  If you’ve had the opportunity to read about my trip to LA recently, you probably know that I like to travel cheap! Recently I took a trip to New Orleans, Louisiana. Home of jazz music, great food, and lots of drinking, there is plenty to spend money on. Knowing it was my first time in the city, I figured I might spend a little more this time around but I was committed to spending less than $500. How did I do it? Let’s find out. I shall confess, I did not stick to the “24 hour” time frame for this trip. From a transportation standpoint, it was actually more cost effective for a longer trip. I’ll explain later. Remember the rules of the Mini Trip: There are only 3 rules to abide by in order to successfully pull off a Mini Trip.
Travel Remember my budget friendly travel partner Frontier Airlines? They knocked it out of the park with this trip. A good tip when considering a mini trip is to subscribe to the airline’s emails. Most airlines offer serious discounts if you’re flexible on travel dates. This particular sale was 90% off select one-way flights as long as they occurred within a certain time frame. I was able to secure a direct flight for $32 and my return flight was also $32. By flying out on a Wednesday and returning on a Saturday afternoon, I took advantage of less popular flight times, which means some serious savings! Remember that this is a budget airline so they make their money on the “perks”. Checked bags, reserved seats, extra leg room all cost extra. My priority is always the destination and not the mode of transportation, so I am fine with being slightly uncomfortable for an inexpensive flight. If this is not the case for you, you might explore other airlines that include those perks in the ticket price. Total cost for roundtrip airfare from Texas to NOLA: $66 Transportation NOLA is a fairly compact and walkable city. However, the airport is a decent drive from the places you’re likely to visit. This trip, I decided to forego renting a car and use rideshare and public transportation. This worked well with the exception of the $54 Uber fare to and from the airport. In hindsight, I would’ve rented a car for $25 just to make the drive to and from the airport. I chose to buy a Jazzy Pass for New Orleans’ transportation system. I bought a 3-day pass right from my iPhone for $9 which allowed me unlimited rides on buses and street cars for the duration of the 3 days. My only Uber rides were to and from the airport. The transportation system was very easy to navigate and it made me feel like a local! Total cost for my transportation: $63 My Visit One of the many reasons New Orleans was the perfect Mini Trip destination was the amount of free stuff there is to do and see. Without a car, I did a lot of walking, which allowed me to stumble across so many amazing gems. Here are the list of places I visited at little to no cost:
Total amount spent on activities: $5 Lodging This was definitely the biggest expense of the trip. Unlike LA, I had no connections to a free place to crash. I did some research and found a quaint Airbnb for $45 per night. Thanks to some confusion at check-in, I was comped one night’s stay so my grand total for lodging was $173. Total cost for lodging: $173 Food and Booze This is where the City of New Orleans outshines most places. Open container laws in the city permit you to literally drink alcohol wherever you want. While I saw most tourists walking through and paying $5 for a beer to go, I decided to jump into a local grocery store and buy a six-pack. For $8, I had plenty of beer to get me through a portion of the day. This turned out to be a huge savings in the long run. New Orleans is a tourist hot spot, so food was a little pricey. I would suggest splitting meals and only eating twice a day while on the trip. These small savings really add up. Total cost for food and alcohol: $79 My total all-in costs were approximately $380.08, and I never felt restricted by my budget. The key is establishing the amount you wish to spend before you leave and stick to it! Where will I go next? At this rate, I could go all over the country! Jake Rivas, CFP® is a financial advisor and CERTIFIED FINANCIAL PLANNER™ at i*financial located at 1901 NW Military Hwy Ste. 102, San Antonio, TX 78216. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at 210-342-4346 or by email at jake@youandifinancial.com.
