February 14, 2020

Posted: February 14, 2020

AP

(AP) Delta Air Lines said Friday it will invest $1 billion over the next 10 years in measures designed to offset climate-warming carbon emissions from its planes.

Delta said the money would go into things such as boosting fuel efficiency and investing in efforts to remove carbon from the atmosphere by planting trees and restoring wetlands.

Aviation accounts for about 2% of global carbon emissions, but those emissions are rising with the growth in air travel. Airline industry officials worry about the emergence of flight-shaming reminding people of airplanes toll on the environment and its potential to reduce demand for air travel.

Airlines have taken small steps, including investments in alternative-fuel start-ups. They also point to their purchase of newer, more fuel-efficient planes in recent years.

However, revolutionary changes such as powering a large number of airline jets with electricity or biofuels are seen as years if not decades away.

Delta, which has an older fleet on average than many of its major competitors, has gotten poor marks for fuel efficiency.

In a report last September, the International Council on Clean Transportation ranked Delta eighth among 11 U.S. airlines in fuel efficiency per passenger on domestic flights in 2017 and 2018. Delta finished slightly ahead of American Airlines but behind Southwest and United. Frontier Airlines ranked first thanks to its newer jets, more direct routes, and more passengers per flight than most rivals.

Delta burned 4.2 billion gallons of fuel last year, 2.5% more than it burned in 2018.

We will continue to use jet fuel for as far as the eye can see, CEO Ed Bastian told CNBC. We will be investing in technologies to reduce the impact of jet fuel, but I dont ever see a future that we are eliminating jet fuel from our footprint.

Flight-shaming drew headlines last year when Greta Thunberg, the young Swedish climate activist, sailed across the Atlantic instead of flying to speak at the United Nations. Few people can opt for a sailboat trip, but in parts of Europe, flight-shaming is credited with increasing travel by train.

The U.N.s aviation body, the International Civil Aviation Organization, adopted a plan that calls for airlines to voluntarily start offsetting their increase in carbon emissions starting this year.

At a Delta investor conference in December, Bastian called environmental stewardship the existential threat to our future ability to grow. You see it happening in Europe. It is increasingly coming here to the U.S.

Atlanta-based Delta is the worlds largest airline by revenue. For 2019, it reported net income of nearly $4.8 billion an increase of 21% on revenue of $47 billion.

See original here:
Delta says it will invest $1 billion to cut carbon emissions - - KUSI

Chris Hollod wants to be known as one of the most active angel investors in the alcohol space.

After about a decade of making investments with billionaire Ron Burkle and actor Ashton Kutcher, Hollod, a Los Angeles-based venture capitalist, struck out on his own in 2019 and has shifted his focus from investing in tech companies such as Airbnb, Uber, Spotify and Warby Parker, to investing in consumer packaged good companies, specifically alternative alcohol companies.

Anything at the convergence of culture and wellness piques my interest, he told Brewbound. What Ive found Im most passionate about without question by order of magnitude is alternative alcohol, functional alcoholic beverages, clean spirits, near beer, non-alcoholic beverages, and all of these sober curious trends.

Hollods strategy is to make strategic bets in a handful of companies with complementary portfolios that arent competing in the same segments. His list of investments thus far includes San Diego-based hard kombucha company JuneShine, CBD brand Recess and botanical spirits brand AMASS. He is also acting as an advisor to up-and-coming mezcal maker Rosaluna and wine spritzer brand Hoxie.

In addition to his existing portfolio of companies and advisory roles, Hollod said he is in ongoing discussions with the founders of hard pressed juice brand 101 Cider, canned cocktail producer Vervet, and hard tea brand Loverboy.

Not that Hollod hasnt made investments in the beer space. Along with Kutcher, he was an early investor in Los Angeles-based House Beer, and he remains an investor and advisor in the lager brand.

However, as Hollod explains in the following conversation with Brewbound, investments in the beer space no longer align with his focus, passion and consumption habits. Within the beyond beer space, Hollod said he plans to invest around a couple million dollars annually, with investments of between $25,000 and $75,000 on the small end and $100,000 to $250,000 on the higher end.

Theres no set figure, he explained of how much hes willing to invest overall. Its my own money. I dont report to anyone. I dont have any outside investors.

Read on for excerpts from his conversation with Brewbound on his strategy, the types of companies hes looking to invest in and more.

