Daily Archives: December 7, 2021

There are countless sites/articles/forums about financial independence (FI) on the world wide web. Ive often come across really clever, well developed calculators that offer a really good visualisation on how long you have to go before you reach FI. But the longer I searched for the best calculator the longer I realised that they were all geared towards other countries.

One of the main reasons I created this site was to offer my fellow countrymen quality information that was tailored for an Australian audience.

The biggest issue I had with every single one of these FIRE calculators out there was they didnt factor in our Super system. The US system, which is the main system upon which I found almost all of the calculators accounted for, has a fundamentally different way their citizens can withdraw from their retirement accounts.

To put it simply, in the US you only need one portfolio to be at a certain amount before you are considered FI. But because you cant access your Super before your preservation age (99% of the time) you end up with two.Your Super portfolio and a portfolio outside of it.

So whats one to do? Do I just keep plugging away at my personal portfolio until I reach my FI number? That seems like a waste since Super has such a big tax advantage. Youre not likely to beat the 15% tax breaks on your Super.

But I dont want to put money into Super because I want to retire young! And I wont be able to touch the money until my preservation age (60 for me).

Decisions decisions decisions!

IntroducingTheAustralian Financial Independence Calculator

The above are two screen shots from the calculator showing the basic settings and the graph that it generates.

You will notice there are two lines in the graph. The Pre Super number is what you will be living off until you can access your Super. The Super number is obviously whats in your Super.

In a nutshell, the most optimal way to reach FIRE here in Australia is to:

Pretty cool huh!

Video Of The Calculator In Action

Work In Progress

The calculator has some flaws. Its a work in progress.If you find a flaw please let me know and Ill try to fix it.

Download Now

Enter your email address and not only will I send you the calculator. I will send you updated revisions of it ever time I fix a bug or the laws in Australia change.

Read the original here:

Australian Financial Independence Calculator - Aussie Firebug

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

Investing isnt just for other people. Its for all peopleregardless of their age.

Investing in the stock market can seem overwhelming, the best thing you can do is jump in carefully. These steps can get you on the right track.

Investing helps your money work for you. By investing, your money can keep up with inflation and it can help you get on track for financial independence.

Investing is one way to achieve many monetary goals, says Akeiva Ellis, CPA, CFP, and Founder of The Bemused, an online website for financial literacy. Retirement or financial independence is one popular long term goal [or] planning for the next generation, such as childrens education expenses.

Its easy to put off investing for another time, especially as other bills and financial responsibilities start to pile up. But the sooner you start, the more youll have in the long run. The earlier you start, the more compound interest can work in your favor. Thats when your money starts making money on top of itself.

Getting started with investing involves a little leg work upfront but can have immediate results. Do your homework first.

You dont have to learn the intricate ways of the market to start investing. Many platforms nowadays handle the hard work for you.

You can get your feet wet with micro-investing, she says. This means you invest small sums of money, even as low as $5. There are several investing and robo-advising platforms that work well for this type of investing.

If youre not sure how to get started, heres how to start in 5 steps.

How much you put towards your investments can help you decide a lot of other parts of your investment strategy, like how much you can regularly contribute to your account, where you open your account, and the securities you invest in.

The first step and most important component in achieving any financial goals is to thoroughly understand your expenses, says Katie Coleman, Certified Financial Planner with Ameriprise Financial, a financial planning firm. I also think it is extremely important to be realistic about what you are trying to accomplish.

Dont worry about starting out small. Even if you have other major financial obligations, there are ways you can invest right now. Even $5 is good enough to get started.

In many cases, its a good idea to pay off any high-interest debt before investing large sums of money, Ellis says. However, this does not mean that you should not or cannot start investing at all.

The type of investor you are comes down to risk tolerance, how much time you want to spend managing your account, and when you plan to use the money.

The longer your time horizon, the more risk you may be able to take over time, Ellis says. If youre more of a set it and forget it type of person, you may be more inclined to invest in funds that give you exposure to multiple holdings instead of buying individual stocks, bonds, or other assets that you may need to monitor more closely. Target date funds are good for the investor who likes the set it and forget it approach. These funds will automatically adjust your risk tolerance based on your age, and experts love them for this reason. But just because this approach means it will adjust itself, dont forget to keep checking in on your investments and continue to invest money on a regular basis.

