Monthly Archives: July 2021

The state is blazing with what is known as the Financial Independence Retire Early movement. There are two Texas cities where FIRE burns the hottest.

SAN ANTONIO Many people are lighting their retirement plans on FIRE in the Lone Star state. It is not what you might think. FIRE is the acronym for Financial Independence Retire Early. It means retiring or semi-retiring before the traditional retirement age of 65.

Texas is one of the great places, said Michael Lacy, a Texan from Houston who is part of the FIRE movement.

Those who FIREstart by keeping their expenses low and saving aggressively, usually 50 percent or more of their income. Then they invest that money with the goal of retiring in their 30s or 40s. They also look for ways to raise their income and/or find passive sources of income like book sales or real estate. There are many types of FIRE, but most in the FIRE movement live off the interest from their investments and passive income streams. Generally, that means investing 25 times the income you expect to live on and then living on about 4 percent of interest from those investments. That often equates to investing between one and two million dollars for most.

Lacy has been on FIRE for the last year. He is 31 and living off a combination of interest from investments, passive income like book sales and a virtual job he works for six hours each week. He also runs the websiteWinning To Wealth to help other families on their FIRE journey. He is using his FIRE retirement time to travel with his family.

Our big goal is Niagara Falls, he said. So were going over to Florida, Panama City Beach, and then just up the East Coast. D.C. Philly, New York City.

FIRE allowed him to work less and spend more time with his daughter.

I actually have not worked for a traditional employer since May of last year, he said. Im a full-time entrepreneur now and I built a business I pretty much run virtually.

Basically, a cost of living score and a quality of life score, said Ismat Mangla, the senior content director for Magnify Money.

Close to us, Austin came in at number 6. Native Texan Eryn Schultz is moving from the East Coast to Austin this year as part of her FIRE journey because of the active lifestyle and often free activities it offers.

We love hiking, biking, getting outside. The access to nature there is great. Its also a very walkable city, she said. We only have one car as a couple.

Austin had a great quality of life score, but also a relatively good cost of living score, said Mangla.

Schultz runs the website Her Personal Financeto help others take control of their money and achieve financial freedom. Her goal is to use FIRE so she can pursue her passion for politics and nonprofits and not worry about what jobs in those industries pay.

The idea is to hit a number where were financially independent, where our investments can cover our monthly expenses, and it gives us flexibility to be able to spend our time where it is most impactful and not necessarily where were most highly compensated, she said.

El Paso came in at number 10.

Cost of living in El Paso is great, cheap goods, very low tax rates, Mangla said. That makes it an attractive option for FIRE-minded folks, but where El Paso got weighed down a little bit was the quality of life.

Yet those in the FIRE movement said Texas as a state is a great place to be on FIRE. Andrew Herring is starting his FIRE in Dallas.

Its very business-friendly, very tax-friendly. I think its just a good cost of living, he said.

Herring continues to work but his FIRE investments in real estate allowed him to take positions based on his interest rather than a salary. He also runs the website Wealthy Nickel to help others find financial independence.

I think a lot of people get caught up in retire early part and are like, oh well, I like my job, he said. "I dont want to retire. But I think, to me, what the most important aspect of it is the financial independence. It just gives you options because life can change. If you have the option to leave your job, if you need to find a new, lower-paying job or move across the country to be closer to family or whatever it is, I think the powerful part of it is the financial independence that gives you the ability to make choices you otherwise might not make.

There is one major reason Texas attracts people in the FIRE movement said former Houstonian and personal finance advisor Dominque Broadway, CEO and Founder of Finances Demystified:

No state taxes. Hello. You know what I mean? Thats one of the biggest reasons why Texas actually does have such a large influx of people moving in, she said.

Yet, Austinite and financial expert with Lending Tree Matt Schulz said to add plenty of fuel to your FIRE so you do not burn through money too quickly.

If you have goals set for FIRE, set them a little higher than you think and maybe set them a little higher because you just dont know how life is going to go, he said. Life is expensive now. Its going to be expensive in 15, 20 years.

The study found the best city for FIRE is Minneapolis and the worst is New York.

Read more:

Texas is on FIRE with the early retirement movement - KENS5.com

Greenland's government has decided to suspend all oil exploration off the island as a "natural step" in its commitment to taking "the climate crisis seriously," the Associated Press reported.

Although no oil has been located off the coast of Greenland, officials there believe undiscovered but potentially extensive oil reserves could help the autonomous Danish territory gain financial independence from the Scandinavian nation. Greenland gets an annual subsidy of about $540 million from Denmark.

As global warming continues to cause ice to retreat around the island, oil and mineral reserves could emerge, and the resulting revenue could decrease Greenland's dependence on the subsidy. However, Greenland's left-leaning government said it "wants to take co-responsibility for combating the global climate crisis."

