Despite a marked improvement from the fourth quarter of 2022, independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks still lost a mountain of money in the first quarter.
On average, IMBs reported a net loss of $1,972 on each loan originated from January to March, a 35% improvement from the reported loss of $2,812 per loan in the fourth quarter of 2022, according to the Mortgage Bankers Association(MBA).
A net production loss of 68 basis points in the first quarter is a sober reminder that conditions remain extraordinarily challenging for the industry, even if losses narrowed from the record 99 bps loss recorded in Q4.
The industry has experienced four consecutive quarters of production losses and nine consecutive quarters of volume declines, according to Marina Walsh, the MBA’s vice president of industry analysis.
The average production volume was $398 million per company in the first quarter, down from $436 million per company in the fourth quarter of 2022. The volume by count per company averaged 1,264 loans, a drop from 1,395 loans during the same period.
All in all, including both the production and servicing business lines, 32% of companies were profitable in Q1, up from 25% in the last quarter of 2022.
Another silver lining for IMBs was improved production revenue of 40 bps in the first quarter from the previous quarter.
However, costs continued to escalate with the further drop in volume and reached a study high of $13,171 per loan despite substantial personnel reductions, Walsh noted.
Loan production expenses averaged $7,172 per loan from the third quarter of 2008 to the last quarter of 2022. The average number of production employees per company also declined to 374 between January and March from 413 from the previous quarter.
Servicing operating income — which excludes MSR amortization, gains or loss in the valuation of servicing rights net of hedging gains or losses, and gains or losses on the bulk sale of MSRs — slightly declined to $102 per loan in the first quarter from the previous quarter’s $104.
The sale of MSRs does not directly impact earnings as a revenue stream, but the conversion of MSRs into cash via sales deals bolsters a lender’s cash flow and overall liquidity.
It’s not all bad news, however. The MBA expects mortgage origination volume for one- to four-family homes to post $461 billion in Q2, a rise from $333 billion in Q1 2023, according to its latest forecast.
The MBA also projected the 30-year fixed mortgage rate to trend down to an average of 6.2% in the second quarter, ultimately declining to 5.5% by the fourth quarter of 2023.
The idea behind life insurance — that it’s one way to help protect loved ones — is fairly simple. But navigating the sea of options and figuring out which policy to go with isn’t always so straightforward.
Below are tips for comparing life insurance policies and understanding the insurance buying process.
Choosing the Right Policy
Before you start reviewing different life insurance options, it’s a good idea to first decide which type of policy you need. The following guidelines can come in handy.
Buying Term Life Insurance
Term life insurance offers protection for a specific time period, usually in five, 10, 15, 20, 25, or 30 years. If you die during that time, your beneficiaries receive a cash benefit.
A term policy can be matched to a particular length of time when coverage is needed. For example, if your top priority is to provide enough income for your dependents to pay for college, then a 20-year policy fits your needs. Or if you need a policy that will help your beneficiaries repay outstanding debts, maybe a 25-year policy would make more sense.
If your budget is limited, buying term life insurance may make more sense. These policies tend to be more affordable than permanent life insurance because they are statistically less likely to pay out than permanent life policies.
Typically, there are a couple of reasons a term policy expires: if the insured stops paying the premiums or if they live past the term of the policy. Renewal is possible, but terms and rates may vary based on the applicant’s health and age. (The renewal is typically in one-year increments and the cost will likely be significantly more than the cost during the initial term.)
Insured people who wish to extend their policies may want to contact different providers to determine how continuing coverage after the end of their life insurance terms generally works.
If your financial needs change during the term of the life insurance policy, contact your insurer. Some may offer a convertible policy, which involves converting a term life policy to a permanent policy in exchange for higher premiums.
Buying Permanent Life Insurance
Permanent life insurance works a bit differently. For starters, it provides protection for the insured’s lifetime, as long as the premiums are paid.
Unlike term life, a permanent life insurance policy will pay a death benefit no matter when the insured passes away. It may also come with a savings component, which can grow on a tax-deferred basis and be used to borrow funds for a variety of reasons or pay premiums. Even if the insured has less than ideal credit, the funds can still be borrowed against. In that case, the death benefit is considered collateral for a loan. (Make sure to check with your insurance provider or other advisor before withdrawing money because taking cash out of the policy can cause it to collapse unless the death benefit or premiums are adjusted.)
In practice, this can mean that when the insured passes away before repaying what was borrowed against the policy, the life insurance company deducts what’s still owed from the beneficiary payout.
There are several other options for permanent life insurance, including:
• Whole life insurance. This coverage provides foreseeable lifelong coverage, which includes a fixed premium and death benefit.
• Universal life insurance. Universal life insurance provides flexible lifelong protection and several cash accumulation options.
• Variable universal life insurance. This type of coverage offers flexible death benefits and several investment options for the cash accumulation component.
It’s important to note that permanent life insurance is typically more expensive than term life insurance. So, when weighing out the options, the cost of the policy might be a crucial factor to calculate.
Recommended: Term vs. Whole Life Insurance
Calculating the Right Amount of Coverage
There are several different ways to calculate how much coverage is necessary. Some insurers recommend multiplying the insured’s salary by five or 10. While that can be an effective rule of thumb, be sure to account for all your beneficiaries’ anticipated needs. For instance, you might need a higher coverage amount if you have children and plan on helping them pay for college. On the other hand, if additional resources or assets are available to your beneficiaries at the time of your death, a lower coverage amount might make more sense.
Another option is to use an online life insurance calculator to estimate the cost of different levels of coverage. If you go this route, be sure to include all the debt that beneficiaries or an estate may be responsible for, including shared revolving debt.
Keep in mind that the amount of life insurance coverage you choose will impact the price of your monthly premiums.
