Trey LaRocca

Why It’s Getting Harder for Older People to Get Life Insurance

July 9, 2020 By Trey LaRocca Leave a Comment

The coronavirus pandemic has made waves in pretty much every industry. Life insurance, being an industry that thrives on interest built on their cash reserves, is no exception. Not only that, but there are obvious health risks that make it harder to get life insurance right now. For older people, life insurance being hard to get is nothing new, but it is somehow getting even more difficult. There are many different factors that go into life insurance eligibility; to make sure you are properly educated to prepare for your future, let’s discuss life insurance for older people. Namely, why is it becoming even harder to get?

Health Risks

With the presence of a global pandemic, risk for life insurance companies has shot up across the board. Compound this with COVID’s tendency to be extremely aggressive for older folks, and you have a big problem for the elderly. This makes it far more likely, as long as the pandemic persists, that life insurers will be paying out to the families of older policyholders. Just like any other form of insurance, an increase in risk typically comes with an increase in price. As a result, it is more difficult to afford. Insurance companies also tend to be stricter when it comes to eligibility, and life insurers are notoriously thorough.

Interest Rates

With the current state of interest rates, and the federal reserve constantly shrinking them, income for life insurers is dwindling. One of the major income sources for these companies is the interest they are able to make on the money they hold. When you shrink a major income source, risk inherently grows. Their ability to recover from losses, as well as their ability to absorb them in the first pl;ace, are put in jeopardy. This means that they will have to become stricter in order to stay afloat. Raised prices aren’t a surprise either, as they need to compensate for lost income in order to cover their current liabilities. Insurance companies are intricate beasts, and money can be lost at every turn. So, it makes sense that they are having to compensate heavily, at least for the time being.

Uncertainty

The biggest issue for insurance companies is not knowing what to expect. While risk is inherent, they are constantly looking for ways to minimize it. So, the issues aren’t just the massive global pandemic, and the extremely low interest rates; the issue lies in the fact that we don’t know when either will end. These companies have to be aggressive out of the gate, because they don’t want to be left bankrupt because they were optimistic. These issues are temporary, but how temporary? There are executives paid big money to figure that out, and you bet your bottom dollar that they are going to overcompensate. After all, when the company goes away, so do those big bucks. Being one of the guys in charge when something like that happens doesn’t bode well for future jobs, either; this is especially true in this job market.

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Are We Really in a Recession? 5 Reasons We Are

July 9, 2020 By Trey LaRocca Leave a Comment

The economy is a bit of a mess right now, and there is a lot of debate over the title of what we are going through. Many say we are in a recession, while others are hesitant to use the term. There is a pretty dark connotation associated with the word “recession,” but we can’t let that keep us from rational discussion. It is vitally important that we are being straight with ourselves when it comes to the economy. We cannot recover unless we have an accurate picture of where things are now. So, what is the truth? While there are arguments on both sides, today we will argue in the affirmative. So, here are 5 reasons we are in a recession.

1. Textbook Definition

This one is pretty easy– the textbook definition of a recession may imply that we are in one. The typical definition taught to economists is that once the country has seen 2 consecutive quarters of shrinking GDP, we are in a recession. While we are still awaiting the data to prove this is the case, all signs point to that being the truth. With the coronavirus pandemic, along with the strong and inconsistent responses throughout the country, have really thrown the economy into a downward spiral. While the stock market has seemingly recovered for the time being, jobs numbers continue to lag behind. When it comes to production, you need people working in order to grow the economy. There is really not too many ways around a dramatically diminished workforce. So, odds are that we will see those two consecutive quarters of GDP losses.

2. Massive Unemployment

The issues regarding unemployment have been historic in nature. As mentioned above, one of the most significant predictors of economic growth is the size of your workforce. Without people to produce, your overall production is obviously going to hurt. While these titanic unemployment figures are probably temporary, they still spell a certain level of doom for the time being.

3. Federal Reserve Bank of Atlanta Prediction

The Federal Reserve Bank of Atlanta has a pretty upsetting prediction for the US economy. Their shocking figure for a decrease in US GDP is 40%. Again, it is important to address the obviously temporary reasoning for this, but it doesn’t make it any less relevant. A 40% decrease will be quite the hole for us to dig out of, but it definitely isn’t possible. Luckily, setting that low a bar means that expansion should be coming not too far behind.

4. National Bureau of Economic Research Declaration

The NBER is an authority when it comes to US economics, and their declaration of a US recession makes it all but official. They mark February 2020 as the peak of US economic activity in regard to the expansion that started in 2009. This means that we have begun a recession, and we will officially be in that recession until we begin to see consistent expansion of GDP. One can only hope that the next expansion lasts as long as the one before it, and it doesn’t take too long to get there.

5. We Aren’t Alone

The United States are not the only ones reeling from this pandemic. Almost every country on the planet has been hit in a major way when it comes to economics. The World Bank states that, beginning in 1870, the world has seen 14 global recessions. This one, they predict, will be a pretty significant one to add to the list. While the US is definitely unique, it would seem we are not exempt from the economic woes that effect the world-at-large.

