Dividend investing is like that “good job” your parents always wanted you to get. Sure it’s safe, has decent benefits, and it pays alright, but at what cost? How long do you have to work there to reap the benefits, and is it even worth it if you hate it?&nbsp; Dividend investing is similar in the sense that yes, it can potentially provide some nice, definitively passive income, but it also presents itself with its own intrinsic pitfalls that accompany its benefits.Let’s take a 1-minute survey course on dividendsA dividend is something a company pays out to its shareholders at predetermined intervals of time. This usually comes at the frequency of four times per year, quarterly, or in some cases semi-annually or annually. This can be in the form of cash, or it could come by way of more shares in the company too.&nbsp; Companies pay a set dollar amount per share basis. If you own one share of AT&amp;T, they will pay you $0.52 per quarter, per share owned. This makes their dividend yield about 6.8%, which is very high. Yield is calculated by dividing the annualized dividend payout by the current share price. (It’s actually about 7.17% as of April 13th, based on their current share price.) Dividends, especially good ones, typically come from companies that have reached maturity and find themselves in established industries with predictable profits. Think oil &amp; gas, banking, healthcare, utilities, etc. They’re beyond the growth phase where they reinvest heavily and take on expansion debt, and they reward investors for their equity.So, what's a good dividend? In general terms, anything over 2% is considered to be a good dividend payout rate, but that’s also the broad average of the S&amp;P 500, and as seen with AT&amp;T, you can find much better than that if you’re a diehard dividends fan.&nbsp;IBM has a 5.3% yield, Realty Income, a REIT, offers 4.6%, and Walgreens is at 4.5% now, partially due to its recent price drop.Considerations when dividend investingLet’s be clear, dividend investing is not a strategy to produce investment income fast, or at all, unless you have a lot of cash, a lot of patience, or both. You would need to own 1,000 shares of that high yield AT&amp;T stock to produce&nbsp;$2,000 a year in dividend income. That’s a $29,000 investment, so it would take you 15 years to make your money back at present value.&nbsp; Dividend investing is not for the faint of heart, the light of accounts or the impatient. Despite this though, that doesn’t mean that over time by investing money you don’t need,&nbsp;you couldn’t build up a nice supplementary income. If you were able to spread a few hundred thousand dollars of retirement funds across multiple well-paying dividend stocks, this could become a viable option.But don't forget that the stock price is still relevant. A dividend stock is something you want to be able to ease into over time, and eventually, sink a lot of funds into something that can make your dividend payouts amount to something relevant. You don’t want to have to concern yourself with market fluctuations and a volatile stock price.&nbsp; Picking a dividend stock that’s presently overvalued or just doesn’t forecast well for the long-term future can be a risky play. Sure you may be getting a great dividend payout, but if your principal investment value is melting faster than the ice caps because the market is becoming speculative of the business or the industry it’s in, then you’ve just negated the point of dividend investing.This is why it’s important to pick well-established businesses with a long-term outlook. A dividend stock that can not only create income but preserve the value of or even potentially grow the principal investment amount is the ultimate goal here.So is it worth it?Whether or not dividend investing is worth it depends on your financial goals, risk tolerance, and more. Got a lot of cash on the sidelines and want some truly passive income? This is for you. Need some money quickly? Looking for an undervalued growth stock? Steer clear, there are other investment strategies for you.💡&nbsp;If you are looking for high-dividend investments, but you don't want to pick individual stocks, take a look at <a href="https://www.askfinny.com/bot?s=High-Yield%20ETFs" target="_blank">high-yield ETFs.</a>&nbsp;Just keep in mind that high yield&nbsp;≠ high return.&nbsp;📊 Wondering what are&nbsp;the key&nbsp;dividend strategies&nbsp;and how their returns stack up?&nbsp; Take a look at&nbsp;<a href="https://www.askfinny.com/bot?s=Dividend%20ETF%20Strategies" target="_blank">Finny's dividend strategy scanner</a>.&nbsp;&nbsp;

Dividend investing is like that “good job” your parents always wanted you to get. Sure it’s safe, has decent benefits, and it pays alright, but at what cost? How long do you have to work there to reap the benefits, and is it even worth it if you hate it?  

Is dividend investing still worth it?

