Category Archives: Financial Independence

While the Ombudsman was visiting one of the many adult care facilities in our area, a woman told her that she does not receive enough money to pay for her personal needs and activities. The womans Social Security benefit income is managed by a representative payee agency that charges a fee. The woman would like to be in charge of her own finances but it has been a long time since she managed her own money. The woman is currently receiving $15 per month for her personal needs. If she managed her own money, and no longer paid the agency fee, she would have $40 per month.

The Ombudsman contacted the local Social Security office to learn what steps the woman needed to take to become independent of the agency. The woman needs to provide personal identification and her doctors contact information.

The woman and the adult care facility manager were not initially successful at the face-to-face appointment at the local Social Security office. The woman was told she would have to know her monthly expenses. The woman does not know that information because all of her bills go directly to the representative payee agency. In addition the woman needed to have her doctors written verification that the she can manage her own money.

The woman has a doctors appointment scheduled and believes she will obtain the verification from the doctor at that time. The Ombudsman recommended she receive a list of all expenses paid for by the representative payee agency and work with the adult care facility manager to create a budget, decide which bank she will use and how the bills will be paid.

The Ombudsman received the good news from the woman that the second appointment with Social Security was successful. The woman provided the doctors letter and demonstrated that she knew her income and expenses. The woman will be receiving her Social Security benefit check and has opened her own bank account.

The Ombudsman Column, a production of the Joint Office of Citizens Complaints, summarizes selected problems that citizens have had with government services, schools and nursing homes in the Dayton area. Contact the Ombudsman by writing to the Beerman Building, 11 W. Monument Avenue, Suite 606, Dayton 45402, or telephone (937) 223-4613, or by electronic mail at ombudsman@dayton-ombudsman.org or like us on Facebook at Dayton Ombudsman Office.

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Woman wins financial independence - MyDaytonDailyNews

It's Monday morning, and if you're back at work and reading this from your desk, the chances are that you haven't yet achieved 'financial independence'.

What is financial independence? In short, it's having enough wealth that you no longerneed to work actively to generate an income. Imagine being able to spend your time pursuing activities that you enjoy. Maybe you would travel the world? Play golf every day? Or perhaps even start a business in an area that interests you. The options are endless.

However right now, it's likely that you're sitting at your desk, worrying about your boss looking over your shoulder. Here are three reasons why you haven't yet achieved financial independence.

This one's pretty simple. How can you possibly expect to build up wealth if your outgoings are greater than your income? It just won't happen.For this reason, you need to commit to saving a proportion of your income, no matter how much you earn. The easiest way to do this? Pay yourself first.

You see, many people make the mistake of spending their paycheque first, and then saving whatever is left at the end of the month.This generally isn't effective. Most of the time, there will be nothing left to save at month end.

If you want to be disciplined about saving, the key is to save a certain proportion, perhaps 5% to 10%, of your paycheque as soon as you receive it. Pay yourself before you pay your rent, your bills and all your other expenses. The chances are you probably won't even miss than small amount, but over time, those funds can build up a formidable savings pot.

Next, you need to make this money work for you.It never ceases to amaze me, when speaking to friends and family, how many people have all their savings in cash accounts. While that's obviously better than not saving at all, the problem is, with inflation running at 2% to 3% a year, their purchasing power is diminishing over time. 20,000 in 10 years time, will buy you considerably less than 20,000 today.

For this reason, it's essential that you invest your hard-earned capital in assets that generate strong, inflation-beating returns over time. Shares are an excellent asset class for this, as in the past, shares have generated returns of around 8% to 10% per year over the long term.

"If you don't find a way to make money while you sleep, you will work until you die,"says Warren Buffett.

If you're serious about financial independence, a good idea is to build up a passive income stream, cash flow generated without actively working for it. Passive income is the holy grail of personal finance and gives you powerful options in life.

So how do you generate a passive income? Well, there are many ways to build an income stream that doesn't require active work. Some people start online businesses, while others invest in buy-to-let property.

