Over the past several decades, the cost of college has steadily climbed, causing a student debt crisis and creating a climate of skepticism about the true value of a college degree.

A recent Gallup poll of more than 2,000 American adults reveals that roughly half of Americans don't see college as a necessity.

But according to a new survey from college planning website BestColleges of 817 American adults who have actually earned a bachelor's degree, 82% say their degree was a "good financial investment."

Still, 61% of those surveyed said they would change one thing their major.

Those who said their degree was worth the investment are likely correct.

According to The College Board, the average student debt total among those who take out loans to pay for college is roughly $29,000.

However, the Georgetown University Center on Education and the Workforce estimates that a bachelor's degree is worth $2.8 million over a lifetime, on average

Indeed, there is still reason to believe in the conventional wisdom that a college degree can be a clear path to stronger job opportunities and higher earnings.

In 2018, college graduates earned weekly wages that were 80% higher than those of high school graduates, according to the Federal Reserve. The Bureau of Labor Statistics reports that Americans with a bachelor's degree have median weekly earnings of $1,173, compared to just $712 a week for those who have a high school diploma.

While hard skills can help college graduates reach these higher earnings, respondents said that learning soft skills was actually the most valuable part of their college experience. Over 40% of those polled felt that mastering soft skills like creativity, critical thinking and communication was the most beneficial.

Less than 6% of graduates said that their alma mater's reputation was the most valuable part of college.

"It isn't about name recognition. It isn't prestige. It's literally the skills and their experiences that are helping people every day in their jobs," Quinn Tomlin, public relations manager for BestColleges tells CNBC Make It.

In fact, when LinkedIn analyzed hundreds of thousands of job postings, they found that the most in-demand skill that employers were looking for was creativity.

Around 61% of those polled by BestColleges said they would go back and change their major if they could.

"People are going back and realizing that maybe the major that they studied is not actually aligning with the outcomes that they want in their life," explains Tomlin.

Around 26% of degree holders said they would change majors to pursue their passions, and 25% said they would change majors for better job opportunities.

Tomlin recommends that students who are unsure about what they are passionate about take a gap year to explore their options or to begin their college career at a community college so that they can try out different classes at a lower cost.

"Take the time to really get your foundation down and explore what you're interested in at a fraction of the cost," she says. "Then transfer to a university when you're really ready."

Students should also consider their financial realities after college. There is a wide range in how much graduates earn based on what they study and what fields they pursue careers in.

"Choosing a major might seem like no big deal, but it's one of the few choices you make as a 19- or 20-year-old that can have an outsized impact on your entire career and possibly your whole life," Chris Kolmar, co-founder of career planning site Zippia, previously told CNBC Make It. "When you're selecting a college major, you should consider how that choice will set you up for your career. If you're looking to snag a high-paying job out of college, you should ideally look for a subject you're passionate about, but that there's also a market for on the hiring front."

One tool at students' disposal is the College Scorecard, which allows them to see the median earnings and median debt of a school's graduates, based on their chosen field of study.

Science, technology, engineering and mathematics fields typically dominate lists of the highest-earning college majors and most in-demand jobs.

Check out: The best credit cards of 2020 could earn you over $1,000 in 5 years

Don't miss:

The rest is here:
82% of college grads believe their bachelor's degree was a good investmentbut most would make this one change - CNBC

Assemblyman Marc Levine, D-Marin County, has introduced Assembly Bill 3258, which would require property insurance providers to take into consideration local government investments in wildfire prevention when determining insurance rates.

California Insurance Commissioner Ricardo Lara and a group of Legislators earlier this month introduced Assembly Bill 2367, which is being called Renew California. That bill would require admitted insurance companies to write or renew policies for existing homes in communities that meet a new statewide standard for fire-hardening. The bill also would authorize the insurance commissioner to require insurance companies to offer financial incentives for homeowners to do the work to make their homes more fire-safe.

Devastating wildfires throughout California over the past several years have forced local governments to rethink their role in reducing future wildfire risk. Marin and Sonoma County voters are being asked on the March 3 ballot to make a specific investment to prevent wildfires in their communities.

