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My Thoughts on Climate Change

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There’s no doubt climate change is a problem and this post isn’t going to be me grandstanding about the dire consequences of no action, and it certainly won’t be refuting that climate change is real. This post will specifically be about what I think the free market will do to fix it and what us ordinary people can do to contribute positively to the situation.

Now I have to admit, when it comes to understanding climate change and acting in a fashion that would make some sort of positive impact on our current direction, I’ve taken a more laid-back approach.

I was annoyed by both sides of the argument as I felt they were both taking an extreme stance (shocking right?). Also, I feel like humanity has a beautifully unique ability to figure things out when it’s necessary.

If you want to learn more about the evidence and facts surrounding climate change, here are two sources – Climate.NASA.gov and Climate.gov.

Tech Meets Climate Change

There are a plethora of inventions, some being used right now and some still in the works, that will help fight climate change. Because there are so many and I want to spotlight as many as I can that seems like a good idea, I’m going to organize them in a few ways.

Alternative Energy – Massive palm tree wind farms, future iterations of solar panels, kinetic pavement, new power transfer technologies, nuclear fusion.

Save the atmosphere – Drone that plant trees, satellites that spot methane leaks, giant vacuums to clean carbon from the air.

Save the environment – pumps that cool coral reefs, plastic eating enzymes, encourage phytoplankton to grow using technology, futuristic agriculture, protect bees.

Uncategorizable – genetic modification, solar geoengineering.

What can you do?

Like I said in the beginning, climate change is a problem, but human beings are smart enough and innovative enough to find solutions to fix it. In the meantime, there are some things you can do to help.

  • Have an energy audit
  • Change your light bulbs to LEDs
  • Replace HVAC filters frequently
  • Wash clothes in cold water
  • Upcycle furniture
  • Recycle clothes
  • Unplug electronic devices when not in use
  • Obsess over every drop of water
  • Recycle
  • Hand dry your clothes
  • Reduce food waste
  • Don’t drink bottled water
  • Carpool or take public transportation

There are a lot of things you can do to make an impact. If everyone contributed a little to the cause, maybe we can move the needle.

Related reading:

Technological Investment Opportunities

Why Financial Literacy Is Important

Sources:

Globalcitizen.org

BBC.CO.UK

Archive.curbed.com

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Understanding 15-Year vs. 30-Year Mortgages in the USA

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When you buy a property in the USA, you can often have a say on the duration of your mortgage. The two most popular mortgage duration terms in America are for 15 and 30 years.

Thirty-year mortgages are considered the gold standard and are the prime choice for most first-time homeowners. But recently, 15-year mortgage terms have started to gain popularity among homeowners – especially amongst high earners.

Both 15 and 30-year mortgages have their own set of benefits and downsides. For that reason, it is important to know which mortgage is right for you as making the wrong decision will leave you with pretty severe long-term consequences. At the end of the day, it’s best to talk to a mortgage broker like Breezeful to help you make the right decision.

What is a mortgage?

A mortgage is a loan borrowed from a lender (usually a bank) that allows the buyer to purchase a property. In a mortgage, there are two main components: principal and interest. Principal refers to the total amount of the loan, while the interest refers to the additional amount the lender will charge for the privilege of borrowing the money.

On top of those two components, other factors to consider are the term of your mortgage and the annual percentage rate (APR). A mortgage term is how long you’ll be paying off the mortgage while the APR assesses the total cost of the loan – taking interest rate and other fees into account.

When it comes to repaying your mortgage, your monthly instalments will be heavily influenced by the mortgage term, amount of money you borrowed, interest rate, and more.

What are the differences between 15-year vs. 30-year mortgage?

In a 15-year mortgage, the main disadvantage is that you will pay much higher monthly instalments. This is because you will need to repay the loan quicker (within 15 years).

The main benefit of a 15-year loan is that you will pay a lot less money in interest, the additional money the bank charges every month for lending you the money.

On the flip side, on a 30-year mortgage you can expect lower monthly payments, but the interest will be a lot higher.

When to get a 15-year mortgage?

