Category: Brandpoint Business & Finance

2021-01-12T08:01:00

(BPT) – The earlier kids start learning basic financial skills, the better their financial health in the long run, according to research.

When it comes to teaching kids about money, caregivers are asking for help. In fact, 32% of parents are uncomfortable speaking about finances with their own children and 46% are looking for additional resources to help encourage good financial habits, according to a Chase survey of parents across the U.S., with children aged 8–14.

Traditionally, kids learn about money from shopping with adults and having related conversations. While discussions are an important part of learning about finances, online shopping has changed how kids experience spending.

“Families are juggling so many more responsibilities today than ever before, so it’s understandably more complicated to find opportunities to teach financial wellness to children or to find hands-on purchasing moments to talk about the value of money,” said Anastasia Morgan-Gans, an executive focused on family financial health at Chase.

Fortunately, new tools are helping meet the changing needs of parents and their children. For example, the free Chase First Banking account is designed to help families develop healthy financial habits by putting parents in control and giving kids and teens the freedom to learn how to earn, spend and save money.

Through the Chase Mobile app, parents can assign chores and provide allowance, set amounts and locations of where kids can spend money using a debit card, and help children reach savings goals. Kids interact with the app on their end, too, checking off assigned chores when completed and seeing when their allowance is paid. They can also see how much they can spend and where, as well as their savings goals.

This type of digital tool makes financial literacy discussions easier and brings family money management into the digital age, engaging kids in meaningful ways. In addition to adopting useful tools, it’s important to have ongoing conversations about finances. Morgan-Gans suggests starting with some rules for a family ‘contract’ when it comes to having access to an account:

1. I will spend responsibly and discuss what are acceptable purchases with my parent
2. I will make a savings goal, discuss it with my parent, and work toward it
3. I will not use my debit card on websites or at stores my parent does not approve of
4. I will always keep my card in a safe place and discuss the best place to keep it with my parent
5. I will not share my PIN number or account number with anyone
6. I will not post pictures of my card or app on social media or share them with my friends
7. I will never go to an ATM alone and will only use ATMs inside a bank

“These tools can help guide parents, so they have the confidence to teach kids about bank accounts and spending — it’s like an account with training wheels,” says Morgan-Gans.

2021-01-07T14:23:00

(BPT) – Among its downfalls, 2020 was a fraud-heavy year. However, there is one type of fraud that can be thwarted in 2021: pay-at-the-pump fraud using cloned payment cards, also known as counterfeit fraud. This happens when cybercriminals skim cards and steal payment card data at fuel pumps or buy them from the dark web, print them onto counterfeit payment cards, and use them at older fuel pumps that do not have an EMV^® chip or contactless card reader.

And pay-at-the-pump fraud is rampant. Analysis from Mercator Advisory Group and Transaction Network Services shows that fraud losses on automatic fuel dispensers (AFDs) this year is estimated to be $17,315 per site.

This type of fraud is prevalent because most gas stations still use outdated fuel pumps with point of sale (POS) systems that read the magnetic stripe on the back of a card instead of POS systems that use more secure chip and contactless card readers.

It is time for station owners to upgrade their fuel pumps to protect themselves and their customers.

Upgrading these fuel pumps has been a long time coming. Awareness about the intent to shift to chip cards for secure payments started in 2011 and the date for fraud liability to shift from financial institutions to fuel merchants has been pushed back multiple times since then.

Visa is trying to stop fraudsters from taking advantage of consumers and merchants this way, and is encouraging fuel merchants to upgrade to EMV chip card and contactless readers at the pump — the most efficient way to prevent criminals from successfully using counterfeit payment cards — before the liability shift date of April 17, 2021.

“In addition to consumers having an extra layer of protection, these upgrades benefit gas station owners by removing fraud dollars that impact their bottom line,” said Julie Creevy Scharff, vice president of consumer products at Visa. ”Based on Visa data, counterfeit fraud dollars decreased 87 percent among chip-enabled non-fuel merchants in the U.S. in March 2020 compared to September 2015, when the liability shift occurred for that community.”

Visa believes a similar reduction in counterfeit fraud perpetrated at fuel pumps can be experienced by fuel merchants if they embrace chip card and contactless card readers at the pump.

Fortunately, there is still time to upgrade. Merchants should contact their payment or fuel pump provider so consumers can take advantage of a chip card reader with their chip card or use contactless payment when they fuel up.

