Category Archives: Financial Independence

You'veall probably heard of influencerson social media. But do you know much aboutfinfluencers?

After taking off in the US, they've been gainingpopularity in Australia in recent years.

Basically, they're people who use social media as a platform to share advice on anything from budgeting to buying a house, to investing.

At best, many argue they're empowering Gen Z, millennials and first-time investors to become financially savvy. After all, financial advisers can cost many thousands of dollars, and we don't all have that kind of money to spend.

At worst,they're sometimes accused of spruiking particular products for their own financial gain. And that means that when you're scrolling through Instagram or Tik Tok, you're getting financial tips that aren't necessarily in your best interests.

So why are we even talking about this?

Well, the laws around providing unlicensed financial advice are murky and recently there have been calls for more regulation and oversight.

We dived into the topic to find out what you need to consider when you're swiping through their content.

The rise of the finfluencer has coincided with a spike in new millennial and Gen Z investors piling into the share market.

Instagram

It's estimated about 435,000 new investors bought stocks for the first time last year. Eighteen per cent were younger than 25, while 49 per cent were between 25 and 39, according to research house Investment Trends.

On Tik Tok, the hashtag #FinTokused by finfluencers like Queenie Tan has attracted more than 400 million views, while #stocktock has 1.4 billion, #crypto 4.38 billion, and #cryptocurrency 1.68 billion views.

While Ms Tan doesn't have a finance degree and isn't a licensed financial adviser, she's doing well enough that she's been able to quit her marketing job to focus on creating her online investment content.

"I started my YouTube channel last year during COVID because I saw there were a lot of people struggling financially during that time," she explains.

"I don't come from a rich family, and I felt like I needed to share information and things that I've learned over the past couple of years."

The 23-year-old makes up to $5,000 a month from the advertising on her YouTube videos, which she films in her lounge room, as well as from partnerships with banks and investment platforms.

When Australians are asked whom they trust,their answer is near unanimous: definitelynotsocial media influencers.

She has 17,900followers on YouTube, 20,300on Instagram and has pulled more than 400,000views from TikTok (where she has about 62,000followers).

Like many finfluencers, Ms Tan is careful to add a disclaimer to her social media posts.

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"I am not a financial adviser and this is not financial or investing advice," she says in one video.

She also regularly refers to federal government websites like MoneySmart.gov.au and the ATO.

Ms Tan says her videos fill a gap in the market.

"It's important for young people to feel inspired and to have money not be a taboo topic. And that's why I wanted to create content for free to help people that maybe don't have thousands of dollars to see a financial adviser," she says.

Angel Zhong, senior lecturer in finance at RMIT, says while most Australian finfluencers do act responsibly, there is a dark side to the phenomenon.

ABC News: John Gunn

She says "pump and dump"scams, in particular, are rife online and are mostly promoted by American social media users.

It's when someone artificially inflates the share price of a stock (or cryptocurrency) by really talking it up in order to increase trading (like what happened with Dogecoin). Once the price increases,scammers sell the shares at aninflated price.

"I've seen people encouraging their followers to borrow on a specific lending platform to invest in a particular cryptocurrency or they've been encouraging some of the followers to quit their job and become a full-time day trader, which is a highly risky behaviour," she says.

It's an issue that's also caught the attention of the regulator, ASIC.

Well, they're proving to be the most popular way for young people to start out trading. Just ask Jasmine, who's using doing it to build up her first home deposit.

It's recently urged young investors to report pump and dump scams as well as users who provide financial advice without a licence.

ASIC says it's seen evidence of complaints about social media users in Australia, but it did not provide further details.

According to Dr Zhong, guidance about online discussions on investment really needs to be updated, as the latest advice was introduced in 2007.

And she says it's really tricky to regulate when, for example, stories on Instagram can disappear after 24 hours.

She says at the end of the day, ASIC risks being left behind.

Finfluencers themselves are concerned about straying into the territory of illegally providing financial advice.

Aleks Nikolic, who goes by the name Broke Girl Wealth on Tik Tok and Instagram, also works as a corporate lawyer.

Instagram

"I recognise that this is a really complex area of law, and I think it is deliberately that way so ASIC can prosecute nefarious actors, but I think that it would be really great to see more clarity from the regulator," she says.

Ms Tan agrees and says most finfluencers will comply with the guidance.

While there may be some people who are trying to deceive followers, people like Aleks and I are referring people to factual information," she says.

However, Ms Nikolic is concerned a crackdown by the regulator could scare some people off sharing their personal finance journey.

"It is such a valuable thing, when we know that money for women is actually a really critical factor to financial independence," she says.

Finance Minister Jane Hume has not backed calls for further regulation and says banning finfluencers is not the solution.

"We know that ASIC is looking at this space right now and reassessing the role of finfluencers. But there is an element of buyer beware," she explains.

"It's important that [when] taking any information from social media that you check the credibility of the source. And of course with financial advice, that means is this person licensed to give me this information?"

Senator Hume says people offering advice about personal investments at the pub, or a taxi driver giving stock tips, is nothing new.

