Archive for the ‘Investment’ Category
WHO and partners call for urgent investment in nurses – World Health Organization
Posted: April 10, 2020 at 2:52 am
The Covid-19 pandemic underscores the urgent need to strengthen the global health workforce. A new report,The State of the Worlds Nursing 2020, provides an in-depth look at the largest component of the health workforce.Findings identify important gaps in the nursing workforce and priority areas for investment in nursing education, jobs, and leadership to strengthen nursing around the world and improve health for all. Nurses account for more than half of all the worlds health workers, providing vital services throughout the health system. Historically, as well as today, nurses are at the forefront of fighting epidemics and pandemics that threaten health across the globe. Around the world they are demonstrating their compassion, bravery and courage as they respond to the COVID-19 pandemic: never before has their value been more clearly demonstrated.
Nurses are the backbone of any health system. Today, many nurses find themselves on the frontline in the battle against Covid-19, said Dr Tedros Adhanom Ghebreyesus, WHO Director General. This report is a stark reminder of the unique role they play, and a wakeup call to ensure they get the support they need to keep the world healthy.
The report, by the World Health Organization (WHO)in partnership with the International Council of Nurses (ICN) and Nursing Now, reveals that today, there are just under 28 million nurses worldwide. Between 2013 and 2018, nursing numbers increased by 4.7 million. But this still leaves aglobal shortfall of 5.9 million - with the greatest gaps found in countries in Africa, South East Asia and the WHO Eastern Mediterranean region as well as some parts of Latin America.
Revealingly, more than 80 per cent of the worlds nurses work in countries that are home to half of the worlds population. And one in every eight nurses practices in a country other than the one where they were born or trained. Ageing also threatens the nursing workforce: one out of six of the worlds nurses are expected to retire in the next 10 years.
To avert the global shortage, the report estimates that countries experiencing shortages need to increase the total number of nurse graduates by on average 8% per year, along with improved ability to be employed and retained in the health system. This would cost roughly USD 10 per capita (population) per year.
Politicians understand the cost of educating and maintaining a professional nursing workforce, but only now are many of them recognizing their true value, said ICN President Annette Kennedy. Every penny invested in nursing raises the wellbeing of people and families in tangible ways that are clear for everyone to see. This report highlights the nursing contribution and confirms that investment in the nursing profession is a benefit to society, not a cost. The world needs millions more nurses, and we are calling on governments to do the right thing, invest in this wonderful profession and watch their populations benefit from the amazing work that only nurses can do.
About 90 per cent of all nurses are female, yet few nurses are found in senior health leadership positions-- the bulk of those positions are held by men. But when countries enable nurses to take a leadership role, for example by having a government chief nursing officer (or equivalent), and nursing leadership programmes, conditions for nurses improve.
This report places much-needed data and evidence behind calls to strengthen nursing leadership, advance nursing practice, and educate the nursing workforce for the future, said Lord Nigel Crisp, Co-Chair of Nursing Now. The policy options reflect actions we believe all countries can take over the next ten years to ensure there are enough nurses in all countries, and that nurses use of the full extent of their education, training, and professional scope to enhance primary health care delivery and respond to health emergencies such as COVID-19.This must start with broad and intersectoral dialogue which positions the nursing evidence in the context of a countrys health system, health workforce, and health priorities.
To equip the world with the nursing workforce it needs, WHO and its partners recommend that all countries:
The reports message is clear: governments need to invest in a massive acceleration of nursing education, creation of nursing jobs, and leadership. Without nurses, midwives, and other health workers, countries cannot win the battle against outbreaks, or achieve universal health coverage and the Sustainable Development Goals.
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WHO and partners call for urgent investment in nurses - World Health Organization
How Does Investing In iMetal Resources Inc. (CVE:IMR) Impact The Volatility Of Your Portfolio? – Yahoo Finance
Posted: at 2:52 am
If you own shares in iMetal Resources Inc. (CVE:IMR) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
See our latest analysis for iMetal Resources
Looking at the last five years, iMetal Resources has a beta of 1.73. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. Based on this history, investors should be aware that iMetal Resources are likely to rise strongly in times of greed, but sell off in times of fear. Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. Take a look at how iMetal Resources fares in that regard, below.
TSXV:IMR Income Statement April 9th 2020
iMetal Resources is a noticeably small company, with a market capitalisation of CA$3.6m. Most companies this size are not always actively traded. Relatively few investors can influence the price of a smaller company, compared to a large company. This could explain the high beta value, in this case.
