"Some debts are fun when you are acquiring them, but none are fun when you set about retiring them." - Ogden Nash

SavingAdvice.com Blog

Bridging the gap between saving money and investing

Investing

Do You Need Life Insurance as An Older Adult?

By Leave a Comment

After the age of 60 or 65, many people think that life insurance is an expense of the past. Not only are most people able to cover basic funeral expenses at that time, but they’re usually more financially stable. In some events, people begin paying into funeral planning so their family simply won’t have the expense when the time comes. However, life insurance can provide many other benefits. Consider options that fit into your lifestyle, and your family’s needs, regardless of your age. As you grow older, it’s important to regard the financial state of your family after you leave.

The Unexpected Happens

Throughout retirement, many people enjoy traveling or taking on adventures after so many years of working. So, what happens if you pass away far from home? The expense of transporting you back home may be unreasonable or even unbearable for your family. Life insurance policies will often include the costs of transportation as part of your funeral expenses. You can travel in peace without worrying about the many possibilities of being too far away from home.

Aside from traveling, there are other unexpected issues that arise later in life. If you believe that you have years to plan and save for your passing, reconsider that concept. People start paying into life insurance policies in their twenties because they know that unexpected things happen all the time. While you can set up safeguards through your home, and take exceptionally good care of yourself, the unexpected can happen.

Protect Your Family

Although many older adults don’t have children at home, their children may not be entirely self-sufficient. It may be difficult to define, but many children are now dependent on their parents even as they hit ages throughout their middle-age years. If your children still rely on you for financial stability, it’s likely that your passing will have an even more significant impact on them.

Families are learning to rely more on late-in-life earners than ever before. If you have a job or a source of income, you should expect to replace that revenue source when you leave. Life insurance can help your spouse adjust to the loss of an income or the lack of benefits. Although these may seem like secondary factors to pressing bills such as funeral costs, your family will need time to grieve. After a loss, people can hardly return back to work the next day. Make sure that you take time to plan for your family’s needs. You should also consider looking into critical illness insurance in addition to life insurance.

Think About Outlying Factors

There are two outlying factors to consider, and they are debt and your estate. As a whole, your estate will go through a long process after you pass. However, you can streamline the process with proper estate planning. As part of your estate planning, you will need to accommodate any outstanding debt. If you have anything outstanding on your home, or on vehicles, you will want to resolve that quickly. Leaving a spouse with a mortgage to pay while they are also probably in their later years can lead to years of struggle and stress. Whereas paying for life insurance can alleviate that possibility.

Another part of your estate planning should include any businesses that you have in place. The option to liquidate them or allow family members to put management into place can be part of your planning. If you choose to settle, or you want to plan for the possible choice of your family members to liquidate, then you should have life insurance. Outstanding business debt can fall to your spouse, who is now left without a source of income.

Carefully Consider Your Financial Status

The concept that term life companies provide to their customers is that at the end of the term you won’t need life insurance. However, many people don’t realize or don’t plan on carrying debt or financial burden throughout their later years. When speaking with life insurance companies take into account your age, health, and what income you’re currently bringing into the household. If you’re happily living off of retirement savings, then you may not need as much coverage. However, if your financial status is rather high, and your spouse plans to continue living the way you do now, you may need to plan accordingly.

If your benefits will not payout to your spouse, or if your spouse will lose access to things such as healthcare after your passing, you likely need life insurance. Always speak with a financial advisor if you believe that your financial status may impact your decision to continue your life insurance policy.

TiedCoin – Crypto That Gives You Control Over Your Finances

By Leave a Comment

Stablecoins are a usable cryptocurrency, they promise the stability of traditional fiat currency. 1:1 Parity is guaranteed through various methods, however, the most common is fiat-collateralization.

Fiat-collateralized coins are backed up by actual money in a bank account. Every coin you buy is matched by a single unit of fiat currency deposited into a bank account. For example, $1 = 1 coin. Stablecoins are where most of the new development in the crypto world is happening. They create an accessible port of entry for the regular person to enter the cryptocurrency world.