Fifteen-year mortgages are best for individuals who have a larger down payment and are either borrowing a smaller loan or have a very high-paying job (provided you want to take a 15-year mortgage on a larger sum of money).

On a 15-year mortgage, you will be paying a lot less interest on your loan.

Advantages of a 15-year mortgage:

  • Lower interest rates
  • Shorter timeframe forces you to repay your loan quicker

Disadvantages of a 15-year mortgage:

  • Higher monthly payments
  • Less money goes into savings or retirement
  • Can’t borrow as much money

When to get a 30-year mortgage?

The monthly payments on a 30-year mortgage will be much lower, and you might be able to get more end-of-year tax benefits, which will ultimately save you money on your tax bill. Luckily, regardless of the state that you live in, you can take advantage of those benefits. On the downside, because long-term loans are riskier than short-term loans and cost banks more, 30-year mortgages usually have higher interest rates.

Advantages of a 30-year mortgage:

  • More tax benefits
  • Lower monthly payment

Disadvantages of a 30-year mortgage:

  • Higher interest rates
  • Subsequently, you end up paying more in the long run

Can I get the best of both worlds?

If you decide to go for a 30-year mortgage, that doesn’t automatically mean that you will have to repay the loan and the interest back in 30 years. If you start making more money during your mortgage term, you can start throwing your extra income at your loan.

By paying off the loan sooner, you can reduce your mortgage term and subsequently the interest on the loan.

Getting a mortgage is a great way of buying a home without having all of the capital upfront. On top of that, getting a mortgage will also mean that you can save a lot of money on your end-of-year tax returns. While borrowing money from a lender means you will have to pay interest on your loan, you have a lot of flexibility in regards to the type and the duration of the mortgage that you want to get depending on your current circumstances.

6 Costs Involved in Moving Abroad

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Moving to a new country is exciting and can be a completely life-changing experience. With so much to plan and organise before the big move, it’s natural that certain things might slip your mind. Because of this, it’s important to have a clear idea of everything you need to do and more importantly – everything you need to budget for. Planning your finances as meticulously as possible will help you to manage the blow this event will have on your bank account. We’ve rounded up some of the most important costs to keep in mind while you’re saving up for your immigration.

The Travel

With all the moving considerations, documents and other stresses to be managed, many people have the tendency to slip up on… the actual travel itself. You’ll want to think about things like your flight tickets, renting cars when you arrive at your destination, a hotel in case you don’t have a home to move into just yet, and the important factor of travel insurance. If you have older family members moving with you, you’ll want to check out the best travel insurance for seniors.

The Moving

You’ll also want to consider the moving of all your things – hiring an international moving company is a big financial commitment and you’ll want to make sure that you get quotes from various companies to find the best possible deal. Try to do this early on so that you’re financially prepared and have some time to save up since this is a large expense. These costs can vary depending on how much stuff you have and how far you’re going, so keep this in mind when you’re packing and deciding on what will stay and what will go. If you’re moving all your belongings across the world, shipping insurance is another cost you’ll want to keep in mind and factor in for a safe trip for all your stuff.

Packing and Unpacking

This is an additional feature for many moving companies and might not be factored into your main quotation for the move. You’ll need to consider whether or not you’ll want to hire assistance for the packing and unpacking portion of your move, or whether you’ll decide to be brave and do it on your own. In this case, you’ll want to consider the members of your household and how much time you’ll have to handle the packing and unpacking processes amidst everything else going on. Having packing assistance also contributes to the legal system when you’re moving – if you don’t have a moving company to affirm that you’re not shipping anything illegal, you might be expected to leave all your boxes open to be inspected.

Documentation

Keep in mind that you’ll have to apply for some documentation – a visa for starters – and even reapply for some things you might already have. Renewing your passport is one example. Visa fees can come to quite a hefty sum, depending on where you’re going, so try to find out what this will cost ahead of time. You might also be interested in hiring an immigration lawyer to assist you with all your docs, in which case you’ll need to consider legal fees as well. It’s an additional item on the budget, but it can make the stress and management of the process a whole lot easier to handle, especially if you’re facing uncertainties.