The proposed Measure C in Marin County would levy a parcel tax on commercial and residential parcels to raise approximately $19.3 million per year solely for wildfire prevention programs. The proposed Measure G in Sonoma County is a half-cent countywide sales tax which, if passed, would generate about $51 million a year for county fire agencies to increase preparedness and better combat the ongoing threat of devastating wildfire.

Under Levines AB 3258, property owners in areas that have adopted dedicated local fire prevention programs would be able to renew a property insurance policy in a historically high-risk area or potential modifications to property insurance premiums.

AB 3258 will be considered by the State Assembly this spring.

Related:

Was this article valuable?

Yes No

Here are more articles you may enjoy.

Get the latest insurance news sent straight to your inbox.

Read the original post:
California Bill Aimed at Property Insurance in Communities Investing in Wildfire Prevention - Insurance Journal

Mexico is an emerging market, but it's rarely mentioned in the same breath as higher-growth countries like China or India. The country's GDP growth decelerated over the past five years, and it's still struggling withpoverty, crime, and corruption.

Yet there are flickers of hope on the horizon. The trade war between the U.S. and China caused some companies to move their manufacturing plants to Mexico to avoid tariffs. Mexico's poverty rates arealso gradually receding, and its per capita income rose from $5,481 to $9,673 between 1998 and 2018.

That's why it wasn't surprising when Microsoft (NASDAQ:MSFT) recently announced that it would invest $1.1 billion in Mexico over the next five years. In a video released by the Mexican government, CEO Satya Nadella stated that Microsoft would build a new data center in Mexico and invest in new training labs and programs across the country.

Image source: Getty Images.

Nadella, who met with Mexican president Andres Manuel Lopez Obrador last year, stated that the investment would expand "access to digital technology for people and organizations across the country." Let's dig deeper to see what Microsoft's investment tells us about its future plans for Latin America.

Microsoft generated 51% of its revenue fromthe United States in fiscal 2019. The rest came from "other countries," but Microsoft doesn't break down its international sales by individual countries or regions. However, it noted that no country outside of the United States generated more than 10% of its revenue.

Mexico is the15th-largest economy in the world, so it probably only accounts for a low single-digit percentage of Microsoft's annual revenue. Nonetheless, planting roots in Mexico could still benefit Microsoft in several ways.

Image source: Getty Images.

First, it will expand the global presence of its cloud platform Azure, which isavailable in 56 regions and 140 countries worldwide. The majority of its data centers are concentrated in the U.S., Europe, Asia, and the Middle East. It only operates two data centers in Africa, and its single center in Latin America is located in Brazil.

Building a new data center in Mexico would significantly boost Azure's capacity in Latin America. Azure -- whichgenerated 62% annual revenue growth last quarter -- is the core growth engine of Microsoft's commercial cloud unit, which grew its revenue 39% to $12.5 billion (34% of its top line) last quarter.

Microsoft could tether more Mexican businesses to Azure, which would widen its moat against its larger rival Amazon (NASDAQ:AMZN) Web Services (AWS). AWS currently offers three availability zones, all based in Brazil, for Latin America.

Microsoft could also bundle other commercial cloud services (like Office 365 and Dynamics 365) with Azure. Some of Azure's topcustomers, including Walmart (NYSE:WMT), also operate in Mexico -- so a regional data center could tighten Microsoft's grip on Walmart's Mexican businesses. Microsoft's investments in training labs could also produce skilled Mexican workers who could run its regional operations for lower wages than workers in other countries.

Microsoft's investment in Mexico is considered a rare victory for President Lopez Obrador's left-wing administration, which waspreviously criticized for implementing rigid business regulations that stifled local and foreign investments. Neither Microsoft nor the Mexican government revealed the exact terms of the deal, but the tech giant could be receiving tax breaks or other benefits for setting up shop in Mexico.

$1.1 billion over a period of five years -- or $220 million a year -- is pocket change for Microsoft, which isexpected to generate $142 billion in revenue this year. In short, it's a small price to pay to boost Azure's presence in Latin America, widen its moat against Amazon, and gain a firm foothold in an oft-overlooked emerging market.