Trade with Confidence

TiedCoin offers a trading system that is basically like having your cash-in-hand. Enter/Exit the market at will. You will not encounter the traditional waiting times of days (sometimes weeks) that you find with other cryptocurrencies when transferring from crypto to fiat, or vice versa.

Tied is a blessing for budding cryptocurrency traders. Picture this: You’ve invested in BTC when prices are low, suddenly their price surge to record highs, but you have the feeling they will drop at any minute? Well, you can transfer your BTC for T2EUR or T2JPY instantly with the help of your very own free Tied Wallet. TiedCo has partnered exclusively with beaXchange, and they offer cross-platform wallet usability. Exchange your BTC, ETH, LTX at a moment notice, without any hassle.

You know if you’ve converted your 1 BTC (worth $10,000) into TiedCoin, then your 10,000 coins will not drop in value. You can walk away for six months, and the value of your coins will remain the same. If you decide to try your hand again at crypto trading, you can easily convert into your desired cryptocurrency. Do you want to cash out your TiedCoins for fiat? You can liquidate instantly.

TiedCoin is the first stablecoin (T2JPY) trading in Japan with the promise of instant liquidity! How did you ask? TiedCo’s exclusive partnership with beaXchange allows them to stand in the market as ‘market makers’. This ability allows TiedCo to buy-back any coins they have issued at near face value. If you ever need to sell and no one is buying, do not worry, they have you covered. A coveted 100% buy-back pledge allows you to trade with confidence.

Reap the Benefits of a Decentralised System

The concept of cryptocurrency really gained traction after the financial crash of 2008. An evident need for a new financial system presented itself, one that ditched the traditional concept of centralized banks. It’s extremely confusing why you would have to pay fees to move your own money around!

Why should we leave control of our money in the hands of people who will not think twice about gambling it all away? We shouldn’t. However, traditional cryptocurrencies such as Bitcoin or Ethereum are unstable. Yes, they support the idea of a decentralized banking system but it’s just not feasible to use a currency that is extremely volatile. It is not viable to expect mainstream adoption of these coins.

Experience the perks of a decentralized system, and the stability of stablecoin, with TiedCoin. Move your money around on the decentralized Stellar blockchain. No need to worry about the oversight of major banks in your business. Never again will you have to ask permission to withdraw money from your account. The only fee you will have to pay is a token transaction fee when transferring from an external Tied Wallet.

Revolutionize the way you save money by transferring your savings into TiedCoin. It is a great way to actually save. You might be familiar with the saying “out of sight, out of mind” – when you convert your savings into TiedCoin, they will be safe and secure in your Tied Wallet. However, you will not have instant access to them and their value as you would with your traditional bank accounts. The next thing you know, you are saving and spending what you have budgeted for your day/week/month. Pretty soon you’ll have saved your target amount for that vacation to the Bahamas.

What The Facebook Libra Means For Bitcoin Trading

By Leave a Comment

Facebook Libra

Many people were wondering whether or not bitcoin was on its way out as fast as it had made its appearance. The cryptocurrency fell below $4,000 for much of 2018. However, earlier this week, bitcoin rose over $14,000. All of this stemmed from Mark Zuckerberg’s announcement that his social media website would soon introduce its own cryptocurrency: the Facebook Libra.

About The Facebook Libra

That’s right – Facebook announced it would be dipping its toes in cryptocurrency. The Facebook Libra, as the currency will be called, will be used to send payment via Messenger, WhatsApp, and several other third-party apps.

This isn’t the first time Facebook has dabbled in digital payment. Folks in the United States have been able to send money through the Messenger app since 2015. Facebook in France and the United Kingdom began a similar service in 2017.  So, why develop Facebook Libra?

Facebook founder and CEO Mark Zuckerberg wants Facebook to expand this option on an international basis. With the Libra, you’ll be able to send money to anyone anywhere, even if they don’t have a bank account. Additionally, those advertising on the site will be able to sell items and collect payments directly through their ads.

Before you start converting to the Libra, you should know a few things.

