorcycles, tools, tractors, machinery, and forged steel.

India also mines a large number of gems and common minerals. These include iron ore, bauxite, and gold along with asbestos, uranium, limestone, and marble. India mined 997.8 million tons of coal in 2024. Crude oil was extracted at a rate of 2.5 million metric tons per month as of March 2025.

Information Technology (IT) and Business Services Outsourcing

The service industry in India increased from a fraction of the economy to approximately 55% of gross value added between 1962 and 2025. India has emerged as a major service economy with its high population of skilled, English-speaking, and educated people.

Telecommunications, IT, and software are among the leading services industries in the country. Its workers are employed by both domestic and international companies including Intel (INTC), Texas Instruments (TXN), Yahoo (YHOO), Meta (META), Google (GOOG), and Microsoft (MSFT).

Business process outsourcing (BPO) is a less significant but more well-known industry in India. It’s led by companies like American Express (AXP), IBM (IBM), Hewlett-Packard (HPQ), and Dell. BPO is the fastest-growing segment of the ITES (Information Technology Enabled Services) industry in India thanks to economies of scale, cost advantages, risk mitigation, and competency. BPO started around the mid-90s in India and has grown by leaps and bounds.

Retail Services

The retail sector in India is huge but it’s not just apparel, electronics, or traditional consumer retail that are booming. Agricultural retail is important in an inflation-conscious country like India and it’s also significant.

The issue of agricultural wastage has come to the forefront, however. It’s been estimated that over 400,000 tons of wheat and rice were wasted due to storage and transportation issues from 2018 through 2021. This is enough to feed over 80 million people within the country.

Reports suggest that there’s little storage for Indian agricultural products. Experts believe that the solution to the massive waste issue is an urgent issue in need of policy, technological, and infrastructure-based responses. The Indian government is purported to be exploring a range of potential ways to address the issue.

Other Services

Other parts of India’s service industry include electricity production and tourism. The country is largely dependent on fossil fuels like oil, gas, and coal, but it’s increasingly adding capacity to produce hydroelectricity, wind, solar, and nuclear power.

The country received 96 million foreign tourist arrivals in 2024, an increase of 1.4% from the previous year. The country earned an estimated $33.1 billion in foreign exchange earnings from tourism in the same period. The Ministry of Tourism calculated that tourism generated 5.0% of India’s GDP in 2023.

Medical tourism to India is also a growing sector. India’s market for medical tourism is expected to touch the $13 billion mark by 2026, according to estimates published by the Federation of Indian Chambers of Commerce and Industry (FICCI).

Medical tourism is popular in India because of the low cost of health care and compliance with international standards. Customers come from all over the world for heart, hip, and plastic surgery procedures, and a small number of people take advantage of India’s commercial surrogate facilities.

What Is India’s Biggest Export?

India’s biggest exports fall under the refined petroleum product group. Other major exports by value include diamonds, packaged medicines, jewelry, and rice.

Where Does Money Come From in India?

The Reserve Bank of India (RBI) is the country’s central bank. It’s tasked with regulating the country’s currency and credit systems. The bank also uses monetary policy to ensure financial stability and prints currency. It began operations in April 1935.

What Is India’s Largest Trading Partner?

India’s top export destination is the United States followed by the United Arab Emirates, the Netherlands, and Singapore. The country’s biggest importing partner is China, followed by Russia and the United States.

The Bottom Line

India has become a rising economic power in the 21st century. The number of people living in extreme poverty halved between 2011 and 2019, thanks in part to robust economic growth that has improved overall standards of living.

India experienced a 6.5% increase in real GDP in the fiscal year ending in 2024, according to the International Monetary Fund. It’s expected to moderate to 6.2% in 2025. India is one of the fastest-growing major emerging economies. It’s also become a focus of investors across the globe.

Fact checked by Timothy Li
Reviewed by Caitlin Clarke

FOB Shipping Point vs. FOB Destination: An Overview

Free on board (FOB) shipping point and free on board (FOB) destination are international commercial terms (Incoterms) that designate who is liable for goods during transit.

FOB shipping means the buyer assumes responsibility as soon as the goods leave the seller’s dock, while FOB destination indicates the seller retains responsibility until the goods reach the buyer’s location.

International commercial laws standardize the shipment and transportation of goods. These laws use specific terms outlined in detailed contracts to define delivery time, payment terms, and when the risk of loss shifts from the seller to the buyer. These terms are published by the International Chamber of Commerce (ICC) to help navigate the complexities of international trade and differing country laws.

Free on board, also referred to as freight on board, only applies to shipments made via waterways and doesn’t apply to goods transported by vehicle or air.

Key Takeaways

• Free on board (FOB) is a trade term that indicates whether the buyer or the seller is liable for goods lost, damaged, or destroyed during shipment.
• A free on board shipping point indicates that the buyer is responsible for loss or damage when the goods reach the shipper.
• A free on board destination indicates that the seller retains liability for loss or damage until the goods are delivered to the buyer.
• FOB shipping point is usually paid for by the buyer, while FOB destination is usually paid for by the seller.
• FOB contracts have become more sophisticated in response to the increasing complexities of international shipping.

