By Dhirendra Kumar

With the stressful growth situation continuing, higher interest rates are unlikely to be seen any time soon. This means smart savers need to think clearly about using equity-based mutual funds as a source of regular income. The realisation that bank fixed deposits are a poor way of earning an income hasnt come a day too soon. On an inflation adjusted basis, fixed deposits (and other interest-bearing assets) were always a bad bet. In reality, for deriving a regular living income, specially for long periods as in retirement, equity mutual funds or balanced funds are by far the best option.

Every kind of logic points to this: One, a lower tax rate. Two, taxation only on withdrawal. And three, higher returns. Taken together, this effectively closes the argument. Lets see how.

Lets examine fixed deposits first. Suppose you have Rs 1 crore as savings from which you need a regular income. In a bank FD, a year later, it will be Rs 1.07 crore. So you have earned Rs 7 lakh, effectively Rs 58,000 a month, right? Only in theory. Assuming an inflation rate of 5%, if you want to preserve the real value of your Rs 1 crore and continue earning for years, you must leave Rs 1.05 crore in the bank. That leaves Rs 2 lakh for you to spend, which is just a paltry Rs 16,666 a month! This means that if you need Rs 50,000 a month, you need Rs 3 crore. Of course, at that level, income tax also kicks and about Rs 30,000 a year will have to be paid. Its actually even worse, because the tax has to be paid whether you realise the returns or not.

The situation is different when, instead of receiving interest, you are withdrawing from an investment in a hybrid (balanced) mutual fund. Unlike deposits, these are high-earning but volatile. In any given year, the returns could be high or low, but over five to seven years or more, they comfortably exceed inflation by 6-7% or even more. For example, over the past five years, a majority of equity funds have given returns of 12-14% or more. The returns may have fluctuated in individual years, and thats something that the saver has to put up with, but this is the way to defeat the threat of old age poverty.

In such mutual funds, one can withdraw 4% a year and still have a comfortable safety margin. On top of that, the tax is much lower. Instead of being added to your income, as with interest income, you have to pay capital gains tax on withdrawal. As long as the period of investment is greater than one year, returns from equity funds are taxed at 10%. So for a monthly income of Rs 50,000, Rs 1.5 crore will suffice instead of Rs 3 crore as with FDs. And no matter how high your savings and expenditure, its still taxed at 10%.

However, the tax advantage has yet another hidden factor. Lets say you invest Rs 10 lakh in a mutual fund. A year later, the value of the investment increased to Rs 10.80 lakh. Now, you want to withdraw the Rs 80,000 you have gained. In your holding, 7.4% is the gain and the rest (92.6%) is the original amount you invested. When you withdraw any money, the withdrawal shall be considered (for tax purposes) to consist of the gains and the principal in this same proportion. Therefore, of that Rs 80,000, only Rs 5,926 will be considered gains and will be added to your taxable income. Obviously, this makes a big difference in the tax you pay.

The conclusion is clear: in every possible way, it is better to draw your earnings as regular withdrawals from an equity mutual fund, rather than as interest income. The SWP (Systematic Withdrawal Plan) facility is available for regular withdrawals from every open-ended fund. The volatility may be a little uncomfortable in the short-term, but the maths and the logic are crystal clear.

(The writer is CEO, Value Research)

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How to earn regular income by investing in mutual funds - Economic Times

Time-honoured practices may no longer work

If there is sense and sensibility in investing, bonds are undoubtedly the choice for Jane Austens grounded Elinor rather than her flighty Marianne. In modern times the regular income they provide has made them a bedrock of portfolios for those wanting to avoid the sturm und drang of volatile equities. But do they make sense today, when trillions of dollars of bonds worldwide offer outright negative yields if held to maturity?

The worry is that bond prices, which are inversely related to their yields, are perilously high. Maybe they can climb a little further, buffing the established capital gains of the funds that hold them. Or they could fall a long way, denting the wealth of those who depend upon them. Reaching a view on the merits of bonds is crucial for investors in 2020. These longer-term forms of debt, issued by governments and companies, traditionally provided ballast to steady returns. A commonly followed rule in sensible retirement planning is to hold an increasing share of savings in bonds when approaching pensionable age.