  1. Facebook Libra is fairly stable. While bitcoin has been unstable, the Libra will be tied to bank accounts and government securities. As long as international currency remains stable, so will the Libra.
  2. The currency will not be controlled by Facebook. The social media site isn’t known for its security, and it knows that. So, the company has partnered with larger names in finance, like Visa, to make the Libra a success.
  3. It could be an easy way to pay (if it works). There is no telling if the Libra will actually work or take off. However, if it does, it could be one of the easiest, fastest ways to pay online.

Facebook Libra vs. Bitcoin

The Facebook Libra has not yet been released, but there are some pieces of information that allow us to compare it to other forms of digital currency. When it comes to the Libra vs. Bitcoin, these are the main differences…

  1. Facebook, WhatsApp, and other Facebook properties will be where you can use the digital currency at first. With bitcoin, you can pay for just about anything (just about anywhere). Libra payments may also be accepted at websites within the Libra Association (a group of companies working with Facebook on the Libra). That has not been confirmed yet though.
  2. Where the Libra is used is completely under the control of Facebook. On the other hand, bitcoin is deregulated. In some cases, it has been used to purchase black market items.
  3. Libra is also much more centralized, meaning more people have a say in what happens with it than bitcoin. The Libra Association is projected to grow to 100 members by the end of 2020 and each member will have a say in the currency’s evolution. In bitcoin blockchain, if you own 51% or more, you have the final say.

Facebook Libra

The Rise and Fall of Bitcoin

As mentioned above, bitcoin skyrocketed this week when the mention of the Facebook Libra was made. Many people were surprised by this because bitcoin has been called a “bubble” in the past, meaning eventually it would burst and longer carry any value.

Even though it did drop in value last year (hovering around $4,000), interest in digital currency seems to continue to drive bitcoin up. Not to mention, any time there is any mention of a trade war or other political issues that may cause a decline in value of a currency, people tend to look to bitcoin as a safety net.

The rise this week can be partially attributed to the announcement of the Libra but can be tied to other occurrences as well. China and the U.S. are also in the middle of a trade war. Bitcoin is an easy way to get money in and out of China during this time.

On top of that, the Democratic Party continues to suggest a wealth tax. Presidential candidate Elizabeth Warren has proposed a 2 percent wealth tax. This may increase the desire for having bitcoin in your wallet because cryptocurrency is able to be held outside the reach of tax authorities.

Consider Currency Risk Before Investing

Before you go converting your money to the Facebook Libra, bitcoin, or any other form of digital currency, be sure to do your research. There are a number of reasons to be skeptical about investing in bitcoin.

The most important of these reasons seems to be that none of the cryptocurrencies on the market are safe. Each of them carries some type of risk. As we’ve seen with Bitcoin, the value of the currency can swing drastically in one way or the other, losing you thousands of dollars. This is possible with Facebook Libra as well. If international currency rates drop, Libra owners could lose up to 10 percent.

The risk would only cease to be a factor if you did all of your transactions in Facebook Libra, bitcoin, or other cryptocurrencies. But to eliminate that risk, you’d have to get rid of every other type of currency, which just isn’t likely to happen.

Readers, what do you think about the Facebook Libra? Would you use it?

Read More

Expect Gas Prices To Go Up As Philadelphia Energy Solutions Shuts Down

By Leave a Comment

Philadelphia Energy Solutions

Gas prices typically rise during the summer months because more people are traveling for vacation and visiting family. However, prices are projected to be even higher than usual after an explosion at Philadelphia Energy Solutions. Following the incident, the oil refinery has announced it plans to permanently close down.

Philadelphia Energy Solutions Shutting Down

Philadelphia Energy Solutions (PES) is the largest east coast refinery and is now seeking to permanently shut down after a massive fire last week. While there were only minor injuries, the explosion and subsequent fire caused significant damage to the plant. PES is looking to file a notice of intent, which will begin the process of closing the oldest (and largest) refinery on the East Coast.

The plant exploded in flames early Friday morning. Explosions from the 335,000 barrel-per-day refinery could be heard from miles away. If the hydrofluoric acid contained in the plant caught fire, it could have created a vapor cloud, similar to a nuclear bomb, that would damage the eyes, lungs, and skin of residents in surrounding areas. Fire officials say it started in a butane vat around 4 a.m. but it is still unknown as to what caused the explosion.

