Category Archives: Financial Independence

In North America, the issue of diversity within the financial workplace has improved in the past few years.

A report conducted by McKinsey and LeanIn.org found that at an entry level, women accounted for 52% of the workforce and had also significantly improved at senior levels. Despite this, female representation is still low, especially for women of color. From entry to C-Suite, the number of women of color fell by 80%.

Although representation varies according to the sector, the results are clear; there is still much work to be done to enhance diversity within the financial services industry.

The issue affects not only the people who aim for a career in the financial sector but also the engagement of the general public with companies and the development of varied, innovative solutions to improve the whole of the general population.

McKinsey reported back in 2015 a correlation between greater diversity and increased profits. They stated, Our latest research finds that companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians.

While correlation does not equal causation, the correlation does indicate that when companies commit themselves to diverse leadership, they are more successful.

Various reports and surveys since, carried out by entities such as the Harvard Business Review, have corroborated this conclusion.

As we see that entry-level percentages are now relatively equal, it seems that the problem lies not only within the employment itself. It is the access to the culture surrounding the employment that for many is so essential to climbing the career ladder.

According to Women in Consumer Finance (WCF), the issue comes from three primary sources; access to a professional network, problems with confidence, and lack of career examples.

The annual event focuses on targeting these issues and improving female access to employment opportunities in a holistic and immersive way.

Stephanie Eidelman, CEO and WCF conference co-chair, said, It feels like everything Ive done has led me to Women in Consumer Finance. I have often found myself to be the only woman in a room or one of just a few.

As I think back on my career, I realize that nobody ever really took me under their wing. Although Ive achieved success, I cant help but wonder how it might have been different if I had a stronger hand guiding me along the way.

Women in Consumer Finance is designed to be that guiding hand for anyone who needs it.

Established in 2017, the WCF event aims to bring a community of female finance professionals together, enrich the sector, and support ambition.

The WCF sees a lack of opportunity to access the same social networks as men in the sector, resulting in a disadvantage when applying for promotions, especially at a senior level.

They have found there to be a general lack of confidence when applying to senior-level roles and a lack of leading female role models for entry-level women to follow and learn from.

With the use of the event as a focal point, they have various programs which tackle these issues during the conference and throughout the year. Through the Magic is in the Connection and The WCF Advisory Board programs, they target the problems of networking, confidence, and mentorship head-on with small focus groups matched together by the WCF administration.

In addition, they have introduced the use of the Storyboard, an online platform for articles and testimonies, providing insight and guidance for female professionals.

The co-chairs of WCF, Stephanie Eidelman and Shelly Sheppick, both come from established backgrounds, dedicated to improving the communitys access to career prospects. Sitting on the boards of LIFT and For The Good, they integrate the work they do with WCF into these initiatives.

The two charities focus on empowering women and families to lift themselves out of poverty and financial exclusion.

LIFT provides families with life coaches tailored to family needs to achieve long-term goals and professional connections to create financial stability. For the Good is based in Kenya and is directly involved in improving girls education, encouraging inclusion in secondary education, and financial independence as they grow into womanhood.

We partner with hand-picked organizations where we can make a real impact to help support women and girls, said Eidelman. We support them both financially and via exposure through the conference and inspiring content during the year.

The event targets deep-rooted issues and preconceptions with a three-day networking experience. Ranging from group activities and excursions to panel discussions and team-building seminars aimed at building connections, the conference sets out to enrich the professional outlook of the attendees.

The personal focus on active network building within small groups and story sharing is said to create a friendly and intimate atmosphere.

Testimonials from women at all levels of the career ladder praise their approach, valuing the opportunity and the importance of the event in their professional path during the following year.

This is not a passive listening exercise but rather a 100% immersive experience. There is nothing else like it. In short, we take a unique approach to building confidence, connection, and careers. concluded Eidelman.

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Isabelle is a creative project manager and freelance journalist with a BA Honours Degree in Architecture and a MA in Photography and Visual Media.

With over five years in the art and design sector, Isabelle has worked on various projects, writing for real estate development magazines and design websites, and project managing art industry initiatives. She has directed independent documentaries on artists and the esports sector and assisted in producing BBC Twos Venice Biennale: Britains New Voices.

Isabelles interest in fintech comes from a yearning to understand the rapid digitalization of society and the potential it holds for our future, a topic she has addressed many times during her academic pursuits and journalistic career.

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WCF tackles the issue of diversity head-on - LendIt Fintech News

As a first-generation Australian, and having grown up in a household that was not so fortunate financially, Robert keenly knows the importance of financial independence and wealth.

It's what saw him study business at university, later applying for a job at NAB within its Private Wealth business. But after nine years with the bank, Robert realised that money doesn't buy happiness.

In 2015, he launched his own practice,Baharian Wealth Management and, over time, has developed a love for quant-based investing and ETFs.

While he uses active strategies for his clients' fixed income exposures (there just aren't short-dated floating-rate ETFs available yet, he says), Robert has given up on active investment management within equities - having sold out of his last active equities exposure - in the Magellan Global Fund - around 12 months ago.

In the second edition of our new series Meet the Adviser, Robert lays it all on the table and shares the ETFs that both he and his clients use for long-term success, as well as how the financial advice industry needs to change to better serve Australians.

Why did you choose this profession and how did you get started as a financial adviser?

Im a first-generation Australian and grew up in a household that was not so fortunate financially.

I was about 10 years of age, and I distinctly remember sitting at McDonalds with mum in Doncaster. Its closed down now the BMW Doncaster showroom sits there now. To this day I remember precisely where we were sitting, and I asked her, Mum, which job makes the most amount of money?

I went through high school studying business, economics, and commerce I couldnt get enough of it, I loved it. From here, I knew I wanted to be involved in investing. At university, I studied financial and risk management a deep dive into financial academia. I loved it so much that I began my search for an entry-level job. I landed one at NAB working during the day and completing my studies at night school. I also started a business or two during this time.

And since this realisation, I feel like my job is not only to manage peoples money but to also help them articulate and gain clarity on the purpose of their money. What is it that they are really searching for? I feel like my job is far deeper than just the money. And this is what gives me great joy.

What do you believe makes you different to other advisers in the industry?