2021-01-06T10:01:00

(BPT) – As we enter 2021, here’s one more essential item to put on your list in addition to canned goods and masks: a financial checkup. According to Fidelity Investments’ 2021 New Year Financial Resolutions Study, more than two-thirds of Americans experienced financial setbacks in 2020, often from the loss of a job or household income or another emergency expense. Even those lucky enough to maintain their income still may have had to tap savings to help others, as nearly one in five attribute their financial setback to providing “unexpected financial assistance to family members or friends.” Despite this, many Americans remain optimistic and determined to make their money work harder in the New Year, with 72% confident they’ll be in a better financial position in 2021.

“Americans are clearly ready to leave 2020 behind and start 2021 off on the right foot, including when it comes to their finances,” said Stacey Watson, senior vice president with oversight for Life Event Planning at Fidelity Investments. “This year’s top financial resolutions are consistent with what we’ve seen in the past, however, what makes 2021 unique is how people will achieve them, given the financial pressures and major life events many continue to experience throughout the pandemic.”

This year, 65% of Americans are considering a financial resolution for 2021, which is down marginally from last year (67%), but still quite strong given the headwinds experienced by so many families. Younger generations appear to be more committed to actively improving their finances in the new year, with 78% of all Gen Z and Millennial respondents considering a financial resolution compared to 59% of all Gen X and Boomers.

“Younger generations are building up their careers, families and finances, so it makes sense they have important financial resolutions to make. Still, Gen-X-ers and Boomers also experienced significant financial challenges in 2020 and may want to consider making some resolutions of their own to build a stronger financial future particularly when it comes to retirement readiness,” continued Watson.

Making a resolution, and checking it twice

Resolutions are an important start, but the key is to keep good financial routines going strong well beyond January — and ultimately have them become life-long habits. The study reveals the key to a successful resolution is the good feeling of making progress and setting clear and specific financial goals. Having someone to help keep you on track and hold you accountable also plays a role, as nearly one-in-five indicated this was a major reason they were able to stick to a financial resolution last year. In fact, more than three-quarters (77%) of people working with a financial professional were able to stick to their financial resolution in 2020, compared to just half (50%) of those who did not work with one.

Putting 2020 in the rearview

To help build a better financial future, consider these three things you can do to move forward:

• Begin with a budget
• Of those who said they were in a ‘better’ financial situation this year compared to last, more than one in five attributed the success to budgeting better. With so many online tools to make tracking your spending and savings easier, including Fidelity’s Budget Checkup, there are simple ways to create and stick to a budget aligned with a ‘50-15-5’ guideline.
• Replenish that rainy-day fund
• More than 8 in 10 Americans say they’ll build up their emergency savings in 2021, an important money move considering that many may have tapped into their stash of cash due to financial setbacks in 2020.
• Find new sources of income
• Nearly two-thirds say they plan to find new ways to make money in the new year, whether with a side hustle, selling items online or getting a part-time job. And with 30% of Americans planning to ‘declutter’ their homes in 2021, there’s a good opportunity to find more than just loose change in those cushions and closets.

To get more tips for making and keeping your financial resolutions, visit Fidelity.com.

This study presents the findings of a national online survey, consisting of 3,011 adults, 18 years of age and older. The generations are defined as: Baby Boomers (ages 56-74), Gen X (ages 40-55), millennials (ages24-39), and Gen Z (ages 18-23; although this generation has a wider range, we only surveyed adults for the purposes of this survey). Interviewing for this CARAVAN^® Survey was conducted October 14-21, 2020 by Engine Insights, which is not affiliated with Fidelity Investments. The results of this survey may not be representative of all adults meeting the same criteria as those surveyed for this study. Margin of error is +/- 1.79% at the 95% confidence level. Smaller subgroups will have larger error margins.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
© 2021 FMR LLC. All rights reserved.
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2021-01-05T23:01:00

(BPT) – COVID-19 has irrevocably altered the way that we do business. Some small businesses have floundered, while others have completely reinvented themselves.

In a recent survey by SCORE, just 34% of U.S. small business owners now categorize their companies as profitable, compared to 55% in 2019. As a result, they’re working hard to adapt — reconfiguring their offerings to boost revenues and planning such new strategies.