The type of investor you are will determine the platform you use. Most full brokerage and robo-advisors dont have an account minimum but keep in mind that youll need a few dollars to start investing. Check NextAdvisors list of best online brokers to get started today.

If youre new to investing, robo-advisors are a great option. These are software-run platforms that ask you a few questions about your risk tolerance and investment time to determine the best investments for you.

Its time to open your account, deposit funds, and choose your investments. Dont worry too much about your opening deposit, but remember and try to add funds regularly to your account.

As a beginner investor, you can start with as little or as much money as you would like, Ellis says. Even small amounts of money, invested at a consistent pace that works for you, can result in a sizable portfolio balance over time.

Like anything that needs regular maintenance, you should always check on your investment portfolio regularly. Try to set a calendar reminder to review your investments once a month, or even every quarter.

See the original post here:

If Youre a Beginner Investor, Use This Step by Step Guide To Get Started - NextAdvisor

Whenever we come across the term financial technology (fintech), we get the image of abstruse apps that deal in digital payments, trading of marketable securities, or crypto. Although fintech did begin with something like that, it is now undergoing notable changes to cater to the needs of different age groups.

Off late, there is a rise in fintech for kids, which is making them financially independent. Let us understand below the reason behind such a rise.

Children below the age of 18 constitute nearly 41 percent of the country's population, a large and underdeveloped market with high potential for growth. And, the growing interest of children in fintech is apparent. In recent times, even kids are joining the race to make money and become financially independent.

And, entrepreneurs have realised this, and are coming up with more fintech startups aimed at children as customers. Investors and capitalists are backing such startups by making investments in their series of funding rounds.

These fintech startups know that their thriving customer base is children below 18 years of age, and hence they are coming with a specification where parents can also keep a track of their children's expenditure and savings.

Many apps have the feature where parents can directly transfer to their children accounts on a monthly basis. The apps also give kids the facility of setting goals and save money until the goal is achieved. Upon the completion of the goal, the user is notified to buy what he was saving for. Besides this, some apps also teach children money management skills through gamification and AI-led insights.

Fintech apps are also playing a prominent role in skilling kids by teaching them financial skills that are not usually taught at school by teachers or at home by parents.

In India, only 2.5 percent of the population invest in the stock market, which is an alarmingly low rate compared to other countries..

The young adults of today are increasingly independent in every aspect of life, especially financial freedom. They do not want to bother their parents for day to day transactions made by them.

By learning money-making and money-saving skills, they are gaining valuable insights on financial independence, which is sure to help them make notable contributions in the field of investment and will help in making the future economy more sturdy.

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)

Read more here:

Why is there a rise in fintech for kids? - YourStory.com

If you get an employer match for contributing, socking away enough money in your 401(k) to maximize your match should be your first investing priority. Once you get beyond that point, though, many 401(k) plans have limited choices and high fees that make them less-than-ideal places to invest your money.

If you have no 401(k) or are stuck with a plan like that and maxing out your match isn't enough to get you to a financially comfortable retirement on the timeline you'd like, you can invest money elsewhere. These three approaches are better ways to save for retirement than socking away too much money in a high-cost, limited-choice 401(k).

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If you're eligible to put money into a Roth IRA either directly or through a backdoor contribution, they are a tremendously powerful place to invest for your retirement. Once you've put your money in your Roth IRA, it can grow tax-free inside the account for the rest of your life. In addition, you can take completely tax free withdrawals in retirement, making it one of the most tax efficient places to build retirement wealth available to most Americans.

In addition, many brokerages offer Roth IRA accounts with $0 maintenance fees and $0 stock trading commissions, making them incredibly operationally efficient ways to build wealth over time as well. Indeed, for those that are eligible, working to max out a Roth IRA is the best choice after maxing out a 401(k) match for retirement savings money.

There are a few things to watch out for, though, as you're building your plan. In 2021 and 2022, contributions are limited to $6,000 per year ($7,000 if you're age 50 or higher). In addition, if you're considered high income or are married and file your taxes separately from your spouse, you could be restricted from directly contributing to a Roth IRA. Also, you may pay taxes and penalties on any growth in your plan if you withdraw it before age 59 and a half.

