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Smart Investing for Beginners

The FinTech world has served an important function by showing us the importance of being a lifetime investor. Having some of your money invested in the stock market is a great way to support your long-term financial goals. There is a key theme that resonates in all market cycles – the earlier we start to invest the easier it will be to achieve our financial goals. Some people enjoy investing and others see it as a complicated chore, and that’s OK. Just know that it doesn’t have to be complicated. The important thing is to get started.

“Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t, pays it”. This quote is attributed to Abert Einstein, but it seems dubious. Whether Einstein said it or not, the core message is true that the earlier we start saving for our goals the better off we’ll be.

If you listen to famous investors like Warren Buffet speak they often talk about the importance of making money work for you. Learning the basics of investing will have benefits, such as giving you more income and building your wealth. Investing can be intimidating if you have no experience, but it doesn’t have to be complicated or time-consuming if you focus on some simple themes.

Importance of Investing

There are some obvious reasons why learning how to invest can help your financial situation.

For one, investing will help you build your wealth over time, even when you’re sleeping! This phenomenon is known as passive income, which is a big reason why many people begin investing in the first place. Some people have a long-term goal to live solely off of their passive income streams, which means they have complete freedom to spend their time doing whatever they want!

Investing your money is a way of having your money work for you. We all work hard for the money we earn, so it is important to utilize basic methods to ensure our money is working hard for us. For people who are in debt or simply living paycheck-to-paycheck, learning smart investing for beginners may help you get ahead and break that cycle. By committing to investing a certain percentage of your paycheck, even if it’s just 1%, you can begin to build your wealth and financial security. The most important thing is to get started.

Before we start investing we need to have a good understanding of how much money we have available to commit. Most of us don’t like creating a budget, but it is essential if you feel that you “don’t know where your money goes” each month. If this is you, take a little time to track your expenses for a month or two, it will pay off in the long term.

How Can I Start Investing?

Does your employer offer a retirement plan, like a 401(k)?

If so, smart investing for beginners starts here.

You can usually start by investing as little as 1% of your paycheck. In most cases, the employer typically offers a handful of investment options to choose from. Some employers also provide a “company match”, which means the company will match some of your contributions into your account, but you have to be contributing to get the match. Think of this as free money!

A typical matching arrangement is for an employer to provide a 50% match on the first 6% that you contribute, meaning if you contribute 6% the company will add another 3%. Effectively this is a way to get an increase in your pay, but you have to be contributing to get it. If this is available to you it is a very good place to start! Talk to your supervisor or HR department if you haven’t already.

Focus On Your Goals

Retirement Plans offer a pre-defined option to save for one very important goal.

But what about our other financial goals?

At Marygold & Co, we believe it is helpful to define our specific financial goals.

Defining our goals, and a timeline to achieve them brings clarity.

If you are saving up to buy a new car, it’s important to define when you want to buy it. If you say you want to buy a new car in three years, that helps you to understand whether you’re on track to achieve the goal. So rather than having one generic account where you put your savings, perhaps start by asking yourself what your financial goals are? Most of us have numerous goals, so the more specific we can be the more clarity we’ll have. Ultimately this helps us to stay on track. Some people may only have 2-3 financial goals, while others will have a dozen.

There is no right answer here, the important part is understanding specifically why you are saving.

Tips For Beginners

At Marygold & Co., we want to make it as easy as possible to invest money and build your wealth.

If you’re just a beginner and want to learn how to start smart investing for beginners, we’ve compiled a straightforward checklist that will help you start investing.

Do some basic research

You should do your research before you start investing to know what your options are.

Learn about the different types of investments, and pick out a few that appeal to you. Keep in mind social media is flooded with people bragging about the money they made trading options or “YOLOing” in one stock or cryptocurrency. Try to avoid the FOMO factor. Focus on being a long-term investor.

Open an account

Open an investing account.

Not long ago it was difficult to invest if you didn’t have a lot of money. But now there are numerous options to invest with companies that have low or no minimum balance thresholds.

Transfer money with each paycheck

Inertia is a powerful force, so use it to your advantage!

Decide how much money you’re able to commit towards investing. There’s no right number here- figure out what you’re able to contribute. The important thing is to get started.