“The unexpected has forced many to reevaluate plans, practices and procedures,” notes Andrea Forstadt on USChamber.com. “Yet one of the advantages of being a small business is the ability to more easily lean in to, embrace and adapt to change. For many, the short-term alternate plans or adjustments are fast becoming the realities of the foreseeable future.”

Here are five trends that have impacted small business this year.

Freelancing has surged. As people rely on contract work to replace lost jobs, the number of freelancers in the U.S. is growing steadily. NPR reports that two million more Americans began freelancing between September of 2019 and September of 2020, boosting the freelance portion of the U.S. workforce to 26%. Studies also show that women lost jobs at a faster rate than men during the past year; and are more likely to pursue full-time freelance careers due to autonomy and flexible schedules.

Cashless commerce is growing. To reduce person-to-person contact, businesses of all kinds are discouraging or completely eliminating cash payment options in favor of card or digital payments. “Ongoing shifts toward e-commerce, digital payments (including contactless), instant payments and cash displacement have all been significantly boosted in the past six months,” confirms an October McKinsey report. In one example, the raw volume of invoices sent on Invoice2go, which saw more than $24 billion in invoicing volume in 2019, has risen from 58 million to 78 million invoices sent per month — a boost of about 30%. As consumers seek efficiency and convenience, Invoice2go also has seen a 50% boost in digital payments via its payment platform — a crucial assist to help small businesses stay competitive.

Demand is up for digital tools. As small businesses lean more on online business functions and/or e-commerce during social isolation, they’re calling for leading-edge tools that can help them navigate the logistics. Women-owned businesses are often primary customers for financial management tools — studies show they’re 43% more likely than male business owners to be concerned that limited access to funds could hurt their businesses. Around 43% of U.S. small businesses plan to expand their businesses through digital and related technology as a response to COVID-19, according to the Verizon Business Survey. In fact, 30% of these businesses have already added ways to deliver products and services digitally. To meet this demand, Invoice2go has recently added “Reviews” and “Profiles” features — prompting a star-based review after each transaction and enabling creation of an auto-generated website to help small businesses get discovered and build credibility. This is especially crucial for solopreneurs (37% of the platform’s users), who can’t always devote valuable time for customer follow-up and encourage the word-of-mouth that generates future business.

Businesses are diversifying. Many small businesses have devised new offerings as previous income streams dwindled. For example, hotels are now offering day-rate rooms for people who need to work remotely, distilleries are producing hand sanitizer in addition to spirits and restaurants are offering better, easier take-out options. “Difficult times often lead to changes in the way the world operates,” says Wade Thomas in Forbes. His advice to business owners is, “Develop products and services that not only solve today’s challenges, but will also thrive in the new, post-difficult-times world.”

Virtual experiences are expanding. Companies have transformed in-person events into digital experiences. From virtual happy hours, to podcast product releases, to YouTube customers videos, everything is going online. “The real opportunity is to somehow provide the experience and connectivity of former live events to a virtual one that actually can sustain itself over time, even after the end of the pandemic,” explains Bernhard Schroeder in Forbes.

Need a suite of effective digital tools that will help you run your small business smoothly and efficiently? Invoice2go offers user-friendly products that can streamline your day-to-day workflow so you can focus on your business. Functions include estimates, expenses, invoices, payments, appointments, ratings and reviews. It’s going above and beyond for passionate small business owners and freelancers looking to improve and streamline processes in the new year. Learn more at Invoice2go.com.

2021-01-05T07:01:01

(BPT) – If you’re a business owner, you’ve probably needed to reinvent your business more than once, especially after this unprecedented year of change. While you strive to stay top of mind with your customers and attract new ones, you may also be adapting to increased online and remote commerce and services, while at the same time finding ways to make in-person interactions safer for employees and customers alike. That’s a lot to handle all at once.

Staying relevant during turbulent times means maintaining a smart marketing strategy. Making sure all your consumer-facing content is up-to-date, informative and attractive is a big part of keeping your business going — through the holidays and beyond.

The first thing your customers often see these days is your website. Is your content current? Do you have appealing visuals throughout your site, from your home page through your product pages? Are you also creating a direct mail campaign or revamping your in-store signage? Do you have up-to-date, high-quality headshots and other photographs for all of your social media channels?

All of these vital marketing strategies require top-notch photography.

Here’s why professional photography is the best investment you can make in your business, especially now.