But time-honoured practices may no longer work in the strange era of negative bond yields. Though these are essentially a eurozone and Japanese phenomenon, yields elsewhere reached historic lows in 2019. Those on 10-year gilts issued by the British government fell to around 0.4 per cent. At such nugatory levels, returns rely primarily on further price rises, but their logical corollary is still-lower yields. You can try to offset them by holding higher-yielding corporate bonds, but these expose you to the risk of firms that have issued them going bust.

Despite these real concerns, some current anxieties about investing in bonds are overdone. Though gilt yields have moved up from the depths of last year, they were still only a meagre 0.75 per cent as 2020 dawned. For years investors have been wrongly fretting that bond yields are unnaturally low and will rebound, driving prices down. Back at the start of 2017, yields on 10-year US government debt looked set to rise from around 2.5 per cent as the newly-elected President Trump eyed a borrowing splurge. In the event, though they broke 3 per cent at times in 2018, in 2019 they sank back below 1.5 per cent and started 2020 below 2 per cent.

The world of ultra-low interest rates shows little sign of disappearing. Population aging is a structural force holding rates down. A bulge of middle-aged people, who typically save more, has pushed up savings, while investment opportunities have diminished as fewer young people join the workforce. The resulting downward pressure on bond yields should eventually abate as more baby boomers retire and run down savings, but the process is an inherently gradual one.

There are also more immediate forces constraining yields. Global trade growth has slowed to a virtual standstill and the world economy looks stuck in a low-growth rut. The US Federal Reserve and other central banks eased monetary policy still further last year and are on standby to deliver yet more stimulus, bearing down on both short- and long-term interest rates.

As developed economies turn Japanese, with very low inflation and interest rates, it is worth learning lessons from this demographic forerunner, whose working-age population started to fall more than two decades ago. Since then bond yields have subsided and investors hoping to gain from a reversal in the trend have fared so badly that their strategy was dubbed the widowmaker. Global bond markets may appear scarily overpriced, but betting against them this year may be even more dangerous.

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Investment report: betting on bonds - Prospect

Dear Moneyist,

I have a money problem that is somewhat different from what I read in your column. It is a problem that many would not view as a problem, but its eating me alive. I am 22 years old. I graduated from college last May and, nearly immediately, started a career in management consulting. I make good money and have already built up an impressive (for my age) nest egg.

See also:I love my girlfriend, but she treats her father like an ATM for designer clothes and vacations

I graduated from college with no debt and $45,000 in savings and investment. I saved and invested large portions of my part-time job paycheck for as long as I can remember. I have always maxed out my Roth IRA contributions. I now have around $70,000 saved and invested in my retirement, brokerage, and cash saving accounts.

And yet I am extremely unhappy. I am very grateful for the money I have at my age, especially seeing many of my friends who are drowning in student debt after graduating from college. However, I am so unhappy. I fear I will live my entire life with the miserable feeling of desiring more and more money. I do not want to live like that.

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I need to change my perspective on money, but I do not know what to do. I am addicted. I check my brokerage accounts multiple times a day and my mood is greatly affected by how the markets are doing. I am addicted to watching the total accounts number grow in my portfolio. Can you help? I do not want to live my entire life like this.

James

Also see: Can I leave my stepchildren nothing if my husband dies?

Dear James,

Investing is a smarter past-time than gambling, but its also a second cousin, once removed. Neither provides the answers to all of lifes problems.

You are way ahead of the game. Just half (47%) of working millennials have $15,000 or more in savings, while only 16% have $100,000 or more in savings, according to recent Bank of America BAC, -1.70% report, which surveyed 2,000 millennials aged 23 to 37. The bank asked about savings, including bank savings/checking accounts, IRA, 401(k) and other investment accounts.

Our attention spans are getting shorter, our sleep cycles are increasingly interrupted by technology and our brains are hot-wired to the information superhighway. Facebook FB, -0.83%, Twitter TWTR, -2.07%, dating apps like Tinder IAC, -2.42%, video games and, yes, even investment apps can give us instant validation and lead to addictive behavior.