Continue reading here:
Microsoft Is Investing Over $1 Billion in This Unloved Emerging Market - The Motley Fool

Since investors rarely behave according to financial and economic theory, behavioural finance has grown over the past twenty years.

Most investors know that emotion affects the way in which investment decisions are made and that greed and fear play a large role in driving investment markets. The actions of many investors are based on feelings rather than facts. They may make decisions based on a host of emotional biases that, unfortunately, undermine the chance of meeting the desired investment outcomes.

Admittedly, it is difficult to escape the influence of emotions on investment decision making, and that influence is more than likely the main reason many investors do not achieve the results they want. Our brains regularly set little traps for us and these emotional potholes may have very real costs associated with them. Crucial in overcoming this risk is awareness of how emotions can affect decisions, which may make you a better investor in the process.

In order to improve decision-making and investment results, it certainly helps to be aware of:

Some of the most common biases

Herd mentality

Our emotions may be influenced by the prevailing investment climate such as a fear of standing out from the crowd or missing out on a trend. Herd behaviour/mentality can amplify the market upswings and downturns and a prominent example was the dotcom bubble in the late 1990s.

Venture capitalists and private investors made frantic moves to invest huge amounts of money into internet companies, despite the fact that many of those dotcoms not having financially sound business models. Many investors more than likely moved their money in this way, on the reassurance they received from seeing so many other investors do the same thing. They did not want to miss out and followed the herd of sheep rather than their logic.

Greed and fear

This relates to an old Wall Street saying that financial markets are driven by two powerful emotions greed and fear. Succumbing to these emotions can have a profound and detrimental effect on investment outcomes, as too often, investors enter (on greed) or exit (on fear) the market at precisely the wrong time.

Overconfidence

Overconfidence may cause investors to overestimate the quality of their judgment or information. Some investors believe they can successfully predict market downturns and rallies. Others perceive themselves to have a knowledge advantage when they get a tip from someone in finance or read information from a publication or research report. In reality, several studies have shown that overconfidence bias leads investors to trade more frequently in an effort to align their positions with current market conditions.

The cost of frequent trading erodes returns and returns earned are rarely sufficient to make up the difference. Investors are very susceptible to forgetting the times they were incorrect or recognising the role that luck played in positive outcomes.

If you ever find yourself saying things such as nothing could ever go wrong, I believe it will go forever, or I know the risks, it may be time to check yourself. It is important to remember that every investment carries some risk and the potential for loss.

Loss aversion

The basic concept behind loss aversion is that investors feel losses much more than they feel gains. Investors would rather avoid losses than reap rewards. Loss aversion is often seen in financial markets stock market investors hold their positions with paper losses too long and sell their investment holding paper gains too early.

Consider an investment bought for R1 000 that rises quickly to R1 500. Investors would be tempted to sell it in order to lock in the profit. In contrast, if the investment dropped to R500, investors would tend to hold it, in order to avoid locking in the loss. The idea of a loss is so painful that investors tend to delay recognising it. More generally, investors with losing positions show a strong desire to get back to the break-even point.

This means that investors generally show highly risk-averse behaviour when facing a profit selling and locking in the sure gain and more risk-tolerant or risk-seeking behaviour when facing a loss continuing to hold the investment in the hope the price rises again

Albert Louw is the head of Business Development at Stanlib.

Read the original here:
The pitfalls of emotional investing: Part 1 - Moneyweb.co.za

Private equity and venture funds have invested record sums into the global education sector$30 billion in the past five years across K-12 and workplace learning. Since 2017, investment has accelerated with $14 billion allocated, according to research firm HolonIQ.

Despite the influx of capital, employers, schools and policymakers are only just beginning to harness the sectors advancements in the delivery, accessibility and effectiveness of education technology. As adoption of these products and services increases around the world, so too does the opportunity for investors and entrepreneurs to generate positive social and economic impact alongside financial returns.