"We've seen that forever and a day And that's very different from recommending a financial product, or selling a financial product and giving financial advice, which is a clear breach of the law," she adds.

It's a sentiment the financial planning industry, which came under fire during the banking Royal Comission,rejects.

"If you're on social media, you can get out to hundreds, potentially thousands and potentially millions of followers who are going to take on board that advice. We're looking at a completely different situation," says Judith Fox, the CEO of the Stockbrokers and Financial Advisers Association.

Ms Fox says the industry can be trusted and points out that as well as completing a degree, sitting an exam and annual training, the clients of financial advisers are protected by law.

"You [financial advisers] can also have complaints lodged against you. And that means that you are accountable to make sure that you're always fulfilling the clients' best interest. If you're not licensed, none of that applies, which means there's no regulation, no accountability."

But Ms Nikolic saysthe fear from financial advisers was a bit hypocritical.

"We have seen that regulation in and of itself does notalways provide good outcomes," she says.

"What we need is considerate financial consumers, who can do their own research. If we lift people into seeking financial independence, everyone wins."

Dante De Gori, CEO of the Financial Planning Association, agrees with Ms Fox, but he can also see the positives of finfluencers. He says most are not breaking the law.

"There is an element of good for people being engaged in their finances, if it encourages people to do further research on the internet, and possibly even eventually with a trained professional," he says.

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Finfluencers are on the rise, so are they friend or foe? It can be murky territory - ABC News

The vast majority of Americans do not meet commonly held definitions of what it means to be rich in the

The vast majority of Americans do not meet commonly held definitions of what it means to be rich in the U.S.

Respondents to Schwabs 2021 Modern Wealth Survey said a net worth of $1.9 million qualifies a person as wealthy. The average net worth of U.S. households, however, is less than half of that.

But wealth is in the eye of the beholder a persons location, career, community, background and so many other factors can influence his or her perception of wealth. Those perceptions may be evolving as new generations enter adulthood and redefine success.

The generations of today, Gen Y and Gen Z, they dont think about wealth and success the way boomers did, especially as it relates to finances, says Penny Phillips, president and co-founder of Journey Strategic Wealth in New Jersey and California. It was, save my money, make some investments and when Im 65, Ill try to take my first big vacation. Today, success is defined so much more by life experiences and impact and living for today.

[READ: Top Money Lessons From the Pandemic.]

Indeed, the annual Schwab survey found that respondents are lowering the bar for what they consider wealthy. Compared to 2021 standards, respondents to the 2020 survey described the threshold for wealth as being a net worth of $2.6 million.

The recent coronavirus pandemic may also have affected how consumers perceive wealth and shed new light on individual priorities amid the years financial uncertainty and stress.

With whats happened in the world in the pandemic, its reframed priorities and brought about different emotions and behaviors, says Amy Richardson, a certified financial planner at Schwab, on the companys Intelligent Portfolios Premium team. There might have been a shift in how people perceive what makes them happy and how much it takes to achieve financial independence.

Net Worth vs. Income

Net worth is the sum of an individuals assets, less liabilities. But individuals with high incomes dont necessarily have a net worth to match, and the reverse is true as well.

A lot of people who are wealthy in this country are wealthy not because of income, but because they own assets, they have investments that appreciated, real estate or otherwise, Phillips says, while income funds an individuals lifestyle and day-to-day costs.

An individuals income can also be a measure of wealth.

[Read: How to Calculate Your Net Worth.]

To be in the top tax bracket of 37%, an individual filer must earn at least $523,601 annually, and married taxpayers filing jointly must collectively earn $628,301.

Among the top 5% of earners, the average income was $309,348 in 2018, according to the Economic Policy Institute, a nonprofit think tank; among the top 1%, the average income was $737,697. Meanwhile, the average income in the U.S. in 2018 was $55,412.

Standards of Wealth

For some, no amount of amassed wealth will be enough, and many who do qualify as wealthy by these standards may not see themselves in that light. Others struggling with debt or unemployment may see these standards of wealth and feel a sense of defeat.

Understanding how you compare to your peers can be an opportunity to learn about money management and positive financial habits, experts say. They advise taking cues from co-workers and competitors on issues of salary, for example, and setting net worth goals that consider the possibilities seen in peers as well as your unique circumstances.

[See: Money Moves You Will Be Thankful For.]

But Eric Pierre, CEO, owner and principal of Pierre Accounting in Texas, says when it comes to money, this saying holds true: Comparison is the thief of joy.

Different people make money in different ways, they have different skills and wealth can go up and down for different reasons, he says. You should set a net worth of what you want it to be, whether its billions or thousands. Set a goal that will make you happy. Stop worrying about what your neighbors doing.

More from U.S. News

Why It Pays to Know Your Net Worth

10 Better Money Habits to Start Now

12 Ways Youre Sabotaging Your Chances of Being Wealthy

Are You Rich? How the Wealthy Are Defined originally appeared on usnews.com

Update 07/13/21: This story was published at an earlier date and has been updated with new information.