"The future does not lie in oil. The future belongs to renewable energy, and in that respect we have much more to gain," the government said.

For more reporting from the Associated Press, see below:

The decision to suspend oil exploration was made on June 24 but made public Thursday.

The U.S. Geological Survey estimates there could be 17.5 billion undiscovered barrels of oil and 148 trillion cubic feet of natural gas off Greenland, although the island's remote location and harsh weather have limited exploration.

The current government, led by the Inuit Ataqatigiit party since April's parliamentary election, immediately began to deliver on election promises and stopped plans for uranium mining in southern Greenland.

Greenland still has four active hydrocarbon exploration licenses, which it is obliged to maintain as long as the licensees are actively exploring. They are held by two small companies.

The government's decision to stop oil exploration was welcomed by environmental group Greenpeace, which called the decision "fantastic."

"And my understanding is that the licenses that are left have very limited potential," Mads Flarup Christensen, Greenpeace Nordic's general secretary, told weekly Danish tech-magazine Ingenioeren.

Denmark decides foreign, defense and security policy, and supports Greenland with the annual grant that accounts for about two-thirds of the Arctic island's economy.

Follow this link:

Greenland Bans Oil Exploration, Cites Taking 'the Climate Crisis Seriously' as Reason - Newsweek

Practice makes perfect, and patience makes millionaires. Despite losing more than a third of its value in fewer than five weeks in the first quarter of 2020, the benchmark S&P 500 has bounced a whopping 95% off of its pandemic low. Time and again, the market has demonstrated that it rewards investors who allow their investment theses to play out over time.

But arguably the best thing about investing in stocks today is that you don't need a mountain of money to begin building wealth. With most brokerages eliminating commissions and ending minimum deposit requirements, investors can put $20 to work right now to begin or further their trek toward financial independence.

If you have $20 at the ready, which you're not going to need to cover emergencies, bills, or other basic needs, now could be the perfect time to put it to work in the following trio of smart stocks.

Image source: Getty Images.

The first genius play worthy of a $20 investment is biotech stock Exelixis (NASDAQ:EXEL). Whereas most biotech stocks are losing money hand over fist while they search for their first-ever blockbuster drug, Exelixis is sitting on the cusp of $1 billion in annual sales from its lead cancer drug Cabometyx -- and it's profitable on a recurring basis.

For the moment, Cabometyx is approved as a treatment for first- and second-line renal cell carcinoma (RCC), as well as advanced hepatocellular carcinoma (HCC). Based on just these indications alone, Cabometyx should push past $1 billion in annual sales by no later than 2022.

One thing to understand about Exelixis' lead drug is that it's not been perfect. (But when is any cancer therapy?) It failed a late-stage trial in patients with metastatic castration-resistant prostate cancer in 2014, and late last month reported underwhelming overall survival data from a combination study with partner Ipsen for patients with previously untreated advanced HCC.

But clinical development is a literal trial-and-error process. The company has close to six dozen clinical trials underway to explore the use of Cabometyx, one of which has already resulted in a label expansion (first-line RCC in combination with Bristol Myers Squibb's Opdivo). If even a handful of these studies is successful, Exelixis' lead drug could push for multiple billions of dollars in annual sales.

Something else for investors to consider is Exelixis' growing treasure chest. Having a highly profitable cancer drug in its portfolio, as well as bringing in collaboration revenue from time to time, has helped the company build up a war chest totaling $1.6 billion in cash, cash equivalents, and restricted cash and investments. This equates to 28% of its current market cap. This mountain of capital has allowed Exelixis to reignite its internal growth engine, and it could be the catalyst that encourages it to acquire other therapies or companies.

Paying 21 times Wall Street's forward-year earnings forecast for a company consistently growing sales at or above 20% is a no-brainer opportunity for patient investors.

Image source: Getty Images.

The cannabis industry has no shortage of high-growth, low-share-price companies that could ultimately thrive. But perhaps the best bang for your $20 is U.S. multistate operator Jushi Holdings (OTC:JUSHF).

To begin with, the U.S., not Canada, is where you want to put your money to work in the pot industry. According to New Frontier Data, the U.S. cannabis industry could be generating as much as $41.5 billion in sales by 2025, with average annual sales growth totaling 21% until mid-decade. Regardless of whether the federal government passes cannabis reform measures or not, the simple fact that 36 states have legalized weed in some capacity will allow marijuana stocks to succeed.

The Jushi growth story is interesting given its relatively narrow focus. Even though it has a presence in around a half-dozen states, the company anticipates generating more than 80% of its revenue this year from the combination of Pennsylvania, Illinois, and Virginia. Of its 20 currently operational dispensaries, 13 are located in Pennsylvania.