If you manage your money carefully, an ordinary brokerage account can be a wonderful place to save money for your retirement. There are absolutely no limits or restrictions on the amount of money you can invest in an ordinary brokerage account, and you aren't penalized for withdrawing your money early. That makes ordinary brokerage accounts great places for investors who want to follow the FIRE (Financial Independence / Retire Early) approach to leaving the rat race early.

Recognize, though, that ordinary brokerage accounts have to be carefully managed to be good sources of retirement money. First, because there's no penalty for early withdrawals, it's tempting to take money out of those accounts early when "life happens." If the money doesn't stay in your account compounding on your behalf, then it and its potential growth won't be there when you retire.

Second, because they're not tax-advantaged, you'll be subject to taxes on the capital gains, interest, and dividends you receive on your investments in ordinary brokerage accounts. As a result, following a "buy with an intent to hold" strategy of keeping portfolio churn low can help your money compound more efficiently for you inside an ordinary brokerage account.

The primary purpose of a health savings account is to enable people to cover the costs of healthcare. They allow folks to make tax-deductible contributions to the account, letting the money in the account grow tax-deferred, and then allow completely tax-free withdrawals to cover healthcare expenses. This triple-tax-advantage makes health savings accounts an incredibly powerful purpose-driven way to save for your future.

This is particularly true when you recognize that healthcare costs are one of the key costs that seniors face that tend to rise over time -- both because of their increasing ages and inflation. Should you reach retirement with more money than you need to cover your healthcare expenses, you can withdraw money from your health savings account penalty free once you reach age 65. That makes HSAs similar to Traditional IRAs that also offer taxed, but penalty-free withdrawals in retirement.

Recognize, though, that to contribute to a health savings account, you have to be signed up for a qualifying high deductible health insurance plan. As a result, you will need to cover the early portion of your actual healthcare costs either out of that health savings account or another source of money. Also note that annual health savings account contributions are limited in 2022 to $3,650 for single people and $7,300 for families, with a potential $1,000 catch up contribution for those 55 and up.

Between a Roth IRA, an ordinary investment account, and a health savings account, you will likely able to fill in the gap from either not having a 401(k) or only having expensive choices in your plan. Just remember that saving for retirement is best done over the course of a career. So get started now, and give yourself the longest runway possible to build your retirement nest egg.

Continue reading here:

3 Better Ways to Save for Retirement Than a 401(k) - The Motley Fool

Trainer Vernica Vidales shows a punch to some of the girls of Box2Grow. Photo from Box2Grow

The road to Manrique La Honda is among the most difficult to navigate in Medellin, Colombia. Its nearly a one hour journey in the hills to reach the invasion, or informal settlement. The barrio was started 20 years ago and is home to nearly 1,000 families, some of whom live in extreme poverty, surviving on less than a dollar a day. Some are refugees from the political strife in Venezuela, or are indigenous people who have been displaced, or are fleeing violence in their homes.

The homes are built from discarded plastic and wood. The community only received access to electricity, roads and running water three years ago.

Many of the women there are victims of physical and sexual abuse, with few prospects for gaining financial independence to break the cycle of violence.

This is where Andrea Gonzalez decided to set the roots for her non-profit organization, Box2Grow, a boxing training project aimed at empowering some of the countrys most vulnerable women. The program, which arose from her foundation, Volunteers in Colombia, teaches boxing skills and physical conditioning twice a week, as well as social and emotional skills training every 15 days, educating the participants about womens rights, self esteem and relationships.

Box2Grow was founded in February of 2021 and has close to 50 participants, ranging from ages 7 to 65.

What we see right now with the women is more discipline, they come on time, they connect better with themselves, who they are as a person. They also have improved self esteem, said Gonzalez, 32, of the program, which is coached by two members of Medellins amateur boxing team: Diego Beltran, who trains the teenagers and adults, and Vernica Vidales, who trains the youngest participants up to age 12.

In the beginning it was like, No I cannot do this, Im not strong enough, I cannot run five miles, but now they can. They see what their bodies can do so their attitudes are different, now they are not saying, I cannot do it. Theyre saying OK lets try.

That shift in attitude makes a big difference, not just in the gym but in life as well, Gonzalez says. She notices an uptick in their self respect and empathy towards others. The gym also provides a safe environment where the women can seek support from one another if they need help leaving an abusive or exploitative environment.

