#High-yield debt investments

[citizencapital]

Debt Investments: Join Our Exclusive Free Live Webinar !

#debt investments #real estate debt #types of debt investments #investing in debt meaning #current market yield #REAL ESTATE INVESTMENT OPPORTUNITIES #alternative real estate investment #Investment opportunities #Debt investment strategies #Maximizing yields in the current market #Debt investment guide #Exploring debt investment options in the current market #Investing in debt for higher returns #Current market opportunities #Roadmap for investing #debt investment in the current market #High-yield debt investments #Yield Opportunities

[zvaigzdelasas]

It was in the spirit of Christmas-giving that OCD [“Operation Christmas Drop.”] began over half a century ago. Andersen Air Force Base (Guam) is now the basecamp for a range of U.S. military interservice, community/volunteer-supported, regional allies and partners events that delivers mostly school supplies, clothing, rice, fishing equipment, and toys. OCD is estimated to impact 20,000 people in the Federated States of Micronesia and Palau. For a host of reasons, Operation Christmas Drop has become window-dressing for a romanticized, fossilized view of U.S. assistance and Pacific islanders. This high-profile media event masks nearly a century of U.S. under-development in Micronesia. Against the backdrop of the FSM and Palau being heavily indebted and dependent on U.S. funds and identified as relationships the U.S. has taken for granted, it is possible that the Grinch is propping up this Christmas event. It is the U.S. under-development of the region (OCD notwithstanding) that contributes to the welcoming that Chinese economic investment has received. Although Chinese development debt trap diplomacy in the region has been flagged as a concern by some, in Micronesia, there is a continuum of underdevelopment and dependency overseen by the U.S. It is not unusual for countries to create and tell stories about themselves. Great powers spin self-promoting projections and try to shape how the world works. In this narrative frame, OCD is a “heritage of generosity” to help out “remote islands” and is the “longest-running humanitarian airlift in the world.” The narrative gaps in this story, however, are glaring.[...]

The FSM and Palau are approaching 40 years of a freely associated state (FAS) status, a relationship the U.S. legally regards as “special” and “highly privileged.” The basic parameters of this relationship have been (1) an arguably subsistence level of U.S. financial support for the FAS in exchange for (2) U.S. military access and rights of strategic denial in the FAS. The U.S. has what it seeks in the relationship, but this has not been a balanced equation. Over three decades as part of the “Trust Territory of the Pacific Islands” overseen by the United States under the United Nations yielded little in the way of development. Four decades as “Freely Associated States” has rendered little more in the way of sustainable economic activity.

Stimulating and supporting local economic development in Micronesia does not seem to have ever been a U.S. goal in its special relationship with the region. If it was, it has been a dismal failure. Not surprisingly then, built into the relationship with the U.S. is the “safety valve” of an open border to the U.S. for Micronesians who find little opportunity at home. For FAS citizens, the real benefits of the relationship only seem to gain fruition when they leave their homelands to find work, education, and the benefits of U.S. social welfare programs in the United States.[...]

After two U.S.-led Pacific Island Summit in two years, promises of aid and regional reengagement, and renegotiations of the Compacts of Free Association (COFA), the U.S. has not delivered. At the recent Pacific Island Forum meeting, the head of the U.S. delegation “pledged to work with Congress to provide over $8 billion in new funding and programs for the Pacific.”

Never mind that the U.S. had not delivered the prior year pledges, or that over $7 billion of the new funding was for the COFA economic packages. Yet, even these subsistence COFA economic packages have not yet been approved, leading to the FSM saying they face a “fiscal cliff.” Increasingly agitated parties in Washington are heralding that the loss of COFA funding would present an opportunity for the CCP to expand its economic influence. Even efforts to prioritize new funding for the COFA states in the U.S. National Defense Authorization Act failed in late November[...]

Put simply, the Christmas Drop, as good as it may feel, is not a substitute for a failed U.S. economic policy in the region. Sadly, even the anticipated renewal of the COFA economic packages sometime in 2024 will not change the condition of underdevelopment in Micronesia. There is no realistic plan for regional development. While some in Washington decry expanding Chinese economic influence in Micronesia, few understand that it is U.S. policy that has created the hospitable environment for Chinese effect.

Setting a low bar for yourself—that you clear with fables—works only as long as everyone believes your story and is happy with it.

The U.S. relationship in the Pacific region in general — and the COFA states in particular — have outgrown the Santa narrative. And the region is watching. It is not yet clear that Washington understands this. Most Pacific Island states, of course, will be grateful for any new levels of U.S. funding. That does not make them believers in Santa. It also does not mean that they will shun support from other interested parties.

22 Dec 23

[financeprincess]

advice for people just wanting to be educated in the finance field?