I believe our industry is really about relationships. Being genuine is super important. Yet being comfortable being yourself can be really hard. There are so many expectations of what someone in our industry needs to look like, how they should speak, act or just be. Ever since starting Baharian Wealth Management, I have never felt freer to speak my truth. I feel like I can be absolutely open, transparent, and truthful to people.

I think I look at relationships more deeply. I feel the process is more personal now - beyond the money. Sometimes this backfires, there are folk who dont want this, and thats ok too.

I also have a hard time trying to sell an idea to a client if I genuinely cant convince myself of it Im not a very good liar. I think people can sense your conviction when you truly believe something.

Can you share a bit about your process for building portfolios and selecting investmentproducts?

It all starts with the purpose and intention. What is it that we are trying to achieve and why? Deciding whether were going to take the car, train, or plane without knowing where we are going is kind of pointless.

We then design the asset allocation to support these goals and priorities. How much risk can one tolerate? How much risk can they take? How much risk should they take? We spend a lot of time and undertake a lot of work to understand risk tolerance, capacity, and risk required.

When it comes to equities exposures, we use ETFs and rules-based funds. I think of market-cap-weighted ETFs as momentum strategies - you are buying the companies that are going up, and selling those that are going down. I know people think that's "buy high, sell low", but there is a lot of evidence supporting the momentum factor as a persistent investment strategy.

Currently, our fixed income exposure is slightly different. Our fixed income exposure used to be made up of index-based exposure, which in hindsight worked extremely well for us and our clients.

As a result, we decided to use PIMCO as our manager of choice for our "core" fixed income exposure, both in Australia and globally. What we really liked about this was that it was a quasi index exposure with the ability to dial-up and down the duration, with certain limits - so it couldn't blow with the wrong call. I guess it was the rules we liked.

We then complement this exposure with managers such as Realm, which manages our Australian credit, and Bentham, which manages our international credit. Further to this, in circumstances that allow, we further diversify in private real estate debt which is unlisted and provides a great source of income. I think this is an asset class that is very misunderstood by traditional equity and fixed income folk.

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Managed Fund

PIMCO Australian Bond Fund

Australian Fixed Income

Managed Fund

PIMCO Global Bond Fund

Global Fixed Income

Managed Fund

Bentham Global Income Fund

Global Fixed Income

...

Can you share two of your go-to funds with us?

This gives our portfolios an excellent starting point as a core exposure. We would typically allocate around 10-15% of our clients total portfolios to this ETF. A dirt-cheap, globally diversified portfolio of assets. The management fees on this ETF are 0.18% per annum.

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ETF

Vanguard MSCI Index International Shares ETF

Global Shares

...

The days of having to pay a fund 2% to gain exposure to a global quant-based strategy are long gone. We can now access these strategies via a cheap, systematic, listed instrument. We have increasingly been allocating to this ETF over the past 12 months. The management fees on this ETF are 0.35% per annum.

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ETF

BetaShares Global Quality Leaders ETF

Global Shares

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How do you discover new managers and investment opportunities in a market saturated withproducts and issuers? What makes a manager stand out?

This is part of the problem and challenge for investors. There is always so much going on. Its like visiting a Las Vegas casino. Where the heck do you even look!? The colours, the bright lights, the noise, its enough to make you go nuts.

And for this reason, I think it is imperative that advisers and investors have a very clear investment philosophy and methodology. We have a very clear investment strategy, one that is based on evidence, which cuts out about 90% of the noise.

A pitch deck from a fund manager arrives in your inbox, what happens next?

To be brutally honest, not much. It depends on where it came from. If it's completely unsolicited, its generally deleted. If it's through a contact or my network, Ill always look at it. Ive never met a manager whose fund has underperformed their chosen benchmark. And so, I think its super important that we kick the tyres internally. Well run the fund through our internal software and give it a test. Generally speaking, theres a lot of good marketing in our industry. My starting point is always a sceptical one, and so it takes a lot to convince me otherwise. Ill always ask myself, 'Would I invest my personal money into this thing?'

We also have clients bringing opportunities to us. Weve invested in some PE and VC deals this way. Theres a lot of "who you know" that plays a key role in those asset classes, I think.

How would you describe your personal investment strategy?

Great question. I compartmentalise my portfolio to align with my personal goals - its very structured. I have real estate because I wanted it to satisfy a need. I didnt have a view that real estate was going to outperform.

I dont hold any defensive assets. Im too young. I dont care what happens in the short term. Id happily ride volatility and illiquidity. So, Im all in for risk. The task for me, however, is how do I break down the risk within the risk.

I touched on this earlier, but running businesses have a higher degree of risk, and so I have a portfolio of liquid investments that are made up of global listed investments that I believe are lower risk.

What are the top three holdings, in percentage terms, in your personal portfolio and can you tell mea bit about why you hold each of these positions?

Its a clean, simple and cost-effective way to gain exposure to the Australian market with some factor tilts that have generated consistent alpha. This fund is an actively managed quant-based fund, which provides index-like returns, but with a little more alpha and without human bias.

It acts as my global anchor, and I can build exposure around this core holding.

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ETF

Vanguard MSCI Index International Shares ETF

Global Shares

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This sits alongside my VGS exposure and concentrates on the biggest and the best 100 companies around the world. I think this is one of the cheapest products in the market and a great momentum strategy.

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ETF

iShares Global 100 ETF (AU)

Global Shares

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Could you tell me about your worst investment? How did you deal with this falling position orfund?

Will my wife see this? Where do I start? The RAMs IPO (acquired by Westpac in 2007), Murchison Metals (acquired in 2014), Zip Co (ASX: Z1P), the list goes on. Ive lost hundreds of thousands of dollars in the past, taking the advice of brokers, picking the next winner, or just having FOMO. Ive learnt a lot from these experiences, and I think its helped me become the investor I am today and a better adviser to clients. Although I bought Bitcoin in 2021 at, I think, precisely the top ha!

What conversations are you most frequently having right now with clients? And what is youranswer to these questions?