Since iMetal Resources tends to move up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. In order to fully understand whether IMR is a good investment for you, we also need to consider important company-specific fundamentals such as iMetal Resourcess financial health and performance track record. I highly recommend you dive deeper by considering the following:
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
Investors will make ‘irrecoverable’ mistakes during the coronavirus outbreak. Here’s how to protect yourself – CNBC
Posted: at 2:52 am
Everybody loves a good sale.
And according to Peter Mallouk, president and chief investment officer of wealth management firm Creative Planning, the coronavirus downturn is the perfect time to buy all of your favorite stocks at a steep discount.
"Stocks are the only thing people don't want to buy when they are half-price," Mallouk said. He said that people get excited when items go on sale at the store but tend to pull back when the stock market takes a hit. Mallouk feels that mindset is shortsighted.
"Are you really worried Disney World is not going to be here in five or 10 years? Are you really worried that McDonald's isn't going to be here in five or 10 years?" he said.
Mallouk said you need to determine the amount of time you have until you will need to cash out your investments and make decisions based on that. Your age will be a big factor in where you put your money.
"This is a behavior economics nightmare. This is a place where all sorts of investors are going to make all sorts of irrecoverable mistakes. Don't be one of those investors," Mallouk said.
Check out this video to see what he recommends for investors, young and old, and for tips on what everyone should be doing with their portfolios during the coronavirus pandemic.
More from Invest in You: 'Predictably Irrational' author says this is what investors should be doing during the pandemic Coronavirus forced this couple into a 27-day quarantine amid their honeymoon cruise How to prepare for a family member with COVID-19
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
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Investors will make 'irrecoverable' mistakes during the coronavirus outbreak. Here's how to protect yourself - CNBC
The UAE is investing $100 million in indoor farming – Fast Company
Posted: at 2:52 am
In an industrial park built off a highway in the arid land between Abu Dhabi and Dubai, a sprawling new indoor farm will soon grow tomatoes under LED lights in a climate-controlled warehouse near a plastic production facility and other factories. The farm, the first in the world to commercially grow tomatoes solely under artificial light, is one part of a push to transform food production in the United Arab Emirates, where 80% of food is imported. The government realizes that to be resilient, it will need to find new ways to grow food in a desert climate with little rain and temperatures that regularly stay above 100 degrees.
In a new investment announced today, the Abu Dhabi Investment Office, a central government hub supporting businesses, is putting $100 million into four agtech companies, including Madar Farms, the startup building the indoor tomato farm; Aerofarms, a New Jersey-based vertical farming company that will build a massive new R&D center; RDI, a startup developing a new irrigation system that makes it possible to grow plants in sandy soil; and RNZ, a startup that develops fertilizers that make it possible to grow more food with fewer resources. The investments are the first in a larger $272 million program to support agtech.
Agtech will be part of the solution to how we can better utilize water, how we can be more efficient, and how we can drive yield in farms, says Tariq Bin Hendi, the director general of the Abu Dhabi Investment Office. Were embracing technology because we know its the future.
Indoor farming, which grows food in far less space and with far less water than traditional agriculture (and without being subject to extremes in outdoor temperatures), makes particular sense in the area. First, we have to deal with a very limited supply of arable land, says Abdulaziz Al Mulla, CEO of Madar Farms. So any kind of production method that we use has to be one thats land agnostic. Secondly, the current way of production draws far too much on our precious water reserves. At the rate were going, we might run out of water within the next 50 years. The companys hydroponic systems, like those at other indoor farms, can recycle around 95% of the water that they use. The new 53,000-square-feet farm is set to be complete by the end of the year and begin production early in 2021; its also designed to expand. The first building covers around 53,000 square feet, 10% of the space that the company has leased in the industrial park.
In Abu Dhabi, Aerofarms will use the new investment to build a 90,000-square-foot facility to continue its research in how to grow crops indoors, including new research in breeding seeds that are optimized for indoor growing conditions. We have been talking to people in the UAE for a long time, says Aerofarms CEO David Rosenberg. Part of our business model, the way we think of it is: Wheres our value proposition most strong? Where are there a lot of people without access to fresh food? And its basicwhere there is water scarcity, arable land scarcity. In New Jersey, Aerofarms works in a series of buildings repurposed for indoor growingan abandoned steel factory, an old paintball facility, an abandoned nightclubbut the new R&D facility in the UAE will be designed from scratch.