I would start dipping your toe in the finance sections of reputable sources (i.e. Financial Times, Wall Street Journal, Harvard business review, MarketWatch, etc.) and start researching terms and companies you don’t know. I treat myself with a Bloomberg Businessweek subscription sent to my home because I love their design team and it’s actually very informative. You can also sign up for the Morning Brew finance newsletter, it’s free and I read it every morning to get a brief overview of what’s going on. Even just being informed of current events is helpful in learning about finance because all major events effect the market and businesses. Look at stock performance charts. Learn about different types of investment accounts and different kinds of investments. There are a lot of really great courses on platforms like Coursera as well, I just took one called Private Equity & Venture Capital from Università Bocconi. Flirt with equity crowdfunding platforms (I accidentally made a lot of money on one of these as an early investor with less than $1k). If you live in the US start looking into personal and business tax deductions. Even credit card rewards can actually get you a lot, I’ve gotten free hotel rooms and free flights from money I would have spent anyway. Investments also mean more than just individual stocks: could be index funds, mutual funds, bonds, CDs, REITs, forex, precious gems & metals, real estate, even some designer goods retain and increase in value if bought strategically and handled correctly. Even just having the fundamentals of a maxed out retirement account (a Roth IRA or a backdoor Roth IRA is my personal preference) full of index funds and mutual funds that are balanced well, a fully funded emergency fund of 3-12 months personal expenses, any debt above 7% interest paid off, and sinking funds for various expenses automatically set up in a high yield savings account will have you very well off. When you have a foundation like that you have the breathing room to change careers, take time off, buy investment properties, invest in volatile but potentially profitable ventures, start businesses, and set up additional streams of income.

#i am not a financial advisor but this is what I’ve learned from school and self education and personal trial and error #i think I’m gonna do a detailed finance books list if y’all would like that I think it could be very useful

[cazort]

I see a disturbing number of people, mostly millennials, these days, who have significant incomes and are starting to amass significant savings, who have terrible financial management skills. People who live at home with parents and get a full time job can accumulate money really fast. A lot of people are letting huge amounts of money, like sometimes as much as $20,000 or more, accumulate in checking accounts where it is earning either no interest or negligible interest.

Because inflation is high (over 3% these days), you are effectively losing money when it sits there. Also you're allowing the bank to profit off it; it's lending your money out to other people, often at interest rates as high as 6-7% or more, and it's not paying you for it.

If you have more than maybe around $3000 dollars in an account, you want that money earning interest. Here are things you can do to earn more from your money:

Open a savings account at a higher yield. Go to a different bank if necessary. CIT Bank has rates around 5% these days.

Pay off high interest rate debt but not low-interest rate debt. If the interest rate is above about 7-8% definitely make it a priority to pay it off ASAP. If it is above 5% it is still better to pay it off than to sit on your money. If it is much below 5%, pay it off as slowly as possible (minimum payment only) because there are risk-free ways to earn more interest on your money.

If you don't need the money in the short-term, consider a CD (Certificate of Deposit) which offers a fixed interest rate over a certain time. Often you can get a slightly higher rate by tying your money up for 3 months or 6 months or sometimes even longer. These are good options if you have a specific expenditure in your future, like perhaps moving or buying a home, but you know it won't happen until after a certain date.

Open a brokerage account. Brokerage accounts allow you to buy and sell investments such as stocks, mutual funds, or bonds, which include CD's from banks as well as treasury and municipal bonds and corporate bonds. You get more options for buying CD's (i.e. you can compare many different banks side-by-side, buy CD with the best rate, and manage multiple CD's within a single interface.) Most brokerage accounts have no fees and typically no or very low minimum investments. There is no reason not to have one if you have a few thousand dollars.

In a brokerage account, buy a money market mutual fund. Look for one with no load and no transaction fee, a high yield, and a low expense ratio, and a fixed share price of $1 per share. My two favorite are SWVXX and SNSXX. SWVXX has a higher yield (about 5.19%) whereas SNSXX has a lower yield (just over 5%) but is non-taxable on state income taxes, so SNSXX is a better choice if you have a high state tax rate, otherwise SWVXX is better.

Consider opening a Roth IRA if you haven't, and then, if able, contribute the maximum amount each year. You are allowed to make a contribution that counts towards the previous year, up until the tax filing deadline of the current year. So for example today it is Mar. 14th, 2024, so you can open a Roth IRA today and contribute the max ($6,500) for the 2023 year and also the max ($7,000) for 2024, for a total of $13,500. The main advantage of a Roth IRA is that the money in them can grow tax-free. Roth IRA's benefit anyone able to have one (the richest people are not allowed to contribute to them) and are especially important for people who are self-employed, change jobs a lot, or never work full-time, so they don't have a consistent employee-provided retirement plan.

Consider investing in stocks. Stocks are riskier (in that their price changes, and you can lose money when investing in them), but tend to have a higher yield than savings and money market accounts and funds. The simplest way to buy stocks is to buy an ETF (exchange-traded-fund). I recommend buying one that follows the S&P 500 and has a low expense ratio like SPY or VOO. Whatever you buy, reinvest the dividends and let it grow, contribute a little money every year so are putting in money even in years the market is down. On average you get about a 10% return in the market but it is unpredictable and you will lose in some years, but that's okay, you're not retiring for many decades and the money will have grown a lot by then.

There are options regardless of your risk profile. It is throwing your money away to let a lot of money sit in a checking account. At a bare minimum, go for a high-yield savings account, CD, or better yet get a brokerage account, put it in high-yield money market funds like SWVXX, shop around for CD's or other bonds with the highest rates, and if you are able to tolerate some risk and want a higher return, consider putting some money in more aggressive investments like stocks.

I am 100% for tax reform and other reform to curb the extreme concentration of wealth in the hands of a few, but it's also important to take your financial situation into your own hands. Get financially comfortable. Get a stake in the US economy. Empower yourself so you can live better and help your family, friends, and the causes you care about.

#financial advice #personal finance #financial management #money management #cash management

[naturalrights-retard]

In the international fixed-income markets, interest rates are rising, and the decades-long trend of declining bond yields has undoubtedly been broken. On August 2, 2022, the ten-year United States Treasury yield was 0.5 percent; on October 9, 2023, it had risen to 4.8 percent. Long-term interest rates in Europe, Asia, and Latin America have also risen sharply. The key reason for the rise in capital market interest rates is the central banks’ interest rate hikes—a direct response to sky-high inflation (caused by the central banks themselves, following a huge increase in the quantity of money).