Technology can stop us from being present and become a source of escape from the realworld. Some people are lonely; others suffer from anxiety and depression and/or stress and social anxiety. Instagram even stopped telling users how many likes their followers get in order to reduce this never-ending search for validation.

Dont miss: Im 65, my mortgage is paid off and I have $370,000 in savings, so why I am still worried about money?

A couple of years ago, Joel Edwards, executive director ofMorningside Recoveryin Newport Beach, Calif., told me,The smartphone is the tool that helps exacerbate that addiction or its a tool they use not to deal with that addiction.These technologies are driving addictions faster and with more intensity than ever before.

Similarly, Cole Rucker, CEO of Paradigm Malibu, a mental health center, said people use smartphones as a coping skill rather than learning to sit with their emotions and developing relationships. It doesnt mean theyre scoring drugs, but they might be shopping on eBay EBAY, -0.70% and Amazon AMZN, -1.22% or, like you, obsessing about their stocks.

There are plenty of actions you can take. Exercise, healthy eating, volunteering and/or helping others, meditation and getting enough sleep are all key to our physical and emotional health. If youre already on the beam and have perfected that pentagon of good living and, honestly, who has? remove the apps from your phone and commit to checking your portfolio once a month.

Also see: 5 ways to buy happiness

Only you can figure out what lies beneath. Did you have a financially insecure childhood? Is it an outlet for other anxieties? Or do you worry about the future and this has become an outlet for those fears? I cant answer that question and I dont want to play the part of armchair psychoanalyst, but theyre questions worth asking.

Putting my Moneyist hat on, I can tell you this: its better to answer these questions today because if and when there is a downturn in the market, you want to be emotionally and mentally prepared to ride it out, rather than panic. Financial advisers generally recommend against people making investment decisions based on emotion. You could see a financial therapist.

The Financial Therapy Association takes a holistic approach to managing your finances, including your personal history and relationships past and present. Money and all the trappings of wealth do give us the luxury of choice, but financial freedom will not make all of our other worries go away. The good news: You are on the road to financial independence.

There are many things in life beyond our control, and short-term fluctuations in stocks is one of them. Youve learned to plan for tomorrow. For 2020, your next task is to live for today.

Do you have questions about inheritance, tipping, weddings, family feuds, friends or any tricky issues relating to manners and money? Send them to MarketWatchs Moneyist and please include the state where you live (no full names will be used).

By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Would you like to sign up to an email alert when a new Moneyist column has been published? If so, click on this link.

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Im 22 with $70,000 in savings and investments, but Im addicted to checking my brokerage accounts multiple times a day - MarketWatch

Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. But these are also essential in determining whether a stocks price performance is better than its peers or the industry average.

If a stocks performance is lacking that of the broader groups despite impressive earnings growth or valuation multiples, then something must be wrong.

Its always advisable to stay away from these stocks and bet on those that are outperforming their respective industries or benchmarks. This is because betting on a winner always proves to be lucrative.

Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 over a period of 1 to 3 months at the least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.

Finally, it is important to find out whether analysts are optimistic about the upcoming earnings results of these companies. In order to do this, we have added positive estimate revisions for the current quarters (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.

Screening Parameters

Relative % Price change 12 weeks greater than 0

Relative % Price change 4 weeks greater than 0

Relative % Price change 1 week greater than 0

(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.)

% Change (Q1) Est. over 4 Weeks greater than 0: Positive current quarter estimate revisions over the last four weeks.

Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years can get through. You can see the complete list of todays Zacks #1 Rank stocks here.

Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.

VGM Score less than or equal to B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or #2 (Buy) offer the best upside potential.

Here are five of the 10 stocks that made it through the screen:

SYNNEX Corporation SNX: SYNNEX is a leading business process services provider to original equipment manufacturers (OEMs), resellers, systems integrators and retailers and customer engagement services (CES) to a wide array of vertical markets. The FY 2020 Zacks Consensus Estimate for this Fremont, CA-based company is $13.97, representing 5.4% earnings per share growth over FY 2019. Next fiscal years average forecast is $14.54 pointing to another 4% growth. SYNNEX has a VGM Score of A.