Link:

Are You Rich? How the Wealthy Are Defined - WTOP

ARLINGTON, Va.--(BUSINESS WIRE)--E*TRADE Financial Holdings, LLC today announced results from the most recent wave of StreetWise, the E*TRADE quarterly tracking study of experienced investors. Results suggest investor views on the market remain positive, while concerns shift:

Despite investor optimism continuing to grow, its apparent that investors have come to terms with the fact that market volatility could be on the horizon, said Mike Loewengart, Managing Director of Investment Strategy at E*TRADE Financial. And though the market has been knocking around record highs for quite some time, investors are wise to avoid complacency. While it remains to be seen if inflation is transitory, the Fed has changed its tune on the timeline for rate hikes, so now is a good time to assess your holdings and consider diversifying into areas of the market that can stand up to a rising rate environment.

The survey explored investor views on sector opportunities for the third quarter of 2021:

E*TRADE aims to enhance the financial independence of traders and investors through a powerful digital offering and professional guidance. To learn more about E*TRADEs trading and investing platforms and tools, visit etrade.com.

For useful trading and investing insights from E*TRADE, follow the company on Twitter, @ETRADE.

About the SurveyThis wave of the survey was conducted from July 1 to July 9 of 2021 among an online US sample of 898 self-directed active investors who manage at least $10,000 in an online brokerage account. The survey has a margin of error of 3.20 percent at the 95 percent confidence level. It was fielded and administered by Dynata. The panel is broken into thirds of active (trade more than once a week), swing (trade less than once a week but more than once a month), and passive (trade less than once a month). The panel is 60% male and 40% female, with an even distribution across online brokerages, geographic regions, and age bands.

About E*TRADE Financial Holdings, LLC and Important NoticesE*TRADE Financial Holdings, LLC and its subsidiaries provide financial services including brokerage and banking products and services to retail customers. Securities products and services are offered by E*TRADE Securities LLC (Member SIPC). Commodity futures and options on futures products and services are offered by E*TRADE Futures LLC (Member NFA). Managed Account Solutions are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. Bank products and services are offered by E*TRADE Bank, and RIA custody solutions are offered by E*TRADE Savings Bank, both of which are national federal savings banks (Members FDIC). More information is available at http://www.etrade.com.

The information provided herein is for general informational purposes only and should not be considered investment advice. Past performance does not guarantee future results.

E*TRADE Financial, E*TRADE, and the E*TRADE logo are registered trademarks of E*TRADE Financial Holdings, LLC. ETFC-G

2021 E*TRADE Financial Holdings, LLC, a business of Morgan Stanley. All rights reserved.

E*TRADE Financial engages Dynata to program, field, and tabulate the study. Dynata provides digital research data and has locations in the Americas, Europe, the Middle East and Asia-Pacific. For more information, please go to http://www.dynata.com.

Referenced Data

When it comes to the current market, are you?

Q318

Q418

Q119

Q219

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Q121

Q221

Q321

Bullish

56%

61%

46%

58%

61%

50%

61%

38%

51%

52%

57%

61%

65%

Bearish

44%

39%

54%

42%

39%

50%

39%

62%

49%

48%

43%

39%

35%

If you had to pick a movie title that best describes how you personally feel about the market this quarter, which would it be?

Q220

Q320

Q420

Q121

Q221

Q321

Easy Rider

7%

13%

15%

18%

23%

24%

Singin in the Rain

6%

12%

12%

18%

18%

20%

Dazed and Confused

31%

33%

33%

21%

21%

17%

Raging Bull

7%

11%

11%

19%

15%

16%

Pulp Fiction

7%

10%

11%

10%

9%

9%

Jackass

7%

8%

9%

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E*TRADE Study Reveals Bullish Sentiment Hits 3-Year High - Business Wire

When you're in your 20s, you're probably trying to figure out a lot of things what kind of work you should pursue, what your purpose in life is, and where you want to live. If you're lucky, you land your first "real job," move out of your parents' place, and start paying rent. Saving money? What's that?

So it's rare when someone is able to start seriously building their net worth before age 30. But that's what Gwen Merz was able to do after graduating college. By 30, her net worth was $300,000.

When Merz was a college senior, she decided to pursue FIRE (financial independence/retire early), after stumbling across a post from blogger Mr. Money Mustache. Mr. Money Mustache and his then-wife retired at the age of 30 with a net worth of $600,000. He pulled this off by living on a small percentage of his income as a software engineer, and diligently and consistently putting the rest in investments.

Merz was particularly inspired by the chart in Mr. Money Mustache's Shockingly Simple Math Behind Early Retirement post. "Seeing how many years left changed by the percentage of income saved was huge," says Merz. "I mostly hovered around a 65% savings rate, which helped me calculate my time left [to reach FIRE] in 10 years, at the age of 35."

When Merz landed a full-time job after college, she immediately started putting those lessons to good use. "It turns out the shift from college to working wasn't the greatest and I was willing to do pretty much anything that would allow me to return to the freewheeling lifestyle I had in college," says Merz.

Here's what Merz did to have a net worth of $300,000 by 30.

Merz was fortunate to earn a full-ride scholarship to a local state school, and avoided student loans entirely. Further, she didn't have any family to support, nor any dependents who relied on her financially.

