Category Archives: Financial Independence

By Louis Kalumbia

Dar es Salaam. CCM chairperson Samia Suluhu Hassan, who doubles as the President of the United Republic of Tanzania, yesterday unveiled the government and party achievements as Africas longest ruling political party marked its 45th anniversary.

In celebrations held in Musoma, Mara Region--the birth place of the founding Father of the Nation Julius Nyerere--the Head of State listed key achievements as including maintenance of peace and security, furthering democracy and good governance as well as promoting investment through construction of large, medium and small-scale industries.

Speaking at the live broadcast event, President Hassan said the implementation of the Julius Nyerere Hydropower Project (JNHPP) aimed at providing reliable electricity to support the countrys industrialisation agenda.

Strengthening transport and transportation services and implementation of the on-going standard gauge railway (SGR) are among the successes, she said, adding that come 2025, their implementation will be at a higher percentage.

Improving roads and bridges, aviation services and airports construction as well as transport in marine and lake bodies through construction of ships and ferries for passengers and cargo transport are the other areas, she added.

In the education sector, the CCM leader said infrastructure for education delivery such as classrooms; special schools; secondary schools, vocational and education training centres, laboratories, teachers houses, and many others were being constructed across the country. According to her, construction of dispensaries, hospitals, health centres in the wards, districts, regional and referral levels, distribution of medical equipment and training of experts are implemented to improve the health sector.

We have also managed to properly supervise the outbreak of Covid-19 and provide jabs to citizens. I reinstate my call that citizens should go for free vaccination provided countrywide, she said.

Furthermore, she said the government invested in production and distribution of clean and safe water that has reached 75 percent and that the journey towards supply of 85 and 95 percent to rural and urban Tanzania was going on.

Priority is on the agriculture, livestock keeping and fishing sectors, therefore, cashew and cotton farmers were this season given subsidized inputs contributing to increased yields, she said.

According to the Head of State, further investment has been made in the construction of warehouses, cilos and value addition factories for agriculture and livestock products.

The CCM chair said 10 percent of approved budgets by council is being allocated for economic empowerment to the youth, women and people with disabilities (PwDs).

According to her, special windows for loans disbursement have been introduced by different banks, the project by the Tanzania Social Action Fund (Tasaf) and enactment of policies and laws aimed to protect the interests of citizens against small sized financial institutions have been started.

The government is also supervising the Savings and Credit Co-Operative Societies (Saccos) and Cooperative Unions (CUs) for the interests of citizens, she said.

Furthermore, President Hassan said the CCM administration continues with the formalisation of the informal sector in order to benefit Tanzanians and broaden efforts of economic inclusion.

Following these efforts, Tanzania was in August 2019 declared to enter the low middle economy, six years before anticipated time, she said.

The Head of State said achievements recorded by CCM include construction of a political and ideological college in Kibaha, Coast Region, introduction of membership electronic registration and recording financial independence.

She said the independence has enabled the party to increase salaries of officers and significantly service its loans.

Briefing on the membership electronic registration process, the partys secretary general, Mr Daniel Chongolo, said it aimed at maintaining membership records, increase revenue base and enable distributed cards to be used in provision of social services.

He said party members have increased to 12 million from 500,000 in 1977 during the union of the Tanganyika African National Union (Tanu) and African Shiraz Party (ASP).

Delivering a message from the Communist Party of China (CPC), an officer whose name couldnt easily be accessed said the 45th anniversary would be a starting point for CCM to alleviate social economic and national development to the new heights.

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Samia lists success stories supervised by the ruling CCM - The Citizen

What is good financial health? Are there a minimum number of 'big picture', timeless, universal and objective indicators of financial health that can be easily measured and monitored? What benchmarks or targets for those indicators should be met or exceeded to signify good financial health?

These were the questions we asked at my previous financial planning firm, Wealth Foundations, starting around 2010. Our aim was to provide a simple but robust, high-level framework for assessing good financial health, both for existing and potential clients.

After a number of iterations, in mid-2012 we finally settled on five indicators and, subsequently, saw no need for any further change.

Having now retired as a financial planner, and with the consent of Wealth Foundations, the purpose of this article is to introduce this personal financial health framework to a wider audience.

The hope is that it will provide anyone who is willing to do a little homework with a sound basis for understanding the current state of their financial health and the direction they need to head to improve it.