However, possibly the easiest way to generate a passive income stream is through dividend stocks. A portfolio ofhigh-quality dividend-paying stocks can generate a reliable income streammonth after month, year after year. In my opinion, dividend stocks may just be the secret to achieving financial freedom.

The Motley Fool recently published a brand new exclusive early retirement report calledThe Foolish Guide to Financial Independence.If retiring early is a goal of yours, I'd highly recommend reading the report.

It's FREE, comes with no obligation and can be downloaded within seconds simply by clicking here.

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3 reasons why you haven't yet achieved 'financial independence ... - AOL UK

The story got people talking.

Many CNNMoney readers viewed Livingston as an outlier with advantages that most people don't have because she graduated from Harvard with zero debt and had an extremely high income.

RadicalM0derate says on Twitter: "So to retire young: get into Harvard & pay for it through scholarships and family $; save most/all of your 6 figure income for 10 yrs. Easy."

To be sure, Livingston is in a rarefied group.

The acceptance rate this year at Harvard is 5.2%, according to Harvard. And getting any degree debt free is far from the norm: The average student debt tops $30,000.

Plus, Livingston's mid-six-figure income put her squarely in the 1%. Most people earn something closer to the median income, which is $56,500, according to the Census Bureau.

Full story: She retired at 28 with $2.25 million

But some readers found her story inspiring, and the lessons applicable.

As Anton Mykytenko posted on Facebook, her experience, while on one end of the spectrum, is scalable: "Regardless of whether or not she received some help, she still worked to find the place where she's paid the most versus her living costs, saved up 70% of her income, and planned early. No matter your situation, these are still things you can apply to your life. Think about how what she did can help you get ahead instead of getting outraged."

Many people have achieved financial independence on much lower incomes, like this couple we profiled in June. While age 28 is extreme, those with lower incomes might be able to do it by 35 or 40, or by moving somewhere with a lower cost of living, or learning to live on less.

Other readers pointed out that Livingston can't be financially independent if her spouse still works.

"She is not really retired she got married & plans on having kids & her husband still works. Like many families," writes Patrick Landers on Facebook.

But Livingston's savings are enough to cover both her and her husband's expenses regardless of his income. (Plus, he has some savings of his own).

Some readers questioned whether financial independence is possible for someone who didn't go to Harvard, and isn't in the 1%.

One Reddit user thinks it is: "I live in NYC. $2 million is our number and we are 3/4 of the way there. Of course I made less than this woman for my entire career, went to SUNY, and still spent much of my time and money partying when I was her age. But I'm 44 and almost there."

Related: How to become financially independent in 5 years

At such a young age, is $2.25 million really going to be enough to last for the rest of her life?

As Matthew Coldrick replied on Facebook, "Most people need that much to retire at 60. Good luck making $2m last 60 years."

With a nest egg of $2.25 million to live on for the next 60 years, she could take out $88,800 annually or about $7,400 a month from age 29 to 89, assuming a 4% growth rate. Not living large, but certainly better off than many people, especially considering she isn't even working.

So Livingston feels set at 29 years old with her pot of gold. Many readers wanted to know: then what?

Karren Omeara asks on Facebook: "So than what do you do with at least 50 years left?"

"Live" replied Deborah Toomey.

Even by making a few tweaks to your current finances -- saving 20% for retirement instead of 10%, looking to used goods instead of new, cutting entertainment expenses, investing what you have in a way that suits your risk-tolerance -- you can still get to the retirement you're looking for. Whether it is at 28 or 58, it's your journey, better to have more control over it now than less later.

CNNMoney (New York) First published August 4, 2017: 3:52 PM ET

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CNNMoney readers react: She retired at 28 with $2.25 million - Aug ... - CNNMoney

Motley Fool Staff | August 4, 2017

Financial independence is a goal to which many people aspire. The idea that its possible to be independent of the wider economy and for a portfolio to deliver rising returns no matter how the macro outlook appears is attractive. After all, to generate a high and consistent return is the fundamental goal of most investors.

However, is this a realistic aim? Or, is it impossible for an investor to generate high returns without being reliant on one or more factors?

