Teaching Investing vs. Doing Investing: Which Pays Better?

Analyze the real hourly rate of doing Investing work vs. teaching/consulting on it. Discover why many Investing professionals earn more by sharing knowledge on Sidetrain.

📑 Table of Contents

In the world of wealth management and market analysis, there is a persistent paradox: the most skilled investors often find themselves hitting an income ceiling despite their deep expertise. You might be a master of technical analysis, a wizard at spotting undervalued REITs, or a specialist in crypto-asset allocation. Yet, if you are primarily "doing" the work—managing individual portfolios, writing one-off research reports for clients, or executing trades—you are likely undercharging for your most valuable asset: your brain.

The "income ceiling paradox" occurs because execution work is inherently unscalable. There are only so many hours in a day to crunch numbers, and the market only pays a certain premium for labor. However, the market pays a massive premium for clarity.

This article breaks down the cold, hard math of Doing Investing vs. Teaching Investing. We will analyze why your effective hourly rate is likely 40% lower than you think it is, and how shifting toward a mentorship model can double your income while halving your stress.

The Economics of Doing Investing

What "Doing" Looks Like

For an investing professional, "doing" typically involves execution-heavy tasks. This might include:

• Building custom financial models or spreadsheets for clients.
• Conducting deep-dive due diligence on specific stocks or sectors.
• Managing individual brokerage accounts (Freelance Asset Management).
• Writing white-labeled market commentary for newsletters or blogs.

The Visible Rate

In the current market, a skilled freelance investment analyst or private consultant might charge anywhere from $75 to $150 per hour. On the surface, if you land a 20-hour project at $75/hour, you see a $1,500 payday. You calculate your worth based on that $75 figure. But that figure is a mirage.

The Hidden Time Tax

When you are "doing" the work, you aren't just being paid to think; you're being paid to produce. This brings a suite of "hidden taxes" that erode your take-home pay.

1. Project Management (Unpaid)

Clients rarely just hand over money and wait. There are onboarding calls, "quick" update emails, and the inevitable feedback loops.

• Estimate: Add 25% unpaid time.

2. Revisions and Scope Creep

In investing "doing," a client might ask for "one more scenario" in a financial model or a "quick update" to a report based on yesterday’s Fed announcement. These revisions are rarely billed.

• Estimate: Add 15% unpaid time.

3. Administrative Overhead

You have to invoice, track expenses, manage your own CRM, and pay for expensive Bloomberg terminals or data subscriptions (YCharts, Pitchbook, etc.).

• Estimate: Add 10% unpaid time.

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The Real Math for Investing Execution Work

Let’s look at a realistic breakdown of a "20-hour" investment research project.

Item	Actual Hours
Quoted Research & Analysis	20 hours
Initial Client Briefing & Emails	3 hours
Model Revisions & "Quick Tweaks"	5 hours
Invoicing, Data Tool Setup, & Admin	2 hours
Total actual time invested	30 hours

The Real Rate Calculation:

• Client pays: $1,500 (20 hours @ $75/hour)
• Actual hours worked: 30
• Real hourly rate: $50.00/hour

By "doing" the work, you have effectively taken a 33% pay cut before you’ve even paid your taxes.

The Economics of Teaching/Consulting Investing

What "Teaching" Looks Like

Teaching or consulting moves you from the "engine room" to the "captain’s bridge." Instead of building the spreadsheet, you are showing someone else how to build it, or explaining what the numbers mean for their specific goals.

On Sidetrain, this looks like:

• Sidetrain's 1-on-1 video sessions: 15, 30, or 60-minute calls where you review a learner's portfolio or teach them a specific strategy (e.g., "How to Sell Covered Calls").
• Sidetrain’s Digital Marketplace: Selling your proprietary valuation templates, checklists, or "How-To" guides.
• Sidetrain's Course Marketplace: Creating a video course on "Value Investing Fundamentals" that earns while you sleep.

The Visible Rate

Consulting rates are almost always higher than execution rates. Why? Because you are providing a shortcut. A learner will happily pay $150/hour to avoid a $5,000 mistake in the markets.