What type of companies are you currently interested in investing in?

My investment thesis tag-line for Hollod Holdings is companies at the convergence of culture and wellness. So Im generally interested in new, culturally relevant, innovative health and wellness brands ranging from food to beverage to self-care to even pet-care. But Im most passionate about the alternative alcohol sector. Within that sector, I like start-ups that have already generated a bit of traction with at least one product and need to raise some capital to fuel exponential growth. I also have a bias toward LA-based companies, because its not only my home, but I think its the epicenter of cultural wellness trends at the moment.

Given your interest in the alcohol industry, are beer companies on your radar?

Unfortunately, not any more. Ive tracked the beer sector for a while, especially during the craft beer boom, but at this stage of the industry life cycle, I think the risk-reward profile of beer companies is too unbalanced. I just dont see much inspiration and innovation in the sector at this point.

Why not?

As an early-stage investor, Im attracted to budding subsectors with relatively minimal competition and endless growth potential, and that definitely doesnt characterize the beer industry at the moment. Overall, the beer space is just so crowded. By the end of 2018, there were roughly 7,000 breweries operating in the U.S.

The industry will always be a firm duopoly because its dominated by the two biggest players, Anheuser-Busch InBev and Molson Coors, which together comprise roughly 70% of all U.S. beer production. Growth rates are on the decline, and consumers are actively searching for more aspirational alternatives to beer.

Look at Boston Beer for example. Good thing they own Truly. I personally cant remember the last time I saw a Sam Adams beer, but I can definitely remember the last time I saw a Truly. Thats clearly anecdotal evidence, but as an investor, I have to rely on my own inferences, experiences, and gut instinct.

When it comes to beer, aside from maybe a super unique formulation, innovation really lies within marketing and branding, which is extremely expensive and fickle. I admit that the craft beer boom was absolutely epic, but its now time for the alternative alcohol movement to explode, which I think will inevitably cannibalize the beer industry.

So why are you so attracted to the alternative alcohol sector?

Its my job to follow and facilitate innovation, and I think there is a ton of innovation occurring in alcohol. When I started investing in consumer tech in 2010, both the App Store and iPhone were relatively new, so there was an unprecedented amount of innovation around those platforms. Im now seeing a confluence of so many different trends and drivers in the overall wellness industry, which is consequently sparking amazing innovation in the alcohol sector. Alcohol used to be relatively immune to health trends, but thats clearly no longer the case. Whereas the wellbeing movement was once confined to the coasts, its now unquestionably permeating the rest of the country. In addition to the health trends, theres a fundamental shift in consumer shopping behavior primarily driven by social media, mobile technology, and the immense influence of millennials, who are now the largest generation in U.S. history. Millennials are now calling the shots when it comes to alcohol, and they are demanding a greater and more authentic customer experience and product, which will continue to drive incremental innovation. I dont think the big alcohol brands will be able to sufficiently innovate in-house, so they will be forced to buy the cool new start-up brands as they begin to scale.

What do you look for in the companies in which you invest?

First and foremost, the company needs to have a compelling and innovative product that has the potential to actually scale across the country. It cant just be an interesting niche product that only appeals to Angelenos or New Yorkers, for example.

Beyond the product, the storytelling, branding, and narrative need to be impeccable. Our attention spans are so damn short right now, so new brands need to be expert storytellers in order to entice new customers and create a sustainable relationship with them.

I also like to understand the financials, especially gross profit margins. Investors always talk about TAM, which is the total addressable market. The companys TAM needs to be large enough to fuel massive initial growth. Otherwise, the start-up will hit a ceiling and be forced to spend tons of money on marketing, where there is very little margin for error.

Lastly, the entrepreneur needs to be an absolute beast. I love founders that are borderline monomaniacal. No matter how amazing the product may be, the founder has to be equally if not even more impressive.

Kombucha seems to be a beverage that hasnt realized its full potential in the alcohol sector outside of California. Given your investment in JuneShine, why are you bullish on kombucha?

In general, Im most passionate about functional alcoholic beverages with transparent, healthy ingredients. Yes, it feels good to get a little tipsy, but Im excited about other incremental functional benefits that alcoholic drinks can potentially provide. I think hard kombucha epitomizes this trend. The product is wholly organic, gluten free, and contains probiotics, antioxidants, and vitamins. And it makes you feel good without the aftermath of a pounding headache. Its just not cool to be hungover anymore.