1. You don’t get a second chance to make a first impression

The first impression your business makes — through its website, social media presence, flyers, direct mail and signage — relies on high-quality, striking visuals that draw customers’ attention and make them want to do business with your company or buy your products.

Your company’s leaders and employees need high-quality headshots to use on social media channels and company materials, to make the best impression on business partners and clients alike.

Having inadequate or unprofessional photography on your company website or other materials means you won’t be able to cut through the noise of the competition — losing valuable business, possibly for good.

2. A professional photographer gets results

You’ll see the difference in all of your company’s photos when you hire a professional photographer. Because professional photographers are highly trained, skilled and experienced, you’ll know that the photography for your business is getting the professionalism and technical experience it needs — and deserves. Professionals know how to achieve great results, every time.

3. Professional photographers will present your business in the best light (literally)

Members of Professional Photographers of America (PPA) are knowledgeable about art, lighting and posing — and they work in a variety of specialties. Most important, they know how to work with your staff and combine the best possible elements to create images that fit the unique style of your business, making just the right impression that’s so crucial for attracting customers.

These days, your business needs an impressive social media presence to generate buzz. Social media depends on striking images to capture your target audience’s attention and establish a connection. With quality photographs that make your employees’ headshots stand out, or that showcase your events, service and products with skill and flair, your company will shine.

Professional photography helps you establish and communicate your company’s unique brand identity. Relying on stock images for your marketing content and social media won’t make your business stand out from the crowd.

When you hire a professional photographer, you will be getting the best quality results, customized to you and your business. Good quality photography represents your brand the way you want it portrayed — and high-quality photographs imply that your business produces high-quality services or products.

4. Professionals know what questions to ask

A trained, experienced professional photographer will know what questions to ask to understand your business and your brand. They will work with you to fully understand the tone of the communication of your business, to make sure all the images they create are infused with that tone — and your brand’s personality.

5. They are business owners, too

Just like you, professional photographers are business owners. When you hire a professional photographer, you know you’re getting someone who is willing to go the extra mile to deliver the best possible images for your company. Professional photographers thrive on customer service and satisfaction, and they continuously aim to produce products that exceed their customers’ expectations.

Because they’re professionals, they know how to achieve great results, every time. That means you’ll get a strong collection of images that tell the story of your company or highlight your products, not just a few lucky snapshots. Working with a professional photographer means you’ll be collaborating with someone who knows how to produce a quality image — for any purpose, and under any circumstances.

Need to locate a professional photographer for your business? Visit FindAPhotographer.com.

2021-01-01T07:01:00

(BPT) – It’s always a good idea to commit to improving your well-being or creating healthy habits in the new year, but if you approach your resolutions as something you want to do versus something you should do, you’re much more likely to follow through on your goals. So, why not rethink the whole new year’s resolution premise? What have you always wanted to do, but never given yourself permission to spend time pursuing? Here are a couple nontraditional resolutions that you might actually want to stick to.

1. Dance like nobody’s watching

In the comfort of your own living room, you don’t have to worry about what you look like — literally, no one will be watching — so it’s easy to learn how to dance.

Look for YouTube videos with tutorials on dancing and see what catches your interest! Whether it’s an old-fashioned Charleston or the Woah, you can enjoy the thrill of movement, alone or with your partner. You could even try a new dance each month to keep it fresh all year long — there are so many types, and there are guides all over the internet!

Not only is dancing a ton of fun, it’s also a great form of exercise.

2. Learn a new language

Exploring a new language is enriching and fun — and it also keeps your brain active while allowing you to explore other cultures. Already know a bit about a language, but haven’t put your skills to good use since high school or college? What better resolution than to brush up on learning a language?

Becoming fluent is a great way to boost your confidence, and it’s easy to get started with apps like Rosetta Stone. Rosetta Stone helps you get ready for real-world conversations by using a “Dynamic Immersion” approach with exercises that take advantage of the brain’s natural language processing ability. In short, that means it helps you learn fast.

Rosetta Stone offers 25 different languages for you to choose from. Their program is mobile-friendly, so keeping up with your learning will be a breeze.

3. Boost your career

Looking to advance your career? These days, classes, training courses and certifications are right at your fingertips. Where to start, though?

First, figure out what skills would help you develop an edge in the job market, allowing you to move ahead or even change careers. Second, seek out experts and companies in that field who can point you toward learning resources.