For Gonzalez, helping the women of this community is a personal issue. Born in the countrys capital of Bogota, she was adopted at six months old by a family in Ijlst, the Netherlands after her biological mother was a victim of domestic abuse. She moved to Curacao, an island off the coast of Venezuela, after completing her social work degree, and then relocated to Medellin, where she looked more like the average person than where she had grown up in the Netherlands countryside.

She founded Volunteers in Colombia, working as the conduit between international volunteers looking to connect with smaller, localized non-governmental organizations. She began assisting the underserved La Honda area during the COVID-19 pandemic, soliciting donations to provide food packages for those in need. The women she connected with were grateful for the assistance, but also were in need of recreational activities to engage their minds and body.

A lot of the time the women are only sitting in their house, not doing much, feeling disconnected from the neighborhoods. Violence and sexual violence, it was already bad but during the pandemic and lockdown the numbers were only getting worse, said Gonzalez.

The programs success is measured more so in its emotional impacts instead of trophies. There are success stories like Ximena, a 12-year-old girl who had difficulties controlling her rage at first, but now has better control of her emotions and can focus better on her school work. Then theres an 11-year-old girl identified under the pseudonym Juanita, whose family fled their village six years ago due to armed conflict. She had feelings of abandonment after her mother took a job selling ice cream in Medellins city center, but has learned to connect better with her community through boxing.

Some of the women have begun sparring, testing their limits in competition with one another. They hope to enter some of the women into tournaments next year, but that requires funding for the program. Box2Grow receives no funding from the Colombian government, and made it through its first year thanks to donations from Gonzalezs friends and family.

A GoFundMe page set up in October has raised 5,425 towards its 25,000 goal. The women are also in need of equipment and gear for their training, like gloves and hand wraps, which can also be donated.

The women can take inspiration knowing that one of the greatest female professional boxers ever, Cecilia Braekhus, was also born in Colombia. But even if they dont become fighters, the program is helping them win rounds in life.

I really like boxing because it takes a special attitude. I never had doubts about boxing because I know what it can do for your mind and body, said Gonzalez, whose foundation also offers classes for women to learn English, or how to cut hair, or become baristas through its Un Paso Adelante program.

I want to see that they find their passion, they find their dreams and they make it a reality. I want them to be empowered in body and mind and that they financially are getting stronger and dont have to depend always on a man.

Ryan Songalia has written for ESPN, the New York Daily News, Rappler and The Guardian, and is part of the Craig Newmark Graduate School of Journalism Class of 2020. He can be reached at [emailprotected]

Excerpt from:

Box2Grow empowers Colombia's most vulnerable women through boxing - The Ring - The Ring

SEATTLE, Dec. 06, 2021 (GLOBE NEWSWIRE) -- Consilio Wealth Advisors announced today that Hao Dang will be joining the team as their Investment Strategist in efforts to continue elevating their investment advisory services.

Dang will be joining the company from an industry-leading $4 billion firm, where he served as VP of Portfolio Consulting since 2014. During his time there, he successfully led the charge of investment strategy for many different advisor teams.

"Hao is a total bar-raiser for Consilio Wealth Advisors. Not only is he one of the smartest finance minds I've ever met, but he has such a strong passion for serving others and an insatiable thirst for learning," says Nathaniel Donohue, Partner & Advisor, "We're grateful to have him on our team."

Dang's role will consist of spearheading the firm's economic and market outlook, portfolio model management, investment research, and trading. He says he found Consilio's approach to clients and capital markets to be absolutely unmatched. He's excited to be working with a team that's equally as passionate about educating others on how to exceed the goals they've set for themselves.

"Joining Consilio allows me to leverage my strengths to help working professionals and retirees reach their goals," says Hao Dang, "They've assembled an exceptionally talented team, and I'm excited about the future of this firm and what we will do together."

Partner and Advisor, Christopher Kaminski, is excited about Dang's passion to educate. Over the coming months, with the help of new team member Dang, Kaminski says you can expect to see their team rolling out additional capabilities very soon.

"Hao has a calm, methodical approach that perfectly matches the ethos of our firm," explains Kaminski.

To follow updates from Hao and the Consilio Wealth team, visit https://www.consiliowealth.com/.