Financial independence

By its very nature, being financially independent means an individual?s financial affairs are not dependent upon anything or

Financial independence is a goal to which many people aspire. The idea that its possible to be independent of the wider economy and for a portfolio to deliver rising returns no matter how the macro outlook appears is attractive. After all, to generate a high and consistent return is the fundamental goal of most investors.

However, is this a realistic aim? Or, is it impossible for an investor to generate high returns without being reliant on one or more factors?

By its very nature, being financially independent means an individuals financial affairs are not dependent upon anything or anyone else. For example, someone seeking financial independence may no longer rely on a salary from an employer, or financial aid from a relative or family member. They may have a portfolio of assets which they believe makes them financially independent, thereby reducing their overall risk profile.

Furthermore, diversifying a portfolio may also provide a greater feeling of independence for an investor. This is because diversifying among a range of companies causes company-specific risk to fall. Similarly, buying shares in companies which report in different currencies causes currency risk to fall, while countering geographic risk by having a spread of companies across the globe means an investor may develop an even greater feeling of independence.

However, no matter how much capital an individual has in their portfolio, nor how well diversified they are, they are still dependent upon the performance of the global economy. Should the global macroeconomic outlook decline, their capital growth and income returns from risky assets such as shares may fall. Similarly, if the world inflation rate increased, they may see their spending power decline in real terms, for example.

As such, all investors depend on stable growth being present in the long run when it comes to risky assets. Even if they are invested in assets which are less reliant upon the performance of the global economy and may even rise during a global recession, such as gold, the reality is that in the long run those assets are dependent upon investor sentiment to a large extent. There is no guarantee that gold would become popular in a global recession, for instance, which means an investor buying gold in order to seek financial independence may in fact be reliant upon a rise in market sentiment in response to changing trading conditions.

Therefore, it may be prudent for investors to seek a state of limited financial dependence, rather than financial independence. Given the globalised nature of the world economy, it seems improbable that any investor could create a situation where they have high returns which are not dependent upon someone or something else in the long run.

As such, while reducing risk, increasing diversification and seeking to become less reliant on other individuals or factors are noble aims, all investors must accept that to at least some extent their financial future is simply out of their hands. Thats why obtaining a wide margin of safety and seeking the best risk/reward opportunities could prove to be the best strategy for Foolish investors.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Is financial independence a myth? - Motley Fool Australia

NEW YORK (CNNMoney) -- Millennials are the first generation to shun traditional retirement and seek financial freedom instead -- when income from savings is enough to cover expenses, and working becomes a choice, often long before the age of 65.

Becoming financially independent and retiring early, a process known as FIRE, can be achieved at any income level by saving a high percentage of your salary, or cutting your expenses -- or both. CNNMoney profiles people who've reached financial independence early and on their own terms.

On a recent Wednesday afternoon, 29-year-old J.P. Livingston sat at an outdoor cafe in New York's West Village, wrapped in a cozy sweater, sipping tea and talking about her current project: retirement.

Livingston says she quit the workforce last year with $2.25 million after working in finance for only 7 years.

Let the Baby Boomers have their "retirement," with its delayed gratification and uncertain benefits, say an increasing number of young people like Livingston. Instead, they are gaming their income, saving rates and investments to become financially independent and retire early -- a process known as FIRE.

While Americans commonly spend most of what they earn and fall short on traditional retirement savings, today's young people are the first generation to plan for financial freedom: 63% of affluent Millennials prefer financial freedom over retirement, while 37% are saving to leave the workforce altogether, according to a study from Merrill Edge.

Anyone can achieve financial independence simply by saving a lot. Most people who are able to quit the workforce at a very young age do it by saving at least half their income.

And Livingston sets the bar pretty high. She saved at least 70% of everything she made for 7 years. And she chose a career -- and a city -- that would help her do that by maximizing her income, despite the high cost of living.

She had a mission. What else would you call it, when you start planning your retirement as a teen?

"I've wanted to be financially independent and retire early for years," Livingston said, recalling wandering around bookstores as a tween and being drawn to books on early retirement.

