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How To Get Your Token Listed In An Exchange

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The exchange market is one of the most integral aspects of cryptocurrency. People use exchanges to trade all their coins and buy other cryptocurrencies if they don’t want to hold on to the ones they have. However, getting listed in an exchange presents a multitude of problems. The rules and requirements vary depending on the size of the exchange and its policies. This article will share how to get your token listed in an exchange.

  • Understand The Different Types Of Tokens

When you are about to get your token listed in an exchange, the most important thing is understanding the different types of tokens, particularly security and utility tokens. 

Security tokens are cryptographic assets with a tangible value and can be used for investing or trading on any exchange with an appropriate license. They can also be used to transfer ownership of assets such as precious metals, real estate, and other physical goods. Security tokens are the safest type of tokens because they have a physical value that can be verified by adjusting storage or possession.

The second type is utility tokens. These digital currency tokens act more like cryptocurrencies and provide a utility function to their users. For example, certain social media networks or games may offer their utility tokens as in-game rewards and incentives. Utility tokens are easier to get listed on an exchange since they do not have a physical value. Most exchanges will accept them without much questioning. 

Understanding the difference between the two types of tokens can help give a clear picture of what happens in token sales and exchange listings.

  • Research The Exchange Requirements

No matter what type of token you try to sell, you must first research the different requirements and guidelines set by each exchange. Some exchanges have a simple process for listing tokens, while others may be more complicated or even impossible to get listed on. This depends on their compliance policies, fees, and other restrictions that they have put in place. 

It’s important to research and understand these policies before you try to get listed on any exchange. Common requirements include:

  • Filling out an application
  • Submitting your token details
  • Providing verification documents
  • Paying any fees required by the exchange

By doing this research, you can ensure that you meet the requirements before applying.

  • Prepare Your Token Details And Documentation

After researching about the perfect exchange to get your token listed, it’s essential to properly prepare your token details and documentation for a successful listing. First, you will want to ensure your token is appropriately placed into categories that accurately describe its purpose. Additionally, you should ensure you have the source code since some exchanges may request this. 

You should also review existing documents outlining their requirements and provide information such as the website URL, wallet address, contact person info, whitepaper, logos, etc. Finally, confirm that your documents are correctly formatted in the correct file types when requested (usually PDFs). 

By preparing your documents before the actual listing, you can ascertain that the succeeding processes will flow smoothly.

  • Submit Your Token For Listing

Once you have completed the above steps, it’s time to submit your token for listing on the best exchange. This process usually involves filling out an application form through their website or directly contacting them through email or phone. 

Make sure that you are fully prepared before submitting your request. Any missing information may result in a delayed listing and could also negatively impact your credibility in getting listed on other exchanges.

  • Pay The Listing Fee

With the application form submitted, you may also need to pay a listing fee before accepting your token. This is usually done through a payment platform such as PayPal or Stripe, and the fees can vary depending on the exchange and their requirements. 

Some exchanges offer discounts for larger listings or early investors who choose to get listed with them. It’s essential to review the fees and terms of each exchange before submitting your token for listing.

  • Monitor The Listing Process

Monitoring your token listing process is vital, as it’s often the difference between a successful token launch and one that falls short. From the moment you submit your token for listing to an exchange, it’s essential to keep up with any updates or notifications in real time. After all, if there are issues with the listing or something that needs to be improved before launch, you’ll want to fix them as quickly as possible to ensure success. 

Moreover, being aware of potential delays or changes can also help you stay ahead of rival tokens lining up alongside yours. The best way to guarantee a successful business and smooth launch is by monitoring the listing process from start to finish.

 

Many different gold and silver coins on the table with cash. Crypto coins. Mining. halving Bitcoin.

Conclusion

Getting your token listed on an exchange is vital in the token launch process. You will increase your chances of success by researching and preparing your information, documents, and coding before reaching out to exchanges. Additionally, by monitoring your submission process and staying up-to-date with any changes or delays along the way, you will be able to ensure a smooth and successful launch. If you follow these tips, you can be sure to get your token listed in an exchange and have a successful token launch!