More than 60 engineers and scientists will study plant science and automation at the new center. We want to grow more plants, know how to grow better, know how to grow with lower capital cost and operating costs, Rosenberg says. That all stems from an ability to understand plants. By growing in a controlled environment, he says, its easier to understand the variables that affect factors like growth rate, nutrition, and taste. In the past, the company has focused mostly on environmental factors, such as the right light recipe or temperature to make plants grow well. Now it will also study breeding. Most seed breeders work to optimize drought resistance, or pest resistance, he says. Here, because its fully controlled, we get to say, you know what, lets focus on taste, texture, yield, nutrition.
The new investments add to a small but growing indoor agriculture sector in the region. A startup called Badia Farms grows microgreens inside a warehouse and delivers them to local restaurants in Dubai, where the Ministry of Climate Change and the Environment made a deal to establish 12 vertical farms. In the middle of the desert, Pure Harvest Smart Farms grows tomatoes in a climate-controlled greenhouse with imported bumblebees. In a town on the outskirts of Dubai, an indoor farm raises salmon in huge, computer-controlled circular pools. A 130,000-square-foot indoor farm from a startup called Crop One, producing three tons of greens a day, is expected to break ground in Dubai later this year.
The indoor farming industry is still nascent, and its possible that the new wave of support in the UAE could help push it forward. The challenges that are most pronounced in the desert also exist elsewhere: In the U.S., for example, most lettuce is grown in California and Arizona, where water shortages will continue to increase with climate change.
Abu Dhabi and Dubai are also testing technology designed to help in other parts of the food system, including tech that can reduce food waste in restaurants, drones that can map plants on outdoor farms to save resources, and artificial caves in the Persian Gulf that are meant to help fish stocks grow. It really has to be comprehensive coordination across different solutions, if you really want to build a truly resilient, food-secure sector, says Al Mulla.
Adele Peters is a staff writer at Fast Company who focuses on solutions to some of the world's largest problems, from climate change to homelessness. Previously, she worked with GOOD, BioLite, and the Sustainable Products and Solutions program at UC Berkeley, and contributed to the second edition of the bestselling book "Worldchanging: A User's Guide for the 21st Century."
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The UAE is investing $100 million in indoor farming - Fast Company
4 Warren Buffett Principles for Investing in the Coronavirus Crash – Motley Fool
Posted: at 2:52 am
To say that the stock market has been turbulent lately would be a massive understatement. There have been several days where the stock market has triggered the "circuit breakers," which automatically halt trading for 15 minutes when the S&P 500 drops by 7% in a single day. And swings of 1,000 points in the Dow Jones Industrial Average in either direction are becoming quite commonplace.
However, crashes like this are an occasional but normal part of investing. Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) CEO Warren Buffett has an excellent track record of not only navigating market crashes well, but also emerging from them even stronger than he went in.
With that in mind, here are a few pages out of the Oracle of Omaha's playbook that could help you decide what to do -- and what not to do -- during these volatile times.
Image source: Getty Images.
Watching the markets these days can certainly be nerve-wracking. Nobody enjoys seeing the market drop so much in a single day that trading has to be halted or seeing their brokerage account lose a third of its value as the market falls.
However, you shouldn't let this scare you away from long-term investing. At the very least, you shouldn't be selling the stocks of solid companies into market weakness, but if you don't need the money for a decade or more, this could be an excellent time to shop around for bargains.
Market corrections of 10% are common, but 30% market plunges don't happen very often. As Warren Buffett says: "Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble."
Obviously, don't invest unless your near-term spending needs are met. And if you've lost income or are worried about your cash flow during the COVID-19 pandemic, it's totally understandable to pump the brakes on putting new money into the market. But if you have money available to invest, it's a great time to load up on your favorite businesses at a discount.
As Buffett has said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." If a stock has fallen significantly during the coronavirus market crash, you need to decide which of two main categories it falls into:
Obviously, this question isn't always easy to answer. But the point is that it's important to look for businesses that should not only be fine when life starts to return to normal, but that are virtually certain to make it through the tough times relatively unscathed.
Here's some advice on how to separate the wonderful businesses to invest in from the fair businesses. One of Buffett's central investment principles is to look for a "margin of safety."
A strong brand name, loyal customer base, pricing power, or proprietary technologies or manufacturing processes are all potential examples of a margin of safety.
In the current market environment, however, an important part of margin of safety to consider is liquidity. In other words, does a company have enough money to make it through the crisis, even if it lasts for a while? This Buffett quote sums it up nicely:
"On the margin of safety, which means, don't try and drive a 9,800-pound truck over a bridge that says it's, you know, capacity 10,000 pounds. But go down the road a little bit and find one that says capacity 15,000 pounds."