Im quite proactive with our clients. I write to them weekly. This gives me an opportunity to provide a point of view on whatever is making headlines at the time. It means we generally address any market-related queries proactively without our clients wondering what this means for them. Having said this, the most topical questions we are receiving are:

My response: Of course, we will. Will it be in the next 12-18 months? Maybe, who knows. History tells us we have a recession, on average, about every 3-4 years. And they last around 18 months. Since WWII however, we've gone an average of about 5 years without a recession. The last one was less than 24 months ago, and the one before was almost 15 years ago.

These things never play out on averages. In fact, the average return in the stock market is about 10% per annum. However, the stock market has returned 10% per annum in only a handful of years. Youre more likely to experience a double-digit loss in a given year than a return thats close to the long-run average. And more than one-third of all years have seen a gain of 20% or more.

History says there's a 37% chance of a recession in the next 18 months. The real cause of the recession won't really be known until after the fact. Even then, well, we may never know what really caused it. Just like the stock market, averages are averages because that's what they are. We also know they dont last forever.

Youve got cash to help fund expenses/Youve got time on your side to see this through and you dont need the funds.

When we look at the data, we see that geopolitical events unfold all around the globe far more frequently than what is perhaps originally thought. What is obvious to me after seeing the data, is that the long-term impact on financial markets is almost non-existent. Here are some of the facts:

From this, we can deduce:

The challenge this time around for markets is that they were already trying to deal with inflation and higher interest rates coming off the back of a stellar few years in the market. Although some aspects of the data surprised me, others didn't. The obvious one is the market's ability to evolve, adapt, improve, and grow, even in the face of adversity.

The challenge for us as investors is to look beyond the now. By the time you and I can react or respond to the news, the market has probably already priced in the information. It does it pretty quickly and pretty well.

What are the most common mistakes you see in the portfolios that you inherit and how do you go about fixing them?

Great question. The mistake is only my point of view of the situation. Im sure there is always a good reason for certain holdings or the way the portfolio was designed. I would say the portfolio has just been managed differently.

Its an education process, and it takes time. Early on, as a young university student, I spent years looking at financial research, speaking to brokers, and losing hundreds of thousands of dollars betting it all on stocks. I remember when I was 23, a broker convinced me to invest in the RAMS Home Loans IPO. After the stock fell 80%, he called me and tried to convince me to buy more, because Westpac was taking the company over. That was the straw that broke the camel's back, so to say, and got me interested in a rules-based methodology.

I spend a lot of time going through facts, figures, and evidence. I try and present this data in a simplified way. Eventually, when clients see the data, they make decisions themselves. I think part of what Im here to do is to empower people to make confident and thoughtful decisions with their money.

If you could change one thing about the industry so that it can better serve Australians, whatwould that be?

Wow. This is a tough one. Just one? I feel like our industry and profession is treated with little respect by regulators. I feel like advisers are like rag dolls being pulled in all sorts of directions. Rules come in, and rules get thrown out. More rules come in, then get thrown out.

We need simplification, not more complexity. Rant over.

Can you share a personal passion or ambition you have for your future?

I run a company called The Good Company. Its a profit for purpose food company. We use profits to help fight poverty and hunger around the world with our partnership with The Hunger Project Australia. Id love to be able to contribute to human consciousness and global change, albeit in a very small way. Its been running for around six months, we have some products in retailers around Melbourne. You can check it out here.

I quit my corporate job to spend more time with my family, and ironically, have ended up starting two new companies afterwards. Its really important for me to spend quality time with my family and explore new places during holidays.

Did you enjoy Livewire's new Meet the Adviser series?

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You can access more of our Meet the Adviser and Meet the Investor interviews by clicking here.

We are looking forward to hearing from more financial advisers in 2022. If you are interested in being profiled in our Meet the Adviser series, contact us using the email address below:

content@livewiremarkets.com

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Meet Robert: Fed up with the noise, this adviser has a few secret weapons - Livewire Markets

Editorial IndependenceWe want to help you make more informed decisions. Some links on this page clearly marked may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

You dont need an astronomical salary to retire early.

What you do need is a clear strategy on how to pull from retirement accounts without leaving money on the table. In fact, the way you leverage your IRA or 401(k) as you pursue FIRE (Financial Independence, Retire Early) status could make or break your personal finance goals.

I have seen people achieve a FIRE lifestyle when each member of the partnership makes $45,000 to $50,000 a year, says Cait Howerton, a certified financial planner (CFP) with Facet Wealth, a firm dedicated to unbiased, conflict-free financial planning.

As you inch closer to financial independence, youll eventually want to make withdrawals from your IRA or 401(k). If youre under the age of 59 , however, this action comes with notoriously hefty penalties that can leave thousands of dollars on the table and throw off your freedom number (the amount of wealth you need to retire early) completely.

Here are your options and how to proceed if accessing retirement funds early is on your mind.

Proponents of FIRE aim to retire years or even decades ahead of schedule. But there are other scenarios in which you may want to tap into your retirement accounts sooner than expected: Financial hardship, big career pivots, or self-funding the launch of a new business are common reasons to dip into these accounts.

Whatever your situation may be, its good to be aware of what financial planners call retirement fund diversification. Your long-term savings plans usually fall into one of three buckets:

To achieve FIRE, Howerton says, folks in lower salary tax brackets do focus on cutting expenses as much as possible. But they also employ investing strategies that can help anyone tap retirement accounts early without resorting to extremes.

Retirement accounts are important for achieving financial freedom, but many people delay setting up a strategy until its too late. Maximize your savings across taxable, tax-deferred and tax-free accounts to set yourself up for whatever surprises and opportunities come your way.

One couple Took advantage of maxing out one of the partners 401(k)s, says Howerton. Then they took advantage of contributing to Roth IRAs and putting money into brokerage accounts so that they had tax diversification.

Dawn Dahlby, a CFP and behavioral financial advisor, agrees. Diversification creates a ton of flexibility for the pre-retiree, and it helps balance tax ramifications throughout your life.

So what accounts should you tap, and in what order? Heres the pecking order that will help you maximize your savings.

Roth IRAs have the most restrictive contribution limits. In addition to the income ceilings mentioned above, the maximum annual contribution for a Roth is $6,000 per year ($7,000/year if youre age 50 or older). But if you plan ahead, you can use these accounts to withdraw money completely tax-free.