Figure 1: Ten-year US Treasury bond yield with constant maturity from January 1981 to October 11, 2023 (percent)

picture1.png

Source: FRED. Data from the Board of Governors of the Federal Reserve System.

Initially, financial markets expected only a relatively short phase of increased interest rates. At the beginning of March 2022, the US long-term interest rate fell below the short-term yield—so the yield curve became “inverted,” a clear indication that investors expected short-term interest rates to be cut sooner rather than later.

However, since July 2023 at the latest, long-term interest rates have been rising strongly and unabatedly. Something very fundamental has presumably happened—investors are no longer willing to hold US government debt at ultra-low yields as before. Where did the change of heart come from?

Investors may have become increasingly aware of the enormous debt problem in the US, which investors had taken lightly for so long: Uncle Sam is sitting on a mountain of debt worth more than thirty-three trillion US dollars, which is equivalent to around 123 percent of US gross domestic product (GDP). Plus, the debt dynamic is relentless: by the end of the decade, the debt could reach fifty trillion US dollars. Previous large buyers of US debt—such as Japan, China, Brazil, Russia, and Saudi Arabia—are no longer interested. Who will buy the huge flood of new US government bonds intended to finance deficits of around 6 percent of GDP in the coming years?

It appears that the US administration has squandered a lot of investor confidence, not least by freezing Russia’s foreign reserves at the beginning of 2020. It has since become abundantly clear to many investors from non-Western countries that US investments carry a political risk for them. Therefore, anyone who holds US dollars or invests in US debt securities demands a higher interest rate. It’s not just the US feeling the effects of this interest rate shock; the rest of the world isn’t spared either. The increased credit costs will make life difficult or even unaffordable for many debtors—consumers and producers.

[exitrowiron]

Investing 101

Part 3 of ?

In the first installment of this series I discussed stocks. Stocks are also referred to as Equities, because if you own a company's stock, you own Equity in the company. Stocks entitle you dividends and you can benefit from growth of the stock price. But stocks can be volatile. Fortunately there are other securities you can purchase which usually offer less risk.

Bonds, are essentially loans made to companies and government entities. Bonds can have a variety of maturities (i.e. length of time until the loan is repaid) and interest rates. Companies can issue bonds instead of getting a loan from a bank. Likewise, government entities (ex. cities, counties, school districts, states and the US Treasury) issue bonds. A school district might issue a bond to build a new high school; a state might issue bonds to build a new tollway. The US Treasury issues bonds to fund the operations of the government. For as long as you've been an adult, you've heard about the US Budget Deficit, right? But do you know what it is? The budget deficit is simply the yearly government spending which exceeds the government's revenue (taxes). The sum of all the annual budget deficits is called the National Debt. The US Treasury issues bonds throughout the year to borrow the money necessary to fund the budget deficit. The interest on government bonds is usually tax exempt - that makes them a favorite of people who want to lower their tax bill. Because government bonds are tax exempt, they pay lower interest than a comparable corporate bond.

In general, bonds have lower risk than equities and pay interest regularly. With the exception of US Treasuries, bonds can be less liquid - i.e. take longer to sell in the event you need your cash back immediately. Bonds are also usually considered lower risk than equities, so an investor might purchase them to lower the overall risk in his/her portfolio (more on that later).

Each bond pays a fixed interest rate for the life of the bond (ex. 4%), but the price of the bond can go up and down based on market demand. On the day of issuance, let's assume you bought a 10 year, corporate $100 bond paying 4% interest. You paid the corporation $100 and every year for 10 years you will receive 4% interest and at the end of 10 years the company will repay the $100. If you wanted to sell the bond the next day, you could probably sell it to someone else for $100. Because you can sell for it face value, the Yield is the same as the interest rate. Let's also assume that 1 year later the company's only factory burned in a fire and it wasn't insured. It is much less likely that the company will be able to repay the bond you bought. If you tried to sell the bond to someone else, you'd probably have to discount the bond - perhaps sell it for $80 instead the $100 you paid. Now the Yield has declined, even though the interest rate is still 4%. Conversely, assume the factory never burned and instead the stock market tanked. Now everyone is desperate for an investment paying 4% and is willing to pay $120 for you $100 bond (an exaggeration to be sure); in this case the Yield on your bond has increased above the 4% interest.

The safety of bonds is measured and reported by rating agencies and impacts the price/yield. The bonds of companies which are less likely to be able to repay are rated lower than those with strong earnings and cash flow. Lower rated bonds have more risk, but they have higher interest rates and yields. Junk Bonds are bonds issued by high risk companies. Investors can make a bunch of money from junk bonds, but they can lose their investment too. (The 2008-09 financial crisis was caused in part by rating agencies not accurately reporting the risk associated with bonds composed of home mortgages.)

Historically, a broad portfolio of equities will generate greater returns over the medium/long term than a bond (debt) portfolio. If you have a long investment horizon (ex. >5 years) you want to invest in stocks. Occasionally, however, the stock market will have correction or there will be a recession etc and the stock market will drop. If you need cash during one of those periods and have to sell your stocks, you're going to sell at the bottom of the market and lose money. For this reason, investments with a short time horizon tend to favor bonds; the price (yield) of bonds is generally less volatile and you can count on the cash flow of regular interest payments. That's why as investors age, they start to shift the balance of their portfolio from equities to bonds. If I'm 70 years old and the market tanks, I can't wait 5 years for the market to recover; so I'm going to keep more of my money in bonds. The return on my bond investments is low, but so is the risk.