Let's say that you want to invest in a hotel stock whose properties are currently closed. If it costs a company $10 million per month to keep the business afloat during the shutdown, a company with just $20 million in cash could only afford to stay in business for a couple of months. But a company with $100 million in cash and borrowing capacity should be just fine, even if their hotels remain closed for much of 2020.
Finally, although it can be scary when things aren't going well for the stock market or when the U.S. economy has fallen into recession with no clear end in sight, remember that we've been through quite a lot as a nation. As Buffett put it:
"In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts, the Depression, a dozen or so recessions and financial panics, oil shocks, a flu epidemic, and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497."
In a nutshell, stocks are a great long-term investment, despite any obstacles that occur along the way. The path higher for the stock market is more likely to be a roller coaster ride than a steady uphill climb, but over the long run, it's very difficult to make the case against the stocks of top-quality companies as a great way to create wealth over time.
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4 Warren Buffett Principles for Investing in the Coronavirus Crash - Motley Fool
Coronavirus Market Crash: Where to Invest $1,000 Right Now – The Motley Fool
Posted: at 2:52 am
Fear is rampant right now in the financial markets.
The COVID-19 pandemic is spreading rapidly across the world. The disease caused by the novel coronavirus has infected more than 1 million people and resulted in over 55,000 deaths.Government leaders are ordering people to stay home to slow the spread of the disease. While necessary to save lives, these measures are likely to plunge the global economy into a brutal recession. Financial markets have plummeted in response. It's a bad situation out there.
And yet, there are also opportunities.
Companies helping to fight COVID-19 stand to benefit financially from their efforts. And the drop in stock prices means potential profits for new investors and those who add to their positions in various companies. Moreover, trillions of dollars of government-backed stimulus measures are aimed at helping to stabilize the economy and eventually get it back on track for sustained growth.
Investing during these tumultuous times certainly isn't easy, but it can be highly profitable. If you're looking to invest $1,000 right now, the following exchange-traded funds (ETFs) can help you do so.
Looking to invest? Then check out these funds. Image source: Getty Images.
Vanguard Total Stock Market(NYSEMKT:VTI)is an excellent way to gain broadly diversified exposure to essentially the entire U.S. stock market. It provides quick, convenient, and low-cost access to more than 3,500 large-, mid-, and small-capitalization stocks. Major holdings include Microsoft, Apple, and Amazon, among other titans of U.S. industry. Importantly, the ETF has an ultra-low expense ratio of 0.03%, meaning that nearly all of the fund's returns will go to you rather than its management team.
The Vanguard Total Stock MarketETF is a great way to profit from an eventual rebound in the U.S. economy. You can buy shares now and likely do well over the long term. Or, if you're worried about further downside in the stock market, you can buy small amounts of the fund over regular intervals. This strategy is known as dollar-cost averaging, and it's a proven way to buy more shares when prices are low and fewer shares when prices are high. Doing so can help you reduce your risk and potentially allow you to get a lower cost basis -- and therefore higher profits -- on your investments.
Nations are using different approaches to combat COVID-19. This could result in countries finding varying levels of success with containing the coronavirus pandemic. Their economies, in turn, could recover at different speeds.
A superb way to further diversify your investment risk and potentially profit handsomely from economic recoveries in international markets is the Schwab International Equity ETF (NYSEMKT:SCHF). The fund can help you gain exposure to more than 1,500 stocks in developed markets around the world. Countries such as Japan, the United Kingdom, and France are well represented within the ETF's portfolio, and major holdings include international heavyweights like Nestle, Roche, and Samsung Electronics. Better still, the fund has a low expense fee of 0.06%.
Together, the Vanguard Total Stock MarketETF and the Schwab International Equity ETF can help you quickly and easily position yourself to profit from a long-term recovery in the global stock markets.
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Coronavirus Market Crash: Where to Invest $1,000 Right Now - The Motley Fool
5 Questions to Ask Before Investing in Disney Stock – Motley Fool
Posted: at 2:52 am
Shares of Disney (NYSE:DIS)have been clawing their way back into investors' fancy this week, closing above $100 on Tuesday for the first time in nearly two weeks. Investors are flocking to the media giant, but it has a long way to go before revisiting the all-time highs it hit just before Thanksgiving last year.