5 Tips on How to Short a Stock

June 30, 2020 By Trey LaRocca Leave a Comment

The market has been extremely volatile as of late. As a result, there are many people making ridiculous amounts of money day trading. Day trading, or shorting a stock, is essentially the act of buying and selling a stock in a very short amount of time. This sort of trading is high-risk, and is more akin to gambling than investing. that being said, it can make for much quicker gains than other types of stock trading. The issue is, it doesn’t take very long to lose a lot of money. This is due to the types of stocks people short. To make sure you don’t fall into some major losses, we have a few things you should know. So, here is how to short a stock:

Set a Conservative Goal

If you are trying to keep yourself as safe as possible, it is important to set a goal for your gains from the outset. When buying a stock, decide on a percentage gain you are looking to make from it. Once you have chosen this percentage, stick to it. If and when the value of the shares you purchased reach that goal, sell immediately. Don’t hang on and try to wring extra money out of it, as this is the way that people most often experience losses. On low-value stocks that people like to short, it takes only a few seconds for values to drop astronomically. So, if you are looking to make 5%, sell at 5%. Most people consider 5% gains a good goal for the year. Don’t lose money trying to beat it in a single day.

Set a Stop-Loss Around 1-2%

Due to the volatility of shorted stocks, it is important to use technology to your advantage. Most brokerage apps allow you to set a “stop-loss”. Stop losses are values at which you brokerage will automatically sell your shares. These make sure that you don’t look away from your phone and lose 10% of your portfolio. For most casual day-traders, you are betting almost your whole brokerage account on each trade. So, set a stop loss of only one or two percent of the current value of the shares when you buy them, and you will ensure that your losses never get worse than 1-2%. this will lose you a lot of shares, and you may miss out on a few upswings, but the security is worth it.

Only Short 3 Times Per Week

This one has less to do with strategy, and more to do with statute. In the United States, you will usually be marked as a “Pattern Day-Trader” if you buy and sell four or more times in a rolling five business-day period. Once you are flagged under these PDT rules, you are required to have $25,000 in your brokerage account to short a stock again. This is obviously an instant disqualifier for many, and so we recommend you keep it to 3 each week.

Join a Group

There are many day trading communities out there. Many of them use live chats to call out what stocks are looking good, which are most volatile (which leads to the fastest gains), and when certain stocks are spiking or falling. This can all be extremely helpful information, and can maximize both your gains, and your security when shorting stocks. Information is king in the stock-shorting game, and joining a community with a live chat like this is a great way to maximize your information.

Don’t

My best piece of advice for most people who want to short a stock is simple: Don’t. Why do I tell most people not to short stocks? Because most people lose money shorting stocks. In fact, according to the stock trading firm eToro, 80% of people lose money doing it. so unless you are going to be as safe as possible, and follow this advice exactly, don’t get involved in day trading. I’ve written another article regarding your personal ability to become a day-trader, even casually. It all comes down to discipline, and the effects of a loss on your life. Make a smart decision, and be responsible.

Why Every Adult Should Have a Toolbox

June 30, 2020 By Trey LaRocca Leave a Comment

So much of our money is spent getting other people to do things for us. This can eat away at our budgets, and perpetuate a glaring weakness in our lives. No matter what your experience is with tools, it is vitally important that you have them. With the internet serving as an all-powerful learning resource, there is no excuse to go without a decent toolbox. There are many different ways that this will improve your life, and your financial standing. TO help make those clear, I’m gonna list the highlights for you. So, without further adieu, this is why every adult should have a toolbox.

Home Repairs

Little things go wrong at the house all the time. Finicky light switches, broken toilets, clogged plumbing, and any number of other little things can bring $100+ bills with an electrician or plumber. Once you realize how little you really need, in the way of both tools and experience, you will be kicking yourself. A screwdriver and some pliers may be all you need for that light switch. A decent wrench set and some cheap replacement parts can fix most basic toilet issues, clogs being easily fixed with a metal snake. These are just a few of the many issues that can be solved with a decent toolbox. Home ownership is expensive enough, it doesn’t need to be made worse with costly repairs. The cost of tools will never compare to the bills you will receive down the road without them– trust me.

Automotive Maintenance

With homes, you can often wait until something goes wrong to break out your tools. Cars are much different, and this can be a good thing. You can keep some extremely major, and expensive, issues from arising with your vehicle by equipping yourself to deal with routine maintenance. Oil and fluid changes, brake service, and basic diagnostics are all cheap to accomplish, and easy to learn. As a result, you’ll be saving hundreds, potentially even thousands, of dollars a year on car issues. It also helps you avoid the headache of wondering when a mechanic is trying to upsell or scam you. Automotive mechanics, especially at big chain operations, are notorious for trying to make you spent far more than you should. That, along with labor costing around $80-120 per hour, is reason enough to learn a few things on your own.