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Comparing Life Insurance Providers
Once you’ve determined the right type and amount of life insurance coverage you need, it’s time to gather life insurance quotes. Look for insurance companies with established financial histories, strong consumer ratings, and flexible product offerings. Several credit rating agencies look at insurance providers’ overall financial strength and their ability to meet existing insurance obligations (i.e., paying out the benefits).
But ratings aren’t a guarantee, so be sure to review ratings for all the companies you’re considering. For example, A+ and A++ are A.M. Best’s superior ratings. They denote companies that, according to the agency’s analyses, have shown an exceptional ability to meet their insurance obligations and have evidenced financial strength. (All 50 states have a program to ensure that insurance proceeds are paid if an insurer becomes insolvent.)
Recommended: How to Buy Life Insurance in 9 Steps
Gathering Multiple Life Insurance Quotes
Some providers require you to complete a simple online application before you receive a quote. In order to provide an accurate quote, the insurance company may ask you to share some personal details, such as your age, location, gender, health, and desired coverage.
Since permanent life insurance policies tend to be more complex, it can be wise to consult with an agent who can help you compare the pros and cons of different types of policies.
Comparing Life Insurance Quotes
Here are some things to pay close attention to as you’re reviewing life insurance quotes and considering which policy meets your needs.
Cost
The cost of a policy is generally determined by underwriters employed by the life insurance provider. They look at numerous factors, including applicants’ age, health conditions, and medical history to determine the risk for covering them.
While each provider may use similar methodologies, costs can vary depending on the amount of coverage they are willing to provide and the price paid by the insured.
Again, the value of the company and the services offered can also play a role in how much a policy may cost. So while aiming to get the lowest monthly bill may seem like the right solution, it’s wise to evaluate if that lower-priced option can provide the desired coverage over the life of the policy.
Customization
Since no two people have the same financial goals or coverage expectations, some insurers offer policies designed to match a given applicant’s specific needs.
For example, insurers may offer different riders or payment plan options to customize a policy to fit an individual’s goals. Insurers who offer more flexibility might be a better fit for some buyers.
Product Range
Buying life insurance from a company that offers a wide range of products is not only a convenient way to shop for insurance, it may even help you save money. That’s because insurance companies sometimes offer discounts for bundling multiple insurance policies together, like life, automobile, or rental insurance.
People shopping for life insurance can review the other products each insurance company offers to determine if buying a bundled policy can save time, money, and the potential hassle of working with more than one provider.
Long-Term Cash Value Potential
Since permanent life insurance has a cash value component that can grow over time, it’s important to factor this trait when comparing each policy’s potential value. Although low-cost policies may seem like an attractive option, they may not provide as much coverage over the life of the policy.
For buyers who prioritize cash value and dividend distribution, picking a life insurance policy that offers either or both of those features may be a good choice. But keep in mind: Policies with higher dividend payouts are, typically, more costly each month. Many policies have guaranteed rates of return depending on the investment options. However, the market will often outpace the guarantees in insurance policies so consider your investment objectives and risk tolerance before getting a life insurance policy as an investment vehicle.
Using an Agent
While it’s possible to buy life insurance online, sometimes it’s wiser to contact an insurance agent. Because different life insurance products come with varying fine print details, an insurance agent could help buyers grasp the key differences between policies and products. Buyers can also ask them any lingering questions.
An agent who is well versed in the product’s details can also explain important distinctions like cost, coverage limits, and varying terms. It’s worth noting that any insurance agents are paid on commission. In most cases, you will not pay more by going through an insurance agent. The commission is included in the quote and goes to the insurer if the policyholder buys a policy directly from an insurance company.
The Takeaway
Life insurance can be a good way to provide for your loved ones after you’ve died. There are different types of policies to consider. Term life insurance offers coverage for a specific period of time; if you die during that time, your beneficiaries will receive a cash benefit. Permanent life insurance offers protection for the rest of the insured’s life and will pay beneficiaries a death benefit no matter when the insured dies. It often comes with a savings component that can grow on a tax-deferred basis and be used for a variety of purposes.
As you begin to research companies and gather quotes, take note of the cost, ability to customize, long-term cash potential, and range of products the insurer offers. An agent can help you make sense of your options and select the plan that’s right for you.
If you’re shopping for life insurance, SoFi has partnered with Ladder to offer competitive term life insurance policies that are quick to set up and easy to understand. You can apply in just minutes and get an instant decision. As your circumstances change, you can easily change or cancel your policy with no fees and no hassles.
Complete an application and get your quote in just minutes.
Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.
SoFi Agency and its affiliates do not guarantee the services of any insurance company.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. SOPT0523001
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Right now, many people are exploring different industries looking for the right career change.
As such, people are intrigued about the real estate market, but don’t want to start their own company. So, working for a REIT may be a good fit for you.
Real estate investment trusts, or REITs, are publicly traded investment vehicles that allow investors to pool their money and invest in a wide variety of real property assets. These assets can be diversified by investing in an ETF that holds a portfolio of different REITs.
First of all, careers in REIT tend to be highly lucrative and the industry is growing by leaps and bounds.
When viewed as an industry, REITs make significant contributions to the tax base and the job market. Plus the community is the benefactor of all real estate improvements.
in 2020, REITs contributed an estimated 2.9 million full-time jobs to the U.S. economy (source).
In this article, I will tell you how many positions are available in REITs and what these jobs entail.
What are real estate investment trusts?
Real estate investment trusts, or REITs, are a type of security that owns and operates income-producing real estate. REITs are a great way to invest in real estate without having to be a property owner.
When you buy into a REIT, you are not actually buying any real estate yourself–you are simply investing in a company that owns and operates real estate. The company will not resell the properties it acquires; instead, it will hold on to them and generate profits from rent or lease payments.
How many real estate investment trusts are there?
There are a great number of real estate investment trusts, or REITs, across the globe. These trusts have a combined equity market capitalization of $1 trillion and hold a vast array of properties- from apartments to hospitals to data centers.
