Cash – Pharmas Online http://pharmasonline.net/ Fri, 18 Jun 2021 20:19:33 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 http://pharmasonline.net/wp-content/uploads/2021/05/pharmas-online-icon-150x150.png Cash – Pharmas Online http://pharmasonline.net/ 32 32 6 tips for maintaining healthy finances in your relationship http://pharmasonline.net/6-tips-for-maintaining-healthy-finances-in-your-relationship/ http://pharmasonline.net/6-tips-for-maintaining-healthy-finances-in-your-relationship/#respond Thu, 11 Mar 2021 06:18:52 +0000 http://pharmasonline.net/6-tips-for-maintaining-healthy-finances-in-your-relationship/

This year, after hanging out with your Valentine over a candlelit dinner and a drink of something special, it might be a good time to talk about your relationship.

With your money. Make an appointment for a candid conversation about your financial habits.

“Financial transparency is essential in any long-term partnership,” said Kimberly Bridges, director of financial planning at BOK Financial.

So, in addition to admiring the bouquet of flowers and munching on the candy that Valentine’s Day brings, consider committing to an open and honest approach to your household finances.

“If you really love someone, you don’t want to let them down if you get sick, disabled, or, God forbid, die,” Bridges said. “I know it’s very hard to think about it, but you have to consider how much the household depends on you and your income to pay the bills, maintain your lifestyle and meet future needs.

It takes two

Financial issues are a common source of disagreement in many partnerships.

According to a recent survey by American CPA Institute69% of couples married or living together had a disagreement about money in the past 12 months, and 73% said financial matters are a source of stress.

Bad financial habits can even affect your options. A WalletHub A survey found that 47% of those polled said bad credit would make them turn down a marriage proposal and 47% would see irresponsible spending as a reason to leave a relationship.

In addition, 44% of those polled said that “irresponsible spending is a bigger drag than bad breath”.

Choosing a breath freshener is easy, but building healthy financial habits takes work. Bridges offers six tips:

1. Open. “I think you have to be financially open-book before you enter into marriage,” said Bridges. Everything should be on the table, from checking and savings accounts to investments and credit reports.

“Too often I hear about couples hiding financial behavior. Openness and honesty should be the foundation of your financial life as a couple, ”she added.

2. Share the load. “No one is entitled to a free ride,” said Bridges. Even if one of you is better at numbers, you both need to be on top of all aspects of the household, so pay the bills, balance the books, and discuss financial decisions together.

“Think about your financial shape like your fitness,” said Bridges. “Having a fit partner doesn’t get you in shape. You must each take responsibility for your own physical and financial fitness. “

3. Play the long game. Long-term goals and plans to achieve those goals are just as important as day-to-day matters.

“You might be managing your cash flow and paying your bills every month, but if you’re also not making progress towards long-term goals, you’re just stalling,” Bridges said.

4. Be aware of bumps in the road. Life happens, circumstances change and plans have to be changed. Take on challenges as they arise and be realistic in how you respond to them.

Losing a job or forced early retirement can impact your long-term goals. It’s best to figure out how much and correct the heading as soon as possible.

5. Allow individuality. Healthy finances for a couple can include separate spending accounts and retirement savings.

“It’s not about hiding something, it’s about ‘I have my stuff, you have your stuff and we have our stuff together,’” said Bridges.

6. Responsibility, responsibility, responsibility. Periodic check-ins allow a couple to make sure they are always on track with their income, expenses and savings.

Plus, it increases transparency so that one of you can see if something is wrong and make adjustments.

History of two relationships

Of course, finances are just one aspect of a successful relationship, but they can help soften edges on other fronts as well.

Consider one of Bridges’ acquaintances who was in her mid-thirties when her husband suddenly passed away. Because the couple had spoken out about their situation and had met life insurance needs eight years earlier, the young widow knew her immediate expenses and their daughter’s education needs were covered.

“The stress of knowing what to do next while paying the bills, educating their daughter and keeping a roof over their heads has been taken away,” Bridges said.

Conversely, Bridges has once been approached by a woman who, during her divorce proceedings, found out that her husband had staked everything except his retirement savings and had taken on considerable debt. Because he was an accountant, he had always managed the family books, which had allowed him to hide his addiction – and its impact on their finances – for years.

“Given his expertise, she trusted him, but it turned out that he had committed financial infidelity by hiding and lying about the reality of their financial situation,” Bridges said.

Never too early to start

To give your relationship a solid financial foundation, start talking early. Bridges suggested that you dig deeper into the matter once you feel the relationship is getting serious.

“If you see signs of irresponsible behavior such as a bad credit profile, a lot of debt, or an abundance of credit card debt, it can have an impact if you want to get married now, wait until they work out. ‘order in their financial life, or even leave,’ she said.

And don’t be afraid to bring in a third party such as a relationship advisor, financial advisor, or financial advisor. The objective perspective can help each of you unveil your unique perspectives on finance, Bridges said, as well as lay the foundation for the future.

Together.

This story was originally posted by BOK Financial.