INVESTING

From hidden subscriptions to shopping online, you're probably spending way more than you realize. Since we pretty much haven't left our homes for the better part of the year, this has only likely gotten worse. Without physical bills or regular reminders, it's easy to forget about what we're spending and how.&nbsp;&nbsp; This excellent article from the <a href="https://www.washingtonpost.com/technology/2021/01/23/tech-money-tips/" target="_blank">Washington Post</a> makes 4 great suggestions on how you can clean up your online spending and be more mindful of your budget.&nbsp; Schedule a subscription intervention<ul><li>Go through your credit card bill, and see who is charging you.&nbsp; </li><li> Go to your app store settings and make sure you monitor what you've signed up for or if there's a free trial about to end.&nbsp;&nbsp;&nbsp; </li><li> Keep a list or spreadsheet for your subscriptions. Sometimes these recurring payments are monthly; other times, they can be annual. Yes, those $5 or $10 charges may seem small. But do you know how many of these subscription services are you using? Streaming apps alone can come out at around $900 a year or $80 a month.</li><li>Tooltip&nbsp;💡—if you prefer to automate the tracking of your subscriptions and expenses, consider a&nbsp;budgeting tool like <a href="https://www.awin1.com/cread.php?awinmid=18709&amp;awinaffid=795341&amp;p=" target="_blank">Tiller Money</a> (for google sheets geeks) or <a href="https://youneedabudget.a4xxmk.net/EabvJX" target="_blank">YNAB</a> (user-friendly).</li></ul> Share, negotiate or take a break from accountsA surprising amount of payments, such as cable, car insurance, credit card interest rates, and cellphone service fees are negotiable. Sometimes you can lower these fees with a simple phone call or threaten to switch to another company. <ul><li>Tooltip 💡—if you don't want to do this yourself across a dozen or more services, an example of a super easy tool for this is <a href="https://truebill.i679.net/kL20M" target="_blank">Truebill</a>—they will negotiate most bills on your behalf and take a cut of the savings they find and negotiate for you.</li></ul>Sharing your subscriptions or pausing your accounts if you're on the fence can also be a great way to bring your expenses down.&nbsp; Comparison-shop on delivery appsBefore shopping for groceries or ordering delivery, compare prices between different apps, compare the delivery fees, and other service fees.&nbsp; But if possible,&nbsp;just order&nbsp;from the restaurant or grocery store directly. They'll get a larger share of the profits instead of a crushing third-party fee.&nbsp; Bring your cloud storage bills down to earthFigure out how much storage you actually need, audit your Amazon, Google, Apple, Dropbox, and Microsoft storage, and cut your costs. You're probably paying so much more than you actually realize because you likely signed up for multiple services when you ran out of space.

From hidden subscriptions to shopping online, you're probably spending way more than you realize. Since we pretty much haven't left our homes for the better part of the year, this has only likely gotten worse. 

Clean up your online spending

MONEY TIPS

RIP Grumpy Cat

Have you heard of Jeremy Grantham, a legendary investor and founder of&nbsp;investment firm&nbsp;GMO?&nbsp; Well, he's&nbsp;<a href="https://financialpost.com/moneywise/jeremy-grantham-says-the-next-decline-will-be-bigger-and-better-than-anything-in-u-s-history-here-are-3-of-his-safe-haven-stock-picks" target="_blank">warning us again</a> of an epic bubble.Nearly a year ago, he forewarned that a long bubble had fully matured and that "extreme overvaluation, explosive price increases,&nbsp;and hysterically speculative investor behavior will be recorded as one of the great bubbles of financial history..."&nbsp;So, OK.&nbsp;Even if he's right, what should you do about it?&nbsp;If you're&nbsp;invested, stay invested.Selling on fear and panic won't get you where you want or need to be!&nbsp; Market timing doesn't work most of the time. If you invested $10K in the S&amp;P 500 from Jan 1, 1999 to Dec&nbsp;31,&nbsp;2018, your investment&nbsp;would be worth $29,845 if you stayed fully invested.&nbsp; If you missed the top 10 days of performance over this 20 year period, your account would be worth $14,979.&nbsp; If you missed the top 30 trading days over this period, your account would be worth $6,316.&nbsp;&nbsp;<a href="https://www.askfinny.com/user/3905" target="_blank">Coach Ilene</a>&nbsp;shares that&nbsp;radical moves in portfolios almost always end up being a mistake.&nbsp; It's better to make small tweaks,&nbsp;prepare for a potential drop (which usually corrects decently) and be ready for new opportunities. As businesses change, we can then begin to identify those companies that will be better poised to grow.&nbsp;The market is like a roller coaster...If you buckle up and ride it out, you will most likely end up fine.&nbsp; But if you try to hop in or out&nbsp;of it while it's twisting and turning... well, good luck to you!If you're uncertain about the future but want to keep investing, go with <a href="https://www.askfinny.com/user/539" target="_blank">Coach Vineet's</a> suggestion to dollar-cost average.&nbsp; That means to&nbsp;contribute a set amount of money on a regular (e.g., weekly,&nbsp;monthly) basis into your portfolio, regardless of market conditions.&nbsp; It's a simple way to make consistent contributions into an investment account without trying to predict when the market's going up or down.💡 The #1 money bias avoid? It's <a href="https://www.askfinny.com/bites/the-1-money-bias-to-avoid-nov-19-2021" target="_blank">herd mentality</a>.