 

 

 

ISAs, how to choose the right one?

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One of the most popular forms of investment worldwide still being investing in stocks and shares.
The reason lies in the fact that stocks generally provide a good return on investment over the long term. Of course, it is always recommended to consult a professional to clarify your own needs and the time you want to get a cash back.

 

That is why ISAs fit good for the needs of a great variety of people. But, first of all, it is necessary to understand what an ISA is and how it works. An individual savings account (ISA) allows to accumulate money in a savings account with tax-free management – and this one is probably the main reason about why it is so widely spread. As a matter of fact, it is allowed to withdraw funds from both cash and stocks and shares ISAs without incurring a penalty. However, it should be underlined that while investing in stocks and shares there’s no guarantee of positive results and economic growth, as the market is volatile, and the investor may also receive less than he had previously invested. 

But how it is possible to find the ISA which best suit certain needs and goals? Foremost, we have to know them very well.

What is an ISA

As said, an ISA is an Individual Savings Account. It is essentially a savings or investment account on which you can never pay taxes – but with a limit about the amounts that can be charged in each accounts every year. For example, in the 2022 to 2023 tax year, it is possible to save a maximum of £ 20,000 in ISAs.


Then there is a distinction between Adults or Junior ISAs: the second one will allow a saving of £ 9,000 for all under 18. Following the UK government, ISAS are divided onto 4 types, depending on your needs and risk profile. That is how you can find the one that really fits for you:

– Cash ISAs;

– Stocks and Shares ISAs;

– Innovative Finance ISAs;

– Lifetime ISAs;

If you are looking for the best ISA rates for young people or the best cash isa rates for over 60s, it is strongly recommended to rely exclusively on experts in the field (brokers, banks, companies) to be able to get appropriate advice regarding your needs and which ISA to adopt among those made available by the British government.

 

Only through a correct analysis and the best evaluation of the costs and benefits associated with an opening of an ISA will it be possible to consequently evaluate what can be the best. It is in fact quite evident that an elderly person who can make the decision to buy an ISA can certainly have quite different motivations than a young worker who chooses to secure one.

Who can open an ISA

It is possible to get one if you are 16 years old or over for a cash ISA, 18 or over for a stocks and shares or innovative finance ISA, 18 or over but under 40 for a Lifetime ISA. It is strictly appropriate to remember that you must be resident in the UK, a Crown servant or their spouse or civil partner if you do not live in the UK. You cannot hold an ISA with or on behalf of someone else.

 

You can get a Junior ISA for children under 18, for example if you want to give one to your grandson a great gift for Christmas, and that is how it works in England. On the other hand, in Scotland applications need to be made to the Office of the Public Guardian in Scotland; and in Northern Ireland, applications need to be made to the Office of Care and Protection.

What Are The Best Stocks To Buy Now?

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best stocks to buy now

As an investor, one of the trickiest things to figure out is which stocks to buy and when. The holiday season and post-midterm climate alter the landscape a bit. Additionally, many companies are examining their year-end figures, with some exceeding recent expectations and others falling notably short. As a result, it’s hard to choose the right investments. If you’re trying to figure it out, here are some of the best stocks to buy now.

Best Stocks to Buy Now

Energy Stocks

Energy stocks are a potentially good choice as 2022 begins to come to a close. Oil profits are on the rise, and the midterms – which resulted in a split Congress – means new energy regulations are unlikely, which can help the broader energy industry succeed in the coming years.

Look at stocks in the oil, gas, and electricity markets. By doing some research, you can determine which options make sense based on your investment preferences.

Pharmaceutical Stocks

While many pharmaceutical stocks for companies that produced COVID-19 vaccines have slipped recently, they have ample potential for ongoing growth. As a result, looking at investments in this category could let you buy the dip.