MagnaChip Semiconductor Corporation MX: A designer and manufacturer of analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive and Internet of things (IoT) applications, MagnaChip Semiconductor has a VGM Score of A. Over 30 days, the Luxembourg-based company has seen the Zacks Consensus Estimate for 2020 increase 91.2% to 65 cents per share.

Delta Air Lines DAL: Delta Air Lines, headquartered in Atlanta, GA, is a leading provider of scheduled air transportation for passengers and cargo throughout the United States and around the world. The firm has a VGM Score of A and an excellent earnings surprise history having surpassed estimates in each of the last four quarters, the average being 8.2%.

Amedisys, Inc. AMED: Amedisys provides home health and hospice services throughout the U.S. to the growing chronic, co-morbid, and aging American population. Sporting a VGM Score of B, this Baton Rouge, LA-headquartered companys expected EPS growth rate for three to five years currently stands at 16.4%, comparing favorably with the industry's growth rate of 12.7%.

Forterra, Inc. FRTA: Founded in 2016 and headquartered in Irving, TX, Forterra is a leading manufacturer of water and drainage pipe in the U.S. and Eastern Canada. The company has a VGM Score of A and an excellent earnings surprise history having surpassed estimates in each of the last four quarters, the average being 78.4%.

Story continues

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Invest in These 5 Stocks With Solid Relative Price Strength - Yahoo Finance

BERKELEY COUNTY, W.Va. (WSAZ) -- A leading manufacturer of consumer and profession products has announced it is seeking approval to build a cat litter manufacturing plant in Berkeley County.

If approved, the Clorox Company's investment would bring $192 million in economic development to West Virginia and create approximately 100 full-time jobs.

"I can't tell you how proud I am that Clorox is exploring this expansion opportunity in West Virginia," Gov. Justice said. "Clorox has a proven track record in the Mountain State both Mineral and Tucker Counties have greatly benefited from having the company's Kingsford charcoal facilities and all the investments the company has made in our local communities."

Clorox sent a draft plan to Berkeley County officials, which is the first step in the development process for the proposed site. The company is planning several public meetings and two open houses for the community in the coming weeks.

Berkeley County was chosen as the ideal location for the proposed facility due to the local workforce availability, nearby resources, and regional transportation infrastructure including rail.

The Clorox Company, based in Oakland, CA, is a Fortune 500 company that manufactures and sells cleaning products and household supplies under various brands.

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The Clorox Company to make $190 million investment in West Virginia - WSAZ-TV

Digital currency asset manager Grayscale Investments banked a stellar 2019 to surpass the $1 billion mark in total investments and now has over $2 billion in AUM.

In a comprehensive eighteen-page report, the firm touted a record Q4 in 2019. It raised $225.5 million into its investment products, lifting the years inflow to $607.7 million after back-to-back quarterlies over $225 million, possibly signaling a larger market trend.

71 percent of the years inflow sprung from institutional investors. Managing director Michael Sonnenshein told Cointelegraph:

We saw record-breaking investment into Grayscales family of products, illustrating continued demand from investors for digital currency access products and with a majority of investment coming from institutions, its clear that were experiencing institutional adoption.

Existing clients amassed 75% of capital raised. 36% of Grayscale clients now use multiple of the companys 10 products. The company saw its client base grow by 24%.

Grayscale Bitcoin Trust, which Cointelegraph first reported on last year, led 2019s investment demand with $471.7 total $193.8 million of it raised in Q4, another historical high for the New York-based firm.

Signaling a shift among traditional institutions, communications director Marissa Arnold told Cointelegraph, As the largest digital currency asset manager, we feel that our numbers are indicative of broader market sentiment and institutional flows into digital currency.

As younger investors continue finding Bitcoin and other digital currencies safer investments, especially as Bitcoin enjoys a slight surge, this may be the case.

Projecting the larger crypto market, Arnold added:

The asset class is experiencing increased validation from legacy companies like Fidelity and CME, signaling to institutions and the investment community as a whole that crypto as an asset class is here to stay.

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Grayscale Investments Reports Record-Breaking Year - Cointelegraph

As a financial advisor, the majority of my conversations with clients and prospects revolve around money. They ask how much they should invest to reach their goals, what they can expect in returns, and how to mitigate risk. How a financial services professional answers these questions is what separates a true advisor from a salesperson. Theres nothing wrong with being a salesperson, but if I am to act with fiduciary responsibility on behalf of my clients, I must know whats important to them. Whats important doesnt always mean what we think it does. When it comes to buying an equity position in a company, what could be more important than returns? As it turns out, a lot.

