Making Money

Are Altcoins the New “Game Stop” Investment?

May 5, 2021 By Allen Francis Leave a Comment

Comedian and talk show host Bill Maher recently criticized cryptocurrency and cryptocurrency hype on a recent episode of his show. His scathing commentary eviscerated people who love cryptocurrencies but don’t know what they are, how to create them, or how to make money with them.

And that is the problem with the recent cryptocurrency boom – too many people are in it for the hype, not the investment potential. The problem is that if you didn’t invest in Bitcoin, the original cryptocurrency, long ago, you will pay a lot to invest in them now. The good news is that if you are susceptible to hype investing, especially in the wake of the GameStop retail investing scandal, then you can probably start investing in altcoins. Are altcoins the new Game Stop investment? All signs point to yes – although, that may not necessarily be a good thing.

The best way to explain investing in altcoins, and why it might not be a great thing, is to first explain cryptocurrency investment in general and the Game Stop investment scandal.

Don’t worry, I will use basic, easily comprehensible terms and keep it brief. It is personal finance malpractice, and financially irresponsible, to invest in things you don’t understand based on hype.

Cryptocurrency 101

The best way to explain altcoins, which are the same things as cryptocurrencies, is to explain Bitcoin, the first cryptocurrency.

In the aftermath of the 2008 global financial crisis, economic theorists and computer programmers began developing decentralized digital currencies that could be controlled and created by everyday people.

Bitcoin was launched in January 2009. It was initially given away free or for a few bucks each – if you had invested in cryptocurrencies back then, you would have made a fortune now selling it. One Bitcoin has a trading value of $55,000.

In December 2017, the dawn of the cryptocurrency craze, one Bitcoin was worth about $$20,000.

A cryptocurrency is a digital currency that is created on a digital ledger called a blockchain. The simplest way (relatively speaking) to create a cryptocurrency is to use computers with advanced processing power called “mining rigs.”

Mining rigs solve advanced mathematical problems on a blockchain – when successful, Bitcoins are rewarded, and the transaction is logged on the blockchain.

Cryptocurrencies are not regulated or controlled by any government or central bank – that is why they are referred to as “decentralized.”

Most cryptocurrencies have a limit to how many coins can be created to help stabilize value.

However, while Bitcoin was conceptualized as a decentralized currency, it is not practical for use as money due to its slow processing times. Bitcoin is extremely volatile in financial markets. And more people use Bitcoin as an investment vehicle, wisely and otherwise, than as a currency.

If you ask anyone to name a cryptocurrency, they can probably only name Bitcoin, even though that are thousands of cryptocurrencies. (Almost 10,000 at last count)

And that brings us to altcoins.

Alt Coins

The prhase “altcoins” is just a cultural phrase that applies to any other cryptocurrency besides Bitcoin. The term stands for “alternative coin.” And “coin” is a shorthand phrase for cryptocurrency.

Ethereum is a new altcoin, created in 2015. It employs smart contracts, or digital versions of legal contracts, on the blockchain to help legally enforce transactions online. You can also use Ethereum to create your own coin for fundraising purposes.

Since almost all cryptocurrencies derive their value from market action, supply and demand, and investments, Tether was created to peg each coin to the equivalent of $1. However, it was recently discovered that Tether coins are pegged to the equivalent of IOUs offered by loan companies.

XRP is an altcoin that is optimum for use in paying for utility bills, peer-to-peer payments, and various transactions. XRP wants to revolutionize how money is sent across borders.

Dogecoin was first conceptualized as a joke cryptocurrency that was not to be taken seriously. Elon Musk praised the coin and its value skyrocketed over 14,000% this year, even though it was only created in 2013.

Dogecoin, and various other altcoins, have been called the new “GameStop,” investment opportunity. The GameStop scandal of a few months ago was caused by online users on Reddit and Facebook encouraging each other to buy stocks on a grassroots level to upend the system and create losses for experienced, rich investors used to getting their way.

This process is called “mania investing,” “meme investing,” and retail investing.”

Are Alt Coins the New “Game Stop” Investment?

So, are altcoins the new GameStop investing method? Yes.

Unfortunately, that is not good. GameStop’s stock plunged after the retail investing calmed down. That is because people invested based on hype, a meme they saw online, or for the sake of “sticking it to the man,” instead of projecting an ROI based on a realistic investment plan.

