Author Archives: admin

Loss of Smell is the Most Reliable Indicator of COVID-19.

Aside

Mounting evidence has pointed to the loss of smell as one of the most reliable symptoms of COVID-19 and a majority of COVID patients report that they experience an altered or lost sense of smell or taste, according to Harvard Health Publishing.

A diminished or loss of the sense of smell, called anosmia, has emerged as one of the telltale symptoms of Covid-19, the illness caused by the coronavirus. Of all the early symptoms, this may be the clearest signal that you’re dealing with COVID and not something else, given how rarely this occurs in other illnesses. It is the first symptom for some patients, and sometimes the only one, according to the NY Times. Often accompanied by an inability to taste, anosmia occurs abruptly and dramatically in these patients, almost as if a switch had been flipped.

“Findings show that loss of smell and taste are highly reliable indicators that someone is likely to have COVID-19 and if we are to reduce the spread of this pandemic, it should now be considered by governments globally as a criterion for self-isolation, testing, and contact tracing,” Rachel Batterham, MD, study leader from University College London and University College London Hospitals, said in a statement. “People who notice a loss in their ability to smell every day household odors such as garlic, coffee, and perfumes should self-isolate and seek PCR testing.”

A recent study conducted by University College London, who studied 590 patients in the U.K. who reported suddenly losing either their sense of smell or taste; 567 of the patients were then given coronavirus tests. Their results, which were published in the journal PLoS Medicine on Oct. 1, showed that 80.4 percent of subjects reporting anosmia—aka, the loss of smell—and 77.7 percent of those who lost their sense of taste tested positive.

“There are altogether different things going on when it comes to smell and taste loss for COVID-19 patients, compared to those with a bad cold,” Carl Philpott, PhD, of the University of East Anglia’s Norwich Medical School, said in a statement on a related study. “It means that smell and taste tests could be used to discriminate between COVID-19 patients and people with a regular cold or flu.”

Scientists know little about how the virus causes persistent anosmia or how to cure it. Some experts fear that the pandemic may leave huge numbers of people with a permanent loss of smell and taste. The prospect has set off an urgent scramble among researchers to learn more about why patients are losing these senses, and how to help them.

If you find that you’ve lost your sense of smell or taste, it’s definitely time to isolate and get a COVID test. “Loss of smell and taste is a very common COVID-19 symptom and in fact, occurs more often than fever and lasts longer—five days on average compared to only two for fever,” explained Tim Spector, MS, professor of Genetic Epidemiology at King’s College London.

References:

  1. https://bestlifeonline.com/loss-of-smell-covid/
  2. https://www.nytimes.com/2021/01/02/health/coronavirus-smell-taste.html#click=https://t.co/GimBPkiMSI
  3. https://bestlifeonline.com/loss-taste-smell-coronavirus/

Financial Planning and Market Volatility

Posted on by

“The first rule of investment is ‘buy low and sell high’, but many people fear to buy low because of the fear of the stock dropping even lower. Then you may ask: ‘When is the time to buy low?’ The answer is: When there is maximum pessimism.”  Sir John Templeton

Market volatility is a fundamental part of trading and investing. When market volatility strikes, it’s common for investors to succumb to temptation and follow the herd to panic sell stocks.

Financial Planning is About Long-Term Goals

“All financial success comes from acting on a plan. A lot of financial failures come from reacting to the market.” Nick Murray

Setting financial goals—and sticking with your plan—is key to potential long-term success. Rather than letting market volatility change your long-term financial plans, it is important to stay focused on your long term goals and disciplined in your investment philosophy.

“Your financial goals aren’t set in stone,” according to Mark Gleason, senior manager of investment products and guidance at TD Ameritrade. “Circumstances change, and what you want might change. When that happens, it does make sense to change your approach.”

“Everyone has the brainpower to make money in stocks. Not everyone has the stomach. If you are susceptible to selling everything in a panic, you ought to avoid stocks and mutual funds altogether.” Peter Lynch

Just remember, the time to make adjustments to your long term financial plan are due to changes in life circumstances and should not be in response to market volatility. Here are four reasons to adjust your financial plan:

  1. Change in risk tolerance. If something has happened to change your risk tolerance, making tweaks to your financial plan can make sense. When a recent shakeup forces you to confront where you stand, it might be time to adjust your approach.
  2. New life events. Perhaps there’s been a death in the family. Or you’ve added a new baby to the mix. Maybe you’re getting married or going through a divorce. All of these life events can indicate a change in your financial planning approach.
  3. Shifting to a new life phase. Sometimes your approach needs to change as you actually start approaching your long-term financial goals. When you move from preretirement to actual retirement, your strategy is likely to change. Likewise, if you’ve been growing your child’s 529 and you’re worried about potential market volatility, you might make a few tweaks to the portfolio.
  4. Setting new financial goals. Most people set different financial goals as they move through life. Maybe you decide that buying a home isn’t the goal now; you’d rather get an RV and travel. Perhaps your target retirement age has changed. Whatever the new goal, you might need different financial planning in order to meet it.

Stay disciplined when investing.

Market volatility can cause discomfort, but it is important to realize that market volatility is short term and should not impact your long term goals and financial planning. You’ve set long-term financial goals designed to help you reach certain life milestones—and you don’t want to undo all your progress just to feel better during a market downturn.