Advances in technology, among other things, have provided both investors and advisors an opportunity to dive deeper than ever before into the behavior of companies.

Publicly traded companies have a culture. The culture is one they both encourage and create, and more often than not, the true culture of a company is reflected by the philanthropic and investment decisions made by its leadership. For a time, people of faith were limited in their ability to gather knowledge about what the companies in their portfolio support outside of what they primarily do. Advances in technology, among other things, have provided both investors and advisors an opportunity to dive deeper than ever before into the behavior of companies. I, as a financial advisor, have a responsibility to inform my clients of everything I think theyd be interested in knowing about their investments. The majority of the time, conversations about whats really important lead to positive results.

In a recent discussion with a couple I am new to working with, the conversation reached a point where I was able to ask, What wouldnt you invest your money in? Is there anything specifically you would want to avoid? Yes, of course, they replied. We wouldnt want to invest in companies supporting abortion, pornography, gambling , along with a couple other industries. Their response gave me the opportunity to act as a fiduciary, in the best interest of my clients.

I showed the couple a report based on information theyd provided before our meeting using the eVALUEator Biblically Responsible Investing screening tool. The report highlighted where and how their portfolio was currently invested. It was revealed that more than 30% of the companies they were holding through mutual funds and ETFs are actively involved in activities they just told me they wanted no part of. They were, to say the least, shocked.

Unfortunately, shock is an all-too-common response. I live and work just south of Nashville, in the Bible Belt. To say faith and values are important here is an understatement. Most people I know try to live out those values in their everyday lives as best they can. But when it comes to what people invest their money in, they just dont know what they dont know. Truthfully, its one of those things we dont talk about that much, but we should. Its my job to inform people how their investment dollars are being used as much as it is to discuss returns, strategies, and progress toward their ultimate goals. If I do one and not the other, I believe I have missed the mark.

There are a number of reasons why I believe someone should consider biblically responsible investing for their portfolio. I want to briefly touch on two reasons: values and stewardship.

Many people cant tell you where their money is invested. The questions advisors hear most often are related to returns. When our money is invested, we become owners in these companies, and through our investment, we support their mission, vision, and culture. Our dollars reinforce and grow values you may not support. Biblically responsible investing allows you to invest in companies whose mission, vision, and culture align with pro-life, pro-family values while experiencing the same or possibly better returns.

Many of the stocks in the S&P 500 support industries and organizations that do not meet the screening criteria of the eVALUEator Biblically Responsible Investing tool. Every portfolio I have reviewed has been holding multiple positions in those companies. As people of faith, we are called to be stewards of ALL the resources with which we are blessed, including how we invest our financial blessings. 1 Corinthians 10:31 challenges us with the words whatever you do, do it all for the glory of God.1 I am reminded of the Parable of the Talents. The consequences for the one who took the money hed been given and had nothing to show for it when the master returned were severe. The story tells me that where we invest money is important to God.

As a fiduciary, I examine multiple solutions to address clients needs and remove as much risk as possible. When I help people align their values with their investment goals (and the biblically responsible investing options are plentiful), I have lived up to who I am as a true financial advisor.

This content was brought to you by Impact Partnership BrandVoice. Investment advisory services offered through Optivise Advisory Services, LLC (OAS), an SEC-registered investment advisor.OAS and Anchor Financial, Inc. are independent of one another. Insurance and annuities offered through Stacey Andres, TN Insurance License #2239578. DT# 1051467-0121

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The Crossroads Of Investments And Values - Forbes

Theres a reason many high-net-worth individuals still consider real estate the best investment you can make today: its a solid foundation for building wealth. If you invest wisely in one property that appreciates over time, you can use the residual income generated to acquire more properties and continue to expand your assets.

Real estate investing isnt a get-rich-quick scheme or a venture you should jump into without doing your homework but properly executed, it is a savvy strategy for creating and growing wealth. And if you are considering getting started in real estate in 2020, multifamily properties are an excellent first step into the market.