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3 retirement savings questions you should ask yourself if you’re unemployed http://pharmasonline.net/3-retirement-savings-questions-you-should-ask-yourself-if-youre-unemployed/ http://pharmasonline.net/3-retirement-savings-questions-you-should-ask-yourself-if-youre-unemployed/#respond Thu, 11 Mar 2021 06:18:52 +0000 http://pharmasonline.net/3-retirement-savings-questions-you-should-ask-yourself-if-youre-unemployed/

Retirement is probably not a priority if you have lost your job due to the pandemic, but it is undeniable that current circumstances will affect your retirement plans. It can be stressful to think about it, but anticipating how it might affect your future is an important part of getting you back on track.

Here are three questions you should ask yourself about your retirement savings if you’ve recently lost your job or been laid off or on leave due to the pandemic.

Image source: Getty Images.

1. What should I do with my retirement savings at my old job?

Those who have been made redundant or put on leave probably have nothing special to do with their savings, but if you’ve lost your job, you need to decide whether to leave your retirement savings where they are or transfer them to a place where they are. IRA.

Leaving it where it suits you seems more convenient, but it may not be your best option, especially if your old retirement account had high fees or limited you to investment options that weren’t right for you. Transferring your money to an IRA gives you more freedom in how you invest your savings, and if you choose low-cost investments, like index funds, you may be able to lower your fees as well.

Set up an IRA to host your funds if you don’t already have one. Next, contact your former pension plan administrator to find out how to transfer your savings to your IRA. There may be a one-time transfer fee to do this. These funds will be taken from your retirement account balance.

2. Do I need my retirement savings to live now?

Make early withdrawals from your retirement account isn’t ideal, but it might be your best bet right now if you’re struggling to pay your bills. The government has removed the penalty on withdrawals under 59 1/2, and it is giving you up to three years to pay taxes on COVID-19-related distributions. This could make it a better way to get the money you need compared to going into debt and potentially ruining your credit.

However, explore all of your other options before using your retirement accounts. Check if you are entitled to unemployment benefits and use up your emergency fund if you have one. Consider a lateral restlessness bring some extra cash and talk to your creditors for help with difficulties. Many companies have special policies in place for people affected by COVID-19. Just make sure you understand the terms and when you need to start making payments again.

3. How much should I save per month in the future?

You need to redo your retirement plan if you cannot stick to your current plan or have had to withdraw money from your retirement account to cover living expenses. It might not make sense to do this until you have a stable source of income again, but keep it in mind until then.

Unless you plan to work longer, the cost of your retirement will likely stay the same, but you will need to save more per month in the future to make up for the months you are unable to save or the money you have withdrawn from your account. Write down your current retirement account balance and enter it, along with your estimated life expectancy and annual expenses, in a retirement calculator. Use 5% or 6% for your estimated annual rate of return so that your plans don’t get derailed if your investments grow slowly.

The calculator should give you a rough estimate of what you need and how much you need to save each month to reach your goal. If that’s not possible, consider changing your retirement plan. Working a few extra months or years reduces the cost of your retirement while giving you more time to save. You may also want to consider reducing your spending in retirement, although this is a riskier strategy, as you can’t always be sure that you can keep your spending low.

Retirement may be a long way off for you, but the decisions you make right now are still affecting it. Thinking carefully about the questions above can help you stay on track to achieving your goals or get back on track if you’ve fallen behind.


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Disney’s 93% drop in profits isn’t as bad as it sounds http://pharmasonline.net/disneys-93-drop-in-profits-isnt-as-bad-as-it-sounds/ http://pharmasonline.net/disneys-93-drop-in-profits-isnt-as-bad-as-it-sounds/#respond Thu, 11 Mar 2021 06:18:52 +0000 http://pharmasonline.net/disneys-93-drop-in-profits-isnt-as-bad-as-it-sounds/

“[Disney’s] The two segments hit hardest by the pandemic are the studio entertainment segment and the parks, experiences and products segment. “

So predicted my mad colleague Danny Vena on Monday in his earnings preview for the Walt Disney Company (NYSE: DIS) well, Disney did not disappoint. In its publication of its results Tuesday, covering a second fiscal quarter decimated by concerns about the coronavirus, Disney reported an 8% year-on-year drop in studio entertainment profits … and a 58% dive into the benefits of parks, experiences and products.

Disney’s profits from continuing operations slumped – down 93%, while total net profits fell to just $ 475 million.

Image source: Getty Images.

“The impact of COVID-19 on the operating income of our Parks, Experiences and Products segment [alone] was about $ 1.0 billion, “the Disney earnings release said,” primarily due to the loss of revenue as a result of the closures. ” GAAP lost profits.

And yet, was the news really that bad?

I would say no, mainly because the generally accepted accounting principles (GAAP) numbers don’t tell the whole story here at mouse house. In fact, if you turn the page from Disney’s income statement to Disney’s statement of cash flow, the picture is much clearer. In the first quarter, Disney generated more than $ 1.9 billion in positive free cash flow during the quarter.