Sure, she had a few things going for her -- more than most: She managed to graduate from Harvard University in three years with no debt and some savings. She also landed a very high-paying job in finance that came with a six-figure income that increased exponentially over time. And she had a plan that made it possible for her to reach financial independence before she and her husband started a family and expenses inevitably grew. (A new project for her retirement: having a baby. She recently learned she's pregnant.)

But her nest egg is self-made. Even though her husband still works, Livingston's own savings are enough to cover both their living expenses -- around $67,000 per year -- for the rest of their lives.

"I came from a family that grew up really poor," said Livingston, who now writes under that pen-name on her blog about retiring early, TheMoneyHabit.org. "My family constantly reminded me that it was important to focus on providing for yourself." She prefers to remain anonymous to protect her privacy in revealing sensitive financial information. (CNNMoney has independently confirmed her identity.)

Livingston's fast-track to financial freedom was strategic, with each stage building on the next. First, she focused on her income, then on building her savings, followed by investment growth. Now that she's reached retirement, she's focused on tax optimization.

Here's how she did it.

Super-charge your income

Instead of moving to an area with a low cost of living (an easy way to slash expenses), Livingston doubled down on New York City.

"You can find the best job opportunities here," Livingston said. "I couldn't have found my job in Omaha, Nebraska. Maybe in Chicago, but I'd be paid less. I was paid the most here."

She worked hard to continually boost her income, which came through salary, raises, bonuses and commissions. When she first started working she was earning six-figures right out of the gate. Her starting salary was $60,000, plus incentives, which could easily double her yearly pay. But it only went up from there. Over the years, she increased her salary significantly, earning promotions with raises upwards of 30% along the way. By the time she quit her job, her paycheck was in the mid-six-figures.

A major feather in her cap was not having any debt, especially student loans.

"I was very aware of how expensive Harvard was," said Livingston. "I decided I should just get out early." She paid for school through scholarships and her family's savings. Graduating early allowed her to avoid paying additional expenses and move directly into earning an income.

Even if you go to a less expensive school, she says, if you can get it together to graduate a year early, you can avoid taking a loan for that year or, if you have the savings, "you can park that $20,000 in the market and start earning."

Crank the savings rate sky-high

Livingston's hard-core formula to reach a 70%-plus savings rate: income minus expenses equals savings.

When friends called her to go out, she'd steer them toward the most affordable social engagements: "I'd love to see you! Can I join you for drinks after? Or are you free for brunch?"

In addition to offering her a high income, New York's higher density offered her ways to save. She was able to live car-free and found that higher earning people getting rid of great stuff led to super deals on Craigslist or curbside.

"We had a gorgeous, pristine storage bench my roommate found on the street with a 'free' sign on it," she said. "It was one of the nicest pieces of furniture in the whole apartment."

She also had a broad choice of living situations. She opted for a third-floor walk-up where she had a mattress on the floor and paid $1,100 a month, her first year out of college. After that she moved to a 325-square-foot fifth-floor walk-up where she still lives with her husband and dog.

While building up her savings she started out living on $25,000. Even as her salary grew, her spending only went up to $30,000 a year.

"Incremental improvements that you build into your routine will pay out not just once, but it will pay off multifold," says Livingston. Lowering your rent by adding another roommate, saying you'll only meet friends for brunch, coffee or drinks (as opposed to more expensive dinners), "that will keep paying off for you year after year."

Grow the money

But you're not going to get to $2.25 million just by skipping a few dinners. About 60% of Livingston's net worth came from savings, and about 40% came from investing, primarily in a combination of low-cost index funds, options and municipal bonds, depending on the market.

Her expertise in the financial industry certainly helped juice her investment returns.

Once your savings are substantial, she says, the tweaks you make to your investments will have much more impact than any changes to your spending or saving habits.

For example, if you earn $70,000 a year and have regularly saved a significant portion for a few years, you may have between $120,000 to $150,000 in savings. If you can get a 10% return on your investments, you'll add $12,000 to $15,000 to your savings.