Bank and Financial Stocks

Banks and financial companies are undoubtedly impacted by the current economic conditions, including rising interest rates and a potential recession. However, many major institutions are likely to weather the storm. As a result, you may have a chance to buy them for less, putting you in a good position if you’re looking to hold these investments and let them grow as economic conditions normalize at some point in the future.

How to Choose the Right Stocks for Your Portfolio

Ultimately, the stock categories above are only recommendations, and nothing is guaranteed. As a result, you should research any companies you’re considering and make sure they align with your investment strategy.

For example, short-term investors may need to approach things differently than long-term investors, as their goals are different. Similarly, risk-averse investors may have preferences that don’t make sense for those who are more growth-oriented.

In the end, you should never purchase any stocks based on a recommendation – regardless of the source – if they don’t make sense for you. Instead, let your strategy be your guide, ensuring your portfolio aligns with your needs and preferences.

Are there any other investments that you think should be on our “best stocks to buy now” list? Are you wary of purchasing stocks due to fluctuating economic conditions? Is a possible recession or ongoing inflation altering your investment strategy? Share your thoughts in the comments below.

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5 Common Investing Mistakes

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Many people wonder, “What are common mistakes people make when investing?” Regretfully, missteps happen often, and some of them are incredibly costly. Fortunately, by knowing what they are, it’s easier to avoid them. Let’s look at the answer to the question,”What are common mistakes people make when investing?” By answering this question, we ensure you don’t make them.

5 Common Investing Mistakes

1. Failing to Diversify

Putting all of your eggs in one basket is incredibly risky when you’re investing. If you focus solely on a single company – or even a single sector – you may see the value of your portfolio tumble when specific market conditions occur.

Often, a lack of diversification is more likely to be an issue with new investors who are just getting some footing with their portfolios. If you don’t have a lot of money to commit, you may be limited to just a few investments initially. As a result, diversification is inherently harder to capture, especially if you’re buying individual company stocks.

If you want to boost your level of diversification quickly, consider mutual funds and exchange-traded funds (ETFs) instead. Unlike individual stocks or bonds, mutual funds and ETFs actually represent a range of investments that are associated with the fund. As a result, there’s an inherent degree of diversification built into the investment.

When you explore mutual funds and ETFs, you’ll find a wide variety of options. Index funds aim to include assets that represent the broader associated market, so they can be excellent places to start. However, you’ll also find mutual funds and ETFs that target specific sectors or groups of investments that align with a single concept, which may or may not be industry-limited.

Consider starting with a few different mutual funds or ETFs to get the ball rolling. Then, you can examine other investment options, like investing in the HALO IPO, after your diversified portfolio is a bit established.

2. Being Glued to Market News

Generally, it’s wise to remain informed about the market when you’re investing. Similarly, you’ll want to research any potential investment before moving forward, allowing you to determine if it aligns with your strategy and risk tolerance.

However, constantly monitoring the markets isn’t typically a good idea for the majority of investors. It’s easy to get swept up in the fervor, which may prompt you to make decisions you normally wouldn’t in regard to your investments.

Plus, not all market news is entirely unbiased. For example, some media personalities operating in this space may have an incentive to push an investment if they’re heavily involved with a particular stock. Even if they aren’t aiming for personal gain, that attachment may skew their view.

Instead, look to limit your consumption of market news, going with enough viewing or reading to stay informed but not so much as to track the market in real time. Additionally, if you learn about an investment with potential or are wondering if conditions make shifting away from an investment wise, do some additional research. Focus on unbiased sources that use a neutral approach to news delivery, as those are less likely to impact you emotionally, allowing you to make smarter decisions.

Similarly, resist the urge to constantly check the value of your portfolio. Market fluctuations are common, so the value is going to rise and fall regularly. What matters is sustained growth. In most cases, investing is a marathon, not a sprint, so keep an extended time horizon in mind and focus on the bigger picture.

3. Relying on Social Media for Investment Advice

While social media platforms can carry news from legitimate sources, it’s critical to be wary of investment advice coming from accounts not associated with unbiased information. First, social media accounts don’t know about your financial situation, so any recommendations aren’t targeted to your circumstances. That alone should give you pause.