First, What is good financial health?. We equate good financial health with financial independence. Financial independence is having sufficient accumulated investment wealth to support your desired lifestyle, indefinitely, without the need to work.

Of course, you can choose whether and how much you want to continue to work but you dont need to earn exertion income. So, financial independence isnt necessarily retirement.

The first indicator is the Investment wealth ratio, defined as your net investment wealth (i.e. investment wealth less debts), divided by your net worth. Its examining the question Is too much of your wealth allocated to lifestyle assets?.

For good financial health, the benchmark for this indicator is set at a minimum of 55% i.e. at least 55% of net worth needs to be held as net investment wealth and no more than 45% as lifestyle assets (e.g. own residence, holiday home, cars, boats etc.).

The benchmark was chosen based on experience with Sydney-based, high net worth/high income financial planning clients and is, admittedly, a little arbitrary. But its rationale is to highlight that if too much of your wealth is tied up in lifestyle assets, financial independence may be elusive.

The second indicator is called the Retirement expenditure multiple. Its calculated as your net investment wealth divided by your desired annual retirement (or financial independence) spending. Its looking directly at the issue of Will you run out of money?.

The financial independence benchmark for this indicator is a requirement for net investment wealth that is at least 25 years of desired annual retirement spending. Its the equivalent of the often criticised '4% safe withdrawal rate'.

For those who argue that the benchmark should be more than 25, the reality is that most Australians fall so far short of it that pushing for a higher number is largely academic. And, for those who argue its overly conservative, my retort is that you better not plan on living to age 100.

Regardless, the Retirement expenditure multiple benchmark, like all the benchmarks, is a 'rule of thumb', rather than a hard and fast dictate. The benchmarks provide meaningful targets that those who desire to be financially independent can compare their circumstances with.

The third indicator is the Tax effectiveness ratio. Its your total superannuation holdings divided by your Projected lifetime investment wealth. Projected lifetime investment wealth is your current net investment wealth plus an estimate of the amount you expect to save between now and the date of your desired age of financial independence or retirement.

The Tax effectiveness ratio is a proxy measure to answer the question Are your investments held tax effectively?. The benchmark for this measure is at least 75%. Its basis is that since superannuation is currently a very tax effective environment in Australia and its where most people should hold the majority of their investment wealth.

Again, its a rule of thumb rather than a dictate. There will often be legitimate reasons why the benchmark wont or cant be achieved, without jeopardising the goal of financial independence.

The fourth indicator is the Growth asset allocation ratio. Its your growth investment assets (i.e. shares, direct property, share and property managed funds/ETFs) as a percentage of Projected lifetime investment wealth, discussed above.

The focus here is How much investment risk are you comfortable with?. The target or benchmark will differ for each investor. The target asset allocation decision discusses this choice in more detail.

However, for most, we advocate that your maximum risky growth asset exposure when financially independent and/or retired shouldnt exceed a level that would cause you to lose sleep, due to anxiety, and, perhaps, abandon a sound investment strategy in troubled markets. This is generally guided by an assessment of your attitude to investment risk.

The final indicator is the Investment diversification ratio. Its calculated as your diversified investment assets (i.e. your total investment assets less, primarily, concentrated holdings such as investment properties and large individual share holdings) divided by your total investment assets.

The issue this indicator addresses is Have you too many investment eggs in one basket?. Investment theory suggests that concentrated investment holdings offer no expected return premium for their additional investment risk compared with the relevant, well diversified, asset class. Consequently, they arent regarded as consistent with good financial health.

While our benchmark for the Investment diversification ratio is a minimum of 75%, our view is that you should diversify your investment holdings as broadly as you cost effectively can.

The table below summarises the five financial health indicators discussed above and their recommended benchmarks.

Good financial health is revealed by being at or above each of the indicator benchmarks. Youll notice that its not directly dependent on how high your income is or how much youre worth.

While shortfalls on some benchmarks may not be a major problem, the framework encourages you to address the reasons for any divergences.

And, of course, should you fall well short on a number of the benchmarks, the direction of the changes you need to make to improve your financial health, in terms of the framework, should be apparent.

So, hows your financial health?

John Leske is Founder and CEO of finhealth, the provider of an approach to assessing the state of your personal financial health. The article describes a general framework to compare your current situation with some meaningful financial benchmarks. No specific personal financial advice is provided and it is up to readers to determine what actions, if any, they take in response to the article. A more detailed explanation of the indicators can be found in the free eBook, What is finhealth?.