Only 12 people or so are reading these things, so if you have questions please ask.

[bitchesgetriches]

Bitches I need advice. I'm about to inherit a large chunk of money that's been in limbo since my grandmother's death. I'm 21, about to graduate college with very little debt, and don't have any savings goals beyond paying rent and possibly a new-to-me car when mine finally shits the bed. I don't know what to do with the money! Typically I'm very cautious, so I don't feel comfortable investing. Is just a high-yield SA and maybe a CD good enough?

My darling child, this is a wonderful problem to have! And we're very proud of you for thinking it through carefully. You have a lot of options!

I think putting it in a HYSA and/or a CD for the time being is just fine. Especially if you'd like some time to think about your options. Remember that the HYSA will give you ease of access whereas the CD will keep it locked away for a fixed period.

We did a whole podcast episode on a similar question, and I think the discussion might help (transcript in the link):

Season 3, Episode 2: "I Inherited Money. Should I Pay Off Debt, Invest It, or Blow It All on a Car?"

[female-malice]

Manifesto for an Ecosocial Energy Transition from the Peoples of the South

An appeal to leaders, institutions, and our brothers and sisters

More than two years after the outbreak of the COVID-19 pandemic—and now alongside the catastrophic consequences of Russia’s invasion of Ukraine—a “new normal” has emerged. This new global status quo reflects a worsening of various crises: social, economic, political, ecological, bio-medical, and geopolitical.

Environmental collapse approaches. Everyday life has become ever more militarized. Access to good food, clean water, and affordable health care has become even more restricted. More governments have turned autocratic. The wealthy have become wealthier, the powerful more powerful, and unregulated technology has only accelerated these trends.

The engines of this unjust status quo—capitalism, patriarchy, colonialism, and various fundamentalisms—are making a bad situation worse. Therefore, we must urgently debate and implement new visions of ecosocial transition and transformation that are gender-just, regenerative, and popular, that are at once local and international.

In this Manifesto for an Ecosocial Energy Transition from the Peoples of the South, we hold that the problems of the Global – geopolitical – South are different from those of the Global North and rising powers such as China. An imbalance of power between these two realms not only persists because of a colonial legacy but has deepened because of a neocolonial energy model. In the context of climate change, ever rising energy needs, and biodiversity loss, the capitalist centers have stepped up the pressure to extract natural wealth and rely on cheap labor from the countries on the periphery. Not only is the well-known extractive paradigm still in place but the North’s ecological debt to the South is rising.

What’s new about this current moment are the “clean energy transitions” of the North that have put even more pressure on the Global South to yield up cobalt and lithium for the production of high-tech batteries, balsa wood for wind turbines, land for large solar arrays, and new infrastructure for hydrogen megaprojects. This decarbonization of the rich, which is market-based and export-oriented, depends on a new phase of environmental despoliation of the Global South, which affects the lives of millions of women, men, and children, not to mention non-human life. Women, especially from agrarian societies, are amongst the most impacted. In this way, the Global South has once again become a zone of sacrifice, a basket of purportedly inexhaustible resources for the countries of the North.

A priority for the Global North has been to secure global supply chains, especially of critical raw materials, and prevent certain countries, like China, from monopolizing access. The G7 trade ministers, for instance, recently championed a responsible, sustainable, and transparent supply chain for critical minerals via international cooperation‚ policy, and finance, including the facilitation of trade in environmental goods and services through the WTO. The Global North has pushed for more trade and investment agreements with the Global South to satisfy its need for resources, particularly those integral to “clean energy transitions.” These agreements, designed to reduce barriers to trade and investment, protect and enhance corporate power and rights by subjecting states to potential legal suits according to investor-state dispute settlement (ISDS) mechanisms. The Global North is using these agreements to control the “clean energy transition” and create a new colonialism.

Governments of the South, meanwhile, have fallen into a debt trap, borrowing money to build up industries and large-scale agriculture to supply the North. To repay these debts, governments have felt compelled to extract more resources from the ground, creating a vicious circle of inequality. Today, the imperative to move beyond fossil fuels without any significant reduction in consumption in the North has only increased the pressure to exploit these natural resources. Moreover, as it moves ahead with its own energy transitions, the North has paid only lip service to its responsibility to address its historical and rising ecological debt to the South.

Minor changes in the energy matrix are not enough. The entire energy system must be transformed, from production and distribution to consumption and waste. Substituting electric vehicles for internal-combustion cars is insufficient, for the entire transportation model needs changing, with a reduction of energy consumption and the promotion of sustainable options.

In this way, relations must become more equitable not only between the center and periphery countries but also within countries between the elite and the public. Corrupt elites in the Global South have also collaborated in this unjust system by profiting from extraction, repressing human rights and environmental defenders, and perpetuating economic inequality.

Rather than solely technological, the solutions to these interlocked crises are above all political.

As activists, intellectuals, and organizations from different countries of the South, we call on change agents from different parts of the world to commit to a radical, democratic, gender-just, regenerative, and popular ecosocial transition that transforms both the energy sector and the industrial and agricultural spheres that depend on large-scale energy inputs. According to the different movements for climate justice, “transition is inevitable, but justice is not.”