Have you heard of Jeremy Grantham, a legendary investor and founder of investment firm GMO?  Well, he's warning us again of an epic bubble.

How should you deal with a major market downturn?

Have you heard of freezing your credit?&nbsp; If not, consider it. It's one piece of advice the Finny community shared&nbsp;to protect yourself from identity theft.&nbsp; When 33% of US adults have experienced identity theft—a figure&nbsp;twice the global average—it&nbsp;may be the right thing to do preemptively!How does it work?&nbsp;&nbsp;It prohibits the three credit bureaus from sharing the contents of your&nbsp;credit report to anyone requesting the data.&nbsp; Without that credit report,&nbsp;lenders will not extend credit to you&nbsp;or anyone claiming to be you,&nbsp;which helps to prevent new credit accounts from being created in your name.&nbsp; Freezing your credit isn't going to make all potential fraud go away.&nbsp; But it sure as hell will make it more difficult for someone&nbsp;to use your stolen data to open up&nbsp;accounts in your name.&nbsp;How do I freeze my credit?&nbsp;&nbsp;Visit the websites of each of the three credit&nbsp;bureaus (Experian,&nbsp;TransUnion, and&nbsp;Equifax) and request a credit freeze.&nbsp; It's free, easy to do within minutes online,&nbsp;and&nbsp;doesn't have any negative consequences on your credit score.&nbsp; If you need to unfreeze your credit, you can do so online and your credit report will usually become available within half an hour.Did you know that 1 in 8&nbsp;Americans don't know what their credit score is?&nbsp;&nbsp;And of those who have checked their credit score, a whopping 46% haven’t done so in over two months?&nbsp;&nbsp;The good news is that most credit card firms, banks, and companies like <a href="https://creditkarma.myi4.net/meWMa" target="_blank">Credit Karma</a> make it easy and free to check your credit score.&nbsp; Make sure you're checking your score regularly, and if you're not actively applying for new credit accounts right now... freeze your credit!Follow the discussion on Finny:

Have you heard of freezing your credit?  If not, consider it. It's one piece of advice the Finny community shared to protect yourself from identity theft.  When 33% of US adults have experienced identity theft—a figure twice the global average—it may be the right thing to do preemptively!

Should you freeze your credit?

