Economy

Investments : Your Money Working Hard For You

MICHIGAN CHRONICLE — Saving money is certainly better than spending it frivolously.

Published

5 years ago

February 23, 2019

By Jordan Woods

Saving money is certainly better than spending it frivolously. But being responsible also means spending so that our money works for us even when we’re sleeping. Investing, particularly in the stock market, can be scary or intimidating, especially when you’re just starting. However, it should be an important aspect of your long-term goals (remember, we’re working to build generational wealth). This installment will give you the framework to become a savvy investor by exploring some examples investment vehicles in terms of risk and potential return, and providing you with resources to plan your investment strategy.

Investment Vehicles

1. Low Risk:

Certificates of Deposit (also known as “CDs”) give your money to the bank for a specific period of time, giving them extra cash on hand. In turn, you receive a more predictable return ( typically 0.5-3%) at a rate that is often higher than that of savings accounts. CDs are also covered by the same FDIC insurance that your bank is, further protecting your investment.
Treasury Bonds are fixed-interest U.S. Savings Bonds issued by the U.S. Department of the Treasury. They are fully backed by the United States government and are considered to be among the safest investments one can make, but do not reach their maturity date for 10+ years after being bought.

Medium Risk:

The most talked about investment vehicle is the stock market. You can buy stakes of ownership yourself, or you can put your money in the hands of an group of finance professionals who focus their time on finding the best mixed of investments for a consistent, positive return (typically around 5-10%).
A Mutual Fund is a company that pools money together from investors and then invests that money in stocks, bonds, short-term securities, etc. They help to mitigate some of the risk through diversification, but also can include som riskier investments as part of their portfolios, meaning that they can reap some of the rewards of high-risk investments without exclusively relying on those investments.
An Index Fund (or ETF) is a type of mutual fund that is designed to invest in, and thus replicate, the performance of one particular type of investment. For example, an S&P 500 ETF would invest money across all of the S&P 500 companies, so that the fund’s performance matched that of the S&P 500.

High Risk:

Junk Bonds are bonds that promise higher interest payments than regular bonds, primarily because they come with a higher risk of default, because the entity issuing them is in poor financial shape. These bonds are typically issued by companies looking to raise capital quickly.
Cryptocurrencies (such as Bitcoin) are digital assets that serve as mediums of exchange, using cryptography to ensure more secure financial transactions. Many types of cryptocurrencies experience large swings of positive and negative returns that are unpredictable, but if caught at the right time can potentially increase your positive return tenfold– or more. Many, if not most cryptocurrencies have no official backing, further exposing your investment.

These are just some of the many ways that exist for you to invest your money. No matter how you choose to invest, one essential guideline is to spread out your portfolio across a few different investment vehicles. This practice, known as diversification, is a prudent response to the fact that some investment types, and individual investments within each type, are more volatile than others. ROI is the percentage of your original investment that you have gained or lost since you decided to invest. An acceptable ROI from following sound investment principles is typically around 7-8% over the long term. This is including outlier investment scenarios where people made and kept large sums of money in a short period of time. Keep this in mind when deciding where to invest and when analyzing your portfolio’s performance. Two things we all can and should do are to start small, and then remain patient with our investments. Often lower average positive returns over time also come with less risk, and vice versa. First Independence Bank’s Asset Allocation calculator can help you create a balanced portfolio and their Investment Returns calculator can help you track and meet your long-term investment goals.

Keep an open mind when easing your way into investing. Whether you’re saving for college, looking to start a business, or looking towards retirement, keep in mind the typical timeline for returns for the things you choose to invest in and how that aligns to the timeline for your reason(s) for investing. Working with an investment professional and doing your own research will help you create and stick to a dynamic investment strategy that is based solely on your personal financial goals instead of those of other people.

This article originally appeared in the Michigan Chronicle.

