Industrial to Information Age: The Move

At first glance it appears that we are 100% integrated in the age of technology.  On closer examination however, Nadeem Shaikh writes in Harvard Business Review that we are actually faced with a widening of the “gap between technological and organizational progress.”

We must ensure that – as a community of forward-thinking individuals – we are embracing a more digital approach, shifting our focus in that area in all industries.  Ignoring signals due to concerns over short-term profits is not only futile, but could ultimately “cause negative ripples throughout broader capital markets.”

Thankfully ID Finance seems to have taken this on board.  The digital finance firm recently created a self-learning chatbot for MoneyMan, its online lending platform serving customers in Spain, Georgia, Russia, Poland, Kazakhstan and most recently Brazil.  In just a few short weeks more than a third of their customer requests were being processed automatically through the chatbot.  The way it works is by engaging new clients at the loan application stage and with registered users when they log in to their personal account, thereafter finding the data needed to ascertain loan eligibility, as well as offering recommendations of relevant products tailored to the individual’s requirements and financial prudence.

Meanwhile for those in the New York area earlier this month, the  In|Vest 2017 conference was well worth attending.  A perspective was provided on upcoming digital trends and strategies on wealth management and was invaluable for those in the fintech industry.  There were networking opportunities as well as demos and breakout sessions.

Ultimately the message we are hearing is to not let things go on ahead of us; get involved and get learning about digital upgrades.

West Lake Landfill: Separating Fact from Fiction

In the 1940s the United States was working hard to develop an atomic bomb at the end of World War II. One of the unfortunate by-products of nuclear research and development is radioactive waste. Much of that waste was disposed of in the West Lake Landfill 43 years ago.

As awareness of the dangers of radioactivity has increased in the intervening decades since the waste was dumped in the West Lake Landfill, but along with that awareness fear has also grown, often overblown and unwarranted.

Experts on radiation who have examined the West Lake Landfill say that the risks associated with the tiny amounts of gamma rays that are emitted are acceptable, similar to the risks of driving.

“All of this would be well within what we give people for medical procedures,” said Sasa Mutic, director of radiation oncology physics at Washington University School of Medicine. “At this level, there are many other things that are much riskier.”

The following video examines some myths and facts concerning the West Lake Landfill.

For more information please go to this article: Misplaced Fears?

Parents Paying Less for Kids College Fees

Nassau Hall, the original building and current administration building of Princeton University. Photo courtesy of Wikipedia.

Despite an improved economy and record-high stock market, parents are chipping in less for their kids’ college tuition than they have in the past.

That is according to a new study published by Sallie Mae, “How America Pays for College,” its tenth annual report.

Parents’ share of the tab for college fell to 23 percent, down from 29 percent of the average amount an ordinary family pays for college. In dollars that comes to $5,527 out of an average $23,757 yearly cost.

That number is the lowest its been since 2009, the smallest figure since the launch of the yearly study.

So where is the rest of the money for higher education coming from? Student loans have climbed to pay for 19 percent of the cost, compared to 13 percent in the past. The Sallie Mae report does not address the reasons for the changes, but there is some speculation.

“It could be price sensitivity,” says Mark Kantrowitz, publisher of Cappex.com, a college financing resource. “Parents may be telling students, if you want to go to that more expensive school, you’ll have to pay for it.”

Sallie Mae’s population seems to be lacking in planning ahead for college fees. The report reveals that 9 out of 10 respondents expect their kids to go to college, but only 4 of 10 budget for it.

There was some good news in the study. The report showed that 69 percent disregarded some colleges from their list under consideration because of the high price, a number significantly higher than the 58 percent of ten years ago.

Clearly, families that did plan for college for their kids, with savings plans like the 529 plan, getting to college is less troublesome.

Parents who save a little bit each month over time have a reasonable, fixed amount available to spend on college. If their kids want to spend more, then they will have to face larger loans when they graduate.

Ford Launching New Financing Scheme to Attract Young Drivers

Ford Motor Company will begin to offer a new type of car purchasing plan which will be a kind of middle ground between a traditional car finance program and a car hire agreement, which could be a model for the way cars will be purchased in the future.