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Five personal checks on your financial health - Firstlinks

Financial abuse is not just confined to older people, and is commonly used in domestic abuse situations.

That's according to Women's Aid, which is to begin training bank staff to help them assist customers who may be subject to financial abuse and coercive control.

Members of the Banking & Payments Federation Ireland (BPFI) will be taking part in the programme.

This will include AIB, Bank of Ireland, KBC Bank, Ulster Bank and Permanent TSB.

It comes as new research found over 20% of young women aged 18-34 do not have control over their finances - and are more likely to rely on others for help with their money.

Despite this, the research found women in this age group are less likely to be concerned that someone might take advantage of them financially - with only 17% expressing concern compared with 27% overall.

Women's Aid CEO Sarah Benson says the problem is more widespread than people think.

"Often when people think about it they think of vulnerable older people, maybe, having their pension or their other income abused - or a disabled person who may be financially dependent on others, having that situation abused.

"But actually financial abuse is an incredibly common - and a remarkably effective - tactic in domestic abuse relationships, coercive controlling relationships.

"What it means is taking control of the finances or reducing the financial independence and autonomy of somebody who is being coercively controlled".

She says this can also be insidious in the context of coercive control.

"It's usually a gradual process, so it might be a merging of bank accounts.

"It can be putting debt in somebody's name - so taking loans or putting mortgages [in somebody's name].

"What can happen then is somebody can find themselves with no money at all, or shackled to a debt that isn't theirs."

Louise O'Mahony, head of sustainable banking with the BPFI, gives an example of indicators for staff.

"It might be where somebody is earning quite a good income, and yet is still falling into debt.

"This is what's known as coerced debt, where their partner might be spending all their money - so they, despite earning a good income, are not able to manage their money.

"Or it might be a situation where... a frontline staff member would be looking at somebody's credit card bills, and they're really over-spending, but the person doesn't seem to know about that.

"That might a flag that somebody else is using their account, and that they're not in control of their money"

And she says some banks are already fielding calls from customers.

"In fact this morning, some of our members have let us know that some people have already called in to call centres in the banks - looking for guidance on how they can help people who might be in this situation."

Anyone affected by issues raised in this article can contact Women's Aid on 1800-341-900

Additional reporting: Kacey O'Riordan

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Bank staff being trained to spot signs of financial abuse - Newstalk

Dear Quentin,

Ive been married for 10 years. We share two young kids and I have two stepchildren. Wehad full custody of his two children during our marriage with no financial support from their mother.

He and I basically paid equally for all our expenses as we had a joint checking account for our paychecks. Truthfully, I always felt I shouldnt be paying for my stepkids.

We started having money issues a few years ago. When they got very bad, my husband opened a new bank account and deposited his checks there with me having no access.

He makes $150,000 a year and I make about $45,000. He paid all the bills for several months. He asked me to pay $900 a month toward our $3,000 rent.

Is this fair? I bring home $2,400 per month. I feel slighted. I guess I also feel bitter because I never felt comfortable paying for his kids. What do you think?

Wife, Mother & Stepmother

Its hard to be a stepmother and help raise your husbands children without contributing to their lives financially. As their stepmother, you are their guardian and hopefully their friend. They are or were part of your household, after all. If you were to divide your expenses and they became aware of that, it would have made them feel like strangers in their own home. Make peace with the fact that you made the right decision to pool your resources.

Its always better to have potentially tricky financial conversations before you move in together. Of course, its never easy to become accustomed to a certain way of doing things and suddenly have it change. You have contributed equally to expenses on a salary that is roughly one-third of your husbands salary, while he paid all of your rent. I understand that it must come as a shock to be asked to pay 10 years down the line. Still, changes happen.

Even given the disparity in your salaries, its hard to argue that you should not contribute to the rent. This should be a negotiation, not a fait accompli. Your combined salary of $200,000 would equate to a quarter share for you. You can think of the money you paid toward his two children as your share of the rent, if it helps sweeten that bitter taste. But expressing your displeasure with those contributions now would be a fruitless task, and only lead to ill will.

I do have concern about the suddenness of your husbands move, and the lack of warning. Is this a prelude to a separation?

That does not mean you cant have a larger discussion about why your husband moved money to a separate checking account when you previously pooled your resources. Changes without any discussion raises a red flag. What has changed in your lives and your husbands sense of financial security? Why did he do this without discussing it? Asking questions and expressing how you feel are more productive ways to explore what, if anything, these changes mean.