Some salt coins, like Dogecoin, don’t have a cap on coin creation, so while its value is skyrocketing now, it is bound to crash. Many people have lost fortunes investing in Bitcoin without understanding what it is.

Cryptocurrencies are not regulated. They are not stable vehicles to store financial value. Cryptocurrencies are not minted or controlled by governments.

And cryptocurrencies are created via algorithms and mining rigs – they inherently have no value without zealot cryptocurrency believers or willing investors.

Don’t invest in altcoins unless you have an understanding of their function and get advice from a financial advisor and cryptocurrency expert.

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Copper Looks Like an Investment With a Bright Future

May 2, 2021 By Max Erkiletian Leave a Comment

Copper futures hit highs not seen in a decade last month and are up 90 percent over last year. The good news for small investors is that there are cheap, though risky, ways to jump on the copper bandwagon.

The government; business pledges to reduce carbon emissions; a copper buying spree by China; and an infrastructure plan for the United States all bode well for the prospect of a copper boom.

Copper is used in a vast array of consumer and industrial applications. It can be found in everything from electrical wiring to batteries, pipes, motors, household appliances, heating and cooling systems, jewelry, and many more.

American Jobs Plan

President Joe Biden proposed a plan to repair and improve the nation’s infrastructure at the end of March. He pushed that plan again in an address to a joint session of Congress this week.

Under Biden’s American Jobs Plan, about $2 trillion would be spent to improve the nation’s infrastructure and boost green energy. Much of those improvements would involve the use of copper.

For example, one part of the plan includes $105 billion for the Department of Transportation to make repairs on buses, rail cars, and stations. In addition, the plan seeks $174 billion to help American manufactures make electric cars, batteries, and charging stations. Other parts of the plan would require even more copper.

Electric Cars Rev Up Copper Demand

Some automobile manufacturers have committed to producing all-electric vehicles within five years. About One hundred electric cars are set to be on the market by the end of 2024. With the increase in electric vehicles, demand for copper is expected to increase rapidly.

Electric cars use copper in batteries. In addition, copper is used in motors, wiring, radiators, connectors, brakes, and bearings.

China Is a Buyer

About half of the copper mined in the world is bought by China. Subsequently, Chinese companies use copper to manufacture things such as refrigerators, microwave ovens, and washing machines.

Like most industries, the pandemic had a negative impact on copper prices, and fewer goods were produced. However, China is again grabbing as much copper as it can. As a result, prospects for demand are increasing and so are copper prices.

Maike Group, a Chinese metal trading firm, recently predicted copper prices will climb to an all-time high within a year. China’s commitment to clean energy will be a major factor in that price increase, according to Maike Group.

Once in a 100-year Event?

“The price of copper will hit a record high in the coming year,” He Jinbi, Maike Group founder said in a written response to Reuters. “The market will gradually accept it, because with the recovery of the global consumption market there will also be a shortage of copper in the European and American markets.”

Part of the reason for the optimism on copper prices is the pandemic-induced reduction in mining and copper reserves. As a result, copper is in short supply. However, an expected acceleration in demand is also a factor.

“Copper is going through a once-in-a-hundred-year pivot with this global transition to electrification,” Gianni Kovacevic of CopperBank Resources told Investing News Network. “The Green New Deal and on top of that the restimulation of the global economy, which is now well in excess of US $10 trillion dollars — they all help copper.”

A Lot of Money To Be Made – Or Lost

So, it looks like the demand for copper is going to increase dramatically. That’s great, but how do you make money from that?

Firstly, understand that you are really investing in copper production, not copper. Copper does not have the intrinsic value of diamonds or gold. You are only making money in copper if your company is producing it for sale.

Secondly, you make money when there is a short supply and high demand for your product. That is the case with copper.

Mining Stocks

The simplest way to invest is to buy stock in a copper company. That usually means a copper mining company. Mining stocks are usually cheap, trading in the penny range. However, they are often volatile.

Some investors approach mining stock investments the same way they might approach a roulette table. The catchphrase is: “never bet what you can’t afford to lose”.

Many Influences

If you decide to wager on a mining company, you should do exhaustive research taking into account the company’s financial stability, current production, and location of mines. Mining in some parts of the world is not welcome. One mining official labeled violent protests at one Peruvian mine “anti-mining terrorism”.