Better yet, consider combining two resolutions into one. Learning a new language is one sure way to boost your resume. What countries does your company do business with? Who are your company’s business partners and customers? Learning their language can be a great way to stand out from the crowd when it comes to the next round of promotions.

4. Plan future adventures

Yes, most travel plans are on hold right now — especially international travel. But there’s no reason you can’t make a resolution to plan your next overseas adventure.

Where have you always wanted to go? Research the area and make a plan to learn more about the geography, cuisine and history of that region. Prepare yourself for your future trip by learning how to speak like a local, understand the signage, and find your way around easily! Having time to plan and practice means you’ll be that much more prepared when you get there.

5. Create culinary masterpieces

You can start with a modest goal — like making more plant-based dishes or using healthier cooking methods. But why not expand your skills? Thanks to cable channels devoted to cooking, plus countless how-to’s on Instagram and YouTube, you can find classes and tutorials on making just about anything that sounds tasty — right in your own kitchen. Even better, if you’re planning a trip (see #4) in the future, why not match up your culinary ambitions with your plans, and try making one of the signature dishes native to your next destination?

New Year’s resolutions don’t have to be all about putting yourself through grueling new regimens. Find resolutions that bring real enjoyment and meaning to your life, and they’ll stick with you for even longer.

2020-12-31T09:01:00

(BPT) – There’s no doubt the pandemic has hit small businesses hard. Even in its early weeks, February to April 2020, the number of active businesses plummeted by 22%, according to a report from the National Bureau of Economic Research. And unfortunately, the consequences of the early shutdowns impacted minority-owned businesses even harder, with Black-owned businesses seeing a 41% drop, Latinx businesses 32%, Asian businesses 26% and women-owned businesses 25%.

Does that bad news mean that now is the wrong time to consider starting a new business? Not necessarily. Opportunities exist for small businesses today, including support and funding for start-ups — and especially for minority business owners.

If you want to start a small business, here are steps to get you started.

1. Do your research

First, make sure you understand the current market for your business. This step is crucial to turn an idea into a full-fledged business plan.

Ask questions like:

• Is this product or service in demand right now?
• Are there similar products and services out there, and are they succeeding?
• Can this product or service be delivered safely for employees and customers?
• Could the business support rapid growth if it really took off?

Ask other business owners about their challenges and rewards to explore whether this is a good option for you. Use market analysis tools recommended by resources such as the Small Business Administration (SBA) to get to know the market for your business.

2. Write a business plan

No business can find funding, investors or partners without a solid business plan. Learning to write a comprehensive plan also forces you to fully think through every aspect of your proposed idea. The SBA is a great resource to research types of business plans.

Enlist the help of other business owners during the process if you can to understand how their plans helped them and what to avoid.

3. Fund your business

Every business needs capital to get started. Your business plan’s financial section should provide a clear idea of the capital you need to launch. Most businesses rely on multiple financial sources, including:

• Personal funds
• Bank loans or personal loans
• Investors
• Crowdfunding

SBA loans can be a good option. For example, Huntington Lift Local Business is a small-business lending program focused on serving minority-, women- and veteran-owned businesses. Huntington is a top SBA 7(a) lender that has developed creative lending options and other features to help bring relief, recovery and growth to small businesses across the Midwest.

With Huntington’s program, businesses can secure SBA-guaranteed loans from $1,000 and up to $150,000 with:

• Zero origination fees
• SBA fees paid by Huntington
• Lower credit score requirements
• Free financial education courses
• Checking accounts with 24-Hour Grace overdraft fee relief, and service fee waived for 36 months
• Flexible, longer-term repayment options

“The economic uncertainty sparked by the pandemic has highlighted the need for increased financial opportunity for everyone starting or sustaining their small businesses,” said Huntington’s SBA program director, Maggie Ference. “Everyone deserves a shot at success, and our program delivers a new solution to customers when they need it most, whether for a startup or an established business looking to grow.”

4. Develop a marketing plan

Creating a brand identity and communicating it well is crucial to success. Consider hiring or contracting marketing services to help you choose your business name, create a logo, build your website and develop a strategic marketing plan to get the word out about your business.

5. Take care of business

Dotting the Is and crossing the Ts is necessary for any business. Details include choosing your business location and registering your business, applying for all the required licenses and permits, including federal and state tax IDs — plus opening your business bank account. Also, consulting an accountant with experience helping small businesses can ensure you have your business and financial ducks in a row.