Granted, that number was down 30% from the first quarter of last year. Also true, these Disney generated cash profits were four times the amount of Disney earnings reported under GAAP.

So as bad as the Disney neighborhood looked – and I admit it looked pretty bad – it was at least four times better than that.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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Can I make up for bad credit with high income and down payment? http://pharmasonline.net/can-i-make-up-for-bad-credit-with-high-income-and-down-payment/ http://pharmasonline.net/can-i-make-up-for-bad-credit-with-high-income-and-down-payment/#respond Thu, 11 Mar 2021 06:18:52 +0000 http://pharmasonline.net/can-i-make-up-for-bad-credit-with-high-income-and-down-payment/

In this article:

It is not uncommon to find a mortgage applicant with good income, but not a high credit rating. Do applicants with high income and large down payments still need bad credit home loans?

  1. Mortgage underwriting is carried out mainly by software
  2. Software assesses income, credit and down payment to determine loan risk
  3. The right mix of income and down payment can overcome bad credit – up to a point.

Note that most programs have minimum credit scores that must be met no matter what.

Check your new rate (June 16, 2021)

Why income is more important than before

Income, as we know, is nice to have. There is no doubt that financially successful people are right when they say “I was poor, and I was rich, and rich is better”.

Income is very important to mortgage lenders. As of 2014, lenders must rate most borrowers using the Federal Repayment Ability Standard (ATR). The rule says that lenders must be certain that borrowers have the financial strength to repay debt.

Related: How To Buy A Home With $ 50,000 A Year

The rule does not apply to financing such as an open-ended credit plan, timeshare plan, reverse mortgage, or temporary loan.

“Under the rule,” says the Consumer Financial Protection Bureau, “lenders are generally required to research, consider, and document a borrower’s income, assets, employment, credit history, and monthly expenses.

Affordability calculation

Lenders want to know what you earn, and also what you spend on accounts like credit cards, housing, car payments, and student debt. They then compare your monthly recurring debt with your gross monthly income, which they call the debt-to-income ratio or DTI.

If, before taxes, you earn $ 5,000 per month and apply for a loan with principal, interest, property taxes and home insurance (PITI) of $ 1,000 per month, you would spend 20% of your income on housing. Many (but not all) lenders do not like to see this number exceed 28% to 32%.

Related: How Much Can You Buy? Check your DTI

Your DTI includes the proposed house payment, plus your other monthly bills, but not normal living expenses like food or utilities.

So if, on top of your proposed $ 1,000 PITI, you pay $ 500 per month for your car, $ 250 for credit cards, and $ 250 for a student loan, your DTI is 40% ($ 2,000 / $ 5,000).

What is too much debt?

So how much debt is too much? Different loan programs are suitable for different DTI levels. For example, FHA insured mortgages typically limit the DTI to 43%, but will go up to 50% if you have certain “compensating factors”.

These include purchasing an energy efficient home, a very good credit rating, prudent use of credit, or substantial savings balances.

Related: How Much A Home Can You Afford?

If you have a gross monthly income of $ 6,000, FHA guidelines may allow $ 1,860 for housing costs (31%) and $ 2,580 for all monthly accounts, including housing (43%). This is because you can have $ 720 for monthly fees like auto loans, student loans, and credit card bills while still meeting the DTI standard.

VA is a little different

With the VA, you can have a DTI of up to 41 percent, and it doesn’t matter how much goes for housing and how much goes for other debt. If you don’t have any other accounts, you could actually apply the full 41% to a mortgage.

(The FHA now has a similar approach for thrifty borrowers: It will allow ratios of up to 40% for housing if you have no debt and strong credit.)

Related: How To Use Residual Income To Qualify For A VA Mortgage

In addition, VA allows for another, more lenient calculation called Residual Income. If you do not qualify for the DTI ratio, lenders should also apply the residual income standard to see if you meet this guideline.

DTI compliance depends on credit and down payment

Compliant loans sold to Fannie Mae and Freddie Mac have maximum ratios that depend on your down payment and FICO score. The DTI limit is usually between 36% and 45%.

However, there are now programs like HomeReady and Home Possible that can allow DTIs of up to 50%.

Related: Qualifying For A Mortgage With Tip Income

While it may seem tempting to get mortgage financing with a 50% debt-to-income ratio, borrowing with such a high DTI can be risky in the event of layoff, downsizing, or any other loss of income.

What is worse? Low income or credit rating?

It may seem like someone who can break through the barriers of DTI will go through the mortgage application process. While the correct DTI is a must, that is not the whole game. Lenders also want borrowers to meet other standards, especially a strong credit history.

The important point here is that income and credit are not the same thing. Income represents the income of a borrower repayment capacity, and this is important. But if the borrower is not also ready to repay his debts as agreed, income doesn’t matter.

Related: Mortgage Loan With A Credit Score Of 640: You Have Options

Lawyers and doctors can make a lot of money, but some have lousy credit. How can this happen? They don’t use their money to pay their bills.

