The Best ROI* (Almost 40%!) & 7 Life Hacks That Save Thousands. *Return on Investment If I told you that you could make almost 40% return on a safe bond, would you want to learn more? What if saving money with brave, unconventional choices worked even better than trying to work your fingers to the bone earning more income? While not every life hack mentioned below will be right for your situation, and it’s easy to stay in our status quo even when life doesn’t add up, I encourage you to read through each possibility and dive in deeper on the ones that have even an inkling of interest to you. Breaking old habits isn’t easy, but when we do, there can be rainbows, butterflies and even a pot of gold on the other side. There can be literally tens of thousands of dollars that we can repurpose every year away from our “bills”” toward things that we love more. We might not think that we have any choice in the matter. However, each bill we toss out the window can bring thousands, sometimes even tens of thousands of dollars every year, that we can spend and invest on things that bring greater dividends to our lives. Below are just a few samples of what’s possible, alongside real-life stories of people who have embraced and benefited from them. 7 life Hacks that Save Tens of Thousands of Dollars Annually and 1 Safe “Bond” that can Earn a 40% ROI Solar College Commute Health Insurance Housing Energy Efficiency Water And here is more information on each point. Solar Saves Thousands Annually. C’s solar Last year a friend installed solar. She’s absolutely thrilled with the results. She is saving $7200 every year. Her payback time on the solar is 2.6 years. Thereafter that $7200/year in savings is hers to keep and spend on things she likes a lot more than utility companies. Here’s the math. Cost of the panels $26,667 Tax credit $8000 Net cost $18,667 Annual savings on her electric bill: $7200 Payback time: 2.6 years Annualized gain if this were a fixed income investment (after the payback): 38.6% Also good for the planet. Clearly, receiving almost 40% return on investment is one of the best returns out there. Additionally, your solar panels are not going to be subject to the wild rides of the Wall Street rollercoaster. However, since your stock broker/salesman cannot offer you solar panels and does not benefit from suggesting them, you’re unlikely to hear this formula and amazing ROI. Additionally, there is a lot of noise, sponsored by old school utility and oil/gas providers, that tries to convince us (or force us) not to buy solar. The person who sells you solar panels is also a salesman. That’s why it’s important for us to go through the solar checklist before we get our quote. Read the “How to Save Thousands Annually with Smarter Energy Choices” chapter of The ABCs of Money, 5th edition. Be sure to consider whether or not you’re going to power your electric vehicle with solar. College Many teens get roped into the college experience, whether or not it is right for them. If we exit college with massive debt and a monthly bill that forces us to move into our parent’s garage, we may not think college was worth it. College debt forced Millennials to delay their home purchase by an average of 7 years. The ABCs of Money for College outlines many steps that parents and teens can take to get a better degree for half the cost, and ways to determine the best next step after high school. Is a gap year a good idea in order to gain perspective on life? Is a trade better matched with your teen’s passions and talents? What are the jobs of tomorrow, and how can that help to inform our decision-making? How much should you put into the college savings account, and what kind of return should you expect? All of that (and more) is included in The ABCs of Money for College. Parents should start the process when their child is born. Reduce, Green or Eliminate your Commute Most people spend almost $8000 every year on their personal vehicle. In a recent coaching session, one parent was complaining that his car insurance doubled from $4000 a year to $8000 when he added a teen driver to the coverage. The family of 4 has four cars in the family in the city that has very good public transportation and a lot of bike lanes, bike share, and e-scooters. That extra $4000 in insurance also doesn’t include the car payments, the gasoline and the maintenance on the vehicles (or the 2nd teen who is almost driving age). Imagine if $4,000 were put into their college savings plan or a dependent IRA, where it has the possibility to compound gains, instead of flying out the window, making the car insurance company rich. When I spoke with the Mayor of Santa Monica a few years ago, he shared that his family of four adults has five bikes and one car. Occasionally, someone will have to call a cab or rideshare. However, the savings, including cabs, is still a fraction of what it would be to insure four cars and drivers. I personally use public transportation, bikes, e-scooters and walking for the majority of my transportation needs. Occasionally, I rent a car. My transportation costs are a fraction of what they were before, and I enjoy greater health as a result of peddling to my destination, instead of sitting in gridlock traffic. Whether you work from home a few days a week, walk or bike for local errands, consolidate your driving needs to one car or become a bike commuter, is there a way to stop making the gasoline and car insurance company rich and live a richer life? Health Savings Accounts Health savings accounts offer many cost-saving benefits. They work best if you and your family are healthy. You’ll still have the protection of health insurance – with a much higher deductible (which can be covered by the money in your HSA). Benefits of HSAs · Dramatically lower health premiums · Build up your own long-term healthcare retirement account · Tax credit · Stop making the health insurance company, rich, and use the thousands of dollars in annual savings to enrich your own life Learn more at IRS.gov and in the 1st chapter of The ABCs of Money, 5th edition. Community Housing Multigenerational housing is gaining in popularity. When we stop making the landlord rich, we can start building up equity with the goal of owning our own home free and clear before we retire. Thinking bigger often affords us even more personal space and time. Many times, the most expensive housing option is the smallest one. Splitting a much bigger space can result in $19,000 saved annually for each family in a shared home, with other benefits as well. I recently discussed this with Carmel Boss, the founder and CEO of Co-Abode.org. Watch our conversation on my YouTube.com/NataliePace channel. Did you know that women in India are more likely to be CEOs than in America? Multigenerational homes, where the grandparents provide childcare and do the cooking and cleaning, free up the mother to pursue her career goals. What could you do with $19,000 in annual savings? Is that enough incentive to sound the possibilities of how shared housing might work for you? Energy Efficiency We talked about how solar is saving C $7200 every year. Solar is great for sunny states but might not be the best choice for your neighborhood. However, everyone can benefit from smarter energy choices. Even without solar, energy efficiency upgrades to our own home can save thousands of dollars on the electric bill annually. It is also very good for the planet. I go over many energy saving tips in The ABCs of Money, 5th edition. If you’ve never learned the difference between your energy hogs and vampires, and how simple gadgets can save massive megawattage, this information will be a budget-changer. Native, Regenerative Landscaping Water is becoming scarcer, is in high demand and is expensive. Yet, when I consulted with Mark Nelson, a Biospherian and the author of The Wastewater Gardener, I discovered that he had managed water for two years in a closed environment when eight humans were locked inside the Biosphere 2. (Click to watch our Earth Gratitude feature with Mark and others.) Many cities, especially those where drought is a concern, offer incentives for getting rid of the carpet of grass that so many homeowners have. Good Neighbor Gardens is one nonprofit that helps homeowners to transition from wasteful expensive landscaping to farming their own yard. Adding in landscaping that is appropriate to your microclimate saves a lot of money and water, and also attracts important pollinators, birds, and other wildlife that are essential to biodiversity. Imagine if you save money on your water and your food bill. Another benefit of having native plants, mulch, and other carefully crafted gardens is that they absorb water better in case of the occasional deluge that can happen even in drought areas. Grey water recycling is another great budget hack. Shower, laundry and sink water can be used to water our gardens. Using a simple hose from the washing machine for this purpose is very affordable. However, an investment in proper plumbing can pay for itself quickly, offering cost savings for years to come. Pools and jacuzzis were popular back in the day, but are energy and water hogs. Many owners are spending an extra $1,200 or more annually on electricity and close to that amount on water and chlorine. Natural pools take away the costs of electricity and chlorine, and are clearly a better choice for water conservation and sustainability. As with many remodeling projects, the energy and water savings will pay back the investment in a certain timeframe, and thereafter you’ll have that money to keep. Bottom Line Sustainability and financial freedom go hand-in-hand. We can save thousands of dollars annually with smarter energy and budget choices. That means we stop making billionaires rich, and end our financial support of fossil fuel companies and polluters. We then have a lot more money for things we love more than plastic, gasoline, banks and insurance. These choices are also healthier for our home planet. Join us at our New Year New You Financial Freedom retreat, which has a very strong focus on the environment, teaching us how to protect our wealth, earn money while we sleep, save thousands annually and live a richer life. Learn more at https://www.nataliepace.com/. For daily money tips, follow me at @nataliewynnepace on my Instagram Broadcast Channel. Join us at our Jan. 13-15, 2024 New Year, New You Financial Freedom Retreat. Get valuable data and tools on how to best invest and monetize real estate. Learn nest egg strategies, how to get hot and diversified (including in EVs, crypto and AI), and what's safe in a Debt World. You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. Email info@NataliePace.com to register. Learn the 15+ things you'll master and read testimonials in the flyer (link below) and on the home page at NataliePace.com. Register with friends and family to receive the best price. "Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM Join us for our Restormel Royal Immersive Adventure Retreat. March 8-15, 2024. Email info@NataliePace.com to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. There is very limited availability, and you must register early to ensure that you get the exact room you want. This retreat includes an all-access pass to all of our online training for a full year for two! Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Substack on Apple and Spotify. Watch videoconferences and webinars on Youtube. Other Blogs of Interest Portugal Eliminates Tax Advantages for Ex-Pats. Holiday Gift Giving on any Budget. Including No Budget. Once in a Century Events are Happening Every Day. The Crypto Winter Enters Its 3rd Year. Earn $50,000 or More in Interest. Safely. Finally. Freebies and Deals for Black Friday and Cyber Monday. Auto Strikes End. EV Price Wars Continue. WeWork's Bankruptcy. Half-Empty Office Buildings. Problems in our Personal Wealth Plan. Solutions for Unaffordable Housing. The Magnificent 7 Drag NASDAQ into Another Correction Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing Air B N Bust? Santa Rally 2023 or Time to Get Defensive? Barbie. Oppenheimer. Strikes. Streaming Wars. Netflix. Monero: A Token of Trust? 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) The USA AAA Credit Rating is on a Negative Watch. Lithium. Essential to EV Life. I'm Just Not Good at Investing. Investors Ask Natalie. Should I Buy an S&P500 Index Fund? Investors Ask Natalie. Bonds Lost More than Stocks in 2022. 2023 Company of the Year Do Cybersecurity Risks Create Investor Opportunities? Writers Strike, While Streaming CEOs Rake In Hundreds of Millions Annually. I Lost $100,000. Investors Ask Natalie. Artificial Intelligence Report. Micron Banned in China. Intel Slashes Dividend. Buffett Loses $23 Billion. Branson's Virgin Orbit Declares Bankruptcy. Insurance Company Risks. Schwab Loses $41 Billion in Cash Deposits. Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? The Online Global Earth Gratitude Celebration 7 Green Life Hacks Fossil Fuels Touch Every Part of Our Lives Are There Any Safe, Green Banks? 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. Which Countries Offer the Highest Yield for the Lowest Risk? Solar, EVs, Housing, HSAs -- the Highest-Yield in 2023? Why We Are Underweighting Banks and the Financial Industry. 2023 Bond Strategy Emotions are Not Your Friend in Investing Investor IQ Test Investor IQ Test Answers Bonds Lost -26%, Silver Held Strong. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. The Bank Bail-in Plan on Your Dime. Rebalancing Your Nest Egg IQ Test. Answers to the Rebalancing Your Nest Egg IQ Test. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.