FOB Shipping Point

FOB shipping point, or FOB origin, means the title and responsibility for goods transfer from the seller to the buyer once the goods are placed on a delivery vehicle. This transfer of ownership at the shipping point means the seller is no longer responsible for the goods during transit. Instead, the buyer assumes all responsibility for the shipment when it leaves the seller’s dock.

For example, let’s say Company ABC in the United States buys electronic devices from its supplier in China and signs a FOB shipping point agreement. Company ABC assumes full responsibility if the designated carrier damages the package during delivery and can’t ask the supplier to reimburse the company for the losses or damages. The supplier’s responsibility ends once the electronic devices are handed over to the carrier.

Important

Recording the exact delivery time when goods arrive at the shipping point can be challenging. Constraints in the information system or delays in communication often cause a slight timing difference between the legal transfer of ownership and the accounting records.

FOB Destination

Conversely, with FOB destination, the title of ownership transfers to the buyer once the goods reach the buyer’s loading dock, post office box, or office building. This means the seller retains ownership and responsibility for the goods during the shipping process until they’re delivered to the buyer’s specified location.

For example, assume Company XYZ in the U.S. buys computers from a supplier in China and signs a FOB destination agreement. If an accident prevents the computers from being delivered, the supplier takes full responsibility for the computers and must reimburse Company XYZ or reship the computers.

Shipping terms affect the buyer’s inventory cost because inventory costs include all costs to prepare the inventory for sale. This accounting treatment is important because adding costs to inventory means the buyer doesn’t immediately expense the costs, and this delay in recognizing the cost as an expense affects net income.

Key Differences

Accounting Guidance

A primary difference between these two terms is how they’re accounted for. Since the buyer assumes liability after the goods are placed on the ship for transport, the company can record an increase in its inventory at that point. Similarly, the seller records the sale at the same time.

The accounting rules change for FOB destinations. In this case, the seller completes the sale in its records once the goods arrive at the receiving dock. That’s when the buyer records the increase in its inventory. The accounting entries are often performed earlier for a FOB shipping point transaction than a FOB destination transaction.

Transfer of Ownership

In a FOB shipping point agreement, ownership transfers from the seller to the buyer once the goods are delivered to the point of origin. At this shipping point, the buyer becomes the owner and bears the risk during transit.

Alternatively, FOB destination places the delivery responsibility on the seller. The seller maintains ownership of the goods until they are delivered, and once they’re delivered, the buyer assumes ownership.

Division of Cost

There’s also a difference in the division of costs. With the FOB shipping point option, the seller assumes the transport costs and fees until the goods reach the port of origin.

Once the goods are on the ship, the buyer is financially responsible for all transport costs, customs, taxes, and other fees. In contrast, with FOB destination, the seller covers all costs and fees until the goods reach their destination. Upon arrival at the destination port, the buyer assumes responsibility for all fees, including duties, customs, taxes, and other fees.

FOB Shipping Point

• The sale is recorded in the general ledger when the goods have arrived at the point of origin.

• Transfer of ownership occurs when the goods have been delivered to the point of origin (the shipping point).

• Costs of shipment often reside with the buyer, as they are now considered owners during transit.

FOB Destination

• The sale is recorded in the general ledger when the goods have been delivered to the buyer.

• Transfer of ownership occurs when the goods have been delivered to the buyer (often the final destination).

• Costs of shipment often reside with the seller, as they are considered owners during transit.

Special Considerations

Other FOB Terms

There are also a range of different FOB shipment options, including but not limited to:

• FOB shipping point, freight prepaid: The buyer assumes the risk of the products being shipped once the goods arrive at the point of origin. However, the buyer may compensated by the seller, or the seller may incur upfront shipment costs on behalf of the buyer. The seller paid for shipping, but the risk still lands with the buyer.
• FOB shipping point, freight prepaid and charged back: The seller pays for shipping, but the buyer takes responsibility for the goods once they’re at the point of origin. The seller may bill the buyer for the shipping costs by adding them to an existing invoice or issuing a separate one.
• FOB destination, freight collect: The buyer pays for the shipping costs, but the seller retains ownership and responsibility for the goods while in transit.
• FOB destination, freight collect and allowed: The “and allowed” phrase means the seller adds shipping costs to the invoice, and the buyer agrees to pay that cost even if the seller coordinates and manages the shipment. Even though the buyer ultimately pays for the shipment, the seller is still responsible for the goods until they have been delivered.

Non-FOB Terms

Although FOB shipping point and FOB destination are among the most common terms, other agreements vary from these two.

• Free Alongside: The seller must deliver goods via ship, meet up with a ship during transport, and transport the goods using lifting devices to move them from one ship to the other.
• Free Carrier: The seller must ship the goods via aircraft, boat, or railway where the buyer operates. The buyer is obligated to take delivery at one of those destinations.
• Delivered Ex Ship: The seller must deliver products to a specific shipping port. When the ship arrives, the buyer is required to take delivery upon arrival.
• Ex Works: The seller must prepare the goods for delivery but is not responsible for actually delivering them. The buyer is responsible for making delivery arrangements and picking the goods up.