In fact, she was able to graduate with a positive net worth from scholarships and money she earned serving in the Air National Guard. For instance, Merz used money from her sign-on bonus to buy her car outright. Upon graduating, Merz also had a paid college internship that turned into a full-time offer in IT that paid extremely well. Managing her money well and not overspending ensured that she kept plenty of that cash in the bank.

On top of coming from a place of privilege, Merz deliberately kept her expenses very low. She earned anywhere from $65,000 to $85,000 a year, and managed to save roughly $2,500 a month.

For instance, she'd challenge herself to spend $200 a month on groceries. In a given month, she'd spend $100 for fresh local meat from a CSA (community-supported agriculture) and $100 on produce and other food items. "Every dollar that came in was able to be either put away for the future or spent on necessities," says Merz, who is 30, lives in St. Louis, Missouri, and is an IT professional.

Merz also drove an older car for nearly a decade until the wheels fell off. As for socializing, she spent as much time as possible socializing with friends at home, which saved money on eating out.

Along with earning a higher salary working in tech, Merz typically lived in parts of the country that had a lower cost of living. Though she lived for some time in Washington, DC (not the cheapest), she also lived in small Midwestern cities, including Des Moines, Iowa, and Minneapolis, before ending up in St. Louis. Merz also saved by living with roommates a handful of times, and her rent was as low as $400 a month.

Most of the $2,500 Merz saved each month went into tax-advantaged accounts, such as her 401(k), Roth IRA, and health savings account. In fact, she had very little in after-tax investments and cash savings. To take advantage of the tax perks of these accounts, Merz saved the maximum contributions allowed.

Merz tried side hustles such as blogging and podcasting. While the side hustles didn't rake in much cash, they did help her expand her network and make friends with folks around the country. In turn, she was able to save money by staying at friends' homes when she traveled instead of doling out cash for pricey hotels and restaurant meals.

As an example, when a podcast listener heard she was moving to Washington, DC, the listener offered the use of their basement rent-free until Merz was able to afford and find a place of her own.

Looking back, Merz realized that what she did to save aggressively was extreme. While she's no longer pursuing FIRE by 35, she has a goal of reaching financial independence at 55.

"I did take saving money too far sometimes and missed out on some fun activities with friends just because it cost money," says Merz. "Now that I have all of the money saved up so far, I have relaxed my militant rules and allow myself to do more things, like drive a car that's only six years old instead of 16!"

That being said, Merz suggests that those who want to save more money start by being aware of their money situation. "Even being aware of the state of your finances is a huge victory and will only lead to better situations down the road," she says. "We all have to start from somewhere, and I hope that people are inspired by my story, because I read stories like mine a decade ago and was hugely inspired."

While Merz's story of how she ambitiously saved so much before she hit the big 3-0 might move you to do the same, she wants to tell others not to get discouraged by stories online. "We all move at our own pace and have our own unique set of circumstances," says Merz. "I was able to save a lot of money because I started out in a very privileged position."

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5 Things a Millennial Did to Save $300,000 Before Her 30th Birthday - Business Insider

In April, Till launched its new challenger bank for families with kids ages 8 to 18. The company wants to become the financial training wheels for kids.

Till offers an FDIC insured bank account through its partnership with Coastal Community Bank. Parents sign up, link their account, and fund it. After that, agency is handed over to the kid.

We truly believe that to create a successfully financially literate young person, you need to give them more opportunities to spend, said Taylor Burton, co-founder of Till Financial.

More parents are putting emphasis on teaching their kids how to better manage their finances. 83% of parents today say they have open discussions with their children about their finances, according to research by Bank of America into affluent parents and future parents as part of its Hindsight is 20/20 Personal Finance Report. Conversely, only 51% said they had conversations like these with their own parents.

Parents also want to pass on financial lessons to their own kids. 92% of the respondents said they want to teach their kids about managing credit cards and credit card debt, while 90% of respondents said they want to teach their kids to save and invest for retirement.

Were seeing a similar attitude from kids as well. 97% of teens are expressing that they want a higher level of financial literacy, according to a study by teen challenger bank Step.

The growing interest in financial independence for children seems pretty solid at this point. And with that, companies from different sectors are stepping into the space.

In October, Chase released Chase First Banking in collaboration with challenger bank Greenlight. Through the account, parents can monitor their kids spending, manage allowances, and assign chores. In less than six months, Step, meanwhile, surpassed 1.5 million users.

Most recently, Verizon announced last week its creating a challenger bank for families. Meanwhile, a couple of days ago Stash acquired PayGrade, a financial literacy platform for students in kindergarten through high school.

Through Tills platform, kids can have both a digital and physical card, though the platform is primarily designed to fit digital-first needs. Most kids under 16 dont have a physical wallet but do have a smartphone.

Parents can still go into the account and set up saving goals and contracts with their kids to show how the money should move. But the goal is to put the actual action of spending into the kids hands.

All three of the co-founders of Till have kids. Burton himself is a father of two toddlers, CTO Brian Chemel has three kids between the ages 8 to 16, and CEO Princince has kids who are already out of college.