We still have time to start a just and democratic transition. We can transition away from the neoliberal economic system in a direction that sustains life, combines social justice with environmental justice, brings together egalitarian and democratic values with a resilient, holistic social policy, and restores an ecological balance necessary for a healthy planet. But for that we need more political imagination and more utopian visions of another society that is socially just and respects our planetary common house.

The energy transition should be part of a comprehensive vision that addresses radical inequality in the distribution of energy resources and advances energy democracy. It should de-emphasize large-scale institutions—corporate agriculture, huge energy companies—as well as market-based solutions. Instead, it must strengthen the resilience of civil society and social organizations. Therefore, we make the following 8 demands:

We warn that an energy transition led by corporate megaprojects, coming from the Global North and accepted by numerous governments in the South, entails the enlargement of the zones of sacrifice throughout the Global South, the persistence of the colonial legacy, patriarchy, and the debt trap. Energy is an elemental and inalienable human right, and energy democracy should be our goal.

We call on the peoples of the South to reject false solutions that come with new forms of energy colonialism, now in the name of a Green transition. We make an explicit call to continue political coordination among the peoples of the south while also pursuing strategic alliances with critical sectors in the North.

To mitigate the havoc of the climate crisis and advance a just and popular ecosocial transition, we demand the payment of the ecological debt. This means, in the face of the disproportionate Global North responsibility for the climate crisis and ecological collapse, the real implementation of a system of compensation to the global South. This system should include a considerable transfer of funds and appropriate technology, and should consider sovereign debt cancellation for the countries of the South. We support reparations for loss and damage experienced by Indigenous peoples, vulnerable groups and local communities due to mining, big dams, and dirty energy projects.

We reject the expansion of the hydrocarbon border in our countries—through fracking and offshore projects—and repudiate the hypocritical discourse of the European Union, which recently declared natural gas and nuclear energy to be “clean energies.” As already proposed in the Yasuni Initiative in Ecuador in 2007 and today supported by many social sectors and organizations, we endorse leaving fossil fuels underground and generating the social and labor conditions necessary to abandon extractivism and move toward a post-fossil-fuel future.

We similarly reject “green colonialism” in the form of land grabs for solar and wind farms, the indiscriminate mining of critical minerals, and the promotion of technological “fixes” such as blue or grey hydrogen. Enclosure, exclusion, violence, encroachment, and entrenchment have characterized past and current North-South energy relations and are not acceptable in an era of ecosocial transitions.

We demand the genuine protection of environment and human rights defenders, particularly indigenous peoples and women at the forefront of resisting extractivism.

The elimination of energy poverty in the countries of the South should be among our fundamental objectives—as well as the energy poverty of parts of the Global North—through alternative, decentralized, equitably distributed projects of renewable energy that are owned and operated by communities themselves.

We denounce international trade agreements that penalize countries that want to curb fossil fuel extraction. We must stop the use of trade and investment agreements controlled by multinational corporations that ultimately promote more extraction and reinforce a new colonialism.

Our ecosocial alternative is based on countless struggles, strategies, proposals, and community-based initiatives. Our Manifesto connects with the lived experience and critical perspectives of Indigenous peoples and other local communities, women, and youth throughout the Global South. It is inspired by the work done on the rights of nature, buen vivir, vivir sabroso, sumac kawsay, ubuntu, swaraj, the commons, the care economy, agroecology, food sovereignty, post-extractivism, the pluriverse, autonomy, and energy sovereignty. Above all, we call for a radical, democratic, popular, gender-just, regenerative, and comprehensive ecosocial transition.

Following the steps of the Ecosocial and Intercultural Pact of the South, this Manifesto proposes a dynamic platform that invites you to join our shared struggle for transformation by helping to create collective visions and collective solutions.

We invite you to endorse this manifesto with your signature.

#cc

[coochiequeens]

Ladies, let’s encourage each other to build our savings.

By the age of 25, Tori Dunlap had saved $100,000 and used the money to start a company, called Her First $100K. Three years later, the personal finance educator boasts more than 2 million TikTok followers, a No. 1-rated podcast, and a book scheduled for release later this year: “Financial Feminist: Overcome the Patriarchy’s Bullsh*t to Master Your Money and Build a Life You Love.” 

Dunlap says she’s now financially independent — a goal that she believes all women should achieve. While Dunlap’s purpose is to help women pay off debt, save money and invest wisely, her advice also applies to men.

A strong financial foundation is essential, Dunlap says, to provide the freedom to leave toxic work environments and other unhealthy situations. “I want every woman to feel financially confident,” she adds. “It’s so important to get a financial education. The goal is to use money as a tool to build a better life for you, your family, and your community.” 

1. Money is an uncomfortable topic for many women: The first step is to get more women to talk about money. “According to statistics, men are more likely to talk about money than women,” Dunlap says. “Women will talk about sex, death and religion more than they do about money, and I’m working to change that.”  

2. Create an emergency fund: One of the most important financial goals is to create an emergency fund. “You need at least three months of living expenses in a high-yield savings account,” Dunlap advises. “Start putting money aside that will supplement your income in case of an emergency.” 

3. Pay yourself first: A top priority, Dunlap says, is to pay yourself first. “Treat your future self like another bill,” she says. “Then you’ll be able to save that money and put it on autopilot without having to think about it. I sometimes joke that many people give Netflix more money each month than they are giving themselves. I’m not saying to cancel Netflix, but you deserve to give yourself at least the amount of money you pay for movies.” 