The GTs [Kombucha] of the world have already nicely paved the way for the higher-alcohol kombucha brands to enter the sector, because the average consumer is now already aware of kombucha. I also love the demographics. When I realized that my girlfriend Bianca and I were both drinking hard kombucha in 2018, I immediately further diligenced the sector and found out that roughly 65% of JuneShines tasting room attendees were female, and 60% of their Instagram followers were female. Its generally quite difficult for Bud and Miller to effectively market to female millennials and rising gen z-ers, so I think the big guys will keep a keen eye on the emerging hard kombucha brands.

Weve already seen this trend substantiated by ZX Ventures investment in Kombrewcha. Theres also a growing anti-alcohol movement among young people, so I think hard kombucha is an emerging product that can potentially bridge the gap between alcoholic and nonalcoholic, based on its functional benefits and potential for lower ABV.

Hard seltzer has been the story of the last couple of years. But you dont seem to be investing in that area. Why not?

I credit hard seltzers with initially enticing me into the overall alternative alcohol sector. Ill never forget the first time I saw a Truly. I immediately dismissed it as a silly fad. Fast forward several years, and I was buying the stuff by the case for pool parties. Same with White Claw. The hard seltzer space is now a duopoly, with those two brands dominating the subsector. You also have A-B InBev eagerly pushing three seltzer brands: Bon & Viv, Bud Light Seltzer, and Natty Light Seltzer. The space is crazy now.

As a venture capitalist, my goal is to always pursue the next big thing, as opposed to simply backing a better version of White Claw, for example. Also, at this point, I just dont love the taste of flavored malt beverages, and I only invest in companies that I will actually consume and actively promote.

Beyond financial investment, what else do you offer the companies that you invest in?

Theres constant chatter in the venture capital world regarding smart money versus dumb money. All investors like to consider themselves smart money, but after doing this for more than 10 years across multiple investment funds, I make it an unbreakable requirement to only invest in companies where I can add value. My biggest strengths are high-level strategy, connectivity, and validation. Ill rarely spend five hours discussing operational specifics with an entrepreneur, but I love spending five minutes making an invaluable connection or acting as a strategic sounding-board to the CEO.

In general, Id like to think that Im at least one or two degrees of separation from most people, so I always enjoy making warm intros on behalf of my portfolio companies. Im a huge fan of gifting products and stocking my house and fridge with portfolio company products so that I can share them with friends and entrepreneurs that come through my house for meetings.

Regarding impact, I avoid pre-launch companies, because there are just too many moving pieces, and it dilutes my strategic impact. Instead, I think I make the biggest impact while a company is raising a seed or Series A round, after theyve raised a little money from friends and family and have launched at least one product in the market.

How many companies are you looking to invest in in 2020?

I kicked-off 2019 at a crazy pace. I was almost making one investment per week, which was similar to my investment cadence with Ashton back in 2011, when the consumer tech boom was in full effect. But I now really want to decrease my investment frequency and increase my average check size. Ideally, Id like to make one or two investments per quarter, but no more than one investment per month.

Beyond making a return, what are your goals for investing in these companies/spaces? And how will you generally define a successful investment?

My old boss and mentor, Ron Burkle, used to tell me, When you make an investment, you need to always focus on three requirements: 1. be proud of it, 2. enjoy it, and 3. make money from it; but if you have to miss on any of them, miss on making money. You must always be proud of what youre doing and enjoy it. That statement will stick with me for the rest of my career. Because when Im proud of an investment and actually enjoy it, the third component, making money, has a tendency to follow suit naturally. When investors chase money and returns, they sometimes get burned, because they can get pulled outside of their comfort zone and start making short-term decisions. But I like to chase inspiration and innovation, because money usually follows.

Photos by Jonathan C. Ward

Read more:
Venture Capitalist Chris Hollod on Why He is Investing in the 'Alternative Alcohol' Space - Brewbound.com

Venture capital has been flooding the various subverticals under the robotics umbrella in recent years, and the construction space is one of the largest beneficiaries.