Because such a significant portion of the plant is damaged, making it “impossible” to continue operations, PES is seeking to close. This will result in hundreds of jobs being lost. Not to mention, most of us will see an increase in gasoline prices.

“Today, Philadelphia Energy Solutions made the difficult decision to commence shutdown of the refining complex. While our teams include some of the most talented people in the industry, the recent fire at the refinery complex has made it impossible for us to continue operations,” CEO Mark Smith stated.

Cost-Cutting May Be The Root of the Problem

PES has not yet filed or begun closing down, so plans could still change. The company does expect to begin laying off about 700 union workers soon though. These layoffs may include half of the union workforce. The remainder of the staff will remain at the plant until the explosion investigation is completed.

Before the explosion, the plant was suffering financially. Worker benefits had been cut and many capital projects were scaled down dramatically. Last year, PES went through bankruptcy to reduce the company’s overall debt. Unfortunately, cash within the business still remained low. There has been speculation that cost-cutting within the company may have left the plant vulnerable to an accident like this. On top of that, the Department of Environmental Protection expressed concerns regarding the integrity of storage tanks at the plant.

In fact, last week’s incident is the second within two weeks at PES. Now investigators are looking into the cause. Investigations are moving slowly though because they are dealing with unstable structures that must be cleared by an engineer before entering. It could take months, and possibly even years, to get answers.

How This May Impact Gas Prices

Drivers on the East Coast can expect to see gas prices rise, and they already have. On Wednesday, gasoline futures rose 5.4 percent ($1.9787 per gallon). That is the highest its been since May 23. Overall, gasoline futures are up 8.9 percent since end-of-day Thursday before the PES incident.

The latest increase has pushed the United States gas prices above both Asian and European markets, making it more likely for gasoline to be imported from these regions.

“While it is too early to know how much prices could increase and for how long, motorists in the region will likely continue to see a fluctuation in pump prices — especially leading up to the busy Fourth of July travel period,” AAA spokeswoman Jenifer Moore said in a statement.

Read More

Is the Stock Market Open on July 4th, 2019?

By Leave a Comment

Stock Market Open on July 4th

Independence Day falls on Thursday, July 4, 2019. As a federal holiday, many Americans get a day off, and numerous offices, businesses, and agencies close. However, not everything closes for the Fourth of July. As a result, figuring out what will or will not be open can be a bit of a challenge. If you are wondering if the stock market is open on July 4th, here is what you need to know.

Is the Stock Market Open on July 4th?

While the New York Stock Exchange (NYSE) and Nasdaq typically open on Thursdays, they both close on July 4. Additionally, both of them close earlier on the day before Independence Day, July 3. On Friday, July 5, the NYSE and Nasdaq resume their normal operating hours.

If you need to manage stock transactions before July 4, you can take care of them on Wednesday, July 3, before the 1:00 pm EDT early closing time. Otherwise, you will need to wait until the pre-opening session or core trading session on Friday, July 5, which start at 6:30 am and 9:30 am for the NYSE, respectively, and 4:00 am and 9:30 am, respectively, for the Nasdaq.

US Stock Market 2019 Holiday Schedule

The NYSE and Nasdaq holiday schedules align exactly, so they are both usually open and closed on the same days. The only exception is if one market experiences a technical issue that results in services not being available when the other does not. This could lead the NYSE to be open while the Nasdaq has to close, or vice versa.

Here is a look at the 2019 US Stock Market holiday schedule, including full closures and short-days:

  • New Year’s Day – NYSE and Nasdaq are closed on Tuesday, January 1
  • Martin Luther King, Jr. Day – NYSE and Nasdaq are closed on Monday, January 21,
  • Washington’s Birthday (President’s Day) – NYSE and Nasdaq are closed on Monday, February 18
  • Good Friday – NYSE and Nasdaq are closed on Friday, April 19
  • Memorial Day – NYSE and Nasdaq are closed on Monday, May 27
  • Day Before Independence Day – NYSE and Nasdaq close early at 1:00 pm EDT on Wednesday, July 3
  • Independence Day – NYSE and Nasdaq are closed on Thursday, July 4
  • Labor Day – NYSE and Nasdaq are closed on Monday, September 2
  • Thanksgiving – NYSE and Nasdaq are closed on Thursday, November 28
  • Day After Thanksgiving – NYSE and Nasdaq close early at 1:00 pm EDT on Friday, November 29
  • Christmas Eve – NYSE and Nasdaq close early at 1:00 pm EDT on Tuesday, December 24
  • Christmas Day – NYSE and Nasdaq are closed on Wednesday, December 25