I have concern about the suddenness of your husbands move, and what this means about your future. Is this a prelude to a separation? You are a team, and whatever financial insecurity he is feeling due to the problems youve had, you should deal with as a couple together. You have come to rely on this money, and $900 is a lot of money for you. This unilateral action must have come as a shock, and made you wonder about your husbands commitment to this marriage as a united front.

The National Coalition Against Domestic Violence says, Economic abuse involves maintaining control over financial resources, withholding access to money, or attempting to prevent a victim or survivor from working and/or attending school in an effort to create financial dependence as a means of control. Victims and survivors are often forced to choose between staying in abusive relationships and poverty or even homelessness.

Im not sure it rises to that level here, given your financial independence and access to your own funds, but its worth flagging. If, at any time, you feel like you are experiencing financial insecurity as a result of your husbands changes, tell him. If he does not listen, seek professional advice from an organization that helps people who find themselves living in a coercive and/or controlling situation. Bottom line: He should not have done this before discussing it with you first.

Youcan email The Moneyist with any financial and ethical questions related to coronavirus at qfottrell@marketwatch.com, and follow Quentin Fottrell onTwitter.

Check outthe Moneyist private Facebookgroup, where we look for answers to lifes thorniest money issues. Readers write in to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.

The Moneyist regrets he cannot reply to questions individually.

More from Quentin Fottrell:

I live with my girlfriend, 59, who owns several homes and has saved $3 million. I pay utilities and cable, and do lots of repairs. Is that enough?He is the most computer-illiterate person I know: I was my husbands research analyst, caregiver, cook and housekeeper. Now he wants a divorce after 38 years.Our friends always yearned for a relationship like ours: My husband of 16 years left me for another man. I dont want them to live in our properties. What can I do?

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'I feel slighted': My husband of 10 years stopped paying his salary into our joint account and asked me to pay $900 toward our rent - MarketWatch

My friend Connie is a nurse.

She lives in Texas and works with cancer patients, most of whom are veterans.

Its a tough job, both physically and emotionally.

She told me few of her patients ever leave the hospital alive. Its sad, but as she says, Its just the reality of the job.

I cant imagine having a job like that. I dont think I have the emotional strength to deal with all that sadness. I think you just have to be a special kind of person to do that job. And certainly, such a job does pay well. It has to, as there arent many folks who can do it.

While Connies job isnt easy, she earns over $160,000 a year. And just to make sure she doesnt leave, she was given a $15,000 bonus last year completely out of the blue.

So many nurses are getting burned out and leaving the profession entirely that hospitals are bending over backward to ensure more dont quit.

Of course, for those nurses who havent quit and have no intention of quitting, theyre doing really, really well financially.

Connie, a single mom, owns her own home debt-free. She has more than $1 million put away for her retirement and has about $100,000 in a trading account that she uses to play the stock market. She also took delivery of a Tesla Model S last year, which she paid for in cash.

Dont get me wrong Connie works hard and puts in a lot of hours. Shes actually been doing weekend shifts for more than a year nowto help with COVID testing and vaccinations on top of her regular weekly hours.

She told me that she always wanted to be a nurse. Since she was in elementary school, she knew nursing would be her chosen career. But she never expected that such a job (along with some very smart investments) would lead her to financial independence.

But it did, and now her daughter will be going to college next year and plans to become a nurse too.

A smart move, as the supply/demand scenario for nurses will always be in her favor.

Unfortunately, there are a lot of other folks going to college who will graduate with no tangible skills to land them a decent job with decent pay. And I suspect those kids will take out huge loans, be unable to pay them back, and then request that the government forgive those loans, which is really just a fancy way of saying you dont want to pay back your debt.

This is becoming a real problem in this country the idea that if you borrow money but find it hard to pay back, you can just walk away from your debt obligations.

They call it debt forgiveness. I call it theft.

Of course, theft is almost becoming acceptable these days.

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I was listening to the Michael Rapaport podcast the other day when the outspoken actor and comedian talked about how he went to his local Rite Aid to pick up some medicine and watched a man fill up a bag with a bunch of random items from the store and then simply walk right out.

He walked right by the security guard, who did nothing, because apparently theyre not allowed to stop these folks.