Last November, we surveyed 13 of the top robotics-focused VCs to find out which areas of robotics are exciting them most going into 2020. One of the most common areas of attention respondents highlighted were startups focused on construction and manufacturing. In 2019 alone, the robotics space saw roughly 600 venture-backed fundraising rounds, while construction companies successfully raised roughly 200 venture rounds.

With our 2020 Robotics + AI sessions event on the horizon in early March, were diving back into the sector to learn about the attributes of construction attracting robotics VCs the most and which types of startups VCs are actually writing checks for in 2020. We asked 16 leading people who actively invest in construction robotics and work at firms spanning early to growth-stage to share whats exciting them most and where they see opportunity in the sector:

True Ventures has been investing in industrial automation broadly for over 4 years, focusing on founders who bring technology to market that eliminates repetitive manual labor and multiplies human productivity by automating routine tasks.

Read more:
Where top VCs are investing in construction robotics - TechCrunch

Last Novembers news about AstraZeneca launching a $1 billion venture fund with China International Capital Corporation (CICC) to invest in up-and-coming players was widely viewed as illustrative of the British drugmakers ambitions in China. As it turns out, its just as much about CICC Chinas largest investment bank and its plans in biomedicine.

Days after announcing the AstraZeneca fund, state-backed CICC disclosed that its teaming up with 11 domestic firms to raise a fund dedicated to innovative drugs, in vitro diagnosis, medical technology and health IT. Its now closed at $229 million (RMB$1.6 billion), according to a statement.

Branded as Chinas answer to Goldman Sachs since it was launched in 1995 with Morgan Stanley, CICC has underwritten several biotech IPOs in recent years including those of I-Mab, Junshi and Henlius.

CICC Capital, its private equity arm, is in charge of managing the new fund. With close to $43 billion (RMB$300 billion) in assets, CICC Capital has made biomedicine one of three pillars of its direct investment portfolio alongside IT and consumer business. Cancer drug developer Abbisko and wound care specialist Tenry Pharma are among its bets.

Notably, its also channeled its money into VC funds giving it a stake in big-name healthcare-focused players such as Lilly Asia Ventures, Qiming Venture Partners, HighLight Capital and LYFE Capital.

For the new fund, its chipped in around $2.9 million, while Shenzhen-listed Pharscin Pharma, Hebei Port Group, Xiamen Fig Group, Fujian Sunner Group, Huirong Qide Investment, Xian Huirong, Xinwen Venture Capital (a subsidiary of Sichuan Daily Press Group) and others provided the rest.

No announcement about funding biomedicine these days is complete without alluding to the coronavirus outbreak out of Wuhan. CICC Capital devoted a considerate portion of its brief statement to highlight that its been in contact with multiple companies to help accelerate development of nucleic acid diagnostics, therapeutic antibodies, antivirals as well as vaccines.

It also said its new biomedical fund is the first investment fund to have gone through a new financial registration pathway set up earlier this month specifically for funds geared at prevention and containment of the coronavirus outbreak.

Not only does the Chinese biomedical industry shoulder great innovative challenges under the epidemic, its also ushered in a rare development opportunity, the firm stated.

See the rest here:
AstraZeneca's Chinese investment bank partner raises $229M for its own new fund and it's all about the coronavirus - Endpoints News

The price of gold is firm and higher by 0.67% on the day so far, having travelled from a low of $1,556.60 to a high of $1,578.30. Worries with the coronavirus taking a turn for the worse on Wednesday night, following the announcements by the Chinese health officials in the Hubei province reporting242 new deaths and 14,840 new cases of the flu-like virus, dentedrisk appetite.

The worldwide death toll is up toat least 1,357 and the number of confirmed cases to more than 60,000. The uncertainty of the situation is supporting safe-haven asset classes due to theeconomic ramifications that a full breakout into a pandemic would have on the global economy. However, considering the means in which theChinese health officials have changed the method of diagnosing cases of the illness and as such,there was a sevenfold increase in the number of new cases of the virus, based on a new diagnostic protocol, according to Chinas National Health Commission.

Analysts at TD Securities explained that goldis a crowded trade, although the marginal day-to-day flow appears to be driven by the change in risk sentiment as it relates to safe-haven demand.

"The bull market narrative is widely acknowledged, which translates to an above-average number of traders holding a long position, although the average trader's position size is not excessive. But, when periods of haven buying drive prices to the upper-bound of the recent range, the position sizing per trader becomes more of a worry, making short term shakeouts a more prominent risk."