Note

Incoterms define the international shipping rules that delegate the responsibility of buyers and sellers. These terms are reviewed and updated once every decade.

Examples of FOB Shipping Point and FOB Destination

FOB Shipping Point

Assume a fitness equipment manufacturer receives an order for 20 treadmills from a newly opened gym located across the country. The terms of the agreement are to deliver the goods FOB shipping point.

The fitness equipment manufacturer is responsible for ensuring the goods are delivered to the point of origin. Once the treadmills reach this point, the buyer assumes responsibility for them. The manufacturer records the sale at the shipping point, at which time they also make an entry for accounts receivable and reduce their inventory balance.

Simultaneously, while the treadmills have not yet been delivered, the buyer has now officially taken responsibility for the goods. The buyer should record an accounts payable balance and include the treadmills in their financial records. The fact that the treadmills may take two weeks to arrive is irrelevant to this shipping agreement; the buyer already possesses ownership while the goods are in transit.

FOB Destination

Imagine the same situation above, except the agreement terms are for FOB destination. In this case, ownership doesn’t transfer at the shipping point. Instead, the manufacturer retains ownership of the equipment until it’s delivered to the buyer. Neither party records the sale transaction in their general ledgers until the goods arrive at the buyer’s location. During transit, the seller retains the risk and responsibility for the goods. Additionally, if the goods are damaged in transit, the seller is responsible for replacing them at their own expense.

Explain Like I’m Five

FOB shipping point and FOB destination are terms that tell you when a shipment of goods legally changes hands. For FOB shipping point, ownership transfers when the goods are loaded on a ship. For FOB destination, the transaction is not complete until the goods reach the buyer.

These terms are used in the shipping industry to indicate who is responsible for goods in transit. This includes all the expenses associated with shipping, like customs duties, taxes, and insurance against risk.

Who Pays for Shipping in FOB Shipping Point?

In FOB shipping point agreements, the seller pays all transportation costs and fees to get the goods to the port of origin. Once the goods are at the point of origin and on the transportation vessel, the buyer is financially responsible for costs to transport the goods, such as customs, taxes, and fees.

Who Retains Risk in FOB Shipping Point?

The seller is at risk until the goods reach the shipping point. Once the goods are shipped, the buyer is at risk. If the goods are damaged in transit, the loss is the buyer’s responsibility.

Is FOB Destination Better for a Buyer?

FOB destination is more favorable for a buyer. The buyer is not responsible for the goods during transit; therefore, the buyer often is not responsible for paying for shipping costs. The buyer is also able to delay ownership until the goods have been delivered to them, allowing them to do an initial inspection prior to physically accepting the goods to note any damages or concerns.

Does FOB Mean Free Shipping?

FOB stands for either “free on board” or “freight on board.” The term is used to designate buyer and seller ownership as goods are transported. FOB doesn’t explicitly mean the transportation of goods is free.

The Bottom Line

When shipping goods to a customer, FOB shipping point or FOB destination may be two primary options, and it’s crucial to understand the implications for both the buyer and the seller regarding ownership, liability, and costs.

FOB shipping point holds the seller liable for the goods until they’re transported to the customer, while FOB destination holds the seller liable for the goods until they have reached the customer. Choosing the right FOB term can significantly impact your business operations, financial records, and risk management, so consider these factors carefully.

A guide to blockchain’s place in banking, investment, and digital finance

Reviewed by Cierra Murry

Since Bitcoin first appeared in 2009, distributed ledger and blockchain technology have progressed from a niche curiosity to increasingly core elements of financial systems, supply chains, and digital ecosystems. As individuals and institutions alike come to embrace cryptocurrencies, smart contracts, and decentralized applications (dApps), new investment vehicles—from thematic ETFs to blockchain-based tokens—are proliferating.

This article offers a guide to current investment opportunities and future developments for investors interested in this fast-paced technological area. 

Key Takeaways

• Blockchain has broadened beyond just cryptocurrencies.
• Investors now choose among spot‑crypto ETFs, tokenized real‑world assets, DeFi yields, NFTs, and crypto‑linked equities—each with its own risk/reward profile.
• Real-world applications for blockchain also span multiple industries, from finance to supply chain management to real estate.
• Keep an eye on CBDC rollouts, AI-and-blockchain convergence, modular/L2 architectures, and strategic crypto reserves as the sector’s future growth drivers.

Understanding Blockchain

At its core, a blockchain is a distributed database spanning multiple computers that records transactions into sequentially-linked blocks secured by cryptographic methods. The distributed architecture effectively removes the need for trusted third parties by creating a transparent ledger where data, once recorded, cannot be altered retroactively. This breakthrough solved the thorny “double-spend” problem, meaning that digital tokens could not be copied (“counterfeited”) or transactions altered or deleted.