The car manufacturing giant will start offering finance deals for as short a term as one month to buyers in the US who are not interested, or cannot afford longer, yearly leases. The “variable-term leases with flexible payment options” will combine maintenance, insurance and towing services into one monthly premium which can either be renewed or opted out of each month.

The hi-tech company Canvas will run the program, but Ford’s US consumer financial credit provider Ford Motor Credit, will back up the scheme. David McClelland, executive vice president of marketing and sales at Ford Motor Credit said his company “recognized the need for financial services and technology to facilitate our future vision.”

Canvas, formerly Breeze, was purchased by Ford at the end of 2016. The tech company is expert in providing short-term vehicle finance to drivers working for Lyft, Uber and others. Ford is using Canvas’s web-based platform, as well as their familiarity with short-term leasing, to attract a broader range of customers. The program is hoping to attract young drivers, especially those who would otherwise not be eligible for auto financing.

CEO of Canvas, Ned Ryan said, “Our mission is to identify, test and launch financial products that meet the changing needs of consumers. We’re addressing the void in the consumer space between daily rentals and long-term (financial) commitments.”

Barclays Penalized for Overcharging Customers

The US Securities and Exchange Commission announced that London-based Barclays Bank will be refunding its customers almost $100 million in fees that were wrongly charged.

According to the SEC the banking giant overbilled their investment clients by almost $50 million.

“Barclays failed to ensure that clients were receiving the services they were paying for,” said C Dabney O’Riordan, co-chief of the SEC Asset Management Unit.

The re-imbursement will total US$97, including the original $50 million overcharge plus a US$30 million penalty and another $13.8 million in interest. The money will be placed in a fund dedicated to reimbursement and compensation of the overcharged investors.

Barclays charged about 2,000 clients for due diligence and monitoring services which were not delivered as expected. An additional 63 investors paid too much for mutual fund sales charges as a result of the bank recommending pricier share classes.

The SEC also found that 22,138 accounts had billing mistakes.

Barclays has neither denied or admitted to wrongdoing. A formal expression of guilt could expose companies to harmful investor lawsuits. The SEC almost never requires any admission of guilt.

Bridgeton Landfill and the EPA

Since the Environmental Protection Agency (EPA) last year reached an agreement with Bridgeton Landfill, LLC, there has been a noteworthy shift on the enhancement of air quality in the region.  According to Mark Hague, Administrator for the EPA Region 7, “the installation and operation of these air monitors is an important step in evaluating the air quality in the community. These monitors are the latest in a series of steps taken by the Bridgeton Landfill under EPA and MDNR oversight to help ensure air quality around the landfill is protective of public health.”

It seems that already, positive results have been incurred from the new air monitors at the landfill sites. Further air monitoring is taking place in two other places too:  one near St. Charles Rock Road and the other near the Spanish Village water tower.  These locations were chosen by the EPA in an attempt to have the monitors are able to cover air emissions under various wind directions.  As well, they will bolster the actions being undertaken the nearby Rider Trail monitored by the Missouri Department of Natural Resources.

These monitors form just part of the $200 million that Bridgeton Landfill has invested in “odor control, environmental remediation and site improvements.”

America’s Best Destinations

Photo by Hromoslav.

TripAdvisor compiled its list of 25 of the country’s best destinations. Based on millions of voluntary reviews of travelers, the ratings are based on how well the many hotels, restaurants and attractions were rated during a 12-month time frame.

New York City was the winner as the overall best rated destination for the seventh year in a row. However, coming in second place, and third, and fourth, were different cities all in Hawaii. Lets take a look at the rest of the list.

5.    Las Vegas

Rainbow Falls in Hilo, Hawaii. Photo by Amitoda.

6.    Orlando
7.    Chicago
8.    San Diego
9.    San Francisco
10.    Key West
11.    New Orleans
12.    Washington, DC
13.    Sedona, Arizona
14.    Charleston, South Carolina
15.    Mount Desert Island, Maine
16.    Savannah, Georgia
17.    Branson, Missouri
18.    Nashville, Tennessee
19.    Jackson, Wyoming
20.    Moab, Utah
21.    Asheville, North Carolina
22.    Boston
23.    Napa
24.    Miami Beach
25.    Aspen

Mandala Funding Ltd Stakes PT Sugih Energy with $41 million Loan

Cayman Islands based Mandala Funding Ltd has agreed to a funding scheme worth $41 million for the oil and gas exploration company known as PT Sugih Energy, through its subsidiary Eastwin Global Investments Ltd.