The analysts still expect that investment demand for the yellow metal will grow in 2020, as asymmetry from the Fed and the suppression of real rates across the globe will keep thegoldbug alive. "That being said, we expect only marginal flows fromCTAsas algorithmic trend followers remain well-positioned for the precious metal bull market."

Read the original here:
Gold holds firm in positive territories, investment demand to grow in 2020 - FXStreet

Another change in the broadcasting world appears to be on the horizon. Univision (which owns 65 local Spanish-language TV stations across the U.S., plus 58 local radio stations and national networks like TUDN and Fusion) has been holding sale talks for the last few months, and those now seem to be nearing a conclusion. Benjamin Mullin and Dana Cimilluca ofThe Wall Street Journal reported Friday that Univision was in exclusive talks with a group involving former Viacom executive vice president and chief financial officer Wade Davis, with a possible valuation of around $10 billion including debt, and that a deal for the broadcaster might finally be at hand.

Meg James of The Los Angeles Times added more confirmation on this:

Univision Communications, the nations largest Spanish-language media company, is nearing a sale to an investment group led by former Viacom executive Wade Davis, according to two people familiar with the matter.

Univision is in advanced negotiations to sell itself to the Davis group, which includes the private equity firm Searchlight Capital Partners, according to the sources, who were not authorized to comment.

A deal could happen as early as next week, but the two sides continue to hash out key provisions of the deal.

While this isnt closed yet, the valuation of around $10 billion is close to what Univision has reportedly been seeking. And that marks a substantial drop from the $13.7 billion billionaire Haim Saban and his private equity partners paid for the company back in 2007.

Of course, Univision has had some setbacks since then, including losing audience share and even World Cup rights to Telemundo. And their foray into English-language digital media with Gawker and The Onion didnt appear to work out well for them; they bought the former Gawker sites for $135 million in 2016 in a bankruptcy auction, and also bought into The Onion and its associated properties that year for less than $200 million for a 40 percent stake, then sold those sites to Great Hill Partners last year for much less than what they paid. Theyve also had some carriage challenges, including a dispute with Dish, and thats hurt their revenue. But theyve still found some success on other fronts, especially on the sports front with various soccer programming (including the UEFA Champions League, Liga MX, and MLS) and with Combate Americas. Last summer saw Univision team up more closely with Mexicos Grupo Televisa to rebrand Univision Deportes as TUDN, sharing content and expanding their sports programming.

Its unclear what a change in ownership could mean for Univisions sports content, as a lot depends on what the new owners decide to invest in. But sports programming, and soccer in particular, appears to be one of the better-performing parts of Univisions current approach, and it remains to see if their focus will pivot following a sale.

[The Wall Street Journal,The Los Angeles Times; photo of Univisions LA headquarters from biorealty.com]

Read more:
Univision reportedly "nearing a sale" to investment group - Awful Announcing

NEW YORK (Reuters) - Owning a piece of art is not just for the ultra-wealthy anymore.

Masterworks, a two-year-old startup, buys artwork with profit potential then sells shares in it to its customers using its online platform.

Our fundamental belief is that this is a very interesting asset class, which historically has been traded by the ultra-wealthy for hundreds of years, said Scott Lynn, a 40-year-old founder and chief executive of Masterworks.

But the only way to really invest in art has been to purchase a painting. Masterworks is the first platform that allows anyone to really invest in these great works of art.

Customers sign up, pick a piece of art, and decide how many shares they want to buy in it, with minimums starting at $1,000.

For instance, Monets Coup de Vent painting, valued at $7 million, has a couple of thousand investors right now, according to Lynn, who expects more interest by the time Masterwoks decides to sell it to a collector and then shares profits with its clients.

Masterworks, based in New York, divides the art market into two segments, Lynn said. One, called blue chips, includes bankable artists like Monet, and performs with high-single-digit or low-double-digit returns, with low risk.

Another is defined by mid-career, living artists, whose work can yield investors a return of roughly 12% to 20% a year, with moderate risk, Lynn said.

Reporting by Mark Porter and Aleksandra Michalska; Editing by Tom Brown

Read this article:
Investing in the art world is now just a click away - Reuters

Provided by CNBC Jack Washington in his home near Dallas, Texas.