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 Can podcasts have seasons? Why not! After 16 episodes, Jake of All Trades Season 1 is complete! As I prepare new guests and new content for the next season, I thought it might be fun to take trip down memory lane. What were my favorite moments from the first season? What did we talk about? Where does the show go from here? Let’s take a look. My Favorite Moments What did you eat for breakfast? Speaking into a microphone can be super awkward. I don’t like the way my voice sounds and I found that my guests also shared this same discomfort. So, what do you do when you’ve got an awesome guest who is ready to share their two cents, but hasn’t warmed up to the mic? We talk breakfast! Prior to the start of each guest interview, we always warm up by discussing what we had for breakfast that day. From cereal to eggs benedict with salmon, I have heard it all. Although it isn’t finance talk, the guests become more comfortable with speaking into a microphone which makes the content even better. This has become one of my favorite pre-recording rituals! Really? You’d be on MY show? I have been incredibly fortunate to interview some very accomplished individuals during the first season. From entrepreneurs to business professionals, all of my guests shared one thing in common; their desire to bring financial education to the masses. I am grateful for all of my guests so far and excited for the ones to come! I should have won that tacky sweater contest.... Did You Learn Something? The first season was all about laying the foundation. As with any project, you need a base from which to build upon. For the show, that meant laying your financial foundation. Here is a recap of some of the topics covered throughout the first season!
Where are we headed? National Public Radio, it's ME! Jake of All Trades! Maybe someday NPR will decide a personal finance podcast is exactly what is missing from their programming! But until then, what is next for the show? Better content, more amazing guest interviews, and video! Season 2 of the show will be focused on engaging listeners more through various mediums of communication; surveys, interviews, events, and videos. The opportunities are endless and we have only just begun! Season 2 will be packed full of even better content than before. Here is a teaser of some of the topics I intend on covering this year:
There is much more to come, so stay tuned! Remember, you are the expert of your own life, and that’s my two cents. Jake Rivas, CFP® is a financial advisor and CERTIFIED FINANCIAL PLANNER™ at i*financial located at 1901 NW Military Hwy Ste. 102, San Antonio, TX 78216. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at 210-342-4346 or by email at jake@youandifinancial.com.
  If your schedule is like mine, you probably find it hard to take time away for yourself. In addition to the cost of taking time off, travelling can be very expensive. I don’t like overpaying for stuff but I also recognize the value of spending time and money on experiences while I’m young. If this sounds like you, I recently discovered a cost effective way to feed your inner travel monster, without breaking the bank. I call it a “Mini Trip”. A Mini Trip is 24 hours spent in a city of your choice. Yes, 24 hours. I know it seems too short, but trust me; you can pack a lot of stuff into 24 hours. There are only 3 rules to abide by in order to successfully pull off a Mini Trip.
For my first Mini Trip, I chose Los Angeles, California. I had never been but always wanted to see what all the hype was about. Travel As a reminder, I live in San Antonio, Texas. We have a relatively small airport with fewer direct flights than other major airports. Knowing this, I decided to check out other airlines besides what I call the big 3: Southwest, American, and United. I stumbled across a little airline called Frontier, whose tag line is… “low fares done right”. They certainly delivered on this promise. A one-way ticket to L.A. was $19. The return flight the very next day was also $19. Both flights were direct, and with the time difference, I only lost about an hour of exploring time. Because I was going for a day, I was able to pack very light in a messenger bag that fit perfectly under the seat in front of me. This allowed me to avoid any excess baggage fees that the airline charged. Total cost for roundtrip airfare from Texas to LA: $46.90 Transportation L.A. is notorious for its freeways and terrible traffic. I knew if I planned too many adventures that were far from each other, I wouldn’t get to see as much. I mapped out my planned destinations and obtained Uber and Lyft fare estimates for each trip. The cost was a little over $100 for all my desired trips and that seemed too steep. So I researched rental cars to gauge the cost difference. I know what you might be saying, “rental car companies get you with their insurance and protection packages, blah…blah…blah.” I said the same thing, until I called my auto insurance provider to ask if my coverage would extend to cover the rental. The answer was yes! Total cost for my rental: $24.79. My Visit Obviously, one of the most expensive things about traveling is everything you want to do when you arrive at your destination. Theme parks, concerts, beaches, tours, etc. All of these things cost money and given my short visit, I didn’t want to get tied up with a single activity. I went to a nifty website called timeout.com, which compiles places to go and things to do that are free in different cities. Here were my destinations of choice:
Total cost for tours, exploration, and activities: FREE Lodging One of the reasons for selecting L.A. for my first Mini Trip was connections to a couch that I could crash on. If you can’t find a place to stay for free, I would suggest looking at a private room or semi-private room through Airbnb. Remember, it’s just 24 hours. I might have slept a whopping 3 hours, so comfort should be the least of your concerns. Total cost for lodging: FREE Food My best friend, Yelp.com, provided me with all the places I needed for cheap meals and happy hour specials. By planning out when I wanted to eat, I was able to locate a few restaurants that were cheap, good, and super chill. Those are my three requirements for any restaurant. Total cost for food and alcohol: $85 My total all-in costs were approximately $156.69, and I had the time of my life! As you can see, with careful planning, and $200, you can be “that person who travels a lot”. Where will I go next? Not sure, but these Mini Trips are a game changer. Jake Rivas, CFP® is a financial advisor and CERTIFIED FINANCIAL PLANNER™ at i*financial located at 1901 NW Military Hwy Ste. 102, San Antonio, TX 78216. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at 210-342-4346 or by email at jake@youandifinancial.com.