Mining stocks are subject to forces of nature and market forces. In addition, there are external forces. As an example, the governments in many countries want a larger share of copper profits. Last week Chili and Zambia proposed additional fees on copper companies. In addition, the frontrunner in Peru’s presidential election, Yonhy Lescano, says he wants more mining revenues to stay in the country.

Regardless of external forces, most analysts see a bright future for copper. RBC Capital Markets recently raised its price estimate of copper from $3.25 to $3.50 an ounce along with other analysts.

A Safer Bet

A few copper EFTs offer a more diversified investment. That diversification spreads the investment risk.

It is always exciting to catch an investing wave. However, a balanced and diversified portfolio provides the greatest stability.

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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. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

What Are the Best Paying Jobs in Alabama?

April 16, 2021 By Kathryn Vercillo Leave a Comment

Do you live in Alabama? Are you thinking about moving there? With a low cost of living, it can provide a lot of benefits to people interested in saving money. But of course you’ll save more if you make more. So you might want to take a look at the best paying jobs in Alabama.

Doctors Have the Best Paying Jobs in Alabama

The best paying jobs vary from state to state. In some states, tech jobs pay the highest. However, the best paying jobs in Alabama belong to medical professionals. USA Wage reports that in 2020 the highest paying job in the state was physicians and ophthalmologists, except for pediatric physicians. However, general pediatricians had a higher starting salary and were second on the list of best paying jobs in Alabama. And dentists came in at number three.

How Much Do Medical Professionals Earn in Alabama?

Those non-pediatric physicians that are ranked at #1 earned an average 2020 salary of $195,750. However, their starting salary is just under $60,000. Therefore, it’s a career with a lot of growth potential but you don’t start off with the highest pay in the state. On the other hand, general pediatricians earn slightly less on average ($169,770) but have a starting salary of more than $84,000.

General dentists are comparable to general pediatricians. They have a slightly lower average salary at just under $169,000. However, their entry level salary is about $10,000 higher at $94,290.

Other Best-Paying Medical Jobs in Alabama

The USA Wage report lists the top 100 best paying jobs in Alabama. As you see, the first three are medical professionals. The top ten also includes three other medical professions: nurse anesthetists, psychiatrists, and pharmacists.

Here are their approximate average 2020 salaries and entry level wages:

Nurse anesthetists: $160,000 / $93,000
Psychiatrists: $160,000 / $90,000
Pharmacists: $127,000 / $91,000

As you can see, all three of these jobs pay $90,000 or more to start. That’s enough for a good life in Alabama. Of course, then over time you can earn more.

Best Paying Non-Medical Jobs in Alabama

What if you don’t want to go into a medical profession? Although six of the top ten best paying jobs in Alabama are in that field, you do have other choices. Managers, engineers, and CEOs are all top earners in the state as well.

Chief executives have the fourth highest paying job in the state. They earn over $160,000 annually on average. However, you don’t start off with high pay. This job is the lowest starting rate on the top ten list at under $50,000.

In contrast, architectural and engineering managers have the highest entry starting rate in the top ten. They earn over $94,000 to start. Their average annual salary is about $145,000.

Computer and information systems managers make the top ten best paying jobs in Alabama. They start off earning about $76,000. They climb to an annual salary of over $123,000.

Number ten on the Top 100 list is all other engineers. They start at about $67,000 and get to an average of about $123,000.

Best Paying Entry Level Salaries in Alabama

What if you don’t want to wait to make as much as you possibly can? If that’s the case, then you’ll want to find the Alabama jobs that have the highest entry level starting pay. The top ten jobs based on starting salary are:

Nuclear engineers: $103,000
Architectural and engineering managers (as shared above)
General dentists (as shared above)
Nurse anesthetists (as shared above)
Pharmacists (as shared above)
Airline pilots, copilots, and engineers: $91,000
General pediatricians (as shared above)
Computer and information research scientists: $77,000
Computer and information systems managers (as shared above)
Air trafic controllers: $74,000

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Top 5 Paying Jobs In Real Estate Investment Trusts

April 9, 2021 By Susan Paige Leave a Comment

Nowadays, people are more reluctant than ever to put all their savings into investment. There’s no denying that everybody’s main goal when investing is to make money fast, but factors such as the lack of accurate or approachable information and the fear of losing all their money may hold people back from stepping up and initiating their investment efforts. [Read more…] about Top 5 Paying Jobs In Real Estate Investment Trusts