Invest – Don’t speculate

Now that you’re transferring money, you need to make sure to actually make your investments.

Diversification is key. Know the difference between speculation (e.g. – the YOLO investors) and investment! We are never going to know more than the large Wall Street firms, so don’t try. Use products that give you the investment opportunity you want at a reasonable fee (typically called the expense ratio). Low-fee Exchange Traded Funds are usually a good place to start.

Think long-term

Over the past 100 years, the stock market has returned about 8% every year.

A prudent way to make money, especially in the stock market, is to employ the “set it and forget it” strategy. If you’re able to invest for multiple decades, that is a strategy that should help you to realize your financial goals. And don’t try to “time” the market. Large and sophisticated investment firms are not able to time the market, so we shouldn’t even try. One of the best ways to make money in the investing world is to be a long-term investor.

How Marygold & Co. Can Help with Investing

Smart investing for beginners begins with being able to track and budget.

Marygold & Co. is revolutionizing expense tracking and budgeting, thanks to this incredible feature called Money Pools.

Money Pools are organized savings pools that allow you to easily divert money into different pools for whatever you’d like to save for.

Additionally, you can easily track your expenses by linking your debit card to your Marygold & Co. account. Marygold & Co. has focused on creating an easy-to-use, helpful interface that makes budgeting and tracking your expenses and investments a piece of cake.

December 17, 2021/by Smartpoint

How to Protect Your Money

So many of us are focused on how we can make the maximum amount of money possible. While this is important, learning how to protect your money is equally as critical. There are many different threats and risks out there that you need to be aware of, such as fraud, identity theft, stolen bank cards, and hackers. Thankfully, there are a variety of measures you can take to help protect your money.

Potential Risks

Fraud: Fraud is a major risk that you need to be aware of. Fraud simply means somebody attempting to deceive you or someone else for either personal or financial gain. An example of this are the spam calls that all of us have been getting about your car’s extended warranty expiring. In this example, the scammer is attempting to deceive you into giving them your credit card or bank account information to then steal your money.
Identity Theft: Identity theft, although it is a form of fraud, is an extremely dangerous risk to your money. Identity theft is where somebody attempts to steal your identity, usually by obtaining your social security number and other important personal information. In some cases they even use digital synthetic identities that are so realistic most fraud detection services are fooled. They then use your identity to open up new credit cards or bank accounts, among other things. The risk of this is that, as the account is tied to your identity, any debt can potentially be your responsibility and severely impact your credit score.
Stolen Bank Cards: Most people, at least once in their life, have checked their bank accounts to see a bunch of charges they didn’t make. Usually, this happens through somebody illegally obtaining your debit or credit card, whether it’s through theft or you simply misplacing your wallet.
Hacking: Another common risk you need to be aware of when learning how to protect your money is a hacker gaining access to your bank accounts. This can happen either through hacking the bank directly (which is extremely difficult, as banks and other financial institutions have a ton of safeguards in place) or by hacking either your phone, app, or username and password.

Best Practices: How to Protect Your Money

Now that we’ve shared a few common risks that you should be aware of, we’d like to give you a few basic, simple best practices that will help you protect your money. You might already be aware of some of these, but they are all important when thinking about how to protect your money.

Check Your Accounts Often

One of the easiest things you can do to protect your money is to check your checking, savings, and credit card accounts daily. Although it might sound a little extreme, taking the 5 minutes to briefly check your accounts allows you to stay on top of any potentially fraudulent transactions.

Monitor your Credit

There are many sources available to monitor your credit and even get notified if your credit is being checked or a new account is being opened in your name.

Lock your credit file when you are not applying for new credit. This can be a simple way to protect your identity and restrict fraudsters from impersonating you even if they gained access to your personal data. In order to lock your credit file, you will need to contact each of the following three credit bureaus: Experian, Equifax, and TransUnion.

Do Research on Your Bank

One of the most important steps you can take in learning how to protect your money is to thoroughly research your current and/or future banks. You will want to make sure your bank is FDIC-insured, which protects your money up to $250,000 per account. Another crucial thing to research is whether or not your bank has good customer service. Lastly, you’ll want to learn about any potential missteps that your bank has had in the past, such as the Wells Fargo scandal a decade ago, where employees were fraudulently opening new accounts without customer awareness.