 Roughly seven years ago, Laszlo Hanyecz made a proposition on an Internet forum. Hanyecz was looking for someone to send him some pizza, so he could cure his hunger pangs. In return, he offered up 10,000 units of a little-known currency called bitcoin. Hanyecz ended up getting two Papa John’s pizzas for his bitcoin payment (which at the time was worth around $41). The exchange marked the first known purchase involving a cryptocurrency, yet for Hanyecz this turned out to be a pretty sour deal; based on their value as of October 3, 2017, those 10,000 bitcoins would now be worth in excess of $40 million! Bitcoin has made significant strides since that first pizza transaction. Its early years were plagued by security hacks and underground black markets, but the cryptocurrency has gained legitimacy in recent years, leading to a surge in interest. On average, more than 250,000 bitcoin transactions occur every day, and with a market capitalization in excess of $66 billion, bitcoin has become the largest cryptocurrency in the world. You can even buy bitcoin through some ATMs. Despite this proliferation, there’s a healthy degree of skepticism from retailers that, according to a recent article from Bloomberg, are reluctant to accept payment in bitcoin. Investors and consumers, on the other hand, seem to be enamored of this digital currency. This has given rise to other cryptocurrency players, such as ethereum, that vow to improve upon some of bitcoin technology’s deficiencies. As cryptocurrencies rise in number and awareness, so will your questions. This article aims to help you understand the dominating networks, their potential, and their limitations and risks. How bitcoin works Bitcoin is a digital currency that allows for the transfer of payment between two parties, without the help of a bank—and without government oversight. Unlike any currency that has preceded it, bitcoin has no physical form, cannot be touched, is not issued by any central bank or sovereign nation, and relies completely on a decentralized network of computers to process its transactions. Bitcoin’s appeal lies in how payments are processed (via the Bitcoin network), as transactions are recorded anonymously and securely in a public ledger, commonly known as the blockchain (see Figure 1). A peer-to-peer network of computers, supported collectively by what are known as miners, records and approves the transactions. The miners are rewarded with bitcoins for their work. Mining requires intense computing power, as block transactions involve solving complex mathematical equations. Given the computational power behind this network, and the lack of reliance on one single computer or “node,” it’s virtually impossible for a hacker to infiltrate the network.  That’s not to say this currency doesn’t have its share of problems. The early days of bitcoin were fraught with fraud, security breaches, and dark market transactions. In February 2014, Mt. Gox, then the world’s largest bitcoin exchange, suspended trading, closed its website, and filed for bankruptcy. Nearly 850,000 bitcoins ($450 million in value at the time) belonging to customers had been stolen. One year earlier, the FBI shut down the Silk Road marketplace, the best-known underground black market at the time, which was popular for using bitcoin to sell drugs, guns, and stolen merchandise. While security in recent years has improved, it still remains a big concern with bitcoin and other cryptocurrencies. On the more positive side, enthusiasm in recent years has centered on the push for increased awareness of bitcoin and its ease of sending payments. Jeremy Liew, the first investor in Snapchat, believes that bitcoin could reach a value of $500,000 by the year 2030, fueled by an increased need for a new store of value in countries with unstable currencies. Aswath Damodoran, professor of finance at New York University’s Stern School of Business, believes that cryptocurrencies such as bitcoin will eventually replace gold as a store of value and may someday be as important as actual paper currencies. He told CNBC, “Cryptocurrencies have taken the role of gold at least for younger investors because they don’t trust paper currencies.” But bitcoin also has its share of skeptics. In a recent interview with CNBC, J.P. Morgan CEO Jamie Dimon expressed that bitcoin is a “fraud.” Comparing bitcoin to the tulip mania of the 1600s, Dimon said that bitcoin is “not a real thing” and that “[c]urrencies have legal support. It will blow up.” Despite Dimon’s negative comments, it should also be noted that his firm, J.P. Morgan, has been developing its own blockchain built on the ethereum network. J.P. Morgan is also a member of the Enterprise Ethereum Alliance. (We’ll talk more about ethereum below.) Challenges of bitcoin With the rise in popularity of bitcoin as a means of payment, the current system as it exists has had trouble with the number of transactions moving through the network, leading to increased transaction fees. The size of the blocks that make up the actual transactions is limited to one megabyte, which has led to a delay in processing transactions. More recently, a dispute over how to cope