The workaround here is to be aware of Roth conversions. In a Roth conversion, you can move money from a tax-deferred retirement account, like a Traditional IRA or 401(k), into your Roth account. There are no income or contribution limits on Roth conversions.

Youll have to pay taxes on the amount you move between accounts, but you wont pay early withdrawal penalties (And you would have had to pay tax on this money anyway, since the contributions were pre-tax). This money can then grow tax-free in your Roth account, and you can withdraw it after a five-year waiting period without penalty.

Because a Roth conversion is a taxable event one that not only raises your taxable income, but could also bump you up into a higher tax bracket you may want to split the move into multiple conversions over several years.

This is known as a Roth conversion ladder, and its a fantastic way to maximize savings while also pursuing your FIRE aspirations. The Roth conversion ladder is an example of how strategic savings and tax planning can get you to your retirement goals faster.

Maximize your tax-free income over time, says Janet Galloway, a CFP with B&B Strategic Management. Lets pay what we legally have to, but not pay more than we actually have to.

Roth conversion ladders have several steps and require careful planning with a financial expert. For example, the five-year waiting period applies to each conversion, so youre limited on when you can withdraw funds from your Roth accounts based on when and how you opened them. A financial planner can help you determine how much youll need each year in retirement before 59 1/2 and set up a strategy to make sure you have access to the funds you need at the lowest cost possible.

A Roth conversion ladder is a multi-year strategy that can save you thousands or even tens of thousands of dollars in the long run. As Dahlby points out, though, theres an opportunity cost to withdrawing funds from a Roth IRA early: Missing out on tax-free gains.

In a perfect world, we dont like people to take money from their tax-free accounts, she explains. We put clients most aggressive investments in the Roth because they grow [tax-free]. She recommends first tapping taxable accounts, such as an investment account with a brokerage, because they dont come with penalties or limitations. Additionally, the capital gains taxes youll pay are lower than the income taxes youd pay on traditional retirement accounts.

After that, it becomes about weighing the cost of an early withdrawal penalty from your tax-deferred accounts against the opportunity costs of pulling from a Roth account.

Just pulling from your Roth right away might not always be the best idea, says Dahlby.

A traditional 401(k) the most common retirement plan available through an employer comes with plenty of options for pulling your money out early in case you need it. These options come with major drawbacks.

Withdrawing money from a 401(k) before youre 59 1/2 years of age comes with a 10% penalty in most cases. The penalty is tacked onto your tax bill for the year on top of the income tax youll owe on your withdrawal. The IRS makes exceptions to this penalty: You can withdraw due to financial hardship, take out a 401(k) loan if the plan allows it, or take distributions if you leave your job at 55 or older.

Youre robbing Peter to pay Paul, says Galloway. Youre taking away from your retirement lifestyle to fund your current lifestyle.

However, as Dahlby says, you have to weigh this penalty against the potential gains youd forgo by withdrawing early from a tax-free account.

Paying a 10% penalty might not be the end of the world, she says. Sometimes paying the 10% penalty isnt as bad as you think it is for having the opportunity to get access to those funds.

The most important thing you can do especially if you have the advantage of starting early is give yourself options. Dont rely on one type of long-term savings account; it might not meet your needs down the road.

Life changes every three to five years, Dahlby suggests. So its never too early to plan.

If you find yourself forced to stop working early or suddenly become able to because of a windfall having both taxable and tax-free accounts to tap into without penalty could help you maintain your lifestyle in early retirement. Work with a financial planner to understand your options, and use your available resources strategically.

We live in an uncertain world, says Dahlby. Our goals and plans change constantly. You want to be able to pull different levers and pull different money from different buckets based on whats going on.

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Curious About FIRE? Heres How to Set Up Your Retirement Accounts Now to Avoid Hefty Penalties Later, According to Experts - NextAdvisor

Larimores philosophies investing and life

Larimore told me the keys to financial independence are to live below your means, save regularly, keep costs and taxes low, avoid large mistakes, keep things simple and stay the course.Larimore said the three biggest mistakes people make are:

Indeed, Larimores most recent book,The Bogleheads Guide to the Three-Fund Portfolios, shows how a simple portfolio of three total market index funds outperforms most investors with less risk.

The three-fund portfolio is simply:

Total, in this case, means owning large, midsized and small company stocks. The S&P 500, for example, is a large-company stock index of 500 companies. A total stock U.S. market index is a broad-based index of U.S. stocks, big, midsized and small, including more than 4,000 company stocks.

Larimore said that the main values of total market index funds are their low costs, low taxes, great diversification and simplicity. With just those three funds, adjusted to your desired mix of stocks and bonds that suit your goals and your appetite for risk, you can own virtually every publicly held company on the planet and the vast majority of U.S. investment-grade bonds. As part of his never-ending desire to give back, Larimore has donated 100 percent of his royalties to the John C. Bogle Center for Financial Literacy (I am a past board member).

I asked Larimore the single most important piece of advice he had for seniors and he said, Keep what youve got. This means dont take unnecessary risks. If you lose 25 percent of your portfolio, youll need to earn about 33 percent just to get back even.

Even more than his financial philosophies, what I admire most about Larimore are his views on life. He told me he thought his key to longevity and vitality could be that he seldom worries. I was a young paratrooper in World War II where I saw the horrors of war, he said. After the war, I flew around the world, visiting many poor countries where I saw terrible poverty. These two events made me very grateful to be an American from a loving family. Compared to others, I realize, deep down, that I am foolish to worry about myself.

I think Im going to focus on his life lesson and worry less about the small stuff; it has certainly worked for Larimore. As Morningstars Christine Benz told me, Taylor is an inspiration in how to live well. I couldnt agree more.

Unsurprisingly, Larimore has no shortage of admirers. I was honored to be one of more than 100 people from across the country and world who attended his 98th virtual birthday party, organized by the South Florida and Tampa Bay Bogleheads chapter coordinators. For roughly 90 minutes, we gave our tributes to this great man and shared what we learned from him. In my tribute, I thanked him for helping so many people achieve their financial freedom.

If you would like to learn more about Larimore and the wisdom he has offered over the years, you can go to Bogleheads.org and check out the more than 55,000 posts he has contributed. If you want some information on a specific topic on investing or personal finance from people not trying to sell you anything, simply type the subject into the search engine. With 116,000-plus members who have made more than 6.4 million posts on over 334,000 topics, the odds are good that there will be something for you. And you do not have to be a member to read these posts.