CREDIT SCORE

Emerging markets (EM) can arguably be a powerful complement to a largely US-based investment portfolio but they are often misunderstood. What are they exactly, and what are their benefits and tradeoffs? If you're an investor who's not familiar with emerging markets,&nbsp;we’ll attempt to simply break it down for you right here. What's an “emerging” market?Emerging markets usually refer to&nbsp;economies showing strong economic growth while showing some characteristics of a developed economy. In other words, they are countries&nbsp;in transition, usually from a place of "developing" to "developed." Which countries are&nbsp;emerging? Research organizations and data providers each have slight variations in what they&nbsp;determine as an EM country. For example, the IMF has classified <a href="https://www.imf.org/en/Publications/WEO/Issues/2021/10/12/world-economic-outlook-october-2021?utm_source=thegistbyfinny" target="_blank">23 nations</a> as emerging, the S&amp;P picked <a href="https://www.spglobal.com/spdji/en/indices/equity/sp-emerging-bmi/#overview?utm_source=thegistbyfinny" target="_blank">23</a>&nbsp;and&nbsp;MSCI has <a href="https://www.msci.com/our-solutions/indexes/emerging-markets?utm_source=TheGistbyFinny" target="_blank">26 countries</a>&nbsp;on the list.<img src="https://finny.s3.amazonaws.com/images/1f46e335-0f27-4aa3-ae1b-24940e02ede1.png" style="width: 344px; height: 293px;"> What's the appeal?<ul><li>Economies and markets mismatch: We may be underestimating the benefits of EM because the size of their financial markets are usually small relative to the size of their&nbsp;economies. For example, emerging&nbsp;countries&nbsp;account for 45% of the world's GDP, but their stock markets are worth only 29% of the world's total.</li><li>Bright outlook: Strong global GDP growth is expected, according to the IMF. They forecast an&nbsp;average annual GDP growth of 5.5% for emerging markets in 2021-2023, compared with 3.5% for developed economies.&nbsp;That's&nbsp;positive for emerging market equities, which tend to perform&nbsp;better when demand for commodities and exported goods is strong.</li><li>Diversification for US investors: EM markets are less correlated with US markets, and can also offer currency diversification, which will come in handy when the US dollar is weak.</li><li>The long-term growth trends: According to&nbsp;<a href="https://www.schroders.com/en/strategic-capabilities/emerging-markets/infographic/?utm_source=thegistbyfinny" target="_blank">Schroders</a>, EM represents 87% of the world population,&nbsp;45% of global consumer spending, and in less than 20 years, they are expected to account for 57% of the world's total GDP.&nbsp;Other growth drivers include urbanization, tech &amp; industrialization driving economic growth and the rising middle class driving consumer spending.</li></ul>What's not so appealing?<ul><li>Higher risk, higher volatility:&nbsp;EM stocks are generally more volatile than developed market (DM) stocks. Over the last ten years, the standard deviation, which measures volatility, was 30% higher for EM than DM stocks, according to Morningstar.</li><li>Now about that higher volatility: It stems from&nbsp;higher economic risk, political risk, currency risk and liquidity risk. For example, consider the persistence of the <a href="https://www.bbc.com/news/business-58182658" target="_blank">Chinese government's checks and actions</a> towards internet-related companies. And when an EM currency is declining, your investment is worth less when converted to USD.&nbsp; There's also the risk it may be easy to bring money in, but not always to get it out.</li></ul>Ways to get EM exposureFirst, determine whether going the passive or active route serves you and your long-term goals best. Do you want to go the way of a low-cost index mutual fund/ETF or pay for the expertise of an active manager? Do you want&nbsp;broad and diverse EM or a single EM country exposure?&nbsp;How much does your risk tolerance allow you to allocate? How long is your time horizon?&nbsp;If you do decide to undertake investing internationally on your own, as always, don't forget to rely on some old-fashioned due diligence.&nbsp;And if you don’t have all day to scour the internet for their life story, consider a broad-based basket of&nbsp;emerging market countries through an index fund or ETF.💡 Related broad-based EM&nbsp;fund ideas:&nbsp;iShares Core MSCI Emerging Markets ETF ($IEMG),&nbsp;Vanguard Emerging Markets Stock Index Fund ETF ($VWO),&nbsp;iShares MSCI Emerging Markets ETF ($EEM)

Emerging markets (EM) can arguably be a powerful complement to a largely US-based investment portfolio but they are often misunderstood. What are they exactly, and what are their benefits and tradeoffs? If you're an investor who's not familiar with emerging markets, we’ll attempt to simply break it down for you right here.

