Category Archives: Financial Independence

We're big advocates of a bottom-up approach here at The Motley Fool. We invest in individual companies instead of betting on sectors. This approach can help us ignore the relentless 'noise' of the market, but taking this approach too far can be dangerous too.

Companies do not exist in isolation and do not have complete control over their destiny. It is therefore important to consider the impact market forces could have on an investment candidate. Michael Porter, a professor at Harvard, has designed a model of analysis that helps us investigate how a company functions inside its industry.

Porter's Five Forces provides insightsinto how the competitive picture may impact sales and profitability at a given company in the future.

Force number one asks: How easily can another company enter this industry"

Industries with relatively few players often boast outsized returns on capital. Investors will always be drawn to such industries, but unless a company has a wide economic moat (or durable competitive advantage) new competitors will inevitably emerge, vying for a cut of the juicy profits. This increased competition erodes margins until return on capital reverts to the mean. Investors who bought in at its zenith will be left nursing nasty losses.

To avoid this fate, don't be drawn in by big margins. Instead ask yourself how easy would it be to recreate this business if money was no object. If you could create a viable rival without in-house knowledge, hard-earned customer relationships, regulatory approval, brand-building, patent approval or any other differentiator, the company in question likely has a weak competitive position.

The force of substitution is the threat of customers choosing a different product over yours. Driverless cars might substitute taxi drivers. One engine part may be interchangeable with a competing product. When analysing a product, ask: what might be substituted for this? If a service or product is differentiated and strong enough that it has few threats of substitution, it could have the potential for outperformance.

In industries where competition is rife, the balance of power often shifts towards the customer base. This can result in price-sensitive consumers, minimal brand loyalty or even open the doors to price negotiations, thus reducing profitability.

When there is both bountiful supply and suppliers, a company can tend to source its inputs more cheaply because of increased competition. However, if a company must buy a special chemical that is only made by one supplier, it has little scope to negotiate on price if there are few or no viable substitutes.

Who are the other big players in the candidate's industry? What are they good at? Where do they fall down? Do they have any distinct differentiators? Can they threaten the candidate in the future? Understanding how your candidate compares to peers is or paramount importance to forming an opinion on its future.

Understanding these forces could help you track down the not-so-obvious big winners of the future. Our analysts often use this approach to find growth candidates that can compound outsized returns over the long run. We've found a company that ticks all the boxes.

People will pay top dollar for its world-renowned brand, its raw materials are plentiful and cheap and it has a wonderful growth record. This British growth story has doubled profits since 2012and shows no sign of letting up yet. To read the investment thesis in full, click here.

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Porter's Five Forces can help you achieve financial independence ... - AOL UK

Beginning this fall, Mt. Bethel United Methodist Church, which has two East Cobb locations, will facilitate a program that helps families take control of their finances.

Financial Peace University, a Dave Ramsey Solutions program, will be offered several times at the locations during the nine-week program. There will also be Legacy Journey for those looking beyond financial independence and wanting to go deeper into investing. For those with children (K-12 grade), there are programs designed just for their age groups that occur at the same time as the FPU programs offered on Sundays and Wednesdays.

The programs, which will begin on Aug. 20, are open to the community and will be offered at the discounted price of $91.For class availability and to register, go to http://www.pivotstepone.org.

Specifically, FPU will teach participants to pay off their debts, to save for the future and to have a platform to have healthy discussions about finances. Legacy Journey will lead participants deeper into investing, basic estate planning, purposeful living, safeguarding ones legacy and discovering the keys to generational wealth.

For more information, visit http://www.mtbethel.org.

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Local church invites community to get out of debt - MDJOnline.com

Allstate agency owner Bill Baker recently secured a $1,000 Allstate Foundation Helping Hands in the Community grant to support Personal Energy Transportation of Southwest Missouris efforts to provide the gift of mobility to thousands of mobility challenged people around the world.

As a volunteer with PET, Baker joins thousands of Allstate agency owners and financial specialists around the country who aim to improve their communities by supporting important local causes, such as raising money for domestic violence programs and empowering youth to reach their full potential.

As a small business owner in Aurora, I see firsthand the opportunities and challenges facing our area, Baker said. Giving back is tremendously rewarding and gives me a sense of purpose. I believe that when we help others, we can be a positive force for change in our communities, which is why Im proud to support PETs work.