Disney stock is still trading at a 34% discount to its highs, and that's going to be a dinner bell for investors who realize that the shares would need to soar by better than 50% to get back to their peak. There's a lot to like when it comes to Disney, and I've been a shareholder since the 1980s. But there are also plenty of things to consider before betting big on the House of Mouse. Let's go over five questions that investors should need to answer to see if the bullish argument makes sense.
Image source: Disney.
Disney theme parks in China have been closed since late January, and as of mid-March all of its gated attractions worldwide remain shuttered. Theme parks have always been a big part of Disney's business, and with its growing cruise fleet also idled, there is going to be a big hole in the company's operations until the parks reopen.
It was originally hoping to reopen by the end of last month, but now the attractions are off-limits indefinitely. Will the parks be open in time for the potent summer season? Is fall a more realistic target? What happens if the coronavirus returns after the parks start entertaining guests? Will it be an even longer interruption?
Disney is already paying the price for multiplex operators across the country shutting down in mid-March. Pixar's Onwardhad its theatrical run cut short by the interruption, forcing it into digital distribution within two weeks of its release. Upcoming releases have been bumped into the future by months to as much as a year.
Movie theaters will eventually reopen, and probably even sooner than Disney's own theme parks. The real question here is whether audiences will be back. Debuting on the big screen is a major revenue channel for big-budget studios productions, but what if folks realize during this quarantine that they don't miss the box office experience? Digital distribution as it stands now is no match for what a blockbuster can collect in first-run ticket sales.
There's no denying that Disney+ is a bright spot for the company these days. The streaming service that launched in November has been ridiculously popular, and reached 28.6 million subscribers by early February. The Mandalorianwas a hit through the first few weeks of the platform's launch, and Disney is keeping fans close with Frozen 2 and now Onwardin the growing Disney+ catalog.
The real question here is how much of the success of Disney+ will come at the expense of its flagship media-networks segment. Disney+ is $6.99 a month, but if someone cancels a pricey cable or satellite television package to take advantage of streaming services, it's going to leave a mark. Disney makes more off of just ESPN from folks with pay TV bundles that include the leading sports programming network than it does from a Disney+ subscriber.
There's no point in valuing Disney with trailing multiples. That road is closed. The company was more than 120 consecutive months into an economic expansion, but that momentum is gone. It will be a long time before Disney is as profitable as it was during the past couple of years
Analysts see profits heading lower now, and understandably so with so many of its businesses on ice. Disney generated adjusted earnings from continuing operation of $5.77 a share in fiscal 2019, down from $7.08 a year earlier. Analysts see a profit of $4.01 a share this year and $5.25 a share in fiscal 2021, but don't hang your hat on those numbers. Those forecasts have been moving lower: down 25% over the past two months for fiscal 2020 and 15% for next year. But a lot of the analysts baked into the consensus estimate have yet to update their numbers to reflect the current situation.
Disney's not posting net income of $4.01 a share this year. Wall Street pros see it earning as little as $1.67 this fiscal year and $2.42 come fiscal 2021, and even those figures may prove conservative if attraction closures keep getting extended and the king of content can't make new shows or movies.
Disney may seem cheap at 18 times trailing earnings. And going by the current consensus, it may not seem outrageous to pay 25 times this year's expected profit for the top dog in family entertainment. The problem is that just a few of the falling dominoes have been factored into today's forecast. How low will earnings go?
You're one tough cookie, and we'll both share a rum-spiked Dole Whip when we get out of this coronavirus crisis, but who will pay for it? Unemployment claims are spiking, and most economists see a sharp near-term drop in the economy. We'll bounce back; we always do. The problem here is gauging how long it will take for the economy to recover.
Disney parks aren't cheap. A night at the movies is no bargain. Your family is getting good use out of that fat cable bill right now, but it's going to be a budget item for a lot of folks at the other end of this COVID-19 crisis. Disney was already staring at a tricky 2020 with a much weaker slate of films than it put out last year, and now we have to consider how many people can afford a trip to Disneyland or how many people want to take any cruise, much less a premium-priced Disney sailing. It will take more than a couple of quarters for consumer momentum to bounce back as we prepare for a recession, and that has to be factored into Disney's near-term prospects as a stock.
I'm not selling my shares, but I also haven't rushed to add to that position in the sell-off. There are a lot of questions out there, and you may not like the answers.