Here are five key trends to consider as education enters a new decade:

In the 1940s and 50s, employers seeking to attract the best workers offered healthcare benefits. In the early 2000s, employers offered free snacks and installed foosball tables.

Those perks have lost their luster, and with help from the Affordable Care Act, even healthcare is becoming less of a differentiator. Today, leading corporations hope to drive employee engagement, retention and advancement through providing education.

In 2014, Starbucks and Arizona State University pioneered a new kind of partnership. By offering high-quality, affordable online courses and programs, coupled with tuition assistance, ASU and Starbucks enabled thousands to become degree holdersdebt free. In a recent interview with CNBC, Starbucks CEO Kevin Johnson pointed to the College Achievement Plan as a driver for sales growth, because employee engagement yields customer engagement.

To broaden this workplace education initiative, The Rise Fund partnered with ASU and other leading online universities to launch InStride, providing valuable educational credentials to the employees of forward-thinking corporations. In bringing affordable education to the workplace, companies like InStride, Guild, Degreed and EdAssist are addressing the biggest issues in higher education: career relevance and student debt.

Today, 95 percent of teenagers have access to a smartphone, and the average teen is now spending more than 7 hours per day on their screens, including over 1.5 hours on social media. But the proliferation of technology does not come without concerns. These tools can amplify feelings of loneliness and serve as a platform for cyberbullying.

Mental health problems, especially among teens, increased significantly in the last decade. Seventy percent of teenagers identify mental health as a major issue, worse than drug addiction, and gangs. Suicide is now the second-leading cause of death among 10- to 24-year-olds, and the rate has tripled over the last 10 years. In a Harvard Medical School study of 67,000 college students across more than 100 institutions, 1 out of 5 students surveyed said that they had thought about suicide.

Teachers and administrators are hungry for effective ways to teach social and emotional learning, says former U.S. Secretary of Education Arne Duncan.

Who will pay for these needed services? Most are paid by schools or districts, but other funding approaches are emerging. One of our portfolio investments, EverFi, finds corporate partners to fund their bullying prevention programs in schools. Other companies, like Presence Learning, are experimenting with models that may be reimbursed by health insurance, while Aperture Education helps schools to find grant funding for their services.

Education technology reached a tipping point in the last decade. Broadband penetration in K-12 schools reached over 98 percent, while low-cost computing devices like Chromebooks have proliferated in classrooms.

This has laid the infrastructure to support new instructional tools, many built by new companies that have emerged to compete with traditional print publishers. HolonIQ estimates that global spending on digital education tools surpassed $150 billion last year, and will double by 2025.

But purchasing is not proof that something works. Even more concerning: many tools may simply be gathering (digital) dust. A recent study by the University of Pennsylvania, only 30 percent of edtech licenses are actually used.

In any future economic downturn, expect technology providers who fail to show evidence of improvementlet alone usageto get axed. Those seeking to avoid this fate would do well to invest in proving that their products work. DreamBox, (another portfolio company) invests in efficacy research led by independent third-parties including Harvard and SRI International. Lexia Learning, a subsidiary of Rosetta Stone, employs a team of PhDs who send their research out for peer review.

Recently updated federal guidelines have also raised the bar for efficacy evidence that educational services should demonstrate before public funds can be used to purchase them.

Duolingo made headlines in December when it raised $30 million at a $1.5 billion valuation, reaching the unicorn milestone just seven years after the company launched. While it offers courses in several languages, a big growth driver internationally is English language learning, where it competes with online providers Babbel, Busuu and Rosetta Stone.

As businesses have expanded globally through tech and business process outsourcing, English language proficiency has become an important path to economic opportunity. According to studies by the World Bank, in India, those fluent in English earn 34 percent more on average than those who are non-fluent, while in Nigeria, the English-language wage premium is 40 percent.

In emerging markets, English language proficiency is a core component of what many parents look for as they seek high-quality schools for their children. That demand has fueled the growth of multi-billion dollar, dual-language K-12 platforms like Cognita, GEMS and Nord Anglia in markets around the world.