About Consilio Wealth Advisors: Consilio Wealth Advisors, LLC ("CWA") is a registered investment advisory firm with experts seasoned in tech and retiree wealth management. Consilio partners with clients in two important seasons of their life. First, as they're accumulating wealth in the technology industry and second, as they're enjoying financial independence in retirement. In both seasons of life, it's important to make proactive decisions from a place of clarity and confidence. We're honored to empower our clients to do exactly that. To learn more about Consilio Wealth Advisors, visit https://www.consiliowealth.com/.

Contact: Nathaniel Donohue

Nathan.Donohue@consiliowealth.com

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Consilio Wealth Advisors Hires New Investment Strategist Hao Dang to Expand Investment Advisory Offerings - GlobeNewswire

How has life changed for Australians over the last twenty years? Are we better off? Are we healthier? How has family life changed? How have our attitudes changed?

The Household Income and Labour Dynamics (HILDA) Survey, administered by the University of Melbourne and now in its 20th year, is the only national survey tracking the life courses of Australians. The researchers go back to interview the same Australians each year, over 17,000 of them, providing a unique window on how our social and economic circumstances are changing.

It is the only nationally representative data source we have that provides rich information on the pathways people are taking, providing insights into what led them to where they are and helping us to understand whats changing and what may be driving the changes, says Professor Roger Wilkins, deputy director of the HILDA Survey Project at the University of Melbourne.

Overall he says HILDA reveals a relatively stable and well-functioning society over the last 20 years marked by lower levels of poverty and financial stress, a lower impact from crime and increasingly tolerant/progressive attitudes.

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The results from HILDA provide a real counterpoint to the sense of gloom that can sometimes overwhelm contemporary views of the present, he says.

For example, while you can argue about whether inequality is too high or not in Australia, HILDA shows that the actual level of income inequality has been remarkably stable over the last 20 years, says Professor Wilkins.

But that isnt to say that everything is fine. In particular, HILDA shows that as a society we could be doing a lot better by single parents.

According to HILDA, 20 per cent of single parents are in poverty compared with just 4.5 per cent of coupled parents.

It also shows that young people are facing a more daunting time with the transition into financial independence, and the economic challenges from the pandemic will make that worse. Young people are taking longer to leave home and secure full-time work, and house prices are looking more out of reach.

The current survey is now underway and will provide a crucial snapshot of how COVID-19 has affected our collective lives. Professor Wilkins says the crisis and understanding its social and economic impact could be a circuit breaker for much needed policy reform.

HILDA over the last 20 years has told a story of two decades in the first 10 years of the century incomes rose strongly amid the resources boom, but since then living standards have stagnated, and that stagnation has in part been perpetuated by policy complacency, says Professor Wilkins.

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For example, he argues a lack of investment in infrastructure has only started to be addressed recently, and tax reforms aimed at taxing labour less and property more are overdue.

So, what does HILDA tell us about how weve changed over the last 20 years?

We are clearly smoking much less. Since 2001 the proportion of Australians smoking daily has fallen significantly from nearly 19 per cent to now 11 per cent. There are also signs we may be drinking less regularly the proportion of people drinking alcohol five or more days a week is down from 15 per cent in 2002 to 11 per cent.

But despite those positive signs, obesity is rising with 59 per cent of people over-weight or obese, up from 54 per cent in 2006.

And the extent to which we are exercising doesnt appear to have changed in the last two decades despite the growing fashion for sportswear. Just over a third of us exercise for at least 30 minutes three or more times a week, but not every day, and that is virtually unchanged from 2001.

Also unchanged is the proportion of us doing very little. About 13 per cent report never exercising for at least 30 minutes each week. And the proportion of us exercising for at least 30 minutes every day is actually slightly down from nearly 14 per cent in 2001 to 12 per cent now.

HILDA also shows that Australians are increasingly vulnerable to psychological distress. The proportion of adults measured by surveys to be a high or very high risk of psychological distress has soared by about 30 per cent between 2007 and 2019, with women particularly more vulnerable.

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The proportion of women at high or very high risk has risen from 17.7 per cent to just over 23 per cent, while the proportion of at-risk men has risen from 15 per cent to 19.4 per cent.