Confidence and Peace of Mind

This may be the most important, as intangibles tend to be. It is hard to truly understand the peace of mind that comes with being equipped to handle these issues until you are. The feeling of knowing that if your car acts up, you know how to handle it. The feeling of knowing that when the roof leaks, it won’t be leaking for much longer. All of this contributes to an overall reduction in daily anxieties, and a major boost in your self-confidence. Not only does it make you less anxious, it makes you feel so accomplished to be able to point out all of the things you have fixed. Nothing quite compares to putting in some sweat equity, and getting a much-needed job well done.

5 Tips for Financial Recovery After The Coronavirus

June 25, 2020 By Trey LaRocca Leave a Comment

We have all had different experiences with the coronavirus pandemic. While there may be quite a few variances, it isn’t uncommon for you to be financially strained by now. Over 41 million Americans lost their jobs, either temporarily or permanently. If you fall under that category, there are definitely ways to better your situation. Even if you kept your job, financial recovery after the coronavirus could still be necessary for you. To help you guys out, here are the five tips we have to help you recover financially after the pandemic.

Side Gigs

One of the major benefits of the gig economy is the ability to make your own money. If the wheels of the job market are moving too slowly for you, you can monetize a skill. Whether it is car detailing, house cleaning, home repair, or any other trade; if you can do it well, you can get paid for it. Get ads up on Craigslist and see what you can do.

Save What You Can

If you do have any source of income, such as unemployment benefits, make sure you are saving if possible. Now is not the time for frivolous spending if you are in recovery mode. You should focus on tightening the belt and keeping as much held for emergencies as you can. The number one way to end up completely stuck in debt, is to have an emergency you weren’t prepared for.

Work With Your Bank/Credit Union

Due to the widespread financial strife around the country, banks and credit unions are offering certain types of relief. Both of these entities are typically offering delayed payments for auto loans. If you have a car loan, see if your bank will give you a break. Some institutions are even offering 0-interest short-term loans for people in a pinch. If, and only if, you have a serious emergency, this might be a solid option for you. Do not get into any debt if you don’t have to, but if you have no choice, zero-interest debt is better than your other choices.

Cook at Home

Eating out, especially in this day and age, is a major money-sink. Throw in the delivery fee, you could easily drop $30 on a mediocre meal for yourself. Even though things are opening up, your financial security should be your number-one priority.Go to the grocery store, get some stuff to make at home, and eat in. This will make a massive difference for your monthly budget.

Care For Your Mental Well-Being

If you are in a bad mental state, your spending will follow. Even more important than your finances is your mental health. Even more prevalent than the financial crisis in this country is the mental health crisis. You aren’t alone, and being in a low emotional place is the worst foot on which to start recovering financially. Whether it is prayer, low-cost therapy, meditation, exercise, or time with family; take care of yourself any way that you can. Reach out to your support system or your community for ideas. Everyone is in this together, and there are resources there for you if you need to reach out.

How to Take a Cheap Vegas Vacation

June 22, 2020 By Trey LaRocca Leave a Comment

There are a lot of negative outcomes that came form this COVID pandemic. While it is important to recognize these, now is the time to turn things around. As a finance website, we have the unique honor to show you the ways that the COVID fallout can be turned into a positive for you. One of the best examples is the state of the travel market. Flights and hotels are having fantastic promos on apps like Groupon and Hopper. These rates won’t last too long, but if you are quick, you can have a great vacation without breaking the bank. The best deals I have seen so far are those in Las Vegas, one of the tourism gems of the US. So, this is why you should take a cheap Vegas vacation.

Fantastic Hotel Rates

For this one, Groupon is your friend. There are currently room rates as low as ten dollars-per-night, and that is ridiculous. While the big dogs on the strip still have rates closer to $100-300, the best strategy is to look at hotels downtown for great rates. Reputable hotels like The D, Plaza Hotel and Casino, and other great downtown hotels are all starting their rates under $35 right now. There are even a few smaller hotels with similar rates closer to the strip, like Tuscany Suites and OYO. Keep in mind that there is usually an additional resort fee that will double these rates, but they are still great deals after considering that cost.

Decent Flight Prices

This is where Hopper comes in. Using the Hopper app, you can plan round trip flights that are pretty cheap. I won’t be mentioning specific rates, as it obviously varies from where you are traveling. With that said, they are marked down nicely due to the current travel anxiety striking people worldwide. With airlines desperate to boost sales as soon as possible, expect to see pretty solid pricing over the next few months. Buying tickets will also help them keep the ball rolling and open up more flights, so you’ll be doing your part for economic recovery! Make sure you aren’t looking for flights next week, as you’ll want to give a few weeks of leeway to get the best deals. While things are crazy right now, basic rules of travel still apply.

Cheap Tips While In Vegas

To make sure you get the most out of the least amount of cash, there are a few things to note. For one, most of the hotels have free parking. This means you shouldn’t be spending loads on taxis or rideshares if you are able to drive out there. Depending on how long you’re staying, renting a car is also a good option. You can find a good starting hotel/casino to hang out at, then walk the strip from there. This will save a lot of cash on the trips back and forth if you stay downtown. Another suggestion is to call any restaurant you plan to go to prior to going in. While most things are opening up in Vegas, it is time consuming to walk from restaurant to restaurant if you end up reserving a table at one that hasn’t opened yet.