Storage Costs

Coordinating your moving dates can be a nightmare. The dates when your stuff gets shipped off, when you leave for and arrive in your new country, when your stuff arrives and when your home is ready to be moved into, seldom coincide precisely. This means that you will very likely need to factor in some storage costs for your things for a period of time. Planning your dates well in advance can help to minimise the amount of time your belongings will spend in storage, and thus keep your costs to a minimum, so try to plan everything as thoroughly as you can and as early as possible. Keep in mind that in a big move like this, not everything will go according to plan, so you’ll need to be slightly flexible.

Your New Home

Even simply moving down the street can often involve a whole lot of expenses – and even some unexpected ones. When moving abroad, you’ll need to consider the typical moving costs as well for your new space. This can include hiring cleaning services for before you move in, any potential repairs or alterations that need to be made, fixing up garden spaces and even buying new furniture or décor to fill up extra space (or simply different space) that you hadn’t accounted for. Your move might entail a downscale or an upscale in which you might need to swap our furniture pieces for something more appropriate or purchase extra storage space to account for less built-in cabinetry.

How to Get More Money When Interviewing For a New Job

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get more money when interviewing for a job

Salary negotiations are a common part of the job search process. Knowing how to handle the conversation is essential, especially if you want to ensure that you get a fair pay rate. If your goal is to get top-dollar for your skills, here’s what you need to do to get more money when interviewing for a job.

Handle Research in Advance

Before you head to the interview, you need to have a solid grasp of your worth and the going rate for that position. If you can find salary details for that exact role at that specific company, then that can serve as an ideal starting point. However, you should also explore jobs at competitors that require the same skill set and experience level. That way, you can determine if the pay rate aligns with industry norms in your region.

Factor in Benefits

During the research phase, it’s also smart to assess the kind of benefits you’d likely receive if you are offered the job, including their overall value. In some cases, a lower salary may be worthwhile if the benefits package is stronger than what you’d find elsewhere.

Essentially, you want to examine total compensation. That way, you can determine what pay rate is appropriate based on what else you’d receive.

Don’t Jump the Gun

While you might want to ask questions about the salary during your job interview, don’t jump the gun. Compensation discussions aren’t usually appropriate in the early stages of the hiring process. If you start inquiring about pay too early, that could rub the hiring manager the wrong way. If that happens, you may end up losing out on the job.

In most cases, your best bet is to wait for the hiring manager to begin the compensation discussion. At times, it may be a good idea to wait even longer. For example, if the hiring manager asks about your salary expectations very early in the interview, you may not have enough information about the job yet to respond comfortably.

If that’s the case, try delaying the conversation by letting the hiring manager know that you’re looking for a competitive salary but would need more details before you could confidently share a number. After that, you could ask a question that showcases the kind of information you need and see how the hiring manager responds.

Avoid Giving the First Number

Once the salary topic is broached, it’s often best to avoid giving the first number. For example, you could state that you’re familiar with industry norms and are comfortable in that range. Then, you could ask the hiring manager to provide you with the company’s salary range for the role.

In some cases, the hiring manager will give you some initial compensation details. However, they may also push back. If the latter occurs, then you may have to provide the first number to ensure you don’t seem combative.

Offer a Range Instead of One Number

When it comes time to share a number, go with a general range instead of a specific figure. For example, using something like “the mid-50s to the upper 60s” leave a lot of room for additional negotiating.

Use your research to determine what kind of range is appropriate based on industry norms in your area. Additionally, you can also hedge slightly by adding, “depending on the job’s exact responsibilities.” That little bit extra gives you more room, especially if you do not yet fully understand the details of what the job entails.

You could also say that the range is also dependent on the value of any benefits. This could be a great option if you are open to a lower pay rate if the total package brings enough to the table and you don’t know all of the benefits-related details yet.

Justify Your Position

When you share a number, it’s wise to justify your position. Citing research regarding typical salaries for similar roles in the area is a solid option, as it shows that you understand the local job market. You can also highlight the value you bring to the table, showcasing relevant accomplishments that genuinely demonstrate your skills.