PET is one of thousands of organizations this year that will receive Allstate Foundation Helping Hands in the Community grants secured by agency owners and financial specialists on behalf of the nonprofit where they volunteer. The grants support organizations addressing domestic violence, youth empowerment, disaster preparedness, hunger and other causes.

The Helping Hands in the Community grants are one example of The Allstate Foundations legacy of service and giving.

Since The Allstate Foundation was founded in 1952, it has contributed $400 million to support community nonprofits.

In 2016, The Allstate Foundation gave more than $25 million to charitable causes.

About the Allstate Foundation

Established in 1952, The Allstate Foundation is an independent, charitable organization made possible by subsidiaries of The Allstate Corporation (NYSE: ALL). Through partnerships with nonprofit organizations across the country, The Allstate Foundation brings the relationships, reputation and resources of Allstate to support innovative and lasting solutions that enhance peoples well-being and prosperity. With a focus on building financial independence for domestic violence survivors, empowering youth and celebrating the charitable community involvement of Allstate agency owners and employees, The Allstate Foundation works to bring out the good in peoples lives. For more information, visit http://www.AllstateFoundation.org.

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Baker awarded Helping Hands grant - Devil's Lake Daily Journal

General News of Monday, 19 June 2017

Source: classfmonline.com

Chief Justice, Sophia Akuffo

Chief Justice Sophia Akuffo has said that one of the legacies she would like to leave after retiring from office is establishing a financially independent judiciary.

In a speech at her induction into office on Monday June 19, Justice Akuffo said she was passionate about integrity, the delivery of quality justice, and the development and stability of our nation and will strive to demonstrate such actions throughout my tenure

She emphasised: The judiciary has diligently worked for and obtained a large measure of independence. This is however made incomplete by the lack of financial independence and that is an objective I would like to achieve during my tenure as Chief Justice.

Meanwhile, President Nana Akufo-Addo has charged her to prove herself in her new role as the Chief Justice of Ghana.

Mr Akufo-Addo said Justice Akuffo has proved herself and did not disappoint after she was elevated to be a Supreme Court judge by former President Jerry John Rawlings some 22 years ago.

He emphasised that it was now time to prove herself as an effective Chief Justice who will advance the frontiers of justice delivery in Ghana.

She has justified the confidence reposed in her by President Rawlings. She has now to justify the confidence I am reposing in her as Chief Justice, he said

Mr Akufo-Addo described her as a shining light of Ghanas court who is capable of advancing the judiciary in Ghana.

She becomes the fifth Chief Justice under the Fourth Republic.

Justice Akuffo holds a Masters in Law (LLM) degree from Harvard University in the United States.

She has been a member of the Governing Committee of the Commonwealth Judicial Education Institute and the Chairperson of the Alternative Dispute Resolution Task Force.

In January 2006, she was elected one of the first judges of the African Court on Human and Peoples Rights. Initially elected for two years, she was subsequently re-elected until 2014 and is at present serving as Vice-President of the Court.

She has written The Application of Information & Communication Technology in the Judicial Process the Ghanaian Experience, a presentation to the African Judicial Network Ghana (2002).

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I'll pursue financial independence for judiciary - Akuffo - GhanaWeb

Unless you suddenly win the lottery, achieving financial independence is not an easy task. It takes time to save and build a suitable nest egg, as well as building the experience required to manage that nest egg before you can quit the rat race and live off your savings.

Investing is the best way to grow your wealth. With interest rates at theirlowest level in history, equities are one of the few remaining places where you can achieve an attractive return on your money without having to take on excessive risk.

To build a substantial savings nest egg, all you need to do is save more than you spend and put in place a regular savings plan. The earlier you start to save the better as, over time, the power of compounding will do all of the heavy lifting. And just like saving, tobe a successful investor there's one main rule you need to follow to be able to achieve the best return on your money.

Unfortunately, most investors fail to understand this point, andtheir performances suffer as a result. Indeed, accordingto the latest study from Dalbar, since 1984, the average US equity fund investor has lagged the market by an average of 7.3% per annum as they have jumped in and out of the market.