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Portugal Eliminates the Tax Advantages for Ex-Pats We all know someone who has purchased a place in Portugal. The Portuguese government was keen to attract foreign investment and reduce its deficit and debt, after enduring hardship, austerity and near bankruptcy in the wake of the Great Recession. (Portugal was one of the infamous PIGS countries during the Financial Crisis of 2008, and still has a Debt to GDP of 119%.) As part of its economic recovery plan, foreigners could get a golden VISA by investing and creating jobs in Portugal, and there was a special 10-year tax break for “non-habitual residents.” (Portugal is a socialist country. The personal income tax rate in Portugal can run as high as 48%.) Policies have changed dramatically this year, however. The Golden VISA has new restrictions, and there is a bureaucratic log-jam on processing them. There is a ban on new Airbnb licenses, except in rural areas. On November 29, 2023, the Portuguese Parliament voted to phase out the NHR tax breaks. Anyone already in the plan will continue through their 10-year period. However, beginning on January 1, 2024, new residents will no longer be eligible. Why the Change? While the tax and VISA incentives did indeed attract foreign investment in droves, it also sparked soaring home prices. Over the last eight years, home prices are up 137% (source: Reuters/Confidencial Imobiliario). Rents have rocketed up 65% or more. Portugal is one of the more modest countries in terms of income. The spike in housing costs have forced some workers to live in tents, rather than pay all of their income for rent. Locals are taking to the streets in protest, with many dressed up as the Monopoly mascot, shouting, “Housing is a right.” On November 29, 2023, the ousted Prime Minister António Costa defended the policies of his government, saying, “Throughout these eight years, we turned the leaf on austerity and took the country from a situation of excessive deficit to one of solid and peaceful budgetary stability that now broadens the freedom of political choices.” Costa resigned on November 7, 2023, over allegations of corruption. A Special Election is scheduled for March 2024. The Socialist Party has the majority of seats in Parliament. The political and unaffordable housing crises, along with higher interest rates, has economists projecting a slowdown in GDP in Portugal from 2.2% in 2023 to 1.5% in 2024. Everyone Wants to Move to Portugal. Should You? Pluses Portugal is one of the most affordable countries in Europe Food is cheap Great public transport Wonderful weather Beautiful beaches Property rights and judicial effectiveness score high on the Index of Economic Freedom Crypto-friendly Minuses Housing is unaffordable for the locals. (This creates political instability and can cause clashes with tourists.) New Airbnb restrictions. (If you’re a part-timer trying to rent out your place, this may be unavailable to you.) Chasing gains. (Buying high is rarely a good idea, especially when home prices are unaffordable and the tax incentives for ex-pats have dried up. Less demand puts downward pressure on prices.) Socialist country. (High taxes.) Political uncertainty, protests and tighter policy toward ex-pats and digital nomads. Bottom Line Every soul has her own geography. If Portugal is your place, and you’ve fallen in love with the land, the locals and the language, then navigating through the new tax, hosting and VISA laws could be worth it. If you’re looking to make a quick buck, you may be on the wrong side of that trade. Before making any real estate purchase, which can be illiquid and requires capital to maintain, it is very important to answer the 10-Point Checklist that is featured in the Real Estate section of The ABCs of Money, 5th edition. I’ll be discussing all of this in greater depth in my December 14, 2023 free videoconference. Email info@NataliePace.com with VIDEOCON in the subject line to join us live. (You’ll automatically receive the logon instructions if you’re already on the list.) Join us at our Jan. 13-15, 2024 New Year, New You Financial Freedom Retreat. Get valuable data and tools on how to best invest and monetize real estate. Learn nest egg strategies, how to get hot and diversified (including in EVs, crypto and AI), and what's safe in a Debt World. You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. Email info@NataliePace.com to register. Learn the 15+ things you'll master and read testimonials in the flyer (link below) and on the home page at NataliePace.com. Register with friends and family to receive the best price. "Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM Join us for our Restormel Royal Immersive Adventure Retreat. March 8-15, 2024. Email info@NataliePace.com to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. There is very limited availability, and you must register early to ensure that you get the exact room you want. This retreat includes an all-access pass to all of our online training for a full year for two! Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Substack on Apple and Spotify. Watch videoconferences and webinars on Youtube. Other Blogs of Interest Holiday Gift Giving on any Budget. Including No Budget. Once in a Century Events are Happening Every Day. The Crypto Winter Enters Its 3rd Year. Earn $50,000 or More in Interest. Safely. Finally. Freebies and Deals for Black Friday and Cyber Monday. Auto Strikes End. EV Price Wars Continue. WeWork's Bankruptcy. Half-Empty Office Buildings. Problems in our Personal Wealth Plan. Solutions for Unaffordable Housing. The Magnificent 7 Drag NASDAQ into Another Correction Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing Air B N Bust? Santa Rally 2023 or Time to Get Defensive? Barbie. Oppenheimer. Strikes. Streaming Wars. Netflix. Monero: A Token of Trust? 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) The USA AAA Credit Rating is on a Negative Watch. Lithium. Essential to EV Life. I'm Just Not Good at Investing. Investors Ask Natalie. Should I Buy an S&P500 Index Fund? Investors Ask Natalie. Bonds Lost More than Stocks in 2022. 2023 Company of the Year Do Cybersecurity Risks Create Investor Opportunities? Writers Strike, While Streaming CEOs Rake In Hundreds of Millions Annually. I Lost $100,000. Investors Ask Natalie. Artificial Intelligence Report. Micron Banned in China. Intel Slashes Dividend. Buffett Loses $23 Billion. Branson's Virgin Orbit Declares Bankruptcy. Insurance Company Risks. Schwab Loses $41 Billion in Cash Deposits. Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? The Online Global Earth Gratitude Celebration 7 Green Life Hacks Fossil Fuels Touch Every Part of Our Lives Are There Any Safe, Green Banks? 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. Which Countries Offer the Highest Yield for the Lowest Risk? Solar, EVs, Housing, HSAs -- the Highest-Yield in 2023? Why We Are Underweighting Banks and the Financial Industry. 2023 Bond Strategy Emotions are Not Your Friend in Investing Investor IQ Test Investor IQ Test Answers Bonds Lost -26%, Silver Held Strong. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. The Bank Bail-in Plan on Your Dime. Rebalancing Your Nest Egg IQ Test. Answers to the Rebalancing Your Nest Egg IQ Test. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. One-of-a-Kind Gift Giving on Any Budget. Including No Budget. By the NataliePace.com team. The holiday season is upon us, and we’re wishing you peace, joy, love and special moments with family and friends – all of the things that money can’t buy. These priceless gifts might actually be infused into our gift giving, if we get creative about showing our loved ones how much we appreciate them. Anyone can buy something from a store. However, have we sounded the depths of our heart to discover how our talents might create a personalized gift that will be treasured forever? Whether the sky is the limit on what we can spend, or we have to get creative without pulling out the wallet, below are unique gifts that can’t be purchased off the shelf. 1. Gift: Your Time. There is something that you do better than anyone else you know. So, why not give a free certificate to those you most love? Gift Certificates for massages, babysitting, cooking classes, interior design, landscape design, a very cheffy Meal, A Day Doing Whatever You Desire… All of these can be the spark that creates one of the most memorable moments in life. The best gifts in life aren’t things. They are experiences. During one lean Single Mom Year, I gave my son the gift of King for the Day, where we did everything that he wanted to do. Imagine the confidence and life lessons a child learns by being in charge for the day! You’ll notice that their face lights up the moment they leap from bed to seize this experience, and you might be delighted to see how the choices you feared (candy for breakfast) are not on the menu. 2. Couple’s or Family Adventure. A college graduate was given the gift of attending the March 2023 Restormel Royal Manor House Retreat. The trip was so much more than she expected that she hopes to attend the next one (and edited a video of some of the experiences, which you can watch in the retreat flyer). Our next Sustainability Adventure in a royal manor house in England is scheduled for March 2024. (Check out the video below for details.) This adventure includes a 12-month, all-access pass for two to our online retreats and master classes, and 3 coaching sessions -- plus a life-transformational Brain Trust experience, all for a much more affordable price than you might imagine. (Email info@NataliePace.com or call 310-430-2397 for pricing and information. Click on the retreat flyer to learn other essential information.) Would the best gift under the tree be walking in the footsteps of families that have kept their wealth over centuries, stepping into a more sustainable lifestyle, and experiencing forest bathing in ways that you’d never discover on your own? The Eden Project, beaches, a medieval village, delicious dining and more are all steps away! 3. Gift: Your Talents. Can you record a song, draw a caricature, design personalized notecards or create a calendar of family portraits? Are you great at woodworking or cabinetry? Uniquely crafted gifts require your time and heart/soul, which is more valuable than your dollars. You’ll want to find an angle that makes it special and personal for the person you’re giving it to. 4. Host a Party. One great holiday party can be a lot less expensive than individual gifts. And if throwing a party is too much time, money or trouble, host a potluck with a theme! A friend of mine hosts Potluck Yoga parties. He doesn’t have to cook, clean or even lead the yoga session. Since the yoga instructor is paid by donation, even that is covered by the guests. 5. Bad Santa (aka White Elephant). In the Bad Santa version of the White Elephant gift party, everyone is tasked to bring the worst gift they’ve ever received. Everything else is the same. The guests select a wrapped gift in order by number. If they see something that someone has already unwrapped that they want, they can “steal” it instead of opening a new gift. This party is a lot of fun. The gifts cost nothing. 6. Clap & Celebrate. Showing up is one of the greatest gifts that we give our friends and family. Whether it is scheduling a family get-together on Zoom, cheering from the sidelines of a soccer game, or taking the train to our home town, the best present might simply be our presence. 7. Share Secrets. Are you the envy of the neighborhood for your soups, cakes, handmade sweaters, cookies, or even bike repair? Why not host a cooking or crocheting class, or turn an old junker fixie bike into an artistic (and ridable) wonder? Should you write a booklet of gardening tips or recipes? These might become keepsakes for generations… 8. Buried Treasure. Lean years can be the push we need to uncover the treasures in that long, forgotten safe deposit box. Do you have a keepsake or collectible to offer to your children? The H.R.H. Prince of Wales (Prince William) gave H.R.H. The Princess of Wales (Princess Catherine) the engagement ring that belonged to his mother, Princess Diana. Imagine how much more cherished that ring is than anything Catherine might have received. 9. Family Memorabilia. Shutterfly, Printify and Snapfish make it affordable to turn favorite pictures into coffee mugs, photo albums, t-shirts and even wall art. Natalie Pace's Earth Gratitude project has sustainability merchandise that might be perfect for your green friends and family members. The Earth Gratitude backpacks, phone cases, coffee mugs, tote bags and t-shirts all send the message of living in greater harmony with our home planet. 10. Financial Freedom. Gifts that promote personal empowerment are always in style. Give yourself the tools we all need to save thousands annually in our budget, be the boss of our money, earn money while we sleep and protect our wealth. For many of us, learning how to protect and grow our net worth is worth millions – especially if we start young. Let 2024 be the true New Year, New You Year for living a rich life and a Thrive Budget, while protecting and growing our wealth. It’s okay to buy a gift for ourselves, too! Many attendees report earning back the price of the retreat in budget savings alone -- within just a few short months. So, the New Year New You Financial Freedom Retreat can indeed be the gift that keeps on giving... New Year, New You Online Financial Freedom Retreat A complete money makeover. Learn the life math that we all should have received in high school and college. Adopt a Thrive Budget (instead of the Buried Alive in Bills/Struggling to Survive Budget). This is the perfect way to start 2024 off with a bang! Email info@NataliePace.com to learn more and register. Check out the retreat flyer to learn the 15+ things you’ll learn and master, to read testimonials and to get pricing/hours information. Books Ebooks are very affordable and make a mindful, sustainable present. Click on the book covers below to download Natalie Pace’s bestsellers. The Power of 8 Billion: It’s Up to Us. The sustainable information and lifestyle that, once embraced, allows us to be the change our planet needs to heal. Includes inspiring stories of green projects from around the world. Put Your Money Where Your Heart Is (2nd edition). An original ESG investing book that includes analytical tools that helped to earn Natalie Pace the #1 stock picker ranking. The ABCs of Money, 5th edition. The life math we all need to learn for debt reduction, and investing in real estate, stocks, bonds, crypto, gold and more. The ABCs of Money for College. Get a better degree for half the price. Adopt the formula for success when your child is born! The Gratitude Game. 21 days to a healthier, wealthier, more beautiful you. Daily prosperity mantras and tasks that lead to lasting wealth. We recommend this one in the audio format. Private Coaching Email info@NataliePace.com to learn more about receiving private coaching from Natalie Pace, including an unbiased 2nd opinion of your current wealth plan. Make 2024 your year to step into prosperity, abundance, savings, debt reduction and money while you sleep. Testimonials "We asked Natalie Pace for a second opinion on our investment portfolio. She researched and reviewed each stock and fund. She then explained to us in plain English how we were positioned in the market and how high our risk exposure was. Her knowledge was so profound that we decided to take her retreat in Arizona. My husband was still quite skeptical, but 20 minutes into the retreat he turned to me and said "Thank you." Stocks and investing are no longer rocket science. We give thanks just about every day that we met Natalie. I feel like I live on a different planet. I'm so grateful. Thank you for changing our lives, our peace of mind, our future and our vision of what is possible. We made a tectonic shift with you." AC & AM Holiday Giving Charity is the best networking. This holiday season, consider making your donation go 3X as far by adding in your time and talent, and by focusing your giving on one project. All of the projects that Natalie Pace is involved in came about directly through her charitable giving. When you focus on one thing, and put your heart and soul into making a difference, there is greater power going in, greater results can be achieved and stronger bonds will forge with the people working alongside you. If you're interested in financial freedom or sustainability, consider becoming a part of the Natalie Pace Volunteer Brain Trust, or becoming a patron to the Earth Gratitude project. Email info@NataliePace.com or call 310-430-2397 to learn more! You can also donate directly to EarthGratitude.org on our website. Check out the 5-part free docu series on EarthGratitude.org, featuring inspiring sustainability projects from around the world! Contributors include H.H. The Dalai Lama, H.M. King Charles III (when he was The Prince of Wales), Sia, Ed Begley Jr., Elon Musk, XPRIZE, Wangari Maathai, Arianna Huffington, The Duchess of Northumberland, Deepak Chopra, EARTHDAY.ORG, Ron Finley, the NRDC, Global Green, Lynne Twist, Green Our Planet, Life is Good, Master Sha, Leon Krier, Kiss the Ground, Nathalie Kelley, 4p1000.org, Alice Waters, The Edible Schoolyard Project, H.M. Queen Diambi, The Pachamama Alliance, WildlifeDirect and more. Bottom Line There is always something to give, and often the gift that isn’t “store bought” is the one that will be the most treasured. Rather than shop in a store, why not meditate on what your loved one might really appreciate. Factor in that time and talent can be more valuable than money. Adventures and experiences pay dividends in our memories for life! Join us for our Restormel Royal Immersive Adventure Retreat. March 8-15, 2024. Email info@NataliePace.com to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. There is very limited availability, and you must register early to ensure that you get the exact room you want. This retreat includes an all-access pass to all of our online training for a full year for two! Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Substack on Apple and Spotify. Watch videoconferences and webinars on Youtube. Other Blogs of Interest Once in a Century Events are Happening Every Day. The Crypto Winter Enters Its 3rd Year. Earn $50,000 or More in Interest. Safely. Finally. Freebies and Deals for Black Friday and Cyber Monday. Auto Strikes End. EV Price Wars Continue. WeWork's Bankruptcy. Half-Empty Office Buildings. Problems in our Personal Wealth Plan. Solutions for Unaffordable Housing. The Magnificent 7 Drag NASDAQ into Another Correction Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing Air B N Bust? Santa Rally 2023 or Time to Get Defensive? Barbie. Oppenheimer. Strikes. Streaming Wars. Netflix. Monero: A Token of Trust? 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) The USA AAA Credit Rating is on a Negative Watch. Lithium. Essential to EV Life. I'm Just Not Good at Investing. Investors Ask Natalie. Should I Buy an S&P500 Index Fund? Investors Ask Natalie. Bonds Lost More than Stocks in 2022. 2023 Company of the Year Do Cybersecurity Risks Create Investor Opportunities? Writers Strike, While Streaming CEOs Rake In Hundreds of Millions Annually. I Lost $100,000. Investors Ask Natalie. Artificial Intelligence Report. Micron Banned in China. Intel Slashes Dividend. Buffett Loses $23 Billion. Branson's Virgin Orbit Declares Bankruptcy. Insurance Company Risks. Schwab Loses $41 Billion in Cash Deposits. Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? The Online Global Earth Gratitude Celebration 7 Green Life Hacks Fossil Fuels Touch Every Part of Our Lives Are There Any Safe, Green Banks? 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. Which Countries Offer the Highest Yield for the Lowest Risk? Solar, EVs, Housing, HSAs -- the Highest-Yield in 2023? Why We Are Underweighting Banks and the Financial Industry. 2023 Bond Strategy Emotions are Not Your Friend in Investing Investor IQ Test Investor IQ Test Answers Bonds Lost -26%, Silver Held Strong. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. The Bank Bail-in Plan on Your Dime. Rebalancing Your Nest Egg IQ Test. Answers to the Rebalancing Your Nest Egg IQ Test. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. The global COVID-19 pandemic of 2020 was unprecedented. It brought many cities to a standstill. People were quarantining in place, and were limited as to when and how they could leave their dwelling -- sometimes by law, but also by fear. Hubbubs of tourism, like Times Square on New Year's Eve, were empty and quiet. Photo by Natalie Wynne Pace. Taken on my Apple iPhone on 12.31.2020. “Once in a Century” Events are Happening Every Day. Over the past few years, we have seen numerous “once in a century” events. The pandemic. The longest secular bull market in history. The shortest about-turn from bull to bear in history (Feb. 19, 2020). The shortest recession in history (the 2020 pandemic). The U.S. credit was downgraded by Fitch Ratings (to AA+) on August 1, 2023. The Federal Reserve Board hiked interest rates to 5¼ to 5½ percent for the quickest tightening cycle seen since Federal Reserve Board Chairman Paul Volcker in 1979. (The Fed Fund rate was zero in March 2022.) The Great Recession’s (2008) very name harkens back to the Great Depression (1929). 4 banks failed again this year. During the Dot Com Recession (2000-2002), NASDAQ stocks lost 78% of their value and took 15 years to recover. The only two times that stocks have been more expensive than they are today (according to Robert Shiller’s CAPE Ratio) were in the Dot Com Recession (2000-2002) and the Great Depression (1929-1939). Here’s what 2022 looked like from an investing perspective. Investing in such circumstances can feel like surfing in a hurricane. If you’ve wiped out and been washed up on shore, maybe it’s time to switch metaphors (and plans). A good wealth plan doesn’t have you getting battered and swamped by 30-foot waves. It also doesn’t have you losing principal on the safe side… The principal losses of long-term bonds are at the heart of the bank failures, and are often put on the “safe” side of our own managed portfolio. Win the Game, Even if You Strike Out We can strike out on some investments, and still win the game. Were our “losses” a small or large piece of our nest egg? Did we perform on par with, below or better than the S&P500 over the past 5, 10 and 15 years? If it’s game over, then we put too much at risk. There is an easy plan that protects us from the volatility on Wall Street, and the bond risk that caused the banks to fail, while allowing us to hit homeruns in the bull markets. With this plan, we don’t focus on “winning” or “losing” with every at-bat investment. Instead think of it like having strong players in their key positions. Some are defensive to keep our nest egg intact. Others are all-stars that increase our performance. When a homerun hitter strikes out, rather than shrug our shoulders and think we lost, a more successful strategy is to ask, “Is the cold streak temporary? Do we need a pinch hitter? Is the setback still part of a great batting average?” Folding our investments into the big picture helps us to harness our emotions and make sound decisions. Below are a few things we discuss in this blog. What Strategy Wins the Game? Volatility Bonds Lost More than Stocks Last Year 5% Yield on the Safe Side The Hottest Stocks of 2020 and 2021 Were the Worst of 2022 Portfolio Performance Gold. Silver. Crypto. Safe Havens? China and our Hot Slices Small Caps Value Irrational Markets Wait and See? And here is more information on each point. What Strategy Wins the Game? During Crypto Winters, sadly, we often hear about devastated investors getting wiped out, depressed or even contemplating suicide. If crypto were just one or two hot slices of a diversified wealth plan, there is no ruination during the downturns. In fact, if we are rebalancing our diversified plan regularly, 1-3 times a year, we are being prompted to sell high and buy low, which improves the performance. Crypto is volatile. Betting the farm on any one thing, especially when an asset makes headlines, is akin to putting your pitcher in as the cleanup batter. It’s just a bad idea. Regular rebalancing of a diversified plan is a time-proven 21st Century strategy that earned gains in the Dot Com and the Great Recessions, when most investors lost half or more of their wealth. "Many people, including educated men and women, often get into trouble when they neglect to follow simple and fundamental rules of the type provided [by Natalie]. This is why I recommend them with enthusiasm." Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human Volatility 2021 was a banner year on Wall Street, with the S&P500 up 26.9%! 2022 gave up a lot of the gains with losses of -19.33%. 2023 has once again recovered most of last year’s losses, with a rise of 18.4% year to date. That’s about 8.7% annualized gain over the 3-year period (not bad at all). This might lead you to believe that Buy & Hope is a good strategy. However, Modern Portfolio Theory diversification (which is easy as a pie chart and less time, and money than those 18-page managed plans) with regular rebalancing (1-3 times a year) prompts us to capture gains in the rallies and buy low in the routs. This increases our wealth, rather than just riding the Wall Street rollercoaster. When we are properly protected, we limit our losses in downturns. (Nilo Bolden actually earned gains in the Great Recession, while those around her lost half or more of their wealth.) Devastating losses are a regular feature of 21st Century recessions (sadly). Using years of a bull market to crawl back to even isn’t a great plan – particularly as we get closer to retirement. Bonds Lost More Than Stocks Last Year We’ve been warning that we weren’t getting paid to take on the risk of bonds for over a decade. Prior to 2022, you’d have to go into junk bond status to get above 4%, and most savings accounts offered pennies on thousands. From 2009 until about 2015, we were suggesting that real estate was safer than bonds, and could produce as much or more income. Many investors who heeded that guidance doubled their money. The safe side of our portfolio is where we are supposed to earn interest without losing our principal. However, if bonds are losing more than stocks, that defensive strategy is quite flawed right now. (Even the pros at the banks are having issues with this, as seen with the bank failures and the paper losses.) 5% Yield on the Safe Side If we have $1 million on the safe side, we could earn $50,000 pretty safely. However, it’s tricky. There remains duration risk and credit risk. Over half of the S&P 500 is at or near junk bond status. Elevated debt is one of the reasons Fitch Ratings just downgraded the USA sovereign credit to AA+. Click to access my free blog and videoconference on this topic. Good rules of thumb are to keep the terms short and the creditworthiness high. It’s important to know what we own and be the boss of our money. Sometimes what we’re being told isn’t even true, something we can clearly see if we take the time (and know how) to read the fine print. As just one example (there are many), one of my clients had been told that he was earning 5-7% yield on his portfolio, and that his safe investments protected him from all of the losses in stocks. The statement itself revealed that this was not the truth at all. Due to the losses in the value of the bonds, the return was 1.7% year to date (not 5-7%), compared to 13.9% ROI in stocks. Click to learn more in my Bonds blog. The Hottest Stocks of 2020 and 2021 Were the Worst of 2022 Meme stocks were all the rage during the pandemic. And as you can see in the chart at the top of this blog, many of them suffered the greatest losses in 2022. Tesla, Ark’s Innovation Fund, Bitcoin and more all crash landed last year, underperforming the S&P500®. Bed, Bath and Beyond went belly-up. The last three years have seen a pandemic, supply chain disruptions, hostility toward China, gold/silver doldrums, lockdowns, wild rides of commodity prices and much more. Many states legalized cannabis only to find that customers still prefer anonymity and the Black Market. These are very abnormal times... which is why diversification is key. With the pie chart system, the majority of our money would be safe, and the hot slices would be a small piece of the overall total. We want our hots to outperform, that is the area where we are taking on higher risk for potentially higher gain. Higher risk also increases the chance of losing. So, we must be sure to keep the full game in mind, rather than be obsessed with one or two no-run innings. Portfolio Performance A good defensive strategy is to always keep a percent equal to our age safe. We’re also overweighting an additional 20% safe right now because of the economic storms on the horizon. Stocks and funds tend to be more volatile, but perform better. The “safe” side is a way to preserve liquidity, while earning some interest. If we have one particular stock we invested in that didn’t do very well, such as buying Tesla at a top price of $407/share, that’s still a very small piece of our portfolio in this strategy. If we are earning a 5% interest rate on the biggest part of our portfolio, which is also protecting us from the volatility of the stock side, then we might have net positive performance, even though 2022 was a pretty ugly year for most people. For example, if we are 60, overweighting 20% safe, and our 20% at risk drops by -19.33%, that net -3.9% drop is made up by our 80% safe net earnings of 4%. As we get older keeping our wealth safe becomes vital. Gold. Silver. Crypto. Safe Havens? “Safe Haven” investments have been in the doldrums. Gold and silver have been some of the worst performers of the last decade, but helped tremendously last year when stocks, bonds and crypto tumbled. The Crypto Winter is entering its third year. A lot of that has to do with the resilience of the stock market. Even with last year’s pull back, stocks are still up 12.2% percent annualized over the 15-year period. We’ve been in a secular bull market since March of 2009. Never confuse a bull market with wisdom! Recessions are a part of the business cycle, and in the 21st Century recessions can be very expensive for Main Street investors who are overexposed. China and our Hot Slices American investors made lot of money on their Chinese investments for most of the 21st Century. However, since 2018, tensions with China have escalated. Chinese stocks have tanked in the U.S. Our hot slices should be re-evaluated annually. If we had something that is no longer in favor, then perhaps we’d rather lean into artificial intelligence, cyber security, silver, breakthrough technology, clean energy or biotech companies next year. Some of these funds are trading near their 10-year low, while others are trading very close to all-time highs. So before purchasing, it’s important to do a price analysis to determine whether or not we’re buying low, or should take a slow, dollar cost averaging approach to filling up the slice. The performance of the iShares Clean Energy fund (ICLN) illustrates why rebalancing regularly is important. Between the bottom of the pandemic and January 2021, ICLN more than tripled. The fund is now trading near its 52-week low. Small Caps Small cats have had a rough go of it over the past few years. Typically, small caps outperform large caps. When slices get smaller, they are prompting us to buy low. We protect ourselves from volatility and weakness by overweighting safe, rather than putting the kibosh on diversification. Value Due to the overconcentration of low credit quality in the US at this time, combined with elevated stock prices, we’re looking outside of the United States for our value replacement funds. Value means on sale. As you can see in the CAPE Ratio chart at the top of this blog, U.S. equities are definitely not on sale. Elevated equities are correlated with oversized price plunges. NASDAQ Composite Index stocks dropped -78% and took 15 years to come back to even after the highs of March 2000. You know what happened in the Great Depression. We discuss opportune countries at our Financial Freedom Retreat. There is one country in particular that has a higher credit rating than the U.S., and pays double the yield. Irrational Markets 2020 and 2021 were strong years on Wall Street, despite lockdowns and the pandemic. 