In the United States, there are more than 225 real estate investment trusts (REITs) that are registered with the Securities and Exchange Commission (SEC) and trade on one of the major stock exchanges.
Over 1,100 REITs have had tax returns filed according to the IRS. Thus, most REITs are privately held.
What is the job outlook for people in real estate investment trusts?
The job outlook for people in real estate investment trusts is good because the real estate industry is growing and there is a lot of opportunity for people who are interested in this field.
The real estate industry is always changing, so it is a good field to be in if you want to have a lot of opportunities for growth.
The job market for people in real estate investment trusts is expected to grow at a rate of about 10% per year. This means that there will be more high-level positions available in the next few years. In addition, 30% of all REIT jobs require a business degree to start at a managerial level. However, you can find entry-level positions to begin your career.
How Many Jobs are Available in Real Estate Investment Trusts
Currently, there are over 1,500 jobs available in real estate investment trusts on Linkedin and 3000 more on Indeed.
There are many different career paths that one can take on within the industry of real estate investment trusts, with different salaries and opportunities.
Best paying jobs in Real Estate Investment Trusts
Asset managers, for example, can make upwards of $200,000 per year. Other high paying positions include those of developers, acquisitions professionals, and investor relations personnel.
It is important to remember that these roles often intersect and overlap, so it is important to be aware of what companies are hiring for what positions. There are many industries in which you can work for a REIT, including construction projects and residential leases.
Real estate investment trusts, or REITs, are becoming more popular as a way to invest in the real estate market. These trusts are responsible for every aspect of a real estate project, from finding and acquiring properties to managing them and leasing them out. This requires a variety of different professionals, including asset managers, accountants, lawyers, and engineers.
Types of Jobs Available
There are also many jobs available in the field of real estate investment trusts (REITs). A REIT is responsible for every aspect of a real estate project, from development to management.
The company also needs to ensure its success, which requires a lot of hard work and dedication. There are professionals managing the trust’s assets and overseeing its portfolio.
If you’re interested in working in this field, there are many opportunities available to you including:
Property Manager
Commercial Developer
Acquisition Team Member
Financial Analyst
Marketing Coordinator
Construction Supervisor
Check out the full list of available jobs in real estate investment trusts.
Each of these positions has different responsibilities and duties.
For example, a real estate agent is responsible for helping REIT buy or sell properties. A property manager is responsible for overseeing the maintenance and operations of a property, while a financial analyst decides whether or not the assets are living up to their financial obligations. Finally, a commercial developer is responsible for designing, constructing, and managing commercial developments.
How do I become a real estate investment trust professional?
You should be able to identify opportunities and analyze data to make sound investment decisions.
You should have experience in financial analysis, accounting, and investing. Excellent communication and interpersonal skills are also important, as you’ll need to work with clients, investors, and other professionals in the industry.
There are many things to consider when you’re thinking about becoming a real estate investment trust professional. The most important factor is making sure that this is the right career path for you. There are many benefits to working in REITs, but it’s important to make sure that you’re ready for the challenge.
Once you’ve decided that this is the right career for you, there are some basic steps that you need to take in order to get started.
The first step is getting educated on the topic. There are many courses and programs available that can teach you everything you need to know about real estate investing. After you’ve completed your education, it’s time to start building your network. Meeting other professionals in the industry and getting connected with potential mentors will help set you up for success.
The final step is finding a job in the industry. There are many opportunities available, so it’s important to do your research and find the company that’s right for you. Working in REITs can be a rewarding experience, and with the right preparation, you can be on your way to a successful career in real estate investment trusts!
What are the requirements to work in a real estate investment trust company?
The requirements to work in a real estate investment trust company vary depending on the company, but typically a degree in business, finance, or economics is required, along with experience in the real estate industry. Some companies may also require experience in accounting, investment banking, or the law.
In order to work in a REIT company, you must meet some requirements.
First and foremost, you must be passionate about real estate investment. Secondly, you must be able to devote the time and resources necessary to do your job well. Finally, you must be able to meet the company’s standards and uphold its values.
REITs are required by law to invest in real estate–so it’s important that you have a firm understanding of the market before working in this industry. In addition, REITs are limited in terms of the number of shareholders they can have (no more than 50% held by five or fewer people). Lastly, REITs are mandated to pay out 90% of their taxable income each year so that investors can benefit from regular dividend payments.
How Much Can You Earn Working for a REIT?
Smaller companies with lower profit margins usually offer the lowest-paid jobs. Larger companies with higher profits and more complex job tasks often pay more than smaller ones do.
According to Payscale, the average base salary for the REIT industry is $75,000 a year (source). This is above the median salary of $60000. Thus, jobs within the REIT industry are more lucrative than you can find in other industries.
Lead Analysts and Senior Analysts are the most popular jobs within the industry with annual salaries of $80,000 and $90,000. It’s important to note that these figures are national medians and may vary depending on location.
Executive-level jobs offer the highest earning potential with the average salary for a senior executive position reaching well over six figures ($105,000). However, it is also worth mentioning that these earners typically have an ownership stake in their company.
Therefore, if you’re looking to maximize your earnings as a REIT employee then working for a large company is your best bet.
How Many Are Real Estate Investment Trust Jobs Being Created Each Year?
The number of jobs in real estate investment trusts is growing rapidly, with more than 1000 positions becoming available each year.
REITs are a type of business that creates many jobs.
The number and percentage of these jobs will vary depending on the specific industry in which the REIT operates; however, there are always many opportunities for those interested in this field. It’s important to research the particulars of each position in order to decide which is best for one’s interests.
Individuals can be employed in a variety of positions in the REITs sector, including accountants, construction managers, leasing consultants, property managers, and financial analysts.
There are a variety of job opportunities in REITs, depending on the specific department or position you’re interested in.