Zooming in on emerging markets

Giphy

Death, Taxes, and inflation. That’s how the old adage deserves to be modified after 2021, a year where all of us probably learned a thing or two about inflation and its threats as the numbers have climbed higher each month.&nbsp; It was <a href="https://finance.yahoo.com/news/fed-chairman-jerome-powell-retires-the-word-transitory-in-describing-inflation-162510896.html" target="_blank">supposed to be transitory</a> though, right? Well,&nbsp;the vagueness of it had been a blessing for economic prognosticators and prophets alike as inflation persists past the originally anticipated timeframe.&nbsp;The current state of affairs CPI data comes out about 10-13 days into each month. Our last report came on November 10th, and the November numbers will be in about a week, next Friday. *Fingers crossed.* Our most recent report left much to be desired, and many investors are uneasy at the record numbers.&nbsp; <ul><li> October data showed a 6.2% year-over-year increase in prices, which was the largest leap the CPI has taken over a 12 month period since 1990 as it racks up its fifth straight month over 5%. </li><li>During the month of October alone, the CPI rose almost a full percentage point,&nbsp;more than doubling its September weigh-in.</li><li>This week, Fed Chair Jerome Powell said that the central bank will discuss accelerating its&nbsp;tapering plans at its December meeting. This shouldn't come as a surprise&nbsp;as we see new developments factor in: the omicron variant and the fact that Powell has been reappointed to Fed chair.</li></ul>The causes and effects Certain areas have been hit harder than others. Gasoline prices, new and used vehicles and food headline the list, but few things are exempt. One survey showed that 60% of small business owners said they&nbsp;had to raise prices in the last 90 days, 80% reported higher labor costs, and 72% said vendors had increased prices as well.&nbsp; As usual, these implications have been derived from an array of causes, as we continue to see from the headlines. Catalysts like supply chain log jams, and shortages spanning from employees to semiconductors needed for a long list of products all eventually have downstream effects on the end-user and their wallets.&nbsp; All things considered, inflation seems hesitant to dry up until the things providing its spark are resolved first. We can’t foresee the future, but as we evaluate the present situation, let's remember that cooler heads and staying objective prevail.

Death, Taxes, and inflation. That’s how the old adage deserves to be modified after 2021, a year where all of us probably learned a thing or two about inflation and its threats as the numbers have climbed higher each month.  

Should we be freaking out over persisting inflation?

ECONOMY

Now that you've been refreshed on the numbers on our current inflationary predicament, it would seem fair to assess that buying things is just kind of... not the move at this moment, right? Right. If there’s one surefire way to avoid paying a built-in inflation tax right now, it’s to simply not buy anything. Sounds ridiculous of course, because we all have things to buy, but surprisingly enough, people are coming together to make it possible through giveaway groups, with movements like the “<a href="https://nypost.com/2021/11/30/thrifty-buy-nothing-groups-are-sweeping-nyc-and-the-us/" target="_blank">Buy Nothing Project</a>” hitting over 4.2 million members.Buying nothing isn’t always feasible though, so here are some quick tips to sidestep the inflation tax. <ul><li> Buy in bulk: Turn your weekly list into a monthly list. Buying items in bulk is almost always cheaper than consistently buying smaller amounts anyway, but it can also save you even more in the event that inflation continues to push higher, and that gets priced into your weekly shopping list too.&nbsp; </li><li>Procrastinate discretionary spending: Assuming this upward price pressure will eventually be alleviated, we should anticipate that prices on everyday goods and discretionary items will also eventually regress a bit as well, or maybe at least by then wages will keep up. In this way, procrastinating the purchase of things you don’t really need can save money, even if you can afford it.&nbsp; </li><li>Store your money somewhere with an ROI: While it is prudent to keep your emergency fund in something like a savings account where it’s accessible in times of need, anything excess you don't need to tap into should probably be moved elsewhere that actually has a noticeable ROI. It’s tough to find a savings account offering anything above 0.5% these days, and there are plenty of safe alternatives with better returns.</li></ul>💡 <a href="https://www.askfinny.com/bites/a-best-kept-investing-secret-hidden-in-plain-sighta-7-us-savings-bond-nov-23-2021" target="_blank"> 7% yield on a US savings bond</a>, anyone?

Now that you've been refreshed on the numbers on our current inflationary predicament, it would seem fair to assess that buying things is just kind of... not the move at this moment, right? 

