Monthly Archives: May 2021

When Jack Duffley was only 18, he started investing the few hundred dollars he was earning from a summer internship into a retirement account.

Now 24, Mr Duffley, who lives in Chicago, Illinois, says he began to learn about investing from a colleague in the companys financial planning department, who spoke to his cohort of interns about how much money they would need to comfortably retire.

Today, he owns two properties a condominium in Chicago and a home in Indianapolis and intends to buy another property to add to his portfolio this summer. He also has invested a significant amount in gold and commodity-based stocks.

He allocates about 5 per cent of his portfolio towards speculative bets with high-risk rewards, such as cryptocurrencies. Mr Duffley also keeps some cash in an easily accessible account and has the ability to draw more from debt.

My primary goal is to build passive income of $30,000 a year, Mr Duffley tells The National.

Creating that layer of financial flexibility for myself and my family is a top priority. Thus, a large portion of my future income will continue to go into cash-flowing real estate.

Numbering about 2.5 billion, people born between 1996 and 2016 called Gen Zers or zoomers will be the most disruptive generation ever in terms of spending power, Bank of America said in its Gen Z to the world: watch out, here we come report.

Their income is expected to rise five-fold from $7 trillion today to $33tn by 2030 as they enter the workplace, accounting for more than a quarter of global income, before surpassing the income of millennials by 2031, the bank said.

My primary goal is to build a $30,000 per year passive income

Jack Duffley, Gen Z

After graduating from law school in December, Mr Duffley has been working part-time as a law clerk writing blogs for law firms. He will start full-time as a property associate on June 1 after he is officially sworn in as an attorney.

My first focus is real estate investing, followed by stocks. Both are with an emphasis on the long term. The majority of my portfolio is made up of proven assets providing consistent cash flow, such as stocks from strong businesses and real estate, says Mr Duffley, whose wife is studying at university and earns a part-time income.

When she graduates in a year, the couple will be able to enjoy the power of dual incomes and pursue their financial goals together, he says.

Mr Duffley learnt more about investing primarily from books, podcasts and YouTube videos. He has also been running a YouTube channel over the past 18 months to document his investing journey and lessons learnt along the way.

In the first of our fortnightly series on financial management for different generations, we spoke to financial experts who listed their top tips on how Gen Z can manage their money wisely.

Zoomers need to understand their cash flow and work out a budget.

When they are young, most people focus on what they are going to spend [holidays, social and entertainment] and then save some of what is left over, if any, says James Spence, the Abu Dhabi-based vice president of financial adviser Globaleye.

That is a sure way not to achieve a sound financial future. So, flip it around, work out exactly what you need to be saving to get to your goals, then make sure you pay yourself first. Save what you need to save for your future, pay your bills and after that, spend the rest.

It is important for zoomers to create an emergency fund that covers at least three months of living expenses to help them overcome a worst-case financial scenario and prevent them from going into debt.

A medical crisis or car breaking down can easily leave you in a vulnerable position. If the fund is unspent, you may eventually save enough for a deposit or that year abroad you wanted to do [while keeping that three-month buffer], says Sophia Bhatti, partner at Hoxton Capital Management, a financial advisory in the UAE.

Despite interest rates being at record lows, Ms Bhatti says it is important to keep your emergency fund in a savings account for easy access.

Many people tend to put off savings to a later stage in life. However, they miss out on the effect of compound interest on their investment over time. Compound interest is the interest you earn on interest.

Putting away $1,000 when you are 18 and leaving it for 40 years could give you four months worth of income when you retire, says Mr Spence.

Although retirement may seem light years away for zoomers, the sooner they begin to save and invest, the more time their money has to grow, says Ms Bhatti.

Putting away $1,000 when you are 18 and leaving it for 40 years could give you four months worth of income when you retire

James Spence, vice president, Globaleye

Inflation is the biggest risk to a retirement fund, according to Aadil Kadri, vice-president of sales at insurance broker Continental Group. Investing early in a market-linked retirement product helps you accumulate inflation-adjusted returns, he says.

Zoomers should take advantage of their age and health to avail of high insurance cover at the lowest possible premium, says Mr Kadri.