What Is the Minimum Wage In Boise, Idaho

April 7, 2021 By Allen Francis Leave a Comment

Are you planning to move to Boise, Idaho anytime soon? Well, you will have a lot to adjust to when you do. Idaho is a landlocked state located in the northwestern region of the United States. Idaho is bordered by Washington and Oregon to its west, Nevada, and Utah to its south, Montana and Wyoming to its East, and Canada to the north. Just under 230,000 people live in Boise, Idaho. The potato is the state’s number one agricultural cash crop. The potato industry in Idaho was worth over $1 billion in 2020. Idahoans are potato crazy – on New Years’ they drop a giant potato symbol to ring in the new year. And when you eat French fries or tater tots, make sure you ask for “fry sauce,” which is a proprietary mix of ketchup and mayonnaise. Sodas are called “pop,” and not soda. Moving to Idaho could make you an unwitting criminal due to some archaic but unenforced laws. Just in case, don’t ride a merry-go-round carousel on Sundays or give someone a box of candy heavier than 50 pounds. And hating the rock band Nickelback seems to be a civic requirement in the state, so you are warned. Are you still interested in moving there? So, what is the minimum wage in Boise, Idaho?

Before you pack the U-Haul trailer, let’s talk more about the minimum wage in general, the minimum wage in Boise, Idaho, and some other states.

What is a Minimum Wage?

A minimum wage is the municipal, state, or federally required dollar amount that must be paid as a baseline salary for workers.

For example, the minimum wage on the federal level is $7.25. About 29 states have the same minimum wage. However, the federal minimum wage has remained unchanged since July 2009.

What you should keep in mind is that a state or municipal minimum wage can be lower than the federal minimum wage. There are two American states that pay wages a lot lower than $7.25 per hour.

The states of Wyoming and Georgia both pay a minimum wage of $5.15 per hour.

What Is the Minimum Wage in Boise, Idaho?

The minimum wage in Boise, Idaho is the same as the federal minimum wage – currently $7.25 per hour.

State legislation has recently been introduced to raise the minimum wage in Boise, Idaho to at least $15 per hour by 2023. The success of such legislation will not be known for some time.

The cost of living in Idaho is relatively lower than in other states. The typical rent ranges between $900 to $1,300. And you can buy a home for as low as $221,000.

A living wage is the amount of money you would need to make relative to the minimum wage to live a comfortable lifestyle. A single adult with no children would have to make at least $23,000 to $42,000 to live comfortably in Idaho.

If you were single with three children, you would have to make at least $76,000 annually. A household with two heads of household and three children would need to make at least $97,600.

Boise, Idaho is considered one of the most affordable, best, and safest places in the United States to live and raise a family. And Boise, Idaho features mild winters and summer and offers numerous opportunities for outdoor adventures all year round.

If you like peace and quiet, Boise, Idaho may be the right place for you. In some areas, there are less than three people per square mile due to the city’s low population density.

Minimum Wages in Nearby States

The minimum wage in Boise, Idaho is low but could be workable for you since the city has a low cost of living standard. But there are nearby states with higher minimum wages.

The minimum wage in Washington state is $13.69. And the minimum wage in Oregon is $12 per hour. You may want to also look into moving to these two states which also feature a relatively lower cost of living.

The point is that you should save (possibly from apps like SaverLife), create a budget, consider contingencies, investigate employment prospects, and do a lot of planning before you move to a new state.

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Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Weekly Wrap: Vaccine Passport Coming As Scams, Car Prices, IPOs All Trend Up

April 3, 2021 By Max Erkiletian Leave a Comment

One old dirty trick is still with us. However, other financial matters are changing quickly. Check out this week’s financial wrap.

Tax and Social Security Scammers Add to Their Bag of Tricks

The phone rings. Caller ID shows a Washington, D.C. number. You answer and an official-sounding recording says you are in trouble with the Internal Revenue Service (IRS). Or, your social security number has been used in criminal activity. You need to respond quickly.

You are on your way to losing money to a scam artist if you obey the instructions.

“Consumers reported losing more than $3.3 billion to fraud in 2020, up from $1.8 billion in 2019,” states a report from the Federal Trade Commission. “Nearly $1.2 billion of losses reported last year were due to imposter scams, while online shopping accounted for about $246 million in reported losses from consumers.”