Bitcoin’s blockchain relies on a consensus mechanism known as proof-of-work (PoW), where so-called “miners” compete with one another to solve cryptographic puzzles (hence, “crypto”), a process which also serves to verify transactions. When a miner successfully solves the puzzle, they add a new block of transactions to the chain and also receive freshly minted bitcoins as a reward. This process (which occurs approximately every 10 minutes) protects the network from attackers or other bad actors.

Unlike many newer blockchain platforms, Bitcoin relies on a relatively simple protocol that intentionally limits programmability to enhance access and security. This conservative approach has helped Bitcoin maintain its reputation as the premier blockchain network, with no successful attacks on its core protocol since its inception.

Beyond Bitcoin

However, Bitcoin is just one example of how a blockchain can be deployed, and the ecosystem has undergone significant transformation since 2009. Ethereum, for instance, brought to the fore advanced smart contract features that allow for programmable transactions and automatic execution of agreements without any third-party involvement.

The technology has evolved to support complex decentralized applications (dApps), which enable new digital economies and governance frameworks beyond basic value transfers. Today, businesses in the health care, real estate, and logistics sectors—in addition to the financial industry and others—utilize blockchain technology to protect information, digitize property ownership, and monitor transactions to cut down on fraudulent activities and operational inefficiencies. 

Where Blockchain Is Being Used

Global cryptocurrency market value sits at $3.45 trillion as of mid-2025, with Bitcoin alone commanding over $2 trillion of that capitalization. But as a sector, the blockchain market—encompassing infrastructure providers, enterprise platforms, middleware vendors, and protocol developers—has grown into a multi-billion-dollar industry valued at nearly $50 billion in 2025, and projected to reach upwards of $216 billion by 2029.

Indeed, while cryptocurrencies still dominate the headlines, blockchain’s practical applications extend far beyond digital money. Here are just a few examples:

• Retail giants like Walmart (WMT) use blockchain technology to track their supply chains, which allows them to detect contaminated or defective products within seconds instead of days.
• Health care organizations are starting to explore blockchain applications for securing patient medical records, as well as drug supply chain validation and clinical trial management.
• In real estate, blockchain can streamline property transfers and title searches.
• Enterprise software companies like IBM (IBM), Microsoft (MSFT), Oracle (ORCL), and Amazon Web Services (AMZN) deliver blockchain-as-a-service (Baas) solutions to organizations so they can implement them without building their own systems.
• Financial institutions benefit from more secure and expedited cross-border payments and interfirm settlements of over-the-counter (OTC) trades.
• Decentralized finance (DeFi) removes traditional financial institutions from their role as intermediaries in favor of peer-to-peer (P2P) transactions. The idea is to allow people to take control of their finances with digital wallets, peer-to-peer lending, and other financial services via fintech applications.
• Insurance companies are experimenting with smart contracts to automate claims processing and customer payouts.
• Luxury goods and collectibles can receive tamper-proof certificates of authenticity together with auditable provenance.
• Web3 platforms deliver a decentralized internet by enabling peer-to-peer data storage via protocols such as IPFS and Filecoin, token-based governance through DAOs, trading unique digital assets via NFTs, and data monetization in decentralized marketplaces.
• Several governments are piloting blockchain-based systems to issue digital identity cards, maintain records, and secure online voting. For example, Estonia’s e-Residency program uses blockchain to securely manage digital identities, while Sweden is testing blockchain for land registry records.

Web 3

Web3 refers to proposed improvements to the current internet infrastructure using blockchain technology. While there’s significant hype around Web3, its practical implementation is still in the early stages and faces ample challenges.

Cryptocurrencies: Owning Coins Directly

A cryptocurrency is a native digital token secured by public‑key cryptography and a distributed ledger. Bitcoin (BTC) remains the monetary bellwether; Ethereum (ETH) underpins most smart‑contract activity; and stablecoins such as USDC and USDT track the U S. dollar. Beyond these, thousands of “alt‑coins” compete in niches from privacy (Monero) to AI infrastructure (Fetch.ai).

Where To Buy

• Centralized exchanges (CEXs): Coinbase, Kraken, and Bitstamp serve U.S. and EU investors; Binance remains the global volume leader, though it faces regulatory constraints in several jurisdictions. Purchases settle within minutes in an exchange‑hosted wallet, but you typically hold IOUs until you withdraw.
• Decentralized exchanges (DEXs): Uniswap, Curve, and PancakeSwap let you trade peer‑to‑peer from a self‑custodial wallet such as MetaMask or Ledger. Slippage and gas fees vary by blockchain.
• Payment apps & brokers: Apps like PayPal, Venmo, and Revolut; and brokers like Robinhood offer limited coin access that can be cashed out or transferred only in some regions.

Key Risks

Exchange bankruptcy (for example Mt. Gox and FTX), wallet hacks, lost private keys or seed phrases, and large price swings.

Mitigate by using offline hardware wallets or cold storage for long‑term holding and spreading positions across multiple venues.