4. Set up an automatic transfer: Dunlap is a big believer in automatic transfers. “Regardless of how much debt you have, set up an automatic transfer from your checking account to your 401k, IRA (Individual Retirement Account), or savings account every week or month, or set up a direct deposit from your paycheck. Also, autopay your bills as much as you can. You want to automate your financial life as much as possible to make it easy to save money.”

5. Count on index funds: Like many financial experts, Dunlap recommends creating a long-term investment strategy. “The beautiful part about thinking of investing as a long-term commitment is that the strategy doesn’t change so it’s way less work because you’re not managing it all of the time.” 

“I’m not thinking of next week or next year but 10-, 20- or 30 years from now,” she says. “There are going to be peaks and valleys. The most important part is to manage your emotions. For me, investing should not be sexy. That is why I will invest in index funds until I die.” Her personal favorite is Vanguard Total Stock Market ETF VTI, -0.19%.  

During a bear market or recession, Dunlap doesn’t change her index-buying strategy. “I stay the course,” she says. “During a down market, index funds are on sale. I’m also thinking strategically about building a bigger emergency fund. If you don’t have an emergency fund or one that will supplement you, then increase your income by negotiating for a raise, or getting a secondary source of income even if it’s a couple of hours a week.” 

In the media, for example, financial advice for men, Dunlap says, is geared towards investing, wealth building, negotiating salaries and buying real estate. In contrast, financial articles for women, she says, “are about deprivation, such as ‘You are not rich because you don’t work hard enough, you are a frivolous spender, or you buy too many lattes or avocado toast.’ This is not true!” 

Dunlap is determined to change that stereotype. “I want women to grow their wealth as opposed to shrinking smaller. I need them to make strategic decisions about their money rather than minimizing spending. All of the advice on deprivation don’t work (one of the reasons most diets don’t work). The goal is to find that balance between spending and saving.” 

Dunlap says many women don’t realize that investing is a two-step process. Step one is to deposit money into a retirement-oriented investment account such as an IRA or 401k. Step two is to choose an investment, such as a stock- or index fund. Says Dunlap: “Too many women miss step two and the money sits in financial purgatory, not earning interest. This may be obvious to financial reporters but so many women I meet never purchased an investment. No one taught them how to do it.” 

Dunlap also advocates “value-based spending” — figuring out what you truly value and spending the majority of your discretionary income on those things. “I tell people that you don’t have to stop spending money,” she says. “Just stop spending money on things you don’t care about.” 

Michael Sincere (michaelsincere.com) is the author of “Understanding Options” and “Understanding Stocks.” His latest book, “How to Profit in the Stock Market” (McGraw-Hill, 2022) is aimed at sophisticated traders and investors.  

More: Hear from Carl Icahn at the Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York. The legendary trader will reveal his view on this year’s wild market ride.

#Women and money #tori dunlap #Financial feminist

[notfinancialadvice]

72 seconds of non-data entry mode to ramble something

I am doing data entry and I need to take a break for a moment.

Here is your irregular reminder that you do not build wealth investing -- you grow wealth (or if you do not have wealth, then money) with investing.

This is an extremely overlooked and unfucking believably important difference.

You should only invest the cash you are comfortable saying good bye to for years, and possibly forever, should everything go to hell with your stock picks (or significantly preferably: your fund picks that track an index, industry, etc.)

If you do not have money like that, then you should invest in a high-yield savings account that is FDIC insured (study these terms at nerdwallet or similar)

If you do have money like that but are not comfortable, see above

I see so many goddamn fucking "you should invest if you want to retire someday"

(waves hi from 2008 financial crisis still affecting the world today)

It should be:

You should take care of your day-to-day

You should structure non-housing debt as much as possible so the highest interest rates (typically credit cards) are paid off as possible

You should keep an eye on who is charging you monthly fees and seek to minimize them as much as possible on all levels -- if you are charged a late fee continuously for XYZ bill, is there something you can do to alter this? -- even if it is a small fee

If you have a mortgage, as possible, you should factor in 1 extra payment per year (1 month of payment divided by 12 = the amount you add to your monthly payment explicitly and exclusively to the principle)

(-- if you cannot do this due to finances and/or your bank does not allow you to, then take this amount and put it into a high-yield savings account every month so it grows in parallel to your mortgage, and can be tapped someday to pay off the balance, when savings = said end balance)

etc.

and advice should always include regular reminders the system is rigged to benefit you when you have cash and break you when you do not

and so the times when you do not are extremely unlikely to be a moral or ethical failing

i.e.

any guilt you feel over this is very likely a result of various market and marketing forces to make you feel like shit in order to

drum roll please

make someone else money because

drum roll crescendo

the system is rigged to benefit those with cash

protect yourself financially + mentally

guilt is not profitable to your personal financial situation

okay back to work I've gotta data entry now

[isaacgodo]

Mastering Personal Finances: A Comprehensive Guide to Creating a Budget

Godo Isaac

July 9, 2023

Introduction: In our quest for personal improvement, financial success plays a pivotal role. One of the fundamental steps towards achieving financial stability and reaching our goals is by creating a budget and managing our personal finances effectively. In this blog post, we will explore the importance of budgeting, provide practical tips for creating a budget, and offer insights into managing personal finances like a pro.

Understanding the Importance of Budgeting: Budgeting serves as a roadmap for our financial journey. It empowers us to take control of our money and make informed decisions. By tracking our income, expenses, and savings, we gain valuable insights into our spending habits and identify areas where we can improve.