Second, social media influencers may be compensated by companies to promote specific investments, either by directly recommending an asset or indirectly by increasing the visibility of an asset or company. While social media influencers are supposed to disclose when they’re compensated, it doesn’t always happen. Even if it does, you have to notice the disclosure, and it may get buried within the post depending on how it’s presented.

As with all investment advice, you shouldn’t move forward without digging into the asset or company yourself. Assess its viability and decide if it aligns with your investment strategy. Also, analyze the amount of risk, as an endorsement doesn’t mean it’s a safe bet.

4. Focusing on Trends When Choosing Investments

In some cases, unique conditions occur that bring a particular investment to everyone’s attention. The GameStop stock rise in January 2022 is a prime example, and there are several cryptocurrencies that have seen meteoric rises over the short term. However, these upticks may not last, particularly since the buying activity can shift to a sell-off relatively quickly.

What’s important to remember is that a trend isn’t necessarily an indication that an investment has long-term merit. The GameStop stock rise wasn’t about the value of GameStop; it was a movement designed to show the power of small investors, allowing them to impact massive institutions. Essentially, it was about making a statement.

With cryptocurrency, trends can occur for a variety of reasons. While some may be based on the increasing validity of a particular coin, others may be scams. For example, pumping and dumping isn’t exceedingly rare within the altcoin landscape, and if the news travels through the right channels, investors of all kinds can get caught in the wave.

Often, trends create a fear of missing out, essentially invoking an emotional response in investors who worry they’ll fail to capitalize on these rapid upticks. As a result, it’s crucial to take a breath and do some research. Determine if the trend genuinely represents long-term potential or if it’s spurred by something else. Additionally, assess whether the investment fits with your overall strategy and risk tolerance. Ultimately, if you have doubts, it’s usually best to focus your investing on other assets.

5. Trying to Time the Market

Generally speaking, timing the market doesn’t work for long-term investors. First, getting the timing exactly right is almost impossible. No one knows precisely what an individual stock or broader market is going to do from one day to the next, so you can’t predict the precise moments prices will hit their lowest point.

Second, trying to time the market can lead to inaction. You’re essentially holding money outside of the market, waiting for the perfect moment. Even if it’s in a high-yield savings account, you’re potentially missing out on much better returns.

Bonus Tip: Invest What You Can When You Can

In many cases, your best bet is to invest what you can when you can. Whether that means committing a lump sum all at once – such as turning your tax return into a source of funds for investing right when you receive it – or using a dollar-cost averaging approach where you invest using a specific amount from every paycheck, you’re creating opportunities for long-term growth.

Plus, moving forward ensures that you don’t wait so long that you never invest. Even if some of your investments are made when the market is high, it’s important to remember that the markets generally trend upward when you look at the activity over years and decades instead of weeks or months. As a result, occasionally buying at a high point today doesn’t mean you don’t have growth potential, so keep that in mind.

Can you think of any other common investing mistakes people make? Did you make any of the missteps above and want to tell others about the experience? Do you have any advice for new investors? Share your thoughts in the comments below.

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What to Keep in Mind As You Choose a Shipping Carrier for Your Business

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Settling for a carrier company to aid you in shipping products can be a tough decision that may have lasting implications. With your goods at stake, taking your time to evaluate and analyze different carrier companies before settling for one is advisable. Here is a guide to assist you in choosing a shipping carrier for your business.

Costs

As a business owner, you always aim to save some finances in your operations. This may trigger the temptation of settling for a cheaper shipping carrier, which may not be the best option. Remember, cheap carrier companies may not offer quality services to your satisfaction. It’s recommended to compare the company charges with the services offered. Aim at settling for a company that offers quality services at an affordable price.

Capacity

Different shipping companies may opt to deal with specific container sizes, affecting the number of goods you can ship. For instance, a 40ft container can accommodate approximately 8,000 shoe boxes, while a standard TEU container can accommodate 3,500 shoe boxes. Always make sure the carrier company you choose can handle your capacity.