So what's the answer? Well, studies have overwhelmingly shown that the only way to achieve the maximum returns from investing is to focus on the long term. This means ignoring short-term market bumps and instead concentrating on the estimated long-termgrowth potential of the companies you own.

Concentrating on the long-term performance only might seem like an easy task, but most investors fail to grasp this concept, and as a result, their returns suffer.

For example, over the past 10years, the FTSE 100 has booked bothup and down years. In 2007 the index rose 7.4% before falling 28.3% in 2008. The index went on to increase 27.3% in 2009, and 12.6% in 2010, but then fell 2.2% in 2011. However, if you'd sold at this stage thinking that the index had no further left to run, you would have missed out on a gain of 10% in 2012, 18.7% in 2013, 0.7% in 2014 and 19.1% in 2016 (the index fell 1.3% in 2015).

Even though the FTSE 100 fell in three of the past seven years, during the past decade, it has chalked up a total return of around 80%. This example shows clearly that focusing on the long viewis the best course of action for most investors. If you'd sold out in any of the down years, you would have not only crystallised losses but also you would miss out on the market's recovery.

So overall, investing is the best way to build your nest egg but without a pateint investment horizon, you're unlikely to unlock the full potential of your money.

A long-term approach is essential for building wealth. If financial independence is your goal, the Motley Fool is here to help. Our analysts have recently put together this brand new free report titled The Foolish Guide To Financial Independence, which is packed full of wealth creating tips.

The report is entirely free and available for download todaywith no further obligation.

So if you're interested in exiting the rat race and achieving financial independence, click here to download the report. What have you got to lose?

Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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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Achieve financial independence with stocks by following this one ... - AOL UK

We like to think that by the time we retire we will have built up enough savings and investments to cover our expenses for the rest of our lives. Unfortunately, this is the financial independence myth, and far too many people buy into it.

If your parents are in their 70s or 80s then they may already need assistance with day-to-day expenses, and even if they are currently financially independent there is no guarantee that this independence will last.

Most concerning of all is that many parents who experience financial difficulty late in life are reluctant to reach out to their family for help, or even acknowledge that there is a problem. In fact, Fox Business reports that 6 out of 10 older adults dont want to burden family by asking for help managing finances, yet 8 out of 10 adult children actually want to be involved.

Investopedia notes that about 10,000 baby boomers retire every single day, but 54% dont have sufficient savings to support their retirement, and 24% dont have any savings at all.

Since older parents and relatives are often reluctant to ask for financial assistance you may have to step in at a certain point, but when?

Thanks to the marvels of modern medicine people are living longer than ever before, but with an increased lifespan comes a higher risk of dementia and Alzheimers.Making matters worse, Next Avenue reports that one of the first signs of mental decline is difficulty managing finances. Even for people who are perfectly healthy their ability to make good financial decisions peaks at the age of 53, Forbes reports, citing a study by the Center for Retirement Research at Boston College.

To complicate matters, older people are at significant risk of experiencing financial abuse, in fact about 20% of people know an elder who has experienced financial abuse, at an average loss of $36,000.

So when should you step in? Generally speaking you should try to get involved as early as possible, but particularly for parents or relatives who are:

Whether you are stepping in to help a relative in need, or are getting involved early to nip a potential problem in the bud, there are some basic steps that you can take. These steps include:

Unfortunately, financial independence is a myth for many Americans, but facing reality doesnt have to signal disaster for you or your parents. Creating a plan is the first step towards building a happy, healthy, and viable financial future. Together, you and your parents can weather financial storms.

Have you and your family pulled together to ensure your aging parents can remain financially independent? Wed love to hear your story!

Sources:

Farrell, Chris.Why Boomers Shouldnt Despair About Retirement.Forbes.April 24, 2017. Available online:https://www.forbes.com/sites/nextavenue/2017/04/24/why-boomers-shouldnt-despair-about-retirement/#6e3df82742f2

Friedberg, Barbara A.Are We in a Baby Boomer Retirement Crisis?Investopedia. March 8, 2017. Available online:http://www.investopedia.com/articles/personal-finance/032216/are-we-baby-boomer-retirement-crisis.asp