Crypto ETFs: Stock‑Market Exposure Without the Wallet

Exchange‑traded funds (ETFs) hold spot crypto on your behalf, wrapping it in a familiar brokerage product. In January of  2024, the U.S. Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC. Nine spot Ether ETFs began trading in July 2024, and in April 2025, the SEC allowed listed options on those funds, further boosting liquidity.

How To Buy

Any standard brokerage account (eTrade, Robinhood, Schwab, Fidelity, Interactive Brokers, etc.) can route an ETF order like a stock. Management fees typically range from 0.10% up over 2% of assets under management.

With an ETF, you avoid self‑custody headaches, trade in tax‑advantaged accounts like an IRA, and gain access to covered‑call or option overlays.

Key Risks

ETFs can trade at small premiums/discounts to the underlying holdings; you sacrifice staking yield (for ETH) and must pay the fund management fees. In addition, ETFs only exist for Bitcoin and Ethereum so far, though filings for Ripple (XRP), Solana (SOL) and other single‑asset funds are pending.

Crypto-Related Stocks

Today, many companies’ share prices can give you indirect—but sometimes highly leveraged—exposure to the blockchain space. Use a standard brokerage account to buy any of them, but note that each category rides a different risk cycle.

Miners (Pure‑Play Bitcoin Production)

• Marathon Digital Holdings (MARA): Largest by market cap; mined ≈ 2,285 BTC in Q1 2025 (≈ US $186 M).
•  Riot Platforms (RIOT): 1,428 BTC in the same quarter; Texas‑based with low‑cost power deals.
• CleanSpark (CLSK): Pivoted from micro‑grids to full-time mining, produced 1,950 BTC in Q1 2025.
• Other notable miners: HUT (Hut 8), BITF (Bitfarms), CIFR (Cipher Mining).

Corporate Bitcoin Treasuries (‘Hodlers’)

•  MicroStrategy (MSTR): Now known simply as “Strategy,” it commands the world’s biggest corporate stack (> 560,000 BTC).
• Tesla (TSLA): Still holds 11,509 BTC (≈$950 M) after its 2022 trim‑down.
• Block (XYZ): 8,584 BTC plus active treasury‑management tooling.
• Galaxy Digital (GLXY.TO) and Metaplanet (3350.T) round out the top corporate hodlers.

Exchanges and Brokerages

• Coinbase Global (COIN): Dominant regulated U.S. spot exchange; also operates the Base L2 network.
• Robinhood (HOOD): Retail on‑ramp with zero‑commission crypto trades.
• CME Group (CME) and Cboe Global Markets (CBOE): Regulated BTC/ETH futures and options; gateways for institutions.

Hardware & Chipmakers

• Intel (INTC): Supplying next‑gen Bitcoin ASICs under multi‑year deals with miners like GRIID.
• Nvidia (NVDA) & AMD (AMD): GPUs still power non‑BTC mining and AI/crypto crossover workloads.
• Canaan (CAN): Long‑running manufacturer of Avalon‑series ASIC rigs.

Non-Fungible Tokens

Non-fungible tokens (NFTs) are essentially one-of-a-kind digital assets. NFT tokens certify ownership of a unique digital item—artwork, concert tickets, in‑game gear, even real‑world merchandise receipts. After a euphoric 2021‑22, trading volumes fell dramatically year‑over‑year through 2025.

Tokenized real-world assets (RWAs) are blockchain representations of physical or off‑chain financial assets, such as Treasury bills, real estate, private credit, or fine art.

Where To Buy

• Marketplaces: OpenSea (the broadest selection), Blur (pro‑trading focus), Magic Eden (Solana first, now multichain) and tensor.trade for Solana Ordinals.
• Launchpads & mints: Many collections release directly from their own websites via smart contracts—always verify contract addresses.
• Bitcoin Ordinals: These are NFTs that exist as unique “Satoshis,” or the smallest possible divisible unit of bitcoin. Specialized wallets like Xverse integrate ordinals markets, but liquidity is often thin.

Key Risks

Illiquidity (a buyer may never appear), copyright disputes, wash‑trading, and sudden marketplace rule changes. Use cold wallets, monitor royalties linked to NFT resales, and beware phishing links in Discord/Twitter.

Tip

Media attention popularized NFTs in the mainstream after the digital artist Beeple sold a collage of non-fungible tokens for $69 million in 2021.

DeFi Lending, Staking, and Yield Strategies

Decentralized‑finance (DeFi) protocols recreate bank‑like services—borrowing, lending, derivatives—through autonomous smart contracts. This allows holders of cryptocurrencies to earn “interest” via staking or yield via lending. As of May 2025, total value locked (TVL) sits near $92 billion, with institutions providing the majority of liquidity. 

How To Participate

Connect a self‑custodied wallet (MetaMask, Rabby, Ledger) to the dApp, approve token spending, and deposit collateral. Yields derive from borrower interest or native reward emissions and fluctuate daily.

Some popular platforms include:

• Aave & Morpho: Variable‑rate lending and flash loans.
• Lido: Liquid‑staking derivative (stETH) for Ethereum.
• Curve & Uniswap v4: Stablecoin pools and concentrated‑liquidity AMMs.