Tracking Services

As a client, you would love to monitor the shipping progress of your goods. Hiring a shipping company that offers tracking services will do the trick. With tracking services, you can estimate the remaining delivery time and notice any delays along the way. You will go the extra mile to ensure your products arrive on time.

Types of Products

Before settling for a shipping carrier, check the type of products the company can ship. Some companies may specialize in perishable shipping products, while others specialize in non-perishable products. Before getting into any contract with the shipping carrier, enquire about the type of products that can be shipped.

Reputation

The carrier’s reputation will give you a snippet of whether the company will suit your business needs or not. Before settling on a shipping company, go through reviews of previous clients. Ensure you settle for a carrier with positive reviews. If possible, hire a carrier company that hasn’t formulated any partnerships, as 70% of all business partnerships fail.

Safety

As a business owner, your goods arriving in bad condition is a dreading nightmare. Hiring a carrier company with great safety ratings is one way of ensuring your goods arrive safely. Besides this, you can enquire about the company’s safety protocols before getting into any agreements.

Reliability

Your business growth depends on your reliability in offering quality goods and services to clients. To maintain your business reliability, you need to choose a reliable carrier. Check the carrier company’s LOS (level of service) rates. A company with high LOS rates is more reliable than a company with lower LOS rates.

Often or not, a shipping company may attract you with lower rates to avoid spending a lot on your finances. Still, you will suffer in the long run due to unreliability and late deliveries. In addition, choose a carrier company that has transparent communication regarding the shipment of your goods.

Stability and Experience

How long has the company been in the marketplace? Always ask yourself this before hiring any shipping company. Dealing with a company that has been in the industry for a long time assures you your goods will be handled professionally compared to dealing with a starting company.

An experienced company can also handle light and heavy goods. For instance, plastic pallets are light and can accommodate a max load of 1,500 lbs. wooden pallets can accommodate a max load of more than 3,000 lbs. With this, you’ll have peace of mind that your goods will arrive safely.

Customer Service

Pay keen attention to the customer service offered by the shipping company. Work with a company that has responsive customer service. You can ascertain this by checking the company’s response time in responding to your queries, or listen to their tone of voice when asking them questions.

Take your time and vet potential shipping companies before deciding where to channel your finances. For the best results, choose a reputable company.

Is It Difficult to Cash Out A 401K When You Quit A Job?

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what happens to a 401K when you quit

When you quit a job, you typically have to decide the fate of your 401k. In some cases, the idea of cashing the account out might be particularly attractive. However, if you’ve never had to do it before, you might worry that the process is complex. If you’re wondering, “Is it difficult to cash out a 401k when you quit a job?” here’s what you need to know.

What Happens to a 401K When You Quit?

Precisely what happens to your 401k when you quit a job can vary depending on rules relating to the account. In some cases, your investments can stay right where they are, and you can tap them when you reach retirement age without much difficulty or financial penalties.

However, rolling over the 401k into your new employer’s plan or an IRA is also an option. For accounts that don’t allow the money to stay with your last employer, then a rollover might be more of a necessity, suggesting you don’t cash out.

Cashing out is technically on the table, too. You’d receive a lump sum distribution based on the account balance or the amount that’s vested. While this may seem wise, if you haven’t reached retirement age, it will trigger financial penalties along with taxes.

Is It Difficult to Cash Out a 401K When You Quit a Job?

Generally speaking, it isn’t difficult to cash out a 401k when you quit a job. Once you formally leave the position, you typically have 60 days to take certain actions relating to the money, including requesting a cash-out. If you go that route, you’ll usually have to formalize your request in writing by completing some forms, and that’s typically the most difficult step.

However, withdrawing the money can trigger early withdrawal penalties. Along with the 10 percent penalty, you’ll be taxed on the amount you take out, which can potentially reduce the value of the withdrawal by 10 to 37 percent, depending on your tax bracket.