Don’t Share Your Bank Info With Anyone

This seems like a no-brainer, but it’s actually one of the most common ways to have your identity or money stolen. Unless you are calling your bank directly, under no circumstances should you share your bank account information with anybody, even if they seem legitimate.

Use Strong Passwords & Multi-factor Authentication (MFA)

Strong passwords and MFA can help prevent unauthorized access to your accounts. By having long, complex passwords that you change frequently, you reduce the risk of somebody or a computer program guessing your password. Multi-factor authentication is another way to keep your accounts safe. MFA uses 2+ checks to confirm your identity, such as entering a password and then inputting a numerical code texted to your phone number.

Be Sure You’re Using Secure Devices & Networks

You should only log in to your financial information from a secure, personal device and secure (password-protected) wifi network. It’s much easier for hackers to gain access to your data if you are using an unsecured, public device or wifi network. In a perfect world, you’d have a dedicated computer to access your finances, but this obviously is not realistic for most.

Protect Your Money w/ Marygold & Co.

Marygold & Co. is a new financial services app that’s dedicated to helping organize your financial life and reach your financial goals.

Not only is it revolutionizing budgeting and expense tracking through a new feature called Money Pools, but Marygold & Co. is extremely concerned with safety and security. That’s why we employ state-of-the-art technology like biometrics with facial authentication to determine if a government-issued identification is authentic and a selfie of a live person matches the picture on the ID. This is highly effective because fraudsters don’t like to have their real picture taken and faking a real face is not an easy task.

Other security measures like multifactor authentication and fingerprint credentials offer additional layers of protection once an account is opened.

You shouldn’t entrust your hard-earned money to just anybody, and Marygold & Co. will not only help protect your money but it gives you all the tools needed to push towards your financial goals.

November 13, 2021/by Smartpoint

Financial Tech, Mobile Banking Services

How to Avoid Identity Theft

You’ve worked hard for the things you have under your name – it’s more than a sinking feeling to find out that someone has stolen your belongings, finances, and identity. It can be a real pain to try and sort it all out once it happens. It’s best to try and take preventative measures so that you’re not a victim of identity theft. Here are some tips on how to avoid identity theft.

What is Identity Theft?

When someone deliberately uses another’s identification, that person is committing identity theft. This information might be a name, a driver’s license number, social security number, a fingerprint, a PIN, a passport, a health card identification, a bank account, an electronic signature, a credit card, or debit card number.

The High Cost of Identity Theft

If you fell victim to identity theft, you’re not alone. Last year, forty-nine million Americans experienced identity theft according to the 2021 Identity Fraud Study by Javelin Strategy & Research. The cost to consumers was $56 billion—for one year!

It’s not just about cleaning out your bank account. With your identity, the thief can make regular bank withdrawals, apply for credit cards, get a loan, buy a car, a house, or a plane ticket.

Writer Asaf Griener paints a frightening scenario. We won’t go into detail here but it is worth taking a look at.

How Technology Helps the Thief

In a NewScientist article “Cyber Crime Made Easy”, the author explains the level to which hackers are making adept use of malicious software. You can purchase an app for credit card theft.

Just as high-tech makes it easy to steal a car, points out CBC’s Sarah Bridge, so too, there is an alarming array of gadgets for identity theft. Ed Oswald describes some of these.

Skimmers

Identity thieves capture data on your debit cards by skimming. A data storage device could be attached to an ATM. They could also be attached to credit card readers. While the transaction is going through a digital copy of your credit card information is being made.

How Can You Combat Skimming?

Never let your credit or debit card out of your sight. Be cautious if a machine looks unusual. Use cards with an EMV chip if possible. Cover the pad when you enter your PIN and always monitor your transactions on your app or statements.

Laptops

Some identity thieves simply drive around looking for unsecured hotspots with their laptop. Then they log into your wireless network looking for vulnerabilities.

How Can You Combat the Laptop Thief?

Make sure your computer’s firewall is up and running. Never leave your home wireless network unsecured. Choose a Wi-Fi password that is hard to crack. Enable all security features on the router.

Your Old Gadgets

How we treat old, broken gadgets is important. Those old gadgets may not work but they contain data. Often before they are discarded, data is not wiped, identity thieves can gather personal information.