with increasing adoption emerged in the bitcoin community. On August 1, a “fork” took place and a new currency—bitcoin cash—evolved. Bitcoin cash is essentially a clone of the existing bitcoin blockchain, but it has an increased block size of 8 megabytes. Those who owned bitcoin prior to the split now own an equal amount of bitcoin and bitcoin cash. Still, a major critique regarding wide mass acceptance of bitcoin as a form of payment is its extreme volatility. While major paper currencies such as the dollar and the euro experience swings in performance, the volatility for bitcoin is roughly 30 times higher than typical foreign exchange markets, meaning it can surge—and plummet—quickly. Recent news surrounding China’s forced shutdown of several bitcoin exchanges led to a bout of increased volatility and panic selling for bitcoin. According to the New York Times, regulators were growing concerned with the potential risks that cryptocurrencies could have on China’s financial system. The news led to a steep drop in the price of bitcoin, evidence that regulatory involvement with cryptocurrencies will continue to have a major impact on pricing volatility moving forward. Despite these challenges, supporters note that we are still quite early in bitcoin adoption; they believe that as acceptance increases, and regulatory involvement is better defined, the pricing volatility will ultimately level out. Ethereum, ICOs, and other cryptocurrencies One of the main holdups to the staying power of bitcoin could be—in the simplest of terms—its limitations. Bitcoin was designed with limited flexibility on purpose, so that it can deliver robust security. The currency has essentially become a sophisticated store of value or a way to exchange payments—but that’s mostly it. As a result, it’s quite challenging for third parties to develop applications on top of the bitcoin blockchain. That’s where ethereum comes in. Ethereum, now the world’s second-largest cryptocurrency, was developed a few years back by Vitalik Buterin. Now 23, Buterin got his start in bitcoin development but wanted to create a more sophisticated and flexible blockchain. Buterin’s genius is evident in his cult following in the cryptocurrency space. Like bitcoin, ethereum has its own blockchain, yet it has the ability for programmers to build applications that run on top of it. These applications use “smart contracts” that can be considered a form of programmable money. If someone wants to engage in a more complicated transaction—such as a house purchase or a business acquisition—they could do so with ethereum, without needing a trusted third party, such as a real estate agent or a lawyer, to complete the deal. Buterin envisions ethereum as “the world computer” in a future where the centralized applications of today that rely on trusted third parties are built in a decentralized manner on ethereum. In a report he wrote for R3, a financial innovation consortium, Buterin compared his creation to “the smartphone of blockchains.” He called ethereum “a universal platform where, whatever you want to build, you can just build it as an ‘app,’ and [e]thereum users will be able to benefit from it immediately without downloading any new special software.” Ethereum also allows for the creation of “tokens” for applications built on its network. These tokens have been distributed to the public in a new form of fund-raising known as an Initial Coin Offering, or ICO. The tokens themselves don’t typically offer any sort of equity in a particular project, yet they allow individuals to speculate on the future adoption of these systems. The explosion in popularity of these ICOs has been mind-blowing, with at least several projects launching every week, some with barely any sort of developed business model, and the SEC is taking notice. William Mougayar, a venture advisor and expert in ICOs, put it best when he expressed concern about their growing interest to bitcoin news site CoinDesk: “Yes, I want the ICO party to continue, but I’m seeing participants that are just there for the ride,” he wrote. “I’m seeing companies and ideas getting ICO-funded on a wing and prayer chance of being successful. . . . When the party gets overcrowded and unwanted visitors want it louder and bigger, events can turn to the unpredictable.” As integrity, security, and volatility continue to plague the networks that keep them operational, cryptocurrencies still have a tough road ahead. Despite this, major progress has been made to create more secure environments that help facilitate the exchange of digital currencies. With more widespread adoption and continued funding into the space, there are endless possibilities as to how cryptocurrencies and various forms of the blockchain could affect the world as we know it. This article is intended strictly for educational purposes only and is not a recommendation for or against cryptocurrency. Jake Rivas, CFP® is a financial advisor and CERTIFIED FINANCIAL PLANNER™ at i*financial located at 1901 NW Military Hwy Ste. 102, San Antonio, TX 78216. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at 210-342-4346 or by email at jake@youandifinancial.com.