The three managed to pool their experiences as parents, and in that way, pinpoint what the financial needs of each stage may be.

I think that having that perspective across the gamut has been really helpful as we designed this collaborative family banking tool, said Burton.

One thing that Till is very clear about is not being a forever bank. When customers hit an age of maturity usually between 18 to 21 the company hands them over to its launch offers market, where they can get special deals for other financial solutions that may be relevant at that point. A couple of examples Burton gives are SoFi for a first college loan and Petal Card for a first credit card experience.

When you try to service every customer, you end up failing all customers, said Burton. So were really focused on that time when the young person is at home.

Till still has some obstacles to overcome, though. For one, when youre banking kids, youre also banking their legal guardian. One thing thats clear today is that the nuclear family is only one type of family. Banking for families can take a lot of different forms. According to Burton, guardians can be anything from single parents, to grandparents, to foster parents.

Not every family is a mom and a dad with 1.98 kids, said Burton. The look and feel of the American family is changing rapidly.

Till has to constantly pay attention to different types of families that come to the company, and adjust the platform to suit any unique needs they may have.

For now, that means giving users the ability to adjust the features as much as possible. One of the more common examples Burton gives is allowing for extended family to enter the account.

So instead of Grandma getting you the sweater that you wear, you can say, Im saving for XYZ computer, and then she can actually go into our platform and contribute, said Burton.

Another challenge is matching the platform to the customers in terms of guardian control.

According to Burton, the company found that rather than guardians wanting as much control as possible of their childrens finances, the ideal level of control tends to differ from person to person. That means Till has to find a way to adjust its platform to meet this demand.

[Adjusting the level of control] becomes a complex settings feature, said Burton. You have to make the platform as malleable as the various families that are using it.

In terms of future plans, for now Till is still a young company made up of only 10 people. So Burton says its mostly focused on staying open to suggestions. And so far, theres been a lot of them.

One example he mentions is entrepreneurship, which is becoming an increasingly popular goal among kids.

Theres this new wave of young people who grew up watching Shark Tank at home, and have grown up seeing the entrepreneur put on a pedestal, and theyre not going to wait until college to jump into it, said Burton. One thing youre going to see us really beef up is feature support to help budding entrepreneurs run and manage their own businesses.

But there are always more ideas from customers coming in. So far, the challenger bank has had tens of thousands of kids write to them.

Were just making sure were listening right now, said Burton. Were forming a panel of these kids so that when we build things, theyre going to be things they actually want to use.

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'The platform has to be as malleable as the families that use it': How Till banks families of all kinds Tearsheet - Tearsheet

What GAO Found

Based on the limited procedures GAO performed in reviewing the independent public accountant's (IPA) audit of the Congressional Award Foundation's fiscal year 2020 financial statements, GAO did not identify any significant issues that it believes require attention. Had GAO performed additional procedures, other matters might have come to its attention that it would have reported. The IPA provided an unmodified audit opinion on the Foundation's fiscal year 2020 financial statements. Specifically, the IPA found that the Foundation's financial statements were presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles. Further, for fiscal year 2020, the IPA did not identify any (1) deficiencies that it considered to be material weaknesses in the Foundation's internal control over financial reporting or (2) instances of reportable noncompliance or other matters as a result of its tests of the Foundation's compliance with certain provisions of laws, regulations, contracts, and grant agreements. The Foundation concurred with the IPA's conclusions.

GAO's review of the Foundation's fiscal year 2020 financial statement audit, as differentiated from an audit of the financial statements, was not intended to enable GAO to express, and it does not express, an opinion on the Foundation's financial statements or conclude on the effectiveness of its internal control over financial reporting. Furthermore, GAO does not express an opinion on the Foundation's compliance with provisions of applicable laws, regulations, contracts, and grant agreements. The IPA is responsible for its reports on the Foundation dated April 6, 2021, and the conclusions expressed therein.

GAO provided a draft of this report to the Foundation and the IPA for review and comment. The Foundation's National Director and the IPA's Audit Principal each replied in emails that they had no comments on the draft report.

This report presents the results of GAO's review of the Foundation's fiscal year 2020 financial statement audit. The Congressional Award Act established the Congressional Award Board to carry out a program to promote excellence among the nation's youth in the areas of public service, personal development, physical fitness, and expedition or exploration. The Board created the Foundation as a nonprofit corporation to assist in carrying out this program. The Congressional Award Act, as amended by the Government Reports Elimination Act of 2014, requires the Foundation to obtain an annual financial statement audit from an IPA. The act also requires GAO to review the audit and report the results to the Congress annually. GAO's objective was to review the audit of the Foundation's fiscal year 2020 financial statements. To satisfy this objective, GAO (1) read and considered various documents with respect to the IPA's independence, objectivity, and qualifications; (2) analyzed key IPA audit documentation; (3) read the Foundation's fiscal year 2020 financial statements, the IPA's audit report on the Foundation's financial statements, and the IPA's report on internal control over financial reporting and on compliance or other matters based on its audit; and (4) met with IPA representatives and Foundation management officials.

For more information, contact Beryl H. Davis at (202) 512-2623 or davisbh@gao.gov.