Expanding Fraud Opportunities

The IRS and social security scams have been around for years. But now the same techniques are being used to take advantage of fraud related to COVID-19.

The crimes include stealing unemployment benefits, stimulus checks, fake COVID treatments, and bogus charities.

Formula for Fraud

The tried and true template for all these frauds is the IRS phone fraud. Although it can and has been carried out with texts and emails.

With IRS phone fraud, you get a call like the one detailed above. Fear is a big part of the scheme’s success.

The call seems official because it comes from a Washington, D. C. number. However, scammers spoof calls. That is where false information is used to make the call appear to come from a legitimate source. Some phone providers even offer spoofing services that work like prepaid calling cards.

The Call Is Not From the Government

“Government agencies like the Internal Revenue Service (IRS) or the Social Security Administration (SSA) won’t call, text, or email you out of the blue to demand payment right away,” writes FTC Attorney Emily Wu in an agency blog post.

The IRS Confirms Wu’s Assertion

“The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information,” the service says.

To help consumers, the IRS has posted a list of current scams.

To report a scam call, email or text, contact the FTC.

Here is how the FTC suggests you handle a government imposter call.

Here’s Why Your Next Car (New or Used) Will Cost More

You may have heard semiconductor chips are in short supply. The chip drought will short circuit any ideas you had about getting a bargain on your next car.

Semiconductors make up around forty percent of the cost of a new car, according to consulting firm Deloitte. Without them, modern automobiles can not function properly. Auto manufacturers around the world have slowed production as a result of the shortage. That means fewer new cars are coming to market.

Check out Saving Advice’s look into the semiconductor shortage and the impact it will have on your wallet. Our special cover will be available in Sunday’s edition.

IPOs Continue To Boom, SPACs Bust As Opportunity Opens for Small Investors

The surge in IPOs that began last year has charged into 2021 and is rising. Meanwhile, small investors are able to join the stampede.

Companies raised $174 billion on 494 offerings in 2020, according to FactSet, a financial data and software company.

“In aggregate, IPOs raised $174 billion in 2020, a 150% increase over 2019,” according to FactSet.

The number of companies raising over $1 billion set a record at 28. DoorDash and Airbnb both exceeding $3 billion.

IPO Market Off to a Strong Start in 2021

This year is shaping up as an IPO tsunami. Through mid-March, 302 IPOs have raised 102.3 billion, according to Dealogic.

SPACs Go Splat

The only sour note is the recent downturn in Special Purpose Acquisition Companies (SPAC).

SPACs are often called “blank check” companies. They are shell companies. These companies raise money through a stock offering to invest in other companies.

SPACs joined in the IPO surge last year. They now have an estimated $1 trillion in buying power, according to Business Insider. However, average SPAC returns are minus 34 percent between January 2019 and June 2020. Many are trading below their IPO price. Consequently, the market seems to be cooling.

Democratization

IPOs have long been reserved for wealthy and institutional investors. However, SoFi is trying to change that. The investment company is offering IPOs to clients with $3,000 or more in their account. Robinhood is planning to do something similar.

Vaccine Passports Are Coming

Soon, you may be asked to show your passport when you attend public events. No, not that passport. The one showing you have been vaccinated against COVID-19.

The Biden Administration is considering “vaccine passports”. These credentials would be displayed on free smartphone apps or printed.

The White House, various tech companies, local governments, and universities in the United States are trying to develop a credentials plan.

Global Effort

Internationally, the World Health Organization (WHO) is exploring vaccination passport ideas.

Several airlines are testing a digital travel pass developed by the International Air Transportation Association.

The European Commission is contemplating a “digital green certificate”. The voucher would be for travel within the European Union. It would be proof of vaccination, a negative COVID test, or a previous infection.

Everybody Has a Plan

Countries and organizations are researching or have announced plans to implement vaccination passports.

Israel is developing a “green pass” to travel. In Demark, a “Coronapas” will be required to enter hair salons, movie theaters, and restaurants, according to the BBC. Meanwhile, Sweden, Estonia, and Greece are also considering issuing vaccine passports.

Standardization

The potential for chaos is great.

The Federal Health IT Coordinating Council cited the need for one coordinated plan to avoid confusion.

The council stressed that “A chaotic and ineffective vaccine credential approach could hamper our pandemic response,” The Washington Post reported.

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