As you justify your position, avoid bringing personal details into the equation that aren’t relevant to the hiring manager. For example, family size, plans to buy a home, or anything similar have no bearing on the conversation, so it’s best not to bring them up.

Stay Open-Minded

It’s important to remember that salary negotiations can head in many directions. If you’re genuinely interested in the job, stay open-minded. You may be able to use different approaches that ultimately get you to the number you want, though it may not happen right away. For example, you may be able to schedule pay increases that are tied to certain performance metrics in advance or negotiate for a higher performance bonus rate.

Similarly, you may be able to add in benefits or perks that increase the value of the total compensation package sufficiently to make a lower pay rate worthwhile. This could include more paid time off, access to tuition reimbursement or student loan assistance, or other additions.

By staying open-minded, you can explore alternatives with greater ease. That way, you increase your odds of ending up with fair total compensation based on what the job requires.

Know When to Walk Away

While everyone hopes that they can negotiate their way to a great salary, that won’t always happen. In some cases, companies simply aren’t prepared to offer what’s typical in your area or don’t have other forms of compensation that would ultimately meet your needs.

If you and the hiring manager are at an impasse, then walking away may be your best bet. Accepting a job that doesn’t meet your needs usually isn’t a great idea, and you may be better off if you continue your job search and find something that brings what you need to the table.

If you decide to remove yourself from contention for the position, do so in a polite, professional manner. That way, if another opportunity at the company that can meet your needs comes along, you won’t have burned a crucial bridge.

Do you have any other tips that could help someone get more money when interviewing for a job? Share your thoughts in the comments below.

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What Does an Increase in Yields Look Like?

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I’m not going to lie. I had a lot of trouble coming up with the substance for today’s article. There have been developments since I wrote two weeks ago, but that hasn’t really changed some of the things I’ve said before. I still see inflation as a problem and I still see investment opportunities in a select few areas. What does an increase in yields mean?

The Federal Reserve

The one new piece of information that is worth noting is that the FED has indicated that if the information supports their narrative, they will decrease their asset purchasing program later this year.

That’s a very significant piece of news and the market knows it. Yields increased immediately, only by 7 basis points, or .07%. That may sound like a small move, but in a couple of minutes, that’s HUGE.

Covid

Two weeks ago I mentioned the possibility of mask mandates and stay-at-home orders. I thought that the Delta variant was causing enough worry and panic that this could happen.

In the United States, we have not seen any stay-at-home orders, but we have seen mask mandates and vaccination requirements. Outside of the U.S., however, we have seen a crackdown on domestic and international travel.

There’s a possibility that we see more stay-at-home orders as the Delta variant continues to spread and increase the number of Covid cases.

Investment Implications

With the threat of inflation becoming more poignant and stay-at-home orders becoming more likely, what are the investment implications?

When it comes to inflation, the short-term effects will be much more dramatic and noticeable than the long-term effects. I think a rise in inflation and a drying up of liquidity will have broad, negative effects throughout the financial system.

An increase in yields will cause bond prices to drop. An increase in yields will make servicing that debt more expensive, so it’s likely R&D spending will go down. It could also negatively affect sectors that rely on borrowing.

There’s also a chance that people will save more. An increase in yields means the interest rate for their savings account will go up, making saving more attractive. If you want to save, try signing up to Digit.

An increase in yields could also cause a migration from “riskier” assets to assets deemed less risky.

Only time will tell what inflation will look like, how the FED will respond, and what the implications will be.

Related reading:

The Resurgence of Covid and What it Means

Investment Concerns and Opportunities

What’s the Federal Reserve Going to Do?

Why Financial Literacy is Important

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

The Resurgence of Covid and What it Means

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In today’s post, we’re going to talk about the investment and economic implications caused by the resurgence of Covid-19 due to the delta variant. Supply and logistics changed dramatically last year when parts of the world shut down. Delivery times slowed down and costs increased because of lack of supply and disrupted logistics.