HILDA points to a dramatic fall in property crime like theft and break-ins in the last 20 years. The proportion of survey respondents reporting they were the victim of property crime in the previous year has dropped from 6.7 per cent in 2002 to 2.7 per cent in 2019.

There has also been a drop in the proportion of people experiencing violent crime from 2 per cent in 2002 to 1.2 per cent in 2019.

However more Australians in HILDA are reporting that they feel they are discriminated against on the basis of gender, age, ethnicity, religion or parental status when applying for a job. In 2008 about 7.3 per cent of respondents reported some sort of job discrimination in the last two years, and that had risen to 8 per cent by 2018.

When it comes to how we live, one of the starkest changes over the last two decades has been the rise in the number of working mothers.

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In 2001, both parents were working in about 60 per cent of couple-parent families with dependent children. But that proportion has now increased to 71 per cent.

Probably reflecting the increased time mothers are spending in paid work, the proportion of families with pre-school children using childcare has almost doubled from 28 per cent to 53 per cent. And among those families using childcare, the average real spending on childcare (in 2019 dollars) has risen from $A130 a week in 2001 to $A205 a week.

The proportion of women working has risen from 53 per cent in 2001 to now 60 per cent, but women still tend to work fewer hours a week than men (32 hours versus 40 hours), and for less pay. On an hourly wages basis the HILDA data suggests that the gender pay gap has actually widened between 2001 and 2019 from 8.6 per cent to 9.4 per cent.

And while women are working more, within the family women continue to do significantly more unpaid work (house work and caring) than men.

Among different sex couples with dependent children, the woman is doing 21 hours more a week of unpaid work than the man, though that has narrowed significantly from 29 hours more in 2002.

This narrowing is being driven by a combination of men taking on a bit more of the work, and by women simply doing less unpaid work possibly reflecting the wider use of childcare as women increase their work hours.

On average men in these families have increased their unpaid work from 24.7 hours to 27.8 hours a week, while unpaid work by women has fallen from 53.5 hours to 48.7 hours a week.

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Were also spending more on eating out rather than cooking at home. While household grocery spending has dropped 11 per cent since 2001, our spending on eating out has risen by 23 per cent.

Another big social change is the increase in university qualifications. In 2001 about 27 per cent of Australian aged 25-34 had a university degree, but that has now increased to close to 40 per cent.

The increase in degrees may be contributing to the delay in young Australians achieving independence, that is revealed in HILDA. Young Australians are staying home longer with their parents with about half of Australians aged 18-29 now still living at home, up from 41 per cent in 2001.

And in their first year out in the job market after full time education the rate at which young Australians have secured full time work has fallen from around 52 per cent in 2001 to 45 per cent now.

Rates of casual work are little changed over the last 20 years, with just under 25 per cent of employees employed casually in 2001 compared to 22 per cent now. However rates of casualisation are highest among the 15-24 age group at 56 per cent, and that is up from 51 per cent in 2001.

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Older Australians meanwhile are working for longer. At the start of the century a mans average retirement age was around 62, but that has now risen to 67. Among women the retirement age has risen from 61 to 65.

HILDA shows that social attitudes towards marriage and parenting are becoming more progressive. The most striking shift since 2001 is the growing acceptance of the rights of same sex couples.

Attitudes in HILDA are measured on a 7-point scale with a score over 4 indicating agreement with a particular survey statement. In 2005 Australian men generally disagreed with the statement that same sex couples should have the same rights as heterosexual couples (score 3.3) but that has now turned around to clear agreement (score 5.2).

Among women in 2005 there was mild agreement (score 4.1) that same-sex couples had the same rights, but that has now swung to strong agreement (score 5.6).

Australians are also more accepting of a womens decision to be a single parent (men and womens attitudes changing from mild disagreement with the statement that it is alright for a woman to have a child as a single parent, to now clear agreement).

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Men and women still tend to agree with the notion that children are happiest with both a father and mother, but the strength of that opinion has weakened (score now 4.2 among women down from 5.1, and among men 5.1, down from 5.8).

This rise in more progressive attitudes to marriage and family has been accompanied by a steep rise in the proportion of Australians dropping any religious affiliation. In 2004, some 25 per cent of HILDA respondents reported having no religious affiliation, but that has now risen to almost 40 per cent.