Among the proponents of FIRE, who support each other on various spaces on-line, Livingston's accomplishment is called "Fat FIRE," which is like FIRE, but with much bigger monthly budgets, and therefore much larger nest eggs.

She and her husband now live on $67,000 a year, an annual budget others on the path to FIRE may balk at as very high.

"That buys us a lot of cushy luxuries which include maid service and sending laundry out," she said. "We skimp on a lot of things, but those actually end up being quite affordable in Manhattan because of the density, and are offset by the cheap rent we pay." Plus: they don't have a washing machine.

While her expenses are completely covered by her savings, her husband still works, but by choice.

These days Livingston is working on growing her money and helping others to do the same through her blog.

"The you that is intentional with your money and constantly looking for improvement will be that much wealthier than the one that isn't, whatever your starting circumstances may be."

By Anna Bahney

The CNN TM & 2017 Cable News Network, Inc., a Time Warner Company. All rights reserved.

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How to retire early with financial independence in 3 steps - NBC2 News

Jul. 31, 2017, 9:05 AM

14,802

No one gets rich from a savings account. Courtesy of Chris Reining I'm playing Jenga because that's what my nephews always want to play when I'm around. But then we move on to Xbox because kids get bored quickly, so we have to change from one thing to another.

So why when we grow up do we have to play the same game over and over again for the rest of our lives? I mean, as soon as you discover what you're good at you have to do that for your career.

And then because you can earn more money in that field than any other field you're forced to do it forever. You never get to say, "I'm bored and I hate my job and I want to play something else."

You might know how this feels because 70% of people hate their job and The 4-Hour Workweek spent more than four years on The New York Times bestseller list.

Most people tell themselves, "Well, that's just the way life is."

I know, because that's what I used to say until I discovered financial independence.

And I'm going to tell you everything you need to know about how to become financially independent in just one sentence. Are you ready?

Spend less than you earn and invest the difference.

There. I've written over 100,000 words about becoming financially independent that can be distilled down into those nine words.

And if you live your life by those nine words you'll eventually become financially independent maybe even retire early if you want to but more importantly you can go play something else.

Now, you might be thinking it's easy for me to say spend less, because after talking with thousands of my readers they all tell me it's hard. Why?

Spending less means giving things up, and we hate giving things up.

I was in Brooklyn recently and met this girl who started telling me about her money problems. How she was forced to cut everything to the bone.

So I'm imagining her sneaking into diners to steal leftover food off people's plates, but then I find out she owns one of those million dollar brownstones and has a housekeeper and a chauffeur and I'm thinking, "How is this to the bone?"

That's what the endowment effect is. Behavioral economists use this term to describe how we place more value on what we have than on what we don't have.

Like in one study people were given a coffee mug and when they were offered the chance to sell it or trade it for something of equal value they wanted double what they were willing to pay for the mug.

We hate giving things up.

But if you're willing to give things up you can get what you want. Take this comment from a reader:

"If you are willing to change your circumstances it is quite possible to quit. I did that this year, left a job I had been at for 13 years and was unfulfilled by, although we have 2 young children, the mortgage, a dog etc, all the regular attachments.

We downsized our house by half, weeded out many possessions, and moved to a city 15 minutes away with more job options where we could live with one vehicle. Now I am self-employed and taking a course on the side to expand my options, we are 3 years away from mortgage free instead of 15 years, I see my kids much more and everyone is happier, none of us were negatively affected by cutting less important things out of our lives.

This will not be the route for everyone, but it really is about what you are willing to do or not do, not so much about the attachments you have."

Most people hate reading stuff like this. Why? Because we want to believe everything in life is easy and just happens magically.

When I made the decision to become financially independent I'd ask myself every day, "What am I doing today to get there? What steps am I taking?"

It took years of hard work and discipline to spend less than I earned before I realized you can't cut your spending to nothing and that you need to earn more. And earning more took years of hard work and discipline, too.

Of course, you're investing all this money because no one gets rich from a savings account.

This is what works.