We started to see a recovery. Supply issues started to resolve themselves. Supply chain constraints started to get better. Costs for items (due to chip shortages and increases in energy prices) started to level out.

So what’s going to happen if we have a resurgence of Covid and things shut down, or slow down, again?

The Federal Reserve

Like everything, only time will tell. The FED gave a little glimpse into what their plans were for interest rates and quantitative easing at the last meeting. They state that if the economy continues to improve as it has been, they might reduce their balance sheet and consider increasing interest rates by the end of 2023.

If the delta variant causes enough of a disruption, that could push back their timeline for ending/implementing such a plan. In either case, they’ve stated that they will continue with easy monetary policy for the foreseeable future, even if inflation starts to run hot.

Commodities

If the risks around Covid-19 continue to present themselves, we’ll continue to see moves in important items, including the US Dollar, Gold, Treasuries, Yields, and Oil.

In risk-on environments, the USD, gold, and Treasuries typically increase in value. Yields usually will go down as well. The only X-factor when it comes to economics and commodities is oil. The change in the price of oil is very different this time because of travel restrictions and stay-at-home orders.

Oil

Demand for oil went straight down, so oil prices went down. Major oil producers needed to then reduce production to decrease supply so prices could recover. Then demand started to pick up and oil prices quickly came back so production needed to increase to level off prices.

With all that said, oil prices and the major producers’ production will be range-bound for a while. The delta variant is causing too much worry to peg a direction for oil in the near term.

Long-term, I think oil will recover to pre-pandemic levels for a little while, but as electric vehicles and renewable energy become more commonplace, I think demand will dry up. Then prices will go down as a result. How much the price of oil goes down, only time will tell.

Investment Opportunities

If there’s a resurgence of Covid or not, there are a few opportunities I think will transcend the short-term volatility, and I’ve talked about them before. Clean energy and healthcare. I think both of these industries, in terms of runway, are in their infancy.

Healthcare has come so ridiculously far over the years, but I feel there’s so much room to run yet. Clean energy is just getting started. With countries and companies vowing to reduce carbon emissions to zero over the coming years, or decades, there will be rapid advancement in this sector.

Related reading:

Investment Concerns and Opportunities

What’s the Federal Reserve Going to do?

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Is It a Good Idea to Be a Salaried Employee?

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When it comes to compensation at your job, there are usually two possible options. You are either hourly or salaried. In many cases, the company dictates which applies to your position. Meaning, you don’t necessarily get to pick what you receive for a specific role. However, by knowing the differences, benefits, and drawbacks, you can figure out if one approach meets your needs better than another. Then, you can use that during a job search. Thus, focusing on positions that provide what you’re after. If you’re wondering whether it is a good idea to be a salaried employee, here’s what you need to know.

Salaried vs. Hourly: What’s the Difference?

The main difference between salaried and hourly jobs is how you’re paid. In a salaried position, you’re paid a set amount each pay period, such as every week, two weeks, or month. The number of hours you actually work doesn’t necessarily factor into the equation, barring certain exceptions.

For example, you may be required to work a certain minimum number of hours each workday or workweek if you want to keep your pay for that period at its usual level. Otherwise, you might have to use paid leave if you’re going to be absent or fall below the requirement.

With hourly work, you’re paid based on the exact number of hours you work. Your pay rate is listed as “per hour,” so the number of hours you work impacts your paycheck each pay period. You may be given a schedule in advance, but your job may not be dependent on working a minimum number of hours on a weekly or per-pay-period basis.

The Benefits of Being a Salaried Employee

As a salaried employee, you get a level of financial security. You know how much you’re earning, and the amount tends to be reasonably consistent.

Additionally, salaried employees usually receive additional benefits, like medical and retirement. Paid leave is more common here as well.

Finally, salaried positions tend to be more career-oriented. You might have more chances to learn, grow, and develop, which could make it easier to advance into higher-paying roles.

The Drawbacks of Being a Salaried Employee

The biggest downside is that salaried employees aren’t always eligible for overtime. If you work more than 40 hours per week, you don’t get additional money in your check.