Rapaport talked to the pharmacist about what he saw, and she said it happens every single day. Its so bad that theyre actually shutting down that location, and she doesnt know if shell have a job after that.

What kind of world do we live in where we give thieves more rights than hardworking folks who are just trying to make a living?

Theres even a website that details how to be an effective shoplifter, offering rules to follow, such as:

Know your rights?

Imagine being a security guard, catching someone stealing clothes, and then the shoplifter says, I know my rights.

And be a good runner?

This isnt a joke.

Its not funny.

People are losing their jobs.

Communities are losing stores that help bolster property values.

From student debt cancellation to illegal music and movie downloads to consequence-free shoplifting, weve literally normalized theft.

And while I may not know how to fix this problem, I do know that you now have to consider how the normalization of theft affects your investment decisions.

In other words, what kinds of companies can you invest in where the normalization of theft will not have an impact on performance?

Here are a few of my favorites:

These are all companies that will never have to worry about brazen shoplifters or folks looking for debt forgiveness.

And these are all companies that could make you a lot of money this year.

Invest accordingly.

To a new way of life and a new generation of wealth...

Jeff Siegel

@JeffSiegel on Twitter

Jeff is the founder and managing editor of Green Chip Stocks, a private investment community that capitalizes on opportunities in alternative energy, organic food markets, legal cannabis, and socially responsible investing. He has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks. For more on Jeff, go to his editor's page.

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The Normalization of Theft Is Crushing Investors - Energy & Capital

NEW YORK, Feb. 3, 2022 /PRNewswire/ --The Knowledge House (TKH) welcomes applicants to apply for their 2022 Innovation Fellowship - the 12 month intensive program to prepare youth and young adults for technology-based career opportunities in the areas of web development, data science, and design. The Innovation Fellowship provides free digital skills training in coding and design programs through technical training, career support, and a comprehensive network of partners to help disconnected job seekers secure rewarding careers in the tech economy and become financially independent. The annual program will serve young people, ages 14-35, in three (3) major cities -- Los Angeles, CA; Atlanta, GA and Newark, NJ as well as continued programming in New York State. The award-winning nonprofit organization looks forward to accepting 200 new students into their award-winning program by July 1st.

"The Knowledge House is a tech-enabled movement, solving the employment and income disparities in our communities. As the COO, I look forward to building and supporting an agile, and scalable environment, an impact-driven team, and helping build a movement to further our mission," Cyrus Z. Kazi, Chief Operating Officer, the latest member to join The Knowledge House team.

The Knowledge House looks forward to offering hybrid, in-person classes along with their online classes for students in all four cities, especially in Newark with support from BRICK Education Network. "South Ward Promise Neighborhood is excited to enter a partnership with The Knowledge House (TKH) to help close the gap on access to technology for our South Ward families. As we have seen exasperated over the last two years, access to technology is extremely limited and, in some cases, non-existent in many of our South Ward homes. This amazing partnership with TKH will not only bring 21st Century digital resources to our neighborhoods, but will substantially increase the household income of 30 South Ward families by helping caregivers secure employment in the technology and coding fields. TKH is transforming communities through access to opportunities in the digital age." Justine Asante, Director of Partner Operations at BRICK Education Network.

Applications for The 2022 Innovation Fellowship can be found at:http://www.theknowledgehouse.org/apply/

Applicants must be:

To speak with Jerelyn Rodriguez, CEO of The Knowledge House about providing technology based careers for youth and young adults of NYC, Newark, Atlanta and Los Angeles young people in the tech industry, please contact: Kim Wilson Marshall, PR Consultant, [emailprotected] or 646.721.4375

About The Knowledge House (TKH)The Knowledge House (TKH)is committed to taking low-income youth and young adults from unemployment and underemployment to financial independence and stability by providing them with free technical training and professional development services that put them on a direct path to employment in the tech sector. Companies that hire our graduates include Bloomberg LP, McKinsey and Company, DStillery, Citibank, Facebook, and Goldman Sachs.

Since its founding in 2014, TKH has grown to serve nearly 2,000 young people in New York. In 2021, TKH is expanding its programming to serve young people in Newark, Atlanta, and Los Angeles.

The Knowledge House has received generous funding from: NBA Foundation, American Heart Association, Robin Hood Foundation, Microsoft, Bloomberg, Capital One, French Montana, Goldman Sachs, New York Community Trust, Summerfield Foundation and more.