Thank you to all of the volunteers for the community theyve created and the countless hours theyve given to help people across the world achieve their financial freedom. And thank you, Taylor, for all you have done and continue to do. We look forward to your 99th birthday party and many more.

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Investing Lessons From Taylor Larimores 98 Years of Wisdom - AARP

NEW YORK--(BUSINESS WIRE)--Carefull, the first digital platform built to protect the daily finances of older adults, today announced a pilot program with Nationwide and their Innovation team, leveraging access to Carefulls safe money monitoring technology.

In using its technology to support the 45 million U.S. adults who coordinate and protect daily finances for an older parent, Carefull will join Nationwides broader effort to offer on-demand solutions for the uncharted territory often navigated by its members who are actively caring for an aging loved one.

The Nationwide team knows that supporting caregivers and older adults in this environment means more than educational pamphlets; it means offering customers industry-leading monitoring, family communication and identity protection technology, said Todd Rovak, a Carefull co-founder. We now know that financial caregiving is as much as a 20-year need, so its fantastic to see Nationwide offer the latest technologies and step up with a system that empowers both older adults and those who support them.

Carefulls artificial intelligence platform will help participating Nationwide caregivers by analyzing checking, savings and credit card accounts for more than 30 issues that can affect finances of older adults, such as late or missed payments, behavior change and mistakes, unusual banking activity, cash transfers and charitable contributions that unknowingly recur. Users of the technologyincluding seniors, select family members and caregivers who support themcan receive notifications if any fraud or issues are detected.

Nationwide hopes to support and augment the efforts of financial caregivers while enabling their aging family members to better maintain daily financial independence. Going beyond typical monitoring, the Carefull service will also enable robust communication among family members who are involved in the financial safeguarding process.

"We are always looking for ways to provide extraordinary care to our members and we think teaming up with Carefull is a great way to help us deliver on our Nationwide promise. Being able to do more for our members during their caregiving journey is what we are most excited to lean into and improve, said Bobbi Jo Allan, vice president of digital product management & innovation at Nationwide.

Participating Nationwide customers can use the Carefull service for financial accounts and credit and identity monitoring, and also gain access to Carefull's financial independence tools, advice and content on the Take Care blog, Financial Independence Guide, and Financial Caregiving Roadmap.

About Carefull

Carefull is the first digital platform built to protect the daily finances of older adults, along with the 45 million U.S. adults managing the daily finances of an older loved one. Founded in 2019, Carefull's technology integrates senior-specific financial monitoring, identity theft protection, communication, and how-to content, replacing the ad hoc paper pile, spreadsheets, bill stack and hold music that today greets adults caring for someone else's money. Carefull believes that creating safer, smarter tools for financial caregiving isn't only about money. It's about relentlessly simplifying the awkward tangle that happens when money and family come together. For more information visit http://www.getcarefull.com.

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Carefull and Nationwide Team Up to Support Financial Caregivers - Business Wire

By Dr. Erik Hofmeister, Guest Writer

My wife and I hit our financial independence (FI) target number this summer, in our early 40s. We are both professional academics and are currently renting, and we will continue to rent until we actually retireat which point we will move into one of our current investment properties. I am often struck by peoples obsession with owning a home. We owned a home for 15 years, and it was a wonderful experience for that time in our lives. But owning a home should not be universally equivalent with financial success.

Here are seven reasons renting can be much better than owning. Residents, in particular, take heed.

Everyone thinks renting is throwing money down the drain compared to owning. You know whats throwing money down the drain? Buying over $10,000 of stuff the first few months of owning my first house, which rapidly depreciated. Lawnmower, toolset, dining room table, new paint, hedge trimmers. It was ridiculous. A lot of people just look at the mortgage rate per month and compare it with the rental rate. Obviously, you need to add taxes and insurance. And then all the other stuff.

Theres a reason that investment property owners tend to assume that about 45% of the rent will go to expenses. There are a lot of expenses of owning a home separate from the mortgage, taxes, and insurance. A new AC unit, a new refrigerator, dealing with flooding. Theres always something going wrong when you own a house. When we sold our first house, it was an incredible relief. I was constantly worried something serious would happen that would be expensive to repair.

This is different from #1 because it depends on the market. We currently live in a college town that also happens to have an incredible school district. This means that buying a house is fairly expensive because all of the faculty want to be in the city limits so their kids can go to a good school. Simultaneously, renting is relatively inexpensive, because the student population keeps rental prices down.

There are many markets like this around the country (and the world). The Bay Area, Toronto, New York City, and Seattle come to mind. Youre actually better off renting and investing the savings. Its just too expensive to buy a house.

Not only do you not have to buy the toolset if you rent, but you dont have to do the work! Just call up the rental company, and it's taken care of. On a website where people regularly discuss the cost of something that saves them time (hiring landscapers, cleaners, etc.), I am surprised people dont calculate the value of the time they spend taking care of their house. Maybe they hire out those things, as well.

How is your experience hiring a contractor to do a $50 job? Mine is abysmal. They rarely actually show up and then you have to check them to make sure its actually done. I dont even have to be home for the rental company maintenance to come take care of something. It has been literally life-changing to not have to take care of home maintenance and repairs personally. I hated cutting the grass (to the tune of two hours), and the cost for paying someone else was far more than I thought it was worth. Maybe I could have found a neighborhood kid, but I would still need to get fuel for the lawnmower and do its maintenance. At my rental, its just . . . all taken care of.

I really enjoy walking to work. Ive been doing so regularly for the past three years, and I cannot imagine ever again living somewhere I couldnt walk to work. You know whats not within walking distance of my current workplace? Single-family homes or townhouses. There are some small condos, lots of mobile homes, and some fancy student apartments. So, if I want to walk, Im either renting or buying something I dont really want.

Maybe your thing is being on the water. Maybe its having a pool you dont need to maintain. I loved living in apartments in Phoenix and always having access to a pool that I didnt need to think about maintaining. Maybe its being around people (or away from people). There are dozens of reasons why a certain location may be better to rent than buy.