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5 Questions to Ask Before Investing in Disney Stock - Motley Fool
RBI bonds, tax-free bonds and more: 8 investment options for senior citizens – Business Today
Posted: at 2:52 am
As the economy is unlikely to recover from the low interest regime any time soon, senior citizens need to take stock of their investments
KEY HIGHLIGHTS
Senior citizens are in for the roughest time. Some who invest in equities have seen their portfolio incurring big losses and rest who are invested in small savings schemes and other fixed income or debt products will see return declining due to falling interest rates. The Union Government has revised interest rates on small savings schemes downwards after the Reserve Bank of India reduced the policy rate by 75 basis points. As the economy is unlikely to recover from the low interest regime any time soon, senior citizens need to take stock of their investments. We tell you where all you can invest in the current scenario to get the best returns with least risk:
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Senior Citizen Savings Schemes
Even as the interest rate on senior citizen savings schemes (SCSS) has been reduced to 7.4 per cent for the June quarter from 8.6 per cent for the March quarter, it is still earning more than other fixed income options. You can invest maximum Rs 15 lakh in SCSS in multiples of Rs 1,000. Interest is payable each quarter that you can use as regular income. The account matures in five years and you can extend it once for a block of three years. Premature withdrawal is allowed but with a penalty of up to 1.5 per cent of the deposit amount.
"SCSS is a long-term savings scheme which offers security as well as other additional benefits to retired individuals and senior citizens. The SCSS can be availed from recognised banks and post offices around the country. Also, the rate of interest offered on this scheme is higher than that of the regular bank savings and fixed deposits. Subscribers are also eligible to avail tax benefits up to Rs 1.5 lakh under Section 80C of the I-T Act, 1961," says Archit Gupta, Founder & CEO at ClearTax.
ALSO READ:Coronavirus loan moratorium - how to pause, continue or get refund for EMIs
Post Office Monthly Income Scheme
If you want a steady monthly income, Post Office Monthly Income Scheme (POMIS) is a good option that currently offers 6.60 per cent interest. The minimum investment amount is Rs 1,000 and the maximum is Rs 4.5 lakh for a single account and Rs 9 lakh for a joint account. You need to open a savings account with the post office where you sign up for the scheme so that the monthly interest can be auto-credited in the savings account. The scheme comes with a maturity of five years and premature withdrawals attract penalty of up to 2 per cent of the deposit amount. Note that investment in POMIS does not offer any tax rebate under I-T Act, so while no TDS is deducted, the interest income is taxable in your hands.
Government of India Savings (Taxable) Bonds
GoI Savings (Taxable) Bonds, also called RBI bonds, come with sovereign guarantee with no risk to your principal amount. The rate of interest on GoI Bonds is 7.75 per cent with two payout options -- non-cumulative option offers interest on half yearly basis, while cumulative option pays interest on maturity. "There is no upper limit of investment in GoI Bonds but the returns are taxable as per your slab," says certified financial planner Pankaaj Maalde.
ALSO READ:How to make your financial portfolio coronavirus-proof
Although the tenure is seven years, the lock-in period is relaxed for senior citizens. It is six, five and four years, respectively, for investors in the age bracket of 60-70 years, 70-80 years and above 80 years. "Currently among all fixed income options, RBI bonds are offering the highest interest rate. If you want to avoid volatility risk present in debt mutual funds, RBI bonds are the best option offering 100 per cent safety," says Maalde.
Debt funds
Senior citizens should consider overnight and liquid funds for the money they may require anytime. Alternatively, they can invest in short-term debt funds having AAA-rated papers. "Choose well-managed debt funds. Go for short-term debt funds because bond yields have fallen sharply following the rate cut by RBI. They may not fall any further so long duration and medium duration bonds could yield negative returns in the coming months," says Raj Khosla Founder and Managing Director, Mymoneymantra.com.
Debt funds offer an average return of 8-10 per cent typically, says Gupta of Cleartax. However, these are taxed as per your slab rate.
ALSO READ:How insurance industry is dealing with coronavirus woes
The issue with debt funds is there are many to choose from and not all are risk free. "Looking at the current scenario it is not advisable to invest in debt funds looking at high yields. Already people have burnt their fingers in defaults and downgrades of various bonds," says Maalde. Take assistance from a financial advisor if selecting a debt fund appears cumbersome.
Bank deposits and corporate deposits
It is advisable to maintain some amount of cash in bank deposits for emergencies even though interest rates are not appealing. The State Bank of India has recently reduced deposits rates across all tenors. Senior citizens, who earn extra 50 basis point interest on bank deposits, will now receive 4-6 per cent interest on FDs maturing in seven days to 10 years. "Interest income on fixed deposits up to Rs 50,000 during a financial year is completely tax-free for senior citizens under Section 80TTB of the I-T Act," says Gupta.