Key Risks

Smart‑contract exploits, oracle manipulation, sudden liquidation cascades during price crashes, and governance attacks. Never stake funds you cannot lose; diversify across chains (Ethereum, Arbitrum, Solana) and keep emergency buffers.

Emerging and Future Developments

As blockchain technology and the crypto space continue to evolve, new opportunities and use cases arise.

Here are some important trends shaping blockchain’s future:

• Integration with traditional finance: Banks are testing blockchain for specific back-office functions, with JPMorgan and Citigroup leading in areas like settlement and tokenization.
• Enterprise products: Companies are developing private blockchains for business operations, focusing on efficiency and security rather than decentralization.
• Regulatory shifts: Governments worldwide are working to create clearer rules for blockchain applications and token holders, which could provide more certainty for investors and for business adoption.
• Central bank digital currencies (CBDCs): China’s digital yuan is already live in 26 cities, while Hong Kong’s e‑HKD and the ECB’s digital‑euro sandbox have moved into advanced retail‑payment tests, showing governments’ intent to keep core settlement layers “on‑chain.”
• Strategic crypto reserves: President Trump in 2025 announced the establishment of a U.S. strategic bitcoin reserve, initially seeded with seized crypto. Individual states and other national governments are also looking into this possibility.
• Artificial Intelligence (AI) + Blockchain: AI and blockchain are converging to let computation, data, and even autonomous agents become tradable on‑chain assets: tokens like Render or Bittensor pay GPU providers for machine learning, while platforms such as Virtuals let anyone launch an AI with its own wallet and revenue‑sharing token. Smart contracts give these systems transparent accounting, automated payouts, and permissionless market access, turning decentralized compute and “agent‑commerce” into investable primitives alongside coins and NFTs. The upside is exposure to AI demand without centralized gatekeepers; the downside is extreme volatility, experimental economics, and still‑unclear regulation over tokenized intelligence and biometric data.

Is Buying Coins the Only Way To Invest in Blockchain?

No. New investment vehicles include U.S.‑listed spot Bitcoin and Ether ETFs—now with exchange‑traded options—so you can get exposure in a regular brokerage or IRA account without self‑custody hassles. Beyond that, tokenized real‑world‑asset (RWA) funds put short‑term Treasuries, private credit, and even real estate on‑chain (the market is expected to top US $50 billion in 2025). Finally, sector‑specific equities—miners, exchanges, and firms with large crypto treasuries—offer additional, sometimes leveraged, exposure.

Are Banks and Governments Really Using Blockchain Tech or Is It Still Hype?

Several large banks are already running live back‑office pilots: JPMorgan’s Kinexys platform settle billions in tokenized collateral each day, while Citi is gearing up to custody and tokenize late‑stage private‑equity shares on Switzerland’s SIX Digital Exchange. On the public side, the U.S. created a Strategic Bitcoin Reserve in March 2025 using seized coins—an early sign that sovereign treasury management is edging on‑chain.

What Is a Smart Contract?

A smart contract is one that’s built into the blockchain to facilitate transactions. It operates under a set of conditions to which users agree. When those conditions are met, the smart contract conducts the transaction for the users.

Why Is Crypto Surging?

In November 2024, cryptocurrency experienced a surge in market value because of positive expectations by speculators following Donald Trump’s election win. Trump promised to support crypto, and many pending federal developments are being watched closely by investors. While the market sold off somewhat following trade war concerns, by mid-2025 many tokens had recovered, with Bitcoin approaching $100,000 once again.

The Bottom Line

Blockchain and crypto have matured from a frontier of speculative coins into a multi‑channel ecosystem where investors can choose among spot‑traded ETFs, tokenized real‑world assets, DeFi yield strategies, digital collectibles, publicly listed miners or ETFs, and even AI‑powered tokens. Institutional adoption—from JPMorgan’s back‑office pilots to governments seeding strategic bitcoin reserves—signals that blockchain’s settlement speed and transparency now complement, rather than confront, traditional finance.

Yet every route still carries technical and regulatory risks: smart‑contract exploits, shifting rules and regulations, and extreme price swings. Approach the sector as a high‑volatility sleeve within a diversified portfolio, pair any allocation with disciplined security (hardware wallets, reputable custodians), and keep one eye on policy developments that will determine which of today’s innovations graduate into tomorrow’s infrastructure.

Reviewed by David Kindness

The debt service coverage ratio (DSCR) is used in corporate finance to measure the amount of a company’s cash flow available to pay its current debt payments or obligations. The DSCR compares a company’s operating income with the various debt obligations due in the next year, including lease, interest, and principal payments.

Investors can calculate a debt service coverage ratio for a company using Microsoft Excel and information from a company’s financial statements.

Key Takeaways

• The debt service coverage ratio (DSCR) compares a company’s operating income with its upcoming debt obligations.
• The DSCR is calculated by dividing net operating income by total debt service.
• Total debt service includes interest and principal on a company’s lease, interest, principal, and sinking fund payments.
• You can calculate the DSCR using Excel without using a complex formula.
• To calculate the DSCR, you will need financial information typically reported on a company’s financial statements or annual reports.