Rising edtech expenditures and privacy concerns have caught the eye of regulators. A group of U.S. Senators recently requested 50 technology companiesincluding education technology providersto provide written responses to questions about student privacy safeguards. These inquiries come at a time when many believe the enforcement of federal education regulation is increasingly lax.

Edtech providers are as vulnerable as their peers in other industries. At a major cybersecurity conference last fall, an 18-year-old student detailed vulnerabilities he found in Blackboard, one of the most widely-used learning management systems in the country.

As U.S. edtech companies expand globally, they will also find themselves subject to stricter European data privacy laws, like GDPR. They may also find themselves at the mercy of sudden changes in national policies, such as the restrictions recently imposed in China on foreign investment in K-12 programs.

The Rise Fund has made investments across these themes, and as we enter the next decade, the correlation between educational attainment and economic opportunity will continue to drive the demand for tools and services that bridge these two goals. For investors and entrepreneurs who choose wisely, opportunities abound for attractive returns and impact through the power of education.

Continued here:
Education Is the New Healthcare, and Other Trends Shaping Edtech Investing - EdSurge

One of the largest utility companies in the U.S. Midwest, Ameren, has announced that it will spend $7.6 billion on a five-year grid modernization plan that includes installing smart meters for its more than 1.2 million customers, adding solar energy and battery storage in rural areas, switching to storm-resilient utility poles and wires, and purchasing 700 megawatts (MW) of wind power, Utility Drive reported.

The initiative, known as the Smart Energy Plan, is the latest expansion of Amerens green-energy push. The company, which serves homes and businesses in Missouri and Illinois, announced three years ago that it would retire more than half of its coal-fired generating capacity by the end of 2022. Ameren has already made substantial investments in green energy and energy efficiency programs in Illinois, starting in 2011. The new $7.6 billion program would focus on Missouri

The utility plans to install 120,000 smart meters in Missouri in 2020 and more than 800,000 by 2023, as well as web portals that customers can use to access their energy data, Greentech Media reported. Ameren also aims to purchase 50 MW of solar in Missouri by 2025 and 100 MW by 2027. Lastly, the $7.6 billion strategy includes spending $1 billion for wind energy in 2020.

Missouri currently lags far behind its midwestern neighbors in wind capacity Illinois has more than 5 gigawatts (GW), Oklahoma has 8 GW, and Iowa has 10 GW. As Ameren prepares to close some of its coal-fired power plants, investments in wind energy could help narrow this gap in electricity generation.

Amerens annual earnings have gone up in recent years since launching its green energy initiative in 2019, the companys net income was $828 million, up from $815 million in 2018, according to Utility Drive. The utility said the Smart Energy Plan could bring more than 3,000 jobs to Missouri.

The Smart Energy Plan means investment in state-of-the-art technology, equipment, and controls to reduce outages and restore power faster when they happen, Ameren Missouri President Marty Lyons said in a statement. Weve been able to continue our system upgrades and create significant jobs while lowering rates over the last two years.

View original post here:
Major Midwest Utility to Invest $7.6 Billion in Smart Grid Technology and Renewables - Yale Environment 360

Oliver Furrer | Cultura | Getty Images

The spread of the coronavirus helped to sink the Dow Jones Industrial Average more than 900 points when the market opened on Monday.

And if that decline goes past 1,000 points, it could be the biggest one-day drop since 2018.

If you're like many investors, you may be inclined to check your investment balances, including your 401(k), in reaction to the news.

Yet reacting to a sudden market fall is exactly what you shouldn't do, according to one expert.

"Volatility is inherently frightening," said Dan Ariely, professor of behavioral economics at Duke University and chief behavioral economist at personal finance app Qapital. "Being frightened means that we are paralyzed, we think about it too much."

"It influences our well-being, and it doesn't necessarily lead to good decisions," he added.

In 2008, when the markets were going crazy, Ariely found himself checking his own accounts more frequently as everything changed every half hour.

On a Friday morning, before a weekend away with his wife, he found himself consumed with checking his investments. And the compulsion put him in a bad mood.

"I wasn't going to sell," he said. "I wasn't going to buy; I was just kind of looking obsessively.