Dowd,Casey.Dont Let the Independent Myth Ruin Your Retirement. Fox Business. December 20, 2016. Available online:http://www.foxbusiness.com/features/2016/12/20/dont-let-independent-myth-ruin-your-retirement.html

Eisenberg, Richard. Are Your Parents Falling for the Financial Independence Myth?Next Avenue. December 21, 2016. Available online: http://www.nextavenue.org/parents-falling-financial-independence-myth/

Eisenberg, Richard.When Alzheimers Strikes: Losing Your Money Mind. Next Avenue. October 6, 2014. Available online:http://www.nextavenue.org/when-alzheimers-strikes-losing-your-money-mind/

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Busting the Financial Independence Myth - aplaceformom.com

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The Foolish Guide To Financial Independence - fool.co.uk

Photo by Rhys Buccat

In 2012, Sun Life Financial launched five short films, starring the likes of Angel Aquino, Ketchup Eusebio, and the late Lilia Cuntapay.

At that time, the country's leading life insurance company had one purpose in mind-- to boost people's financial literacy and encourage them to invest money.

Little did they know that these films would be recognized abroad. In fact, one went as far as the New York Festivals.

So, as the company celebrates Financial Independence Month this June, they are launching short films titled "Waves" by Zig Marasigan, "She said, She said" by Nic Reyes, and "Sayaw" by Mihk Vergara.

Dubbed "Sun Shorts," these films revolved around three stories love, hope, and commitment that are inspired by real-life stories of Sun Life clients.

Sun Life Brand Ambassadors and Sun Shorts directors. Photo by Rhys Buccat

Each film is accompanied by a reaction video from Sun Life brand ambassadors Matteo Guidicelli, Judy Ann Santos, and Piolo Pascual.

Charo Santos was also present during the launch at the Makati Shangri-la on Wednesday. According to the 61-year-old showbiz veteran, she is proud to have gone through the different stages of life for these taught her many lessons.

"I've gone through the "kilig" of young love. As a mother, I've struggled between raising my children and building a career. And I've experienced what it's like to build a relationship amidst the many trials and challenges of life," she said.

Santos added that she continues to learn a lot of things every day. But above all, she realized that the best things we have are the relationships we build through time.

"The people we love inspire us. They give us courage. They give us purpose. They give us a reason for living, and they made us better versions of ourselves. And so it is very important and it's imperative that we learn to nurture and build these relationships every way we can. These relationships are the ones that will define us as a people," she added.

"And in this Financial Independence Month, this is the message we wish to convey that we should be free to express our love and care for the people we truly love in the best way we can, and make sure that we will secure a bright future for our loved ones and be there for them every step of the way, and Sun Life will help us in making that happen. "

Sun Life's chief marketing officer Mylene Lopa. Photo by Rhys Buccat

According to Sun Life's chief marketing officer Mylene Lopa, Sun Life continues to advocate financial literacy by utilizing the digital platform to reach more Filipinos. Short films, she added, are effective media in conveying powerful messages.

"Through short films you can convey a very beautiful story. It doesn't take too much time. It's not very imposing on our audience. Mga four minutes lang, we can already impart a very important message to them," Lopa said.

On Wednesday night, Sun Life launched the short film "Waves," which instantly garnered millions of views on social media. The films "She said, She said" and "Sayaw" will be launched on June 14 and 21, respectively.

You can watch the video by visiting http://www.sunshorts2.com or following Sun Life Financial Philippines on Facebook.

NOTE: BrandNews articles are promotional features from our sponsors and not news articles from our editorial staff.

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Sun Life kicks off Financial Independence Month with beautifully ... - ABS-CBN News

Being able to achieve financial independence is the goal of almost every investor. Without a doubt, dividends are crucial to meeting this target. Research has shown that dividends will double your investment returns over the long term, and the higher the yield is, the better.

Kcom(LSE: KCOM) has all the hallmarks of an excellent dividend stock and at the time of writing shares in the telecommunications company support a dividend yield of 6.5%.

Over the past few years, Kcom has struggled with rising customer churn thanks to increasing competition, two factors that have weighed heavily on the company's share price. Management has also been investing heavily in the group's offering. For the year to the end of March, the company reported a pre-tax profit of 30.5m, down from 88.7m in the year-ago period as operating costs rose to 299m from 257m.