The accompanying pages have been developed by an independent third party. Commonwealth Financial Network is not responsible for their content and does not guarantee their accuracy or completeness, and they should not be relied upon as such. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your representative. Commonwealth does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC. A Registered Investment Adviser. Fixed Insurance products and services offered through CES Insurance Agency. Authored by Chris Stuart, senior investment research analyst, at Commonwealth Financial Network®. © 2017 Commonwealth Financial Network® Identifying the Opportunity Costs  Last year I purchased my first home. See the picture? It's adorable! I was so excited to become a homeowner and live the American Dream. As I was shopping at Home Depot for paint colors the week after moving in, my phone alerted me of a severe hail threat in my area. Not thinking much of it, I went along with my evening. Little did I know that the hail storm would be the worst in San Antonio’s history and would damage my roof beyond repair. Even with my homeowners insurance in place, I had to use emergency savings to meet my deductible and replace it. At that point I knew…I was no longer a renter.
Finding an answer to the great debate of buying verses renting has become muddied over the last decade (remember housing market crisis, millions of homeowners underwater, circa ’08?). Also, with the millennial generation relocating more often, on average, than previous generations, it begs the question…”Is home ownership really the goal?” While we could crunch the numbers and make assumptions about interest rates, the housing market, and rental prices, it’s likely we would end up with the same conclusion…it depends. So let’s think about it from a different perspective, what is your opportunity cost? If you recall from Economics 101, opportunity cost is the cost of making one decision over the other. For example, let’s say you moonlight as a lounge singer and get paid $200 per gig. Instead of performing tonight, you decide to stay in and binge the latest season of Stranger Things. Your opportunity cost is the $200 you gave up to stay home. Applying it to buying versus renting, there are opportunity costs that we don’t always consider on both sides. Evaluating Opportunity Costs It’s yours Maybe you shouldn’t view your home as an investment? As we saw from the crisis of ’08, home prices do not always appreciate. Even if your home barely outpaces inflation, at the end of the day that house is yours, and that is worth something. Building credit In order to secure financing, you already need to have decent credit. But buying a house and keeping up with your payments can make a big impact on your credit score. Renting, on the other hand, only influences your credit if the apartment complex reports that information to credit bureaus. Most of them don’t, so your opportunity cost here is giving up the benefits home ownership has on your score. Money down Buying a home requires a lot of cash. That cash could be used to grow your wealth in ways other than real estate. While there are no guarantees with investing, it’s certainly an opportunity cost to keep in mind. Mortgage Interest Renting avoids paying a bank thousands of dollars in interest over the life of a mortgage. Money not spent on interest could be saved and invested, but the burden is on you to do it. Location Do you plan to sit tight for 5 to 7 years? The opportunity cost of paying rent for a long time could mean a missed opportunity to build some equity in an asset. Jake’s Two Cents If you find yourself in this debate, consider these factors:
Tools Are Cool The New York Times has an amazing rent vs. buy calculator available for free. This tool incorporates every important component of the home buying decision making process. From home price to the realtor’s fee, all of these expenses influence the outcome of your decision to buy versus rent. Check out the calculator here! Jake Rivas, CFP® is a financial advisor and CERTIFIED FINANCIAL PLANNER™ at i*financial located at 1901 NW Military Hwy Ste. 102, San Antonio, TX 78216. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at 210-342-4346 or by email at jake@youandifinancial.com.  You've written your business plan, you're excited about your business idea, and now it's time to get started. One problem: You don't have the financing to fully realize your dream. What are your options? Aside from using your own funds and borrowing from friends and family, there are numerous routes that you can take, and each has its advantages and disadvantages. Here are some of the major options available for funding your small business, and some of the pitfalls to avoid.