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Congressional Award Foundation: Review of the FY 2020 Financial Statement Audit - Government Accountability Office

Giving Pledge signer and philanthropist, Francine A. LeFrak

Since signing theGiving Pledgein 2019, Francine LeFrak has had one clear philanthropic goal; giving women the tools they need to transform their lives with dignity.

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To bring this goal to life, LeFrak has invested in countless organizations that champion gender equity by way of the Francine A. LeFrak Foundation. In October 2020, the creation of theFrancine A. LeFrak Foundation Center for Well-Being,her most recent endeavor, was announced. The center is built on the top pillars of wellness: mental health, physical wellness, and financial fluency; the last having been born as a result of what LeFrak believes to be core to womens wellbeing and thriving in todays world: women having deep confidence in their financial skillset.For so many women, we were told growing up that you dont need to know when it came to money and investing. We also heard you arent good at math and science, but thats okay our entire lives. We were never encouraged to be comfortable with finance. On so many levels, women need to feel confident and comfortable with managing money. I see financial fluency and wellness going hand in hand.

Opening the Center for Well-Being at Barnard College was one step in the right direction for LeFrak and her team at the Francine A. LeFrak Foundation. While the mission was designed around the key pillars of wellness, the emphasis on financial fluency, not necessarily literacy,is what distinguishes the centers goals from traditional definitions of well-being. AsLeFrak shares,Real wellness without financial peace of mind is not possible. You need to know how to handle your finances. It can be a point of hope, instead of stress, for women. I was so excited when I met with Barnards President, Sian Leah Beilock,about this idea and she said yes, we want this unique approach to well-being! At that moment I knew, there was no way I could do this unless Barnard made the financial piece front and center. I wanted to see them really take the lead on it. Because, truly, it is the top taboo that women deal with as they try to live, lead, and be well. I know from my own experience that linking those three things is key; mental, physical, and financial wellness.

LeFraks passion comes from a place of personal struggles as a woman who learned at an early age that she would not be welcomed into her family business. Left alone to navigate it on her own, she was given few tools to understand how to handle the responsibilities that were bestowed upon her. Thrown into the deep end, LeFrak had to learn how to swim quickly. This experience was a pivotal moment in her life.

Historically, women have not had significant wealth - and now we do - so how do we feel about it? We cant be ashamed and shut off simply resorting to power-holding. Its okay to want to be successful beyond just the gender pay gap or in addition to it. What truly needs to change is our mindset and the understanding of what financial fluency for women means.

Today, LeFrak believes strongly that women should support other women and their causes. While women control 60% of philanthropic dollars, only 1.6% of those dollars is directed towards womens issues. LeFrak wants to be a role model to other women and other philanthropists and to inspire change with these statistics. Further, LeFrak also points out that womens colleges have nowhere near the endowment mens institutions have.When you walk through a college campus, how many womens names are on buildings vs mens?LeFrak believes that this isnt because women have less money to give, but because women defer to their partners' philanthropic priorities. This is a trend that must stop. I feel so strongly about paving the way and ringing the bell to show other women that this is where their hearts need to be. It is the best.

In addition to joining the recent Women Moving Millions Campaign: Give Bold, Get Equal and being a Giving Pledge signer,LeFrak's philanthropic efforts are extensive, spanning from helping survivors of the Rwandan genocide become financially independent to helping incarcerated women in Jersey City reenter the workforce. As a leader and former Chair of the Harvard Kennedy Schools Womens Leadership Board, it has become her lifes mission to help women gain financial independence through allof her philanthropic endeavors. LeFraks philanthropy stands out because of her unique approach to providing a hand up instead of a hand out.

Many women dont have financial confidence because they were never given the tools and necessary skills. And when women are financially illiterate, they are less equipped to leave unhappy, abusive marriages or any other toxic situations in their personal or professional lives. Add to that, the stress caused by financial fears. One study found that65% of womenfeel financial matters cause them the most stress. There is little denying the fact that stress can cause anxiety, physical pain, and muchmore. To fight back, we must empower women with the financial knowledge to thrive.

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The Francine A. LeFrak Center is expected to be operating fully by September 2023. This center, with its 360-degree perspective of personal well-being, has never been more necessary than in this time of heightened angst and anxiety for many.For LeFrak, it is a significant moment for the entire country.

"I am delighted to be on the forefront of thisinnovative and more complete definition of wellness, especially as women recover from the impact of the pandemic.This Center will be a point of hope for women. With the Francine A. LeFrak Center on its campus, I believe that Barnard is destined to be a leader in holistic wellness and a model for other institutions to follow."

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Welcome To The Francine A. LeFrak Foundation Center For Well-Being: Equipping Women With The Skills They Need To Thrive - Forbes

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The Navi Mumbai Municipal Corporation (NMMC) in Maharashtra announced on Saturday that it will provide financial assistance to the local children, who were orphaned due to the coronavirus pandemic.

The Navi Mumbai Municipal Corporation (NMMC) in Maharashtra announced on Saturday that it will provide financial assistance to the local children, who were orphaned due to the coronavirus pandemic.

