There has been a sea change in the supply/demand balance in the crude oil market which has surprised even some of the largest players. The change has helped push oil prices to a 7-month high, and prices could continue to climb if the trajectory of the declines continue. In the latest week, inventories began to decline, predicated on lower production and a gap in imports. The number of drilling rigs also continued to drop in the latest week dipping by ten to the lowest level seen in the past 30-years.

Output has been reduced in a number of areas including Canada. The wild fires that spread near the tar sands was a strong catalyst for the lack of recent output. The current reduction in Canadian crude oil output is due not to direct damage from the fires in Alberta, but more of a function of the evacuation of oil workers from Fort McMurray. Oil sands operations may be seriously reduced by the unavailability of staff in the coming days and week. Many employees are without homes and unable to return to the area which will put a significant strain on output. Slightly more than 50% of the oil output produced in Canada is from tar sands.

Unplanned production output has reached a 5-year high according to the Energy Information Administration. It has moved quickly enough for investment bank Goldman Sachs to change their short term outlook on oil prices. They claim that the global has moved from a robust surplus to a deficit in very short order which could continue to drive the price of oil higher. One caveat is that oil prices above 50 per barrel will bring U.S. producers back into the market place. The hydro-fracking producers can move online very quickly, and levels above 50 might entice them to come aboard.

OPEC is the real wildcard when it comes to outages. Since 2012, unplanned crude oil supply disruptions among OPEC producers have accounted for the majority of the outages according to a recent report from the Department of Energy. These outages, which increased annually between 2011 and 2015, and have averaged about 2.7 million barrel a day in 2015. The stoppage of production at the Wafra and Khafji fields in the Neutral Zone straddling Saudi Arabia and Kuwait caused, on average, an additional 0.4 million barrel a day in outages during 2015. With the exception of Iran, the issues underpinning the outages in most of these cases remain largely unresolved.

Demand in the United States has also continue to surprise to the upside. Low gasoline prices have pushed demand at the pump up a robust 5% on a year over year basis. The unofficial driving season begins in the U.S. on Memorial Day which will likely further boost gasoline demand. Demand has recovered after a relatively weak winter which say distillate demand drop more than 15% on a year over year basis. The weather was the main catalyst for the decline in heating oil demand.

In evaluating the fundamentals of oil, the real question for crude oil investors is whether the trajectory of the recent declines will continue pushing inventories lower and back into the 5-year range. If there continues to be unplanned maintenance this is likely to happen as imports stall and U.S. production continues to drop.

Many of the trading platforms out there nowadays offer options to leverage trades. While on the surface it may seem like a no brainer – the decision on whether or not you should actually leverage trades is actually very important and should be given a lot of careful consideration.

“What is Leverage?”

Essentially ‘leverage’ refers to the practice of ‘borrowing’ funds to invest based on the capital that you have already deposited into your account. The exact amount that you’re able to borrow will depend on your current balance as well as the ratio of leverage.

For example, if you have a balance of $1,000 and a leverage ratio of 50:1 then you’ll essentially be able to invest up to $50,000 (since you’re ‘borrowing’ $50 for every $1 that you have).

The reason why leverage has become commonplace in the financial world is that it allows investors to place bigger trades – which is generally a nice benefit to have. That being said, there are risks involved too.

Risks of Leverage

At first glance, leveraging trades may seem like a great idea. After all, you’ll be able to place bigger trades and make more profits – which is definitely going to appeal to any trader. However you need to remember that leverage can cut both ways, and while bigger trades can mean more profits, they can also mean greater losses too.

For example, if you have a balance of $1,000 and you were to make a trade and end up losing 2% then you’d be left with a balance of $980. In short, you would’ve lost $200, which is painful, but not devastating. On the other hand if you’d leveraged your $1,000 balance at 50:1 and made a trade of $50,000 – then losing 2% would mean a loss of $1,000, which is your entire balance.

To put it simply, you could accumulate heavy losses by leveraging your trades if you aren’t careful.

When to Leverage

The most common market on which leverage is employed is the forex market. Because most movements (particularly in short term trades) tend to be small, leveraging a balance is a way to maximize the result of the trade. Needless to say, you are still at risk of making a relatively big loss – but it is less than in more volatile markets.

If you do want to leverage your trades then it would be best to test the waters a bit first. By choosing a platform that you’re comfortable with such as ETX Capital, you can make several trades without leverage and see how much you profit or lose, and if the results are encouraging you can try to leverage your investment. Just be sure to keep an eye on how much you’re actually risking, and be ready to cut your losses if things go south. All said and done it is better to bite the bullet and accept a small loss, than end up losing your entire capital and being unable to recover.