From the lender’s perspective, the income is good, and a lot of the income is better. But borrowers who don’t pay their bills pose a lot of risk, regardless of their income. How do lenders determine your willingness to repay? They check your credit scores.

The table below shows the breakdown of credit scores for approved loans, courtesy of Ellie Mae. You can see that most approvals are for applicants with FICOs 700 and above for non-government (conventional) loans, and 650 and above for FHA financing.

What is a good credit score for a mortgage loan?

Imagine Ms. Smith earns $ 600,000 a year and has a credit score of 550. The income is great, but that credit score is a huge red flag. Either Ms. Smith won’t get the financing, or the lenders will demand a massive down payment and possibly a high interest rate.

What is a “good” credit score and how can you improve it further?

In general, FICO – the industry-leading credit rating company – says the scores fall like this:

  • 800+ – Excellent
  • 740 to 799 – Very good
  • 670 to 739 – Good
  • 580 to 669 – Medium
  • 579 and less – Bad

It’s important to note that a person with great credit – 800 and over – has about a 1% chance of paying late. Someone with a score of 579 or less has a 61% chance of delinquency.

If you’re a lender, it doesn’t take long to figure this out: a person with bad credit is 60 times more likely to be in delinquency than a person with good credit.

What to do with a low credit score

There are many ways to overcome a low credit score when looking for a mortgage.

First, look for mortgage programs that are open to those with a low credit rating, such as the FHA, VA, or USDA programs.

Second, make a larger down payment. The FHA allows loan approvals for scores as low as 500 if you put at least 10% off, but only at 580 with a 3.5% drop. In general, the lower your credit score, the more you need to deposit.

Third, go to the government site, AnnualCreditReport.com, and check your credit report. (You are allowed to get a free credit report every 12 months from each of the three major credit reporting agencies.)

How to take your credit score from poor to average

Offices should investigate and correct errors once you bring them to their attention. If time is of the essence, your lender can set up a “quick reassessment” service that can correct reports quickly for a small fee.

Fourth, sit down with a nonprofit credit counselor or paid financial planner (who works for fees, not commissions) and work on your credit, savings, and debt until you’re in good shape. financial health.

Check your new rate (June 16, 2021)


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Can you buy the car of your dreams if you have bad credit? http://pharmasonline.net/can-you-buy-the-car-of-your-dreams-if-you-have-bad-credit/ http://pharmasonline.net/can-you-buy-the-car-of-your-dreams-if-you-have-bad-credit/#respond Thu, 11 Mar 2021 06:18:52 +0000 http://pharmasonline.net/can-you-buy-the-car-of-your-dreams-if-you-have-bad-credit/

Many people would like to have a car that combines luxury and comfort, stunning style and design, superb performance and high-tech features. However, owning a dream car can get expensive, and for those with less than perfect credit it can seem like an impossible dream. While some people are able to raise the funds to invest in their dream vehicle, there are many others who have such bad credit that they simply cannot get from the traditional lenders they approve of. their requests.

However, not all news is bad, as there are companies that can offer car credit online for bad credit. These are ideal for those who have a bad credit rating and bad history, but want to raise money to buy their dream vehicle. Of course, you need to make sure that you can afford the auto loan repayments, otherwise you could end up with even worse credit. As long as you make the loan payments on time, you can get the car you want and boost your credit score.

Get the right loan

Generally speaking, loans for bad credit come with higher interest rates than those of people with good credit. So, when you take out a bad credit loan, you should not expect to get low interest rates. However, if you find the right lender, you can get reasonable rates and you can get the financing you need for the vehicle of your dreams. In order to keep repayments to an affordable amount, you may want to consider taking out the financing over a longer period.

Switching from one company to another can be long and difficult for those with other commitments. So, you can go through companies that have a database of car dealerships that offer finance to those with bad credit who have the type of vehicle you need. This can reduce a lot of time and hassle associated with obtaining auto financing. This means that you only need to complete one application and then you can make a decision quickly.

Before committing to any type of financing or loan, you should make sure to look Your budget. It is imperative that you can afford the repayments, otherwise you will end up under increased financial pressure and could further damage your credit as well as lose the vehicle. So, check out what would be the loan amount and repayments on the car of your choice, then do some math to determine affordability.

Of course, you also need to make sure you buy a vehicle that is right for you. While you might have an eye on this two-seater sports number, if you’ve got a family that you need to ferry around you might need to rethink! . next You can get great luxury and high performance cars to suit any need and any circumstance.

With the right auto financing, the car of your dreams can still be yours even if your credit is damaged.


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What are the options of an owner? http://pharmasonline.net/what-are-the-options-of-an-owner/ http://pharmasonline.net/what-are-the-options-of-an-owner/#respond Thu, 11 Mar 2021 06:18:52 +0000 http://pharmasonline.net/what-are-the-options-of-an-owner/

On paper, your tenant looks great: they have a great rental history and sparkling recommendations. Unfortunately, they disclose to you up front (or admit when they fill out the paperwork) that they have bad credit. Should we turn away from this tenant? You may have had a hard time renting your property, or you may be on the fence about other tenants who have applied. Either way, it’s important to know your options when it comes to dealing with a good tenant with bad credit.