Besides this, monetary assistance will also be provided to those women, who lost their husband due to the health crisis.

The assistance to orphans will be in the range of Rs 1,000 to Rs 6,000 based on the age of the child. Women who have lost their husband due to COVID-19 will get Rs 1.5 lakh and they will be provided equipment worth Rs 1 lakh for self-employment, the NMMC said in a statement.

Talking to reporters, Municipal Commissioner Abhijit Bangar said, "The future of many children may become bleak if they don't get support immediately after they lose their parents. However, it is also true that it is impossible to compensate for the loss the children suffer due to the death of their parents and women who lose their husband."

"It is a social commitment of the corporation to provide welfare schemes to such children and women for their education, employment and financial independence so that they live with dignity" he added.

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Navi Mumbai civic body to give financial aid to kids orphaned by COVID-19 - India TV News

If you have a personal finance goal to retire early, you may be wondering how your mortgage might affect this. Learn more about paying off your mortgage before retirement. (iStock)

One in three Americans has made retiring early a financial goal, according to a report from the financial research firm Hearts & Wallets. Early retirement generally refers to becoming financially independent before becoming eligible for Social Security. The FIRE movement, which stands for "financial independence, retire early," is based on the goal that you can save and invest aggressively to speed up the time it takes you to retire.

While investing in retirements can certainly help you with financial planning, getting rid of debts like your mortgage before you retire can also free up a ton of money. Plus, you wont have to think about making a sizable mortgage payment each month during your retired years. Luckily, you dont have to choose between retiring early and paying off your mortgage.

Early retirement planning is made even easier if you can pay off your home loan at a lower interest rate. Use an online mortgage marketplace like Credible to compare mortgage rates and save for retirement.

HOW TO KNOW IF YOURE PREPARED FOR EARLY RETIREMENT

See how a mortgage fits into your budget

Its common for someone pursuing early retirement to put 50% or more of their income into saving accounts and retirement accounts. Early on, youll need to ask yourself if its possible to manage a mortgage while aggressively saving for your retirement fund. Trying to tackle both goals at once may require you to buy a smaller home or move to a more affordable area of the country with modest real estate costs.

Either way, youll want to use an online mortgage calculator, like this one from Credible, to help you determine how much your monthly payments will cost. Once you calculate your potential mortgage payment, assess whether theres room in your budget for additional savings and extra mortgage payments. You may need to adjust your budget and make some cuts to ensure you can live comfortably while paying off the mortgage and pursuing your goal of reaching FIRE.

RETIRING WITH STUDENT LOANS? WHAT TO DO FIRST

Eliminate all other debt before you take out a mortgage

Mortgage debt tends to have a much lower interest rate than other types of debt. This is why it will make more sense financially to tackle all your other consumer debt and save your mortgage for last.

With credit card interest rates on new accounts hovering around 20%, set a plan to pay off all your credit card balances and keep them paid off. Then, you can move on to personal loans, your auto loan, and student loan debt. When your mortgage is your only remaining debt left, youll just have two main financial goals:

Paying off all your other debt can free up hundreds to thousands of dollars that can go toward savings each month. Plus, youll lower your credit utilization ratio, which is your account balance vs. the total credit limit youve been given. This can increase your credit score exponentially.

HOW TO MANAGE DEBT AHEAD OF RETIREMENT

Get the lowest mortgage rate possible

If youre looking to buy a home now, whats great is that mortgage rates are still low. Securing a lower mortgage rate can save you tens of thousands of dollars over the life of your loan. Using an online loan marketplace like Credible helps you compare mortgage rates and loan offers from lenders in the most efficient way possible.

If you already have a mortgage but are looking to lower your interest rate to save money, Credible can help you compare the top mortgage lenders to help you refinance your mortgage. Shopping around lets you know that youre getting the lowest mortgage interest rate for your financial situation.

SHOULD YOU REFINANCE YOUR MORTGAGE IF YOU'RE PLANNING TO RETIRE EARLY?

Pay off your mortgage fast

Of course, youll want to pay off your mortgage faster as youre saving and investing aggressively. If you have a 30-year mortgage, consider making additional principal payments each month or making bi-weekly payments. If you get paid every two weeks, youll automatically make an extra mortgage payment each year by switching to bi-weekly payments.

You can also refinance to a 15-year term mortgage so more of your payment will go toward paying down the mortgage principal. Accelerate your mortgage payments by putting in extra money from work bonuses, tax refunds, or other cash windfalls to pay off your home loan.

HOW TO SAVE FOR RETIREMENT IN 2021

Retiring early with a mortgage is possible

Its common for someone pursuing FIRE to save 50% of their income, pay off debts, and maximize investments to reach financial independence in their 30s, 40s, or 50s. That said, it is possible to retire early and pay off your mortgage. Doing so will free up more money in your budget and eliminate the stress of having to make a large monthly housing payment that eats into your retirement income.

Informed financial planning is the key to retiring early. Save money where you can by securing a lower mortgage interest rate and paying off other high-interest debts.

Youll need a place to live whether youre retired or not. So consider using Credible to shop around for the best mortgage rates and offers so you can find the best mortgage option for you.