The Knowledge House has been featured in: Blavity, Ebony,Forbes,Crain's New York BusinessWABC "Here & Now"and many other media outlets.

To learn more, visit theknowledgehouse.org/

SOURCE The Knowledge House

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Innovate & Elevate: The Knowledge House Welcomes Applicants for the 2022 Innovation Fellowship - PRNewswire

Some of the 'rules' about mortgages, paying with cash and retirement savings may be worth another look

Traditional financial advice like the kind you got from your parents is often true but even experienced investors might rely on maxims that are outdated and no longer serving your financial well-being.

In fact, quite the opposite, as sticking to adages like "cash is king" (money is more valuable than other investments like stocks and bonds) and "all debt is bad" may be financial relics that you can stand to update.

Here are 5 money thoughts that you can ditch to keep a young financial mind:

1. Pay Your Mortgage Off Early

One rule that may have become obsolete is paying down your mortgage faster than usual. With mortgage interest rates low, there's a good argument that putting that money elsewhere and earning a higher return over time may be a better bet than paying down your mortgage early. "Trying to decide between eliminating debt and investing for the future can be a difficult decision," says Jason Laux, retirement advisor atSynergy Group, a retirement planning firmin White Oak, Penn.

"Saving and investing for retirement is going to offer you a better return over time."

"But mortgage debt isn't always a bad thing. If you put off saving for retirement in order to pay off your mortgage early, you may end up house rich but cash poor," says Laux.

Instead, prioritize your personal finances. Use any extra money to max out contributions to your 401(k) or IRA. "Saving and investing for retirement is going to offer you a better return over time," Laux says.

2. Cash is King

Over the long run, holding significant amounts ofcashensures that you'll suffer significant lost opportunities, explains Robert R. Johnson, professor of finance at Heider College of Business, Creighton University, and the co-author of "The Tools and Techniques of Investment Planning, Strategic Value Investing and Investment Banking for Dummies."

He explains that when it comes to building wealth, you can either sleep well or eat well. If you invest conservatively, you sleep well because of little volatility. But it doesn't allow you to eat well because your account won't grow large enough to keep you well-fed.

According to data compiled by Ibbotson Associates, large capitalization stocks (think S&P 500) returned 10.3% compounded annually from 1926 through 2020.

Over that same time, long-term government bonds returned 5.5% annually and T-bills returned 3.3% annually.To put it in perspective, $1.00 invested in the S&P 500 at the start of 1926 would have grown to $10,945 (with all dividends reinvested). That same dollar invested in T-bills would have grown to $21.71. "The surest way to build wealth over long-time horizonsisto invest in a diversified portfolio of common stocks," says Johnson.

3. You Must Have a Financial Advisor

Twenty years ago, if you had disposable income, you gave it to a financial advisor, who invested your money into safe, boring vehicles earning roughly 7% 10% per year, explains Stefan von Imhof, CEO of alts.co, one of the world's largest alternative investing communities. "Today, retail investors are increasingly shunning financial advisors, and managing investments themselves."

Imhof explains that a decade ago, 57% of households with $500K+ in net worth and a prime earner under 45-year-old had an investing style considered "mostly self-directed." By 2019, that number has shot up to 70%.

"New generations are self-educating and taking on higher levels of risk to get higher returns," says Imhof. They look to invest in alternatives, which usually aren't an option with mainstream advisors," he says. Today, managing your portfolio on your own or with light guidance from an occasional financial check-up with a professional may be the preferred way to go.

4. Contribute 10-15% Toward Retirement

"Sure, this advice will work for someone who plans on working until their mid to late 60s," says Ty Jones, a personal finance and retirement blogger who blogs at AskTheSavingsGuy, a Financial Independence Retire Early (FIRE) advocacy blog, "but if you want to retire in your 50s, you'll need to save much more aggressively."

By saving 25% of your income, a 30-year-old with no retirement savings could reach their retirement goal by age 55 instead of age 63, which is what it would be if they were to contribute only 15% per year based on the 4% rule and assuming an 8% return. Bumping up your 10% percent retirement savings to 20 or 25% can ensure both a more robust retirement portfolio and allow for earlier retirement, explains Jones.

5. Stick to the 4% Retirement Rule

This rule says you can spend 4% of your retirement funds annually and not run out of money. Johnson says, research, most notably by WadePfauof The American College of Financial Services, shows that while historically that rule of thumb worked in the United States, the current environment of low bond returns increases the likelihood that retirees may well run out of money if that ruleisapplied going forward.