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Business

Black Business Summit Focuses on Equity, Access and Data

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship. Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Published

5 days ago

April 20, 2024

Oakland Post

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA), answers questions from concerned entrepreneurs frustrated with a lack of follow-up from the state. January 24, 2024 at the Westin Los Angeles Airport Hotel, Lost Angeles, Calif. Photo by Solomon O. Smith

By Solomon O. Smith, California Black Media

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship.

Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) was a guest at the event. He told attendees about his department’s efforts to increase access for Black business owners.

“One thing I’m taking away from this for sure is we’re going to have to do a better job of connecting through your chambers of all these opportunities of billions of dollars that are coming down the pike. I’m honestly disappointed that people don’t know, so we’ll do better,” said Omishakin.

Lueathel Seawood, the president of the African American Chamber of Commerce of San Joaquin County, expressed frustration with obtaining federal contracts for small businesses, and completing the process. She observed that once a small business was certified as DBE, a Disadvantaged Business Enterprises, there was little help getting to the next step.

Omishakin admitted there is more work to be done to help them complete the process and include them in upcoming projects. However, the high-speed rail system expansion by the California High-Speed Rail Authority has set a goal of 30% participation from small businesses — only 10 percent is set aside for DBE.

The importance of Diversity, Equity and Inclusion (DEI) in economics was reinforced during the “State of the California Economy” talk led by author and economist Julianne Malveaux, and Anthony Asadullah Samad, Executive Director of the Mervyn Dymally African American Political and Economic Institute (MDAAPEI) at California State University, Dominguez Hills.

Assaults on DEI disproportionately affect women of color and Black women, according to Malveaux. When asked what role the loss of DEI might serve in economics, she suggested a more sinister purpose.

“The genesis of all this is anti-blackness. So, your question about how this fits into the economy is economic exclusion, that essentially has been promoted as public policy,” said Malveaux.

The most anticipated speaker at the event was Janice Bryant Howroyd known affectionately to her peers as “JBH.” She is one of the first Black women to run and own a multi-billion-dollar company. Her company ActOne Group, is one of the largest, and most recognized, hiring, staffing and human resources firms in the world. She is the author of “Acting Up” and has a profile on Forbes.

Chairman of the board of directors of the California African American Chamber of Commerce, Timothy Alan Simon, a lawyer and the first Black Appointments Secretary in the Office of the Governor of California, moderated. They discussed the state of Black entrepreneurship in the country and Howroyd gave advice to other business owners.

“We look to inspire and educate,” said Howroyd. “Inspiration is great but when I’ve got people’s attention, I want to teach them something.”

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Bay Area

Port of Oakland Commission Votes to Change Oakland Airport to ‘San Francisco Bay Oakland International Airport’

The Port of Oakland Commission voted unanimously to change the name of Metropolitan Oakland International Airport to San Francisco Bay Oakland International Airport at a commission meeting Thursday afternoon. The Port initially announced the name change on March 29, claiming that the change will attract more passengers and enhance the airport’s visibility. They contend that the airport often gets neglected by the public’s lack of knowledge of Oakland’s proximity to San Francisco.

Published

7 days ago

April 19, 2024

Oakland Post

Port of Oakland commissioners voted unanimously to change the name of the Metropolitan Oakland International Airport to San Francisco Bay Oakland Airport at Commission meeting on April 11.

By Magaly Muñoz

The Port initially announced the name change on March 29, claiming that the change will attract more passengers and enhance the airport’s visibility. They contend that the airport often gets neglected by the public’s lack of knowledge of Oakland’s proximity to San Francisco.

“We want people to know where Oakland is and how beautiful our city is. We want them to visit, we want them to spend their money, and we want to keep our money into our local economy,” Port Commission President Barbara Leslie said at the meeting.

The commissioners shared anecdotal experiences and research to explain how this new name change will elevate and add to the growth of Oakland, not take away from their Bay Area neighbors.