Have a finance-related question, but don't know who to ask?Email The Credible Money Expert atmoneyexpert@credible.comand your question might be answeredby Crediblein our Money Expert column.

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The FIRE movement: How to retire early with no mortgage debt - Fox Business

Call me a tightwad, but I like really good things that are free. If you do too, youre in the right place.

Today Im going to recommend three financial books you can get free. Each one is worth a lot if you take it seriously and act on it.

Ill point you to video lectures for young people (my 11-year-old grandson loves some of these), parents and teachers.

Adults interested in retiring early can tap into resources that a lot of smart people find very helpful.

One way or another, youve already paid for a U.S. government site filled with good information and tips that investment scammers dont really want you to learn.

Finally, for some college-level insight into finance and investing, you can take a free seven-week course from a Yale professor.

Free books

Lets start with If You Can: How Millennials Can Get Rich Slowly by William Bernstein. Bill is one of the smartest people I know of: a retired neurologist and investment adviser whose The Four Pillars of Investing: Lessons for Building a Winning Portfolio has been one of the most frequently recommended investment books for the past 20 years.

If You Can is Bernsteins recommendation for an investment plan that a 7-year-old can understand, using just three mutual funds. Bernstein says its likely to outperform 90% of financial professionals in the long run.

Bernstein identifies five major hurdles facing young investors and tells how to overcome them. For serious students, he includes a good reading list.

The price: Free.

Financial Fysics is another free book, this one available in the Apple Bookstore and written by my friend Don McDonald. These pages are filled with common sense.

One of my favorite parts is his frank discussion of how to make money. There are only three ways, he says: luck, hard work and crime.

Don wants us to unlearn a lesson on how the stock market works thats still taught in some schools: Choose a stock, then follow its price for a week or two to see how successful you were.

That may take some of the mystery out of the market, but it leaves students with at least four awful lessons:

Don says his book is for people who are ready to invest like grown-ups.

The price: Free.

Late last year, Richard Buck and I finished Were Talking Millions! 12 Simple Ways to Supercharge Your Retirement.

This book, available without charge to anyone who wants it, outlines a dozen million-dollar decisions that every first-time investor makes then prescribes a two-fund solution that makes most of those choices for you, correctly and automatically.

The book is aimed at investors in their 20s and 30s, but its two funds for life formula can beef up any portfolio.

Price: Free.

Get an education

A university education costs a lot these days, but its amazing what you can get online. At http://www.coursera.org, youll find more than 1,700 free courses from prestigious institutions such as Stanford, Duke, University of London, Vanderbilt, University of Chicago and many more.

The sites most popular investment course is Financial Markets, full of college-level material and taught by Yale economics professor Robert Shiller.

More than 900,000 people are enrolled in this (so dont expect a lot of personal attention). The course focuses on behavioral economics, the study of how psychology influences what we do, say, and think regarding money.

The course includes 127 videos, a few reading assignments and a few quizzes. Its organized into seven modules, each designed to be done in about a week.

Price: Free.

For younger folks, take my grandsons word about the video education provided by Scott Alan Turner. Hes wacky, hes funny, and kids will think he is really cool.

For example, heres a three-hour course thats designed for students in Grades 3 through 6 that covers topics like saving, spending, emergencies, jobs, and careers.

Turner also offers a class on planning for college.

Price: Free.

Lots of young investors are eager to achieve financial independence and saving and investing with the goal of retiring in their 40s and 50s.

The ChooseFi International Foundation offers an excellent online course called Financial Independence 101 and has local groups all over the world that meet regularly.

At http://www.fiology.com, you can sign up for a free 52-lesson course, Your Guide to Financial Independence, which includes an excellent workbook and guide.

Price: Free.

The United States government has put together an impressive collection of resources and tools at http://www.investor.gov.

Here you can check up on a financial adviser, get help in understanding fees and scams, determine your required minimum distribution in a flash, calculate how your savings will grow, learn about 529 college savings plans. And much more.

Price: Free (You already paid for this.)

I want to also call your attention to an online treasure chest for anybody whos teaching young people about money and investing.

The resources available at http://www.ngpf.org are available to the public at no charge.

The organization, founded and funded by Tim Ranzetta and JessicaEndlich, has one overriding goal: Establish at least one semester of personal finance instruction as a universal requirement for high school graduation and do it by 2030.

I interviewed Tim a while back, and you can listen to our conversation on YouTube or in this podcast.

Price: Free.

All these resources are free, but theres another cost: your time.

Your time is valuable. But even if you believe youre worth 10 times the minimum wage (Im not disputing that, by the way), the payoff for a good financial education can be tremendous.

As a special reward to readers whove made it this far, heres a freebie I can personally vouch for: a recording of a talk I gave to college students at Western Washington University in which I discuss the 12 million-dollar decisions in one of the free books I mentioned earlier.

Price: Free.

Richard Buck contributed to this article.

Paul Merriman and Richard Buck are the authors ofWere Talking Millions! 12 Simple Ways To Supercharge Your Retirement.

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How to get a $1 million financial education that costs next to nothing - MarketWatch