How to Cash Out a 401K After Quitting a Job

Cashing out an eligible 401k is pretty simple. Typically, you’ll need to contact the plan administrator and complete a few forms. Once that’s done, the administrator can usually send you a check for the value of the account.

Exactly how long it takes to receive the check can vary, though most will provide the funds within 60 days of the request processing. If you have questions about the timeline, you can request an estimate from the administrator.

Did you know what happens to a 401k when you quit a job? Do you think the process for cashing out is reasonably easy? If you’ve ever left a job, did you decide to cash out your 401k, or did you go another direction? Share your thoughts in the comments below.

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Investment Risks in the World Today

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The world is crazy right now. The war with Russia and Ukraine has created investment risks and opportunities with commodities, specifically. Inflation is also an issue. What do you do with all of these moving parts in the global economy?

Gold

Gold has only gone up since the war began, up over $2,000 for the first time since 2020. The reason being is that gold is a store of value and is often seen as a safe asset during times of uncertainty, like war, inflation, or a pandemic.

Gold isn’t the only asset that’s used in times of uncertainty. Cash, bonds, and other precious metals have also seen a massive inflow lately.

Crypto

Cryptocurrencies have also seen a run-up in recent weeks, for two reasons. One, some people do see cryptocurrencies as a store of value like gold. And two, cryptocurrencies have played a role in this war. Because Russia has been cut off, financially, from the rest of the world, they’ve used crypto to finance operations. Ukraine has done the same, but for the reason of being able to raise money from different channels.

Oil

The price of oil has been on a roller coaster since the war began. Russia supplies a lot of energy to the world. It supplies the U.S. with just 3% of oil, but it supplies Europe with most of what they use. That said, the price of oil went up very fast to about $125/barrel because the US and other countries blocked them off to further disrupt their finances.

It’s come back down since then thanks to OPEC+. They pledged to increase production to make up for the loss in supply.

Inflation

Inflation is off the charts right now. The most recent reading came in at 7.9%. There are quite a few things that are seeing the effects of it. Food is getting more expensive. Gas, obviously, due to supply constraints and inflation is getting more expensive. Property is also getting more expensive. Interest rates are going up as well. My wife and I refinanced late last year and locked our rate in at 3%. The most recent reading came in at 4.5%.

The FED is going to make some moves as well. Because of the war with Russia and Ukraine, they will take a more measured and conservative approach, so it’s possible that inflation is a problem for longer because the FED won’t hike rates as quickly as they may have previously intended.

Commodities

There are some other commodities, besides gold and other precious metals, that are feeling a pinch due to the war between Russia and Ukraine. Wheat is the biggest example of this because between Russia and Ukraine, they produce and ship a third of the world’s wheat.

Unintended consequences

Even though the war is between two countries, it’s affecting everything (though differently than how it’s affecting Russia and Ukraine). There are logistical problems that are delaying shipments of things. The air space above the scuffle is off-limits, so flights around the area are taking longer than they previously would have. Longer flights = more fuel and reduced volume on flights = increased costs.

There are a lot of investment risks and opportunities due to the moving parts in the world right now and the market will continue to be volatile until things settle down. If you have time to ride out some ugly markets, stick to your plan. If you’re in retirement or close to retirement, reducing your risk might not be a bad idea.

Related reading:

How to Invest in Gold: 5 Ways to Get Started

How Inflation is Changing Our Lives and Not for the Better

Weekly Wrap: Crypto Aids Ukraine Putin Aids Inflation and Russian Investments Tank

Safeguarding Your Future: A Comprehensive Review Of Augusta Precious Metals

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Finance Lessons Learned from the Pandemic

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The Covid-19 pandemic changed life for two years and there are definitely still elements of what life was in the world today. No doubt there were some terrible things that happened. People lost their lives and their jobs. But there were also positives that came out of it. We’re going to highlight the lesson we can learn from this pandemic, particularly some personal finance lessons we can learn.

Working from home

This new type of work does not apply to everyone and I don’t like leaving people out, but this needs to be talked about. Working from home and articles about it took over during the pandemic and continue to be discussed.