Yet, people still write me saying they're going to "get rich quick" by trading binary options or investing in cryptocurrency or whatever. Sometimes I'll follow up with them a year later to see how it's going (they never respond).

And that's why I always appreciate the people who are honest about their success, because if I want what they have then I know the steps I need to take to get there.

Anyways, this was going to be about my first year of early retirement and I just realized I didn't tell you anything about it. So real quick, it's changed my life.

Sure, sometimes you sleep in until 11 a.m. on a Tuesday knowing your money is working for you. But what I'm learning is it's really about having control of your time.

Mark Cuban said time is your most valuable asset:

"You can't buy it, you can't find it, you can't store it, you can't trade it."

What he's saying is if you're not doing what you want to be doing with your time you're wasting it, because you can't get any more of it.

When you become financially independent you get your time back because now you control it, and that's what financial independence is really about.

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I retired at 37 as a self-made millionaire here's the one-sentence secret to financial independence - INSIDER

Financial independence is a goal to which many people aspire. The idea that it is possible to be independent of the wider economy and for a portfolio to deliver rising returns no matter how the macro outlook appears is clearly highly attractive. After all, to generate a high and consistent return is the fundamental goal of most investors.

See also: How much student debt will ever be repaid?

See also: What to do if friends or family don't pay you back

However, is this a realistic aim? Or, is it impossible for an investor to generate high returns without being reliant on one or more factors?

By its very nature, being financially independent means an individual's financial affairs are not dependent upon anything or anyone else. For example, someone seeking financial independence may no longer rely on a salary from an employer, or financial aid from a relative or family member. They may have a portfolio of assets which they believe makes them financially independent, thereby reducing their overall risk profile.

Furthermore, diversifying a portfolio may also provide a greater feeling of independence for an investor. This is because diversifying among a range of companies causes company-specific risk to fall. Similarly, buying shares in companies which report in different currencies causes currency risk to fall, while countering geographic risk by having a spread of companies across the globe means an investor may develop an even greater feeling of independence.

However, no matter how much capital an individual has in their portfolio, nor how well diversified they are, they are still dependent upon the performance of the global economy. Should the global macroeconomic outlook decline, their capital growth and income returns from risky assets such as shares may fall. Similarly, if the world inflation rate increased, they may see their spending power decline in real terms, for example.

As such, all investors depend on stable growth being present in the long run when it comes to risky assets. Even if they are invested in assets which are less reliant upon the performance of the global economy and may even rise during a global recession, such as gold, the reality is that in the long run those assets are dependent upon investor sentiment to a large extent. There is no guarantee that gold would become popular in a global recession, for instance, which means an investor buying gold in order to seek financial independence may in fact be reliant upon a rise in market sentiment in response to changing trading conditions.

Therefore, it may be prudent for investors to seek a state of limited financial dependence, rather than financial independence. Given the globalised nature of the world economy, it seems improbable that any investor could create a situation where they have high returns which are not dependent upon someone or something else in the long run.

As such, while reducing risk, increasing diversification and seeking to become less reliant on other individuals or factors are noble aims, all investors must accept that to at least some extent their financial future is simply out of their hands. That's why obtaining a wide margin of safety and seeking the best risk/reward opportunities could prove to be the best strategy for Foolish investors.

Of course, improving your financial prospects is no easy task. The world economy faces a number of major challenges, which is why the analysts at The Motley Fool have written a free and without obligation guide called The Foolish Guide to Financial Independence.

The guide could help you to achieve improved portfolio performance over a sustained period by selecting the best stocks in the most enticing sectors.

Click here to get your copy of the guide - it's completely free and comes without any obligation.

Here is the original post:

Is financial independence a myth? - AOL UK

Finding companies with impressive growth outlooks is not particularly difficult at the present time. After all, the prospects for the global economy are relatively upbeat. However, unearthing companies which offer high growth prospects at a reasonable price may prove much more challenging. In many cases, the market has already priced in their upbeat outlooks, and their margins of safety may be somewhat limited.

However, these two companies could offer surprisingly attractive risk/reward ratios due to their low valuations and high chances for growth.