Most of the NYSE and Nasdaq holiday schedule aligns with federal holidays. However, the stock market is open on two holidays when the government closes: Columbus Day and Veterans Day.

Additionally, while Good Friday is not a federal holiday, the stock markets close to recognize it. Some of the short days are also not part of the federal holiday calendar.

SIFMA 2019 Holiday Schedule

The US bond markets also have a holiday schedule, though it doesn’t align perfectly with the NYSE and Nasdaq closures. Here is a look at the SIFMA holiday schedule for 2019:

  • New Year’s Day – SIFMA is closed on Tuesday, January 1,
  • Martin Luther King, Jr. Day – SIFMA is closed on Monday, January 21
  • Washington’s Birthday (President’s Day) – SIFMA is closed on Monday, February 18
  • Day Before Good Friday – SIFMA closes early at 2:00 pm ET on Thursday, April 18
  • Good Friday – SIFMA is closed on Friday, April 19
  • Friday Before Memorial Day Weekend – SIFMA is closed on Friday, May 24
  • Memorial Day – SIFMA is closed on Monday, May 27
  • Day Before Independence Day – SIFMA closes early at 2:00 pm ET on Wednesday, July 3
  • Independence Day – SIFMA is closed on Thursday, July 4
  • Labor Day – SIFMA is closed on Monday, September 2
  • Columbus Day – SIFMA is closed on Monday, October 14
  • Veterans Day – SIFMA is closed on Monday, November 11
  • Thursday, November 28, Thanksgiving – SIFMA is closed on
  • Day After Thanksgiving – SIFMA closes early at 2:00 pm ET on Friday, November 29
  • Christmas Eve – SIFMA closes early at 2:00 pm ET on Tuesday, December 24
  • Christmas Day – SIFMA is closed on Wednesday, December 25
  • New Year’s Eve – SIFMA closes early at 2:00 pm ET on Tuesday, December 31

Ultimately, the SIFMA closes more often than the NYSE and Nasdaq. Along with closing for Columbus Day and Veterans Day, there are additional early closures to contend with on occasion.

If you do need to handle bond-related transactions before July 4, you will need to complete them prior to 2:00 pm ET on Wednesday, July 3. Otherwise, you will need to wait until Friday, July 5.

Are International Stock Markets Open on July 4th?

International stock markets do not follow the same holiday schedule as the NYSE, Nasdaq, or SIFMA. Since the Fourth of July is a United States holiday, the international markets will be open on Independence Day.

There are a few instances where the NYSE, Nasdaq, SIFMA, and some international markets are closed at the same time. For example, the London Stock Exchange (LSE) doesn’t open on New Year’s Day, Good Friday, or Christmas, just like the US markets.

Additionally, there are days where the US stock market is open, but an international market is closed. The LSE closes for Easter Monday, while the NYSE, Nasdaq, and SIFMA are open.

Do you wish the Stock Market was open on July 4th? Share your thoughts in the comments below.

Read More:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

10 Reasons to Consider Investing in Savings Bonds with TreasuryDirect

By Leave a Comment

investing in savings bonds

There are so many different ways that we can invest our money. If you’re smart, you’ve diversified your options. However, you might have overlooked one of the smartest options available today: TreasuryDirect.gov. Investing in savings bonds that are backed by the government is a flexible, secure way to stow your money and let it grow. If you haven’t considered this option, here are ten reasons why it’s a smart course of action:

1. It’s Quick and Easy to Get Started

So what is TreasuryDirect? As they succinctly explain directly on their own website:

“TreasuryDirect is the first and only financial services website that lets you buy and redeem securities directly from the U.S. Department of the Treasury in paperless electronic form.”