Additionally, since there isn’t overtime pay, there can be additional pressure to work long hours to accomplish certain objectives. While this isn’t always the case, when it happens, it can make the environment more stressful.

Is It a Good Idea to Be a Salaried Employee?

Whether becoming a salaried employee is a good idea for you depends on your needs and preferences. If you’d rather have a set paycheck, access to benefits, and more opportunities for growth, that may make not earning overtime worthwhile.

However, if you’d rather be compensated for every hour you work or experience less pressure to stay at your job beyond your scheduled time, salaried jobs might not be a great fit. Hourly might give you the flexibility you’re after, allowing you to clock out at the end of the day with less stress.

Do you think it’s a good idea to be a salaried employee? Why or why not? Share your thoughts in the comments below.

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Refinancing Your Car-Here are The Pros and Cons

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pros and cons of refinancing your car

At some point, many people think about refinancing their car loans. In some cases, it can even look like a great deal. The issue is, refinancing your car comes with pros as well as cons. If you’re wondering whether you should move forward, here’s what you need to consider.

The Pros of Refinancing Your Car

Usually, the pros of refinancing your car are easy to see. One of the biggest is that you may be able to secure a lower monthly payment.

When you refinance, you get a chance to choose a new loan term. If you extend out your repayment, you can shrink how much you have to put toward your loan each month.

Second, you might snag a better interest rate. Auto loan rates are lower now than in many previous years. Additionally, if your credit score went up, you may qualify for something better than you were eligible for when you made the initial purchase.

With a lower interest rate, you might be able to spend less in interest and secure a lower monthly payment. In some cases, you can even reduce your payment all without extending your repayment term, thanks to a rate reduction.

Finally, if you refinance your car loan for more than you owe, you may be able to use that extra cash for something else. This may help you with a financial emergency or let you handle something that’s otherwise unaffordable, like a car repair or home improvement project. However, this only works if you have enough equity.

The Cons of Refinancing Your Car

Refinancing your auto loan can come with drawbacks. First, you may have to pay several fees to secure a new loan. In some cases, the fees are sizeable enough to offset any interest savings you may capture or may cause you to pay more than you would have with your old loan.

Additionally, extending out the repayment term could lead you to pay more over the life of the loan in interest, even if you secured a rate reduction. For example, if you have $8,000 left on your loan, a 9 percent interest rate, and 36 months on your current term, you’ll pay $1,158 in interest during the rest of the repayment period.

If you refinance that $8,000 at 6 percent but extend the repayment over 60 months, you’d pay $1,280 in interest. That means you’ll actually spend more in interest, all while having the loan hanging over your head for longer.

Also, refinancing may impact your credit score. Hard inquiries can cause your score to fall, as well as lowering the average age of your accounts, both of which usually happen if you refinance.

Finally, refinancing could mean you’ll be upside down on your loan for longer. If that’s the case, even if you have insurance, you may not get enough to pay off your loan if your car is totaled. That can create a serious hardship.

Is Refinancing Your Car the Best Move for You?

Ultimately, whether refinancing your car is a smart move depends on your situation. Consider the pros and cons carefully. Then, make the choice that best meets your needs today and over the long term.

Can you think of any other pros and cons of refinancing a car? Share your thoughts in the comments below.

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How Not to Lose Your Money While Renting an Accomodation: Deceptions and Tricks

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It seems there is nothing special about renting accommodation since many people live this way for ages. You just need to find a suitable dwelling and sign a contract. However, often this process involves various pitfalls, and a person faces high chances to be left high and dry in the end. Of course, it is not the only possible scenario, and renting is not always a waste of money. People rent accommodation for different reasons. While someone cannot afford to buy their own apartment, others don’t want to tie themselves to one place forever. Renting is especially popular among young people since many move to another city to study and need a place to live. In most cases, they don’t plan to settle there and seek freedom of movement, so renting looks like the best option possible. Many students share accommodation with groupmates and have an aside job to cover expenses. It is when a speedy paper promo code comes in handy and helps save a penny. If you don’t want to spend a fortune on your accommodation, you should follow some useful tricks and tips. [Read more…]