Watching extended family members and friends lose their homes during the Great Recession had a profound impact on Jack Washington. Though his own family made it through the financial crisis mostly unscathed, Washington began to realize from a young age how important it was to put money away and never owe anything to anyone.

So he started saving. His ultimate goal: Put away as much as he could, so his home couldn't be taken from him.

This savings mentality has manifested from the time Washington was in high school, when he began considering what he wanted for his future. The now-33-year-old received his bachelor's and master's degrees without taking on any student loan debt, thanks to a combination of scholarships and working as a residential advisor.

He pursued degrees in business and forged a career in human resources to ensure he would make good money right out of school, and have ample career opportunities.

In the first five years after he graduated, he saved over $300,000. His next step: buying a house. He closed on his 1,600-square-foot home in Richardson, Texas just outside of Dallas at the beginning of June 2019, and paid off the mortgage by the end of August.

For the human resources manager, owning a home outright was more important than any potential stock market gains his savings could have accrued. So important, in fact, that he paid off his $300,000 home in around three months, cashing out around $225,000 from a brokerage account rather than keeping the funds invested for retirement. He took the rest from more conservative investments, like CDs and liquid savings accounts.

Washington's decision to pay off his home decades early comes from a deeply-held conviction that it's better to be completely debt-free than owe money to anyone, regardless of if it's "good" debt or not.

His family and friends "loved the idea," he says. But the bank and his financial advisors were less than thrilled, warning that he'd potentially lose out on some serious stock market returns.

"I wanted financial stability and security. I wanted somewhere we could set down roots," Washington tells CNBC Make It. "I look at it as a utility, not an investment."

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With no mortgage payment, here's how his home costs break down each month:

Washington's salary is $120,000 per year, but he managed to save over $300,000 while earning between $85,000 at his first job out of business school and around $100,000. Though he lives with his wife, LaTaya, Washington paid off the full amount of the mortgage with his own investments and savings.

Washington was able to save so much by living a "generally frugal lifestyle" on an above-average salary: He's driven the same car since college, significantly scaled back his and LaTaya's wedding and cuts his own hair. Each year since he started working full time at 27, he's set "mini goals" for himself to slowly scale up his savings.

He acknowledges that not having student loans gave him a "leg up," though he intentionally went to schools that would give him scholarships and worked as a RA so that he wouldn't have to take any on (LaTaya graduated with around six figures in student loan debt, but has been aggressively paying it off with her own salary).

With his business degree, Washington knew he'd get ample job opportunities with higher-than-average salaries, and having a partner with a similar, though not identical, money mentality has made saving and working toward his financial goals easier.

It was this combination of strategies that worked for Washington. "That's my approach to building up wealth and money," he says. "It's not one big thing that helps you get to a good place, it's a million little things and the choices that you make every day that add up."

He credits his money mentality to his parents: His dad worked at a transit company in Chicago and his mom was a secretary. "They never made a ton of money, but they had good sense," he says. "They paid their home off in about 15 years. I make more now individually than they do collectively."

Peace of mind isn't the only benefit to paying off his mortgage so quickly. It also gives him the freedom to pursue a secondary long-term financial goal: Leaving the workplace at 40.

By having one less bill to worry about each month, Washington reasons, taking a break from the corporate world relatively early in life will be more manageable. He intends to work and his wife has no plans to leave her full-time job but just not continue the "grind." He's dreamed of that kind of independence since high school.

"I felt like my family and friends and older people that I knew were always talking about how hard they were working," he says. "They didn't have work life balance, and I knew that I did not want that to be me."

While he liquidated almost all of his savings to pay off his home, he's rebuilt it over the past year (not having a housing payment every month helps) and says he now has around $140,000 socked away in various accounts. That's his focus going forward.

Washington's goal is a different take on the financial independence movement, which typically evangelizes saving and investing as much money as possible in order to retire early.

Obviously, having a partner who will continue to work full-time makes taking a break from the workforce easier to manage; he will likely join her health insurance plan, and her salary will, hopefully, cover any surprise expenses that crop up. But Washington plans to save aggressively in the years to come to cover as many expenses as he can on his own. Not having a housing bill which is the typical American's top monthly cost gives him more freedom.