Starting a small business is a daunting challenge, but it can also be a rewarding opportunity. Taking the time to fully explore and utilize all the resources at your disposal can help ensure that your new business will be a success.

2020-12-29T07:01:00

(BPT) – With a fresh start upon us, it’s the perfect time to set goals and look forward to the possibilities of a new beginning — especially after 2020. The start of a new year is a great time to review your finances, realign your budget and make big plans for the coming months.

Many people set lofty New Year’s resolutions, but sticking with them isn’t always easy. Here are some common financial resolutions that might be on your list — along with helpful tips on how to keep them.

1. Build an emergency fund

Emergency funds can help you cover unexpected expenses without breaking your budget or taking on extra debt. Aim to put about 3-6 months’ worth of living expenses into a separate savings account with easy access.

2. Create a budget you can stick to

Get all your financial goals on the right track by creating or reevaluating your budget. A detailed budget can help you understand how you’re spending your money and identify areas where you can spend less and save more. Try using digital capabilities to monitor your financial activity. For example, Erica^®, Bank of America’s AI-driven virtual financial assistant available within the bank’s mobile app, provides proactive guidance, such as sharing a weekly snapshot of spending patterns or monitoring recurring charges, to help keep your budget on track.

3. Save for the next milestone

Saving money is an important part of reaching financial success, especially when you’re looking forward to that next life step — saving for college, buying a house or welcoming a child, for example. If you’re looking for guidance on tracking and achieving your individual goals, a personalized experience can help. Bank of America Life Plan^®, available within the bank’s mobile app and online banking platform, helps to define, prioritize and better understand the steps to take toward achieving your goals.

4. Maximize rewards programs

Plan your usual shopping and spending to take advantage of the many benefits of loyalty rewards programs. For example, with Bank of America’s BankAmeriDeals^®, you earn cash back on selected deals through your mobile banking app when you pay with your eligible Bank of America debit or credit card.

5. Boost retirement contributions

It’s never too early to direct more savings toward retirement. If your goal is to increase your retirement fund, focus on contributing to your employer’s plan, meet the employer match and consider opening an IRA to continue to build your nest egg.

6. Save for something fun

Who says financial goals can’t be fun? Whether you’re saving for a vacation, your dream car, or something else, it’s okay to set money aside as long as you have a plan for it. Saving up and purchasing something you want can feel like a real win. To achieve this, calculate the sum you need to save and set aside a specific amount each month. A digital experience such as Life Plan can help you break down your goals into attainable milestones.

Whatever you’re wishing for in 2021, now is the time to make a plan for reaching your goals. Visit bankofamerica.com/lifeplan to learn more.

2020-12-28T10:01:00

(BPT) – By Tori Guttierez, Cetera Investors

There has been a lot of angst over the faltering economy in general, but the “COVID generation” — young adults just hitting the job market or those looking forward to achieving key financial milestones — have been particularly hard-hit by the ongoing coronavirus pandemic. These young workers are facing a tight job market while paying down student debt just as housing prices skyrocket.

While it may seem like a less than opportune time to think about savings and financial well-being, there are good reasons for millennials to be proactive. Even amid recent economic volatility, there are ways for millennials to take advantage of greater financial offerings and new opportunities to save. From adaptive budgeting to strategic investing, there are a number of things savvy millennials can do to enter 2021 with confidence.

Working With the Current Job Market

The job market, for some, is the biggest thing standing between you and financial security. Even well-qualified candidates with years of experience are having trouble landing a job. But there are some things you can do in the coming months to stay active in the workforce and stabilize your finances.

First, take advantage of any and all unemployment or enhanced relief benefits available to you due to the pandemic. Once another round of federal stimulus funding is passed in Congress, these benefits could be available for a longer period of time.

If you don’t qualify for these benefits, or want to explore ways to make money, gain job experience by joining the gig economy. Many businesses have shifted to a remote workforce amid COVID-19 and are looking for short-term or part-time employees. And the digital marketplace for goods and services has opened up more outlets for starting an online business even as you continue to search for a full-time position.

Your chances of success will depend in part on your professional profile and how you position yourself. Now’s a good time to polish up your digital presence. Create a compelling LinkedIn profile and engage with other professionals and relevant content on the platform. Review your social media accounts and make sure they present you in a professional light.