2022 was a terrible performer, even though the economy didn’t experience a recession (according to the Feds and NBER). Commercial real estate is trying to maintain its property valuations, even though many office buildings and malls are half empty. AirBNB hosts are hoping to weather more supply, competition and vacancies without lowering their prices. Many of these hopes and dreams are at odds with fundamental economic rules (such as supply and demand) and business cycles. 4 banks failed this year. Things have stabilized, and the Feds assure us that the banking system is “sound and resilient.” However, in the minutes of the Nov. 1, 2023 FOMC meeting, we learned that FOMC participants had more concerns than are reflected in the assurances being offered. Many participants commented that unrealized losses on assets resulting from the rise in longer-term interest rates, significant reliance by some banks on uninsured deposits, and increased funding costs at banks warranted monitoring. Many participants also commented on risks associated with a potential sharp decline in CRE valuations, which could adversely affect some banks and other financial institutions. Market timing doesn’t work. Diversification with regular rebalancing allows us to see and capture gains – growing our nest egg, and protecting us from losses. Due to the heightened uncertainty in today’s economy, we are overweighting 20% additional safe in our sample pie charts. Keeping enough safe gives us the liquidity needed to buy low when markets tumble. Most people don’t buy low because they can’t. They’ve lost too much, and now must hope and pray to crawl back to even. Wait and See? When we wait for the headlines, it’s too late to protect our wealth. As you can see in the charts below, most people lose almost half of their equities before the recession is official. It’s important to fix the roof while the sun is still shining. It took NASDAQ stocks 15 years to recover after the Dot Com Recession. It took the Dow Jones Industrial Average almost 7 years to come back after the Great Recession. Bottom Line My mission is to provide the news, information, time-proven systems and education to make it easier to navigate through all the noise, hullabaloo and traps. Rather than expecting perfection, it’s a better idea to understand that striking out at a few at-bats is part of investing. The key is to have strong players in the position where they perform best, along with a defensive strategy to prevent Wall Street whales from eating our lunch. Losing a lot on one investment, whether it is cannabis, crypto or China, is more like losing an inning than the game, when our plan is properly set up. We are the boss of our money and life, whether we take ownership or not. Most of us have far more wealth in our retirement accounts than we can earn in years of working. We need to know how all of the players in our wealth plan are performing, including the head coach (our fiduciary financial broker/salesman), if we have a managed plan. Now is the time to learn the life math that we all should’ve received in high school and college, so that we are confident our game plan is safe, protected, hot, and diversified, and that we can win on Wall Street. You can learn this easy system by attending our New Year New You January 13-15, 2024 online Financial Freedom Retreat, or by getting an unbiased second opinion from me personally, through our private coaching program. Wisdom is the cure, and the time is now. Email info@NataliePace.com or call 310-430-2397 now to learn more and register. Join us at our Jan. 13-15, 2024 New Year, New You Financial Freedom Retreat. Learn nest egg strategies, how to get hot and diversified (including in EVs, crypto and AI), and what's safe in a Debt World. You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. Email info@NataliePace.com to register. Learn the 15+ things you'll master and read testimonials in the flyer (link below) and on the home page at NataliePace.com. Register with friends and family to receive the best price. "Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM Join us for our Restormel Royal Immersive Adventure Retreat. March 8-15, 2024. Email info@NataliePace.com to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. There is very limited availability, and you must register early to ensure that you get the exact room you want. This retreat includes an all-access pass to all of our online training for a full year for two! Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Substack on Apple and Spotify. Watch videoconferences and webinars on Youtube. Other Blogs of Interest The Crypto Winter Enters Its 3rd Year. Earn $50,000 or More in Interest. Safely. Finally. Freebies and Deals for Black Friday and Cyber Monday. Auto Strikes End. EV Price Wars Continue. WeWork's Bankruptcy. Half-Empty Office Buildings. Problems in our Personal Wealth Plan. Solutions for Unaffordable Housing. The Magnificent 7 Drag NASDAQ into Another Correction Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing Air B N Bust? Santa Rally 2023 or Time to Get Defensive? Barbie. Oppenheimer. Strikes. Streaming Wars. Netflix. Monero: A Token of Trust? 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) The USA AAA Credit Rating is on a Negative Watch. Lithium. Essential to EV Life. I'm Just Not Good at Investing. Investors Ask Natalie. Should I Buy an S&P500 Index Fund? Investors Ask Natalie. Bonds Lost More than Stocks in 2022. 2023 Company of the Year Do Cybersecurity Risks Create Investor Opportunities? Writers Strike, While Streaming CEOs Rake In Hundreds of Millions Annually. I Lost $100,000. Investors Ask Natalie. Artificial Intelligence Report. Micron Banned in China. Intel Slashes Dividend. Buffett Loses $23 Billion. Branson's Virgin Orbit Declares Bankruptcy. Insurance Company Risks. Schwab Loses $41 Billion in Cash Deposits. Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? The Online Global Earth Gratitude Celebration 7 Green Life Hacks Fossil Fuels Touch Every Part of Our Lives Are There Any Safe, Green Banks? 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. Which Countries Offer the Highest Yield for the Lowest Risk? Solar, EVs, Housing, HSAs -- the Highest-Yield in 2023? Why We Are Underweighting Banks and the Financial Industry. 2023 Bond Strategy Emotions are Not Your Friend in Investing Investor IQ Test Investor IQ Test Answers Bonds Lost -26%, Silver Held Strong. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. The Bank Bail-in Plan on Your Dime. Rebalancing Your Nest Egg IQ Test. Answers to the Rebalancing Your Nest Egg IQ Test. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Crypto Winter Enters Its 3rd Year. A lot has happened since Bitcoin hit a high of $69,000 on Nov. 9, 2021.
What have we learned from this? Don’t Go All In Rebalance Is Crypto Really a Safe Haven? Is Your Cash Really FDIC-Insured in a Brokerage Account? Will CZ Go to Jail? Bitcoin ETFs And here’s more information on each point. Don’t Go All In We should never go all-in on any one asset. Diversification is key, no matter how good the story is. At our retreats and in my books, I encourage investors to think of cryptocurrency as a hot slice or two of their overall wealth strategy. Below is a sample pie chart based upon a 30-year-old. You can personalize your own pie chart using our free Web App. Email info@NataliePace.com for a link to it. Rebalance The pie chart system with regular rebalancing prompts us to capture gains at the high, and buy low in the crypto winter (if you still believe in it). Although HODL was popular when crypto was high, few were adhering to it. The average holding time of Bitcoin, Ethereum and Cardano in 2021 was under 90 days. Even today, when investors are frozen from the long period on crypto ice, Bitcoin’s average hold time is just 101 days. Is Crypto Really a Safe Haven? It’s essential to know what’s safe in a world where crypto values are still down by almost half, 4 U.S. banks failed and bonds lost more than stocks. Safe assets are supposed to protect our principal investment. Currencies are not supposed to be worth $69,000 one year and just $37,000 the next. Imagine if the dollar or euro did that! (We spend one full day on What’s Safe at our New Year, New You Financial Freedom Retreat.) Is Your Cash Really FDIC-Insured in a Brokerage Account? As we learned with the failures of Blockfi, Voyager Digital and FTX, FDIC insurance covers failed banks, not brokerages. So, even if the brokerage has a cash sweep program with an FDIC-insured member bank, if the brokerage fails, the cash is not FDIC-insured. Below are blogs with in-depth reviews of getting your cash as safe as possible. Is Your FDIC-Insured Cash Really Safe? https://www.nataliepace.com/blog/is-your-fdic-insured-cash-really-safe-better-double-check#/ Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. https://www.nataliepace.com/blog/bonds-banks-the-treacherous-landscape-of-keeping-our-money-safe#/ Monero. Crypto. Cash. BRICS. Videoconference. https://youtu.be/c0Ib__YTaBU Blog https://www.nataliepace.com/blog/monero-a-token-of-trust#/ Will CZ Go to Jail? According to a court filing, Changpeng Zhao’s sentencing is scheduled for Feb. 23, 2024. Speculation has it that he’ll serve under 18 months. The U.S. Department of Justice noted in its filing today that they could argue for up to 10 years. DOJ officials consider CZ to be a flight risk, particularly since the UAE doesn’t extradite to the U.S. No doubt, there will be high drama in this case over the next few months. In the meantime, CZ resigned as CEO of Binance on Nov. 21, 2023. There are other terms to his agreement. Binance will pay over $4.3 billion in fines. Bitcoin ETFs Financial services companies have had a rough year. Many have low credit scores. So, it’s important to purchase your funds from a company that has a strong credit rating, has been around for a long time and is well capitalized. These are just a few of the reasons why we don’t want to purchase our funds from companies that just started up recently, or others that might be trying to hop onto a hot fad. Before you purchase a Bitcoin ETF, know the company that is offering it. If we’ve never heard of the company before, we’ve got a thousand-piece puzzle to complete on that enterprise before we should buy their pitch. If we can’t find the company’s credit rating, it might be best to just say, “No.” Bottom Line Cryptocurrency is not a stable currency yet (unless you’re laundering money, working in the Black Market, or trying to get around sanctions, and care more about the transaction than the stability of the value). Cryptocurrency is still mostly a trading platform. There is still a lot of fraud in this space, from FTX in 2022 to the Trade Coin Club ruse launched by Joff Paradise that we warned our readers of on June 25, 2017. You might be lured in by a celebrity (like FTX had), a cool name (like Monero), FUD of the U.S. dollar (like original Bitcoin buyers were), or a billionaire (like CZ). However, if you’re not willing to trade the coin (buying low and selling high, like the whales are doing), then you could end up HODLing a lot of losses – for years. Join us at our Jan. 13-15, 2024 New Year, New You Financial Freedom Retreat. Learn nest egg strategies, how to get hot and diversified (including in EVs, crypto and AI), and what's safe in a Debt World. You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. Email info@NataliePace.com to register. Learn the 15+ things you'll master and read testimonials in the flyer (link below) and on the home page at NataliePace.com. Register by Nov. 30, 2023 to receive the best price. Many people, including educated men and women, often get into trouble when they neglect to follow simple and fundamental rules of the type provided [by Natalie]. This is why I recommend them with enthusiasm." Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human capital Join us for our Restormel Royal Immersive Adventure Retreat. March 8-15, 2024. Email info@NataliePace.com to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. There is very limited availability, and you must register early to ensure that you get the exact room you want. This retreat includes an all-access pass to all of our online training for a full year for two! Natalie Wynne Pace is an Advocate for SustainabilityFinancial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Substack on Apple and Spotify. Watch videoconferences and webinars on Youtube. Other Blogs of Interest Earn $50,000 or More in Interest. Safely. Finally. Freebies and Deals for Black Friday and Cyber Monday. Auto Strikes End. EV Price Wars Continue. WeWork's Bankruptcy. Half-Empty Office Buildings. Problems in our Personal Wealth Plan. Solutions for Unaffordable Housing. The Magnificent 7 Drag NASDAQ into Another Correction Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing Air B N Bust? Santa Rally 2023 or Time to Get Defensive? Barbie. Oppenheimer. Strikes. Streaming Wars. Netflix. Monero: A Token of Trust? 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) The USA AAA Credit Rating is on a Negative Watch. Lithium. Essential to EV Life. I'm Just Not Good at Investing. Investors Ask Natalie. Should I Buy an S&P500 Index Fund? Investors Ask Natalie. Bonds Lost More than Stocks in 2022. 2023 Company of the Year Do Cybersecurity Risks Create Investor Opportunities? Writers Strike, While Streaming CEOs Rake In Hundreds of Millions Annually. I Lost $100,000. Investors Ask Natalie. Artificial Intelligence Report. Micron Banned in China. Intel Slashes Dividend. Buffett Loses $23 Billion. Branson's Virgin Orbit Declares Bankruptcy. Insurance Company Risks. Schwab Loses $41 Billion in Cash Deposits. Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? The Online Global Earth Gratitude Celebration 7 Green Life Hacks Fossil Fuels Touch Every Part of Our Lives Are There Any Safe, Green Banks? 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. Which Countries Offer the Highest Yield for the Lowest Risk? Solar, EVs, Housing, HSAs -- the Highest-Yield in 2023? Why We Are Underweighting Banks and the Financial Industry. 2023 Bond Strategy Emotions are Not Your Friend in Investing Investor IQ Test Investor IQ Test Answers Bonds Lost -26%, Silver Held Strong. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. The Bank Bail-in Plan on Your Dime. Rebalancing Your Nest Egg IQ Test. Answers to the Rebalancing Your Nest Egg IQ Test. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. You Could Be Earning up to $50,000 (or more) in Interest (Finally) Is that enough to retire? One-year treasury bills are paying 5.25% these days. If you have $1 million on the safe side, you could be earning $50,000 in interest annually. The US is still an AA+ rated country, so the risk is pretty low on short-term treasuries. The one-year note is actually paying a higher interest rate, then two years or beyond. So keeping the terms short, and the creditworthiness high is not only a sound policy, it’s also giving us a higher yield. Bonds are tricky these days, so there are a few things to get right in order to earn this income (which is long overdue). Also, if you’re close to retirement, is it going to fill-in the gap between your earned income and what your Social Security and/or pension is going to pay you? Will 5% interest rates still be around next year? Below are a few things we will go over in this blog. Can you earn enough interest to retire? 