Economically, HILDA shows that households are generally better off with incomes rising and poverty and financial distress down over the last two decades.

In 2001 almost 17 per cent of people experienced at least two indicators of financial distress like not being able to make a mortgage repayment, or being unable to pay a utility bill, or having to skip meals for example but that has now fallen to 11 per cent.

There has also been a slight decline in the proportion of people living in relative poverty from 12 per cent in 2001 to 11 per cent now.

Income inequality has also been stable. The Gini Co-efficient is a statistical measure of income inequality where a score of 0 means everyone has the same income and a score of one means one person has all the income. In Australia, the Gini coefficient has remained firmly between 0.29 and 0.31 since 2001.

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But household disposable income growth has stagnated in the last ten years. While average incomes jumped by 28 per cent between 2001 and 2009, since then incomes have grown by only just 6 per cent.

That stagnation has fuelled the concerns about housing affordability amid the continued boom in property values. HILDA shows home owners debt levels have more than doubled in real terms (2019 dollars) from $A168,300 in 2001 to $A355,400 in 2019.

Levels of home ownership meanwhile have dropped slightly some 65 per cent of households now live in an owner-occupied home, down from 69 per cent in 2001.

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How weve changed in 20 years - Pursuit

Rebekah Nelson

Unpaid internships no longer serve students due to financial stress and lack of labor appreciation.

As the fall semester comes to a close, the search for internships for the upcoming year is in full swing. Many Baker students participate in short and long-term internships year-round as several academic programs require an internship experience to graduate.

Long praised for their ability to provide students with real-world experience, internships have been growing in commonality each decade since the 1970s. The increasing need for professional development opportunities has come at a great cost to students around the country. We have normalized unpaid internships under the narrative that trading our labor for free is necessary in attracting attention from future employers.

Over the years, legislation has upheld the legality of unpaid internships on a national level. The Fair Labor Standards Act states that employees are required to be paid for their work, though through legal loopholes, these interns are not considered employees by the organizations. If the employer can establish that the intern providing the work is benefiting more than the employer, then the legality indicates there is no need for the intern to receive payment. This ruling dictates that students are not entitled to minimum wage or overtime pay if they are not true employees and specifies that they are not entitled to a paid position after their experience is over.

Recent research from the National Association of Colleges and Employers shows that over 40% of interns go without pay. The exchange of free labor for the sake of opportunity costs students time and energy that could otherwise be spent in the workforce earning a paid wage. Not only do unpaid internships exploit populations that are particularly vulnerable to financial instability, but they also perpetuate existing socioeconomic disparities.

Internships widen the gap between students who have financial support to work for free and those who do not. Students who are able to sacrifice their time continue to climb ahead of those who cannot afford to work without pay. Its not easy to pay the ever-increasing cost of college tuition that has jumped over 1,200% since the 1980s on the salary of a volunteer.

In a time when the cost of living continues to increase and wages continue to stagnate, financial independence becomes increasingly out of reach for young adults and college-aged students. It is predatory for for-profit corporations to deny interns compensation for the work they contribute by justifying it with the benefit of experience. Post-graduation, internship experience means nothing when youre forced to settle for a job that pays the bills.

With the ongoing course of the COVID-19 pandemic, now is especially not the time to be idealizing unpaid labor. The so-called labor shortage has forced the nation to reconsider the way we work and live. Employers have become increasingly desperate for new hires while employees are demanding better conditions, salaries, benefits and work-life balance. Weve come to realize that expecting prospective employees to volunteer their time for organizations that generate revenue is neither admirable or acceptable.

For some, unpaid internships are the only option available for degree completion. At Baker, some internships may actually cost the student tuition money or travel costs in order to gain the necessary experience for graduation. As the work culture continues to adapt to the upcoming generations, its important to keep in mind these changes require social support and the stigmatization of exploitative practices. Unpaid internships do not provide an equitable opportunity for all students nor are its operations justifiable.

Though finding paid internships may be difficult or impossible depending on your program, there is growing popularity among micro-internships which are accessible online via websites like Parker Dewey. Interning is real work and is necessary for the stability of organizations. Fight for proper compensation because it is truly a matter of time before unpaid internships are a thing of the past.