Start by checking references

If your tenant looks great on paper and just has a bad credit rating, check their references first. There are many factors that can lead to bad credit scores: unresolved debt, unexpected debt, or even a few years that were just plain harder than others. You can’t tell by just one credit score what put a potential tenant in bad financial shape. While you don’t want to ask these references what caused bad credit – that’s a question for your prospective tenant – you can ask them about the tenant’s liability and behavior in the past.

These simple questions can tell you a lot about what the tenant will be like when they stay in your property. When talking to references, ask:

• How often was the tenant late with their rent? A tenant who has never been late with their rent despite bad credit is a good sign. On the flip side, a tenant who was frequently late or not paying their rent every month might not be a smart risk.

• Did the tenant maintain the property well? Did they promptly notify previous owners if repairs were needed or if there was a problem? Did they do the basic maintenance themselves? Has the property been left in reasonable condition?

• How often did the tenant call for maintenance? Did they constantly have issues to deal with or were they fairly peaceful tenants who rarely raised issues?

• How did the tenant manage interactions with neighbors? Were they a good neighbor or did they frequently complain about them? It is especially important to ask this question if you are renting an apartment building or condo, where the new tenant will be in frequent contact with others in the building.

• In what condition did the tenant leave the property when they left? If a tenant left the property in good condition when they moved out, they were likely responsible for the property in some other way. On the other hand, if they choose to wreck the property before leaving, they are disrespecting their former owner – and they might well do the same to you when leaving.

A good tenant isn’t just about a high credit score. Asking these questions will give you a better idea of ​​the type of tenant you’re dealing with – and in some cases, this information can trump their credit rating.

Talk to the tenant

In addition to checking references, take the time to chat with the tenant. A tenant who is willing to tell you about their bad credit up front may also be willing to discuss what led to their financial situation. A past bankruptcy doesn’t necessarily mean a tenant isn’t making good financial choices now, but it can still leave a stain on their credit report. Taking the time to talk to the tenant can give you a better idea of ​​what put them in this position and what needs to be done to give you confidence that you are making the right decision to rent with them.

Bad Credit Offer Options

If you are considering renting from a tenant who has a bad credit rating, you may want to have options that will make you more comfortable and confident in your choice. Work with your tenant to decide which of these options will work best for both of you:

• Ask for a larger deposit. If a tenant’s credit check is bad, chances are tenants will expect to be asked to pay a larger down payment up front. Include in the contract that the money from this deposit can be used, at your discretion, to cover unpaid rent.

• Shape your rental agreement based on credit needs. You can for example opt for a monthly lease. You may prefer not to pay for electricity and water for a tenant who has a low credit rating, although these are usually included in the rent.

• Charge a higher rent. When you have a tenant with poor credit, you might want to charge them higher rent. You can simply increase the rent amount for that tenant or let them know that as their credit rating improves, you will bring the rent amount back to its original level.

• Create milestones for the tenant to achieve. If you’re worried about a bad credit score, think about what steps you would like them to take in order to prove they’re a responsible tenant and that you’ll get the funds you need on time each month. Over time, you will find that this helps build confidence in your tenant.

Before choosing a tenant for your property, you should always perform a credit check. Good credit can indicate a tenant who is in a better position to make sure their rent is paid on time each month, which will make it easier for you to manage your finances. On the other hand, good credit alone isn’t everything. If you have a great prospective tenant with poor credit, these options will make it easier for you to offer them a spot.


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Here is my best investment idea for September http://pharmasonline.net/here-is-my-best-investment-idea-for-september/ http://pharmasonline.net/here-is-my-best-investment-idea-for-september/#respond Thu, 11 Mar 2021 06:18:52 +0000 http://pharmasonline.net/here-is-my-best-investment-idea-for-september/

It has been a year that has tested investors’ resolve like never before. Panic and uncertainty associated with the 2019 coronavirus disease (COVID-19) pandemic caused stocks to plummet in the first quarter, with the S&P 500 lose more than a third of its value in less than five weeks.

But the fastest decline in the bear market in history was the fastest recovery on record. It took less than five months for the S&P 500 to go from a bearish low to new all-time highs.

Volatility has become a staple of 2020 – but that’s not necessarily a bad thing. While the wild swings in the stock market can be worrisome and overwhelming, they also open the door for long-term investors to buy great stocks at a discount. Although the stock market has recently hit new highs, value and opportunity still abound for the patient investor.

Image source: Getty Images.

If you’ve got the money you’re looking to put to work and time is your friend, my best investment idea for September is a branded business with roots stretching back almost 170 years. Ladies and gentlemen and investors, it’s time to buy a central bank Wells fargo (NYSE: WFC) is now.

Wells Fargo will have to overcome two key hurdles

However, before digging into the various reasons why I think now is the time to take a position in Wells Fargo, it’s important to start by understanding why the company’s stock has lost more than half of its value in 2020. , and why it has been chronically underperforming. of its peers in recent years.