Investing with Confidence

In addition to the professional considerations, it’s important to attend to financial issues. Did the budget you mapped out earlier this year shift as a result of quarantines and social distancing? For most people, that answer is yes. We spent less on gas and more on groceries, for example. And you may have had money set aside for travel or a special purchase that was put on hold. Reworking your budget to reflect those lifestyle changes can help you set aside more for savings, retirement and a 2021 emergency fund.

As advisors to clients in this age category, Cetera and I have additional tips of relevance to millennials struggling with the volatility of today’s economy:

• Review your retirement investments. If you find yourself in a lower tax bracket this year, you should look at your retirement plans for places to take advantage of the current circumstances. You might open a Roth IRA, and even consider moving some of your 401(k) to achieve tax advantages.
• Capitalize on Dollar Cost Averaging. We all hope to time our investments just right, riding the market up and making a killing when it peaks. But it’s nearly impossible to time the market’s highs and lows. A surer way to prosperity, though, is through regular, incremental investments that grow securely over time. Research bears out that systematic investment behavior — setting up consistent, automatic contributions to investment, savings and retirement accounts, or a “set it and forget it” strategy — yields better results in the long run.
• Match your portfolio to your values. This isn’t the first generation to fight for social change, but millennials have been outspoken in voicing their commitment to addressing issues like climate change, racial inequity and poverty. There are a growing number of ways to invest with purpose. A financial professional can help you align your portfolio with your values.
• Look for pay-as-you-go services. Younger professionals don’t have the scale of assets necessary to take advantage of full-service financial advising, given fees that benefit large or diversified investment portfolios. There are a growing number of advisors who are right-sizing their services for new clients with smaller portfolios. The options range from subscription-based financial management packages to a la carte or pay-as-you-go fee structures. These can save you considerable money as you gain your financial footing.

Beyond these key to-do’s, my Cetera colleagues Damon Accardi and David Tozer lay out some additional considerations when it comes to developing your broader 2021 financial plan:

• Get smart about trading. This year’s unprecedented volatility has brought out the day traders in many of us and its momentum has sustained. A good rule millennials should keep in mind heading into 2021 is that it’s “time in the market not timing in the market” that leads to long-term success.
• Consider an app. Millennials are digitally native and know a second opinion or crowd-sourcing ideas has long been available with a swipe. A variety of apps can aid in financial planning but do your research. It’s good to discuss the basic pros and cons of, say, Acorn, Robinhood or some of the apps catered to the millennial generation with a financial professional. While those apps may have their advantages, some may have hidden costs or features that take you off course. An investment professional can help you understand the complexities of investing and how to withdraw funds (one of the biggest challenges we often observe).
• Find a financial professional that understands your needs. No matter your age or where you are in your career, finding a financial professional who understands your circumstances and interests can help you navigate the complex landscape right now. For millennials, there are unique advantages to working with a financial professional. An advisor can help you set objective, achievable financial goals and hold you accountable to them.

While periods of economic strife can feel daunting, taking a strategic and proactive approach to managing your finances can set you on a positive trajectory in the long term. Our current fiscal challenges are temporary, so patience and resilience, and some savvy strategies, are all that you need to stay on the path to a brighter future.

Tori Gutierrez is Financial Advisor and Investment Adviser Representative for Cetera Investors. She is based in Pasadena, CA.

Please note:

A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.

Before rolling over your retirement account, consider all available options, which include remaining with your current retirement plan, rolling over into a new employer’s plan or IRA, or cashing out the account value. When deciding between an employer-sponsored plan and IRA, there may be important differences to consider — such as range of investment options, fees and expenses, availability of services, and distribution rules (including differences in applicable taxes and penalties). Depending on your plan’s investment options, in some cases, the investment management fees associated with your plan’s investment options may be lower than similar investment options offered outside the plan.

Dollar-cost averaging will not guarantee a profit or protect you from loss but may reduce your average cost per share in a fluctuating market.

A diversified portfolio does not assure a profit or protect against loss in a declining market.

Please add the Investment Risk disclosure: “All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.”.

About Cetera Financial Group^®

Cetera Financial Group (Cetera) is a leading financial advice firm. It empowers the delivery of an Advice-Centric Experience^® to individuals, families and businesses across the country through independent financial professionals as well as trusted tax professionals and banks and credit unions. It’s headquartered at 200 N. Pacific Coast Highway, Suite 1200 El Segundo, CA 90245-5670.