DSCR Formula

The first step to calculating the debt service coverage ratio is to find a company’s net operating income. Net operating income is equal to revenues, less operating expenses, and is on the company’s most recent income statement.

Net operating income is then divided by total debt service for the period. The resulting figure is the DSCR. Total debt service includes the repayment of interest and principal on the company’s debts and is usually calculated on an annual basis. These items can also be found on the income statement.

The DSCR formula is shown below:

$begin{aligned}&text{DSCR}=frac{text{Net Operating Income}}{text{Total Debt Service}}\&textbf{where:}\&text{DSCR}=text{Debt service coverage ratio}end{aligned}$​DSCR=Total Debt ServiceNet Operating Income​where:DSCR=Debt service coverage ratio​

Important

You can find the net operating income and debt service figures on a company’s income statement.

How to Calculate the DSCR in Excel

Before calculating the ratio, in Excel, we must first create the column and row heading names.

Row 1:

Write the title of the sheet; “Calculating the Debt Service Coverage Ratio.”

Row 2:

Write the headings, including Company and the financial data. The headings should be located and labeled as shown below:

• A2 = Company Name
• B2 = Net Operating Income
• C2 = Total Debt Service
• D2 = DSCR
• A3, A4, and so on will be the locations of the company names.

Your headings should be aligned similar to the screenshot below:

As an example, let’s say Company A has net operating income of $2,000,000 for one year and total debt servicing costs equal to $300,000 for that year.

Company A’s operating income will be reported on its income statement, and Company A’s debt servicing cost might be shown as an expense on the income statement. However, any number on the income statement is historical. Review the company’s financial note disclosures and balance sheet for information on long-term obligations, including potentially escalating required payment amounts.

Row 3

We can write in the data for Company A into our spreadsheet:

• Cell A3 = Company A
• Cell B3 = $2,000,000
• Cell C3 = $300,000

Please see image below for how your spreadsheet should look:

Calculate the debt service coverage ratio in Excel:

• As a reminder, the formula to calculate the DSCR is as follows: Net Operating Income / Total Debt Service.
• Place your cursor in cell D3.
• The formula in Excel will begin with the equal sign.
• Type the DSCR formula in cell D3 as follows: =B3/C3
• Press Enter or Return on your keyboard

See the screenshot below for how the formula should look in cell D3:

You’ll notice that Excel automatically highlights the cells in the formula calculation as you type. Once you press Enter, the calculation will be completed, as shown below:

As a result of the calculation, we can see that Company A generates enough net operating income to cover its debt obligations by 6.67 times in one year. In other words, the company’s income is six times larger than its required debt payments.

Comparing Multiple Companies

If you want to compare the DSCR of multiple companies, you can follow the same steps beginning in Row 4 for the second company name, followed by its financial data.

A quick tip when calculating the ratio for multiple companies: You can copy the formula from cell D3 and paste it into cell D4 once you have Row 4 completed. To copy and paste the formula, place your cursor in cell D3, right-click, and choose Copy from the drop-down menu that appears. Click on cell D4, right-click, and choose to click Paste from the drop-down. Alternatively, the keyboard shortcut to copy content in Excel is Control + C on PC or Command + C on Mac, and the keyboard shortcut to paste content in Excel is Control + V on PC or Command + V on Mac.

Interpreting the DSCR

A DSCR of 1 indicates a company has generated exactly enough operating income to pay off its debt service costs. Therefore, companies should strive to achieve a DSCR greater than 1.

One exception to this rule is that the DSCR of a company should only be compared to similar companies within the same industry. Some sectors (i.e., airlines or real estate) rely heavily on debt and will likely have lower DSCR calculations due to high debt service. Other sectors (i.e., software/technology) rely more on equity funding, carry less debt, and have naturally high DSCRs.

Once you know how to format the formula in Excel, you can analyze the DSCR of various companies to compare and contrast before choosing to invest in one of those stocks.

The DSCR shouldn’t be the only metric an investor uses to decide whether a company is a good investment. Investors have many financial metrics available to them, and it’s important to compare several of those ratios to similar companies within the same sector. Also, please note that there are other debt service coverage ratios, including two relating to property loans that were not covered in this article.

Explain Like I’m Five

The debt service coverage ratio measures a company’s ability to pay off its current debts, using only the income from its operations. It is calculated by dividing the company’s net operating income by its total debt service.

Investors use the DSCR to decide if a company uses its cash flow effectively. If the DSCR is less than 100%, the company does not have enough money coming in to pay its debts, and it will have to cut costs or borrow more money to stay current on its obligations.

What Is a Good DSCR?

A debt service coverage ratio of 1 or above indicates a company is generating enough income to cover its debt obligation. A ratio below 1 indicates a company may have a difficult time paying principal and interest charges in the future, as it may not generate enough operating income to cover these charges as they become due.

When Should You Calculate the DSCR?