The company’s recent underperformance can be blamed on COVID-19 (surprise!) And the recession that followed. Bank shares are inherently cyclical and depend on an expanding economy to drive loan and deposit growth. The coronavirus pandemic has sent the U.S. economy into its strongest quarterly contraction in decades, and that’s bad news for banks.

You see, the COVID-19 recession is hitting banks like Wells Fargo on two fronts. First, the Federal Reserve has cut its federal funds rate to historically low levels. This means less interest income for the foreseeable future. The other problem is that recessions almost always lead to an increase in delinquency on loans. So, at a time when interest income is declining, banks must set aside capital to cover an expected increase in loan and credit losses. It’s certainly a double whammy, and it led Wells Fargo to report a second quarter loss – its first quarterly loss in 12 years.

A bank manager shaking hands with clients in his office.

Image source: Getty Images.

The other big hurdle for Wells Fargo dates back to 2016, when it was discovered that the bank had opened unauthorized accounts as part of an aggressive cross-selling campaign at the branch level. In 2017, Wells Fargo announced that 3.5 million fake accounts were created. This admission ultimately led Wells Fargo to pay $ 3 billion in February 2020 to settle a civil lawsuit and resolve the prosecutions of the US Department of Justice.

In other words, we are talking about a loss of trust between Wells Fargo and consumers, as well as investors.

Here’s why now is the time to invest in Wells Fargo

This all might sound awful and has completely turned you off from investing in Wells Fargo. But it shouldn’t. If I’ve learned anything about well-capitalized central banks, investing when the outlook is darker often turns out to be the right decision.

The first thing to note about Wells Fargo is that while it has made mistakes, PR mistakes seem to be the norm for central banks. Following the financial crisis, Bank of America (NYSE: BAC) paid over $ 60 billion in settlements, much of which was related to its mortgage practices. BofA also attempted to charge customers a debit card fee in late 2011, which the bank quickly dropped a few weeks later. Although Bank of America was very unpopular in 2011, it has seen its key growth indicators increase for years. The same can be true for Wells Fargo. Regarding the scandal of the company’s fake accounts, time can really heal all wounds.

One of the most interesting differentiators for Wells Fargo, compared to its peers, has been its penchant for luring high net worth clients. Wealthy customers have always been a key growth driver for the business, as the wealthy are less inclined to change their spending habits when inevitable economic problems arise. The wealthy are also more likely to take advantage of multiple product offerings, such as a checking / savings account, one or more lines of credit, a mortgage, and wealth management services.

A messy pile of hundred dollar bills, with Ben Franklin's eyes peering between two bills.

Image source: Getty Images.

Wells Fargo also has a history of delivering above-average return on assets (ROA) compared to its peers. ROA represents the amount of a bank’s net income relative to its total assets. Most banks target an ROA greater than 1%. In Wells Fargo’s case, its ROA ranged from 1.3% to 1.4% before its scandal, and around 1.1% after, even with increased scrutiny and fees. Wells Fargo has always had a knack for delivering superior returns on its assets, and I think it may be the case again.

Investors should also take into account the caliber of the current CEO of the company, Charles Scharf. While I’m certainly not excited that Wells Fargo has had three CEOs in just over three years, Scharf seems like the right fit for the job. Before taking the reins of Wells Fargo, he was CEO of the payment processing giant Visa between 2012 and 2016. During this period, Visa’s earnings per share doubled.

Finally, consider the Wells Fargo valuation. Currently, investors can buy into one of the oldest and most successful central banks for only 64% of its book value, which is the cheapest price / book valuation since March 2009. Keep in mind that Wells Fargo remains well capitalized and looks poised for whatever the pandemic throws at it. For a bank valued between 20% and 80% above book value for much of the 2010s, and more than double its book value between 1998 and 2008, I’m inclined to believe that a return to historical standards is to come.

Patient Investors at Wells Fargo should be generously rewarded.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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Can’t qualify for a HELOC? Fintechs will buy a stake in your home – Boston Herald http://pharmasonline.net/cant-qualify-for-a-heloc-fintechs-will-buy-a-stake-in-your-home-boston-herald/ http://pharmasonline.net/cant-qualify-for-a-heloc-fintechs-will-buy-a-stake-in-your-home-boston-herald/#respond Thu, 11 Mar 2021 06:18:52 +0000 http://pharmasonline.net/cant-qualify-for-a-heloc-fintechs-will-buy-a-stake-in-your-home-boston-herald/

A new generation of fintech companies is offering American homeowners a different way to leverage their home equity: If you’re sitting on a pile, these investors will buy part of your home.

The condominium arrangement is not cheap, but it presents an alternative to workers on leave or laid off who are no longer eligible for home equity loans or cash refinances.

You get the money now, and your new co-owner is participating in the rise – or perhaps the fall – in the value of your home when you sell it.

“This is a real risk-sharing product,” says Eoin Matthews, co-founder of Point, one of the real estate investors.