A terminal illness is never a pleasant feeling. All the stress and pain that comes with it makes money the last thing on your mind. But you have to discuss some important financial issues before the worst happens. This article will show you what you need to do to plan for terminal family members.

What Goes Where?

The first item on the agenda should be the will. Hopefully, your terminal family member already has one in place. But even if they do, if they are of sound mind and body they should have the opportunity to make any last-minute changes, if they so desire. It can take over a year in court to reclaim belongings if there’s no will. Without a will, the US government claims the items until the family members can come forward via the justice system. Naturally, this is costly and time-consuming.

Any Dependents?

Dependents are a big issue. For example, an elderly grandparent taking care of a grandson or granddaughter may need to send them to someone upon their deaths. This should be planned ahead of time, but if you are still early on in the process it’s good to talk about this now. Dependents should be helped to make the transition as early as possible. You also need to address the financial side of things, such as how much the new guardians will receive towards the cost of their upkeep.

Wrapping Up Medical Fees

The chances are you’re facing a bill when your family member finally passes on. This bill will come to the surviving family members, who will have to find the money from the deceased’s estate. Make sure there is ample cash set aside to ensure that these bills can be paid. You should also look into any existing insurance policies for help with paying medical fees. Take note that most medical care programs only cover a certain amount of your treatment, so make sure you are aware of this so you don’t receive any nasty surprises later.

What about the Funeral?

The cost of dying is now well into thousands of dollars. Again, this will have to come out of your pocket. Your relative should have some form of funeral or burial insurance to cover the costs. If they do, check to see what their package covers. They may only cover certain types of funeral, or they may only account for part of the cost. Burial insurance exists specifically for funeral costs, so it’s worth looking into this as early as possible.

Debts 

You should be made aware of any outstanding debts well in advance of the person’s death. These debts may or may not be passed on to surviving family members. Check the terms and conditions of each debt to see whether this applies or not. Ideally, the person should be able to pay their debts out of the costs of their estate.

Conclusion

Financial planning is tough at such a difficult time. But it’s a vital part of the process of saying goodbye. Make sure you aren’t surprised by a large bill because you didn’t plan in advance. Discuss these issues today.

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In April, CNN reported that the Mayweather-Pacquiao boxing tickets were selling for a record $8,800 on the resale market. The cheapest floor seats were selling for $28,080. As the sports industry turns into a billion dollar industry, everyday sports fans are squeezed out of stadiums due to rising costs.

But there are ways to see just about any game at a discount. With careful research and planning, plus a little creativity and innovation, you can see a sporting event for free or at a discount.

Get creative with your accommodations

It’s entirely possible to book a room near the biggest college football game of the year for a fraction of the price. Use your frequent flyer miles and reward points to land a room. Reward credit cards like Starwood don’t have blackout dates. As long as there’s a room open, you have the option to book it with your available points.

If a hotel is out of reach, look within 30 miles of the game and Airbnb it. Accommodations range from the rental of an entire house for your family, or a comfortable bed and bathroom in a private room or basement. Look for solid reviews from people who have stayed with the host before, and book a room near public transportation if needed. Some Airbnb hosts will even pick you up at the airport or train station.

Of course, bringing the RV and tailgating is also a popular option. Camping near a stadium could save even more with a $50 campsite. In the morning, pack up the car and head to the game to grill with friends and family.

Scour for sponsored tickets

It’s not unusual for sponsored tickets to go unused because no one can go to the basketball game that night. Instead of sitting courtside or in box seats with a full bar, ticket holders are stuck at work or don’t have time to squeeze in another game. Usually given to companies from their vendors like FedEx or even a plumbing company, these tickets sweeten the business experience.

Push out a message on social media to let your network know you’re looking for tickets to a specific game. Ask if anyone has corporate sponsor tickets, or even just an extra ticket they don’t want to go to waste. If you come up empty, send out another push a few days before the game to see if anyone has a last-minute change.

Volunteer to usher

See a baseball game for free by volunteering to usher. You may even score a paid job for the season, putting money in your pocket while indulging your passion for sports. The upside is you’ll have early access to the stadium, get to meet lots of fans and mingle with the crowds. The downside is you’ll get distracted and miss big plays while answering people’s questions and directing them where they need to go.

Find free sporting events

Skip the real game and head to a qualifying tournament instead. The U.S. Open usually holds qualifying tournaments in Queens that are free to the public. Free seats are up for grabs at special practice days and a kids’ day. Check listings for games in your own area from college basketball to hockey games to find preview and practice seats.