Buying nothing is the hot new trend

It seems you can't go a minute without hearing or reading about crypto these days. While some of us have already jumped on the bandwagon, others who
haven't yet gotten around to it may be&nbsp;too uncertain about how to get started. Well, first thing's first: buying and saving crypto is nothing like putting cash or fiat currency in a savings account at your local bank down the street. When you buy and save crypto, you need a crypto wallet that stores your private key,&nbsp;keeping your crypto safe and accessible.What is it exactly? And what about those keys?Simply put a crypto wallet is an app that allows you to store and hold your cryptos. A hot wallet is one that's accessible online, but more susceptible to online hacks. However, because it's connected to the internet, it's faster and easier to trade, receive and spend your crypto.&nbsp;On the other hand, your cold wallet is a physical device and isn't connected to the internet, making it more secure but less convenient.&nbsp;And regardless of your wallet type, it'll consist of two keys: a&nbsp;private key unique to you and a public key derived from the private key. The latter
acts as the address that is needed to make crypto transactions within the wallet. 
A crypto wallet can have multiple
public keys meaning that you can have more than one public address, which&nbsp;can be used to receive crypto into the same wallet. 
&nbsp;Your private key is your own private&nbsp;password that gives you access to your funds. Unlike a bank password, you can’t reset your private key. If you lose your private key, you may lose access to your funds altogether, unless your exchange platform can help restore it (but don't bank on it).&nbsp;How a crypto wallet works&nbsp; &nbsp;All transactions are recorded on
the blockchain, a public ledger, in the form of "blocks." A crypto
wallet allows key holders to interact with their crypto&nbsp;held on the
blockchain. When you need to receive funds in your crypto wallet, get your
public key and share it with the person you need to receive cryptocurrency
from. To unlock the funds and use them, you need to match your private key with
your public key. On the other hand, you need the receiver's public key to send
money from your wallet.
&nbsp;
Some parting tipsCrypto wallets are a convenient way
of sending or receiving crypto. While making a crypto transaction, make
sure you are sending money to the wallet that accepts the type of currency you
are sending; otherwise, your money will be lost forever. 
Also, keep your private key safe at
all costs. We suggest writing down your private key and keeping it somewhere safe where you won't forget it.&nbsp;If it ends up in the wrong hands, whoever has access to it will have complete control of your crypto.&nbsp;💡 Take Finny's bite-sized lesson on cryptocurrency basics to learn more:

It seems you can't go a minute without hearing or reading about crypto these days. While some of us have already jumped on the bandwagon, others who
haven't yet gotten around to it may be too uncertain about how to get started.

What's a crypto wallet?

CRYPTOCURRENCY

Consumers have&nbsp;stacked up an extra $5.4 trillion in savings over the last year and a half, which is a number that amounts to about 6% of the world’s globally annualized GDP as of late March. Undoubtedly, a bit&nbsp;of that money is&nbsp;in the hands of house-hungry Millennials, some of whom may feel they’ve been standing at the door of the homeowners club for over a decade now.These extra savings, whether it be a result of government stimulus checks, lack of spending over the last 18 months due to the pandemic, or both, can be visibly seen searching for an entrance to the housing market, as the prices bear it out. Savings, shortages, FOMO?<img src="https://finny.s3.amazonaws.com/images/20dfa85f-5146-4bbe-a2f7-5c0006007615.png" style="width: 444px; height: 268px;">Image source: BloombergAccording to Knight Frank, a real estate consulting firm, real estate prices have risen at least 10% in over 43 cities around the globe over the last year, with some of those locals harboring increases north of 20-30%. A post-pandemic rebound of sorts was to be expected, but it seems a robust recovery&nbsp;fueled by super-easy monetary policy and extra $5.4 trillion savings is well underway.&nbsp;As the generation meme'd&nbsp;for moving back in with their parents after college, Millennials are now exhibiting a kind of pent-up enthusiasm as they&nbsp;consider more space as well as longer-term financial investments.&nbsp;After what feels like years of missed opportunity, fear of missing out or FOMO has them feeling like it’s time to pull the trigger on a home.This effect has driven real estate prices beyond what buyers would, on average, be able to afford,&nbsp;resulting in a hot housing market at the head of the inflation train. And to note, only 47.9% of millennials owned homes as of the end of 2020, and this trails all other generations above them by at least 20-30%.

Consumers have stacked up an extra $5.4 trillion in savings over the last year and a half, which is a number that amounts to about 6% of the world’s globally annualized GDP as of late March. Undoubtedly, a bit of that money is in the hands of house-hungry Millennials, some of whom may feel they’ve been standing at the door of the homeowners club for over a decade now.