How to Combat Identity Theft from Old Gadgets

Be careful what you store there—like passwords and PINs. Keep sensitive information off these devices. Before you discard them, wipe clean every device before you trade it in or sell it. The New York Times offers this easy way to clean data from your device.

Internet Connection

If thieves have one of your credit card numbers, it is easy for them to conceal their actions. All it requires to change a system is a name, address, and a credit card. Once an address is changed, they can open credit cards and other fraudulent accounts in your name. And you probably won’t even realize it until months later!

How Can You Stop Internet Theft?

Use your credit cards wisely. If you lose one, shut it off immediately. Restart it when you know it is safe. Some banks offer a freeze/unfreeze option for your card. If you aren’t sure if you’ve lost it but want to keep your funds protected, this is a great option! Then you don’t have to worry about cancelling your card and waiting for the bank to reissue your new one.

Lost, Stolen, and Compromised Cards

Identity theft is far from rare. Fraud is a global problem that continues to grow. The Insurance Information Institute claims that in 2020, losses from identity theft cases topped $712.4 billion dollars. Which is a 42 percent increase from 2019. In 2020, the second highest reported identity fraud came from credit cards and opening new accounts. By 2021, losses are forecasted to increase to $721.3 billion dollars. It continues to climb annually.

Common Mistakes of Online Banking

We’re lulled into a sense of security because online banking seems so private and safe. Our naiveté blunders can make us easy victims of fraud and identity theft.

Never assume everything is okay.

Check credit card activity and your bank accounts often. Monitor the activity on your accounts. Inform your financial institution if there are any suspicious transactions immediately.

Don’t use predictable and/or unchanging passwords.

I know. It’s easier to keep a password forever. It’s tempting to choose one that makes sense and is easy to recall. Don’t be one of those people who use the same password for several cards!

Make it hard for thieves. Change your passwords often. One banking institution recommends changing your password after every transaction!

Write down new passwords and store them in a safe place—not your smartphone or your computer.

Guard your smartphone at all times.

Sadly, our lives are stored in our smartphones. Over fifty percent are used for online banking. How can you cut the odds of theft? Use only official banking apps.

Don’t decline security features.

Without security alerts to your phone or email, identity thieves can use your information undetected 75% longer. Look for free apps. Some banks even provide information when the account falls below a specific limit.

Don’t avoid online banking.

Your financial institution spends millions bolstering online security and keeping firewalls strong. It would be a shame if you avoided the convenience of online banking simply because it might be risky.

Customized security is tailored to your needs and desires. New features are coming out as technology improves them.

Why Choose Marygold & Co.?

Marygold & Company has over two decades of experience in financial services. Recently launched, the Marygold & Co. Mastercard Debit Card and mobile app gives customers safe FDIC-insured accounts with a custom security dashboard that allows users to take more control of their finances.

Marygold & Co. has created a new card and app where you can control the use of your card with just a toggle. With the Marygold & Co. app, you can even control where your card is used.

With Marygold & Co’s user-friendly, customized security, you can freeze and unfreeze your account or type of transaction like international with the touch of your mobile phone..

We all have those heart-stopping moments when our card goes missing. Whether it was lost, stolen, or misplaced, canceling is time-consuming and inconvenient. You have to contact businesses to stop recurring payments tied to that card. You have to wait to receive a new one.

With Marygold & Co.’s customized security, you need only use your secure app to freeze your card. If it turns up, you merely unfreeze it!

September 2, 2021/by Smartpoint

Mobile Banking Services

How to Achieve Your Financial Goals

Being financially secure is more prevalent than ever, but it still remains a challenge to many people.

Let’s discuss how to achieve your financial goals – and actually stick to it this time.

After a long and arduous 2020, more and more citizens have set their sights on being financially stable. In fact, research shows that almost 50 percent of Americans have a financially related New Year’s resolution.

Unfortunately, as reported by U.S. News & World Report, roughly 80 percent of people fail their New Year’s resolution by the second week of February.

If achieving a financial goal was a resolution for you, here are some things to help you avoid becoming part of that 80 percent.