This restructuring is expected to simplify the group and improve profit margins. Management has aligned all of Kcom's businesses under one brand and is focusing on the operational performance of two segments, Hull & East Yorkshire and Enterprise. In these two markets, the company has almost no competition. Itis now focused on investing in its fibre network within these two regions which should drive long-term growth for both the company and shareholders, without distractions.

Excluding last year's poor performance, between year-end 31 March 2013 and 31 March 2016, the company generated an average annual pre-tax profit of 51m compared to a total dividend cost of around 30m. If the company can return to this historic level of profitability, it looks as if the group's highly attractive dividend yield is here to stay.

Insurance services provider Redde(LSE: REDD) also appears to be a top dividend stock. At the time of writing, shares in the company support a dividend yield of 6.3%. For the year ending 30 June, analysts have pencilled-in earnings per share of 10.5p, the same level as the dividend payout, giving a dividend cover of just one. These figures may not suggest that Redde's dividend is really all that sustainable but just like Kcom, looking at the company's cash figures gives a different picture.

Cash flow from operations is a more reliable indicator of dividend strength than earnings per share, as the latter metric is easily manipulated. If a company does not have the cash to fund a dividend, no matter how strong its earnings are, the payout is not sustainable. For the six months to the end of December, Redde earned cash from operations of 22.3m; dividends paid cost the group just under 15m, easily covered by operational cash flows.

Based on these figures then, Redde's 6.3% dividend yield looks safe and highly attractive in the current low-interest rate environment.

Dividends are essential for building wealth over the long term and thanks to the miracle of compounding,they can significantly increase your chances of being able to retire early and achieve financial independence.

And if financial independence is your goal, the Motley Fool is here to help. Our analysts have recently put together this brand new free report titled The Foolish Guide To Financial Independence, which is packed full of wealth-creating tips. The report is entirely free and available for download today

Click here to download the report. What have you got to lose?

Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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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Two 6% dividends to help you achieve financial independence ... - AOL UK

There are no short cuts to attaining financial independence; it requires discipline and limitation of wasteful spending, especially on non-essential items.

Ester Ochse, Channel Head of FNB Financial Advisory, says Financial independence is the ability to live a financially independent life that neither relies solely on debt as a form of survival or living expenses. The main reason most people grapple with the concept of financial independence is because of a lack of discipline. The National Savings Rate shows that South Africans prefer to spend rather than save and people over extend themselves in as far as credit is concerned.

Theres no truth in the belief that you can only achieve financial independence when you are wealthy, it all depends on developing good money management skills.

In order to see the full worth of your money, you must manage whatever little you have prudently on a consistent basis. Achieving financial independence is an ongoing process; its a behaviour pattern that must be practised consistently.

Here are some tips for achieving financial freedom:

Avoid using debt to fund your lifestyle

Never use debt to fund your lifestyle; the use of credit to fund a particular lifestyle will only move you backwards. Only fall on debt when you absolutely have to and also make sure you understand the impact of the debt on your finances over the long-term. Make both medium and long-term commitments to rid yourself of debt.

Cut expenses

Conduct a careful analysis of where most of your money is spent and you may notice there are expenditures that are unnecessary and can be removed from your list. This is all about gauging whats important enough for you to spend your money on. If you are spending money on things that have no direct benefit to your financial wellness then you will never realise financial freedom.

Save and Invest

Start a savings and investment plan that will cater for your financial needs both over the short and long term. By putting money aside you are letting your money work for you instead of just spending it compulsively.

Examine your financial decisions carefully

Before making any financial commitments look at your financial situation holistically, for example, instead of buying something you really want on credit, rather save for it. Remember that if interest rates increase you may end up paying more to settle that debt. Its better to save for the items you want to buy, its delayed gratification but much cheaper.

Remain consistent

Staying financially independent is an ongoing process, even after you have realised your goal of financial freedom, you need to ensure it stays that way. Ensure that you stay abreast with economic conditions and how they affect you personally. Your financial needs will change according to your life stage; ensure that your finances are also modelled according to the stage of your life.

A mind-set change is the first step, you must change the way you perceive money and what you aim to achieve with whatever amount you earn, adds Ochse.

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Top 5 tips to achieve financial independence | Mpumalanga News - Mpumalanga News