Other players in this new niche include Noah, Hometap and Unison. Newcomers are rooted in a financial reality that has emerged over the past decade: While many American homeowners have seen their real estate wealth grow, turning that wealth into cash isn’t always easy.

“Most Americans are rich in assets and sensitive to cash flow,” says Noah founder Sahil Gupta.

U.S. homeowners held a record $ 18.7 trillion in home equity at the end of 2019, according to the Federal Reserve.

According to ATTOM Data Solutions, 14.5 million homes in the United States are “equity rich,” which means home-backed loans represent less than half of the market value of properties.

An enviable situation for owners, but accessing this wealth is not easy, especially for the self-employed or those with unequal income.

“When they want to get a bank loan or a home equity loan, it becomes difficult,” Gupta explains.

Home equity investors generally follow the same scenario. First of all, you will need a lot of equity in your home. Point requires 30% or more, while Noah requires at least 25%. So if your home is worth $ 400,000, your mortgage balance might not exceed $ 280,000 to $ 300,000.

You will also need to live in a place where companies do business. Point purchases shares in parts of California, Washington State, Oregon, Colorado, New Jersey, and other states. Noah is in California, Utah, Washington, Colorado, and Oregon.

Hometap operates in California, Florida, Maryland, Massachusetts, New York, North Carolina, Oregon and Virginia.

Bad credit is usually not a barrier. Point requires a credit score of only 500 – although it seems unlikely that a homeowner sitting on a cache of equity in their home would have such a low score.

Point and Noah will both write checks for amounts ranging from $ 35,000 to $ 350,000.

This concept has become popular in the fintech world. Point investors include Silicon Valley venture capitalist Andreessen Horowitz and former Citigroup chief executive Vikram Pandit.

These home equity investments are not loans, so there is no monthly payment. Instead, your new partner gets a claim on the appreciation of your home, an obligation that matures when you sell.

Point offers a scenario based on a $ 50,000 investment in a $ 500,000 house. In this example, Point sets what he calls a “risk-adjusted home value” of $ 425,000, and he keeps 20% of any appreciation above that number.

Suppose the owner sells in five years and the house has appreciated to $ 608,300. This is an increase above Point’s value of $ 183,300, so the owner gives Point 20% of that amount, or roughly $ 36,700.

The owner would repay Point the original loan of $ 50,000, plus a portion of the increase in the value of the house for a total gain of $ 86,700. This equates to an annual percentage of over 12%. In other words, it is not cheap money.

In this example, the numbers break down like this:

– Home value: $ 500,000

– Present value of points: $ 425,000

– Sale price five years later: $ 608,300

– Appreciation: $ 183,300

– 20% reduction in points: $ 36,600

– Effective interest rate: 12.1%

If a home’s price skyrockets, Point’s return is capped between 15% and 20%, Matthews says.

“It must be better than a credit card,” he says.

In contrast, home equity line of credit rates fell to 4.25%.

If the price of the home dips beyond the present value of the business, the owner will pay back one point less than the initial investment.

Matthews says Point typically takes 25% to 35% of a home’s appreciation. This number will vary depending on factors such as the owner’s equity in the home, the owner’s credit history, and the property’s appreciation potential.

There is also an upfront fee. Homeowners pay a fee of 3% of the real estate investment, plus appraisal fees and other closing costs.

Point has completed several thousand transactions and their typical client obtains an investment of $ 85,000. After the charges, the owner receives a check for about $ 81,000, Matthews says.

Joe Zeibert, Managing Director of Nomis Solutions, describes the concept of home equity investing as “super attractive”. For homeowners, however, there is an obvious downside.

“You absolutely give up all potential,” says Zeibert. “If you are going to be in this house for 20 years you should know that you are giving a lot of your appreciation. “

Real estate investors are seeing their product gain in appeal during the coronavirus pandemic. Fearing a recession, lenders are wary of home equity lines of credit and cash refinances, two traditional ways for equity-rich homeowners to tap into their real estate wealth.

One of the real estate investors, Unison, said he has “temporarily suspended” offers to homeowners as the coronavirus disrupts housing markets. Point has also retreated, although Matthews says the business is already in the process of restarting.

“We’ve cut back a lot,” he says, “but we’re still funding some clients. “

He predicts that Point will return to normal trading pace by the end of June.


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How parents steal their children as adults http://pharmasonline.net/how-parents-steal-their-children-as-adults/ http://pharmasonline.net/how-parents-steal-their-children-as-adults/#respond Thu, 11 Mar 2021 06:18:51 +0000 http://pharmasonline.net/how-parents-steal-their-children-as-adults/

Today, many of the students she works with are immigrants or first generation students.

“Reading the scandal, I feel for these parents, I think so,” she said. But “the first generation students who arrive here are discovering how to navigate an education system that was not always designed for them,” she said. “It changes the course of their lives and that of their families. ”

Cathy Tran, 22, a final year student at the University of Pennsylvania, is the daughter of people who immigrated from Vietnam and did not attend college. “They give me a lot of emotional support, but they haven’t really been able to tell me what I should be doing, like the next steps,” she said.