Originally posted here:

5 Money Thoughts That Might Be Aging You - Next Avenue

Image source: Getty Images

Your financial independence depends on your ability to generate more passive income than your cost of living. Unfortunately, the cost of living is rising rapidly. Meanwhile, dividend and rental yields are declining. The typical rental property in Canada is likely to be cash flow negative, while dividend stocks pay 2-3% on average.

These unfortunate circumstances have pushed some investors to take on more risk. Risky tech stocks, Decentralized Finance (DeFi) products, and volatile alternative assets have become more common in the hunt for passive income. However, there is a better way. Here are two unconventional strategies that can help you boost your passive income while mitigating risk.

Most major banks and investment platforms will allow you to implement a systematic withdrawal plan. The plan allows you to sell a predetermined portion of your stocks every year to take some profits off the table. In other words, you get to tap into capital gains to boost your passive income.

For this to work, you need to focus on a blue-chip dividend stock with a healthy and predictable rate of growth. Fortis (TSX:FTS)(NYSE:FTS) is an excellent example. The utility giant experiences steady growth as Canadas population expands and electricity consumption increases.

The stock has delivered a 43% return over the past five years, which is a compounded annual growth rate of 7.4%. If you implemented a systematic withdrawal plan of 3%, you could boost your passive income without eroding capital over time. Coupled with the dividend yield (which is 3.6% right now), you could have doubled your total cash flow from this investment.

In the years ahead, the Fortis team expects to expand earnings by 4-6% annually. That means its still an excellent candidate for a long-term systematic withdrawal plan.

Heres another niche strategy to boost passive income: covered calls. This strategy involves writing call options on stocks that you plan to hold for the long term. It allows you to hold onto your stock, collect dividends, and also collect the premiums paid by traders over time.

Now, implementing this strategy by yourself could get complicated. Youll need to buy stocks and write call options independently, which isnt recommended if youre a beginner. Luckily, theres a more convenient option covered-call exchange-traded funds (ETFs).

The ETFs trade like regular stocks but offer a much greater yield than their vanilla counterparts. For instance, BMO Equal Weight Banks Index ETF, trading under ticker ZEB, and BMO Covered Call Canadian Banks ETF, trading under ticker ZWB, both focus on Canadian banks. But the former offers a 2.9% dividend yield, while the latter offers a 5.4% yield. Thats a large difference, based on a simple options strategy.

If youre bullish on Canadian banks but also want to boost passive income, switching from ZEB to ZWB could be a savvy decision.

Simple strategies like covered calls and systematic withdrawal plans can help you boost passive income without raising risk exposure.

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2 Little-Known Tricks That Could Boost Your Passive Income - The Motley Fool Canada

Londoners, like everyone else in the UK, have slowly grown accustomed to life outside the EU, but a handful of residents have developed their own vision for the future. Hamish Stewart is one of a growing number of people in the capital who would like to see London become an independent city-state.

He runs an advocacy group called London Independence that envisions an independent London, free from the "shackles" of the rest of the UK, regaining its place in Europe. Speaking to MyLondon, Hamish shared some of his ideas to see London achieve greater autonomy and gradually reverse some of the after-effects of Brexit.

READ MORE: New Brexit rules that could leave people unable to go on holiday

Since Brexit, weve seen increasing food prices and challenges in the labour market, which has made life for people and businesses in London all the more challenging," he said.

London has always been a European capital and I think anyone in London understands that putting that at risk and damaging the personal and professional links with Europe is a problem.

Hamish says that public consciousness in regards to an independent London started in 2016 after the Brexit referendum, in which the majority of Londoners voted for the UK to stay in the EU.

He underlines that London wanting independence is not to suggest that theres a problem with the rest of the UK, but is simply to suggest that London is a European city that needs to have an independent relationship with Europe as well as greater financial autonomy, much like the Channel Islands and Gibraltar.

However, he describes London one day being a member of Europe as a city-state as the ideal outcome, citing examples of other micronations in the EU like Luxembourg and Malta.

On that note, Hamish abstains from dictating the exact direction London should take in its reintegration into Europe, explaining that countries like Norway and Switzerland, which arent part of the EU but are participants in the European Economic Zone, could also be taken as models.