Life insurance and critical illness insurance come to your rescue financially in case of unforeseen circumstances, he says.

Gen Z need to ask themselves some tough questions such as what if they fall sick or are involved in an accident and are unable to earn, says Mr Spence.

"If you prepare for the worst and have a plan, should it happen then you do not have to worry about the 'what ifs'," he says.

You can protect your future income and lifestyle through insurance. Many people postpone the protection planning until they are between 35 and 40 years old or even until their 50s. The earlier you get your insurance, the cheaper it will be.

Financial experts also recommend that they take out medical insurance to cover day-to-day medical needs and emergencies.

Medical costs are increasing and it is always a wise decision to have health insurance either by way of employee benefits or buying it personally, says Mr Kadri.

Zoomers must identify one to three large financial goals they plan to achieve each year and then create micro-goals that will help them achieve this, says Ms Bhatti.

Set a realistic time frame and try not to deviate. I would also make note of any [but not limited to] direct debits, insurance renewals and paydays in your financial calendar, she says.

This will help with budgeting and planning for the future and also provide them with a useful resource that encourages financial independence, she says.

Identify one to three large financial goals you plan to achieve each year and then create micro-goals that will help you achieve this

Sophia Bhatti, partner, Hoxton Capital Management

Nobody knows what lies ahead and what is going to be the next trend in the markets, according to Mr Spence.

So have a diversified portfolio that is global. Some places will do better than others, some industries will do better than others. What is popular today maybe obsolete tomorrow, so diversify across the planet, he tells The National.

As zoomers enter the workplace and become financially independent, their living costs will inevitably increase. They can make use of comparison websites to help manage their expenditures.

Utility bills [electricity, gas and broadband], insurance [car, home and pet], phone contracts, interest rates, investment platforms and plane tickets are just some of things comparison sites can compare for you. A little bit of research will go a long way, says Ms Bhatti.

She also recommends that young adults take advantage of an abundance of online financial planning resources that are free to use and easily accessible.

Whether it is making an initial investment, managing student debt or taking out your first mortgage, make yourself as knowledgeable as possible using online resources.

At some point in the future, zoomers are likely to inherit wealth from their family. Depending on their home country, family wealth may or may not be subject to inheritance tax, says Mr Spence. However, more and more countries are starting to tax wealth upon death.

You might find yourself in a situation where you would need to pay a substantial tax bill before you get any access to your inherited wealth. You should speak to your family to check if they have any provisions to cover their inheritance tax liability, he says.

More here:

Generation Z: eight tips to put you on the path to financial success - The National

Women must inculcate the important skill-set of financial planning.

When it comes to money, women are believed to be wiser in handling matters related to it. It does not matter whether a woman is a homemaker or a working professional, she always appears to have an upper hand on knowing how to manage expenses within a budget. Still, there are times when a financial urgency can expose the limitations of all individuals, including women. For those unpredictable times, women must inculcate the important skill-set of financial planning. That apart, in general, financial independence is not a choice anymore for young women but a basic tool for empowerment that enables them to make their own decisions.

Here are 5 go-to tips on financial planning for women, which would help them manage their money matters better:

Tax planning: Effective tax planning is not just minimising taxes. It is also about maximising your savings after-tax returns. Three basic strategies for an effective tax planning are timing, income shifting and conversion. Educate yourself about the taxes you are paying. TDS affects the in-hand salary of working professionals.

Financial goals: It is important to set realistic financial goals for the future. But how do you do this? First, make sure your goals are attainable. If you have set a goal to save more money every month than your monthly income, you are bound to fail. Financial goals also need to be specific, not generic. Instead of saying Ill save more money, say I will save Rs 1,000 more per month. Another important aspect of setting up a goal is its deadline. Deadlines are always sacrosanct. Do not procrastinate.

Emergency fund: While setting up a long-term goal, create an additional emergency fund to attend to urgent needs and unexpected expenses that may arise along the way. Financial experts recommend at least three months' of living costs in an emergency fund. Even if you can't afford a large sum, build a pot of cash with small but regular savings.