The DSCR is often a reporting metric required by lenders or other stakeholders to monitor the risk of a company becoming insolvent. You should calculate the DSCR whenever you want to assess the financial health of a company and its ability to make required cash payments when due.

What Factors Affect the DSCR?

The DSCR is affected by two items: operating income and debt service. Operating income is affected by the organization-wide financial performance of the company. Debt service is the credit a company has taken to finance its operations.

The Bottom Line

The DSCR is calculated by dividing net operating income by total debt service and compares a company’s operating income with its upcoming debt obligations. Total debt service includes interest and principal on a company’s lease, interest, principal, and sinking fund payments. Using Excel does not require a complex formula to calculate the DSCR.

Fact checked by Vikki Velasquez

Jimmy Donaldson, known as MrBeast, is a billionaire thanks largely to his wildly popular YouTube videos. His other business ventures include a food company, an online clothing store, and Beast Games, a game show on Amazon Prime Video.

Key Takeaways

• Jimmy Donaldson earns money from ad revenue and sponsorships from his various YouTube channels.
• MrBeast has over 320,000 million subscribers on his main YouTube channel and 500 million followers on social media.
• He gives money to charity, and this is sometimes featured in his YouTube videos.

Popularity on Social Media

Donaldson has more than 500 million followers on social media and more than 320 million subscribers on his main YouTube channel, where his videos have almost 9 billion views. He is known for his stunts, such as staying in a cave for a week and living in a bunker for 100 days to win $500,000. He has a net worth of $1 billion and makes $50 million monthly from YouTube videos and other businesses.

Early Days on YouTube

Donaldson started making YouTube videos in 2013 when he was just 12 years old. His original videos primarily showed live play and strategies for video games such as Minecraft and Project Zomboid. In the next few years, he began creating videos about top YouTubers at the time, including how much they made from their channels and how to get views and subscribers on YouTube videos.

By 2017, Donaldson regularly uploaded the challenges and stunt videos for which he eventually became famous. His first big YouTube breakout video showed him spending 44 hours counting to 100,000 in 2017. It was viewed 21 million times. He read the dictionary in other videos and took Ubers across the country.

In 2018, Donaldson started doing stunt philanthropy with his YouTube videos. In one video, he had people place their hands on a stack of $1 million. The last one to let go got the cash. He also made a YouTube video where he gave $1,000 to strangers. In another YouTube video, he adopted every dog in an animal shelter.

Ventures Beyond YouTube Videos

Beyond earning money from ad revenue and sponsorships for his YouTube channels, Donaldson sells clothes and other merchandise through his online shopping site. This is his second biggest source of income.

In 2020, Donaldson launched MrBeast Burger with Virtual Dining Concepts. According to Donaldson, MrBeast Burger made revenue of $100 million from December 2020 to July 2022. In 2022, he launched a food company, Feastables, that sells chocolate bars and gummy candy.

His game show, Beast Games, which was inspired by the Netflix hit “Squid Game” about a dystopian game show, premiered on Dec. 19, 2024, on Amazon Prime Video. In it, 1,000 contestants were competing for a $5 million prize. Beast Games had 50 million views in just 25 days. Despite the show’s success with viewers, Donaldson says he lost millions doing the game show.

Donaldson has donated millions to charitable organizations, including the Saint Jude Children’s Research Hospital. He also donates money to homeless shelters and animal shelters.

MrBeast Business Controversies

In 2023, Donaldson filed a lawsuit against Virtual Dining Concepts for harm to his brand due to the low quality of the food offered by MrBeast Burgers and other quality control issues.

According to the lawsuit, Virtual Dining Concepts focused on expansion by pitching the same concept to other celebrities rather than managing the quality of MrBeast Burgers. As a result, the brand experienced quality control issues such as late orders, unmarked packaging, orders that didn’t contain the proper items, website troubles, and failure to give customers refunds. Donaldson is seeking the right to terminate the MrBeast Burger business.

Also in 2023, Virtual Dining Concepts filed a countersuit against Donaldson for $100 million, claiming Donaldson failed to honor his contract and interfered in the business between Virtual Dining Concepts and MrBeast Burger. The lawsuit also claimed that Donaldson used his social media fame to encourage followers to seek other products and to disparage the MrBeast Burger.

There is also controversy surrounding Beast Games. Competitors complained of unsafe working conditions on set, including a lack of food, being denied access to personal medications and hygiene products, and injuries caused by the game’s physical challenges. A lawsuit filed in September 2024 accused Donaldson of creating unsafe working conditions for competitors who were aiming for the $5 million prize. The lawsuit includes allegations of sexual harassment and misrepresenting the odds of winning to competitors.

The Bottom Line

MrBeast, whose real name is Jimmy Donaldson, has created a $1 billion empire largely off the huge popularity of his YouTube videos. In his videos, he does a variety of stunts; in some, he gives money to charity. Through his YouTube videos, he earns money from ad revenue and sponsorships. Other business ventures include a fast food business, a clothing line, and a snack food company. His Amazon Prime game show, Beast Games, had record viewership, but Donaldson says he lost millions on the show.