Many even are early morning jobs too!
Other jobs in real estate investing
Plenty of different jobs are available in the real estate industry and can be broken down into three main categories:
People who invest in real estate
Those who manage or develop properties
Employees who provide support services.
There are a variety of job descriptions to fit your experience level.
In fact, if you keep using these good excuses to miss work, then a job change is probably needed.
REITs – Real Estate Industry a Possibility for You?
It is important to know how many jobs are available in a particular field so you can see if it’s worth pursuing as your career.
As this article showed, real estate investment trusts, or REITs, makeup one of the higher paying jobs. Surprisingly, it has one of the lower barriers to entry as a career field.
Plus, there are more than hundreds of thousands of people who are employed by REITs.
You can earn a lot of money working for a REIT, depending on the company you work for and the job you have.
Start your job search now.
Know someone else that needs this, too? Then, please share!!
Escheat law, or escheatment, is the process of a state taking possession of personal property when it appears to be abandoned or unclaimed. Escheat laws vary by state, but typically it takes about five years before an asset’s ownership is transferred to the government
.
How does escheatment happen?
Property belonging to both the living and the deceased can be vulnerable to escheatment.
When the owner is alive:
The financial institution must make an earnest effort to locate the account owner; property doesn’t get automatically transferred to the state after sitting inactive for too long. If the property owner can’t be contacted, and the time period specified by state laws has passed, financial institutions are required by law to report the assets.
The financial institution reports the unclaimed property to the state. The state will physically transfer the funds and hold the account as a bookkeeping entry.
The original owner can make a claim against the escheatment. Filing rules vary for each state, but you’ll likely have to verify ownership of the account. If the claim is successful, you’ll receive cash equal to the value of the account at the time it was escheated, as opposed to having the original account returned to your name.
If no one claims the property, the state considers the assets in the account to be state-owned property and often sells any securities held in the account.
When the owner is deceased:
They must have died without a will and with no heirs, or have chosen heirs who are legally incompetent. Escheatment can also happen if there’s a single heir and that heir murders the property owner.
Property acquired illegally can be escheated in some cases. When this happens, those funds are earmarked for relevant purposes, including helping victims of violent crimes or contributing to law enforcement budgets.
Assets left to noncitizen heirs may be escheated in very rare cases. This means that the heir of the property is not a citizen of the country where the deceased resides and cannot properly receive the assets.
How escheat works
Escheat during life
An asset can fall into escheat if you don’t request the return of a security deposit on your rent or utilities, or leave a bank account inactive for a long period of time.
Here’s an example:
Lisa attended college out of state and opened a student checking account at a small local bank near her school. After graduation, she moved back to her home state, married, and forgot about the checking account she had used as a student. Years passed, and the checking account was deemed dormant. The small bank tried to contact Lisa but was unable to do so because Lisa had a new married name, lived in a different state and had a new phone number. The funds from Lisa’s old checking account were eventually escheated and went to the state where the bank was located.
Escheat of an estate
For those who have died without a will — called dying intestate — and don’t have any heirs that the estate would normally pass to during probate, the escheatment process allows the state government to take ownership of the estate. This can also happen if no living heirs can be contacted.
Here’s an example:
Adam was an only child who never married or had children. His parents had died many years prior and he had no living aunts, uncles or cousins. Adam planned to leave everything to his favorite charity, but he died before he had a chance to draw up a will. Because he had no will and no obvious heirs at the time of his passing, his entire estate went to the state by escheat.
How to recover property if it’s been escheated
You still have a chance to get back assets that have been escheated. But because you wouldn’t have received a notification about the assets in the first place, you might not have realized any assets are missing.
To find out if you have any unclaimed assets, visit the National Association of Unclaimed Property Administrators website. Each state has its own laws and claims procedures, so be sure to search for your name in every state you’ve lived in, and search under all names you’ve had.
If any unclaimed funds come up in your searches, you can file a claim through the website and provide whatever information your state requires to verify your ownership of the funds. Some states place a time limit on escheatment claims, so you may want to repeat your search every few years to catch any new claims quickly.
If you have questions about getting your unclaimed assets back, you can find contact information for your state’s unclaimed property authority on the NAUPA website, or you can contact an attorney if necessary.
How to avoid escheatment
Create a valid estate plan with a will that clearly designates your chosen heirs, and update it as needed.
Keep a list of all your financial accounts, and actively maintain all accounts. Avoiding a dormant status can be as simple as making a small deposit or withdrawal once every year or two.
Keep a record of security deposits you make to landlords or utilities so you can remember to request a return of those funds when you move.
Keep a record of employer-provided retirement accounts so you don’t forget about them when you change jobs.
If you close an account, be sure to withdraw any remaining funds.
Notify the post office and/or financial institutions you do business with immediately when your name, address, phone number or any other contact information changes.
Cash all dividend checks you receive, no matter how small they are.
Vote by proxy if you receive a request from a company you own stock in. Companies allow stock owners to vote by proxy in shareholder meetings; voting shows active ownership of your assets.
Log in to your accounts online regularly to confirm active ownership of assets.
Respond quickly to any notices of account inactivity you receive.
Previously, we took a look at the question, “Should Christians Invest In Stocks?“. What we found is that it is possible to be a good steward of God’s money, and still invest. However, there are still a couple of things that we as believers must be careful of when we choose to invest.
The two most prominent dangers to investing for a Christian are, supporting or profiting from sin, and trusting in our wealth instead of God.
Let’s take a look at the first danger:
The First Danger Of Investing: Profiting From Sin
This is probably the most popular reason given by Christians as to why they refuse to invest in stocks. We don’t like the thought of our money going to support Playboy or some other entity that makes money off of sin!