5% of $1 Million Social Security Benefits Medical Costs Align your mortgage payoff date with your retirement date Reducing Expenses Increasing Income Will interest rates go higher or lower? Keep the terms short and the creditworthiness high Bond Funds And here’s more information on each point below. Can you earn enough interest to retire? A recent retiree was accustomed to earning $150,000 a year. Her Social Security was going to provide her with less than $45,000. She had no pension. The company she worked for was giving her a lump sum of about $250,000. All told, if her expenses and spending stay where they are, she could easily burn through that in 2 1/2 years. Add in the additional $600,000 she has in her other retirement accounts, and she wouldn’t last a decade. It’s a good idea to do the math before we retire, especially in today’s inflationary world! With 5% interest rates, we can finally earn some passive income without too much risk of capital loss. And there may be other ways to reduce expenses and increase income – both of which will be necessary. 5% of $1 Million The retiree mentioned above had closer to $800,000 which would bring her $40,000 annually, if she was earning a 5% interest rate. That’s still about $65,000 shy of what she was accustomed to earning, but it is at least moving in the right direction. Her bills, excluding Medicare, prescriptions and doctor visits, remain above $70,000 a year. That’s still flying too close to the trees for an $85,000 annual income. It doesn’t leave any room for fun or travel. If she has a major plumbing, roof or landscaping repair, or a health crisis, she might be forced to rely on credit cards to get her through. One word of warning. I have coaching clients who have been told that they are earning 5-7% on their “conservative” investments. Since bonds lost more than stocks did last year, those claims might not be truthful. The real return (under 2%, or perhaps even bond losses, once the losses are factored in) is written in the fine print of the statement. Long-term bonds that are low credit quality are the most problematic. (Click to learn more.) Another client was sold into a “safe,” high-yield, private placement REITs (oxymorons & red flags galore!). Read their story in their own words in our blog, “They Trusted Him. Now He Doesn’t Return Phone Calls.” Rather than earning almost 10% yield, they lost -18% of their investment. Again, bonds are tricky (but worth it!), which is why we spend one full day on how to get a safe yield at our Financial Freedom Retreat. Social Security Benefits The interesting thing about Social Security benefits is that there are ways to get more than you think you might, and waiting for the larger amount when you hit 72 doesn’t always add up. if your spouse (or ex-spouse) earned a lot more income than you did, and you were married for longer than 10 years, and you never married again, you might qualify to get up to half of what your spouse or ex is receiving. When considering exactly when you should start taking your Social Security, you also want to factor in the money you’ll miss by waiting until you get the full benefit amount. There are a few things in the fine print that you’ll really want to go through forensically when deciding when the time is right to start drawing on your Social Security benefits. Medical Costs Medical costs are the biggest expenses as we get older, and are the leading cause of bankruptcies in the U.S. (66.5%, source: NIH). Healthcare in the United States makes up 18% of GDP ($3.8 trillion in 2019). Many people are paying a good portion of the small amount of Social Security they receive back to the government for their Medicare premiums. This is one of the reasons that we encourage younger people who are healthy to consider setting up a health savings account for themselves. Health savings accounts offer tax credits, save thousands annually on health premiums, and are also the best long-term healthcare plan in retirement. It’s a great idea to have your own healthcare nest egg for your retirement, which also rewards you throughout your professional life with thousands annually that you don’t spend making the health insurance company and the taxman rich. If you’re close to retirement, and you didn’t establish a health savings account, then it becomes even more imperative that you adjust your expenses to your new income as quickly as possible (downsize). Burning through your 401k and IRAs to stay in a lifestyle that you can no longer afford is a perilous position to put yourself in. Also, remember that health is the best health insurance. Eat right, exercise and have fun to stay strong and spend less money on the doctor. Align your mortgage payoff date with your retirement date Almost everyone earns a lot less in retirement than they did in the workplace. So, before we retire, it’s a really good idea to try to get rid of as many bills as possible. One of the biggest bills is our mortgage payment. So for most of us, it’s going to make a lot of sense to pay off our mortgage before we retire. (if you purchased your home recently or still owe a lot of money on your home loan, then your circumstance might require additional considerations.) Reducing Expenses Reducing our expenses will make retirement bucks go further. Free housing for a home that you own free and clear (with only property taxes, maintenance and upkeep to pay) can save tens of thousands of dollars annually. If we have that HSA, then our medical insurance premiums will be much lower. If we live in a sunny state and have solar, our electric bill could be under $500 a year. Energy efficiency upgrades could cut our electric bill in half. Rethinking transportation could save us $8000 or more annually. We spend one full day on safe, income-producing hard assets that we can purchase for a good price. Many of them pay us a better return on investment than any bond could hope to do (15% annualized or higher). One coaching client is saving about $7,200/year on her utility bill from her $26,700 investment in solar. She’s receiving $8000 in tax credits and will pay off the panels in under three years. Thereafter, she is essentially receiving 38.5% ROI on her solar investment every year, in money that she no longer pays the utility (that she can now spend or invest on things she likes more). Additionally, sometimes the best way to downsize is to think bigger and factor in our family. The goal is always to keep the money in the family, and stop making everyone else rich at our own expense. Increasing Income We’ve talked about how getting a 5% interest-rate on the safe side of our portfolio through a carefully designed plan of short-term, creditworthy bonds or treasury bills can augment our income. Putting a spare bedroom or ADU* on Traveling Nurses or Airbnb could be worth thousands annually (though you’ll have extra work to keep your space desirable and booked). *Auxiliary Dwelling Unit One retiree had a novel approach. She rented out her big house, and then downsized to an efficiency condo. The income from the rental combined with her pension and her 401(k) offered her almost the same annual income that she earned as a professional. With the same income and a dramatically reduced cost of living, she now spends about six months out of the year traveling to her bucket list vacation destinations. Should your kids spend tens of thousands of dollars on rent? Or could that money go toward remodeling and upgrading (or paying off) the family home? There are many case studies examined in the Real Estate section of The ABCs of Money, 5th edition. Will interest rates go higher or lower? Prior to the rate hikes last year, interest rates spent over a decade in the doldrums. You would have to swim in the risk of junk bonds to get a 5% interest rate. And there you risk drowning in losses of your principal, which defeats the purpose of having a safe side of your wealth plan. Forecasters are predicting that interest rates could go lower as soon as next year. That may make it tempting to reach for yield, or take on longer terms. However, this must be done very strategically. Over half of the S&P500 is at or near junk bond status. Banks were failing earlier this year, and not all of the financial services industries are out of the woods. Some sectors, like commercial real estate are already facing dire straits. Read my 'WeWork Files for Bankruptcy' blog for more information. Keep the terms short and the creditworthiness high Getting 5% is very tricky. The newer issuances with shorter terms are paying a higher interest rate with more credit quality and less risk. So a good rule of thumb is to keep the terms short and the creditworthiness high. We’re still not getting paid to reach for yield, when you consider that long-term bonds lost 26% of their value last year and pay a lower interest rate than short-term. We need to be mindful about yield, as we’ve been alerting our retreat attendees and readers for more than a decade now. Yield is back, but it is very tricky. There is still a great deal of duration and credit risk. That won’t abate without some pain and potentially more bankruptcies. There remains a danger of negative yields (from valuation losses and fees), losses in principal and illiquidity (no one would want to take it off your hands without a large discount). Many investors try to salve the wounds of their bond losses by saying they’ll just hold to term. However, we’re seeing terms that are well beyond lifespans. One 70-year-old coaching client had a junk bond that wouldn’t pay him back until 2074. Bond losses were at the heart of the bank failures in 2023. The professionals are having problems! Many of us hold these same troublesome assets in our own nest egg (whether we know it or not). This makes it essential to know exactly what we own and why and to be the boss of our money, rather than having blind faith that someone else is protecting us. Bottom Line There are certain years when protecting our wealth becomes our most important job. Most of us have more in our retirement accounts than we can earn in many years of working. Others need to do the math before we retire or allow ourselves to be furloughed. This is going to require learning the life math that we all should have received in high school and college. Whether you get this information by attending our New Year, New You Financial Freedom Retreat, or by receiving an unbiased 2nd opinion through our private coaching, now is the right time to start the process. When we wait for the headlines that the economy is in troubled times, most people have already lost -40% or more of their wealth. It’s time to fix the roof while the sun is still shining. Join us at our Jan. 13-15, 2024 New Year, New You Financial Freedom Retreat. Learn nest egg strategies, how to get hot and diversified (including in EVs and AI), and what's safe in a Debt World. You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. Email info@NataliePace.com to register. Learn the 15+ things you'll master and read testimonials in the flyer (link below) and on the home page at NataliePace.com. Register by Nov. 30, 2023 to receive the best price. Many people, including educated men and women, often get into trouble when they neglect to follow simple and fundamental rules of the type provided [by Natalie]. This is why I recommend them with enthusiasm." Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human capital Join us for our Restormel Royal Immersive Adventure Retreat. March 8-15, 2024. Email info@NataliePace.com to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. There is very limited availability, and you must register early to ensure that you get the exact room you want. This retreat includes an all-access pass to all of our online training for a full year for two! Natalie Wynne Pace is an Advocate for SustainabilityFinancial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Substack on Apple and Spotify. Watch videoconferences and webinars on Youtube. Other Blogs of Interest Freebies and Deals for Black Friday and Cyber Monday. Auto Strikes End. EV Price Wars Continue. WeWork's Bankruptcy. Half-Empty Office Buildings. Problems in our Personal Wealth Plan. Solutions for Unaffordable Housing. The Magnificent 7 Drag NASDAQ into Another Correction Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing Air B N Bust? Santa Rally 2023 or Time to Get Defensive? Barbie. Oppenheimer. Strikes. Streaming Wars. Netflix. Monero: A Token of Trust? 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) The USA AAA Credit Rating is on a Negative Watch. Lithium. Essential to EV Life. I'm Just Not Good at Investing. Investors Ask Natalie. Should I Buy an S&P500 Index Fund? Investors Ask Natalie. Bonds Lost More than Stocks in 2022. 2023 Company of the Year Do Cybersecurity Risks Create Investor Opportunities? Writers Strike, While Streaming CEOs Rake In Hundreds of Millions Annually. I Lost $100,000. Investors Ask Natalie. Artificial Intelligence Report. Micron Banned in China. Intel Slashes Dividend. Buffett Loses $23 Billion. Branson's Virgin Orbit Declares Bankruptcy. Insurance Company Risks. Schwab Loses $41 Billion in Cash Deposits. Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? The Online Global Earth Gratitude Celebration 7 Green Life Hacks Fossil Fuels Touch Every Part of Our Lives Are There Any Safe, Green Banks? 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. Which Countries Offer the Highest Yield for the Lowest Risk? Solar, EVs, Housing, HSAs -- the Highest-Yield in 2023? Why We Are Underweighting Banks and the Financial Industry. 2023 Bond Strategy Emotions are Not Your Friend in Investing Investor IQ Test Investor IQ Test Answers Bonds Lost -26%, Silver Held Strong. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. The Bank Bail-in Plan on Your Dime. Rebalancing Your Nest Egg IQ Test. Answers to the Rebalancing Your Nest Egg IQ Test. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Black Friday. Cyber Monday. 