Setting A Financial Goal

Finances are different for everyone. Perhaps you’ve set a financial goal without fully realizing it. Nerdwallet defines financial goals as “personal, big-picture objectives you set for how you’ll save and spend your money.” Some examples include:

Purchasing a bike
Buying a home
Paying off debt
Starting a business
Saving for retirement

No matter how grand the scale of your goal is, there are certain things you should be doing in order to make it a reality.

Basic Steps to Achieve Your Financial Goals

Becoming financially secure or independent means many things to many different people. Money is different for everyone, but there are basic rules that everyone should follow. These include:

Creating and sticking to a budget
Building an emergency fund
Managing credit score
Money organization
Savvy shopping
Knowing where your money goes

Creating a Budget

Budgeting is a word that everyone knows, but not everyone is able to accomplish. According to Investopedia, a budget is an estimation of revenue and expenses over a period of time.

Creating a budget is the first step in achieving any financial goal.

In order to set a budget, you must first determine your income. This is your net, take-home pay each month. Once you’ve calculated that, you need to differentiate your expenses into three categories: needs, wants, and savings.

Comb through at least a year’s worth of expenses to have the most accurate expense chart. Begin by totaling up all of your necessary expenses. This includes rent, car payments, insurance, groceries, etc. Anything you need to live will go in this category.

From there, see how much money you have left over for wants and savings. A portion of this should go into a savings account, emergency fund, and/or investments. But keep in mind you should have some money set aside for yourself to accommodate your wants. This doesn’t mean spending frivolously, but very few people will stick to a budget that doesn’t allow them to have any fun.

Sticking to a Budget

Now that you have created your budget, you need to stick to it. If you budgeted $400 for wants, you have $400 to spend on wants. If it is Friday night and your friends are going to the movies but you only have $20 left in this category, you need to have the willpower to say no. The most important step to achieving your financial goal is not spending above your means. That is why sticking to your budget is so crucial.

Building an Emergency Fund

It is incredibly important to have an emergency fund for whatever life may throw your way. An emergency fund, which differs from a savings account, is an account where the money is saved for major, unexpected expenses. Financial experts have stated that an emergency fund should hold at least enough money to cover three to six months of living expenses.

As we’ve all noticed, especially in the last year, life challenges can come at you unexpectedly. Pew Research found in September that over 15 percent of Americans had lost their job over the previous six months.

Many people have not been able to achieve their financial goals in the past because of unforeseen circumstances or expenses.

With an emergency fund, you can stay on top of these unexpected costs rather than making up for them later.

This will help keep you on the right track towards reaching your financial goals.

Setting aside money for an emergency fund should factor into your budget as to how much you will be saving and spending. Once you have saved enough money to cover at least six months’ worth of living expenses, that money can be budgeted elsewhere.

Managing Your Credit Score

A credit score is a number between 300-850, the highest being the best, based on your credit history. You can check this number by ordering your credit report from Equifax, Experian, or TransUnion. Everyone is entitled to one free report per year.

Managing and maintaining your credit score is a crucial step in accomplishing your financial goals. A good credit score can help you in a litany of ways, most importantly: qualifying for loans or mortgages with more favorable interest rates.

To strengthen your credit score you must first make sure you pay all your bills on time. Generally speaking, a credit card, used wisely, is a great way to build your credit as well.

Attaining a good credit score is an important factor in achieving your financial goals. You’ll spend less money on interest rates, therefore, your loans will be paid off quicker.

Keeping Organized

Staying organized is key to becoming financially secure. This means keeping a record of your bank and credit card statements, bills, and other expenses.

You should also organize what you’re saving for. With a savings account and an emergency fund, it can sometimes be confusing to keep track of all your money if they flow into the same account. Staying organized is even trickier if you’ve set multiple financial goals, like paying for a trip, saving for a home, and budgeting for new skis.

Trying out programs like Marygold & Co.’s Money Pools is a great way to stay organized and stick with your budget. Separating your goals into Money Pools allows you to visually see how much progress is being made towards each one. Programs like these will keep track of each account while also earning interest on every one of them.

Shopping Savvy

Though it seems like a no-brainer, many people fail to consider their spending habits when trying to attain a financial goal. When making a budget, sometimes ‘necessary’ expenses may not be exactly that.

Every expense adds up.

Consider a trip to the grocery store – are you:

Making a list and sticking to it?
Using coupons?
Buying the cheaper options?
Comparing prices?