Corporate deposits are another attractive investment option. "The deposits of HDFC and Bajaj Finance and other such housing finance with good credit ratings can be considered to diversify the portfolio. They will give 0.50 to 0.75 per cent more than the banks. Taxation needs to be taken into account before investing," advises Maalde.
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Tax-free bonds
If you are in the highest tax bracket and looking for a tax efficient investment option, tax-free bonds should top the charts. Public sector undertakings such as IRFC, PFC, NHAI, HUDCO, REC, NTPC, NHPC and Indian Renewable Energy Development Agency (IREDA) offer such bonds. These bonds typically come with a tenure of 10 years, 15 years and 20 years, but can be sold before maturity in the secondary market. You can buy these bonds either in the physical form or through demat account. Currently no such bonds are available in the primary market. You will have to wait for the public issue of these bonds and you can apply physically or online if you have a demat account. However, these bonds are also available in the secondary market and may come at a premium due to falling interest rate. These are listed both on the BSE and NSE from where you can buy.
Stocks and mutual funds
If your goal is to accumulate wealth and leave a legacy for your children, you may invest in equities for higher returns. After the recent market crash, most of bluechip stocks are available at attractive valuations. "Look for stocks of companies with strong fundamentals. The core idea should be to find companies that will survive an economic recession. Talking about mutual funds, a diversified equity fund with a focus on large-caps and/or bluechips seems like a good option," advises Harsh Jain, Co-founder, and COO, Groww.
If your debt portion has gone beyond your targets in your portfolio, you can book profits and divert the amount in equities via systemic transfer plan (STP). "You can put 20 per cent of the portfolio in the equity via STP of 12 months with a time horizon of five-six years. Index funds are good option for senior citizens as they invest in large and quality companies," says Maalde.
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RBI bonds, tax-free bonds and more: 8 investment options for senior citizens - Business Today
Now is the time for Houstonians to invest in solar energy, says expert – InnovationMap
Posted: at 2:52 am
Largely due to the growing popularity and falling prices of solar energy in Texas, including incentives at the federal, state, and local level, the number of solar panel installations continues to trend upward throughout the state and especially in Houston.
For the third year in a row, Houston was named the top municipal user of green energy in the nation by the United States EPA, using more than 1 billion kilowatt hours (kWh) of solar and wind power. With 92 percent of the city of Houston's energy coming from green power, solar has solidified its place in the Houston energy market.
With solar panel system prices dropping 38 percent over the past five years, solar power is also growing in popularity among individual homeowners and business owners who want to take control of their energy costs and become more self-sufficient.
As the recent COVID-19 pandemic continues to shake industries across the nation, Freedom Solar is working tirelessly to keep our team safe, healthy, and employed. Solar installers provide critical electric generation infrastructure that helps us reduce the strain on the ERCOT grid, especially with higher electricity usage as people stay at home under local shelter in place orders and as we head into the warmer spring and summer months.
The health and safety of our customers and employees is our top priority, and as an essential business we are following strict operating protocols that are in line with the guidance provided by local, state, and federal authorities. Although these challenging times often result in a pause in investments, I argue that for customers who have been considering investing in solar, now is still the time to do so.
During these tumultuous times, for many home and business owners, investing in solar energy remains appealing as a smart and stable financial decision. A solar power system is an income-producing asset that will generate a stable return for 25 or more years. The ability to finance that investment without putting cash down upfront allows customers to get the financial benefits of solar now while keeping their money in the securities markets until they recover from the current economic downturn.
Due to the COVID-19 pandemic, overseas manufacturing has been disrupted for months, resulting in shortages in the global supply chain across many industries. These shortages could increase the price of solar panels, inverters and related equipment if US warehouses run low on inventory. For customers who have long been on the fence about investing in solar, I would urge them to reevaluate the numbers now in anticipation of potential price increases in the coming months in the wake of COVID-19.
Additional macro trends and current events continue to demonstrate the value of home solar power. According to a 2020 study by the financial institution Fundera, the number of regular telecommuting employees has grown by 115% since 2005. As more and more people are required to work remotely, especially during the current and indefinite "Stay in Place" orders, electricity usage and utilities have inevitably increased for many households.
Investing in solar for your home can help offset increased utility costs, especially while working remotely and in the rapidly approaching summer months. Current events may be accelerating the long-term trend, and even when the immediate crisis is over, the way many people work could be transformed.