Working from home, at least from some of those articles and studies, appears to be a net positive for employees and employers. Let time commuting, less overhead costs, more productivity thanks to no commute, increased job satisfaction, and improved work-life balance.

Thanks to the work-from-home setup, people who were able to do that moved out of the city or rented an Airbnb for an extended amount of time. In either case, those people were, likely, able to reduce their housing costs by moving to the suburbs or giving themself a little vacation/change of scenery.

Savings rate

A lot of people saved money during the pandemic thanks to stimulus payments. In April of 2020, the personal savings rate for Americans was 33%. In March of 2021, the personal savings rate for Americans was 26.6%.

The savings rate has fallen since then but is still above 12% which is higher than it was before the pandemic (less than 10%).

Stimulus payments

According to the National Bureau of Economic Research (NBER), most Americans either saved or paid down debt with the majority of their stimulus payments. 40% of the stimulus payment was spent, 30% was saved and another 30% was used to pay down debt.

Personal finance lessons

I think there were a lot of personal finance lessons that can be learned from the pandemic. Here’s a list of them below:

People saved more money

The future was very uncertain so people were more conservative with their spending and less conservative with their savings. That mindset shouldn’t change. The future, in principle, is uncertain. We do not know what tomorrow holds, so saving for a rainy day/goals/retirement is very important.

You don’t need to spend money to have fun

At the very beginning of the pandemic, you couldn’t go anywhere. Quarantine and lockdown orders came in right away. Instead of getting together in person, people utilized Facetime, phone calls, and Zoom. I, personally, had group Zooms with family members where we played and had conversations like we would if we were in person.

Diversification is important

Early in the pandemic, the market tanked. We lost over 30% in six weeks. Granted, it came right back up not long after, but that might not always be the case. If you don’t have time to ride out the ebbs and flows of the market, it’s important you get your asset allocation right. Talk with your adviser to make sure your investment matches your time horizon and risk tolerance.

Get rid of debt

You never know when your job and your ability to earn can be taken from you. Some people lost their jobs, some people were furloughed, and some people just weren’t able to go to work. If you don’t have an income, the only other part of the balance sheet you can affect is your expenses. Get rid of your debt. That’ll help you reduce your expenses in case that happens (you can also save more).

Protect your loved ones

Get life insurance. A lot of people passed away during the pandemic. If you contribute income to your household, you need to make sure you financially protect the people that rely on your income.

Related reading:

5 Personal Finance Tips from the Pandemic

How to Regain Control of Your Finances Amid the Pandemic

How to Save Money on Your Post Pandemic Vacation

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

What To Do With Your Old 401k

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When you leave your job and you have a 401k, there are a few things you can do with it. You can leave it there, you can cash it out, you can roll it into an IRA, or you can roll it into a retirement plan with your new employer. So what should you do with your old 401k?

Theoretically, you have four options.

Withdrawing your funds

If you are under the age of 59 ½ and you withdraw the money, you’ll have to pay a tax penalty on it. UNLESS, you meet some of the exceptions: medical expenses, your first, primary residence (up to $10,000), health insurance premiums while unemployed, distributions from an inherited IRA, pay off an IRS tax levy, higher education expenses, as well as a few others.

If you don’t meet any of those criteria and you’re under 59 ½, you’ll have to pay that penalty. It’s not worth it. UNLESS you’re using that money to pay off a credit card. Credit card interest rates are usually well above 10%. So if you’re saving yourself from paying a 27% interest rate, theoretically, you’re making a 17% return on your money (27–10=17). But this calculation doesn’t account for taxes so you might come out even, or behind.

95% of the time, it makes the most sense to pursue other options.

Keep it where it is

Some people will leave their old 401k with their previous employer. I think a lot of that has to do with laziness, but it could be a good, rational decision as well. The primary factor has to do with cost. What are the expenses of the 401k? Typically, if it’s a large employer and/or a large plan with a lot of assets, the fees are going to be low.