Both Pennsylvania and Illinois are limited-license states, meaning they place a cap on the number of retail licenses that can be issued in aggregate, as well as to a single company. This suggests Jushi is going to be able to build up a following in these two states without being overrun by a larger multistate operator. Meanwhile, Virginia assigns dispensary licenses based on jurisdiction, meaning competition is practically nonexistent.

Though this trio of states represents Jushi's future, the company hasn't been afraid to use its cash to expand into new markets. For example, it recently closed on two dispensaries in California, which is the largest pot market in the world by annual sales.

Among U.S. multistate operators, Jushi may well be the fastest-growing pot stock through 2025. With recurring profitability expected by no later than 2022, it looks to be well on its way to bringing in the green for its shareholders.

The 2021 Ford F-350 Super Duty. Image source: Ford.

A third really smart stock investors can buy with just $20 in July is auto-giant Ford Motor Company (NYSE:F).

Historically, auto stocks like Ford have been predominantly profitable but relatively slow growing. Constrained by the ebbs and flows of the economy and large debt loads, Ford and its peers are typically valued at price-to-earnings ratios well below the average for the S&P 500. However, this long-standing tradition may be about to change.

After more than a century of combustion-engine sales, the auto landscape is shifting rapidly. Ford's focus on electric vehicles (EV) and autonomous-driving capabilities has the potential to seriously kick-start its growth rate and (pardon the pun) fuel a multi-decade replacement cycle at the consumer and enterprise level.

Recently, Ford announced that it was upping its spending on EVs to $30 billion through 2025, with the intent of launching 30 new EVs worldwide by mid-decade. By 2030, the company anticipates 40% of its global sales will come from EVs.

Building on this point, Ford has an incredible opportunity to become a major player in China's alternative-energy market. According to estimates from the Society of Automotive Engineers of China, half of auto sales by 2035 are expected to be powered by alternative energy. With China selling 20.7 million passenger vehicles in 2019, the year before the pandemic, you can get some idea of just how many vehicles could be in demand in the largest auto market in the world. The runway is wide open for Ford to gobble up share in China.

And of course, no discussion of Ford would be complete without mentioning its rock-solid profit producer, the F-Series pickup. The F-Series has been the best-selling vehicle in the U.S. for 39 consecutive years. With trucks providing better margins than smaller vehicles and sedans, the F-Series is critical to Ford's continued growth.

A forward price-to-earnings ratio of eight isn't historically cheap for Ford. But considering the multi-decade vehicle-replacement cycle that awaits, Ford has an incredibly attractive valuation for what should be a highly profitable auto stock.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Read more here:

The Smartest Stocks to Buy With $20 in July - Motley Fool

Making your money work for you is not straightforward, and there are plenty of pitfalls involved in wealth-building that you need to be aware of if you want to move closer to financial independence.

The first step is knowing what mistakes others make so you can avoid them, and we have totted up a few of the biggest snafus that should be on your radar.

Over-eager amateur investors can be irresponsible with their cash without even realizing it, and if you are a fresh face on the finance scene then it will take you years of research to truly understand the ebb and flow of the markets.

The way you spend your money from month to month will have a huge role in determining whether you are able to build wealth over the decades, and yet far too many people do not bother to create a budget for themselves to rein in some of their more irresponsible spending behaviors.

The simple act of looking at how much money you bring in, how much you have to set aside for essentials like food and housing, and how much you have left will let you know what you have to work with. Choosing to save or invest a good chunk of your paycheck, rather than going into the red every 30 days, is a far better strategy.

Life can be unpredictable, and insurance is there to cushion the blow when the worst happens. This applies to all sorts of areas, from damage and theft at your home to bouts of ill health that leave you with big medical bills to pay.

So while saving and investing is all well and good, you could find that your nest egg is depleted quickly by any number of costly catastrophes if you do not have adequate insurance to protect it.

The longer you wait to start your wealth-building journey, the more potential opportunities to generate cash will pass you by. If you do not want to suffer from retrospective FOMO, then it is always a good idea to start saving and investing right now; not tomorrow, or next week, or next month, but today.

Of course you should still do your research and get expert advice as suggested, but also remember that procrastination has never helped anyone.

See original here:

5 Common Mistakes to Avoid When Building Wealth - SWAAY

We are today at a juncture where optimistic equity outlook and multiple rounds of liquidity rush have led equity markets to an elevated valuation.(Image: REUTERS)

By Dinesh Pangtey

We are today at a juncture where optimistic equity outlook and multiple rounds of liquidity rush have led equity markets to an elevated valuation projecting us a far optimistic economic recovery, whereas actual macroeconomic indicators indicate very different picture. Indeed, the Indian macros have a long way to catch up with the high valuations of the equity market. As a result, any setback to the economy e.g., second wave, has elongated the recovery process thereby exposing equity market to risk of corrections. On the other hand, positive developments on the capex, inflation, fiscal deficit, divestment plans etc. may take the valuation of the equity market to higher level. Thus, investing in such times could be tricky.