Everyone seems to hand-wave this away. Yeah, yeah, you have to own it for more than five years because of transaction costs. But think about the math on this. The realtor takes 6% of the gross sale. You usually have to pay a lawyer and lots of little fees like title searching. There are potentially other transaction costs, though.

Depending on your circumstances, you may move into your new place before you can sell your old one. You would have to pay for both locations. Although this is possible if youre renting (its happened to me twice), its usually a lot easier to leave a rental than to sell a house.

Some houses you may sell as-is, but you should expect to get a lower offer if you do so. You may need to do painting and other cosmetic repairs. You may need to roust vermin from your attic or under your porch (armadillos are surprisingly pernicious). You can DIY, saving money but costing you time and hassle. Or you can hire others, often at exorbitant rates. (Guess how much youll be charged to get rid of an armadillo. Triple that and you may be close to right.)

A key principle of successful financial management is to limit your downsidehow much you might lose in a transaction. Theres a reason the term money pit exists for houses. Pretty much every house has hidden problems that can blossom into serious catastrophes. If you own, youre on the hook for anything that happens. If you rent, the worst they can do is take your deposit and possibly bill you for damages you caused (e.g. carpet replacement due to cat urine). There is substantially less risk to your finances if you rent rather than own.

For a blog dedicated to people being financially free, Im curious why so many are excited with the idea of being bound to a house. I suppose you could theoretically walk away and stop paying the mortgage, but that has significant consequences. If you walk away from your rental, the worst thing that happens is you pay the rent until the lease runs out. More importantly, you have a lease. You KNOW when you can get out. In planning for an early retirement, it is nice to know that we can plan our transition away from this house at the exact same time we transition away from work.

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When to Rent vs. Buy a Home

Owning a house can sometimes be good. I tell the vet students to whom I teach personal finances that if they really want to dig up the backyard and fill it with rocks, yes, you need to own a house. If they want to knock down walls and install a walk-in shower, they need to own. But renting has many benefits and I think everyone assumes that, once your finances are set, you should buy. I am here to tell you: you can be FI but be perfectly happy renting.

If you include it in your retirement budget, it can be just like health insurance, food, travel, or any other expense. Run the numbers, consider the intangibles, and dont let anyone else tell you what you should do with your housing.

Do you agree? What other benefits have you experienced by renting instead of buying during your residence? Comment below!

[Editor's Note: Dr. Erik Hofmeister is a Professor of Veterinary Anesthesia at Auburn University and blogs about veterinary academics at vetducator.com. This article was submitted and approved according to our Guest Post Policy. We have no financial relationship.]

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Is Renting Better Than Buying? We Think So. - The White Coat Investor

A key part of your retirement financial plan may be based on a faulty assumption.

Im referring to whether youll save and invest more for your retirement after your children become financially independent. Thats when your earning power is likely to be the highest it will ever be and you have the potential to make major contributions to your 401(k) or IRA. In addition, by earning all you can, you postpone further into the future the time when you have to start withdrawing from your retirement portfolio.

Many financial plans are based on the assumption that you will make those large contributions and postpone retirement withdrawals as long as possible. But researchers have failed to find strong statistical support for this assumption. While the data show that households do in fact decrease their spending after their kids become financially independent, their savings and investments dont show a corresponding increase. If households are spending less but not saving and investing more, wheres the money going?

A new study from Boston Colleges Center for Retirement Research (CRR) set out to tackle this question. Entitled Do Households Save More When the Kids Leave?, the study was written by Andrew Biggs, a senior fellow at the American Enterprise Institute; Anqi Chen, a research economist and the assistant director of savings research at CRR; and Alicia Munnell, director of the CRR.

The researchers focused on data from the Health and Retirement Study (HRS) from the University of Michigan. The HRS, which is conducted every two years, is perhaps the most comprehensive examination available of attitudes toward retirement; it is based on a survey of around 20,000 Americans over the age of 50. After consideringand ultimately rejectingseveral other possible answers to the question wheres the money going?, the researchers arrived at a tentative answer: Parents are choosing to work less after their children become financially independent. That explains how it can be true that both household consumption and savings/investing decline.

How much less are parents choosing to work? The accompanying chart provides an answer. On average, according to the researchers, the hours worked per week stand at 53 or higher in the years immediately prior to their children becoming financially independent. This steadily drops in the subsequent years, and by the sixth post-independence year the average stands at around 37. (These numbers not only reflect averages across many different households, but across different definitions of when children achieve financial independence.)

Not necessarily irrational

I hasten to add that it isnt necessarily irrational for parents to work less after their kids leave home. It doesnt automatically make sense for them to continue knocking themselves out working in order to save and invest for a retirement that is uncertain. As economists teach us, when uncertainty is higher we need to discount the future at a greater rate when calculating its present value. A near-retiree who views the future as particularly uncertain may be entirely rational in not saving and investing as much as financial planners traditionally recommend.

Theres another reason why its not necessarily irrational for parents to work less after their kids leave home: Leisure time when youre younger can be more valuable than the equivalent amount of leisure time when youre much older. A retiree in her late 60s might very well enjoy travel a lot more than when shes in her 80s, for example.

These all are highly personal considerations, of course. But what would be irrational is for you to base your retirement financial security on the assumption that your savings rate and investments will rise significantly after your children become financially independentand then not to follow through. In that event youre setting yourself up for a rude awakening once you do retire.

The key, in other words, is to be realistic. If you want to work, save and invest less after your kids become financially independent, then make sure that is accurately reflected in your retirement financial plan.

Mark Hulbert is a regular contributor to MarketWatch. His Hulbert Ratings tracks investment newsletters that pay a flat fee to be audited. He can be reached at mark@hulbertratings.com.

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What happens when the kids leave home? - MarketWatch

SAN FRANCISCO--(BUSINESS WIRE)--Three out of four U.S. workers (75%) are facing at least one source of major financial stress1 and more than half (51%) felt more stressed about their finances in 2021 than ever before,2 according to new research published today by SoFi at Work a leading holistic, financial well-being and education assistance benefits Partner to more than 1,000 organizations and Workplace Intelligence, an HR research and advisory firm. As a result of this increased stress, employees are pivoting their personal and professional lives with some taking on second, part-time jobs (25%), while others opt to carry higher credit card debt (25%), or tap into retirement savings (19%)3 and employees are spending a weekly average of 9.2 hours4 on their personal finances, while at work.