It’s pretty clear from scripture that there is to be a separation between Christians and the sinful practices of the world:
Do not love the world nor the things in the world If anyone loves the world, the love of the Father is not in him. For all that is in the world, the lust of the flesh and the lust of the eyes and the boastful pride of life, is not from the Father, but is from the world. The world is passing away, and also its lusts; but the one who does the will of God lives forever.~ 1 John 2:15-17
If we as slaves to Christ must avoid the “lust of the flesh and the lust of the eyes and the boastful pride of life”, then it stands to reason that we should not benefit from companies and organizations that promote these things. It would seem hypocritical to speak out against these things while secretly building our retirement accounts on their success!
It can become so difficult and time-consuming to figure out if a company that you are currently invested in derives any of its profit from ungodly activities. So because of the danger of profiting from sin, many Christians will choose not to invest.
There is something else that we must consider when choosing to invest:
Do not be bound together with unbelievers; for what partnership have righteousness and lawlessness, or what fellowship has light with darkness? ~ 2 Corinthians 6:14
To present a more clear understanding of this command, here is a note on this verse from my study bible:
not be bound together. Lit. “unequally yoked,” an illustration taken from Old Testament prohibitions to Israel regarding the work-related joining together of two different kinds of livestock (Dt 22:10). By this analogy, Paul taught that it is not right to join together in common spiritual enterprise with those who are not of the same nature (unbelievers). It is impossible under such an arrangement for things to be done to God’s glory. with unbelievers. Christians are not to be bound together with non-Christians in any spiritual enterprise or relationship that would be detrimental to the Christian’s testimony within the body of Christ. ~ The MacArthur Study Bible (page 1741, note on 2 Corinthians 6:14)
When you purchase stocks, you are buying a share of the ownership of that particular company. Because of this, investing is commonly looked at as a partnership between the company and its shareholders. Since we are to avoid joining together in partnerships with ungodly people and entities, we have to now be even more careful about the companies in which we choose to invest.
Can We Avoid Profiting From Sin?
On the surface, this seems like an easy question to answer – of course we can avoid it, just investigate each company to see exactly how they make their money! However, this type of investigation can quickly go pretty far. You may want to consider looking at their business partners, suppliers, and even network on which they advertise.
My point is that it can be pretty much impossible to invest in a company that has no connection to sin and worldliness. If that is the case, how can we feel comfortable investing at all? I think we follow two main principles in order to invest in a way that honors God…
Cut Off Any Clearly Ungodly Partnerships
Any company that openly makes its profit by violating God’s word can immediately be cut of your list of potential investments. Now, I’m not going to take the time to create a list of every action that violates God’s holy and perfect standard, but take a look at 1 John 2:15-17 above, and you should be able to create a list of your own!
If you know that a company involves itself in sinful practices, then you should cut off your relationship with them if possible.
Do Not Violate Your Conscience Or That Of Another Believer
Hear what the Apostle Paul says about this:
Therefore let us not judge one another anymore, but rather determine this–not to put an obstacle or a stumbling block in a brother’s way. I know and am convinced in the Lord Jesus that nothing is unclean in itself; but to him who thinks anything to be unclean, to him it is unclean. For if because of food your brother is hurt, you are no longer walking according to love Do not destroy with your food him for whom Christ died. Therefore do not let what is for you a good thing be spoken of as evil; for the kingdom of God is not eating and drinking, but righteousness and peace and joy in the Holy Spirit.
For he who in this way serves Christ is acceptable to God and approved by men. So then we pursue the things which make for peace and the building up of one another. Do not tear down the work of God for the sake of food All things indeed are clean, but they are evil for the man who eats and gives offense. It is good not to eat meat or to drink wine, or to do anything by which your brother stumbles. The faith which you have, have as your own conviction before God. Happy is he who does not condemn himself in what he approves. But he who doubts is condemned if he eats, because his eating is not from faith; and whatever is not from faith is sin. ~ Romans 14:13-23
In many of the pagan temples, worshipers sacrificed meat to their idols. This was to both cleanse the meat from demonic contamination (because they believed that evil spirits would indwell food in order to enter into a human’s body when they ate), and to offer up a sacrifice to their false god. Any meat that wasn’t burned on the altar was then sold in the meat markets at a cheap discount.
Many new Christians had been saved out of that pagan lifestyle and thus were very sensitive to these practices, and were sometimes reminded of their past. However, more mature believers knew that there was nothing inherently wrong with the meat and that it was fine for a Christian to buy it and save a lot of money! 1 Corinthians 8:7-13 has this to say about this situation:
However not all men have this knowledge; but some, being accustomed to the idol until now, eat food as if it were sacrificed to an idol; and their conscience being weak is defiled. But food will not commend us to God; we are neither the worse if we do not eat, nor the better if we do eat. But take care that this liberty of yours does not somehow become a stumbling block to the weak. For if someone sees you, who have knowledge, dining in an idol’s temple, will not his conscience, if he is weak, be strengthened to eat things sacrificed to idols?
For through your knowledge he who is weak is ruined, the brother for whose sake Christ died. And so, by sinning against the brethren and wounding their conscience when it is weak, you sin against Christ. Therefore, if food causes my brother to stumble, I will never eat meat again, so that I will not cause my brother to stumble.
As we see in this example, even if we understand that the word of God doesn’t explicitly speak against a particular practice, if it offends another believer, then we are not to do it. Helping to protect the conscience of our brother or sister is more important than whatever gain we would have received by a particular investment (0r meal).
Even if you believe that it is acceptable to invest in a particular stock or fund, if your doing so causes another believer to stumble or even go against his conscience, then you have sinned against both him and Christ!
A Few Things To Consider
Unless you purchase your shares of stock in an I.P.O. (Initial Public Offering), your money does not go to the company
If you are not comfortable investing in a company that owns a company that owns a company that owns a company that sells vending machines to casinos, then please do not go against your conscience
If you scrutinize your investments this heavily, but do not give the same consideration to where you make your day-to-day purchases, some may regard you as a hypocrite and your testimony will still be ruined
Reader Questions
Have you ever invested in a stock against your conscience for any reason (fear of missing out on a huge profit, the pressure of an adviser or other Christian, etc)?