Tuesday's interim results from speciality chemicals company Elementis (LSE: ELM) showed it is making encouraging progress. For example, it was able to increase operating profit across all three of its main segments. Its sales growth of 24% was impressive and helped to boost adjusted operating profit by 26% versus the same period from the prior year. Furthermore, its outlook is unchanged and it remains on target to grow its operating profit across all three of its main business segments this year.

Elementis benefitted from short-term favourable conditions in Surfactants and the inclusion of the acquired SummitReheis business. Its Specialty Products division recorded adjusted operating profit growth of 18%, with strong growth in Personal Care and Energy, while Coatings saw steady revenue. The company's Chromium division saw revenue move 18% higher, with the US resilient and there being stronger demand in the rest of the world. Surfactants were boosted by strong pricing conditions, although they are not expected to be sustained in the second half of the year. A sale of that business is now being pursued.

Looking ahead, Elementis is expected to report a rise in its bottom line of 23% in the current year, followed by further growth of 13% next year. Despite this strong outlook, it trades on a price-to-earnings growth (PEG) ratio of only 1.4. This suggests that it offers a wide margin of safety following share price growth of 8% since the start of the year and could be worth buying now for the long term.

Also offering an upbeat investment outlook in the same sector is Johnson Matthey(LSE: JMAT). The speciality chemicals company is forecast to grow its earnings by 9% in the next financial year. Although lower than the forecast growth rate of Elementis, it has the same PEG ratio of 1.4. This suggests the sector may be somewhat undervalued by the market at the present time, and there could be growth opportunities for shrewd investors.

As well as growth potential, Johnson Matthey also has income appeal. It currently yields 2.9% from a dividend which is covered 2.7 times by profit. This suggests that dividends could increase at a significantly faster pace than profit over the medium term, without hurting the financial strength of the business. With inflation moving higher, this could increase the investment potential of the stock and make it more popular in future. The end result may be a higher share price.

As talks between the EU and UK continue, fear and indecision could hurt share prices in the coming months. That's why the analysts at The Motley Fool have written a free and without obligation guide called Brexit: Your 5-Step Investor's Survival Guide.

It's a simple and straightforward guide that could help you to find the stocks most capable of prospering under a new political and economic arrangement between the UK and EU.

Click here to get your copy of the guide - it's completely free and comes without any obligation.

Peter Stephens has no position in any shares mentioned. The Motley Fool UK has recommended Elementis. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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These blue-chips could help you to achieve financial independence - AOL UK

UCP Land of Lincoln is excited to announce a new program funded through United Way of Central Illinois called the FIT (Financial Independence through Training) Program.

The FIT Program focuses on helping at-risk adults with finding and maintaining successful employment in the community and includes a financial training component that concentrates on financial planning, money management, saving and investing and understanding credit. The program encourages people to become self-sufficient and active members of their community so they are able to become financially independent, invest back into their community and live their lives without limits.

The program serves at-risk adults living in Sangamon and Menard counties. Based on the success of UCPs evidence-based Supported Employment Individual Placement and Support Model, the FIT Program uses a five-stage Supported Employment process to determine participants needs.

The five stages of the process are intake, assessment, job development, job placement and job support services. Individuals may enter and utilize different stages of the process depending on their needs

UCP is partnering with local banking institutions and financial planning businesses that will assist in providing training to participants on these topics. The financial stability training module teaches individuals how to improve their financial security and practices, learn how to reduce debt and build their assets.

Likewise, support services in the form of job coaching and case management services are provided to ensure that individuals find the right career path, make a plan to successful employment and learn how to budget and manage their money so they can become financially secure. UCP staff works with individuals to develop an Individual Service Plan that includes realistic, prioritized goals that address any barriers to employment and financial stability.

The FIT Program is located at the UCP Enterprises Center at 1411 E. Jefferson St. and select job sites throughout the community.

Training presentations will take place at the UCP Enterprises Center and the UCP administrative building at 101 N. 16th St. The UCP Enterprises Center offers classroom space for training and a computer lab with adaptive equipment and a variety of educational software. Both UCP buildings are located on the public bus route.