2. Setting Financial Goals: To create a successful budget, start by setting realistic and measurable financial goals. Whether it’s building an emergency fund, saving for a down payment on a house, or planning for retirement, having clear objectives provides direction and motivation.

3. Tracking Income and Expenses: Take a close look at your income sources and categorize your expenses. Understanding your cash flow is crucial for effective financial management. Identify areas where you can reduce expenses, such as dining out or entertainment, and allocate those savings towards your goals.

4. Creating a Budget: Now it’s time to create your budget. There are various budgeting methods to choose from, such as the 50/30/20 rule or zero-based budgeting. Find a method that suits your needs and preferences. Allocate a portion of your income towards needs, wants, and savings. Be diligent in sticking to your budget and make adjustments as necessary.

5. Managing Debt: Debt can be a significant obstacle to financial success. Develop strategies to manage and eliminate debt effectively. Consider approaches like the debt snowball or debt avalanche methods. Explore opportunities to negotiate lower interest rates or seek professional assistance if needed.

6. Building an Emergency Fund: An emergency fund acts as a safety net during unexpected financial crises. Aim to build a fund that covers 3-6 months of living expenses. Start by setting aside a small amount each month and automate your savings contributions. Over time, your emergency fund will grow, providing peace of mind and financial security.

7. Saving and Investing: Saving and investing are key components of personal financial growth. Explore different savings vehicles like high-yield savings accounts or certificates of deposit. Consider investing in stocks, bonds, or mutual funds for long-term wealth accumulation. Take advantage of compound interest and diversify your investment portfolio.

8. Reviewing and Adjusting the Budget: Regularly review your budget and make adjustments as needed. As circumstances change, your financial goals may evolve. Stay proactive and ensure that your budget aligns with your current needs and aspirations. Track your progress, celebrate milestones, and make the necessary modifications to your spending and savings plans

9. Seeking Professional Financial Advice: In complex financial situations, seeking professional advice can be invaluable. Consider consulting a reputable financial advisor or certified financial planner. They can provide tailored guidance based on your unique circumstances and help you make informed decisions.

Conclusion: By embracing the art of budgeting and effectively managing our personal finances, we take control of our financial future. Creating a budget empowers us to make intentional choices, reduce stress, and work towards our financial goals. Start today by understanding the importance of budgeting, setting clear objectives, and tracking your income, expenses, and savings. With commitment and discipline, financial success is within reach.

#Be your financial manager

[jechristine]

You’re 100% correct, once you have a substantial amount of money, buying with credit could actually benefit you bc your interest rates will be really low since you’re a high net worth individual. That way you put most of your money in profitable investments and they’ll yield a nice return that can cover the cost + interest of the house (or whatever you’re buying) and you’ll have made money by the time you’ve paid it completely .

I work in private banking in Brasil and even though I’m financially stable (that’s such a privilege these days 😪), It was definitely wild to realize that credit is a scary thing for 99.99% of people bc we fear being in debt. Rich people don’t fear taking out loans bc it could actually MAKE them money 🥴.

Thanks for this ask! Yeah, that’s how I think of it. Rich people make money saving and spending. Capital makes capital even as it consumes. Up is down, down is up, where are the pitchforks?

A side note, but when people are so sympathetic to the hardships that celebrities experience due to fame, they might consider that the extremely rich of these people can retire at any moment, chase happiness or their bliss or whatever, hang out with their babies and dogs or pay someone else to do that, and let their money earn money for them for the rest of their lives. Most of them would be able to get the anonymity back, or much of it, eventually. Every day they’re choosing not to.

…but too much reality, where’s Pistachio?

[argumate]

First, governments directly interfere in the banking sector. By issuing credit guarantees, they effectively take control of the creation of broad money and steer investment where they want it to. Then, the government would aim for a consistently high growth rate of money, but not too high. Again, history shows us the pattern: The UK had five big banks after World War II, and at the beginning of each year the government would tell them by what percentage rate their balance sheet should grow that year. By doing this, you can set the growth rate of broad money and nominal GDP. And if you know that your economy is capable of, say, 2% real growth, you know the rest would be filled by inflation. As a third prerequisite you need a domestic investor base that is captured by the regulatory framework and has to buy your government bonds, regardless of their yield. This way, you prevent bond yields from rising above the rate of inflation. All this is in place today, as many insurance companies and pension funds have no choice but to buy government bonds.

What tells you that this is in fact happening today?

When I see that we are headed into a significant growth slowdown, even a recession, and bank credit is still growing. The classic definition of a banker used to be that he lends you an umbrella but would take it away at the first sight of rain. Not this time. Banks keep lending, they even reduce their provisions for bad debt. The CFO of Commerzbank was asked about this fact in July, and she said that the government would not allow large debtors to fail. That, to me, was a transformational statement. If you are a banker who believes in private sector credit risk, you stop lending when the economy is headed into a recession. But if you are a banker who believes in government guarantees, you keep lending. This is happening today. Banks keep lending, and nominal GDP will keep growing. That’s why, in nominal terms, we won’t see an economic contraction.

[naturalrights-retard]

(Mises)—Those who have been predicting a recession in the United States and an associated stock market crash seem to be having a hard time. At least, it appears so. US gross domestic product grew by 2.1 percent in Q2 2023, after growing 2.0 percent in Q1; the unemployment rate was rather low at 3.8 percent in August 2023; and the S&P 500 was at 4,460 points, around 10 percent below the index record of 4,818 points from January 2022. Yet, there are many variables that yield a point to the prophets of doom.