Every time you spend money, how much you’re spending must be taken into account. You can lower your ‘necessary’ spending simply by being fiscally responsible. Did you really need that pack of skittles sitting in the check-out line?

Knowing Where Your Money Goes

Everyone has noticed throughout their lives that sometimes, money seems to magnificently disappear. Though it can feel like that, this is simply not the case. If you are on top of your finances, you’ll know where every penny goes.

A cup of “joe” every day doesn’t feel like it would cost that much; research has found that some people spend up to 1,000 dollars on coffee and 2,000 dollars a year on lunch. Seeing that number, many people would reconsider their drive-through coffee-drinking habits. Coffee is an overused example but you get the point.

When learning about how to achieve your financial goals, it’s vital to know where your money is being spent. Go over your bank statements and account for every single dollar spent to find out how you are spending your money and where you can cut back.

July 5, 2021/by Smartpoint

Timothy Rooney: President of Advisory Services

How to Keep Money

“How did you go bankrupt? Bill asked. “Two ways”, Mike said. “Gradually and then suddenly.”
– E. Hemingway, The Sun Also Rises (1926)

Once we make some money, how do we keep it?

There are many articles written about how to make money, some are shady and some are legit. But there are few articles written about how to keep money once it’s made.

Perhaps because, as a general rule, we spend a lot of time thinking about making money, and very little time thinking about not losing money.

So here are a few thoughts on how to keep money once you make money…

Have a Plan

Whether you are just starting out or have already built a “nest egg”, the punchline is straightforward: Live within your means.

Easy to say, hard to do.

As your career improves and your income increases, it is tempting to raise your level of personal spending.

I have friends in New York City who are very successful with seven-figure incomes, but they spend every penny.

Good times are not guaranteed to continue forever.

Spend time thinking about your short and long-term goals, and set aside money for each of these goals.

As your income increases over time, make a conscious effort to use the additional money to meet the goals you have established. And, until you do, try to hold off on upgrading your closet or trading in the car for a newer model.

It may sound trite, but you should create a budget.

Always know how you are spending your money. If you know where your money is going it makes it easier to make necessary trade-offs. It also makes it easier to see that your short and long-term savings goals are probably more important to you than some of the other expenditures.

Invest, Don’t Speculate

Too much of social media is caught up in get-rich-quick schemes.

Most of them are just that, schemes.

Yes, that story on IG or YouTube about that person who made a huge amount of money in a week or two is exciting. And it might even be true. But there is nothing about that that involves investing.

That is pure speculation.

Investing is unemotional.

It is about having a plan and having the conviction to execute the plan. Emotion and greed cloud judgment, so don’t be emotional.

Diversify.

Any solid investment plan includes diversification. With so much information being thrown at us every day it’s easy to be lured into making one or two big bets. The stories sound so convincing!

Putting the majority of our money into one or two big bets is not investing, it’s speculation. As long as we know the difference we can make the right decision. Unless you are a professional investor with many years of experience, diversification should be an important part of your plan. Once you have a plan, have the patience to stick with it. Get rich quick schemes almost always end badly.

Luck vs. Experience & Skill

2020 was a very unusual year.

The obvious tech stocks that were trending throughout the year did extremely well after the U.S. stock market bottomed on March 23rd.

We’ve seen too many people confuse investing in these obvious trends with market skill or investing expertise.

The markets are not likely to repeat 2020.

So, in very simple terms, know how to keep money by living within your means, having a plan that includes a budget and your short-term and long-term savings goals, and investing in those goals utilizing a diversified portfolio appropriate to the timeline of your goals.

April 24, 2021/by Smartpoint

Timothy Rooney: President of Advisory Services

Investing vs Speculating

“We engage in the folly of short-term speculation and eschew the wisdom of long-term investing. We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity.”
– John C. Bogle, Enough: True Measures of Money, Business and Life

The idea of investing to achieve our goals CAN BE very straightforward.

Focus on the long-term, diversify, and do not use products with high fee structures.

The world of investing does not need to be complex and stressful. However, there are some investment firms that seem to do a pretty good job of making it seem so complex that most of us could not figure it out on our own, and this is just simply not true.

Long-term investing can and should be easy to understand.

Trading Options

I’ve had several people talk to me about trading options recently.