The Port claimed that local residents had been asking for more options in domestic and international flights, but in order to do that, outside travelers need to be aware of Oakland’s presence first.

Since the announcement of the new name, San Francisco leaders strongly opposed the suggestion for a change, the City Attorney going as far as threatening legal action.

SF City Attorney David Chiu announced Monday that his team sent a letter to the Port of Oakland, writing that if Oakland goes forward with the name change, the city will go forward with a lawsuit to prevent the use of their trademarked name.

San Francisco owns U.S. federal trademark registrations for the marks “San Francisco International Airport”, the letter says.

Chiu further claimed that the name change will only cause confusion and chaos for travelers who are used to seeing the San Francisco name in the SFO trademark.

“We want to see the entire Bay Area thrive as a tourist destination and expand our offerings to visitors, but this proposal is not a legal or practical way to go about it. If Oakland moves forward with this proposal, San Francisco will pursue legal action to prevent misuse of our trademark,” Chiu said.

SF Mayor London Breed joined Chiu’s letter, stating that Oakland does not need to add the internationally popular city to its brand in order to grow its services.

“[Oakland] is rich in culture and wonderful people and has its own unique identity. It does not need the name San Francisco as part of its airport to stand out,” Breed wrote.

The Port defended its proposed actions, saying that if the vote did go forward, they would “take all appropriate measures to defend its right to use this accurate geographic identifier.”

“The proposed name modification will clarify, not confuse. The new name identifies where OAK is actually located, which is on the San Francisco Bay,” a spokesperson said on behalf of the Port.

Support for the name change extends beyond the Port. Several regional leaders, airlines and community members have come out in support of the name change, including Oakland Mayor Sheng Thao.

“This adjustment isn’t just about signage—it’s about inviting travelers to discover all that Oakland and the region have to offer. From our local dining scene to unique shopping spots and cozy hotels, there’s something here for everyone. Let’s work together to ensure that Oakland Airport continues to serve as a welcoming gateway for visitors and a source of pride for our community,” Thao said.

Because of public outcry amongst residents and leaders in Oakland and San Francisco before and during the Commission meeting, the Board decided to extend the second reading for the proposed name change from the end of April to the first meeting in May. This decision will allow commissioners to connect with community groups and leaders over their concerns for the change.

The Port Commission is scheduled to hold a second reading of the proposed name change on May 9.

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Business

V.P. Kamala Harris: Americans With Criminal Records Will Soon Be Eligible for SBA Loans

Speaking in Las Vegas on Jan. 27, Vice President Kamala Harris announced a forthcoming federal rule that will extend access to Small Business Administration (SBA) loans to Americans who have been convicted of felonies but have served their time. Small business owners typically apply for the SBA loans to start or sustain their businesses.

Published

1 week ago

April 16, 2024

Oakland Post

On her daylong trip, Harris was joined by Horford, SBA Administrator Isabella Guzman, Interim Under Secretary of Commerce for Minority Business Development Agency (MBDA) Eric Morrissette, and Sen. Catherine Cortez Masto (D-Nev).

By California Black Media

Small business owners typically apply for the SBA loans to start or sustain their businesses.

Harris thanked U.S. Rep. Steven Horsford (D-NV-04), the chair of the Congressional Black Caucus, for the work he has done in Washington to support small businesses and to invest in people.

“He and I spent some time this afternoon with business leaders and small business leaders here in Nevada. The work you have been doing to invest in community and to invest in the ambition and natural capacity of communities has been exceptional,” Harris said, speaking to a crowd of a few hundred people at the Brotherhood of Electrical Workers Hall in East Las Vegas.

“Formerly incarcerated individuals face significant barriers to economic opportunity once they leave prison and return to the community, with an unemployment rate among the population of more than 27%,” the White House press release continued. “Today’s announcement builds on the Vice President’s work to increase access to capital. Research finds that entrepreneurship can reduce recidivism for unemployed formerly incarcerated individuals by as much as 30%.”