How careful are you when it comes to choosing your investments?
Do you think it’s possible to avoid profiting from sin?
The reality of owning a small business in the United States today is that most companies will eventually, in the course of doing business, encounter a surety bond. If you’re one of the many companies today that does need a bond to conduct your business legally, you have probably wondered what the financial benefits are to the bonding process. And it would follow that you’ve also considered the legal and financial ramifications of not purchasing the necessary surety bonds for your company.
What is a Surety Bond?
Surety bonds represent an agreement between three parties: the party requiring the bond, the party purchasing and maintaining the bond, and the surety bond company who sells the bond. Typically, the entity who requires the bond is usually a governmental agency, and in addition to the federal government’s bond requirements, most states and localities have their own regulations which legislate bond coverages. Ultimately, the government’s insistence on bonding is generally to protect consumers against misconduct or non-performance on the part of the bonded company. If a consumer is harmed in the course of doing business with a bonded company, the party requiring the bond files a claim against it and, if the claim is valid, the surety bond company pays an agreed upon damage amount (up to the full value of the bond). Because the surety company pursues reimbursement from the bonded company, however, surety bonds are not a form of insurance but actually a form of credit.
Becoming bonded is a simple process and is generally inexpensive, particularly compared to insurance premiums and other small business expenses which can add up quickly. Bond amounts vary widely based on the type of bond that you need. For instance, when it comes to surety bonds in Illinois, a mortgage broker bond needs at least $20,000 while a collection agency needs a $25,000 bond to conduct business. Prices on these bonds can vary based on the dollar amount required and on the company’s credit status and financial history, which will be reviewed by the surety company at the time of purchase. If the company seeking the bond has a very poor credit history, they may not be able to purchase a bond at all, or may have to seek out a surety company that specializes in subpar credit bonds. Since surety bonds are a type of credit and rates are based on the financial health of the applicant, these bonds are at least twice as expensive as surety bonds for companies who have excellent credit.
Incentives of Surety Bond
While at first the prospect of a surety bond can seem potentially cumbersome and like one more hoop you need to jump through in order to conduct your business, rest assured that there are incentives to maintaining a valid bond. Most notably, incorporating your bonding status in your company’s advertisements will most likely increase your sales and business a great deal. In today’s difficult economy, consumers are becoming more and more aware of the importance of doing business with reputable, safe companies in order to maximize their gains from the transaction and minimize their loss, and becoming licensed and bonded represents a company’s willingness to work within the appropriate legal channels for their industry. Be sure to advertise your licensed and bonded status prominently in any promotional activity for your business, and mention it in any conversation you have with new clients and customers.
On the other hand, if you choose not to comply with legal requirements and purchase a bond, there are consequences, and some can be quite dire. Not maintaining the appropriate surety bonds can result in financial consequences first, namely fines from state, local, or federal government. Additionally, the lack of a surety bond can result in your business license being revoked or suspended which will effectively shut down your company until you’ve become bonded and can resume activity. Becoming bonded and resuming business can take up to several weeks due to the legwork required with getting paperwork where it needs to be, and providing documentation to all the parties who need it.
Are There Hidden Costs?
As we mentioned earlier, there’s also a rather hidden cost of failing to purchase a surety bond. Consumers use your bonding status as a sign of your company’s willingness to perform your job ethically and according to fair business practices. Choosing not to uphold your legal obligations to take out a surety bond demonstrates a poor attitude towards business in general and can be extremely detrimental to your public image.
Purchasing the required surety bonds for your business should really be a no-brainer. Bonds typically only cost a few hundred dollars, but the penalties for not carrying the required bonds can be well into the thousands. Don’t expose your business to risk and poor publicity. Save yourself some time, money, and sanity by getting bonded before you even begin doing business.
Bio: This is a guest post from Matt Bruns, a principal for SuretyBonds.com, the nationwide provider in surety bonds, as part of their surety bond education program. Matt is not affiliate or endorsed by LPL Financial.
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If you spot a Tesla on the road, you may be impressed by the sleek style of the car, but you may also find yourself wondering: How do you take an electric car like that on a road trip? How do you refuel conveniently? The answer is EV charging stations. As electric vehicles grow in popularity, so does the demand for these stations — making the sector an especially hot one for investors.
If you want expert advice on building an investment portfolio that serves your current and future needs, consider working with a financial advisor.
What Is an EV Charging Station?
An EV charging station is essentially a gas station for electric vehicles (EVs). According to the U.S. Department of Energy, while most EV owners have charging stations at their homes, there are tens of thousands of EV charging stations across the country. Whether these are public charging stations or workplace charging stations, they serve the same purpose of recharging the batteries of electric cars.
While the purpose of an EV charging station most resembles a gas station, the actual process is more like recharging your phone. As you might have a phone charger at home but also carry one with you to the office, if you have an EV, you might be best served by having a residential EV charger while still having access to public EV charging stations or an EV charging station at your work.
Are EV Charging Stations Good Investments?
EV charging stations can be good investments as the market for EVs and the accompanying infrastructure to power them grows. According to the U.S. Bureau of Labor Statistics, there is increased consumer demand for EVs and many reasons to believe that that interest will continue to grow.
In 2011, electric cars made up 0.2% of all car sales in the United States. By 2021, that number had swelled to 4.6%. Some research projections say that EV sales could make up as much as 52% of all car sales by 2023.
While environmental concerns have been a major concern for EV drivers historically, cost savings also figure prominently in the move to EVs. Studies find that EVs can save their drivers as much as $12,000 over the life of the vehicle, and that fuel savings alone can be $4,700 or more in the first seven years of owning the vehicle.