But theres widespread optimism across the workforce that 2022 will be a year of positive change when it comes to personal finance progress, with more than 9/10 (91%) of employees confirming theyve committed to improving their financial well-being by setting financial goals for 2022.5 Perhaps even more important is the increased budget that 75% of employers plan to put toward financial well-being benefits programs within the next two years6 in order to ensure employees have the tools they need to reach those goals.

SoFi conducted the study which was based on 1,600 responses from 800 HR business leaders and 800 full-time employed workers from across industries, locations, and job types to understand what role financial well-being plays (or could play) in employees' work-life, and to help employers gauge how certain benefits such as employer contributions toward student loan debt, financial literacy tools, emergency savings account access, and more might impact the broader business and employee experience at their organizations.

The findings revealed that improving employees financial well-being could have a ripple effect in driving increased worker productivity (86%), desire to stay with their employer (86%), job satisfaction and engagement at work (84%), ability to focus (84%), as well as improved mental (84%) and physical (80%) health.7

The report also revealed less obvious, but equally impactful, areas where employers have an opportunity to provide more holistic financial well-being support for employees whether thats through comprehensive education assistance programs, or more cutting-edge integrations that employees across industries are expressing interest in like the option to receive performance rewards in the form of NFTs (42%) or be paid in cryptocurrency (36%).

Other key trends and supporting data points from the new report, The Future of Workplace Financial Well-Being, which can be downloaded here include:

SUPPORTING QUOTES

Todays business leaders are facing a daunting set of growing concerns around some of the biggest business challenges in recent history, like talent scarcity, increasing concerns around the impact of rising inflation on compensation (67%),8 and others, said Jennifer Nuckles, EVP and Group Business Unit Leader, SoFi. With this, its important to realize that there are other levers employers can and should pull to add value. One size does not fit all when it comes to financial well-being and financial education. The research we published today provides employers with actionable insights and forward-looking perspectives on employee expectations to help provide a roadmap for the future of workplace financial well-being.

Offering financial well-being benefits isnt just the right thing to do its also a critical way to boost employee engagement and productivity, said Dan Schawbel, Managing Partner, Workplace Intelligence. But peoples preferences are quickly evolving, and the companies who can adapt quickly are the ones that will come out on top in the war for talent.

METHODOLOGY

Research findings are based on a survey conducted by Workplace Intelligence and SoFi at Work in the U.S. between December 2129, 2021. For this survey, 1,600 HR leaders and employees were asked questions about financial well-being, financial literacy, and financial benefits. The study targeted full-time employees between 18 and 74 years of age. Respondents were invited to take part via email and were provided with a small monetary incentive for doing so.

ABOUT SOFI

SoFi (NASDAQ: SOFI) is an all-in-one digital personal finance company that helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing and protecting give our three and a half million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including access to career advisors and certified financial planners, as well as connection to a thriving community of ambitious people. SoFi owns and operates Galileo Financial Technologies, a platform bringing investment and lending products to the financial services ecosystem and its partners, and Technisys, a leading cloud-native, digital multi-product core banking platform, as independent companies. SoFi is a Bank Holding Company and operates its bank subsidiary as SoFi Bank, National Association. SoFi is the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit SoFi.com or download our iOS and Android apps.

ABOUT WORKPLACE INTELLIGENCE

Workplace Intelligence, LLC is an HR research and advisory firm helping leaders adapt to trends, drive performance, and prepare for the future. Our mission is to create more intelligent workplaces using data-based insights. For more information go to our website and subscribe to our LinkedIn newsletter.

___

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Advisory services are offered through SoFi Wealth LLC, an SEC-Registered Investment Adviser. Information about SoFi Wealths advisory operations, services, and fees is set forth in SoFi Wealths current Form ADV Part 2 (Brochure), a copy of which is available upon request and at http://www.adviserinfo.sec.gov.

SoFi at Work is offered by Social Finance, Inc. SoFi loans are offered by SoFi Lending Corp. or an affiliate, licensed by the Department of Financial Protection and Innovation under the California Financing Law, license #6054612; NMLS #1121636 (www.nmlsconsumeraccess.org). The Student Debt Navigator tool and 529 Savings and Selection tool are provided by SoFi Wealth LLC, an SEC-Registered Investment Adviser. For additional product-specific legal and licensing information, see SoFi.com/legal. 2750 E. Cottonwood Parkway #300 Cottonwood Heights, UT 84121.

2022 Social Finance, Inc. All rights reserved. Information as of April 2022 and is subject to change.

Social Finance Inc. values your privacy and the security of your personal information so please do not include your Social Security number in any email or letter that you send to us.

Social Finance Inc. 234 1st St., San Francisco, CA 94105

1,2,3,4,5,6,7 The Future of Workplace Financial Well-Being, SoFi at Work, March 20228 Cost of Living Adjustment (COLA) Survey, Salary.com, March 2022

SOFI-F

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SoFi at Work Study Reveals Three in Four Workers Are Stressed About Financial Issues, Spending 9+ Working Hours Per Week Dealing With Personal...

CEO Wes Paul discusses real American success story as an inspiration and blueprint for others

FT. LAUDERDALE, Fla., March 28, 2022 /PRNewswire/ -- Blueprint Mastermind began releasing episodes of a new serial podcast to support its ongoing mission to help educate and provide clients the tools needed to craft brighter financial futures. Speaking on various topics related to financial independence, Wes Paul explains how pursuing the American Dream starts with understanding how to build a solid credit foundation. Since Paul moved from being an out-of-work service employee to an educated financial professional with a thriving business in just three short years.

Wes Paul discussed his background and Blueprint Mastermind's educational goals:

"We hear all the time that financial success is about working hard and having a dream, then making that dream happen. And while that sounds great on a t-shirt, the reality is never that simple. America is still the land of opportunity, but two things are absolutely certain in this economy: If you're rich to begin with, most doors are already wide open to you. And if you're not rich, you have to open those doors up yourself. You do so in two ways: by cultivating relationships and getting a financial education. This is just one of the many topics we discuss on the podcast. We always try to keep the information real and accessible to our clients, because they absolutely need solutions they can leverage immediately."