He added: One rhetorical question we would ask is, why wouldnt Londoners and London want to be part of Europe as a city-state, with the same levels of autonomy as Norway or Switzerland might have, or some of the other participants in the European Economic Zone who are not full EU member states but still enjoy the freedom of movement of goods and people?

Thats a question weve asked London MPs and the Mayor and the London Assembly. Are there reasons why London shouldnt have more of an independent relationship with Europe as a city-state?

"And then the question becomes, what membership model do you want to pursue? Thats a conversation we think should be happening now.

Asked what an independent London would look like, Hamish answers: The borders of an independent London are there to be negotiated on. I mean, the M25 is already there, but there could be discussion on bringing in some of the home counties as well.

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He adds: We think the M25 can be converted into housing and a new park, and that would be our soft border with the rest of the UK.

The advocate also says London would have its own independent government based in the County Hall and more control over things like immigration and tax policy, as well as a property tax that would help to alleviate problems relating to unaffordable housing.

Hamish does not think London would need to prioritise having its own standing army as he believes being part of Europe would allow the city to benefit from collective security.

He also does not anticipate a hard exit from the UK, as he argues that the rest of the UK will be better off with a healthier, independent London that has a positive and productive relationship with Europe.

I think the relationship with the UK would be determined by who leads the transition to a city-state. Its about leadership and negotiation, he said.

Of course, London would have a mutually respectful relationship with the rest of the UK. As a city-state in England, London will still be reliant on the UK for its manufacturing base and food supply, and everything else we already participate in, so its just about political and financial autonomy.

But there is one catch. Hamish says an independent London would be a republic with a written constitution, meaning no more monarchy.

The land the Royal Family owns in London could be put into a trust and they could move to one of their castles outside of the city.

Nevertheless, Hamish believes that is a price most Londoners would be willing to pay to retain their connections with Europe and greater control over where their tax money is spent.

For most Londoners, keeping a personal and professional relationship with Europe is very important and so is respect for international law, and human rights law. On that basis, I would ask Londoners what future do you want to participate in, and what future do you want to contribute to as a taxpayer, as a member of society?

On basic terms, if you want to have public services like public education, the health service, water utilities and energy system run in a way that reflects the wealth that is present in London, there needs to be greater local tax powers and fiscal independence.

He concludes: That will only happen with a push to break away from the central government.

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Campaigner wants London to become its own country with housing built on M25 to create border - My London

CHICAGO, Feb. 1, 2022 /PRNewswire/ --RLM, a leadingfull-service integrated marketing and communications advertising agency, today announced that the company will be making an even greater commitment to helping women and girls in their local community, as well as throughout the U.S. and abroad. As such, to demonstrate this commitment, RLM is unveiling its new social impact program called the RLM Reading Nook Initiative.

Through the RLM Reading Nook Initiative, RLM will be making a five-year commitment to partnering with organizations who prioritize reading, and who are committed to ensuring all future female leaders have access to books and education. These organizations are purposeful about empowering girls with the freedom that comes from having access to books that deliver literary and educational insights that are needed for their success.

Furthermore, this five-year commitment will result in RLM raising and/or donating $500,000 (half a million dollars) in literacy education and hard materials to girls across the globe.

"We are so excited to bring education, access, freedom and ultimately, financial independence to thousands of future women across the globe," said Farissa Knox, CEO and Founder of RLM. "As a black female business owner, author and avid reader myself, I know how important it is for us to support young black girls and women specifically, as well as all other girls and women, on their future pathway towards success."

RLM will kick off their first community project by launching a book drive and fundraiser with a goal of donating 200 books and $100,000 in 2022. For every book that is donated, the company will match it with $5, and all books and funding will go to RLM's annual charity of choice.

This year's first charity of choice will be an organization calledRoom to Read. The Room to Read program focuses on helping children in low-income communities by bridging the gap in child literacy. They also focus their efforts on giving girls the books and tools they need to learn so that they can advocate for themselves.

RLM invites everyone to join them in their efforts to support literacy in women and girls, by donating books at their downtown Chicago offices, have them picked up by an RLM representative or donate monetarily online by going here.

To learn more about RLM Media visit https://rlm-media.net/ or schedule an in-office drop off here. Alternatively, you can call (773) 572-8797 and a representative will pick up books from you.

Contact:Emerald-Jane Hunter4704265920[emailprotected]

SOURCE RLM Media

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RLM Launches New Community Impact Program Designed to Help Women and Girls Both Locally and Around the Globe - PRNewswire