For instance, high inflation has reduced the real incomes of people and businesses, lowering their demand for goods and services. The increase in credit costs, which began in early 2022 with the Federal Reserve interest rate hike, should (at least) slow down consumption and investment—and lead to more loan defaults. In addition, the US yield curve is severely inverted, signaling an imminent recession.

[shrey-bhootrablogs123]

Outlook 2023, BONDS is the place to be.

OUTLOOK 2023,

        BONDS IS THE PLACE TO BE.

                                   BY

                                       SHREY BHOOTRA

                                        STANDARD 7th

           SCHOOL – THE BISHOPS SCHOOL CAMP, PUNE.

                                INTRODUCTION.

In this paper I will be talking about the outlook of 2023 and why this year bonds are a safer and better bet compared to equities.

1.   Indian stock market lags behind its global peers in 2023.

The Indian stock market, which had been a star performer in 2022 despite global headwinds, has been lagging behind its global peers since the start of 2023. The domestic benchmark indices, the Sensex and Nifty 50 gave a return of 5.78% and 4.33% in the calendar year 2022 respectively. Since the start of calendar year 2023 the Nifty 50 index has gone down from 18,197 to 17,567, while the Sensex has gone down from 61,167 to 59,745 which means they have both gone down by 4.47% and 2.33% already! The markets in 2023 started the year well before facing challenges as the month went on. The underperformance has been attributed to a range of factors, including continuous selling of FPIs, the reopening of the Chinese economy, the sell-off in the Adani group stocks and the depreciation of the Indian Rupee. On January 25th the Nifty 50 and Sensex tumbled 1.25% and 1.27% respectively, a day after the Hindenburg released a report alleging the Adani Group of certain accusations, on the following day the two indices lost another 1.61% and 1.45% in value, taking the cumulative loss to 2.83% and 2.70% in just two trading sessions. The banking stocks which had given loans to the Adani group of companies also took a brunt on concerns over the debt exposure to the Adani group, the Banking sector which had been the driving force behind the index growth over the past few years was now facing headwinds causing the Nifty 50 to underperform. According to the PTI report foreign investors pulled out Rs 28,852 crores from equities in the month of January 2023, making it the worst outflow since June 2022. This came following a net investment of Rs 11,119 crore is December 2022 and Rs36,238 crore in November. The Indian Rupee started January 2023 on a strong note, strengthening 1.60% in the first three weeks, however it gave up its gains as the month progressed and ended January with a fall of 1.18% at 81.73 against the US Dollar. The Indian Rupee ended 2022 as the worst performing currency with a fall 11.3%, its biggest annual decline since 2013. In December 2022 the global brokerage Goldman Sachs said that India is likely to underperform its peers in 2023 due to expensive valuations. The Indian market had been a strong outperformer in 2022 due to stronger domestic fundamentals, but valuations have turned expensive compared to global peers. Another cause for the equity markets not performing well is inflation, inflation in the month of January 2023 in India was 6.52% compared to 5.72% in the month of December 2022, when inflation is high it reduces the purchasing power of common households thus also having a negative effect on the equity markets. The main cause of rise in inflation in India is because of food inflation, the CPI food index rose to 5.9% in January 2023 from 4.2% in December 2022.

2.   Why are bonds the place to invest in 2023.

Since the equity markets have not been performing well since the start of the year, bonds are the next best place to invest, retail investors, DIIs and FIIs have been pulling money out of the market and have been investing in bonds. Since bonds provide a predictable income stream and have stable returns and have a lower risk people prefer to invest in bonds this year over equities. The US one year bond yield is currently at 5.0541%.

-       SHREY BHOOTRA

23.3.23

[rahulllsblog]

Finance: A Guide to Understanding and Managing Your Money

When it comes to managing your finances, it's important to have a solid understanding of the basics. This includes understanding the different types of financial products and services that are available, as well as key financial concepts like budgeting, saving, investing, and managing debt.

One of the first steps in managing your finances is creating a budget. A budget is a plan for how you will spend your money each month. It helps you track your expenses and ensure that you are saving enough money to meet your financial goals. To create a budget, start by listing all of your income and expenses. Then, determine how much you can afford to save each month and allocate that amount towards your savings or investment accounts.

Another important aspect of finance is saving. This involves setting aside a portion of your income each month to build an emergency fund or save for a specific goal, such as a down payment on a house or a child's education. There are many different types of savings accounts, including traditional savings accounts, money market accounts, and high-yield savings accounts. Choose the type of account that best fits your needs and start saving today.

Investing is another key component of finance. Investing involves putting your money into stocks, bonds, mutual funds, or other financial products with the goal of growing your wealth over time. There are many different types of investments, each with its own risks and rewards. It's important to do your research and choose investments that align with your financial goals and risk tolerance.

Managing debt is also a critical part of personal finance. This includes paying off credit card debt, student loans, and any other debt that you may have. To manage your debt, start by creating a debt repayment plan that includes making regular payments and paying more than the minimum balance. You may also want to consider consolidating your debt or working with a financial advisor to create a debt management plan.

More info

In conclusion, understanding and managing your finances is critical to your financial success. By creating a budget, saving, investing, and managing debt, you can build a strong financial foundation and work towards achieving your financial goals. Remember to educate yourself on the different financial products and services available and seek advice from a financial professional when needed. With a little effort and discipline, you can achieve financial independence and peace of mind.

#financialfreedom #financial help #finance #make money for free