2023. Happy Thanksgiving! What are you thankful for? Share with us on social media. Among the many things that we’re grateful for, we’re happy to be able to offer the following Black Friday/Cyber Monday deals. Free Ebooks make great stocking stuffers! From Friday, Nov. 24 to Tuesday, Nov. 28 ONLY, you can download Natalie Pace’s bestselling ebooks for free. (Canadians, while the offer might not be available to you, the ebook price is under $5, and our other deals are definitely yours for the taking.) The Power of 8 Billion: It’s Up to Us. Learn the quadruple win of greener choices. Save thousands annually. Healthier You, Healthier Budget, Healthier planet. Put Your Money Where Your Heart Is (2nd edition) Investing Strategies for Lifetime Wealth and a Sustainable Planet. One of the original ESG Investing books that was first in 2008. The ABCs of Money (5th edition) Time-Proven 21st Century Strategies for Debt Reduction, Budgeting, Real Estate, Stocks, Bonds, Crypto, Gold and more. The ABCs of Money for College Get a better degree for up to half the cost. Parents: you want to read this book when your child is born. Teens: if you’re going to have to plan this on your own, there are great tips and resources that you just won’t find with your college counselors and those standardized personality tests. BOGO Coaching Buy 3 and Get 3 Additional Private Prosperity Coaching Sessions Complimentary Call 310-430-2397 or email info@NataliePace.com for pricing and information. (You're also receiving a bundling discount on the 3-pack that you purchase.) These sessions can be used for an unbiased 2nd opinion of your current wealth plan. Learn exactly what you own and what a safer, hotter, and more diversified plan looks like. Natalie Pace’s analysis comes with color-coded details of all of your holdings and easy-to-understand instructions that you can choose to use (or not). You’ll learn what’s toxic, what’s safe, what you have too much of and what you’re missing. You’re the boss of your money. Our mission is to provide the news, information, time-proven systems and education to make it easier to navigate through all the noise, hullabaloo and traps, to live a richer life, earn money while you sleep and stop making the billionaires rich at our own expense (also good for the planet). Complimentary Coaching Receive a 50-minute Private Prosperity Coaching Session (value $400) when you register for our New Year, New You Financial Freedom Retreat between Black Friday and Cyber Monday. The above offers expire Tuesday, Nov. 28, 2023 at midnight PT. Save $200 On the New Year, New You Financial Freedom Retreat Now through Nov. 30, 2023, you’ll save $200 when you register for our Jan. 13-15, 2024 online retreat. Bring someone with you and they pay half of the regular price. (Bring a teen or college student for less than many people spend on streaming services!) Sustainability Adventures Treat yourself to a week in a royal manor house in Cornwall, England, with a select group of Brain Trust adventurers. What can you learn by living and visioning as you walk in the footsteps of billionaires who have kept their wealth for centuries? The 2023 Retreat was an epic success. The possibilities are endless when you step into a world of infinite possibilities, where you are in control of what you create and how you live. Check out the testimonials and a short video created by the attendees at the Restormel Retreat flyer on the home page at NataliePace.com. Join us for our Restormel Royal Immersive Adventure Retreat. March 8-15, 2024. Email info@NataliePace.com to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. There is very limited availability, and you must register early to ensure that you get the exact room you want. This retreat includes an all-access pass to all of our online training for a full year for two! The holiday gift of financial freedom is one that will transform your life forever. As Natalie Pace says, “Every cent we own and every moment we spend is always an investment.” Imagine stepping into a life where you feel a return on investment of time, talent and money with every breath you take. Email info@NataliePace.com or call 310-430-2397 to learn more now. Happy Thanksgiving! Natalie Wynne Pace is an Advocate for SustainabilityFinancial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Substack on Apple and Spotify. Watch videoconferences and webinars on Youtube. Other Blogs of Interest Auto Strikes End. EV Price Wars Continue. WeWork's Bankruptcy. Half-Empty Office Buildings. Problems in our Personal Wealth Plan. Solutions for Unaffordable Housing. The Magnificent 7 Drag NASDAQ into Another Correction Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing Air B N Bust? Santa Rally 2023 or Time to Get Defensive? Barbie. Oppenheimer. Strikes. Streaming Wars. Netflix. Monero: A Token of Trust? 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) The USA AAA Credit Rating is on a Negative Watch. Lithium. Essential to EV Life. I'm Just Not Good at Investing. Investors Ask Natalie. Should I Buy an S&P500 Index Fund? Investors Ask Natalie. Bonds Lost More than Stocks in 2022. 2023 Company of the Year Do Cybersecurity Risks Create Investor Opportunities? Writers Strike, While Streaming CEOs Rake In Hundreds of Millions Annually. I Lost $100,000. Investors Ask Natalie. Artificial Intelligence Report. Micron Banned in China. Intel Slashes Dividend. Buffett Loses $23 Billion. Branson's Virgin Orbit Declares Bankruptcy. Insurance Company Risks. Schwab Loses $41 Billion in Cash Deposits. Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? The Online Global Earth Gratitude Celebration 7 Green Life Hacks Fossil Fuels Touch Every Part of Our Lives Are There Any Safe, Green Banks? 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. Which Countries Offer the Highest Yield for the Lowest Risk? Solar, EVs, Housing, HSAs -- the Highest-Yield in 2023? Why We Are Underweighting Banks and the Financial Industry. 2023 Bond Strategy Emotions are Not Your Friend in Investing Investor IQ Test Investor IQ Test Answers Bonds Lost -26%, Silver Held Strong. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. The Bank Bail-in Plan on Your Dime. Rebalancing Your Nest Egg IQ Test. Answers to the Rebalancing Your Nest Egg IQ Test. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Electric vehicles are the fastest growing vertical in the auto industry, and China is the biggest auto market in the world. Tesla and General Motors are the both on the Top 10 Chinese New Energy Vehicle list. Tesla is 2nd behind BYD Auto year to date, with 7.8% and 36.0% market share, respectively (source: CNEVPost.com). However, GM’s joint venture, SAIC-GM-Wuling, just soared to #3 in October, while Tesla sank to #8, with 6.4% and 3.7% market share on the month, respectively. Recently, despite the rapid growth of EVs, both Ford and GM moderated their tone on a move from ICE* to electric. Why is that, and what does that mean for the future of Ford and General Motors? Why are these companies pumping the brakes on their EV launches? *Internal Combustion Engines Will the EV price wars, inflation and uncertain economic times cause struggling or cash-bleed startups to go belly-up? Can Rivian keep losing $32,595 for every vehicle sold? We’ll also cover the following in this blog. Competition is Fierce Chinese EVs Valuations are Volatile Tesla And here is more information on each point. Why are Ford and General Motors pumping the brakes on their EV launches? Both companies have indicated that the price wars, inflation and profitability lie at the heart of a more moderate approach to their EV transition. Electric vehicles made up less than 5% of Ford’s revenue in the most recent quarter. Ford’s CFO John Lawler put a positive spin on the slower adoption. In the company’s 3Q earnings press release, he wrote, “Ford is able to balance production of gas, hybrid and electric vehicles to match the speed of EV adoption in a way that others can’t. That’s obviously good for customers, who get the products they want – and good for us, too, because disciplined capital allocation and not chasing scale at all costs maximizes profitability and cash flow.” What Lawler didn’t mention is that retooling factories from ICE to EV is an expensive game, particularly when your credit rating is at the lowest rung of investment grade (BBB-), and your current liabilities are almost four times the company's cash on hand. Meanwhile, General Motors delivered 541,000 EVs in China in the 3rd quarter of 2023, mostly through its joint venture with SAIC-GM-Wuling (295,000 units). However, GM CEO Mary Barra is dialing back the company’s previously pledged plan of an all-electric future. In the 3Q 2023 Letter to Shareholders of Oct. 24, 2023, Barra wrote, “We are moderating the acceleration of EV production in North America to protect our pricing, adjust to slower near-term growth in demand, and implement engineering efficiency and other improvements that will make our vehicles less expensive to produce, and more profitable.” GM is rated BBB by S&PGlobal. GM’s cash vs. current liabilities is in a similar situation to Ford’s. Both Ford and GM have union labor, pensions and other post-employment benefits weighing on their margins – challenges that Tesla and the Chinese companies do not have (yet). The transition to electric vehicles is similar to the instant switch the world made from ICE to hybrids in 2004 – when the Toyota Prius was named Car of the Year by Motor Trend. After Toyota changed the game with the Prius hybrid, the Big 3 Detroit automakers suffered greatly. Both Chrysler and GM eventually had to declare bankruptcy in 2009. Their stronghold on ICE vehicles helped GM and Ford keep their revenues above $150 billion in 2022 – keeping them in the Top 4 in sales worldwide, behind Toyota (#1) and Stellantis (#2). (Ford Motor Company posted a net loss of -$1.98 billion in 2022.) EVs made up 7.9% of U.S. total industry sales in the 3rd quarter of 2023. The industry has a great ways to go before it puts ICE out of business. Meanwhile the Chinese automakers dominate revenue growth. Li Auto surged 271.6% year over year, Nio gave a strong showing in the 3rd quarter with a 75.4% annual increase in deliveries, Xpeng enjoyed its best month ever in October 2023 with 20,002 deliveries , which will be three times 4Q 2022, if the company continues apace. BYD continues to enjoy the top NEV sales spot, with year-over-year revenue growth of 38.5%. Email info@NataliePace.com with Auto Stock Report Card in the subject line if you’d like an updated report. Will the price wars, inflation and uncertain economic times cause struggling or cash-bleed startups to go belly-up? Can Rivian keep losing $32,595 for every vehicle sold? The startup had impressive revenue growth of 149.4% in the most recent quarter. However, Rivian also lost $6.75 billion in 2022. They talk about a pathway to profitability, but can this expensive EV truck (starting at $75,000) get there? Tesla is profitable, but is having its margins squeezed due to the price wars. The company’s net profit was $1.85 billion in the 3rd quarter of 2023, down -44% from $3.29 billion a year ago. Most of the younger EV companies are cash negative. WM Motors, a Chinese EV startup, filed for a pre-restructuring process on October 7, 2023. It hopes to continue operating. Fisker delivered 1097 Ocean vehicles in the third-quarter, which was their first full quarter of deliveries. While that’s impressive, at the same time, the company slashed production by 26%. The price wars, inflation and economic uncertainty are forcing all automakers to conserve capital and manage production, so they don’t build up too much inventory. Competition is Fierce China is already competing in the EV space in other countries. Moody's predicts that China will overtake Japan as the world's #1 exporter of vehicles by the end of this year. Nio cars have won awards in Germany, Sweden and Norway. They are also competing to have the smartest car, the best charging network (or battery swap), the safest vehicles and even the most productive showrooms and sales teams. Europe is so concerned about the Chinese dominance of EV exports that the European Union launched an anti-subsidy probe in September of 2023. With much lower labor costs, the Chinese automakers have the ability to keep prices low and competitive, forcing other carmakers, including Tesla, to lower prices to compete. Because interest rates are now a major consideration in the monthly payment, and most people finance their vehicle purchases, even Tesla has become more measured in its projections, mentioning the phrase “uncertain times” at least five times in their most recent earnings call. Serious delinquencies on credit card debt and auto loans in the U.S. are still low, but are starting to creep up. Chinese EVs As you can see in the chart at the top of this blog, BYD is by far the most popular EV brand in China. Li Auto is doing great with its plug-in hybrid. An emerging preference for hybrids has come about perhaps because drivers just don’t want to queue up at charging stations. Nio makes its charging stations available to other customers, but prioritizes their own customers during high demand. While both Nio and XPeng struggled over the last year, they have completed their new launches with flying colors. Xpeng delivered 40,008 vehicles in the third quarter, which is an increase of 72.4% sequentially and 35.3% year over year. Nio delivered 55,432 vehicles in the third quarter, which is an increase of 75.4% year over year, and more than double the deliveries in the second quarter. Valuations are Volatile Valuations on all EV automakers are very volatile. Tesla’s 52-week range is $100-$300/share. It has soared and plunged to a valuation of over a trillion and a low of $300 billion (still massive compared to its peers). Nio and XPeng are trading very close to their five-year lows. In addition to the various challenges that all auto manufacturers have faced since the pandemic, including rising interest rates, supply chain issues, and the price wars, the Chinese companies have fallen out of favor on Wall Street. Although there is hope that the accounting standards are in better shape than originally thought, not all of the Chinese companies have recovered from the negative sentiment. Tesla Tesla vehicles are beloved around the world. The company had revenue of $81.46 billion, with net income of $12.58 billion, in 2022. The Tesla Model 3 has become more affordable than its ICE competitors, once you factor in tax incentives. Add in gasoline savings and you're really saving money. More recently, however, Tesla's sales growth has slowed to 9% YOY, and net profit margins are getting squeezed. While analysts and investors place a lot of hope for Tesla’s expansion into Mexico and the cyber truck, Elon is tempering expectations on both of these. He believes that it is possible to hit deliveries of a quarter of a million cyber trucks perhaps by 2025, but warns that profitability is a problem with this particular product. High interest rates were another concern touched on repeatedly in the Tesla third quarter 2023 earnings call. According to Elon, “informing people of a car that is great but they cannot afford doesn't really help. So, that is really the thing that must be sold, is to make the car affordable, or the average person cannot buy it for any amount of money.” A lot of American companies, particularly companies in hot industries like electric vehicles and artificial intelligence, are being priced at very high valuations. Tesla’s price earnings ratio is 68. Essentially investors are assigning a value of $772 billion to a company that only had $12.6 billion in net income last year, and is likely to have less in 2023. Bottom Line Electric vehicles, and the emphasis on artificial intelligence and smart cars in this industry, are exciting. EVs continue to be the fastest growing vertical in autos. However, capitalizing as an investor is quite tricky with the squirrelly valuations, price wars, expensive share prices, and the fact that a lot of people are burning through their personal savings to stay afloat in today’s inflationary world. Automakers always suffer greatly when the economy slows down or hits a recession, since 70% of U.S. GDP is directly linked to consumption. Even though Tesla is a clear leader, with brand pizazz, beloved products, and strong sales, that’s already more than priced in. A better choice for many investors, including more passive investors, might be an ETF that targets EVs, such as the iShares IDRV product. That ETF offers exposure to Tesla, BYD, Rivian, XPeng, Li auto and more. Using a dollar-cost-averaging approach, with our pie chart system and regular rebalancing, will help us to stay on the right side of the trade. Join us at our Jan. 13-15, 2024 New Year, New You Financial Freedom Retreat. Learn nest egg strategies, how to get hot and diversified (including in EVs and AI), and what's safe in a Debt World. You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. Email info@NataliePace.com to register. Learn the 15+ things you'll master and read testimonials in the flyer (link below) and on the home page at NataliePace.com. Register by Nov. 30, 2023 to receive the best price. Many people, including educated men and women, often get into trouble when they neglect to follow simple and fundamental rules of the type provided [by Natalie]. This is why I recommend them with enthusiasm." Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human capital Join us for our Restormel Royal Immersive Adventure Retreat. March 8-15, 2024. Email info@NataliePace.com to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. There is very limited availability, and you must register early to ensure that you get the exact room you want. This retreat includes an all-access pass to all of our online training for a full year for two! Natalie Wynne Pace is an Advocate for SustainabilityFinancial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Apple Podcast. Watch videoconferences and webinars on Youtube. Other Blogs of Interest WeWork's Bankruptcy. Half-Empty Office Buildings. Problems in our Personal Wealth Plan. Solutions for Unaffordable Housing. The Magnificent 7 Drag NASDAQ into Another Correction Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing Air B N Bust? Santa Rally 2023 or Time to Get Defensive? Barbie. Oppenheimer. Strikes. Streaming Wars. Netflix. Monero: A Token of Trust? 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) The USA AAA Credit Rating is on a Negative Watch. Lithium. Essential to EV Life. I'm Just Not Good at Investing. Investors Ask Natalie. Should I Buy an S&P500 Index Fund? Investors Ask Natalie. Bonds Lost More than Stocks in 2022. 2023 Company of the Year Do Cybersecurity Risks Create Investor Opportunities? Writers Strike, While Streaming CEOs Rake In Hundreds of Millions Annually. I Lost $100,000. Investors Ask Natalie. Artificial Intelligence Report. Micron Banned in China. Intel Slashes Dividend. Buffett Loses $23 Billion. Branson's Virgin Orbit Declares Bankruptcy. Insurance Company Risks. Schwab Loses $41 Billion in Cash Deposits. Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? The Online Global Earth Gratitude Celebration 7 Green Life Hacks Fossil Fuels Touch Every Part of Our Lives Are There Any Safe, Green Banks? 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. Which Countries Offer the Highest Yield for the Lowest Risk? Solar, EVs, Housing, HSAs -- the Highest-Yield in 2023? Why We Are Underweighting Banks and the Financial Industry. 2023 Bond Strategy Emotions are Not Your Friend in Investing Investor IQ Test Investor IQ Test Answers Bonds Lost -26%, Silver Held Strong. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. The Bank Bail-in Plan on Your Dime. Rebalancing Your Nest Egg IQ Test. Answers to the Rebalancing Your Nest Egg IQ Test. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. What WeWork’s Bankruptcy and Half-Empty Office Buildings Have to Do With Our Personal Wealth Plan.9/11/2023 What WeWork’s Bankruptcy and Half-Empty Office Buildings Have to Do With Our Personal Wealth Plan. WeWork is the first major crack in the frozen commercial real estate market. What other companies will fall in and sink? Is this dangerous for our own wealth plan or the overall economy? With all that is going on in the world (prayers for peace continue), you might not have heard that WeWork filed for bankruptcy on Nov. 6, 2023. The company will continue operating, but will restructure its debt and use the Chapter 11 filing to exit its underperforming leases. According to David Tolley, the CEO of WeWork, “Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet.” Since WeWork was the largest tenant in New York City, this could have a major ripple effect on other commercial real estate companies, at a time when the industry is already in distress. In a report earlier this year, S&P Global warned that “fundamentals in the office real estate market are deteriorating, pressured by longer-term secular headwinds from remote working and near-term cyclical risks from a slowing economy and weaker job growth.” The rating agency downgraded Hudson Pacific Properties to junk (BB+, outlook negative) on June 28, 2023. (WeWork was always a junk bond – even before its failed IPO.) Most CRE corporations are at the lowest rung of investment grade or speculative status. Why should this matter to the Main Street investor? Banks, insurance companies and pension providers loan on a long-term basis to commercial real estate companies, and these problematic loans and bonds are losing value. As we’ve been reporting all year, long-term bonds lost more than stocks in 2022. Since financial planners (even fiduciaries) typically invest the safe side of our portfolio in bonds, this problem impacts many of us (who might not realize it, if we are not forensic about reviewing our holdings). CRE exposure and long-term bonds were also at the heart of the bank failures earlier this year. Whether we have uninsured deposits or annuities, are counting on a pension, or just want to ensure that the “safe” side of our wealth plan is protected from capital losses, it’s important to understand the issues of CRE, why we’re underweighting the industry in our sample pie charts, and what each one of us can do to steer clear of the risk. (Consider joining us for our New Year, New You Retreat or getting an unbiased 2nd opinion through my private coaching program. Email info@NataliePace.com for pricing and information.) Here are the topics we’ll cover in this blog. Recent Downgrades to Junk Suspended Dividends (HPP) Empty Office Buildings Stalled-Out Projects (Google: One Westside) Valuations Debt Banks, Insurance Companies, Pension Plans And here is more information on each point. Recent Downgrades to Junk Before Hudson Pacific Properties was downgraded to speculative status on June 28, 2023, the company was trading at $15/share with a yield of 19%. It’s now trading in the $5/share range, with a suspended dividend. Be careful of taking the bait of high yield. It can result in major capital loss. In the case of a bankruptcy like WeWork, it is common for existing stock to become worthless, and for the company to reissue new shares when it emerges from bankruptcy. Suspended Dividends Hudson Pacific Properties suspended their dividend on September 7, 2023. Vornado postponed their dividends on April 26, 2023. At the end of the year, the company will determine whether the dividend will be paid in cash or cash and securities. We don’t get advance notice before the action takes place. Typically companies announce after the market close, which causes the stock to gap down in after-hours trading. (In the case of GE, Warren Buffett magically exited the stock just a few months before the company slashed their dividend by half.) By the time that most Main Street investors learn of the bad news, they’ve already lost a great deal of money. There have been many lessons over the years on dividends. Click for a history lesson on what happened when General Electric cut its dividend in Nov. 2017. FYI: We also warned about WeWork when the IPO was first announced. Empty Office Buildings Work From Home has changed the inner city landscape. Gone are the bustling business centers and the crowded taco stands, lunch counters and restaurants that serviced office staff. Vacancies are up, and many corporations are looking to downsize their office footprint. Alphabet (Google) booked $2.6 billion in charges related to workforce and office space reductions in the 1st quarter of 2023. Many other companies, including technology, banking and more, are reducing their office space and switching to hybrid work-from-home schedules for their staff. When we hear Jamie Dimon and other bank CEOs yelling that people have to come back to the office or else, one of the underlying reasons is that banks have a lot of exposure to those empty office buildings. HENRYs fled expensive cities to work from home in more affordable suburbs and towns. With housing still largely unaffordable in the very areas with the highest office vacancy rates, it’s difficult to see this situation resolving itself without more bloodbaths like WeWork – no matter how red in the face exacerbated CEOs get. Stalled-Out Projects (Google: One Westside) In January 2019, Google signed a 14-year lease as the sole tenant of One Westside, a mall renovation project owned 75% by Hudson Pacific Properties and 25% by Macerich. Everyone was excited by this ambitious attempt to give new life to an outdated shopping center. And then the pandemic hit. All three companies (Macerich, Hudson and Alphabet) have been radio silent on when or if Google is going to move into One Westside. However, the building is completely fenced in. and there was no construction activity when I visited the site in September and again in November. When I visited on Nov. 7, 2023, I was greeted at the gate by a construction supervisor who told me there was still a lot of work to do before any tenant could occupy the space. Valuations Transactions have been down significantly in CRE of late. Sales this year are about 1/3 of the volume of transactions last year (source: CommercialEdge). Hanging on to hopes that outdated valuations would hold worked out during the pandemic, when money was flowing free and easy. However, now monetary policy is tight and expensive. Many loans and covenants are coming due in 2024. With a frozen market, the valuations that the CRE companies and banks are clinging to may not be representative of what the buildings are truly worth. We got a glimpse of that on Oct. 10,, 2023 when a downtown Boston office building sold for $4.1 million. It had been purchased for $16 million in 2018. The potential for large losses on commercial real estate is currently one of the most cited risks to financial stability in the U.S. Debt Commercial real estate has been on a lifeline of leases and federal support since 2020. However, as leases come up and are not renewed, as companies fail (WeWork), or as large corporations (such as Alphabet) are willing to take a huge financial hit to extricate themselves from their leases, all of which are happening, CRE companies are forced to borrow money to make ends meet. Many already have speculative credit, or reside at the lowest rung of investment grade. Borrowing today with a low credit score is expensive. High vacancies complicate things even further. The older the building, the least likely it is to be one of the chosen few for the new work environment, which trends toward communal space and sustainability over cubicles and a big CO2 footprint. Banks, Insurance Companies, Pension Plans According to the Federal Reserve’s Oct. 2023 Financial Stability Report, “Higher interest rates, declining property prices, and structural shifts in demand for office space may prompt large realized losses.” Small and regional banks are the most vulnerable to CRE weakness. However, insurance companies are also large holders of commercial mortgage-backed securities (CMBS). “Life insurers continued to allocate a high percentage of assets to risky instruments, such as leveraged loans, high-yield corporate bonds, privately placed corporate bonds, and alternative investments,” according to the Financial Stability Report. Bottom Line It’s important to look forensically at the holdings in our wealth plan, even if it is professionally managed. Telling our financial advisor broker/salesman to get us “safe” is not guaranteed to achieve what we desire, especially if we don’t know or understand what we own. (I do a great deal of 2nd opinions and have seen losses and heard many alarming misrepresentations in “conservatively” allocated wealth plans! Click to read about a few.) The safe side of our portfolio is not supposed to be vulnerable to capital losses. While digging into the details might sound laborious or complicated, it’s actually less time and money (there is quite a lot at stake money-wise) once we learn the life math that we all should have received in high school and college. Wisdom is the cure and the time to be the boss of our money and future is now. I’ll be discussing this in greater detail in my Thursday videoconference (Nov. 9, 2023). Email info@NataliePace.com with VIDEOCON in the subject line if you’d like to join us live. (You’ll receive the logon instructions automatically if you’re already on the list.) Email info@NataliePace.com with CRE Stock Report Card in the subject line if you’d like an updated Stock Report Card. Join us at our Jan. 13-15, 2024 New Year, New You Financial Freedom Retreat. Learn nest egg strategies, how to get hot and diversified, and what's safe in a Debt World. You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. Email info@NataliePace.com to register. Learn the 15+ things you'll master and read testimonials in the flyer (link below) and on the home page at NataliePace.com. Register by Nov. 30, 2023 to receive the best price. Many people, including educated men and women, often get into trouble when they neglect to follow simple and fundamental rules of the type provided [by Natalie]. This is why I recommend them with enthusiasm." Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human capital Join us for our Restormel Royal Immersive Adventure Retreat. March 8-15, 2024. Email info@NataliePace.com to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. There is very limited availability, and you must register early to ensure that you get the exact room you want. This retreat includes an all-access pass to all of our online training for a full year for two! Natalie Wynne Pace is an Advocate for SustainabilityFinancial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Apple Podcast. Watch videoconferences and webinars on Youtube. Other Blogs of Interest Solutions for Unaffordable Housing. The Magnificent 7 Drag NASDAQ into Another Correction Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing Air B N Bust? Santa Rally 2023 or Time to Get Defensive? Barbie. Oppenheimer. Strikes. Streaming Wars. Netflix. Monero: A Token of Trust? 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World Summer Sweepstakes 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) The USA AAA Credit Rating is on a Negative Watch. Lithium. Essential to EV Life. I'm Just Not Good at Investing. Investors Ask Natalie. Should I Buy an S&P500 Index Fund? Investors Ask Natalie. Bonds Lost More than Stocks in 2022. Tesla's Model Y is the Bestselling Car in the World. 