Further savings are available for EV buyers thanks to government policies. The Infrastructure Investment and Jobs Act allotted a tax credit worth of up to $7,500 for EV buyers until 2032. That same bill committed $7.5 billion to build out national EV charging infrastructure.
Between personal reasons, cost savings and ongoing improvements to the affordability and battery life of EVs, it’s clear why investors would consider EV charging stations a wise investment.
How to Invest in EV Charging Stations
EV charging stations can be a wise investment for business owners. EV charging stations can be expensive to install, but the Infrastructure Investment and Jobs Act has set aside $1.5 billion to help states build and expand their EV charging networks. Look into your state’s EV charging station plan to see what assistance is available to you—for instance, in Illinois, the Illinois Environmental Protection Agency will offer a rebate of up to 80% of eligible project costs.
Once you’ve set up your charging station, you can charge drivers for the electricity they use to recharge their cars, using a business model similar to a gas station. But EV charging can also generate income for your business in less straightforward ways.
Say you own a restaurant and decide to install a charging station. A driver on a road trip looking for a charging station sees your restaurant is nearby and decides to pull in and charge their car. Charging takes between 20 and 55 minutes—the perfect amount of time for that driver to grab a bite to eat as well. This strategy can apply to a variety of retail establishments, including shops, bars, convenience stores and more.
If you’re not a business owner or don’t want to create and maintain your own EV charging station, there are other ways to invest. You can invest in the companies that are creating and selling the charging equipment and technology, such as Tesla, Chargepoint or Tritium, by purchasing stock. You can also invest in EV-related mutual funds or exchange-traded fund (ETFs).
The Bottom Line
As EVs become more popular, the demand for charging stations will continue to rise. Business owners who invest in EV charging stations can enjoy an additional revenue stream as well as the potential for increased foot traffic and a new customer base. Individual investors who see the promise of the sector can buy in via stocks or ETFs.
Tips for Green Investing
Consider talking to a financial advisor about the pros and cons of green investment strategies and how you might implement them in your portfolio. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Want to take a look at what your portfolio will look like in a decade? SmartAsset’s investment calculator can help you do just that. Enter how much you have invested, how much you’re contributing and what rate of return you expect. We’ll then show you your investment growth five, 10 or even 30 years into the future.
When you reach your 30s, life is in full swing. If you’re like me, you’ve been in your home for a couple years, you have new kids on the way, and you’ve enjoyed a few pay raises at your job. You start being more financially conscious about your family need, and term life insurance becomes more of a priority.
If you read the previous posts talking about buying life insurance in your 20s, you’ll see how the thought process can change and it is much different than purchasing life insurance for people over 50. When I bought my first term life insurance policy at the age of 26, I thought $250,000 was more than enough. At the time it was only my wife and me, it definitely was a good amount, but reflecting back I probably should have bought more.
In my 30s, I welcomed the arrival of not only our first son but our second and third as well. After our first son arrived, it was only matter of weeks before I realized that I needed more life insurance.
The thought of something happening to me and my wife having to not only run the household but also take care of our little son, I knew that I needed more.
I immediately then got a quote for a $500,000 30-year term policy that brought my grand total up to $750,000.
The older that you are, the more that you’re going to pay for life insurance. That doesn’t mean that a life insurance policy has to break your bank. Your age isn’t the only factor used to determine premium sizes, there are several things you can control which can lower your rates.
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30 Year-Olds and Life Insurance Amounts – How do You Compare?
How does this compare to you and your situation? First a couple things about where we live. We live in the Midwest, so the cost of living is relatively cheap. Our first home was a modest home, and our mortgage was only $109,000. For those of you who live in larger metropolitan areas, I realize it almost sounds like a joke. We had very little debt, so the house was our only major liability. At the time, $750,000 of life insurance coverage was more than ten times my income, so I felt we definitely had enough.
Still, this feeling of security lasted up until we had our second son. We also were in the process of building a new home and having that gut feeling again, I decided I needed more insurance coverage for my family. That’s when I decided to buy an additional term life policy totaling $1.5 million. I kept the other two in force so the total coverage was $2.25 million. Many of you may think that this is excessive and it definitely could be, but as a 30-year-old male who wanted to make sure that his family was more than taken care of if anything happened to him, I felt it was a necessity.
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In total, my premiums for all three 30-year term life policies was roughly $2400.
Please note, after a few years I ended up refinancing my life insurance policies and reducing how much I paid.
How Much Do You Need?
There are many different ways you can go about calculating how much life insurance you need.
The first general rule of thumb that many people use is to take 10 times your annual income.
So, if you’re making $60,000 a year, times that by ten and you should have at least a $600,000 term life policy. One point I would like to emphasize in that calculation is that I think that is the bare minimum, so anything less than that and you’re under covered, but in reality you should have more. While you’re in your 30s, most likely you will be working at least another 30 years, so making sure you’re covered should be a priority.
Here are a few example quotes of what a 30 year term policy would cost.
30 Year $250,000 Term Policy
30 Year Old
40 Year Old
50 Year Old
Male
SBLI $18.92/mo
SBLI $29.36/mo
SBLI $69.17
Female
SBLI $15.66/mo
SBLI $23.49/mo
SBLI $50.68/mo
If you are looking for a no exam life insurance policy, here are a few quotes for a 30 year non-medical term policy.
$250,000 30 Year Term Policy
30 Year Old
40 Year Old
50 Year Old
Fidelity Hybrid
Male
$24.58/mo
$37.19/mo
$92.00/mo
Female
$20.44/mo
$29.58/mo
$66.12/mo
Assurity Non-Med
Male
$34.76/mo
$70.84/mo
$170.06/mo
Female
$28.38/mo
$51.04/mo
$110.44/mo
Other methods of calculating how much you need
I use a ten times my income calculation as a guideline in my interest calculation, but being a numbers guy I decided to use a slightly different calculation. I figured that if my wife invested the life insurance proceeds money she should be able to average at least 5% interest off her investments. I then also figured that she would need roughly $100,000 a year to take care of the house and her three boys to help out with raising them and helping them all go to college. To get her $100,000 a year if she divided that by 5%, that equals that we would need $2 million invested, and that is how I came up with how much life insurance that we needed.