“Why is staying the course so important?  As an extreme example, consider the investor who lost faith in the markets and cashed out on March 23, the low point in the U.S. stock market. Stocks subsequently rebounded more than 39% over the next three months; the unfortunate individual who moved to a money market fund earned a meager 0.14%. Vanguard’s analysis found that about 85% of investors who fled to cash would have been better off if they had just held their own portfolio.” (Source:  Vanguard, https://investornews.vanguard/a-snapshot-of-investor-behavior-during-a-downturn/)

Reference:

  1. https://tickertape.tdameritrade.com/investing/financial-planning-setting-financial-goals-amid-market-volatility-18160
  2. https://www.livewiremarkets.com/wires/ten-quotes-on-volatility-from-the-masters-of-the-market
  3. https://investornews.vanguard/a-snapshot-of-investor-behavior-during-a-downturn/

Creating a Comprehensive Financial Life Plan

Posted on by

A Financial Life Plan can help you get on the path to financial freedom.

A comprehensive life financial plan provides a picture of your current finances, financial goals and any strategies you’ve set to achieve those goals. The plan should include details of your cash flow, savings, debt, investments, and other elements of your financial life.

Creating a life financial plan can help bring things into focus—it’s like a roadmap to help you figure out how to reach your financial goals. a clear picture of what you want to accomplish, but the details of how to make it happen.

Financial planning involves identifying financial goals you want to achieve and making sure you have the “what-ifs” covered. This can help guide you through key decisions in life and make you less vulnerable to setbacks and financial hardships down the line. You can feel more confident about financial decision-making when you have a comprehensive plan to guide you. Your financial plan might cover a number of areas, from managing debt and saving for the future to building wealth and protecting your money.

Financial Life Planning connects our financial realities with our values and the lives we dream to live. It helps both pre-retirees and retirees identify their core values and connect them with their financial decisions and life’s financial, health and emotional goals.

It is a financial planning and investing approach which helps people align their investment portfolio with their values and with the things which are important to them. Think of it like a holistic roadmap for your financial well-being.

Financial life plan focuses on the emotional side of financial planning. It considers people’s anxiety, habits, behaviors and other emotions (e.g., fear and greed) tied to investing money and accumulating wealth. People struggling with retirement and other finances really need a plan that helps them manage their attitudes, habits, behaviors, goals and resources.

“The right plan, executed faithfully, can be the difference between success and failure in any endeavor.” Brett N. Steenbarger, Ph.D., author of The Psychology of Trading

Whether you need to reduce spending and eliminate debt, increase your savings, or just refine the details, once you understand your financial mindset and associated behaviors; once you know where you are and where you need to go financially—a financial life plan can provide a more coherent sense of direction.

Market downturns and investment risk management

During periods of high market volatility and declines, financial life planning, when done correctly, assumes there will be these periods of volatility, panic selling and downturns like the equity markets are experiencing today as a result of COVID-19 pandemic. Any actions taken to significantly reduce or eliminate equity allocation could result in investors coming up short in retirement.

The risk of outliving their assets might be the biggest risk that retirees face today. With many of Americans living longer and the rising costs of healthcare in retirement, most retirees need a level of exposure to stocks in their portfolio for growth and to maintain their standard of living.

Steps to creating a Comprehensive Financial Life Plan

  1. Develop a Positive Financial Mindset
    The most important step in developing and following a financial life plan is to examine your mindset about money.
    – Are you ready to accept responsibility for changing your financial situation?
    – Do you believe that you can and will change the way you make financial decisions?
    – Can you identify at least one benefit you hope to gain by changing your financial behavior?
    Financial mindset consists of a predetermined set of beliefs, thoughts, habits and behaviors an individual has about saving by paying yourself first, investing for the long-term and accumulating wealth for financial well-being.
    Every person has a set of financial beliefs, thoughts, habits and behaviors about money and personal finance. Even if they can’t express what their thoughts and mindset are, they still exist both consciously and subconsciously. Just by observing your own financial reality and outcomes, you can begin to better understand your financial mindset, behaviors and habits.
    Thus, it becomes important to develop and nurture a positive financial mindset. Since, it is difficult to develop the good financial habits and behaviors that will be necessary to lead to an improved financial outcome and overall financial well-being without a positive financial mindset.
  2. Write down your goals
    One of the first things you should ask yourself is what you want your money to accomplish. Financial goals will differ in the length of time needed to achieve them. Be sure every goal has a specific purpose, a dollar amount that it will cost, and a realistic target date. Make sure your goals are realistic and not set too high, or frustration may keep you from reaching them.
    – What are your short-term needs? Short-term goals are priorities that can be accomplished within two years.
    – Mid-term goals are priorities that can be accomplished within two to five years.
    – What are you saving for long term? What do you want to accomplish in the next 5 to 10 years? Long-term financial goals are priorities that may take more than five years to accomplish. Most long-term goals require investing.
    It’s easy to talk about goals in general, but get really specific and write them down. Which goals are most important to you? Identifying, prioritizing and aligning your goals with your values, your goals will act as a motivator as you dig into your financial details.
  3. Create a net worth statement
    Achieving your goals requires understanding where you stand today. So start with what you have.
    – First, make a list of all your assets—things like bank and investment accounts, real estate and valuable personal property.
    – Now make a list of all your debts: mortgage, credit cards, student loans—everything.
    – Next, subtract your liabilities from your assets and you have your net worth.
    If you’re in the plus, great. If you’re in the minus, that’s not at all uncommon for those just starting out, but it does point out that you have some work to do. But whatever it is, you can use this number as a benchmark against which you can measure your progress.
  4. Know your cash flow
    Cash flow simply means money in (your income) and money out (your expenses). It will show you if you’re spending more or less than you earn.
    – How much money do you earn each month? Be sure to include all sources of income.
    – Now look at what you spend each month, including any expenses that may only come up once or twice a year. Do you consistently overspend? How much are you saving? Do you often have extra cash you could direct toward your goals?
  5. Your budget and manage your expenses
    “A budget is telling your money where to go instead of wondering where it went.” John C. Maxwell
    For most people, financial success depend solely on how much they spend. This, it is important to find out where your money is going. Your budget will let you know how you’re spending.
    – Write down your essential expenses such as mortgage, insurance, food, transportation, utilities and loan payments. Don’t forget irregular and periodic big-ticket items such as vehicle repair or replacement costs, out of pocket health care costs and real estate taxes.
    – Then write down nonessentials—restaurants, entertainment, even clothes.
    Does your income easily cover all of this? Are savings a part of your monthly budget? Examining your expenses helps you plan and budget when you’re building an emergency fund. It will also help you determine if what you’re spending money on lines up with what is most important to you.
  6. Start (or build up) your emergency fund.
    Building a strong financial foundation starts with saving for emergencies. When you have a safety net for unexpected expenses, you don’t have to worry about throwing your budget out of whack. You can be confident that you’re ready for a car breakdown, home repairs, medical expenses or other emergencies that pop up. It’s OK to start small—saving $50 in an account you’ve designated for emergencies is a good starting point. You might work up to saving $1,000 and then eventually aim to save enough to cover three to six months’ worth of living expenses in an emergency fund. An emergency fund is essential because you need to absorb life’s surprises without making things worse. Without a stash of cash, you may have to take on debt for unexpected car troubles or surprise medical expenses. And, the fund can be kept in a savings account kept separate from your regular checking account. It’s not an account that should be dipped into often — unless there’s an emergency.
    If you already have an emergency fund, consider giving it a boost. An emergency fund should consist of three to six months’ worth of expenses, which is a different different amount for everyone. If you don’t think you’d survive financially if you missed a paycheck, then your an ideal candidate for needing an emergency fund.
  7. Focus on debt management
    Debt can derail you, but not all debt is bad. Yet, freedom from debt is an achievable goal for everyone.
    Some debt, like a mortgage, can work in your favor provided that you’re not overextended. It’s high-interest consumer debt like credit cards that you want to avoid. Try to follow the 28/36 guideline suggesting no more than 28 percent of pre-tax income goes toward home debt, no more than 36 percent toward all debt. Look at each specific debt to decide when and how you’ll systematically pay it down. Do you know how much debt you currently have (credit cards, student loans, auto loans, mortgage, etc.) and how long it will take to pay off each debt at your current rate of payment? It’s important to make a long-term plan for debt repayment so you can focus your efforts on the most efficient ways to reduce your debt. This might include tackling high-interest rate debts first or loan consolidation. Create a running list of all your loan balances and interest rates so you can see where you stand today and identify ways to make a dent in your debt. For example, you might make extra payments on your loan with the highest interest rate. A financial advisor can help you review your debt and create a debt elimination plan. Use our Debt Roll-Down Calculator to find the best way to pay off your credit cards.
    If you’ve been struggling with old debt, such as credit cards, student loans or medical bills, now is the time to pay them off for good. If you’re not sure which debt to pay off first, consider the one with the highest interest. High-interest debt, like credit cards, can compound through hefty interest charges, late fees and other penalties. pay down the principal of your student loan. The sooner you pay it all off, the less burden you carry.
  8. Get your (retirement) savings and investing on track by paying yourself first
    Whatever your age, retirement saving needs to be part of your financial plan. The earlier you start, the less you’ll likely have to save each year. You might be surprised by just how much you’ll need—especially when you factor in healthcare costs. But if you begin saving early, you may be surprised to find that even a little bit over time can make a big difference.
    Spending time today to plan your path to retirement can provide you peace of mind in the future. Getting started is the most important step you can take—it’s never too early or too late to save for retirement! The key is to continue saving consistently and make retirement savings a priority in your budget. Individual retirement accounts (IRAs) and employer-sponsored retirement plans, such as 401(k)s, offer tax benefits that can help your savings grow faster. As you near retirement, you’ll want to set a strategy for tapping retirement assets.
    Your financial plan should outline your retirement savings goals and ways to boost your savings (e.g., increasing your contributions every year or when you get a bonus or raise). Run the numbers using our Retirement Planner Calculator or review your retirement plans with a financial advisor.
    Calculate how much you will need and contribute to a 401(k) or other employer-sponsored plan (at least enough to capture an employer match) or an IRA. Save what you can and gradually try and increase your savings rate as your earnings increase. Whatever you do, don’t put it off.
    And, make the savings a priority by paying yourself first. This means that instead of saving what remains after paying your monthly expenses, individuals should pay themselves first by setting aside at least 10% to 15% of their monthly income as their first expense, and then pay the rest of their monthly expenses. Paying yourself means that your savings and other financial goals are taken care of before you allow yourself to spend money on less important items.
  9. College Savings.
    Parents and guardians face the challenge of balancing multiple financial demands, including your own retirement and future health care costs as well as education expenses for your dependents. Having a financial plan helps ensure you’re taking the right steps to address all areas of your financial life. Choosing the right college savings vehicle and planning ahead to take advantage of financial aid, loans and scholarships can help make college more affordable.
    Determine how much you want to save for college and the best way to grow your savings. Our College Savings Calculator can help you estimate how much you’ll need to save.
  10. Stay invested in the market for the long-term and check-in with your portfolio regularly.
    If you’re confident in your financial life plan and investment strategy, leaving your investments alone during short-term market corrections and Bear markets could help you accumulate wealth over the long-term and help ensure your retirement nest egg.
    When was the last time you took a close look at your portfolio? There are no guarantees when it comes to investing, but it seems that fear and uncertainty tends to put investors on the sidelines when markets plunge and become highly volatile.
    Markets go up and go down down in the short-term which can have a real effect on the relative percentage of stocks and bonds you own—even when you do nothing. And even an up market can throw your portfolio out of alignment with your feelings about risk. Don’t be complacent. Review and rebalance on at least an annual basis.
  11. Make sure you’re adequately insured
    Having adequate insurance is an important part of protecting your finances and family. Insurance is essential to protect your family and your financial future. Having health insurance, auto insurance and homeowners or renters insurance protects you when you need it. You may consider options for life and disability insurance, which can help protect your family’s finances if something happens to you. Review your insurance coverage and beneficiaries, especially if you’ve had any major changes in your family and life. A total risk assessment with an insurance professional can make sure you have the right level of coverage.
    We all need health insurance, and most of us also need car and homeowner’s or renter’s insurance. While you’re working, disability insurance helps protect your future earnings and ability to save. You might also want a supplemental umbrella policy based on your occupation and net worth. Finally, you should consider life insurance, especially if you have dependents. Review your policies to make sure you have the right type and amount of coverage. You never know what the future may hold—but it helps to be prepared for anything. What if you or a loved one experienced major medical issues or needed assisted living or nursing home care? Making decisions about long-term care can be stressful and emotionally difficult, and the costs can drain your family’s finances.
    You may want to explore options for long-term care insurance to help pay for long-term care needs such as nursing home care. You may also decide to write an advance care directive regarding your wishes for medical care and name a power of attorney to make financial decisions on your behalf if you’re unable to do so.
  12. Know your income tax rate
    Taxes are one of the most insidious destroyers of wealth, along with debt. You should make sure you’re prepared for the annual tax season and review your withholding, estimated taxes and any tax credits you may have qualified for in the past. The IRS has provided tips and information; take advantage of tax deferred accounts like IRAs and 401(k)s can help you save money on taxes and accumulate wealth more efficiently.
  13. Create or update your will and estate plan
    At the minimum, have a will—especially to name a guardian for minor children. Also check that beneficiaries on your retirement accounts and insurance policies are up-to-date. Complete an advance healthcare directive and assign powers of attorney for both finances and healthcare. Medical directive forms are sometimes available online or from your doctor or hospital. Working with an estate planning attorney is recommended to help you plan for complex situations and if you need more help.
  14. Invest in yourself and continue to learn
    “An investment in knowledge pays the best interest.” Benjamin Franklin
    While college is a great self-investment, there are other ways you can invest in yourself. Consider taking courses in a field or industry you’re interested in pursuing.
    If you’ve been contemplating a career change, use your money to invest in that switch. If you need capital to start your own business, this could be your chance. Also consider using it to give yourself a much-needed break. Whether this is a vacation fund or simply money for a massage or spa day to recharge, reset and refocus. Focused on what would improve your well-being in the long-term, not a quick fix. Continuous learning and growth are the key.
  15. Three Pillars (financial wealth, physical health and emotional well-being)
    Financial assets like stocks, bonds and real estate are forms of personal wealth. However, Americans need to also focus their attention on staying emotionally and physically healthy. Self-care is paramount in all three facets of life which include financial wealth, physical health and emotional well-being. Eating a balanced diet, exercising, getting enough sleep and connecting regularly with family and friends, are essential to live a purposeful and fulfilling life.
  • Take control of your future with a financial plan for the next five, ten or more years.
  • Insurance Protection. Ensure you have adequate Medical insurance and consider purchasing Long-Term Care insurance.

References:

  1. https://www.brownleeglobal.com/financial-life-planning/?preview=true&frame-nonce=60592dd178
  2. https://www.schwab.com/resource-center/insights/content/10-steps-to-diy-financial-plan?SM=uro#sf228155652
  3. https://www.cnet.com/personal-finance/how-to-invest-your-tax-refund/
  4. https://www.moneymanagement.org/credit-counseling/resources/financial-literacy-month

Financial Literacy and COVID-19 | Charles Schwab Foundation

Posted on by

“89 percent of respondents to a Charles Schwab’s survey believe a lack of financial literacy contributes to larger social issues—from poverty, to fewer job opportunities, to wealth and gender inequality.” Carrie Schwab-Pomerantz

  • Even in the wake of a global health crisis, Americans value financial education.
  • An overwhelming majority of Americans believe that a lack of financial literacy contributes to larger social issues.
  • Americans want our schools to take the lead in providing our youth with a financial education.

The impact of financial illiteracy is not lost on the American public. 89% of Americans agree that lack of financial education contributes to some of the biggest social issues our country faces, including poverty (58%), lack of job opportunities (53%), unemployment (53%), and wealth inequality (52%).

“Financial illiteracy is insidious. The antidote is financial education, which gives people the skills they need to make smart money decision and can help improve their lives.” Carrie Schwab-Pomerantz, president of Charles Schwab Foundation.

Americans indicated they wish they had better money management skills, according to a Charles Schwab survey. When asked what they would teach their younger selves about personal finance based on what they know today, Americans said the value of saving money (59%), basic money management (52%), and how to set financial goals and work toward them (51%).

From the survey, it is apparent that every person in America should be taught the fundamentals of money management including budgeting, saving, avoiding debt, setting financial goals and investing.

“The pandemic has underscored just how critical basic personal finance skills are in preparing for the unexpected. Financial literacy is a survival skill that everyone needs.” Carrie Schwab-Pomerantz

Carrie Schwab-Pomerantz recommends five key steps every American can take to help shore up their finances during this period of global health crisis and economic uncertainty.

  • Start an emergency fund (or add more to it) to help protect yourself against an unexpected drop in income or expense shock. Set aside whatever you can – every little bit counts. Try to aim for $1,000-$2,000 to get started, and then work your way up to 3-6 month worth of essential expenses over time.
  • Create a budget to help you prioritize and assess your financial resources. Self-isolation has led to different spending patterns for many people, including cutting back on what we may have previously thought of as “essential.”
  • Create a financial plan to help you navigate from where you are to where you want to be. You don’t need to have a lot of money to need a financial plan. Consider it a roadmap to reach your financial goals, whether that’s to pay off debt, build savings, or make a large purchase.
  • Ask for help if you’re struggling. Given the scale of this economic crisis, the government, lenders and creditors are trying to work with borrowers through this difficult time. Don’t hide from creditors – that can make things worse.
  • Focus on what you can control. You can’t predict or control the market, but you can control how you manage your investments, your savings rate, having a financial plan and how you react to events.

“The need for financial literacy is especially urgent for women and minorities, who continue to face unique challenges at home and in the workplace,” said Schwab-Pomerantz.

However, financial literacy isn’t a cure-all, but it is an essential key to unlocking doors to opportunity and financial security.

References:

  1. https://www.schwab.com/resource-center/insights/content/americans-want-financial-literacy-now?SM=URO#sf237483690
  2. https://pressroom.aboutschwab.com/press-releases/press-release/2020/Charles-Schwab-Financial-Literacy-Survey-Exposes-Grave-Impact-of-Lack-of-Financial-Education-During-COVID-19/default.aspx

Focus and Mindset

Posted on by

“Anything is possible if you have the mindset and the will and desire to do it and put the time in.” Roger Clemens

Financial mindset consists of a predetermined set of beliefs, thoughts, habits and behaviors an individual has about saving by paying yourself first, investing for the long-term and accumulating wealth for financial well-being.

Every person has a set of beliefs, thoughts, habits and behaviors about money and personal finance. Even if they can’t express what their thoughts and mindset are, they still exist subconsciously. By observing your own financial outcomes, you can begin to better understand your financial mindset, behaviors and habits.

Without a positive financial mindset, it is difficult to develop the good financial habits and behaviors that will be necessary to lead to an improved financial outcome and well-being.

A positive financial mindset means knowing that if you just hang in there long enough, things will work out financially with the correct financial habits and behaviors. Even if you partake in one positive action each day, your confidence and belief will grow, along with your wallet.

Focus and Thoughts

“If you’re trying to achieve, there will be roadblocks. I’ve had them; everybody has had them. But obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.” Michael Jordan

Mindset is basically about your thoughts and a harbinger of what you focus on in the short and long term.

When you focus a thing, be it positive or negative, your mind has a tendency to heighten your attention on that thought. As a result, by focusing on one thing, such as the fear and uncertainty caused by the COVID-19 pandemic, you have a tendency to miss other things good and positive happening around you. Essentially, your focus becomes the filter in which you observe your world.

Focus on opportunities

“No matter how dark things seem to be or actually are, raise your sights and see the possibilities, always see them, for they’re always there.” Norman Vincent Peale

This too will pass is a common refrain worth remembering in trying times like these created by the pandemic. History and good old common sense tells us that crises always come to an end and this COVID-19 will be no different.

We can control our thoughts, mindset and where we focus our attention. Thus, it behooves us to focus our thoughts on those things we can control and to think about what we need to do now, in the short term, to survive the current storm and prepare our paths for future opportunities and better days.

It’s about doing things now, in the downtime, in order to be prepared and prime to operate in the uptime. It is about laying the groundwork for tomorrow’s long-term financial success during today’s challenging times.

By focusing on the negative and on things outside our control, we can miss the other things and opportunities happening around us.

Positive Attitude

“Our attitude toward life determines life’s attitude towards us.” John N. Mitchell

Nothing is going to change in your life unless you change a negative attitude and mindset. And, you can change your life almost immediately if you can change your attitude and mindset. Many have said that, “A bad attitude is like a flat tire. If you don’t change it, you’ll never go anywhere.”

Furthermore, John N. Mitchell said it best when he said that, “Our attitude toward life determines life’s attitude towards us.” We’ve all heard about the power of our attitude, and that it’s our attitude can determine the altitude of your success in life.

References:

  1. https://www.verywellmind.com/what-is-a-mindset-2795025
  2. https://www.cnbc.com/2020/04/30/why-you-should-create-a-daily-money-mindfulness-practice.html
  3. https://graciousquotes.com/norman-vincent-peale/

Melatonin and COVID-19

Posted on by

Researchers at the Cleveland Clinic, using AI, found that those who regularly took the sleep hormone melatonin were about 28 percent less likely to test positive for COVID—with Black patients showing an even greater reduced likelihood of 52 percent.

Through the use of artificial intelligence, results from a Cleveland Clinic led study suggests that melatonin, a hormone that regulates the sleep-wake cycle and is commonly used as a sleep aid, may be a viable treatment option for COVID-19.

Melatonin supplements are commonly recommended by many health professionals to help induce sleep, according the the Cleveland Clinic. Research has found that taking melatonin in low doses is the most effective way to promote sleep if you are experiencing restlessness, sleeplessness or insomnia.

Melatonin naturally produced by our bodies

The hormone serotonin (which regulates mood, appetite and memory) is produced during the day and this changes to melatonin when it gets dark outside, Cleveland Clinic reports. Peak levels of melatonin are produced before 3 a.m., when it sharply decreases before natural daylight returns.

Researchers at the Cleveland Clinic were able to sort through data on over 27,000 patients in a COVID-19 registry to find any commonalities. Interestingly, results showed that those who regularly took melatonin were about 28 percent less likely to test positive for COVID—with Black patients showing an even greater reduced likelihood of 52 percent.

Researchers admit that they don’t entirely understand what “exact mechanisms” about melatonin provide extra protection against COVID, including whether or not it’s because patients are sleeping better, longer hours, the New York Post reports.

Some studies have shown that melatonin can reduce chronic and acute inflammation. And, a recent study from the University of Toronto published in the journal Diseases found that melatonin could help boost the efficacy of the coronavirus vaccine, calling it a potential “silver bullet” in the fight against the pandemic.

Health experts know that the coronavirus can trigger “a massive inflammatory reaction,” also known as a “cytokine storm,” in the body that can lead to permanent tissue damage, heart injury, acute respiratory distress syndrome (ARDS), organ failure and death, according to a study published in the journal Frontiers in Medicine.

Melatonin can control and reverse this immune response, suggesting it may have beneficial effects in preventing or reducing the inflammation overload.

Short-term use of melatonin has relatively few side effects and is well-tolerated by the majority of people who take it, according to the Sleep Foundation. The most commonly reported side effects are daytime drowsiness, headaches, and dizziness, but these are experienced by only a small percentage of people who take melatonin.

References:

  1. https://consultqd.clevelandclinic.org/melatonin-a-promising-candidate-for-prevention-and-treatment-of-covid-19/
  2. https://health.clevelandclinic.org/melatonin-how-much-should-i-take-for-a-good-nights-rest/#:~:text=It%20is%20sold%20over%20the%20counter%20in%20a,Advertising%20on%20our%20site%20helps%20support%20our%20mission.
  3. https://bestlifeonline.com/melatonin-covid/
  4. https://nypost.com/2020/12/29/scientists-study-melatonin-as-possible-covid-19-treatment/amp/?__twitter_impression=true
  5. https://www.miamiherald.com/news/coronavirus/article248150170.html
  6. https://www.sleepfoundation.org/melatonin

Kaizen – Daily Incremental Change for Better

Posted on by

Always learning. Continuous improvement…get 1% better everyday.

Lifelong learning, the ongoing, deliberate, and self-motivated pursuit of knowledge can enrich your life and make you a better person every day. When lifelong learning is fused with the practice of Kaizen, or continuous improvement, they form a powerful approach for improving yourself. Kaizen is the practice of improving yourself or a process by taking small, incremental, daily actions, which then forms habits that stick and, ultimately, makes you succeed. The word kaizen simply means “change for better.” In the context of people, it refers to continuous self-improvement.

Kaizen was developed by American businessmen.

The U.S. didn’t have a multi-trillion dollar defense budget and was not financially able to efficiently build new armament factories to fight World War II. A plan was devised to support the war effort to have industries make small, continuous improvements to existing plants and retrofit their factories to build the new weaponry.

This system grew into a business philosophy. Factory floor supervisors were challenged to look for hundreds of small things to improve upon, as there was not enough time or resources to make sudden big changes to their equipment.

America introduced the concept to Japan after World War II in an effort to help rebuild their war devastated economy. The Japanese took this idea and enhanced it. The idea of small, continual, incremental improvements became known as Kaizen.

“When you improve a little each day, eventually big things occur. When you improve conditioning a little each day, eventually you have a big improvement in conditioning. Not tomorrow, not the next day, but eventually a big gain is made. Don’t look for the big, quick improvement. Seek the small improvement one day at a time. That’s the only way it happens — and when it happens, it lasts.”— John Robert Wooden, the “Wizard of Westwood”

The philosophy of Kaizen can be incredibly helpful in your personal and professional lives. Instead of trying to make radical life changes overnight, you should start with small, daily improvements.  

Focus on getting 1% better each and every day.

Small-scale incremental improvements start compounding on the previous day’s accomplishment. At first, the changes will seem inconsequential. Gradually, you’ll start to notice improvements. Over time, there will be profound positive changes. One percent compounds each day and doubles every 72 days.

Find something that you’d like to improve upon and try to do 1% better than the day before. Don’t get tempted or become impatient and rush headfirst into everything all at once. Your mantra should be to take it slow, steady, consistent and focus on doing things a little bit better than you did the day before.

Just like you shower, floss and brush your teeth, and comb your hair every day, incorporate Kaizen self-improvement techniques into your daily routine, and you will be amazed at the long-term and lasting results.

Most people want one big quick fix, but these attempts frequently fail. Instead, small improvements produce results that you can see overtime, and this will be gratifying and encouraging.

Lifelong learning combined with becoming 1% better everyday are simple, practical ways to achieve continuous growth and big goals. They’re easy. They’re doable. And they’re applicable to most things you want to learn, do or accomplish in your life.

References:

  1. https://www.forbes.com/sites/jackkelly/2019/01/17/the-practice-of-kaizen-will-help-you-improve-1-per-day-and-lead-to-amazing-long-term-success/?sh=4a01467259a1
  2. https://thriveglobal.com/stories/the-kaizen-approach-to-achieving-your-biggest-goal-the-philosophy-of-constant-improvement/?utm_medium=Twitter&utm_source=Arianna
  3. https://www.inc.com/minda-zetlin/kaizen-continuous-improvement-self-improvement-1-percent-goals-thomas-oppong.html?cid=sf01001

The Novice Investor

Posted on by

Many successful investors follow this one rule of thumb: Never invest in something you don’t understand.

If you’re new to investing, figuring out how to get started and where to start your investing journey can be challenging. First things first before you invest, set goals, create a financial plan, and save and invest over a long-period-of-time will help put you on a path toward building a strong financial future.

Moreover, it’s important to think about what are the reasons and goals you want to save and invest for in life−a house, an emergency fund, retirement. Then decide your financial priorities and plan accordingly. Keep in mind that when you start early, your money grows through the magic of compounding.

When creating your financial plan, you should also consider paying yourself first and paying off any high-interest debt. For example, the interest rate on credit cards is often far higher than the returns you can expect from your investments. No investment strategy pays off as well as, or with less risk than, eliminating high interest debt.

The first steps to successful investing include:

  1. What is your current cash flow (income – expenses) and net worth (assets – liabilities)?
  2. How much are you going to invest?
  3. For how long? What are your financial goals?
  4. Do you understand your tolerance for risk? All investments carry some risk.

You’re money can grow when you save and invest wisely.

The actions toward financial freedom and building wealth include three basic steps: first, pay off high-interest debt; second, set goals and make a financial plan; and third, start saving and investing early and often.

Knowing how to secure your financial well-being is one of the most important things you’ll ever need in life. And, you don’t have to be a financial genius to do it. You just need to know a few basics financial rules, create a plan, and be prepared to stick to it. No matter how much or little money you have, the important thing is to focus on getting started, to become financially literate and to educate yourself about your opportunities.

As a first-time investor, you should always ask yourself a few questions before you commit your hard-earned money and capital to an investment. In addition, new investors should check the background of anyone or any company promoting an investment opportunity, even before learning about opportunity itself.

  1. Do you understand the investment? Many successful investors follow this simple rule: “Never invest in something you don’t understand.” Be sure to always read an investment’s prospectus or disclosure statement carefully. If you can’t understand the investment and how it will help you make money, ask a trusted financial professional for help. If you are still confused, you should think twice about investing.
  2. How do the risks compare with the potential rewards? Can you afford to lose the money or capital you are about to invest? The potential for greater returns comes with greater risk. Understanding this trade-off between risk and reward can help you since investments with greater risk may offer higher potential returns, but they may expose you to greater investment losses. Keep in mind every investment carries some degree of risk.
  3. Where can you turn for help? Whether checking out an investment professional, researching an investment, or learning about new products or scams, unbiased information can be a great advantage when it comes to investing wisely. Make a habit of using the information and tools on securities regulators’ or third party websites

As a initial step, it’s important to understand your financial goals, the different kinds of accounts, and investments that can get you moving in the right direction.

  • Stocks.  When you buy a stock, you own a piece of a company and its cash flow and profits. Stocks have high growth potential, but with that comes high risk.
  • Bonds. Bonds are loans where you’re the creditor. You lend money to the bond issuer in exchange for repayment with interest by a certain date. Bonds are considered moderate-risk investments.
  • Cash. Cash in your portfolio can preserve the value of your money when you’re saving for short-term goals. It carries the least risk when it comes to losing money in the short term, but there’s also not much potential for growth and in the long term there is risk of inflation and lost purchasing power.

No one can provide an 100% guarantee that you’ll make money from investing. But if you get the facts about investing and follow through with an intelligent investment plan, you should be able to gain financial security over the long term and enjoy the benefits of managing your money.

No one is born knowing inherently how to save or to invest wisely. Every successful investor starts with learning the basics and getting started. For most people, the only way to attain financial security is to save for the future and invest over a long period of time.

Time after time, people of even modest means who begin the saving and investing journey reach financial security and all that it promises: buying a home, educational opportunities for their children, and a comfortable retirement. If they can do it, so can you.

References:

  1. https://www.investor.gov/introduction-investing/getting-started/five-questions-ask-you-invest
  2. http://investornews.vanguard/getting-started-with-investing/
  3. https://blogs.va.gov/VAntage/68037/serving-americas-veterans-providing-tips-investing-future/
  4. https://www.investor.gov/additional-resources/spotlight/directors-take/military-service-members-immediate-actions-financial

Zoom Calls Aren’t as Private as You May Think | Consumer Reports

Posted on by

This year has been a challenging year for everyone, throwing just about everything into disarray and forcing people to change the way they live, work and play. Which is where where Zoom come in. Zoom has become one of the primary video conferencing software tools for conducting remote/virtual meetings.

Privacy concerns

Zoom seems to be the video conferencing tool that can do it all. Yet, Zoom does collect and share copious amounts of personal information and data about its users and doesn’t provide a lot of detail about how it’s used for advertising, marketing, or other business purposes, according to Consumer Reports. Users of video conferencing services such as Zoom and Ring Central should think about data-privacy concerns similar to other online platforms such as Facebook or Google.

Most people on Zoom calls don’t realize how much information the company and a host can gather. Depending on what tier of service—from a free option to advanced levels for big companies—a host can make a recording of the conference, have it transcribed automatically, and share the information later with people who aren’t in the meeting.

the free and low-cost versions are also being used by individuals for everything from therapy sessions to video lessons with guitar legends to informal gatherings.

Look at the privacy issues from two perspectives. The first thing to understand is what information Zoom itself can collect, and what it can do with the information. Then there’s the information that the meeting host gets and how it can be shared.

Individuals can take some measures to safeguard their privacy by changing the way they use the service. But Consumer Reports’ advocates say that Zoom should also improve the platform’s privacy practices.

Zoom’s privacy policy is similar to many digital platforms’, claiming the right to collect and store personal data, and share it with third parties such as advertisers.

In Zoom’s case, that extends to what the company calls customer content, or “the content contained in cloud recordings, and instant messages, files, whiteboards … shared while using the service.”

Videos aren’t off-limits, according to the document, and neither are transcripts that can be generated automatically, the documents you share on your screen, or the names of everyone on a call.

Your instant messages and videos could be used to target advertising campaigns or develop a facial recognition algorithm, like videos collected by other tech companies “Zoom isn’t necessarily doing anything users would object to” with the data, says Bill Fitzgerald, a Consumer Reports privacy researcher who analyzed the company’s policies. “But their terms of use give them a whole lot of leeway to collect information and share it, both now and in the future.”

Zoom Hosts

Zoom video conferences are started by what the company calls a “host.” Unlike other services you may have used, Zoom provides the host with rights that might not be immediately apparent to other participants.

A Zoom host can be someone you know, like a friend, an employer, a client, a school official, or a relative stranger from a social gathering. “Zoom puts a lot of power in the hands of the meeting hosts,” says Justin Brookman, director of privacy and technology policy at Consumer Reports. The host has more power to record and monitor the call than you might realize if you’re just a participant, especially if he or she has a corporate account. There are a few things you should know when you’re on a call.

When the video is being recorded, a small red button pops up along with the word “recording” in small type. If a host records a conference, the video could be passed around the same way any video makes the rounds on social media. For that reason, Consumer Reports is recommending that Zoom require participants to click on a consent button before recording can begin. Zoom already has this feature available, but it’s off by default.

Zoom provides hosts with a feature that appears quite intrusive. The host can turn on “attention tracking” to monitor whether any participant clicks away from the Zoom window for more than 30 seconds while a screen is being shared.

CR’s and other online privacy experts have some advice for enhancing your privacy while using Zoom.

  • Keep your camera and mic turned off unless you’re actually speaking. If you feel that you need to have the camera turned on, choose a photo as the background for your video.
  • Do not use Facebook to sign in since it is a poor security practice and dramatically increases the amount of personal data Zoom has access to.
  • Keep your Zoom app updated.
  • Prevent intruders and Zoombombing on your calls: Before you set up a public Zoom call, go to Settings and turn Screen Sharing to “Host only,” disable “Join Before Host,” disable “Allow Removed Participants to Rejoin,” and disable “File Transfers.” If practical, you should also protect your conference call with a password.

References:

  1. https://www.consumerreports.org/video-conferencing-services/zoom-teleconferencing-privacy-concerns/
  2. https://protonmail.com/blog/zoom-privacy-issues/