Bank loans Getting a loan from a local bank is the first option that most people consider when funding a new business. But it's often difficult to obtain a bank loan on the basis of a business plan alone. Banks can't use your idea as collateral. If you are thinking of getting a bank loan, you will likely need to secure the loan through other means, such as putting up your home as collateral. A bank loan may be more feasible, though, if you are purchasing an ongoing business outright. In that case, the assets or the business itself can be used to secure the loan. In any case, the advantage of a bank loan is that you won't have to give away any equity if your business succeeds. You will simply repay the loan and own your business outright. If your business fails, however, you may end up losing more than your business assets, depending on the terms of the loan. Angel investors Angel investors are private investors who contribute money to a business in exchange for an ownership interest. The obvious advantage of utilizing angel investors is that you don't have to repay a loan. However, you may have to give up a significant amount of equity (and control, depending on the security issued) to the angel investors. Angel investors typically expect to receive preferred equity security in exchange for their investment. Perhaps the greatest obstacle is finding the right angels. There are many people out there who want to invest in small businesses, but it's not easy to find the right fit. If you opt for this route, make sure that all parties have the same expectations regarding the prospect of success. You need to agree on how long you expect it will take for the business to be profitable (be aware that most small business plans are overly optimistic as to profit expectations) and whether your angels will hang in there with you if it takes longer than expected. Venture capital Venture capital firms may be a viable financing source for your business but, then again, they may not. Like angel investors, venture capitalists typically take an equity stake in your company, and most expect to receive preferred equity security in exchange for their investment. Most venture capitalists specialize in certain industries, and many provide corporate direction as well as financing (some angel investors may provide such direction, as well). It is this aspect of specialization that makes venture capital financing difficult for most new businesses to obtain. If your new business doesn't fit into the right niche, your company might not be a candidate for funding. What areas do venture capital firms focus on? Many firms specialize in high-tech, computer, and Internet services. Others specialize in scientific projects and inventions that require a lot of cash. In recent years, some organizations have emerged that focus on specific demographic groups, such as women entrepreneurs. The key is finding the right target before you make your pitch. Selling stock Selling stock in your company can take several different forms. We've all heard and read a lot about initial public offerings (IPOs). IPOs are stock sales in which previously private companies go public. An IPO is a possibility for an ongoing business, but it isn't likely to be a viable alternative for your new company. A private placement is less complex than an IPO and involves selling shares of stock to a select group of equity investors. The investors typically exercise control over the company in direct proportion to the number of shares that they own. Selling stock or other securities in your business generally requires compliance with federal and state securities laws. Seek the advice of an attorney experienced in these laws before your business issues any stock or securities. Crowdfunding An alternative to the traditional methiod of issuing stock--which can be a complex and cost-prohibitive process for smaller organizations-- is equity crowdfunding, or using the Internet to sell equity to small investors. On October 30, 2015, the Securities and Exchange Commission (SEC) released final rules on equity crowdfunding. While the forms that funding portals use to register with the SEC became effective early in 2016, the final regulations took effect on May 16, 2016. "Regulation Crowdfunding" put the following rules in place:
Companies that will serve as funding portals have their own set of regulations to follow. Among them are the requirements to take certain measures to reduce fraud risk, to make crowdfunding company information available on their websites, and to provide communication channels that allow discussion about platform offerings. Finally, before making any investment commitment, an investor must acknowledge that he or she has reviewed the funding portal's educational materials, understands that the entire amount of his or her investment may be lost and is in a financial condition to bear the loss of the investment, and has completed a questionnaire demonstrating an understanding of the risks of any potential investment and other required statutory elements. Factoring You've been in business for a while and you have customers, but your collections have been bad. You need cash now, but your lack of cash inflow is holding you back. What can you do? A common solution to this problem is factoring. Basically, you secure a loan (usually at a high interest rate) against your accounts receivable. Factoring companies aren't hard to find, and some offer better deals than others, but they are almost always going to charge you a much higher rate of interest than your bank. Thus, factoring is usually considered as an option only after all others have been exhausted. Economic development programs Many federal, state, and local government loan programs are available to small businesses. The Small Business Administration (SBA) is a good place to start. The SBA offers a variety of loan programs for very specific purposes:
Customer/supplier financing This is an option for a business that has a poor credit rating, and a realistic option that many small businesses overlook. In essence, your business bills for part of the services or products that it supplies up front. The rest of the fees are paid as the products are delivered or as the services are completed. This strategy is aggressive, but many of your customers can appreciate the need that a small business has to keep cash flow current, and won't object to your asking for partial payment up front. Jake Rivas, CFP® is a financial advisor and CERTIFIED FINANCIAL PLANNER™ at i*financial located at 1901 NW Military Hwy Ste. 102, San Antonio, TX 78216. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at 210-342-4346 or by email at jake@youandifinancial.com. The accompanying pages have been developed by an independent third party. Commonwealth Financial Network is not responsible for their content and does not guarantee their accuracy or completeness, and they should not be relied upon as such. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your representative. Commonwealth does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC. A Registered Investment Adviser. Fixed Insurance products and services offered through CES Insurance Agency.  Over the past few days, Hurricane Harvey has left physical destruction and human tragedy in its wake. This record-setting storm will certainly take its place with other major hurricanes, including Katrina and Sandy, in American history. Both Texas and Louisiana have been hit extremely hard by Harvey, and it will take months, even years, for those areas to recover. Our thoughts are with all of those affected.
The damage and ongoing effects for the country as a whole, however, will be harder to define. Perhaps the best way to determine what may happen going forward is to use past storms as a guide. What we know so far The immediate economic effects have been limited. Texas, and Houston in particular, is the core of the U.S. petroleum industry. Several major refineries have been shut down; this has limited gasoline production, and prices have increased in response. The stock market, on the other hand, has moved up over recent days, and it’s now close to an all-time high. Despite the local damage, then, the market’s reaction suggests the effect on the country as a whole has not been severe. This is consistent with what we’ve seen after past storms. Assessing the economic damage Although there has not been an immediate reaction, there certainly will be some economic damage. Specifically, we might see short-term negative results, as higher gasoline prices are likely to hit consumer confidence and spending. The destruction in the Houston area, which is the fourth-largest metro area in the country, will also hurt employment and economic growth until the rebuilding process begins. After Katrina, national employment growth slowed sharply, and the effect could be worse with Harvey. The good news is that this slowdown should be short lived. Refineries can be brought back on line relatively quickly, as we saw with Katrina. Further, employment growth has typically resumed within a couple of months after past major storms, including Sandy and Katrina. In general, those effects were sharp but short, which will presumably be the case with Harvey as well. The rebuilding process Once the storm passes and the immediate damage has been assessed, the rebuilding process will begin. This process can help the economy not only in the affected areas but also nationally. Thousands of jobs in every economic sector will be created in the rebuilding effort, and materials demand will increase spending substantially. Government aid will also help, with the additional spending stimulating companies throughout the country. Although analysts are projecting slower growth over the next quarter or two, the reconstruction process should help growth after that. Economy poised to weather the storm The U.S. economy is well poised to weather the damage from Hurricane Harvey. With confidence high and the economy growing faster than expected, even a slowdown would leave growth intact. The economy has successfully withstood many shocks over the past couple of years, and it is likely to endure this one as well. In all likelihood, the financial markets will keep following the economy. As such, we can expect the effects from Harvey to be limited and short term. Stock markets, in particular, usually look beyond short-term effects to the longer term, which would indicate that the potential for faster growth in the reconstruction process will help market performance. In fact, this is just what we have seen in recent days. It is also what has occurred with past storms, including Sandy and Katrina—suggesting that any damage to the markets from Harvey has already passed. Rise above The devastation from Harvey