"It was about noon when I realized I was out of control," Ariely said. "I was looking too much."

Consequently, Ariely decided to enter his password wrong three times and lock himself out of his account.

"I couldn't check anymore, and the weekend was much nicer," Ariely said.

What's more, Ariely took his time before fixing his account so that he could check it again.

"If we're going to look at it going up and down, we're just going to be more miserable," Ariely said. "We're not only going to be more miserable, but act on it."

Those moves often include fleeing from stocks to bonds or cash investments with a higher expected value for those with a lower expected value.

"Historically, those are some of the biggest mistakes that people can make," he said.

Dan Ariely, behavioral economist and psychologist.

Photo: Mary R.

Checking numbers, too, often can make it more difficult to accurately interpret trends, according to Ariely.

Take weight loss, for example. If people look at their weight in precise measurements with decimals say 162.3 pounds they tend to create stories to make sense of what they are seeing. And the result is often that they become unmotivated, Ariely said.

If instead people look at their weight data in a less granular way, say how it trends over several weeks, they can more accurately see what is happening. Plus, they tend to get less anxious and take better care of their health, he said.

More from Invest in You: How this couple paid off their $300,000 mortgage in 5 years Here's the secret to multiplying your savings Save $1,000 without sacrificing anything you really love

View post:
Avoid this investing mistake as coronavirus fears grip the markets - CNBC

Please enable Javascript to watch this video

CLEVELAND (WJW) -- The stock market took a major hit this week and so did many 401(k) retirement plans.

No one is sure how the coronavirus outbreak will effect the economy and that has many investors nervous.

"If you get online this weekend and look at your account balance and it freaked you out a little bit, you might want to wait until we get a little bit of a recovery, and then re-assess your level of risk and see if you want to diversity it into some other things," said Jim Lineweaver of Lineweaver Wealth Advisors in Valley View.

The virus halted production and manufacturing in parts of China, but Lineweaver said that has appeared to stabilize. He said American biotech companies could actually see a "boost" as they race to come up with a coronavirus vaccine.

Go here to read the rest:
Could the coronavirus outbreak impact your retirement investments? We ask the experts - WJW FOX 8 News Cleveland

New property investors sometimes let the cachet of owning a rental property cloud their ... [+] decision-making process, preventing them from objectively assessing alternatives to buying real property.

Owning real estate can certainly pay off, but to say its unequivocally a better investment than putting money in the financial markets is short-sighted. Over the years Ive spoken with numerous investors who ended up renting their home when they moved instead of selling, buying an income property just because thats what their parents did, or buying a rental unit because they werent sure what else to do with their money and the income property narrative made sense.

Real estate is a very emotional category for many investors, which can create issues when investors arent able to objectively analyze the merits of a purchasing decision. Due to the specific risks associated with real estate investing, it doesnt make sense for every investor. Even when it is appropriate, its important to consider diversifying outside of real property.

Its impossible to adequately compare the returns of privately held individual real estate investments to the broad-based stock market. Even when some data is available, geography, taxation, cash flow, purchase price, expenses, and other factors all weigh heavily. From a purely price-appreciation standpoint, the Zillow Home Value Index is a helpful resource.

The chart below shows the Zillow Home Value Index (ZHVI) from 1997 to 2019 for all home types, which includes single family residences and condos.

Source: Zillow Home Value Index (1997 - 2019)

Using four of the top ten geographic markets by size, its clear theres a lot of variability from the U.S. as a whole and the regions themselves. Over the 23-year period, Chicagos cumulative return was by far the worst, at 47% while prices in the Boston market appreciated the most at 185%.

Kristin McKenna, Darrow Wealth Management

Comparatively, the S&P 500 achieved a total return of 552%, including dividend reinvestment, during this same period.

Of course there are limitations on the comparison between Zillows data on home price appreciation and the actual returns investors can achieve with an investment property. Most notably, it doesnt account for the potential of ongoing cash flow from an income property or how a mortgage can provide leverage to boost investment returns. On the flip side, the data also doesnt account for any cash investment in the property, expenses, selling costs, and so on.