Despite the other goals Washington is now able to pursue without a mortgage payment, pulling his money out of the market was a big sacrifice. He acknowledges that most financial advisors would say he should have kept the $240,000 beyond the down payment invested in the stock market, but he's okay with what might not be considered the most prudent financial move. Paying off the balance gives him the stability he's craved, and, mentally, that is worth more than any potential investment gains.

"If you look at it from a purely financial point of view, okay, they might be able to convince me to keep it in the market," he says. "But peace of mind was the main motivation to pay the house off."

But is it advice others should take? There's no easy answer, Danielle Schultz, an Illinois-based certified financial planner, tells CNBC Make It. A major downside is that he has "completely lost the value of compound return," she says.

Traditionally, financial advisors say it does not make sense to pay off loans with interest rates lower than what you could earn in the market. That varies, of course, but a good rule of thumb is to focus on investing, rather than loan repayment, if your loan has an interest rate below 5%, says Schultz.

Another reason you're typically advised not to pay off your mortgage early: The mortgage interest deduction lets couples filing jointly deduct the interest paid on a mortgage up to $750,000, with some restrictions. Washington doesn't qualify for that tax break now.

Washington also had to pay capital gains tax on his withdrawal from the brokerage account. Had he taken the money from a retirement account, he also would have been hit with an early withdrawal penalty.

That said, there is a significant emotional benefit to having a house completely paid off, particularly for those nearing retirement, Schultz says. "If it makes you feel better, I say go for it, but only if the value of the house is no more than one-third of your total net worth," she says. "You need most of your investments to be generating income in retirement."

It's the emotional weight that Washington is happy to have lifted.

"I can't beat the feeling and security of not owing anyone anything, regardless of market performance," he says. "I always wanted to have that stability ... As long as we can scrape up $6,000 per year for property taxes, we're fine."

It makes sense for him. "It's mine," he says. "You can't take it away."

Don't miss: How a 25-year-old used $40,000 in down-payment assistance to buy her first house in Atlanta

More:
This 33-year-old paid off his $300000 house in 3 months here's why he didn't invest the money - msnNOW

Theresa Reno Weber and Sarah Davasher-Wisdom, Opinion contributors Published 4:30 p.m. ET Feb. 14, 2020 | Updated 5:53 p.m. ET Feb. 14, 2020

Policymakers in Frankfort have taken great strides to secure a better future for Kentucky by investing in our children. We have seen improvements to early learning opportunities, reforms to child welfare systems, and increased funding for K-12 education. Policies like these lead to stronger communities and a stronger Kentucky economy.

But we know that much more remains to be done.

Consider these statistics:

Nearly 50%of children in Kentucky enter kindergarten unprepared.

Half of all Kentucky families live in child care deserts areas either without child care providers or an insufficient number of child care slots.

Kentucky preschool enrollment of 3- and 4-year-olds fell from 24th nationally in 2008 to 41st in 2018.

In 2016, more than 30,000 Kentucky parents quit a job, did not take a jobor modified their job due to lack of access to child care a startling statistic given that Kentucky currently has 15,000 more open jobs than individuals seeking jobs.

We miss out on $939 million in economic activity from parents kept out of the workforce by child care costs.

The data shows that Kentucky families are not finding the support they need. The commonwealths economy is suffering as a result.

More: America's parents want paid family leave and affordable child care. Why can't they get it?

Kids from a Louisville preschool attended Children's Advocacy Day at the Capitol.(Photo: Deborah Yetter)

In 2020, Greater Louisville Inc. and Metro United Way are urging lawmakers to make Kentucky a leader in early childhood success and remove child care as a barrier to employment. Kentucky must strategically increase access to high-quality child care through a mixed-delivery model that relies on both public and private partners. This would ensure that more Kentucky children enter the K-12 system ready to excel, and more parents participate and advance in the workforce. Increased investment in early childhood would also have a strong economic return. Every $1 invested in early childhood will yield a $5 return to our economy.

Together, GLI and Metro United Way have outlined a series of shared legislative and budgetary priorities:

Increase Child Care Assistance Program (CCAP) reimbursement rates and incentives for serving infants, toddlersand young children in high-quality child care centers and family care settings.

Increase per-child funding for public preschool.

Increase eligibility for both the Child Care Assistance Program and public preschool to 200% of federal poverty level.

Pass House Concurrent Resolution 52, sponsored by Reps. Josie Raymond and Steve Sheldon, to establish a task force to study early care and education programs in Kentucky to improve access and quality for children and families.