Health allowance: The millennials believe in living today and spend heavily for that. Stop doing that. Start saving for healthcare, which should include critical illness and disability benefits in old age. Also, try to set aside a separate fund for family members.

Retirement planning: Once you have secured your and family's healthcare and other immediate needs, start planning for your retirement. Ideally, retirement planning should start in the thirties and invest in that fund should be for a lifetime.

With a good financial strategy, women can balance income against expenses and fulfil their goals like travelling, buying a house and preparing for an early retirement.

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For Women Investors, Here's A 5-Point Guide To Help Them Manage Their Finances Better - NDTV Profit

PHILADELPHIA--(BUSINESS WIRE)--Independence Realty Trust, Inc. (NYSE: IRT) (IRT) today announced that its operating partnership, Independence Realty Operating Partnership, LP, closed on a new 5-year $200 million term loan. Proceeds from the term loan will be used to repay amounts outstanding on IRTs unsecured revolving credit facility.

The 5-year term loan will mature in May 2026 and bear interest at LIBOR plus 1.20% to 1.90% based on IRTs leverage ratio. At closing, the interest rate spread will be 1.25%.

Our new term loan strengthens our capital structure by effectively extending $200 million in debt maturities to May 2026 and freeing up liquidity on our unsecured revolving credit facility, said James J. Sebra, IRTs Chief Financial Officer. I thank our lenders for their continued partnership and commitment to IRT. We have increased our financial flexibility to support our ongoing operational and investment strategies to drive growth across the portfolio.

KeyBank National Association was the Administrative Agent and KeyBanc Capital Markets, Inc., Capital One, National Association and Regions Capital Markets were Joint Lead Arrangers.

About Independence Realty Trust, Inc.

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S. markets, including Atlanta, Dallas, Louisville, Memphis, Raleigh and Tampa. IRTs investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and major employment centers. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on IRTs website at http://www.irtliving.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as will, strategy, expects, seeks, believes, potential, or other similar words. These forward-looking statements include, without limitation, our expectations with respect to capital allocations, including as to the timing and amount of future dividends. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally not within our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Risks and uncertainties that might cause our actual results and/or future dividends to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks related to the impact of COVID-19 and other potential future outbreaks of infectious diseases on our financial condition, results of operations, cash flows and performance and those of our residents as well as on the economy and real estate and financial markets; changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could limit our ability to lease units or increase rents or that could lead to declines in occupancy and rent levels; uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital; inability of tenants to meet their rent and other lease obligations and charge-offs in excess of our allowance for bad debt; legislative restrictions that may delay or limit collections of past due rents; risks endemic to real estate and the real estate industry generally; the effects of natural and other disasters; delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives; unexpected costs of REIT qualification compliance; costs and disruptions as the result of a cybersecurity incident or other technology disruption; and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the Risk Factors sections of our Form 10-K for the year ended December 31, 2020, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law. In addition, the declaration of dividends on our common stock is subject to the discretion of our Board of Directors and depends upon a broad range of factors, including our results of operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, applicable legal requirements and such other factors as our Board of Directors may from time to time deem relevant. For these reasons, as well as others, there can be no assurance that dividends in the future will be equal or similar to the amount of the quarterly dividend described in this press release.

Originally posted here:

Independence Realty Trust Announces Closing of $200 Million Term Loan - Business Wire

Welcome to Ask Clark, a column designed to answer your financial questions, bymoney expert Clark Howard.

Keith from Georgia asks:"I'm a young professional who's looking at removing myself from two of my parents' credit cards. Both were initially intended to help me build credit, but I'm now ready to 'cut the cord,' so to speak.

The accounts on which Im authorized are in good standing and I myself have three credit lines for which I am the primary user. My credit utilization is under 10% on average.

My main concern is that one of the authorized user credit limits is substantial and would zap a notable portion of my available credit if removed. What precautions can I take to help safeguard against potential credit damage but still move toward financial independence?

Clark says:You can successfully take yourself off of another person's credit card without it doing big damage to your credit limit, but it's going to take some maneuvering. Clark calls it "The Hopscotch," because you take action before you remove yourself as an authorized user.