Perhaps because of recent congressional hearings or perhaps because now even the more conservative retail investment firms are running TV commercials talking about trading “iron condors”.

My opinion is, for the large majority of retail investors, options involve more risk than upside and should be avoided.

Ask yourself, “Who is on the other side of that trade? For me to win my bet, who has to lose?”

Then perhaps ask if you feel you have better information than the large Wall Street firms?

“Wall Street investment banks are like Las Vegas casinos: They set the odds. The customer who plays zero-sum games against them may win from time to time but never systematically, and never so spectacularly that he bankrupts the casino.”
– Michael Lewis, The Big Short: Inside The Doomsday Machine

It is important to understand the difference between investing vs speculating.

Do you understand the investment you are considering, and why it is going higher or lower?

Do you have experience in the industry and know who is taking the other side?

We have numerous media outlets that now focus on short-term trading, which is fine, as long as we understand that this is speculation, not investing.

Investing should not be stressful!

We should feel good about putting our money to work for us. And if we have a long-term approach it doesn’t take a lot of work on our part. As long as we understand our goals and match our investment strategy to meet those goals, it becomes a straightforward endeavor.

And stay away from get-rich-quick schemes and short-term speculation that is difficult to understand. Knowing the difference between investing vs speculating is empowering.

In the profound words of John C. Bogle…

“The obvious conclusion: investors win; speculators lose.”
– John C. Bogle, Enough: True Measures of Money, Business and Life

April 11, 2021/by Smartpoint

Financial Tech

How to Keep More of Your Paycheck

Budgeting your paycheck is something everyone should do, but it doesn’t mean everybody does. Sometimes, the hardest thing about saving is starting. If you find yourself spending beyond your paycheck, stretching it way too thin, or not contributing to your savings account – it might be time to create a plan to begin saving.

30% of Americans have a financial plan that includes savings.
69% of Americans have less than $1,000 in a savings account.
$3,500 is the median amount of savings for American households.

There are several things you can do to save more money from your paycheck each month. By developing a simple and realistic strategy that works for you, you’ll be closer to reaching your financial goals.

Here are some tips on how to keep more of your paycheck:

Budget Your Money

Start combing through your monthly spending so you can see where you can cut frivolous spending habits. Some helpful tools would be to use spreadsheets or track multiple savings goals on the Marygold & Co. mobile app. First, prioritize true essentials like rent, transportation, bills, food, and debt. Once you figure out how much you need for bills and other essential expenses, you will need to create a savings goal. Your second priority should be saving or investing in contribution accounts. Then if your budget allows for it, you can use the rest of the money on ‘emotional’ spending.

Budgeting will help you spend recreational money better since you’re more likely to be mindful about what you choose to spend it on. Placing this limit on yourself is a form of financial discipline and will help get you the most out of your paycheck.

50/30/20 Rule

According to the 50/30/20 rule, experts recommend reserving 50% of your budget for essentials such as rent and groceries, 30% for discretionary spending, and a minimum of 20% to be put into your savings. However, this system simply does not work for everyone. Your finances are personal, so you need to create a budget that works best for you.

If you have a high income, it’d be wise to spend less on discretionary items and save a larger percentage of your income. If you find yourself in the opposite situation, saving 20% of your paycheck might be stretching it too thin or currently impossible. However, don’t beat yourself up if you can’t put away 20% each month. Just remember, saving something is always better than saving nothing.

The most important question to ask yourself is, what are you saving for? Do you want to buy a house? Do you want to build an emergency fund? Are you trying to pay off debt? If you have an endpoint to look forward to, you will be encouraged and motivated to accomplish your savings goal.

Pay Yourself First Method

Pay yourself first is a budgeting technique that is as simple as the title states. Take your net monthly income total, subtract your true essentials and your savings goals and the remainder of the paycheck is what you have left for discretionary spending.

For example, say your net monthly income is $4,000. Your bills like rent, utilities, food, phone bill, medical, car insurance, car payment, student loans, and credit card bill equate to $1,800. You want to save an average of $900 a month for your vacation fund, emergency fund, debt, and a new TV. Subtract the $1,800 + $900 from your $4,000 net income. You have $1,300 left for morning coffee, happy hour, and other frivolous expenses. You can set up a direct deposit with your employer so that your wages go directly into a savings account. This ensures that money is put away every payday, first.