Organize a group

Organize a group at work, a civic group or a member organization to get discounted bulk tickets. For example, PNC Arena extends discounted group tickets through their group sales department.

If you don’t have a group to organize, look to Groupon. The site runs deals for everything from jewelry to sporting tickets at a steep discount. When enough people buy the deal, you snag the discount. And if there’s not enough interest, the deal is canceled, and your card isn’t charged. Expect to see up to 50 percent savings and sometimes more.

Let’s take a few minutes today to talk life insurance. When I was an advisor, many people only looked at cost. The key, though, is to compare costs with benefits. Here’s one place people get trapped because they don’t understand subtle differences: life insurance with an exam vs. those without…..don’t make the wrong decision!

Did you know that in some cases, the cost for a life insurance policy with an exam can be about equal to one without an exam? Make sure you know the pros and cons of choosing a no exam life insurance policy before you purchase. Educating yourself can help you select the right thing for you.

No Exam Life Insurance

A life insurance policy with no exam means that you do not need a urine sample or a blood draw in order to get approved. One of the biggest benefits of going this route is that you can get approval very quickly, whereas a traditional policy might take some time to review all your results and present you with your rate. This form of insurance is still underwritten by the MIB and the application procedures are similar.

Underwritten Life Insurance

A key word in life insurance is “underwriting.”

In order to get a policy that has been underwritten, you need a medical exam. This usually requires that an examiner comes to your home to check your weight, height, and to take a urine and blood sample. From there, your results are reviewed and the insurance carrier arrives at a decision to offer you coverage or not. If the carrier has questions, the time to approval might be even longer, especially if a physician’s statement is required to verify your health status.

For someone who is in relatively good health, an approval can come as quickly as within 48 hours. Usually, though, a carrier does not approve a policy until 2-4 weeks later. It might take even longer for someone who is not in good health. The advantage of going this route for someone who is healthy, though, is that the savings over the course of the term period can be significant. Someone who has health issues might prefer to go the route of no exam life insurance.

What About Income?

Another important thing to remember is that it’s going to be difficult for someone on unemployment or studying full time to get traditional exam life insurance because the company sees them as having no income. Without a medical exam, however, income is not a major factor. This makes it easier for someone outside the traditional scenario of a full time job to get life insurance coverage.

Cost

One of the biggest factors in comparing no exam life insurance to medical exam life insurance is cost. While no medical exam life insurance is more expensive, you are getting coverage without the unknown of a medical exam. Imagine that you have not been to the doctor in some time, and when the examiner shows up to do your blood test you find out that you have a blood pressure or cholesterol problem. With this, your rates on your traditional policy could skyrocket or you could even be declined, depending on the severity of the issue. In this case, it makes much more sense to go the route of getting life insurance without an exam because you’re avoiding an unknown or an even higher policy cost.

Set aside a time to talk to an insurance professional to determine whether no exam life insurance is right for you.

Despite the recovering economy, American credit card debt levels are on track to exceed $900 billion by the end of 2015, bringing the average household debt to $7,813, the highest since the Great Recession of 2007 to 2009, according to CardHub. While FICO scores have improved to a pre-recessionary average of 695, which is partly a reflection of consumers being conscious to make fewer late payments, over half of Americans mistakenly think that maintaining a high balance improves their score as long as they pay bills on time, according to a Bankrate Money Pulse survey.

Not knowing how credit scores work can hurt you in ways you may not realize. Here are five reasons you should care about your credit score:

Getting Credit

Most fundamentally, a good credit score enables you to get credit cards and loans, while a bad score limits your ability to secure such financial resources. What constitutes a good credit score varies depending on what scoring system and lender you’re talking about. For popular scoring systems, such as FICO and VantageScore, a good score is anything above 700, a poor score is below 649 and a bad score is anything under 600. If your score falls into the poor to bad range, or even if it’s merely fair, you may have difficulty getting new credit cards or loans. This can be problematic in itself, but there can be a snowball effect with other negative consequences.

Finding Employment

A bad credit score can actually do double damage to your finances by limiting your ability to find certain jobs and obtain credit. The Fair Credit Reporting Act allows prospective employers to obtain your permission to review your credit report before hiring you. This can affect your ability to get jobs in certain industries, such as financial services, explains Vic Tanon of Emplicity, an organization that provides human resources consulting. Employers who notice you have a bad credit score may question your judgment in other areas and take a second look at your application.