It is not the only way to calculate how much life insurance you’ll need, but it is something that you could use for your own calculations.
Getting Affordable Life Insurance Policies For A 30-Year-Old
Now that you’ve reached your 30s, you can expect to pay more for your life insurance plan than a 20-year-old is going to. We are going to share some of the tried-and-true ways to save money on your plan.
To get started, you need to finally make those hard decisions, mainly about those cigarettes. You have to choose, do you want cheap life insurance or do you want to hang on to those smokes. We promise, you can’t have both. If you keep the cigarettes, you’re getting rates which are double.
Another way that you can save money on your plan is to get better rates from the medical exam. The exam part is one of the main deciding factors in your premiums. Get in better shape and you’ll enjoy lower premiums.
There are all ways you can save money, but they are going to take some time. Getting cheap life insurance isn’t quick. One quick and easy decision is to contact one of our independent agents. If you work with us, you’re actually working with 50 different carriers. We have the ability to sell you policies from over 50 of the best companies out there. Making one call can save you hundreds.
Getting term life insurance for a 30-year-old should not be difficult, so don’t make it harder than it needs to be, but if you’re in your 30s and have a young family and you don’t have any life insurance yet, stop procrastinating. Get a free quote today and see how inexpensive it is to make sure that your family is taken care of.
On April 12, North Dakota Governor Doug Burgum signed into law House Bill 1068, which creates a new statutory licensing scheme in North Dakota covering residential mortgage loan servicing activities. This follows on the heels of the enactment last month of North Dakota Senate Bill 2090, which overhauled North Dakota’s licensing requirements related to residential mortgage lending. Both licenses will be enforced by the North Dakota Department of Financial Institutions and are effective as of August 1, 2023.
Residential Mortgage Lending
Senate Bill 2090 shifts the applicable license-type for conducting residential mortgage lending from the existing North Dakota Money Broker License to a new Residential Mortgage License. Existing Money Broker Licensees are not required to hold the new Residential Mortgage License until December 31, 2023, a limited extension to the law’s general effective date of August 1, 2023. The entities exempt from the requirement to hold a Residential Mortgage License include banks, credit unions, savings and loan associations, trust companies, and certain nonprofits.
The Residential Mortgage License will require licensees to hold a surety bond of at least $50,000; maintain a minimum net worth of $25,000; file call reports via the NMLS; and refrain from net branching arrangements. Further, the statue will require the following language to be in written contracts (in capital letters):
NOTICE: RESIDENTIAL MORTGAGE LENDERS ARE LICENSED AND REGULATED BY THE NORTH DAKOTA DEPARTMENT OF FINANCIAL INSTITUTIONS. THE DEPARTMENT OF FINANCIAL INSTITUTIONS HAS NOT PASSED ON THE MERITS OF THE CONTRACT AND LICENSING DOES NOT CONSTITUTE AN APPROVAL OF THE TERMS OR OF THE LENDER’S ABILITY TO ARRANGE ANY LOAN. COMPLAINTS REGARDING THE SERVICES OF RESIDENTIAL MORTGAGE LENDERS SHOULD BE DIRECTED TO THE DEPARTMENT OF FINANCIAL INSTITUTIONS.
Residential Mortgage Loan Servicing
House Bill 1068 creates a new North Dakota Residential Mortgage Loan Servicing License, which is required to engage in residential mortgage servicing as a servicer, subservicer, or mortgage servicing rights investor. We note that the statutory language is not clear regarding the types of activities covered by the new licensing requirement.
The law defines “residential mortgage servicing” as receiving any scheduled periodic payments from a borrower, pursuant to the terms of any federally related mortgage loan, including amounts for escrow, and making the payments to the owner of the loan or other third parties of principal and interest and such other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the mortgage servicing loan documents or servicing contract. For home equity conversion mortgages or reverse mortgages, this includes making payments to the borrower.
“Servicer” is defined to mean “the entity performing the routine administration of residential mortgage loans on behalf of the owner or owners of the related mortgages under the terms of a servicing contract.”
“Subservicer” is defined to mean “the entity performing the routine administration of residential mortgage loans as agent of a servicer or mortgage servicing rights investor under the terms of a subservicing contract.”
“Mortgage servicing rights investor” is defined as “entities that invest in and own mortgage servicing rights and rely on subservicers to administer the loans on their behalf. Mortgage servicing rights investors are often referred to as master servicers.”
“Service” or “Servicing a loan” is defined to mean the following, when performed on behalf of a lender or investor:
collecting or receiving payments on existing obligations due and owing to the lender or investor, including payments of principal, interest, escrow amounts, and other amounts due;
collecting fees due to the servicer;
working with the borrower and the licensed lender or servicer to collect data and make decisions necessary to modify certain terms of those obligations either temporarily or permanently;
otherwise finalizing collection through the foreclosure process; or
servicing a reverse mortgage loan.
Exemptions from licensing are provided for banks, credit unions, savings and loan associations, trust companies, and certain nonprofits. The Residential Mortgage Loan Servicing License will require licensees to maintain a minimum tangible net worth based upon the volume of loans serviced nationwide, with a minimum net worth requirement of $100,000. Special requirements will apply to “large servicers,” which the statute defines, in part, as a servicer with a residential mortgage loan servicing portfolio of 2,000 or more.
Both of the new licensing statutes authorize the North Dakota Department of Financial Institutions to issue regulations. A copy of House Bill 1069 can be found here, and a copy of Senate Bill 2090 can be found here.
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