You want to apply for one more card that will replace some of the limit youre going to lose on the one that youre an authorized user on, Clark says. You may not be able to get a credit limit that will fully replace it, but youll be able to build enough of it.

Clark says that lenders will continue to view your credit file favorably as long as you keep your credit utilization below 30%, total.

In this case, Clark says, apply for another card, which would take you to four and give you more available credit. Then have yourself removed as an authorized user on the two cards that you have with your parents.

Here's more information about being an authorized user on someone else's credit card.

To hear Clarks full take on this question, listen to the segment:

Do you have a question for Clark?Use this form to ask him! And remember that you canlisten to the Clark Howard Podcast at any time here.

If you have a question but don't want to go on-air,contact Clark's Consumer Action Center for free money help.

[This article was originally published on Clark.com]

The post How Can I Remove Myself From My Parents' Credit Cards Without Hurting My Credit Limit? appeared first on Clark Howard.

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How Can I Remove Myself From My Parents' Credit Cards Without Hurting My Credit Limit? - WOKV

May 13, 2021

What people believe happens after death guides how they think about the Earth and how they behave, including whether they choose to recycle or buy energy-efficient appliances, a new study shows.

Research from Arizona State University and the University of Wyoming has found that religious beliefs about the afterlife predicted how people value and practice sustainability. Thestudywas recently published in Psychology of Religion and Spirituality. Image courtesy of Jacob Tabo/Unsplash. Download Full Image

The importance of sustainability is gaining recognition worldwide, with people of all religions focused on making sure how we use resources is sustainable, that we are good stewards of the Earth, saidKathryn Johnson, associate research professor of psychology. We found the level of investment in sustainable behaviors was partly predicted by afterlife beliefs: If people believe in reincarnation, they were more invested in sustainability and stewardship.

The research team of Johnson,Elizabeth Mintonof the University of Wyoming and recent ASU graduate Madeline Parde McClernon first conducted in-depth interviews with a group of participants. The group was made up of people of different religions, including Christianity, Islam, Hinduism, Buddhism, Judaism and Sikhism.

What has been lacking in so much of the previous research is examining people of all these different faith backgrounds in one study most prior research looks at one, maybe two different faiths, thereby limiting our understanding as to how faith more holistically influences sustainability behaviors, Minton said.

Interview responses were categorized based on how sustainability was defined and also based on religious beliefs about the relationship between people and the Earth. Religious beliefs did not affect the definition of sustainability all participants defined it as preserving natural resources for the future but they did affect why people chose to implement sustainable practices.

Christians, Muslims and Jews indicated that they thought of sustainability as a way to achieve personal independence, especially financial independence. The responses from Buddhists and Hindus emphasized the interconnections between people and the Earth.

The independence-interdependence distinction is something that has the potential to change the way that sustainable practices are promoted by policymakers, nonprofits and marketers of sustainable products, Minton said.

The research team also examined how religious beliefs about what happens after death affected sustainable practices in daily life, an idea that came from McClernon.

Madeline wondered whether people who believed in reincarnation, who believe that they would return to the Earth after death, would be more invested in the idea that the Earth needs to be a good place to return to. This idea ended up being the foundation of her senior honors thesis and of these experiments, Johnson said.

Two groups participated in this experiment. One was made of people living in the U.S. and the other of people living in India.

Belief in reincarnation predicted behaviors like preserving water, volunteering for organizations that promote sustainability, or choosing to buy energy-efficient appliances. Belief in heaven was related to fewer sustainable practices and less general concern for the environment.

Our results show that if a person believes in reincarnation, as opposed to believing they will leave Earth after death, they are a lot more invested in making sure the Earth is a good place to come back to, Johnson said.

Despite differences in religious beliefs, the study participants had one thing in common: Many cited personal benefits of sustainability practices.

We were surprised that, regardless of religious beliefs, people indicated they engaged in sustainability practices because it benefitted them in some way, Johnson said. This finding suggests that communicating the personal benefits of sustainability could be used to increase environmentally friendly practices.

This work was funded by a grant from Barrett, The Honors College at Arizona State University and from the Sustainable Business Practices fund at the University of Wyoming.