That might be a good reason to leave it. The plan might also have good investment options. If the fees are reasonable, or at least average, then the investment options might be reason enough to stay.

Roll it to your new employer

Nine times out of ten, I’ll have people roll their old 401k into their new one. If they’re able to. Some employers don’t allow income transfers. Having everything with one firm makes managing it so much easier.

The only time I don’t think it would be appropriate is if the new firm has high fees, but it’s also important to compare the new fees to the fees of the alternative. That alternative is rolling it into an IRA at a separate firm.

Roll it into an IRA

As an independent financial advisor, this option is best for me, but not typically best for the client. If you take a standard fee for a financial advisor (1.00 %) and compare it to the standard expense paid by a 401k participant. Employers with 2,000 employees pay below 1% and employers with 50 or fewer employees pay 1.25%. Here’s some more info on that.

That might be the case if it’s a small plan. The large plans, however, can have ALL IN fees of around .5%.

As is the case with a lot of things in the finance world, the answer is not black and white. You need to compare and contrast your options and then make a decision. Here are things to consider: cost, investment options, ease of management, and customer service. How do the fees compare? What are the investment options? Do you have everything in one place and is it easy to make changes? Can you get in touch with someone if you have problems/questions?

Related reading:

7 Tips to Get the Most Out of Your 401k v/s Pension

401k Withdrawal Taxes and Penalties

Is your 401k Hurting you or Helping you?

How 401k Fees Impact Your Retirement

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

How to Increase Your Net Worth

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Your net worth is a benchmark for your financial success. Notice that I said financial success and not just success. That was intentional because money doesn’t define your success. Money can afford you freedom, but I believe real success doesn’t involve money. That was free of charge, now let’s talk about how to increase your net worth.

What is net worth?

Net worth is assets minus liabilities. How much wealth do you have after you subtract what you owe versus what you have? It’s typically used to gauge your progress in your financial life. If you have debt, then when you pay it down, your net worth goes up. The same happens when you increase your savings.

How to increase your assets

Honestly, the only way to increase your assets is to save money. At least, that’s where it all starts. The more you save, the more you have to work with.

How do you save money? Decrease your expenses and/or make more money. That’s what it comes down to. Figure out what’s important – in terms of your budget and spending. Everything else that doesn’t fit on that list needs to either be removed or reduced.

Once you have money saved, then you can put it to work. Invest it in securities or assets that have a chance to increase in value. What kinds of things have a chance to increase in value? Stocks, bonds, mutual funds, ETFs, precious metals, real estate, certificates of deposit (CDs), and cryptocurrency/NFTs (though I would tread carefully here).

Growing your assets will help you increase your net worth.

How to decrease your liabilities

Pay down your debts. That’s it. Obviously, it’s more challenging than that. Ideally, what you’d want to do is pay down your debts before you focus on the saving aspect of it. If you have debts with high-interest rates, like credit cards, those should be your first priority.

We’ve gone into detail about the repayment methods before so we’ll only touch on them briefly, but what’s important is decreasing your expenses so you can make larger, more regular payments towards your debts.

The next step is developing a repayment strategy. The two we’ve talked about before are the debt avalanche and the debt snowball. The debt avalanche – you pay the debt with the highest interest rate off first before moving to the next one. The debt snowball – you pay the debt with the smallest balance off before moving on to the next one.

Paying down your debts will really help you increase your net worth.

Is there a net worth number you should hit?

At the end of the day, your net worth number is really a reflection of what you’ve saved for retirement. Ideally, you will not have any debts, including your mortgage. So there’s no math that needs to be done. What are your assets? Primary home, any rental properties, and then your retirement savings, with primary home and retirement savings being the two most common for everyone.

So the question becomes, how much should you save for retirement? Thankfully, we’ve created a guide for you to help answer that question (see below).

Related reading:

How much do I need to save for retirement?

Diving Deep Into Debt

3 ways to responsibly save money

Gig economy financial security

Johnny Depp Net Worth

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com