Finding your way to college has had some benefits, Ms. Tran said. “I actually think I have a sense of independence and confidence in myself in a way that some of my friends whose parents went to college might not have,” she said. . “I had friends who couldn’t even do laundry. I guess in a way I feel like I was forced to be an adult much earlier.

Learning to problem solve, take risks and overcome frustration are essential life skills, many child development experts say, and if parents don’t let their children fail, children won’t learn them. not. When a 3-year-old drops a dish and breaks it, she’ll probably try not to drop it next time. When a 20-year-old sleeps during a test, they probably won’t forget to set their alarm clock again.

Snow removal has gone so far, they say, that many young people are in crisis, lack these problem-solving skills, and experience record anxiety levels. There are now classes to teach children to practice chess, on university campuses throughout the country and even for preschoolers.

Many snowplow parents know this is problematic too. But because of privilege, peer pressure, or anxiety about their children’s future, they do it anyway.


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Consumers focus on financial health http://pharmasonline.net/consumers-focus-on-financial-health/ http://pharmasonline.net/consumers-focus-on-financial-health/#respond Thu, 11 Mar 2021 06:18:51 +0000 http://pharmasonline.net/consumers-focus-on-financial-health/

Select’s editorial team works independently to review financial products and write articles that our readers will find useful. We may receive a commission when you click on product links from our affiliate partners.

About six months after the onset of the coronavirus pandemic, young American consumers are paying more attention than ever to their financial well-being.

According to the latest Amex Trendex, a monthly trend report from American Express, more than half (64%) of millennials are looking for ways to improve their credit rating and more than a quarter (30%) say they are more likely to check their credit rating since the start of the pandemic. The online survey conducted by Morning Consult interviewed 2,000 adult consumers (18 and over) in the United States between August 18 and 20, 2020. Respondents had a family income of at least $ 70,000.

“The survey shows that now more than ever, consumers are focusing on their overall financial health,” said Kunal Madhok, vice president of US consumer loans at American Express. CNBC Select. “This is exactly why we recently launched To score goals, to provide consumers with a personalized playbook to help them move closer to their financial goals. “

Credit scores range from 300 (very bad) to 850 (excellent), and although they may appear to be an arbitrary number, their 3-digit composition has a lot to do with qualifying for the best credit cards and the lowest interest rates on loans or mortgages.

If you are concerned about a bad credit score, the first step is to find out what makes it weak. Free tools like Score Goals, which are part of Amex My credit guide, allow users to set their credit score as a goal. It then provides personalized recommendations, such as paying off a specific amount of debt, to help them reach their target score over a suggested time period: six, 12, 18, or 24 months. The Amex functionality is available to everyone, not just Amex cardholders.

Learn more: American Express Launches New Score Goals Tool To Help Users Improve Their Credit Score, For Free

How to Instantly Increase Your Credit Score

While paying your credit card bills on time and reducing your balances are two ways to increase your credit score, you can probably see a quick result by also using Experience boost. The free feature provided by Experian, one of the three major credit bureaus, allows you to get credit for utilities on time (gas, electricity, water), telecommunications (mobile phone) and Netflix invoices that you are already paying for. According to website, Experian Boost users see an average increase of at least 10 points in their credit score.

Learn more: Here’s how Experian Boost can help you boost your credit score for free

As you work to improve your credit score, make a habit of following it as well. Credit monitoring can help you do this by notifying you of changes to your credit reports in real time. Some improved services are accompanied by a Cost, but they offer the most extensive security features.

For example, IdentityForce® monitors your information on a variety of sites and services, including the dark web, court records, and even social media. It checks to see if your accounts on sites like Facebook, Instagram, and Twitter have inappropriate activity that may be perceived as profane or discriminatory.

IdentityForce® UltraSecure and UltraSecure + Credit

On the secure Identity Force site

  • Cost

    For a limited time, get 3 months free on all annual plans – it’s $ 17.99 / month or $ 160.99 / year for UltraSecure + Credit and $ 9.99 / month or $ 88.99 / year for UltraSecure – offer ends 06/18/2021

  • Supervised credit bureaus

    Experian, Equifax and TransUnion

  • Credit rating model used

  • Dark web analysis

  • Identity assurance

Conditions apply. To learn more about IdentityForce®, visit their website or call 855-979-1118.

For a CNBC Select tops the table free service, consult Capital One’s CreditWise®.

CreditWise is open to anyone, even if you are not a Capital One customer, and has its own credit score simulation tool. And while it might not offer as in-depth monitoring as IdentityForce, CreditWise sets itself apart by offering dark web analysis and social security number tracking (unlike other free services).

Capital One’s CreditWise®

The information on CreditWise has been independently collected by CNBC and has not been reviewed or provided by the company prior to posting.

  • Cost

  • Supervised credit bureaus

  • Credit rating model used

  • Dark web analysis

  • Identity assurance

At the end of the line

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.


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