Why multifamily housing?

For years, multifamily housing has attracted the attention of investors looking for high-value, low-risk properties. The multifamily sector continues to lead as the most in-favor asset class for high-net-worth investors, according to recent data from National Real Estate Investor (NREI). A growing number of Americans are renting, due to workforce, demographic and lifestyle shifts, and those trends seem likely to continue in coming years. With occupancy rates high and vacancy rates low, now is a good time to pursue multifamily properties.

You have to be willing to put in the work and get out from behind your computer to be successful as an investor. Here are four steps you can take to lay the groundwork for your first real estate investment.

Identify your purchasing budget before you engage.

You wouldnt walk into a car dealership or even a shopping mall without first knowing how much you can spend. This step is even more critical when it comes to real estate. Study your finances carefully before looking at properties. What is the firm limit of your purchasing budget? What is a conservative range you can stay within to allow for unexpected expenses? Set realistic expectations from the beginning so you dont get in over your head on your first deal.

Get to know the neighborhood you'd like to invest in.

You need to be very familiar with an area youre thinking about buying in. What are its benefits and drawbacks? What kind of tenants are you hoping to attract? What features and amenities are most important to this audience? For example, if youre looking to rent apartments to families with small children, overall safety and public school proximity are factors to consider.

Knowing the neighborhood well also helps you estimate how far your budget will go and how long a property will take to sell or rent. Use this information to shape your overarching goal, whether that is holding onto it as a long-term investment property or flipping it to sell in a shorter period of time.

Assemble your dream team.

Real estate investing isnt a one-person operation. Youll need a reliable team of professionals who are great at what they do and with any luck, youll be able to work with them on many more projects in the future. Find the right people based on their area of expertise and the scope of work.

Research realtors who specialize in the neighborhood you want to buy in, so they can help you navigate pricing, area demographics and contract negotiations. Ask for recommendations for contractors and other trades (electrician, plumber, carpenter, HVAC technician, etc.) who can deliver outstanding results. Great workmanship is the key to getting your property rented or sold in record time. If you offer a home in pristine condition, it makes the decision for the tenant or buyer simple. So its crucial to build a crew that has an eye for detail and doesnt do quick, sloppy work, whether they are refreshing the exterior paint or doing a full gut renovation.

Weigh the benefits of hold vs. sell.

While it may sound good in theory to buy and hold real estate as investment properties, you also have to know your capabilities. Do you have the time and patience to deal with tenants? Or do you prefer to get in and out and onto the next project? Only you know your personal abilities and preferences. Take them into account as you run the numbers. What should your ideal profit margin be if you hold vs. sell? What other factors such as time, energy or other obligations do you need to factor into your decision?

Investing in real estate takes patience, time and diligence, but it can make a major difference in your financial future. Make 2020 the year you take the leap as a first-time investor.

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Get Started In Multifamily Real Estate Investment In 2020 - Forbes

David Solomon, chief executive of Goldman Sachs, recently wrote an editorial in the Financial Times in which he laid out the premise behind a $750 billon plan for a decade of investing, financing, and advisory activity exclusively for 9 climate-critical areas such as renewable energy, sustainable agriculture, and carbon reductions.

Companies have traditionally treated sustainability as a peripheral issue, writes Solomon in the FT, focusing narrowly on the way they manage their impact on the environment. We dont have the luxury of that limited perspective any more.

The evidence of climate change is clear. And, people in both developed and developing countries are questioning the ability of their economies to reward their hard work.

Solomon and Goldman Sachs believe that transportation, the largest carbon-emitting sector of the world economy, must absolutely be a priority, while also mentioning affordable education and retraining investments, and investments in sustainable agriculturethe details of which he didnt mention in his short piece.

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Goldman Sachs stated that as part of its commitment to the 9-sector plan, it will neither finance, nor advise on any project that directly supports new upstream Arctic oil exploration or development.

Also included was a similar commitment to refuse all financing and support for coal-fired power plants unless they also included modern carbon capture technology to the degree that the emissions are offset.

A joint statement from the Sierra Club and Rainforest Action Network said that the banks fossil finance policy is now the strongest among the big six U.S. banks.