In other words, you can quickly and easily go online, set up an account, and start investing in savings bonds through the site. It takes less than ten minutes to set up an account. You link that account to your regular bank account, so it is fast and simple to transfer funds. Although there is a lot that you can explore and learn on the site, you can grasp the basics really quickly and start investing in no time.

2. The Government Backs The Products

When you invest through TreasuryDirect, you do so directly through the US government. They back the investments. While it’s not foolproof, it’s one of the most risk-free options for investing today.

3. TreasuryDirect Offers More Than Savings Bonds

Savings bonds are the big thing that people invest in through the site. However, you can invest in a variety of security treasuries with this tool.

For example, you can invest in a specific type of savings bond called TIPS. That acronym is short for Treasury Inflation-Protected Securities, which, as the name suggests, protect your investment against inflation.

You can also invest in treasury bills and notes. The more you get to know about your different options, the more obvious it becomes that you have an array of good investment choices.

4. You Have So Many Options

In addition to having investment options, you really have a lot of choice about how you make your investments. There’s just a lot of flexibility with TreasuryDirect. For example, you can ladder your investments, buying 4-week bills at auction, which means that your money will never be tied up for long. Sometimes people don’t invest because they want the security of having that money easily accessible in the bank in case of an emergency. TreasuryDirect can give you a lot of that security while still allowing you to earn more than you would with a basic savings account.

5. The Investing Rates Are Competitive

People who invest their money in TreasuryDirect definitely want the risk-free security and ease of the product. In the end, though, this is an investment, so they also want a return on their money. It turns out that the investment rates these products offer are quite competitive. Savings bonds pay about 3%, which is clearly better than just sticking your money in a regular savings account.

Investing in bills and notes through TreasuryDirect.gov will give you a slightly lower return. Nevertheless, it’s still about 2%. Even if you invest in TIPS, you still have a competitive rate of about .5%. That doesn’t sound like much but considering that you won’t’ be impacted by inflation, it’s actually a great deal.

6. It Won’t Cost You Much to Earn

You always have to weigh the investment benefits with the costs. In this case, the costs are minimal. There are no fees at all. You can easily invest your money without having to pay extra out of pocket to do so. Moreover, you don’t have to put a lot of money into the account. Whereas some investment forms require huge amounts of cash to start, you can easily begin investing with TreasuryDirect.gov starting with as little as $25.

7. The Interest You Earn May Be Tax-Free

As you begin to learn more about investing in savings bonds, you’ll see that there are numerous benefits. One of them is the fact that you might not even have to pay taxes on the interest you accrue. You get just to add that money to your total net worth. Many of your investments are not so simple. Come tax time, you may be unpleasantly surprised to discover that you owe more than you expected. Nobody wants to owe extra money on the money that they’re trying to save.

This is especially important if you have a lot of money to invest. For example, let’s say that you receive a half million dollar inheritance. You could easily earn more than ten thousand dollars annually in interest from that investment. If you place that in a place where it’s taxed, you quickly lose a big chunk of it. On the other hand, if you put it into savings bonds, then you may not have to pay those taxes at all.

Of course, it’s important to do your research. Some investments will be tax-exempt at the state level but not at the federal level.

8. There Are Ways to Simplify Investing

Some people worry that putting their money into savings bonds is going to require a lot of work on their part. Indeed, if you want to get really involved in the trading, you certainly can. However, you can also automate a lot through TreasuryDirect.gov so that you don’t have to overthink it if you don’t want to. One great option is to buy the 4-week bill, set it to reinvest automatically, and then auto send the maturity directly into your regular savings account.

9. You Can Gift Savings Bonds

Savings bonds make a great gift, particularly for children – whether newborn or graduates. You can easily keep your money in your account then gift it when the time is right. That’s because the site has an easy-to-use “gift box” function.

10. Diversifying Your Investments Is Always Wise

The more places where you can place your money, the better off you are. You just never know what might happen in the market. Therefore, spreading your money out is a way to protect yourself against the unexpected. If you already have basic investment accounts but haven’t worked with TreasuryDirect, yet, then it’s another place to place your money.

Read More: