World Mental Health Day

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“Nothing can dim the light that shines from within” ~ Maya Angelou

Today, Sunday, October 10, 2021, is World Mental Health Day.

World Mental Health Day is an opportunity to increase awareness of mental health issues and break down stigma.

This year’s theme is: “Mental Health Care for All: Let’s Make it a Reality” #WorldMentalHealthDay.

The pandemic has had a major impact on people’s mental health, so it is important to take a step back and focus on maintaining a healthy mind and to focus on mental and emotional well-being.

Key Mental Heath facts:

  • Close to one billion people globally have a mental disorder and anyone, anywhere, can be affected.
  • Young people are struggling most with their mental health. The proportion of youth ages 11-17 who accessed screening was 9 percent higher than the average in 2019. Not only are the number of youth searching for help with their mental health increasing, but throughout the COVID-19 pandemic youth ages 11-17 have been more likely than any other age group to score for moderate to severe symptoms of anxiety and depression.
  • Depression is a leading cause of disability worldwide and is a major contributor to the overall global burden of disease. Globally, it is estimated that 5% of adults suffer from depression.
  • Globally, one in seven 10-19-year-olds experience a mental disorder. Half of all such disorders start by age 14 years but most are undetected and untreated.
  • People with severe mental disorders such as schizophrenia tend to die 10-20 years earlier than the general population.  
  • One in every 100 deaths is by suicide. It is the fourth leading cause of death for young people aged 15-29 years.
  • The COVID-19 pandemic has had a considerable impact on people’s mental health. People screening at risk for mental health conditions are struggling most with loneliness or isolation. From April to September 2020, among people who screened with moderate to severe symptoms of anxiety or depression, 70 percent reported that one of the top three things contributing to their mental health concerns was loneliness or isolation.

Today is an excellent opportunity to discuss mental health in general, how to eliminate the stigma associated with it, and the necessity of speaking out when dealing with a mental health problem.

Simple ways to focus on your mental health and emotional well-being

Taking care of yourself emotionally and mentally should start with your first thoughts and actions of the day. Instead of checking social media, draw in a few deep breaths, and think of three things you’re grateful and thankful for. These can be significant, like your spouse, job or health, or modest, like the weather, the view from your window, or even the luxury of those first breaths.

There are a number of actions or activities you can try if there are times when you’re not feeling at your best mentally or emotionally:

  • Take part in a physical activity – this can include things like walking, dancing, cycling and even a game of hide and seek or tag!
  • Spend time with supportive people – these could be friends, family members or people at school or church – even if you aren’t able to meet in person, virtual meetings can be just as beneficial.
  • Make sure you’re getting enough sleep.
  • Spend time outdoors.
  • Plan something to look forward to like reading a new book, baking something tasty, or taking part in a sport or activity you love.
  • Consume a healthy and balanced diet, which includes treating yourself occasionally, and eliminating alcohol and drugs.
  • Help others as giving back can help you feel better.

Source: Mental Health America

References:

  1. https://www.who.int/health-topics/mental-health#tab=tab_1
  2. https://www.mhanational.org/issues/state-mental-health-america

Systemic Racism and Unconscious Bias in America

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“I look to a day when people will not be judged by the color of their skin, but by the content of their character.” Reverend Dr. Martin Luther King, Jr., “I have a dream speech”

Over the past centuries, Americans have permitted systemic racism and unconscious bias to affect how an entire race and class of people are mistreated – by the justice system, by the penal system, by the social welfare system, by the education system, by the financial system, and the list goes on – because of the color of their skin, stated Chamath Palihapitiya, founder and CEO of Social Capital. In no reasonable, moral worldview is this acceptable.

The salient point is that equality, for all Americans, is an essential pillar of the US democracy and its capitalist economy…not a discretionary feature that can be arbitrarily turned off and turned on based on the whim of public and private leaders.

Conversely, we, as a nation, can’t fix what we don’t acknowledge and we need to acknowledge that systemic racism and unconscious bias have happened and continues to happen, and begin the hard work of finding solutions.

One solution

“We can’t solve problems by using the same kind of thinking we used when we created them.” Albert Einstein

In the past eighteen months since George Floyd murder at the knee of law enforcement, many private sector companies are embracing their role in creating more equitable workplaces, addressing societal racial inequality and even donating to causes working to end racism. Robert F. Smith, Founder, CEO and Chairman of Vista Capital, argues that if we want to see lasting, meaningful change, the private sector’s efforts to address structural racism, we need the private sector to step up and deploy “permanent capital” — meaning investments and commitments that are scalable and focused on the long-term. 

Specifically, companies should designate 2% of their yearly earnings to closing racial opportunity gaps, diversifying their boards and pension managers, making higher education more affordable, and addressing disparities that they’re uniquely qualified to help solve.

For example, telecommunications companies have a “special responsibility to end connectivity deserts” where one in three Black households have no broadband internet or computer access, according to Smith.

Health care companies can work to address racial health inequities, and software companies can make affordable tools to help Black sole proprietors and small business owners better handle payroll and customer acquisition. 

“It is all too easy to let the urgency of a moment fade away with little to show for it,” Smith said. “Let’s meet this moment. We have the tools, the technologies and the access to capital to do it. All we need is the willpower to see this through.” 

References:

  1. https://www.socialcapital.com/annual-letters/2020
  2. https://www.washingtonpost.com/opinions/2020/07/15/how-companies-can-make-practical-commitments-achieve-economic-justice/

Robert F. Smith, Blazing a Remarkable Path

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American investor, inventor, engineer, philanthropist, entrepreneur. Robert F. Smith is the Founder, Chairman and CEO of Vista Equity Partners, focused on investing and partnering with leading enterprise software companies.

The software titan Robert F. Smith is a philanthropist and the wealthiest African American in the U.S., with a self-made net worth of more than $5 billion. He was raised in a working-class Denver neighborhood in the 1970s. And, it was a high-school science class in his junior year that sparked his interest in transistors, the building blocks of computers, cellphones and other electronic devices.

Mr. Smith was educated as an engineer at Cornell University, earning his B.S. degree in Chemical Engineering in 1985. After graduation, he worked at Goodyear Tire and Rubber, followed by Kraft General Foods, where he obtained two United States and two European patents for coffee filtration systems.

Upon receiving his MBA in 1994, he joined Goldman Sachs in tech investment banking, first in New York City and then in Silicon Valley. At Goldman, he advised tech companies such as Apple, Yahoo and Microsoft on over $50 billion of mergers and acquisitions activities. Mr. Smith knew his talents and his niche, and Goldman gave him the platform to showcase them. He became the first person at Goldman to focus purely on mergers and acquisitions of technology and software companies.

In 2000, Mr. Smith founded Vista Equity Partners to invest in businesses that develop and use technology, software and data to promote economic equity, ecological responsibility and diversity and inclusion for the prosperity of all. Vista invests and develops businesses focused on using tech to create value, new businesses, or helping to solve some of the world’s issues.

He is Founder, Chairman and CEO of Vista Equity Partners, which includes 64 companies. Companies like TIBCO, a technology company. He climbed from humble roots in Denver to the pinnacle of the 1990s dot-com boom as a Goldman Sachs banker in San Francisco; he went on to found Vista in 2000 in Austin, Texas.

Vista currently manages equity assets under management of over $81 billion and oversees a portfolio of more than 70 enterprise software, data and technology-enabled companies that employ over 75,000 people worldwide.

Vista had grown into an impossible-to-overlook force, delivering a 31 percent average annual return since its founding. “Vista Equity Partners Emerges from ­Private-Equity Shadows” read a Wall Street Journal headline.

Mr. Smith is also the founding director and President of the Fund II Foundation. Started in 2014, the foundation has made significant contributions to support scholarships for minority students interested in science, engineering and math, research on breast cancer in Black women and the preservation of Martin Luther King Jr.’s birth and family homes. It also backed Mr. Smith’s recently announced Student Freedom Initiative to ease the debt burden of students at historically Black colleges and universities.

Throughout all of his successes, Mr. Smith has demonstrated the importance of giving back. In 2017, Mr. Smith signed the Giving Pledge and was the first African American to do so. In his pledge, Mr. Smith committed to investing half of his net worth during his lifetime “to causes that support equality of opportunity for African Americans, as well as causes that cultivate ecological protection to ensure a livable planet for future generations.”

But it took a grand gesture at Morehouse College to cement Smith’s status as one of the world’s most interesting philanthropists. To the shock of Morehouse officials, Smith went off-script during his commencement speech and told the 396 graduating students that he would pay off their student loans at a cost to him of about $40 million.

“I was looking at 400 students 400 years after 1619,” he says, referring to the beginning of American slavery. “And they were burdened. And their families were burdened. They had taken on a tremendous amount of debt to get that education. And liberating them was the right thing for me to do. Honestly, I didn’t think it was going to be that big of a deal,” he continued. “I mean, globally. I didn’t realize how many people understood the pain and debilitating effect that student debt has for decades—not just on that individual but on families.”

Mr. Smith believes strongly that “anyone can achieve success if they believe they are worth it and think deeply about how to achieve their goals.”

From an August 2020 article in Urbjournal.com, here are 5 pieces of advice Mr. Smith gives to all young professionals:

  1. You need to recognize and use all your skills – Understanding and evaluating your skillset is important; it will let you know what skills you have and more importantly, which ones you need to improve or acquire. It will also give you a very good indication as to who you need on your team, depending on what skills they have.
  2. Give yourself the best chances of succeeding – To achieve a level of success, you’ll need to give yourself the best chances of succeeding by picking promising sectors and business industries which are projected to grow in the long-term. By focusing on growing and promising industries, you’ll give yourself the best chance of coming up with innovative products, services or solutions that create demand.
  3. Learn to take risks – Taking risks whilst you’re young is important. Smith has consistently taken risks. “So what makes me tick? I didn’t want to be ordinary. I wanted to create something that had not been done on this planet,” Smith said. Taking risks doesn’t mean jumping into any and everything – that can be as detrimental as not taking enough risks. In Smith’s words, “take thoughtful risks”.
  4. Recognize the importance of diversity, and work to increase it – Diversity has become increasingly important to companies, everyone is looking at ways to increase the diversity of their leadership and people. And, Black professionals have an important role to play: yet, to become successful, you first have to get through the door by creating processes and institutions which value equal opportunity above all else. “We must get as much mass pushed through the system by opening up the process as wide as you can. We need to take that approach instead of going retail in which corporations only select one or two exceptional students from elite schools,” Mr. Smith said.
  5. You’ll need to make sacrifices – It’s no secret that to achieve success, you’ll need to make some sacrifices. For Mr. Smith, it was work-life balance: “Our world isn’t designed for spectacular success and a balanced life” he said in an interview.

References:

  1. https://www.vistaequitypartners.com/about/team/robert-f-smith/
  2. https://www.townandcountrymag.com/society/money-and-power/a32804478/robert-f-smith-summer-2020-cover-interview-philanthropy/
  3. https://2021.vistaequitypartners.com
  4. https://urbjournal.com/the-rise-of-robertfsmith/
  5. https://www.wsj.com/articles/whos-afraid-of-robert-smiths-philanthropy-11559084951
  6. https://robertsmith.com/videos/

The Youtube video interview features Robert F. Smith and Robert Green, President & CEO of the National Association of Investment Companies (NAIC). NAIC is the largest network of diverse-owned private equity firms and hedge funds. NAIC is focused on increasing the flow of capital to high-performing diverse investment managers often underutilized by institutional investors.

Cybersecurity Awareness Month Safety Tips 

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Each and every one of us needs to do our part to make sure that our online lives are kept safe and secure.

Cybersecurity Awareness Month is a government and private sector partnership that raises awareness about cybersecurity and stresses the collective effort required to stop cyber crimes, online thefts, and scams.

Malicious cyber activity threatens the public’s safety and America’s national and economic security. Taking the right security measures and being alert and aware when connected are key ways to prevent cyber intrusions and crimes.

It’s important to understand the more common cyber crimes and risks online, which include:

  • Business e-mail compromise (BEC) scams exploit the fact that so many of us rely on e-mail to conduct business—both personal and professional—and it’s one of the most financially damaging online crimes.
  • Identity theft happens when someone steals your personal information, like your Social Security number, and uses it to commit theft or fraud.
  • Ransomware is a type of malicious software, or malware, that prevents you from accessing your computer files, systems, or networks and demands you pay a ransom for their return.
  • Spoofing and phishing are schemes aimed at tricking you into providing sensitive information to scammers.
  • Online predators are a growing threat to young people.

The FBI is the lead federal agency for investigating cyber crimes and intrusions. They recommend that you should follow the cyber safety tips below to help protect yourself and your family:

Cyber Safety Tips 

  • Keep software systems up to date and use a good anti-virus program.
  • Examine the email address and URLs in all correspondence. Scammers often mimic a legitimate site or email address by using a slight variation in spelling.
  • If an unsolicited text message, email, or phone call asks you to update, check, or verify your account information, do not follow the link provided in the message itself or call the phone numbers provided in the message. Go to the company’s website to log into your account or call the phone number listed on the official website to see if something does in fact need your attention.
  • Do not open any attachments unless you are expecting the file, document, or invoice and have verified the sender’s email address.
  • Scrutinize all electronic requests for a payment or transfer of funds.
  • Be extra suspicious of any message that urges immediate action.
  • Confirm requests for wire transfers or payment in person or over the phone as part of a two-factor authentication process. Do not verify these requests using the phone number listed in the request for payment.

Only together can we achieve safety, security, and confidence in a digitally connected world.

References:

  1. https://www.fbi.gov/investigate/cyber/national-cybersecurity-awareness-month
  2. https://www.fbi.gov/investigate/cyber

Financial Paradigm

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“We think we see the world as it is, when in fact we see the world as we are.” Stephen R. Covey

Paradigms [pronounced para-dimes], like mindset, represent your views of the world, your explanations for what you observe in and think about the world around you. 

You think that you see the world as it is. In fact, you really see the world as you are, Stephen Covey wrote in his seminal book, The 7 Habits of Highly Effective People. “We project onto the outside world, our environment, the people we associate with, including how we see ourselves. We project out of our own conditioning experiences, our own background, a certain representation, a certain model, a certain set of expectations, a certain assumption on that reality out there. We think that’s the way it is.”

As a metaphor, compare your paradigms to the lenses in your glasses.  What you see isn’t a completely accurate reflection of reality, it is shaped by your beliefs, thoughts, feelings, attitudes, behaviors and perceptions. Yet, “We are not our feelings. We are not our moods. We are not even our thoughts… self-awareness enables us to stand apart and examine even the way we ‘see’ ourselves,” according to Stephen R. Covey.

Your paradigms shape how you interpret the world, and your interpretation governs how you behave; thus, changing the lens we use in deciding how to change your behavior. Each person’s experiences and biology creates different paradigms, so two people with different paradigms can look at the same facts, interpret them completely differently, and both be right.

Covey referred to paradigm as a map; it is a map of your perceptions, your frame of reference, your worldview, your value-system, your autobiography that you’re projecting upon the outside world.

Paradigms are natural and inevitable, and they are useful to you in many ways.  However, sometimes your paradigms can become so far removed from reality that they become dysfunctional. 

A “paradigm shift” occurs when your paradigms change, allowing you to see the world in a new and different perspective.  Sometimes this can happen suddenly, and sometimes very gradually. 

“Paradigms are powerful because they create the lens through which we see the world. If you want small changes in your life, work on your attitude. But if you want big changes, work on your paradigm.” Stephen R. Covey

Any true happiness or fulfillment or success will have to come from the inside-out, and be based upon a sound character, Covey repeatedly stated. His message was a simple one: “for true success and meaning in life, we must be principle-centered in all areas [purpose, health, emotional well-being and financial] of life”. A teacher at heart, he often taught, “There are three constants in life: change, choice and principles.”

“The significant problems we face cannot be solved at the same level of thinking we were at when we created them.” Albert Einstein

Most behavioral financial experts focus on an investor’s behavior and on emotions. Without a doubt, both of those concepts are very important regarding investing, but far more fundamental than either behavior or emotion, is a positive paradigm and a financial mindset. 

When you understand what’s guiding your emotions, thoughts and behavior, you can make a conscious effort to refrain from acting out of those paradigms and actually choose how you respond to a person or situation. 

Dr. Stephen R. Covey often proclaimed that, “the quickest way to change your paradigm is to change your role.” Become a successful investor. A parent. A leader. A business owner. It will alter your perspective overnight. You’ll see everything from a different point of view and mindset. 

Be Grateful. Be Kind. Be Generous. Be at Peace.

And, Have a Positive Financial Mindset: When People are Genuinely Happy at the Financial Successes of Others, the Wealth Pie Gets Larger.

References:

  1. https://resources.franklincovey.com/blog/paradigms
  2. http://people.tamu.edu/~v-buenger/658/Steven_Covey.html
  3. https://resources.franklincovey.com/mkt-7hv1/paradigms-src
  4. https://www.shortform.com/blog/change-your-paradigm-change-your-behavior-7-habits/

Emotional Well-Being: Be at Peace

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“If you are depressed, you are living in the past, if you are anxious you are living in the future, if you are at peace, you are living in the present.” Lao Tzu

Being at peace with yourself simply means that you have an ability to focus on your natural emotions of joy and feelings of calm. But, what is peace. Peace is not the absence of conflict; instead, peace is the presence of joy, kindness, love, generosity, patience and self control. It’s about being in the present.

Often, we undermine our inner peace and joy by failing to be grateful and thankful for whom we are, for what we have, and for what we have accomplished. We painstakingly compare our real day-to-day lives with the “highlights of life” depicted and embellished on in social media posts.

Marketers and advertisers constantly have you feeling that you haven’t got enough and that you are inadequate. But, it’s important to realize that you do not have to listen to everything entertainment media or your inner thoughts say. You are not your thoughts and you’re not the marketers or advertisers victim. You are in control of the things that you can control, like muting or turning off the constant media sales and marketing pitches of a better and more exciting life.

Often, we create unnecessary struggle because we believe that wherever we are is not already good enough in its own way. We focus on doing more, having more, and being more so much that we imply to ourselves that we are not yet good enough.

Being able to accept the balance between continuing to learn and grow while accepting your present life’s journey right where you are will dramatically increase your inner peace and joy.

Peace is valuable because it brings together many things that are important for our well-being, such as joy, emotional well-being, health, and fulfillment. Essentially, peace is the quiet joy and contentment of being who you want to be.

Accept the peace of the present moment and release the misgivings of the past and worries of future.

References:

  1. https://thejoywithin.org/increase-happiness/how-to-be-at-peace-with-yourself
  2. https://www.spiritbutton.com/peace-of-mind-quotes/#ixzz78AftX3se

The Debt Ceiling and Congressional Brinkmanship

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“I could end the deficit in 5 minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.” Warren Buffett, Chairman and CEO, Berkshire Hathaway

Around October 18, Treasury Secretary Janet Yellen and the U.S. Treasury Department have warned Congress that the government will no longer be able to pay all its bills unless the $28.5 trillion statutory debt ceiling is increased or suspended.

Source: Congressional Research Service, Congressional Budget Office, and the Treasury Department. Data as of 05/01/2021.

Moreover, Secretary Yellen believes the economy would fall into a recession if Congress fails to address the borrowing limit before an unprecedented default on the U.S. debt.

While the U.S. has never failed to pay its bills, economists say a default would tarnished faith in Washington’s ability to honor its future obligations on time and potentially delay Social Security checks to some 50 million seniors and delay pay to members of the U.S. armed services.

“If you ask the question of Americans, should we pay our bills? One hundred percent would say yes. There’s a significant misunderstanding on the debt ceiling. People think it’s authorizing new spending. The debt ceiling doesn’t authorize new spending; it allows us to pay obligations already incurred.” Peter Welch (D-VT), U.S. House of Representatives Democratic Caucus Chief Deputy Whip

Increases to the debt ceiling aren’t new. They’ve occurred dozens of times over the last century, mostly matter-of-factly, a tacit acknowledgement that the bills in question are for spending that Congress has already approved.

One thing separating today’s debt debate from those of the past is the larger-than-ever national debt, according to Fidelity. Publicly held US debt topped 100% of GDP in 2020 and is expected to reach 102% by the end of 2021.

And the debt is projected to increase significantly in the future. The Congressional Budget Office (CBO) projects a federal budget deficit of $2.3 trillion in 2021—the second largest deficit since 1945.

Source: Congressional Budget Office, as of February 11, 2021.

Failure to address the current challenge could shake global markets even before the Treasury has exhausted its available measures to pay bills. A U.S. debt default, whether through delayed payments on interest owed on U.S. Treasuries or on other obligations, would be unprecedented.

The effect would be one of perception. And, perception can be tied to the reality that someone isn’t going to be paid on time, whether it be government contractors, individuals who receive entitlement payments, or someone else. The damage to U.S. credibility would be irreversible.

Even if a default were only technical—if payments other than interest on debt were delayed—the United States could no longer fully reap the benefits bestowed on the most reliable debtors.

Interest rates would likely rise, as would financing costs for businesses and individuals. Debt ratings would be at risk. The government’s own financing costs, borne by taxpayers, would increase. Stock markets would likely be pressured as higher rates made companies’ future cash flows less predictable. Such developments occurring while economic recovery from the COVID-19 pandemic remains incomplete makes the potential scenario all the more important to avoid.

Let it be said that no one doubts the ability of the United States to pay for its obligations, according to Vanguard. There is a minimal credit risk posed by the United States is supported by its strong economic fundamentals, excellent market access and financing flexibility, favorable long-term prospects, and the dollar’s status as a global reserve currency.

The House has passed a measure that would suspend the debt ceiling through mid-December of 2022, and the bill now goes to the Senate. Republicans in the Senate oppose any effort to raise the borrowing limit and appears intent on making Democrats address it as part of their sprawling investment in social programs and climate policy under reconciliation.

Senate Democrats could lift the debt ceiling without the GOP votes through reconciliation, although that would come with downsides. Under reconciliation, a simple majority of senators can pass a very small number of budget bills each year. The process is sufficiently complex that it would probably take a couple of weeks and distract Democrats from their negotiations over Biden’s “Build Back Bette” agenda.

Thus, the Democrats resist raising the debt ceiling through reconciliation if it means potentially sacrificing other policy goals. And, the rules for reconciliation would require Democrats to specify a new limit for the national debt which would expose them to potentially uncomfortable GOP political attack ads.

Republicans insist that since Democrats control both the executive and the legislative branches and are in a socialistic tax-and-spend binge, they should bear sole responsibility for dealing with the debt limit, which is rearing its ugly head again because the suspension included in a two-year 2019 budget deal expired on July 31.

Democrats argue that Republicans should share the burden of this unpopular chore, since (a) much of the debt involved was run up under Republican presidents and (b) Democrats accommodated Republicans on debt-limit relief during the Trump presidency.

For long term investors, it’s clearly in the best interest of the country to resolve any debt-ceiling issues, according to Fidelity. And, it’s important to understand that there will always be times of uncertainty. It’s important to take a long-term view of your investments and review them regularly to make sure they line up with your time frame for investing, risk tolerance, and financial situation.

References:

  1. https://investornews.vanguard/potential-u-s-debt-default-why-to-stay-the-course/
  2. https://www.cnbc.com/2021/10/05/debt-ceiling-us-faces-recession-if-congress-doesnt-act.html
  3. https://nymag.com/intelligencer/2021/10/democrats-can-raise-debt-ceiling-via-reconciliation-bill.html
  4. https://www.fidelity.com/learning-center/trading-investing/2021-debt-ceiling

Own Your Net Worth and Cash Flow

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8 out of 10 women will be solely responsible for their financial well-being. Some women will be ready. Many won’t. UBS Wealth Management Report

As women’s life expectancies increase and the rate of divorce for individuals over age 50 continues to climb, more women will find themselves solely responsible for their own current and long term financial well-being.

UBS Wealth Management embarked on research–Own Your Worth–to explore women’s thoughts and feelings, the challenges they faced, lessons they learned and advice they would impart to other women.

With the wisdom of hindsight, nearly 60% of widows and divorcees regrettably wish they had been more involved in long-term financial decisions while they were married, according to UBS’ findings. A full 98% of them urge other women to become more involved early on.

Unfortunately, too many women ignore the advice of widows and divorcees. In direct contrast to the advice, many married women are taking a lesser role in managing the household finances. In a counterintuitive twist, Millennials are the most willing to leave investing and financial planning decisions to their husbands.

Fifty-six percent of married women still leave investment decisions to their husbands, according to UBS. Surprisingly, 61% of Millennial women do so, more than any other generation. What’s more, most women are quite content with their backseat role when it comes to investing and financial planning.

UBS’ research reveals many reasons for women’s abdication, from historical and social precedents to family, gender roles and confidence levels.

So. why do women minimize their role in major financial decisions? According to USB’ research, the reasons vary:

  • Gender roles run deep – Gender roles are ingrained from early in life and often prove hard to shake. In many cases, married couples are simply imitating the gender roles they witnessed growing up.
  • Men are still the breadwinners – Within families, 70% of men are the main breadwinners, in part because of the gender pay gap and the career breaks women take to raise children.
  • Time constraints are challenging – Whether married or not, women have many demands on their time. They take on the majority of household duties, including childcare and chores, as well as paying bills and tracking spending.
  • Competence vs. confidence – Together, history and society have conspired to affect women’s financial confidence. Both women and men think men know more about investing, and women are less confident than men in making major financial decisions. Women consistently underestimate their own abilities while overestimating what is required to be financially involved.

Yet, most study respondents participated in some financial decisions while married, from handling cash flow and bills to saving and investing. Regardless of their level of engagement, however, most agree it wasn’t enough. The research shows:

  • 59% of widows and divorcees wish they had been more involved in long-term financial decisions
  • 74% don’t consider themselves very knowledgeable about investing
  • 64% of widows blame themselves for not being more financially involved (53% of divorcees)
  • 56% of widows and divorcees discover financial surprises
  • 53% would have done fewer household chores to find more time for finances
  • 79% of women who remarry take a more active role

USB recommends three actions to take today

The advice from women who have been there is clear: The time to become involved in your family’s present and future financial well-being is today, not when some unforeseen events happen in the future.

Women are encouraged to get involved in their financial well-being as a form of self care, much in the same way you would take care of your health by:

  1. Owning your worth – Know where you stand and what you want for the future. Take the time to add up your assets and liabilities, like loans, credit and other debts, and ask for full transparency from your partner.
  2. Finding your voice – Start the conversation with your partner. Talking about money is considered taboo to some couples, particularly before they are married. But if you found yourself alone tomorrow, do you know what you’d do to make sure you’re financially secure? There is a tremendous benefit to having open communication about money with a trusted confidante.
  3. Setting an example – Model financial partnership for your family and loved ones. According to our survey, women are repeating the gender roles they saw growing up. As you begin taking a more active role in your finances, you can set an example of financial partnership for the younger generation.

Though women are aware of their increasing longevity and the financial needs associated with it, most tend to focus their efforts on short-term financial responsibilities such as managing the household’s day-to-day expenses and paying the bills.

In contrast, taking charge of long-term financial decisions, such as investing, financial planning and insurance, can have far more impact on their future than balancing a checkbook.

By sharing decisions jointly, both women and men can face the future with optimism—and set an example of financial partnership for generations to come.

Almost 60% of women do not engage in the most important aspects of their financial well-being: investing, insurance, retirement and other long-term planning. USB Wealth Management Report

References:

  1. https://www.ubs.com/content/dam/WealthManagementAmericas/documents/2018-37666-UBS-Own-Your-Worth-report-R32.pdf
  2. https://www.ubs.com/us/en/investor-watch/own-your-worth/_jcr_content/mainpar/toplevelgrid_1797264592/col2/teaser/linklist/link_2127544961.2019551086.file/PS9jb250ZW50L2RhbS9XZWFsdGhNYW5hZ2VtZW50QW1lcmljYXMvZG9jdW1lbnRzL293bi15b3VyLXdvcnRoLXJlcG9ydC5wZGY=/own-your-worth-report.pdf

Growing Your Money

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When investing your money in the stock market, doing your research and investing in what you know are crucial elements of successful investing. You don’t have to be a financial expert to start buying stocks, but the more you know going in, the more likely your investing journey will be successful.

It’s critical to understand that stocks represent legal ownership in a company; you become a part-owner of the company when you purchase shares.

People ultimately invest in stocks with one end-goal in mind: to grow their money and build wealth.

But it’s important to note that growing your money and building wealth are not guaranteed. Investing in individual stocks carries much more risk than buying bonds or putting your money in index funds.

As you begin to research stocks, first know how much risk you can take, or your risk tolerance, and your time horizon.

Financial experts typically recommend that you only invest money that you can afford to lose and, since investment returns are typically maximized over the long term, only invest money that you won’t need in the short term (less than three to five years).

Stock’s Value vs. Price

Buying stocks equates to owning companies which lets you be a part of something that’s normally very exclusive. It allows you to invest in pieces of well-known companies, such as Amazon, Google or Apple.

A company’s stock price has nothing to do with its value, because the share price means nothing on its own.

The price of a stock will go down when there are more sellers than buyers. The price will go up when there are more buyers than sellers.

A company’s performance doesn’t directly influence its stock price. Investors’ reactions to the performance decide how a stock price fluctuates.

The relationship of price-to-earnings and return on equity is what determines if a stock is overvalued or undervalued. Essentially, You should make no assumptions based on price alone.

Knowing when to sell is just as important as buying stocks. Most retail investors buy when the stock market is rising and sell when it’s falling, but smart investors follow a strategy based on their financial plan and requirements.

Benjamin Graham is known as the father of value investing, and he’s preached that the real money in investing will have to be made not by buying and selling, but from owning and holding securities, receiving interest and dividends, and benefiting from the stock’s long-term increase in intrinsic value through compounding.

Learning how to invest in stocks might take time, but you’ll be on your way to growing your money and building your wealth when you do so. But, keep your risk tolerance, time horizon and financial goals in mind,

References:

  1. https://www.thebalance.com/the-complete-beginner-s-guide-to-investing-in-stock-358114

FinTech: SoFi Technologies

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SoFi, the digital personal finance company,

SoFi Technologies is an online personal finance technology (FinTech) company based in San Francisco, CA, that was founded in 2011. It provides several online financial services including personal and private loan management, student loan refinancing, and investment management.

SoFi’s mission is to “help people reach financial independence to realize their ambitions. Financial independence doesn’t just mean being rich”, according to SoFi; “it means getting to a point where your money works for the life you want to live.”

Currently, SoFi comprises three main businesses: lending, its largest unit, technology, and financial services.

Their financial services for borrowing, saving, spending, investing, and protecting provide their more than 2 million members fast access to tools to get their money right. Its membership comes with the key essentials for getting ahead financially. And, SoFi members get benefits like financial planning and exclusive access to SoFi Stadium in Los Angeles.

SoFi acquired the naming rights of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams, which opened in July. 2020.

“As SoFi grows, we knew we needed to expand our real estate footprint to maintain our top-tier level of support for all of our members across the country,” said Anthony Noto.

Anthony Noto is the CEO of SoFi Technologies, serves on its board of directors, and is a graduate of the U.S. Military Academy at West Point.

Get Your Money Right®

SoFi’s overriding purpose is to “help you save, spend, earn, borrow, invest, and protect your money”. SoFi is a full service finance company whose goal is to help their members “get their money right”. Its products are built around their members—so that their members have the tools they need to take control of their financial futures.

“Our #1 priority is putting members first—it’s even one of our company values. If our members are successful, we’re successful. That’s why we offer exclusive member benefits at no cost.” SoFi

References:

  1. https://www.sofi.com/press/sofi-opens-new-office-jacksonville/
  2. https://thecoastal.com/buzz/sofi-to-create-300-jobs-in-jacksonville-by-the-end-of-2021/amp/
  3. https://www.sofi.com/