Read this: Forest preschool? Outdoor learning trend makes its way to Louisville

Both of our organizations are confronted regularly with the reality that too many Kentucky children are not being given the opportunities they need to succeed and too many Kentucky parents are forced to choose between their careers and caring for their children. Proposals like the ones we are advocating for in 2020 can help address these issues, develop our workforce, and ensure a brighter future for the commonwealth. We encourage all members of the greater Louisville community to join us in advocating for increased investment in our children and in Kentuckys future.

Theresa Reno Weber is CEO and president of Metro United Way, and Sarah Davasher-Wisdom is CEO and president of GLI.

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Getting a tax refund is like celebrating a delayed Christmas. But instead of spending money to be happy, you get money.

While there are plenty of ways you can spend your tax refund, there are also ways you can invest in yourself and your future. Here are a few ways to invest your tax refund.

If you've been struggling with old debt, such as credit cards, student loans or medical bills, now is the time to pay them off for good. If you're not sure which debt to pay off first, consider the one with the highest interest. High-interest debt, like credit cards, can compound through hefty interest charges, late fees and other penalties.

You could also use it to get current on late-but-not-yet-outstanding debt. For instance, catch up on your electricity bill or pay down the principal of your student loan. The sooner you pay it all off, the less burden you carry.

If you've been just scraping by with your regular paycheck, you may not have the extra cash for an emergency fund. Luckily, your extra cash can help. Use your tax refund to start an emergency fund. This can be a high-yield savings account you keep separate from your regular checking account. It's not an account that should be dipped into often -- unless there's an emergency -- but you should have easy access to it.

If you already have an emergency fund, this is a good time to give it a boost. An emergency fund should consist of three to six months' worth of expenses, which is different for everyone. If you don't think you'd survive financially if you missed a paycheck, put your tax refund towards your emergency fund.

Investing is different for everyone. It can be as small as microcontributions through an app such as Acorns, using a robo-advisor such as Betterment or managing your investments yourself through an online broker such as Robinhood.

Investing your tax refund is a great way to increase your return. While a high-yield savings account has APRs ranging upwards of 2%, the average stock market return is 10%. While you could stand to lose money in the stock market, you could expect serious gains as well.

Investing comes in many different forms. Before signing up with a company, determine if you're more of a hands-off investor (best for robo-advisors) or a hands-on investor (best for brokerages). Also consider your risk tolerance and when you plan to use your money. Stock market investing is best for long-term investment, or money that isn't touched for at least five years. So if you plan to use your investment money soon, you may want to consider other options, such as a savings account.

Preparing for your future after your career ends is one of the most important financial contributions you can make. If you have a work-sponsored 401(k) plan and don't max out your contributions, use your tax refund to do so. If you're older than 50, use the extra cash as a catch-up contribution.

You can also use it to start or fund your IRA. Whether you have a work-sponsored retirement plan or not, contributing to your IRA gives you an extra cushion in retirement. IRAs also have catch-up contributions, which is helpful if you're 50 years of age or older and don't feel confident you've saved enough for retirement.

A health savings account is a savings plan specifically designed for health-related costs. HSAs are a type of investment account, even though they're called "savings" plans. If you have a high-deductible health plan, you're eligible to open an HSA. HSAs are triple tax-free: Your contributions, earnings and withdrawals aren't taxed.

Whether you've put off going to college yourself or you want to get a head start on your child's education, use your tax refund to save for college. You have a few different options, like a high-yield savings account, an investment account or a 529 plan.

A 529 plan is specifically made for college savings. But it acts more like an investment account. Earnings grow tax-free and as long as you use the funds for education-related costs, you're not on the hook to pay taxes on your withdrawals.

While college is a great self-investment, there are other ways you can use your tax refund for a good cause. If college isn't on your radar, consider taking courses in a field or industry you're interested in. If you've been contemplating a career change, use your money to invest in that switch. If you need capital to start your own business, this could be your chance.

Also consider using it to give yourself a much-needed break. Whether this is a vacation fund or simply money for a massage or spa day, your tax refund can help you recharge, reset and refocus. It's easy to veer into other materialistic things, like shopping for new clothes or shoes, but try to stay focused on what would improve your well-being in the long-term, not a quick fix.

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