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It is time to end unpaid internships The Baker Orange - Baker Orange

The only woman bank cashier in America, or possibly in the world. Photograph, 1890.

The very first female U.S. senator was sworn in on November 12, 1922, representing the state of Georgia. Her name was Rebecca Felton. She was 87 years old at the time. Her tenure lasted one day.

Hers was a token appointment to placate new women voters when the sitting senator died unexpectedly. The special election was expected to produce a new senator before congress was back from recess. When Walter F. George won the special election, he allowed Fenton to be sworn in for one day to appease his female constituents.

Fenton, a prominent suffragette and unfortunately virulent white supremacist history is always unkind to those on its wrong side called out southern men for doing little for womens rights, writing that honeyed phrases are pleasant to listen to, but the sensible women of our country would prefer more substantial gifts. It had been just a little over twenty years since married women were allowed to open their own bank accounts, and own their own land. And yet, few did.

Even in the 1970s, fifty years later, married women in the United States could not universally open bank accounts or apply for credit cards without first procuring their husbands permission. And women couldnt obtain a loan without a male co-signer.

Between the years 1971 to 1976, Ruth Bader Ginsburg argued a number of cases that empowered womens rights under the Equal Protection Clause of the Constitution that set precedence for womens financial freedoms today.

Ginsburgs work paved the way for the Equal Credit Opportunity Act of 1974 which prohibited discrimination on the basis of race, color, religion, national origin, sex, marital status, or age in credit transactions.

47 years later, we are in a new era in which financial transactions are no longer gender-discriminatory. And thanks to DeFi and crypto-currencies, they are indeed gender-blind. De-centralized finance, or DeFi removes the central service, such as a bank or exchange, that exercises control over the entire system. Regulation is often lacking, but so is discrimination.

We live in an era in which gender equality should be the norm, not male-dominated nor female-overprotected, says Nimbus CEO Alex Lemberg. The financial world doesnt simply transfer assets to those with a good business idea, as it should. Although women have proved to be highly capable and successful in almost every single industry, finance is still dominated by men who may wrongly perceive women as risky or incapable of making financial decisions. DeFi offers a safe harbor for those facing gender discrimination in traditional financial institutions.

Alex Lemberg

The fact that Blockchain technology does not discriminate is one of the most positive transformations in financial systems worldwide, adds Lauretta Otoo of CQ Legal and Consulting.

The problem is that there are far fewer women than men taking advantage of the opportunity in DeFi. Men are twice as likely as women to hold Crypto. From my experience, women are financially cautious and very serious about finances, but the issue may be the lack of motivation to participate in something not directed toward them. Once women are motivated, participation won't be a factor, Lemberg continues.

Cynthia Quarcoo, Managing Partner of CQ Legal and Consulting, says that a barrier to entry could be a lack of technical background, making Crypto more complicated in an ecosystem constantly evolving over short periods of time. She adds, There is no secret formula for doing this, but women wont be convinced to join an industry that is underrepresented by females.

Quarcoos associate Otoo agrees its not any harder for women to understand DeFi, but women are less aware of its potential. Women need to know that there are a lot of entry points, and no need to be technical or specialize in cryptocurrencies. The ecosystem is versatile, offering opportunities regardless of background.

Further, in countries where womens rights lag far behind mens, DeFi gives women more opportunities to control their finances independently of men. We need to drive education and awareness that financial knowledge ultimately brings success. Women in all communities can use DeFi to create their financial safety net. I believe that this is also our mission to make women free to manage their own assets.

Quarcoo adds, Women can be financially included and attain their own financial independence because Blockchain is an ecosystem that allows for the participation of all persons regardless of gender, culture, or country. Even where women have few rights, all they need is access to the technology.

But what is more important and I never get tired of emphasizing this is the unidentifiable nature of DeFi. To DeFi, gender doesnt mean a thing. Women have the same opportunities as men built into the structure of the system, and to me, the main goal of the Defi sphere is to provide equal access to everyone, Lemberg concludes.

The internets easy access to information has made marvelous inroads for underrepresented communities worldwide. With the advent of crytocurrency and DeFi, that access is being extended to financial resources as well. We can only hope that over time, governments will follow suit.

Link:

How Defi Is Empowering Women To Create Their Own Financial Destiny, An Interview With Alex Lemberg - Forbes