Making Purchases

Your credit score can also affect your ability to purchase consumer goods and services. For instance, if you’re visiting T-Mobile’s website to purchase an iPhone 6s, you have to select from a credit range to determine how much you will pay for your up-front device cost. The site’s credit options include: excellent/good credit, building credit or some credit issues, no credit check due to serious credit issues, or a decision to pay the entire cost up-front. In other words, poor credit can result in you having to pay the entire cost at once, whereas good credit lets you spread the cost out over multiple payments. This reflects the fact that suppliers of goods and services are more likely to let you pay off a purchase over time if they know your credit is reliable. Similarly, your credit rating can affect your purchases of services, such as utilities and insurance.

Renting an Apartment or Buying a House

A poor credit score affects your ability to get a mortgage loan to buy a home. Even if you only plan to rent an apartment, a bad credit score limits your renting options. As Credit Karma writer Mike Goldstein explains, a bad score can cause a landlord to turn down your rent application or to impose additional conditions on your lease. In some cases, you may have to find a co-signer or a roommate with better credit. You may also have to put down a larger security deposit.

Starting a Business

Your credit rating also impacts your ability to start your own business. According to a Small Business Trends poll, 60 percent of small business startups say their biggest challenge is lack of funding or insufficient cash flow. To solve this problem, many business owners turn to business loans or lines of credit. Unfortunately, if you have a bad personal credit rating, it can affect your ability to secure business credit, cutting off one of the means to improve your financial situation and fix your credit. To avoid this and other negative consequences that stem from bad credit, keep your balances low and pay your bills on time.

Average Joe and OG hate rules of thumb. Particularly with life insurance. In fact, on a recent Stacking Benjamins podcast, Joe said that his most-hated (and OG’s second most-hated) rule of thumb was the one often spread by the life insurance industry – that you need 10x your income in life insurance.

I think the list was done partially in jest. But if I can interpret their main criticism, I would agree that blanket rules of thumb aren’t helpful for personal finance. Personal finance is – after all – personal.

So, if like Joe and OG, you find yourself looking for a little more insight into how much life insurance you need, read on. Last month was, after all, Life Insurance Awareness Month – so if you missed it (or even if you didn’t….) now is a better time than ever to look at your policies.

The 4 Percent Rule…and Insurance

You may be familiar with the 4 percent “rule” for retirement. Introduced in the mid-1990s by a financial planner, the 4 percent rule tells investors how much of their portfolio is “safe” to withdraw each year without depleting their all-important nest egg. The math behind the calculation says that if you withdrawal just 4 percent of what you have saved and adjust that mount for inflation each year, your nest egg could last more than 30 years (particularly if you leave your equity allocation higher). What we want to do is convert that same principle of the never-ending cash flow to life insurance, and we get a better “rule of thumb” for how much life insurance you need.

How do we do it? Drum roll…

Step 1: Make a hypothetical budget of what the family finances would have to look like to maintain the same standard of living. What does that added income (each month or year) convert to on a daily basis?

Step 2: Take that daily amount and add four zeros to the end. So, $50 daily becomes $500,000 in life insurance; $100 becomes $1 million; etc.

Step 3: Buy that amount.

Let’s think about the math: 4 percent of a $500,000 policy is $20,000 a year. For 365 days, that gives your family $54.79 per day.

Why is this a better “rule of thumb”?

Many times when we in the life insurance industry recommend 10x income, we add in disclaimers that families should also buy enough additional coverage to pay off debt and any major upcoming expenses. So basically, it is 10x your income plus your mortgage.

Oh, and if the kids are potentially headed to college, you should add in that amount as well. And don’t forget to account for the fact that you may have new expenses – like  childcare if a stay-at-home parent is lost. I don’t mean to call into question the intention behind this “rule.” The rule’s purpose is noble, and even $100,000 of life insurance is a million times better for your family than none. However, if we’re talking about a rule of thumb, having all these asterisks involved can often be more confusing than enlightening.

Instead, the “daily living expenses” method takes into account all those factors – the mortgage, continuing the same savings rate, etc. – to give a “clean” recommendation that is personalized to each family. If you calculate what that hypothetical budget would look like without a parent or spouse’s income, it should factor in childcare needs and continuing the same college or retirement savings path. You won’t have to add that in at the end.

Is this method perfect?

No. For instance, if one parent believes they may take an extended period off from work after losing a spouse, that amount still wouldn’t be accounted for in this method. You’d have to add that in.

But I think this “rule of thumb” is still better for one main reason: to find the perfect amount, you have to do more than just look at last year’s W-2 and multiple it by 10. It forces families to have a conversation and think about what is often unthought. And it brings back the personal to personal finance.

Jeremy Hallet is the CEO of Quotacy, an online life insurance agent. Quotacy offers free online quotes and life insurance calculators without requiring any personal contact information. Get your free quote at www.quotacy.com today.