"If you're going to teach people how to start walking the road toward some version of financial success, experience is the best guide. And I have plenty of it. Right before the pandemic, I worked as a server. I lived a little extra when I was single and I was accustomed to working hard, assisting customers; that was my life before, and it became my training ground. It paid my bills and helped keep me afloat. But then COVID-19 happened and our business basically closed laying me and many others off. I had about two grand left to my name and a new baby on the way. So, I was ultimately left without a choice. I had to take a risk and enroll myself in some financial literacy courses."

Story continues

Blueprint Mastermind: Financial Independence Starts with Education

"In just a few months, I learned how credit worked and started a business with friends and family as my first clients. I built a team of skilled folks who could offer a wider range of assistance, each providing their own special expertise. And over the course of three years, my very first company, "Uptrend Credit Solutions," was born.

"My team is the heart of it: I could never have made it without them. But though the journey was tough, I ended that startup year with a total of 1000 clients and sales in excess of $500,000 which was amazing. There were times when I felt despair because I had to repeatedly fail just to see how success works. But as my business started building momentum, I started generating new leads and formulating an overarching business strategy. My life is now completely transformed all due to the power of financial education and relationships. These are the types of skills I routinely provide to my clients and discuss during the podcast."

For the latest strategies and free tips on credit-repair, or updates on new podcasts and products as they are released, follow Uptrend on social media: Facebook, Instagram, YouTube, LinkedIn.

About Uptrend Credit Solutions

Uptrend is transitioning to become a fintech platform that specializes in providing in-depth credit monitoring and education to help underserved individuals and communities understand their options. Uptrend has always believed that anyone can achieve financial freedom by leveraging credit, through the power of education and financial literacy. The path to a brighter financial future begins with good credit. Uptrend can help. Fully licensed, insured, and accredited by the BBB, learn more at: http://www.UptrendCredit.com.

Although the first business that I created was Uptrend Credit Solutions and Uptrend business, I have always thought to create a worldwide blueprint organization which focuses on financial literacy; to become a role model for people like me that even with empty pockets, I was able to build my business. I wanted to create a space in which people can connect and create inspiration by sharing their personal blueprint.

Media Contact: Wes Paul, CEO and Founder+1 (833) 425-0355 x110 332190@email4pr.com

Cision

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SOURCE Uptrend Credit Solutions

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Blueprint Mastermind Presents New Educational Podcast as Part of Ongoing Mission to Help Clients Build Financial Literacy Foundation - Yahoo Finance

Okay, its true. Theres a magic number that can help you achieve financial independence, and even quit your job to retire early. But its not what you think.

Youll sometimes see numbers thrown around of how much you need to retire comfortably. A million. Two million. Three, just to be sure. Wanting to retire early? Better make it four million, so that you dont ever run out. Sure, why not?

Except Im not an Auckland home. Im just not worth that much, and I dont know if I ever will be. Am I going to let that stop me working towards financial independence? No.

Because all of those goal numbers are irrelevant. Theyre not the magic number that will actually help us.

Whats important is not a dollar figure that we can pretend applies to everyone. One size does not fit all when it comes to money. Instead, what we want is a plan snugly fitted to you and your life, goals and values. Something that gives you what you need, what makes you happy, and doesnt waste your time on anything more.

READ: Financial Strategist Hannah McQueen On How To Save Money The Smart Way

So if you want financial independence, the first thing you need to think about is what you want in life. Then you need to do just the smallest, simplest bit of maths.

How much does it cost you to keep a roof over your head? What are the things in your life that make you truly content, and how much does it cost to keep them in your life? Most importantly, what do these things cost you in a year?

This is the magic number your own magic number, unique to you. Then just a little bit of maths. You multiply that yearly number by 25.

If you have a nest egg that size, invested into the right mix of shares and bonds, you should be able to live off it for decades.

You can take out four per cent of the nest egg each year, which gives you the yearly figure you added up before.

That 4 per cent of spending is the other magic number that makes everything work for you. Because your investments are still growing and working for you, you can pay for everything you need and want in a year, but you shouldnt run out of money for decades; if ever.

It sounds absurdly simple, doesnt it? Except the problem is, that 25x figure might look enormous. You might have quickly added up some numbers and decided that Im spinning a fairy tale that can never be achieved by normal people.

This is why we need to open up more options to make financial independence more achievable. When we focus back in on what needs to be paid for, and what really makes you happy, then we have wriggle room to make changes in a way that works for you.

Desperately hate your job, and want to be able to retire in just a few years? Youre probably ready to make more sacrifices, in order to make your magic number smaller and hit it sooner.

Earn quite a bit, or dont mind working towards a goal for longer? Then you can have a bigger end number in sight.

For those who want financial independence fast, the trick is deciding whats really important in your life and cutting everything else out. If your life doesnt cost much, then your 25x number wont be as big.

Dont forget, if the goal is to quit your job, that might also save you a bunch of money. You wont need work clothes, to pay for a commute, to buy lunch near the office.

READ: Co-Founder Of Sharesies Brooke Roberts On How To Grow Your Wealth

If you pull everything back to bare-bones basics, how much do you need then? Would living in a tiny house be worth it, to never have a boss again?

If you like the finer things in life, and dont mind waiting a bit longer, then you can keep the 25x number a little higher, knowing that youre working towards a goal thats a few decades away, but that will give you security when you eventually get there.

Or theres my personal favourite solution; working towards a 25x number that covers only the very basics in life, but planning to still earn money once you get there.

You could have the basics of food and shelter sorted, thanks to your investment nest egg, then work part-time, or in a job that doesnt pay much but is more satisfying, or start a business that may or may not work out.

It gives you the freedom to push for that work-life balance that everyone is always going on about. To find more satisfying and fulfilling ways to make money, or live a good life while working substantially less.

You have options because the basics of survival are taken care of, thanks to a financial independence plan thats tailored to you.Finding the magic number that fits your own life, goals and values is the key.

Frances Cooks new book Your Money, Your Future: The Realest Guide to Financial Freedom, published by Penguin, $35, is available now

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The Magic Number: How Much Money Do You Need To Design The Life You Want? - Viva - Viva NZ