Participants in the program will have the opportunity to attend training sessions at job training sites throughout the Springfield area and experience job shadowing activities during these sessions. Individuals will be working at job sites throughout Springfield and will be able to access services that surround each job site. They will be working in their community and experience company culture, be a part of a work team and have the opportunity to progress in their career.

The program serves at-risk adults, 18 years or older, who want to improve their financial stability and are residents of Sangamon or Menard counties. This can include people who are homeless, have a disability, are low-income or are susceptible to abuse, neglect or exploitation because they are not able to access necessary services.

Participants must fully commit to the FIT Program, attend the training schedule of activities and be willing to obtain employment and follow employment policies and procedures once hired.

The FIT Program started July 1, and UCP Land of Lincoln is currently identifying eligible candidates to the program.

If you are interested in the program, know someone who may be a potential candidate for the program, or just want to obtain more information about the program, please contact Jenny Niebrugge at 525-6522.

Kathy Leuelling is the president/CEO at UCP Land of Lincoln. Look for United Way columns weekly in Our Towns.

Originally posted here:

United Way: FIT Program trains at-risk adults for financial stability - The State Journal-Register

Peter Stephens | July 29, 2017

Financial independence is a goal to which many people aspire. The idea that it is possible to be independent of the wider economy and for a portfolio to deliver rising returns no matter how the macro outlook appears is clearly highly attractive. After all, to generate a high and consistent return is the fundamental goal of most investors.

However, is this a realistic aim? Or, is it impossible for an investor to generate high returns without being reliant on one or more factors?

Financial independence

By its very nature, being financially independent means an individuals financial affairs are not dependent

Financial independence is a goal to which many people aspire. The idea that it is possible to be independent of the wider economy and for a portfolio to deliver rising returns no matter how the macro outlook appears is clearly highly attractive. After all, to generate a high and consistent return is the fundamental goal of most investors.

However, is this a realistic aim? Or, is it impossible for an investor to generate high returns without being reliant on one or more factors?

By its very nature, being financially independent means an individuals financial affairs are not dependent upon anything or anyone else. For example, someone seeking financial independence may no longer rely on a salary from an employer, or financial aid from a relative or family member. They may have a portfolio of assets which they believe makes them financially independent, thereby reducing their overall risk profile.

Furthermore, diversifying a portfolio may also provide a greater feeling of independence for an investor. This is because diversifying among a range of companies causes company-specific risk to fall. Similarly, buying shares in companies which report in different currencies causes currency risk to fall, while countering geographic risk by having a spread of companies across the globe means an investor may develop an even greater feeling of independence.

However, no matter how much capital an individual has in their portfolio, nor how well diversified they are, they are still dependent upon the performance of the global economy. Should the global macroeconomic outlook decline, their capital growth and income returns from risky assets such as shares may fall. Similarly, if the world inflation rate increased, they may see their spending power decline in real terms, for example.

As such, all investors depend on stable growth being present in the long run when it comes to risky assets. Even if they are invested in assets which are less reliant upon the performance of the global economy and may even rise during a global recession, such as gold, the reality is that in the long run those assets are dependent upon investor sentiment to a large extent. There is no guarantee that gold would become popular in a global recession, for instance, which means an investor buying gold in order to seek financial independence may in fact be reliant upon a rise in market sentiment in response to changing trading conditions.

Therefore, it may be prudent for investors to seek a state of limited financial dependence, rather than financial independence. Given the globalised nature of the world economy, it seems improbable that any investor could create a situation where they have high returns which are not dependent upon someone or something else in the long run.

As such, while reducing risk, increasing diversification and seeking to become less reliant on other individuals or factors are noble aims, all investors must accept that to at least some extent their financial future is simply out of their hands. Thats why obtaining a wide margin of safety and seeking the best risk/reward opportunities could prove to be the best strategy for Foolish investors.

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Read more here:

Is Financial Independence A Myth? - The Motley Fool Canada