Real estate FOMO

HOUSING

Believe it or not, credit card debt forgiveness is a real thing. Well, if your definition of real is something with several caveats and potential long-term consequences that follow.Credit card debt forgiveness is real, but here are some of the implications of it.Credit card debt “forgiveness” happens when you fail to pay the minimum balance on your account for 180 days or more. That forgiveness is actually a charge-off, which will go on your credit report and likely do some significant damage while it sits there like a dilapidated house in the middle of town. So is it a myth? No, it’s very real.You won’t be able to use your card or make any payments on that balance anymore, because your debt has likely now been sold to a collection agency whose sole business venture is to collect on the crumbs of debt that’s expired.You’ll likely be contacted by them at some point, and should be careful about what information you give regarding your financial situation. This debt can usually be settled at a lower price, whether done by yourself or by way of hiring a debt relief company. Borrowers can usually settle for about 50% of what is owed in total. This is best done, and most appealing to the lender or collector, if offered in a lump sum amount.Tax implications are a thing as well, with the creditor being required to issue you a form 1099-C if a collector forgives more than $600 worth of debt in any given year. If you settle with a collection agency to pay $5,000 on a total debt of $10,000, then $5,000 will be reported as income on that form.If necessary though, debt forgiveness can be an option.If you have no way to pay your bill on time due to other financial obligations, debt forgiveness can save you in certain cases. It can prevent needing to file bankruptcy, save you hundreds or thousands of dollars, and if your credit is already bad, well... this option won’t be able to create much exponential damage if it’s your only choice.📚 Interested in learning more about this? Finny's bite-sized&nbsp;lesson goes into what debt settlement means &amp;&nbsp;how it works:

Believe it or not, credit card debt forgiveness is a real thing. Well, if your definition of real is something with several caveats and potential long-term consequences that follow.

Credit card debt forgiveness: myth or fact?  

DEBT

Technological advancements are happening all the time, and at an increasingly faster rate as our innovations compound upon one another.&nbsp; One of those technologies on the rise is the concept of web3—the impacts of which could be far-reaching, not only for investors but a new and better future&nbsp;internet.The idea behind web3<ul><li>We live in web 2.0 now. This is the internet era filled with bountiful resources and tons of easily accessible information and people alike. The problem is, it’s&nbsp;centralized by what we could dumb down to something like “big tech.” Example: Twitter can censor what someone tweets.</li></ul><a href="https://medium.com/fabric-ventures/what-is-web-3-0-why-it-matters-934eb07f3d2b" target="_blank"><img src="https://finny.s3.amazonaws.com/images/bc76f7bf-6dd6-40f6-8a7f-852ea15a505d.jpg" style="width: 540px; height: 308px;"></a><a href="https://medium.com/fabric-ventures/what-is-web-3-0-why-it-matters-934eb07f3d2b" target="_blank"></a>Source—<a href="https://medium.com/fabric-ventures/what-is-web-3-0-why-it-matters-934eb07f3d2b" target="_blank">Fabric Ventures</a><ul><li>Based on decentralization. In&nbsp;web 3.0, however, there is no central power that controls decisions and so tweets couldn't be censored.&nbsp; Also, intermediaries like banks would be bypassed,&nbsp;minimizing transactions costs; and&nbsp;our personal data would no longer be monetized to the extent it is now, with the end goal being more freedom for us layman users.&nbsp;</li><li> Simply defined. Web3 means a decentralized app that's run on the blockchain, specifically the Ethereum blockchain. That means it's open-source and extremely efficient because anyone can participate—the community is the one with the power.&nbsp;</li><li>Web3 doesn't equal crypto.&nbsp;While it's true that lots of folks in the crypto space are also the ones talking about web3 right now as crypto is the first use of the blockchain technology, web3 advocates are focused on the blockchain tech itself and its far-reaching future potential.&nbsp;</li></ul>Future implicationsWeb3 elicits a more democratic internet where the governance structure is one of mutual ownership and there's no risk of being blocked or denied access to services.&nbsp;NFTs as a marketplace of digital assets and creative expression is an example that the movement towards web3 has begun. But only pieces of web3 exist today and much more needs to be done to build and scale the technology behind the aspirational vision.&nbsp;Just as we've seen companies readying for web3, like Coinbase, rise to power, there's no doubt we'll see&nbsp;similar trajectories for companies with vested interests in this area of technology. While it is an entirely new frontier that would take some studying to truly understand, it could present a promising opportunity even in today's traditional markets.💡 Related companies and funds:&nbsp;&nbsp;Blockchain ETFs, such as Global X Blockchain ETF ($BKCH), Siren Nasdaq NexGen Economy ETF ($BLCN),&nbsp;Amplify Transformational Data Sharing ETF ($BLOK), and companies such as Coinbase ($COIN)

Technological advancements are happening all the time, and at an increasingly faster rate as our innovations compound upon one another. 