Individuals dont always realize they can gain exposure to the benefits of owning real estate without the biggest risks of being a landlord. Real estate investment trusts (REITs) offer just that. Like other publicly traded ETFs and mutual funds, REITs come in many flavors depending on your investment goal. You can purchase a rental property REIT that invests in specific geographic areas or a broad-based fund that invests in commercial property around the U.S. or around the world.

Using the S&P United States REIT Index as a comparison, over the last 10 years (ending 2/20/20) the index returned over 12.50% on an annualized basis while the S&P 500 was up over 14% (annualized) during the same time (for comparative purposes, S&P Dow Jones Indices bases data for both indices at 100). Though real estate is generally a more volatile asset class due to its sensitivity to interest rates, the returns are at least suitable for comparison.

The stock market has several advantages over real estate from an investment standpoint: little capital required to participate, losses are limited to your original investment, readily available data to compare investments and assess risk, liquidity of financial markets provides an easy out when you need to cash out and the value of your asset is constantly updated so you always know where you stand (at least for today).

Owning a rental property can provide ongoing income and help protect against inflation, but its also cash-intensive and highly illiquid. Aside from the upfront capital needed to buy the property, youll need to keep enough cash to pay for any emergency repairs that arise, special assessments in a condo building, or cover the mortgage and maintenance if you have a vacancy. Over time youll need to make improvements to the property to command higher rental income or prepare for a sale, which generally costs 5% - 6% of the sale price in commissions. The opportunity cost of sidelining all that cash is quantifiable and should be estimated in cash flow projections when analyzing a possible investment.

Much like the stock market, there are many factors outside of your control when youre a landlord. Perhaps the areas largest employer moves their headquarters, or an influx of new luxury rental units flood the market, driving rental prices down.

As a landlord, you must be responsive to tenants as problems ariseeven when its inconvenient. Paying a property manager can alleviate much of your workload, but unless you have a large profit margin or sizable real estate portfolio, the cost of doing so could leave you in the red. Your physical distance from the property may require you to pay on-site managers.

Investing in publicly traded mutual funds and ETFs, on the other hand, can be done from anywhere. Unlike real estate, where hiring a property manager is really just a cost center, a financial advisor may be able to save you time and improve your bottom line through planning opportunities and a risk-adjusted investment strategy.

Aside from property upkeep, owning a rental property also requires you to find and vet tenants, navigate state housing laws in the event of property damage or tenant issues, and resolve problems that may arise with neighbors or homeowners associations.

Time is money, especially for busy professionals. As youre running the numbers and quantifying the opportunity cost, make sure the expected cash flows are enough to justify your time-weighted return.

As with any investment, diversification is one of the best ways to manage your risk. Real estate can be a great part of an investment portfolio for the right investor who knows what theyre signing up for when becoming a landlord. Before getting wooed by the idea of becoming a land baron, talk to someone who owns a rental property and run the numbers. For busy professionals, it can be difficult to find a property with enough upside and ongoing cash flow to justify the time and hassle of being a landlord.

Read this article:
Is It Just A Myth That Real Estate Is A Better Investment Than Stocks? - Forbes

Published: Feb 26th, 2020 - 12:39pm (EST)

Updated: Feb 27th, 2020 - 3:45am (EST)

LAFAYETTE, Ind. (WTHR) Subaru of Indiana Automotive will be adding 350 new jobs to its Lafayette plant.

The company announced on Tuesday a $158 million investment to add a new service parts facility and a transmission assembly shop on the plants 820-acre campus.

We are proud to continue investing in Indiana, said Scott Brand, senior vice president of administration and quality. We also appreciate the tremendous support these plans have received from the state, Tippecanoe County, and the city of Lafayette.

Subaru has not yet said when a job fair will be held to fill those positions.

In November, the plant held a job fair to fill 250 production jobs.

In 2017, a $140 million investment in the facility led to 200 new jobs.

Around 50 percent of Subarus sold in North America are built in Indiana.

Visit link:
Subaru investment to create 350 more jobs in Indiana - WTHR