Important in their investing blueprint is a focus on climate goals that have definable and measurable metrics. This will allow Goldman Sachs partners to accurately track environmental progress of such pathways as well as the financial growth potential and measurable returns, which Solomon insists must be a primary focus.

MORE: Top 10 Most Exciting Environmental Stories in 2019 Raise Hope for Eco-Friendly 2020

capital must be deployed to those opportunities that have the greatest potential for success, and we must generate strong returns on invested capital to serve those saving for retirement, writes Solomon in the FT. This is because retirement is a vitally important source of investment capital, and is one of the most reliable metrics for economic strength.

Here, classic economics meld with climate-activism in an interesting way that can help everyone involved achieve their goals. People who care most about climate change, Swedish activist and Time Magazines Person of the Year, Greta Thunberg for example, often remark that the previous generation has sacrificed the environment and the climate of their childrens generation in order to maximize profit and material possession; or some variation on this same theme. Such a focus can now be used to rev the engine of solution-based start-ups and industries.

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Consumer buying is a much weaker marker of economic strength and resilience than savings, investment, and production, as Solomon points out, which goes hand in hand with those acting to reduce carbon emissions. Like a steady saver, they would rather sacrifice time, capital, and pleasure now so as to be able to continue to enjoy them for years to come.

This blending of mutual long-term planning can not only promote a stronger economy, but a more sustainable world with a more stable climate.

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Goldman Sachs Unveils $750 Billion Climate Plan For Investing in Solutions, Vows Never to Support Arctic Drilling - Good News Network

Toyota Motor Corporation TM will make an investment of $394 million in the U.S. start-up, Joby Aviation, which engages in the production of all-electric vertical take-off and landing aircraft (eVTOL), for urban transportation services.

Toyota, alongside Baillie Gifford and Global Oryx and other investors, is the lead investor in Joby Aviation's $590-million Series C financing. It will work with Joby Aviation to design and build a fleet of eVTOL for use in a ride-hailing service.

The prototype aircraft, which looks like an enormous toy drone, features six electric propellers and is capable of flying 150 miles on a single charge, at speeds of up to 200 miles per hour.

Toyota was also part of a previous funding round for Joby Aviation that helped the company raise $100 million, back in 2018. The latest investment brings Joby Aviations total funding to $720 million, including the previous rounds.

Further, Toyota is making advancements toward self-driving vehicles. It is signing collaboration agreements to develop autonomous car technology. In 2019, Toyota invested in Recogni Inc. and May Mobility for self-driving shuttle buses. Earlier this month, it announced plans to build a prototype city of the future Woven City in Japan, which will be built on a 175-acre site at the base of Mt. Fuji.

Toyota plans to introduce fuel-cell-enabled SUVs, and pick-up and commercial trucks, by 205. Additionally, the company is working on hydrogen fuel stations in collaboration with various partners. It aims to achieve half its global sales from electric vehicles during this period.

Moreover, Toyota is shifting its vehicle production to newer cost-saving platforms, which will slash costs by 20%. The company has strengthened its ties with Subaru and the partnership intends to make better cars suitable for CASE (connected, autonomous, shared and electric) era.

Zacks Rank & Stocks to Consider

Currently, Toyota Motors carries a Zacks Rank #3 (Hold). Shares of Toyota have outperformed the industry it belongs to. Its shares have appreciated 11.7% compared with the industrys rise of 3.7%.

Some better-ranked stocks in the Auto-Tires-Trucks sector include Blue Bird Corporation BLBD, BRP Inc. DOOO and SPX Corporation SPXC, each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of todays Zacks #1 (Strong Buy) Rank stocks here.

Blue Bird has an estimated earnings growth rate of 25.47% for 2020. The companys shares have appreciated 7.6% in a years time.

BRP has a projected earnings growth rate of 19.75% for the ongoing year. Its shares have gained 57% over the past year.

SPX has an expected earnings growth rate of 8.09% for the current year. The stock has surged 79.7% in the past year.

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This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the companys drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blue Bird Corporation (BLBD) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report SPX Corporation (SPXC) : Free Stock Analysis Report BRP Inc. (DOOO) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

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