Comprehensive services include: wealth management solutions, retirement plan solutions, advisory services, practice management support, innovative technology, marketing guidance, regulatory support, and market research.

“Cetera Financial Group” refers to the network of independent retail firms encompassing, among others, Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Investment Services LLC (marketed as Cetera Financial Institutions or Cetera Investors), Cetera Financial Specialists LLC, and First Allied Securities, Inc. All firms are members FINRA / SIPC.

Individuals affiliated with Cetera firms are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.

2020-12-23T19:01:00

(BPT) – The race for a COVID-19 vaccine may have a surprising beneficiary.

Artificial intelligence, the sometimes maligned and misunderstood villainous technology behind Hollywood blockbusters from “2001: A Space Odyssey” to “The Terminator” could emerge as a hero of epic proportions. Successfully taking on the COVID-19 virus by aiding vaccine development and management of clinical trials, researchers say, is only the beginning of what this powerful tool can achieve. Today, the pandemic; tomorrow, global warming and other looming humanitarian challenges of our time — alongside new, transformational ways of doing business, which will speed innovation, improve financial performance and boost job satisfaction for workers.

AI is helping people answer what had been unanswerable questions, too complex for human brains and powerful computers to handle. One of the powerful lessons researchers say we are learning in the fight against COVID-19 is the power and value of data. Notably, the role data plays in predictive analytics generated through AI. For COVID-19, some healthcare professionals and researchers relied on genetic algorithms to evaluate, predict and model the virus’ behavior to help control its impact. That approach — using AI to see ahead — has enormous potential and is why predictive analytics is the subject of so much groundbreaking work in the field of AI.

Researchers at digital technology innovator Cognizant are experts on next-generation AI and data science. Among their ongoing initiatives is development of a powerful tool, “Evolutionary AI,” which can literally help to see the future by quickly analyzing enormous amounts of data and mapping the anticipated trajectory of selected trends. Evolutionary AI goes a step further than analysis, answering immeasurably complex problems — then prescribing solutions. Think of the benefits for a research oncologist who can now evaluate patient diagnoses, test results, demographics and individual risk factors across a mind-boggling array of data points to prescribe the best treatment. Or a greenhouse farmer who can now analyze seeds, soil, temperature, humidity and light requirements to yield optimal growth. The ramifications of that kind of application could be enormous, leading to more efficient farming and more food. Not just prediction, which can be so valuable on its own, but prediction and prescription — a one-two, revolutionary technology punch.

This new approach to issue-identification, prediction and decision-making is on full display during a new XPRIZE competition dubbed the Pandemic Response Challenge. A nearly three-month initiative co-sponsored by Cognizant, the challenge tasks participants to come up with the best way to use artificial intelligence to accurately predict COVID-19 infection rates and offer prescriptive intervention, all in an effort to save lives and re-open businesses, communities and the global economy. While there’s a $500,000 grand prize hanging in the balance for the top two winning teams, organizers say the real reward is in showcasing artificial intelligence capabilities and the power of machine learning. Simulations and models that are created during the challenge will not only have an enormous effect on the continuing battle against COVID-19, but they will also be potentially transformative in everyday business decision-making.

But for now, this XPRIZE competition, the 23rd since the organization was founded in 1994, remains squarely focused on COVID-19. Organizers are hopeful the competition will shine a bright light on the monumental advancement of this technology and offer assessment paradigms, predictive platforms and a path forward for real-world applications to address the pandemic.

“This challenge will inspire some of the world’s brightest innovators to address the immediate threats to our economies and livelihoods,” said Amir Banifatemi, chief innovation and growth officer at XPRIZE. He said the challenge could be a “game-changer when it comes to using data and artificial intelligence to create a route to recovery,” especially now that vaccines are becoming available.

The ambitious, 10-week timeline of the competition underscores the urgency of stopping the spread of COVID-19 and developing a framework for communities and businesses to safely reopen. The challenge organizers are confident that artificial intelligence will help determine the best ways for communities to reopen, people to reengage with one another and the world to reclaim a sense of normal. In the case of COVID-19, AI could dramatically improve data-based decision-making and help shorten — even eliminate — another wave of infection, spread and death.