Before addressing this dilemma let me first touch upon the basics of investing. Investing without a purpose and goal is most common mistake investors tends to do. The first and foremost thing Investor need to do is to define their objective of investment. This brings clarity to investors vision,which enables them to take calculated risk.Thus, defining the purpose of investment is first step towards successful investing.

Now coming back to our question, well, I would like to see this as a part and parcel of the long-term growth story of India. To me, these events are nothing more than investment opportunities. If you are convinced on the relatively faster recovery of India as compared to our peers and if you are committed towards long term commitment in India equities, these events must not bother you. In fact, investors must capitalize on such opportunities.

In my opinion, the high valuations, to a large extent is factoring in long term measures taken by our government, the result of which we may see in near future. Measures such has multiple rounds of financial support to curb pandemic led slowdown, promising divestment plans, much awaited listing of LIC of India, regulatory initiatives like recapitalization and privatization of PSU banks, relaxations in regulatory norms for banks and Real estate sector, introduction of Performance Linked Incentive (PLI) scheme in several sectors is expected to give impetus to the growth going forward. Government seems to be stepping its foot in the right direction. In fact, we are witnessing some green shoots already in the form of highest GST revenues, strong recovery in auto sales, improving trade balance, SIP flows touching record high of Rs.9200 crores in month of March 2021 (source: AMFI https://www.amfiindia.com/). This coupled with expected near normal rainfall will lay solid foundation for faster economic recovery in coming years. These facts corroborate that long term growth is intact. Hence, I urge investors to invest in Indian equities. Ideally for retail investors, investment through SIP is the best way to participate in equity market. One of its advantage is that it helps in mitigating volatility in the equity market.

I believe investment yields best return only if it is done over a long period i.e., 8-10 years.Hence investors need to have a vision and discipline to become successful investor. Longer period investment coupled with vision and discipline helps one to create a corpus through value accretion and making most out of the power of compounding. Another advantage of long-term investing is that it gives opportunities in volatile market to re-enter.Investors should continue to do SIP while look for sharp market corrections as an opportunity to invest lumpsum in equity funds. As I would like to say,you may never be able to time the market however through long term investment, you might be able to time the opportunities. The recent fall in the equity market was a perfect example. Long term investor would have accumulated more by investing more in the crash.

The best way to make most out of Indias equity market potential is to invest through SIP in diversified fund. Equity market continues to show buoyancy. However, one cannot anticipate which sector might outperform others. Thus, it is better to diversify your portfolio across funds like Large cap, Mid cap, Small cap, Thematic funds etc. SIP in above type of mutual funds shall ensure investor do not miss any significant rally in any particular type of sector/ company/ theme. Diversification not only helps you to broad base your investment, but also reduces risk of concentration in particular sector/ company/ theme.

Investment in equities demands data and facts driven approach.Fundamental investment requires investors to have higher level of involvement and hence is no different than any full-time job. It is almost impossible for retail investors to do fundamental research along with their current profession. That is whereroleof Mutual Funds become important. Mutual Funds have a dedicated workforce in the form of fund managers who actively manages investors money and seasoned analysts having hands on experience on different sectors continuously looking for investment opportunities. Rigorous fundamental analysis, backed by investment philosophy, monitored through multi-level appraisal process helps Mutual Funds to efficiently identify opportunities and threat in the market and take necessary actions. Mutual Funds have been in the service for decades making retail India financially independent. Hence, I would urge Investors to trust the capabilities and invest in equities through Mutual Funds.

Investor may also look for professional advisory service having expertise in providing investment services to retail Investors. Be open to them about your objectives, share your vision, return expectation and risk appetite with them. Advisors may share their knowledge and outlook on the markets. After thoroughly discussing with the advisors,advisors shall help you on asset allocation mix to best suit your vision, return expectation and risk appetite. Thus, with the help of financial expert you would be able to build a well-planned portfolio.

To sum up I would request investors with a long-term horizon, to build discipline through investing in SIPs across funds and build corpus by maximizing the power of compounding. Meanwhile Investor should also look for market crash or corrections as an opportunity to re-enter in the market. Avoid direct investment in stock markets unless experienced. Believe in the expertise and caliber of Mutual Funds. As far as possible take help from financial experts to plan your investments.

Investing with a purpose, commitment for long-term investing and choosing right channel of investment are the milestones towards the path to financial independence.

(Dinesh Pangtey is the CEO of LIC Mutual Fund Asset Management. The views, thoughts, and opinions expressed in the article belong solely to the author. Please consult your investment advisor before investing.)

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know markets Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

See original here:

Timing the market may not be everyones game but heres what could help investors - The Financial Express