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Study: Beliefs about the afterlife affect sustainability practices - ASU Now

In Portland, the main objective of the personal injury law firm is to assist customers review the damage caused to them by other person(s) activities often recognized as the misdeed practice. They become the representative of the injured to assist them in getting financial independence after an injury that has brought a setback to their work and income.

Whenever any unjust action is conducted by a party on an injured person that makes them worthy of a remuneration from the injurer, it is termed as a misdeed practice. The lawyers are there to assist them in the act to get the claim.

Professional lawyers like the Seattle personal injury lawyer assist the harmed individual(s) to get a lawful remuneration for the misconduct of the miscreants. They show up at the court to demand the financial right of the injured which the injurer has to pay. The court then proceeds to lawfully make the injurer liable to pay for the misconduct.

The personal injury law firm determines the customers cases through an arrangement with the miscreants advice, discretion/ intercession, or, even prosecution. They can then arrive at a strategy to fulfill the goal. The preliminary lawyer prepares themselves for the same to introduce the case before the jury.

When a mishap happens, the injured loses wages and has to incur losses in getting the right medical facilities. They go through many financial and mental troubles. The definite objective of a personal injury law firm is to get their client the right financial settlement for the present and the future so that they can recover peacefully.

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Personal Injury Law Firm Are Assisting The Customers On Their Injury Cases - The American Reporter

Exchange-traded funds (ETF) have risen in popularity as an investment vehicle over the last decade. ETF pros and cons appeal to a wide range of investor types and risk levels, making them a great intermediary form of investment. They dont carry the risk that individual securities do, yet arent as broad as index funds. Moreover, ETFs dont carry the fees mutual funds typically do. Theyre a very appealing product to a broad cross-section of investors.

To understand why so many investorsretail and institutionallove ETFs, its worth drilling down deeper into the pros and cons. What makes them a more stable investment than individual stocks? Why are the fees lower than other types of managed funds? Lets get to know the good and bad of ETFs, so you can determine if theyre a savvy choice for your portfolio.

An ETF is a type of fund that tracks another investment. These funds can track anything from a broad index like the S&P 500, to a collection of stocks in a particular sector, to commodities and beyond. While this might sound similar to derivative investments, its different in that ETFs trade on stock exchanges. Investors can buy and sell shares using a ticker symbol.

Typically, ETFs have a themesomething that anchors their investment focus. For example:

ETFs have an unlimited number of shares, and investors can buy or sell at any time. This is opposite something like a mutual fund, which has strict rules about buy-in and cash-out, depending on the fund.

Investors typically choose ETFs because of their consistency. On the scale of volatility and risk, theyre on-par with mutual fundstheyre less volatile than individual securities but more prone to action than broad index funds. Heres a look at some of the specific reasons investors choose ETFs.

At their core, ETFs offer bucket investment potential. If you know what you want to invest inemerging markets, a specific sector, company size, etc.an ETF offers instant diversity, without sacrificing focus.

Despite offering some hedge against risk, ETFs arent immune to volatility. Moreover, many of the benefits they offer come with trade-offs. Here are some of the reasons ETFs might not be for you.

Seasoned investors might want more control over their money than ETFs can offer. Moreover, trending too heavily into ETFs can leave you with diversification issues, depending on the fund. Its important to invest in reputable ETFs with transparency and a history of performance to evaluate.

ETFs do what theyre designed to: hedge against risk. ETFs have found their niche among investors who want to focus on a specific market, without the legwork of researching many different companies. Its much easier to find an ETF that focuses on X, Y or Z, to hedge your exposure to a specific segment of the market. With low fees and modest stability, ETFs are great for risk-averse investors as well.

To learn more about ETFs, sign up for the Liberty Through Wealth e-letter below. A portfolio with exchange-traded funds can help you build towards financial independence in your life.

Should you invest in exchange-traded funds? Consider ETF pros and cons and see how they stack up against your investing thesis. If you want diversity with focus in a specific sector, theyre a great vehicle. If youre looking for rapid growth or want broad exposure, individual stocks or index funds may be a better play. It all comes down to factors like focus, risk, investing habit and cost.

Originally posted here:

ETF Pros and Cons - Investment U