As the energy industry continues to evolve, the reasons why Houston customers choose to invest in solar power evolve and grow. Going solar is no longer solely a testament to your sustainability practices but also a sound long-term investment. The federal solar tax credit also known as the investment tax credit (ITC) allows homeowners and businesses to deduct a significant percentage of the cost of installing solar from their federal income taxes.
The credit remains at 26 percent for the remainder of 2020 but will decrease to 22 percent in 2021 and then in 2022 will drop to 10 percent for businesses and will go away entirely for homeowners. With more than 90 percent of Houston's energy consumption deriving from green power, it is clear that solar is here to stay.
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Bret Biggart is the CEO of Texas-based Freedom Solar.
Originally posted here:
Now is the time for Houstonians to invest in solar energy, says expert - InnovationMap
I want to save. My partner wants to invest in stocks. Who’s right? – USA TODAY
Posted: at 2:52 am
Erin Lowry, Special to USA TODAY Published 6:00 a.m. ET April 8, 2020 | Updated 10:54 a.m. ET April 8, 2020
Trying out these strategies could help you grow your savings. Buzz60
The Warren Buffett meme with versions of the legendary investor's advice to befearful when others are greedy, and to be greedy when others are fearful, hasbeen making the rounds on social media as the markets have rocked and rolled overthe last few weeks.
There is logic in this advice. But not everyone is keen on stock market risk when so much is uncertain, especially job security. If you are part of a pair that makes joint financial decisions, figuring out what to do can be tricky.
This dilemma prompted a woman to ask me how she could convince her spouse to save and stop putting more money in stocks? It's aquestion that requires both people in the relationship to examine their tolerance for risk and to come to a compromise that makes them both feel secure.
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Please stop putting all our money into the stock market isnt going to go as far as, our jobs are both vulnerable right now and we only have three months worth of living expenses set aside, and it would make me more comfortable if we focused on boosting our savings instead of investing.
We all have differenttolerances for risk, especially when it comes to our money. The investor in this relationship likely sees this as a big opportunity, while the saver wants more control.
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Engage in a discussion that helps you gauge your risk tolerance:
Realistically, how stable is your job?Over 10 million Americans have filed for unemployment in the last two weeksand there are plenty of them that believed they were in fairly stable, recession-proof jobs. How well is your industry or company positioned in the current environment?
If we both lost our jobs tomorrow, how long can we pay all our bills? Even if you can file for unemployment, it could take weeks to get your first check, so how long are you able to cover yourself and would unemployment be enough to still make ends meet?
If youre unsure about your risk tolerance, then you can simply Google risk tolerance questionnaire and find dozens of options.
Use actual numbers to inform the choices youre going to make about saving and investing right now. Sit down together and create your bare essentials budget." This should include enoughto meet your basic needs: shelter, food, transportation, medication, utilities, insurance and debt payments.
The general rule of thumb is that you should have three to six months of living expenses in an emergency fund. And right now, it is better to be on the conservative side of that rule as were still unclear when, and if, millions will be able to go back to work.
Now, this emergency fund doesnt have to be to your typical lifestyle. Just focus on that bare essentials budget number. For example, if you need $3,000 per month for the basics, then you should have $18,000 in savings as your emergency fund.
If you don't have at least six months of emergency savings, it would be wise tofocus on contributing o retirement accounts as yourinvestment strategy and redirect other money towardsavings. That way, you'restill investing, in a tax-advantaged way, plus boosting savings to appease the risk tolerance of the saver.
There are a lot of reasons people are getting spooked by the stock market. For many of us millennials, its been a really smooth bull ride for the last decade, minus a fewblips.
There are still people on solid financial footing who are primed to take advantage of the stock market. Perhaps these two both have secure jobs and a healthy emergency savings with six months of living expenses or more. Maybethe saver is wary of the stock market period and even more anxious now that its turbulent. It is critical for the saver (and all of us) to remember that the stock market is cyclical, and all its history indicates to us that the recent volatility will end and a bull market will return.
While it may very well make sense for this coupleto keep investing in stocks, its also important to be mindful of how youre investing. Now is probably not the time to try toteach yourself day trading or complicated investing techniques unless you are comfortable losingsome money. To quote the Oracle of Omaha again:Wall Street makes its money on activity. You make your money on inactivity.
(Photo: The Motley Fool)
Erin Lowry is the author of "Broke Millennial Takes On Investing" and "Broke Millennial: Stop Scraping By and Get Your Financial Life Together."
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I want to save. My partner wants to invest in stocks. Who's right? - USA TODAY