will take years to fully remedy—if it can be remedied at all. There will certainly be short-term effects, but the economy remains sound overall and is well positioned to keep growing. None of this is to minimize the tragedy underway in Houston and Louisiana, and unfortunately, many lives will never be the same. But this is a challenge, just as with Katrina and Sandy, that we will meet as a nation. We all need to help, and we will. And we will rise above. Certain sections of this commentary contain forward-looking statements based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. ### For IARs: (Advisor Name) is a financial advisor located at (DBA Name and Registered Branch Office Address). (He/She) offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. (He/She) can be reached at (Advisor Phone Number) or at (Advisor E-Mail). For Registered Representatives: (RR Name) is a financial consultant located at (DBA Name and Registered Branch Office Address). (He/She) offers securities as a Registered Representative of Commonwealth Financial Network®, Member FINRA/SIPC. (He/She) can be reached at (RR Phone Number) or at (RR E-Mail). Authored by Brad McMillan, CFA®, CAIA, MAI, senior vice president, chief investment officer, at Commonwealth Financial Network®. © 2017 Commonwealth Financial Network®  Why aren't Millennials investing in the stock market? Akin to the morning after a rough night, it appears as though Millennials haven’t recovered from one of the worst recessions in history. Becoming “of-age” at the peak of the 2008 financial crisis, Millennials were painfully exposed to a historic stock market crash, housing market crisis, and massive unemployment spike. The lingering effects of such an event have shaped the habits and behaviors of this generation, and not necessarily for the better. But, is this the only reason Millennials are avoiding stock investing? According to a study conducted by Bankrate[1] in 2016, 65% of Millennials said they do not invest their money in stocks or mutual funds, both inside and outside of retirement accounts. While the financial crisis has certainly contributed to some of the anxiety, I would argue that a lack of education, limited income, and a misunderstanding about the benefits of time in the market, contributes heavily to Millennial’s lack of desire for investing. Sine, Cosine, and Tangent? I remember in High School when I finally mastered the concept of Trigonometry. At the time, it felt like I could conquer the world; little did I know the mathematical concept would have very little relevance in my adult life. Financial planning fundamentals should be incorporated in mainstream curriculum, but it simply isn’t. Oftentimes, Millennials first experience with investing is at their first full-time job. When the HR department gives them a booklet explaining the benefits of 401(k)s, target date-funds, index investing, and compound interest. Huh? No wonder Millennials would rather opt out of retirement plans. They don’t understand where that deduction in their paycheck is going. Investing is for rich people Before working in the financial industry, I viewed investing as something that people with a lot of extra money engaged in. To me, financial planning was a service reserved for the wealthy and uber-wealthy. As a Millennial, we aren’t there yet. But that doesn’t mean we can’t start somewhere. Investing can be relatively simple, and can be started with very little. With a basic understanding of the mechanics, just a few dollars here and there could make a significant impact on your future. Access to investing is also becoming more convenient. With the rise of millennial financial planners and robo-advice platforms, the options are endless. Getting old is a drag, man… It’s true. Millennials are young, and the world is their oyster. Retirement is a distant relative that you don’t think about much, but you definitely should. Starting early can mean major gains in the long run. The concept is compound interest, which means interest that grows on top of more interest. As you can see from the graph below, starting early can literally mean a difference of thousands.  This is a hypothetical example and is for illustrative and informational purposes only. No specific investments were used in this example. Actual results will vary and are subject to change. Past performance does not guarantee future results. In the end, it’s about resilience Take the plunge. Use your exposure to the 2008 financial crisis as a lesson. Markets can come back. As Millennials, you are smart, thrifty, and inquisitive. Take these steps in preparing yourself for investing for the first time:
Jake Rivas, CFP® is a financial advisor and CERTIFIED FINANCIAL PLANNER™ at i*financial located at 1901 NW Military Hwy Ste. 102, San Antonio, TX 78216. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at 210-342-4346 or by email at jake@youandifinancial.com. [1] Bankrate Money Pulse survey, June 16-19 2016
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Investments are not FDIC- or NCUA-insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested. Securities and advisory services offered through Commonwealth Financial Network®. Member FINRA, SIPC, a Registered Investment Advisor. www.finra.org/www.sipc.org. Fixed insurance products and services offered through CES Insurance Agency. |
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