The recently appointed finance director of Sugih Energy, Rahman Akil said that $31 million would be used to pay for the Lemang oil and gas development. Sugih Energy has a 34 percent stake in Lemang.

The cost of development which was promised was for $11 million in 2016 and $20 million in future cash for the coming year of 2017.

“We will use the other $8 million to refinance corporate’s debt and the remaining $2 million for corporate’s cash,” Rahman said.

The Lemang Block exploration was approved by the government of Indonesia in 2007. In November of last year the production phase began in the Akatara field, starting with 300 barrels of oil per day.

“We plan to drill five more wells in Akatara field, increasing the production to 1,500 bopd at the end of the year,” he said.

Mandala Funding, the lender of the financing, is a subsidiary of Singaporean Mandala Energy Ltd, which also has an interest in Lemang Block. Ownership of the block is shared by three companies: PT Sugih Energy Tbk through Eastwin Global Investments Ltd with 34 percent shares; Ramba Energy Ltd through PT Hexindo Gemilang Jaya with 35 percent shares; and Mandala Energy Ltd with 31 percent shares.

New Program Launched to Help Students Learn About Educational Loans

It is quite common for students seeking higher educations after high school to take out student loans to help finance their journey through college or university. Unfortunately many students find themselves weighted down by debt when they graduate, or worse, when they quit school without a degree.

The problem has reached outlandish proportions with current student debt estimated to be the mind-blowing amount of $1.26 trillion. The sheer magnitude of the debt is motivating the US Department of Education to get into gear with a new program designed to teach college-bound students all about federal student loan programs. This experimental program, which will present the advantages and disadvantages of student loans, will hopefully help students make the right choices for them.

“It’s important for students to make good decisions about their student loan borrowing,” said U.S. Under Secretary of Education Ted Mitchell. “Students at these institutions will receive proactive and ongoing counseling and they will gain tools to better understand and manage their own finances.”

Some students leave school with staggering debt, in some cases as much as hundreds of thousands of dollar’s worth.

The program, which is considered an experiment, will be introduced in 51 post-secondary institutions. Thirty-five are public, two-year schools, 14 are public four-year institutions, and one is a private, non-profit four-year school. The last is a proprietary institution.

“This experiment will yield important information about whether additional counseling improves student outcomes, including program completion and loan repayment,” Mitchell added.

Kick the Bad Habits of Poor People

indexThere is more to increasing wealth than having a good job and a budget. Avoiding the pitfalls of some bad habits can also go a long way in helping you achieve your financial goals more quickly and easily.

  • Having bad physical habits can do more than just harm your health. For instance, one study on people who smoke found that the net worth of heavy smokers was $8,300 less than non-smokers. Moderate smokers saw a $2,000 differential. The average effect of smoking on wealth was a 4 percent decrease for each year the person smoked, the approximate number spent each year on cigarettes. This study did not examine the negative effect smoking has on the cost of health insurance, and the extra time spent at the doctor. In other words, stop smoking and you will significantly improve your financial situation.
  • Who your friends are and what their financial habits are can have a huge effect on a person’s own habits. If your friends spend their weekends drinking, eating at expensive restaurants, and shopping at the mall, there is a good chance that you will, too. Start hanging out with people that spend their time and money wisely, and some of that wisdom, and wealth-building habits, should rub-off on you.
  • The way your parents raised you is a big influence on your own money habits. Unfortunately, you can’t pick your parents, but you can make a conscious choice to make different choices when it comes to your own money. Take a closer look. Did one or both of your parents gamble too much? Drink? Max out their credit cards? Don’t let their bad lifestyles effect you negatively. Rather use them as examples of what not to do, and you can go beyond them in your ability to build your own, and your family’s financial security.