What is Web3 & why it matters

FUTURE TECH

Did you know that about 50% of US mortgages are backed by a GSE (Government Sponsored Enterprise)&nbsp;of some kind? Whether it be FHA, VA, USDA or&nbsp;plain ole’ Fannie Mae or Freddie Mac, there's no doubt that federal backing plays a huge role in the US housing market.&nbsp; In 2022 though, the total value of loans under their supervision could increase noticeably as the cap on mortgage balances is being forced upwards with rising home prices.The logistics Even though it might seem like the government has access to limitless money and can easily jump-start the figurative money printer at any given time, they still have parameters on the size of mortgage these organizations can back.<a href="https://singlefamily.fanniemae.com/originating-underwriting/loan-limits" target="_blank">The limit</a>&nbsp;for 2022 now sits at around $647,200 for&nbsp;mortgages in “most” parts of the country, with the flexibility to extend all the way to $970,800 in “higher-cost” markets. Yes, the federal government will now back mortgage loans of nearly $1 million.However, housing prices have been on the rise, subtly nudging the MBS (mortgage-backed securities) market to jump—getting&nbsp;GSEs to ask “how high?”<img src="https://finny.s3.amazonaws.com/images/932dfa83-6dfe-401a-8ca3-f55fbe4e8e38.png" style="width: 328px; height: 407px;">The new $1 million ceiling&nbsp; These limits are adjusted annually, as one could argue they should be to account for housing price increases. And the following year could bring more of a buoyant spike, as housing prices have been rising at record rates—up 16% at the end of Q3&nbsp;vs. the prior year&nbsp;to $363,700.These adjustments come at a time when these agencies' market share has been growing substantively too, with Fannie and Freddie&nbsp;now having a hand in over 57% of new mortgages in 2021, compared to 42% in 2019.The bigger picture This increase to the one million dollar mark by these agencies could make it cheaper and easier for some borrowers to buy a home. But with that, some may beg the question, how much of a role should the government be playing in our mortgage industry, and how much is too much to back?🔎 Take this&nbsp;quiz-based microlesson if you want to zoom in on some&nbsp;mortgage basics:

Did you know that about 50% of US mortgages are backed by a GSE (Government Sponsored Enterprise) of some kind? Whether it be FHA, VA, USDA or plain ole’ Fannie Mae or Freddie Mac, there's no doubt that federal backing plays a huge role in the US housing market.  

The government wants your $1 million dollar mortgage

HOUSING MARKET

The&nbsp;number one tax loophole? Don’t make any money. Oh right, that’s probably not a good idea. Okay, the second best tax break has to be making less money then, right? Close, the key is actually to just look like you did.&nbsp; As deceptive as that sounds, it’s an entirely legal thing to do, and the IRS is openly inviting us to reduce our taxable income every year. It’s literally written into the tax code on purpose. With this in mind, tax breaks are also transitory sometimes and need to be eaten while hot.Pandemic-related tax breaks that are expiring:<ul><li> Stimulus checks: Payouts from the third stimulus payment were phased out with income brackets, meaning you might not have qualified if you made too much in 2020. However, if your income in 2021 was reduced enough to drop you below the threshold, you could be due more money. </li><li>Child-tax credit: Similar to stimulus checks, child tax credits were amended and adjusted upwardly during the pandemic, with the $1,600 or $1,000 extra per child set to expire in 2021 barring an extension. If you missed out on this due to a higher income that dropped in 2021, you could stand to benefit on your taxes.&nbsp; </li><li>Charitable giving: The charitable giving deduction is up this year, doubling from a $300 limit for those who didn’t itemize their deductions last year to $600 this year. This deduction will be what’s classified as “below the line” and reduce your taxable income, as opposed to your adjusted gross income.</li></ul>🤔 Want to review what's tax-deductible and what's not? Put your skills to the test:

The number one tax loophole? Don’t make any money. Oh right, that’s probably not a good idea. Okay, the second best tax break has to be making less money then, right? Close, the key is actually to just look like you did.  