2023 Company of the Year Sell in May and Go Away? Do Cybersecurity Risks Create Investor Opportunities? Writers Strike, While Streaming CEOs Rake In Hundreds of Millions Annually. I Lost $100,000. Investors Ask Natalie. Artificial Intelligence Report. Micron Banned in China. Intel Slashes Dividend. Buffett Loses $23 Billion. Branson's Virgin Orbit Declares Bankruptcy. Insurance Company Risks. Schwab Loses $41 Billion in Cash Deposits. The Debt Ceiling Crisis. What's at Stake? Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? Empty Office Buildings & Malls. Frozen Housing Market. The Online Global Earth Gratitude Celebration 7 Green Life Hacks The Debt Ceiling. Will the U.S. Stop Paying Bills in June? Fossil Fuels Touch Every Part of Our Lives Are There Any Safe, Green Banks? 8 Fires the Federal Reserve Board Needs to Put Out. 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. The 2 Best Solar Stocks Which Countries Offer the Highest Yield for the Lowest Risk? Rebalance By the End of March Solar, EVs, Housing, HSAs -- the Highest-Yield in 2023? Are You Anxious or Depressed over Money? Why We Are Underweighting Banks and the Financial Industry. You Stream all the Channels. Should You Invest, Too? NASDAQ is Still Down -26%. Are Meta & Snap a Buy? 2023 Bond Strategy Emotions are Not Your Friend in Investing Investor IQ Test Investor IQ Test Answers Bonds Lost -26%, Silver Held Strong. 2023 Crystal Ball for Stocks, Bonds, Real Estate, Cannabis, Gold, Silver. Tilray: The Constellation Brands of Cannabis New Year, New Healthier You Tesla's $644 Billion Fall From Mars Silver's Quiet Rally. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. Gardeners Creating Sanctuary & Solutions in Food Deserts. The Bank Bail-in Plan on Your Dime. Rebalancing Your Nest Egg IQ Test. Answers to the Rebalancing Your Nest Egg IQ Test. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Housing is Unaffordable. Here Are Some Solutions and Warnings. The housing market is virtually frozen. Airbnb hosts are experiencing longer periods of unoccupancy. More apartment buildings have been constructed. However, many sit empty because the owners are unwilling to lower their prices. Meanwhile, report after report comes out stating that housing is virtually unaffordable. “The dynamics influencing the U.S. housing market appear to continuously work against everyday Americans, potentially to the point where they could start to have a significant impact on home prices,” said Rob Barber, CEO for ATTOM. “We clearly aren’t there yet, as the market keeps going up… But with basic homeownership now soaking up more than a third of average pay, the stage is set for some potential buyers to be priced out, which would reduce demand and the upward pressure on prices. We will see how this shakes out as the peak 2023 buying season winds down.” High prices, and the need to charge high rents, puts homeowners, commercial real estate, homebuyers and renters all in an untenable position. If you are a homeowner who is in distress, then private coaching might be very helpful. (Email info@NataliePace.com for pricing and information.) At minimum, read the Real Estate section of The ABCs of Money, 5th edition. This blog offers solutions for anyone who finds themselves in a position of paying 30% or more of their income on housing. Drowning in basic needs means we cannot invest in our own future. When we put essentials like food and clothing on credit cards that is a disaster waiting to happen. The only solution is to make brave choices about the big-ticket bills as quickly as possible, in order to get ahead in a world that simply doesn’t add up at this time. Here are the 4 Tips and 3 Warnings we’ll discuss in this blog. Think Bigger Keep the Money in the Family Partner Up The 4 D’s Warnings Are You Buying High? Know Your Neighborhood Do Your Own Math And here’s more information on each point Think Bigger Singles and one-bedrooms are far more expensive than two, three or four-bedroom lodging that you might split with a few friends. If a one bedroom (in a more affordable city) costs $1200 and a two bedroom costs $1400, the saving amounts to about $500 a month which is $6000 a year. Of course, in big cities rents are a lot more expensive than that. However, the savings of thinking bigger tend to be substantial there, as well. If you are a homeowner who is spending 30% or more on your home costs, then is there a way to start earning some income? Can you put in an ADU* and have your aging parents stay there, with everyone contributing to the housing costs? (Why not have them pay you instead of making the landlord rich?) If your parents aren’t the right answer, could you provide lodging for a traveling nurse or Ph.D. student? *additional dwelling unit Keep the Money in the Family We all think about family money when someone passes, and the will of the estate is being parceled out. However, how much more money would we have if we all thought about keeping the money in the family? (This is the way that very wealthy people think.) Yes, this could mean living with your parents as an adult. The Prince of Wales has inherited a lot of land and money. However, for most of his life, he lived in apartments in his Grandmother’s castles and estates. His salary as an air ambulance helicopter pilot wouldn’t have paid for all of his expenses. I know one mother who is close to retirement, who gave her kids the big house and remodeled an ADU in the back for her mother-in-law unit. Family solutions are happening all across the United States. According to a Harris Poll for Bloomberg, about 45% of young adults between the ages of 18 and 29 now live with their parents. For many of them that is a savings of $10,000 or more annually that they would be giving to a landlord. Partner Up Another way of saving money on housing is to partner up. As a young single mother, I moved in with another single mother. I experienced savings of about 30% on rent, thousands of dollars on child care that I didn’t have to spend, and cut my food bill in half because we would switch off weeks that we cooked. There is a pretty funny Neil Simon play and vintage TV show, The Odd Couple, about two divorced dads who move in together to save money. What kind of community will serve you best? The 4 D’s While the housing market is currently frozen, the 4 D’s can be relied upon to dislodge the stalemate. What are the 4 D’s? Death, divorce, depression (recession) and disaster. Sadly, in today’s world, we can count on one of these tragedies occurring. Things become a grave hardship when two or more happen at the same time. Currently, everyone is still hoping that the Federal Reserve Board will achieve a soft landing and start cutting interest rates. What is missing from that rationale is that the Feds don’t cut interest rates until economic conditions have become strident. Cutting interest rates is the medicine administered when unemployment skyrockets, equity prices plunge, foreclosures abound, and corporate bankruptcies escalate. While 0% interest rates have been the norm since the Great Recession, they encourage speculation and discourage savings, which has exacerbated the pickle we’re in today. Those homeowners who wanted to get rich quick or land a treasure trove as an Airbnb host are now hanging on for dear life. Warnings Are You Buying High? Are you tempted to buy now? Are you aware that you’re buying at an all-time high? Are you being seduced into that situation with the bait that you could buy something for less than you’re renting, or with the promise of capital gains or rental income? Did you know that that simple math is excluding a great deal of homeownership expenses and could add up to hard life lessons and expensive losses? Buying high is rarely a good idea, and can destroy your financial life for a decade if home prices fall severely below your mortgage. The reason few people buy low is because they can’t. They have all their money tied up in investments that have lost too much value. There is no liquidity remaining. Matters are made worse because our FICO score plunges as well. In recessions, most people spend years of the recovery hoping and praying that they crawl back to even. Know Your Neighborhood It’s tempting to run off to the suburbs, or some smaller city where prices might be more affordable, particularly if we believe that we can work from home. However, have we factored in the extra expense and time of our commute? Do we really know what the benefits and challenges are of the neighborhood or city that we are moving into? Are there downsides that tourists are simply not aware of? Are these our people? Will you and your neighbors bicker or support one another. There are seven tips for considering where your ideal home should be in the Real Estate section of The ABCs of Money, 5th edition. Do Your Own Math The first time that we buy a house, we are often looking at the price, and then focusing on whatever numbers the real estate broker salesman provides us with. The fine print might include the closing fees and property taxes, but rarely spells out the actual cost of remodeling, the maintenance on the home, and many other expenses that renters rarely experience. While prices are currently at all-time highs is in the United States and many other developed world countries, the real estate broker/salesman will be steering our gaze towards the gains that have been made over the past decade, without warning that in recessions, prices plunge. It is very important to know where the value of your home sits on the Buy Low, Sell High continuum over the past decade. That is far more important than how many gains have been made by sophisticated investors who purchased when the price was much lower. Bottom Line New studies are showing that almost half of people under the age of 30 are living with their parents. While previously this would’ve come with a derisive comment about slackers, it is now being acknowledged as a way to keep the money in the family instead of making the landlord rich. Millennials who are ready to start a family might be sick of this situation and rightfully so. However, the solution is not going to be buying high and trying to ride through the downturn. Losing that much money, and being underwater on a large mortgage, can be very hard on a marriage and is definitely terrible for our FICO score. A little patience in planning to allow the frozen market to thaw could yield smooth sailing ahead. You can learn about more solutions in the Thrive Budget and Real Estate sections of The ABCs of Money, 5th edition. There are lots of ways that we can save thousands of dollars annually with smarter big ticket choices. Few of us are shopaholics who eat avocado toast at restaurants every night (the budget solutions outlined by so many financial authors). Wisdom is the cure. Let’s stop making everybody else rich and keep the money in the family. Join us for our Restormel Royal Immersive Adventure Retreat. March 8-15, 2024. Email info@NataliePace.com to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details. There is very limited availability, and you must register early to ensure that you get the exact room you want. This retreat includes an all-access pass to all of our online training for a full year for two! Natalie Wynne Pace is an Advocate for SustainabilityFinancial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. Check out Natalie Pace's Apple Podcast. Watch videoconferences and webinars on Youtube. Other Blogs of Interest The Magnificent 7 Drag NASDAQ into Another Correction Cruise Ships Give Freebies to Investors. Should You Take the Bait? Should You Take a Cruise? Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe. 7 Rules of Investing Air B N Bust? Santa Rally 2023 or Time to Get Defensive? Barbie. Oppenheimer. Strikes. Streaming Wars. Netflix. Monero: A Token of Trust? 13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough. China Bans Apple 11-Point Green Checklist for Schools. Artificial Intelligence and Nvidia's Blockbuster Earnings Report Biotech in a Post-Pandemic World Summer Sweepstakes 10 Wealth Secrets of Billionaires and Royals. What Happened to Cannabis? Bank of America has $100 Billion in Bond Losses (on Paper) The USA AAA Credit Rating is on a Negative Watch. Lithium. Essential to EV Life. I'm Just Not Good at Investing. Investors Ask Natalie. Should I Buy an S&P500 Index Fund? Investors Ask Natalie. Bonds Lost More than Stocks in 2022. Tesla's Model Y is the Bestselling Car in the World. 2023 Company of the Year Sell in May and Go Away? Do Cybersecurity Risks Create Investor Opportunities? Writers Strike, While Streaming CEOs Rake In Hundreds of Millions Annually. I Lost $100,000. Investors Ask Natalie. Artificial Intelligence Report. Micron Banned in China. Intel Slashes Dividend. Buffett Loses $23 Billion. Branson's Virgin Orbit Declares Bankruptcy. Insurance Company Risks. Schwab Loses $41 Billion in Cash Deposits. The Debt Ceiling Crisis. What's at Stake? Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments. BRICS Currency. Will the Dollar Become Extinct? Empty Office Buildings & Malls. Frozen Housing Market. The Online Global Earth Gratitude Celebration 7 Green Life Hacks The Debt Ceiling. Will the U.S. Stop Paying Bills in June? Fossil Fuels Touch Every Part of Our Lives Are There Any Safe, Green Banks? 8 Fires the Federal Reserve Board Needs to Put Out. 7 Ways to Stash Your Cash Now. Lessons from the Silicon Valley Bank Failure. The 2 Best Solar Stocks Which Countries Offer the Highest Yield for the Lowest Risk? Rebalance By the End of March Solar, EVs, Housing, HSAs -- the Highest-Yield in 2023? Are You Anxious or Depressed over Money? Why We Are Underweighting Banks and the Financial Industry. You Stream all the Channels. Should You Invest, Too? NASDAQ is Still Down -26%. Are Meta & Snap a Buy? 2023 Bond Strategy Emotions are Not Your Friend in Investing Investor IQ Test Investor IQ Test Answers Bonds Lost -26%, Silver Held Strong. 2023 Crystal Ball for Stocks, Bonds, Real Estate, Cannabis, Gold, Silver. Tilray: The Constellation Brands of Cannabis New Year, New Healthier You Tesla's $644 Billion Fall From Mars Silver's Quiet Rally. Save Thousands Annually With Smarter Energy Choices Is Your FDIC-Insured Cash Really Safe? Money Market Funds, FDIC, SIPC: Are Any of Them Safe? My 24-Year-Old is Itching to Buy a Condo. Should I Help Him? The 12-Step Guide to Successful Investing. Gardeners Creating Sanctuary & Solutions in Food Deserts. The Bank Bail-in Plan on Your Dime. Rebalancing Your Nest Egg IQ Test. Answers to the Rebalancing Your Nest Egg IQ Test. Important Disclaimers Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations. ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience. Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. |
AuthorNatalie Pace is the co-creator of the Earth Gratitude Project and the author of The Power of 8 Billion: It's Up to Us, The ABCs of Money, The ABCs of Money for College, The Gratitude Game and Put Your Money Where Your Heart Is. She is a repeat guest & speaker on national news shows and stages. She has been ranked the No. 1 stock picker, above over 830 A-list pundits, by an independent tracking agency, and has been saving homes and nest eggs since 1999. Archives
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