Why Teaching Has No Hidden Costs

• No Deliverables: When the Zoom call ends, the work is done. You don't have to "format" your advice or "revise" your conversation.
• No Scope Creep: A 60-minute session is exactly 60 minutes.
• Zero Admin on Sidetrain: Sidetrain handles the scheduling, the video hosting, and the payment processing. You don't chase invoices.

The Real Math for Investing Consulting

Item	Time
60-minute Sidetrain Mentorship Session	60 min
Pre-session review of student's questions	10 min
Total time invested	70 min

The Real Rate Calculation:

• Client pays: $150 (for a 1-hour session)
• Actual time invested: 1.16 hours
• Real hourly rate: $129.31/hour

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Head-to-Head Comparison: The Data

Effective Hourly Rate Comparison

Factor	Doing (Execution)	Teaching (Mentorship)
Quoted/Visible rate	$75/hour	$150/hour
Hidden time multiplier	1.5x	1.15x
Effective hourly rate	$50/hour	$130/hour
Annual Income (20 billable hrs/wk)	$52,000	$135,200

The data is undeniable: Teaching pays 2.6x more per hour worked.

Quality of Life Comparison

Factor	Doing Investing	Teaching Investing
Stress Level	High (Deadlines & Accuracy)	Moderate (Preparation)
Client Boundaries	Blurry (Emails at 9 PM)	Strict (Time-boxed calls)
Scalability	Zero (Linear)	High (Courses/Groups)
Burnout Risk	High (The "Treadmill")	Low (Social/Rewarding)

When Doing Makes Sense (And When It Doesn't)

Execution work isn't "bad"—it's just a different tool. You should keep "doing" when:

1. You need to build a track record: You cannot teach what you haven't done.
2. The project is high-stakes/high-reward: Managing a $10M fund pays better than teaching, but that is the top 0.1% of the field.
3. You love the craft: If you genuinely enjoy the 2 AM spreadsheet grinds, keep a few clients.

You should shift to teaching when:

• You find yourself explaining the same concept (e.g., "What is an EBITDA multiple?") to every client.
• You feel like a "glorified data entry clerk" for your clients.
• You want to disconnect your income from your physical labor.

How to Make the Transition on Sidetrain

Step 1: Identify Your "Knowledge Alpha"

What is the one thing you know better than 90% of people?

• Is it analyzing REITs?
• Is it navigating crypto tax laws?
• Is it technical analysis for day trading?

Step 2: Productize Your Brain

Don't just sell "time." Sell outcomes.

• Session A: "Portfolio Audit: Identify the Laggards in Your Retirement Account."
• Session B: "Options 101: How to Generate Income with Covered Calls."
• Digital Product: "The Ultimate Small-Cap Due Diligence Checklist" via Sidetrain's Digital Marketplace.

Step 3: Set Your Rate

Start by matching your current execution rate. If you usually bill $100/hour for research, charge $100 for a Sidetrain 1-on-1 video session. You will immediately notice that the $100 feels like "more" because there is no follow-up work required.

The Hidden Benefits of Teaching

Beyond the money, teaching makes you a better investor.

1. The Feynman Technique: Explaining complex market dynamics to a beginner forces you to simplify your own mental models. If you can't explain it simply, you don't understand it well enough to trade it.
2. Authority Building: Being a "Mentor" on Sidetrain carries more prestige than being a "Freelancer" on a general job board. It positions you as an expert, allowing you to charge premium rates for your remaining execution work.
3. Networking: Many mentors find that their "students" are actually high-net-worth individuals or founders who eventually offer them lucrative partnerships or "inside" opportunities.

The Verdict: Which Pays Better?

On a pure hourly basis, Teaching Investing wins by a landslide.

By eliminating the "hidden time tax" of revisions, project management, and administrative overhead, you reclaim 30-50% of your life. When you add the ability to scale via Sidetrain Group Sessions or Sidetrain’s Course Marketplace, the earning potential becomes exponential rather than linear.

The real question isn't whether teaching pays more—it's whether you're ready to stop selling your hands and start selling your head.

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