Start a Money Pool and Automated Savings

To ensure you are on track with your financial goals, you can set up a Money Pool, like the one we offer at Marygold & Co for each of your goals. These automated and FDIC-insured savings accounts allow you to set a specific goal amount and the frequency you want the money transferred into your savings. Customers are also able to instantly track their savings progress anytime, anywhere from their smartphones and prioritize their goals.

This saving option can be a great way to build an emergency savings fund or track progress towards a specific goal, like a new mountain bike. Separating each of your savings goals from your spending money will give you the financial discipline needed to help you save more.

Save More, Spend Less

This one is obvious. However, habits do get expensive. The daily coffee runs, $15 lunches, and after-work drinks can add up very fast. If you want to keep more of your paycheck, it’s best to find areas in your life where you can be more frugal. Here are some examples:

Try preparing food ahead of time, reducing the amount you spend on takeout.
Grocery shop with a list, and don’t stray from it. With a list, it’s easy to know exactly what you need instead of aimlessly wandering around the grocery store and picking up unnecessary purchases. Shopping with a list can also help you save money by helping you waste less food.
Stop emotional and impulsive shopping, especially online. If you have your credit card data saved online, you will be more tempted to overspend. Removing this shortcut can lessen the temptation to make an impulse purchase.
Cancel unnecessary subscriptions or services. Go through your monthly statement and see if there is anything you can remove from your monthly bill. If there is a streaming service you don’t use or an insurance service you don’t need, consider canceling it.
Financial experts suggest using your debit card more often than a credit card. It’s wiser to spend the money you actually have if it’s really necessary. Spending with a debit card will keep you accountable for your purchases. It will also prevent you from getting a credit card bill at the end of the month that you can’t pay off – leaving you penalties and debt.

Turn Up Your Contribution Rate

An important step to reducing taxes and building your retirement fund is to contribute to a tax-advantaged retirement plan. Find out if your employer offers a 401(k) plan that you can contribute to.

First things first, you must find out what your annual limits on contributions are. If you’re not already contributing the maximum allowed, consider increasing your contribution rate. You can contribute to your 401(k) tax-deferred, which means you pay no income tax until you withdraw distributions.

Don’t wait for your next paycheck to start saving. You can’t get ahead if you don’t start now.

Simplifying your saving techniques by starting an automated Money Pool with Marygold & Co. will help you organize and create consistency with your spending and savings – while allowing you to keep track of your financial goals.

Don’t let impulsive spending and a lack of savings push your paycheck to its brink. With a proper plan and good discipline, you’ll be saving successfully in no time.

March 13, 2021/by Smartpoint

Financial Tech

NFC Payment

Have you ever seen that icon on your credit card with frequency wave-like lines, similar to the WiFi icon, but sideways? That means your card is enabled for NFC payment. But what exactly does that mean?

What is NFC?

Near Field Communication is a feature available on most modern phones. As the name suggests, NFC is a method of wireless data transfer. It detects and allows technology in the vicinity to share data without an internet connection.

How Does NFC Work?

NFC may power key cards or fobs, pet microchips, and even public transit cards.

NFC is more simple to use. It is a successor to radio frequency identification. The NFC chip in your card is part of a wireless link. It is activated by another chip. Once that happens, small bits of data flow between the two devices. The transfer occurs when your card is held an inch or less from the other chip.

Advantages of NFC

There’s a reason we’re seeing this technology more and more in our everyday lives.

As FIS.com notes, there are four main advantages of NFC payment.

NFC is easy

Using NFC is simple.

You don’t have to recall a passcode since it doesn’t require a pin. With near field communications, all you need to make a payment is to hold up your phone, your NFC-equipped card, key fob, or bracelet near the POS terminal and you’re done.

When compared to EMV cards that require entering the card, waiting, and typing in your pin code, NFC cards are a one-step, quick process.

NFC is fast

As consumers, we are attracted to businesses where we don’t have to wait.

Using NFC, your transaction takes a fraction of the time it would take to pay cash or with a traditional credit card. This is good news for both customers and businesses.

Transactions are faster with near-field communication. Checkout lines are shorter, fewer staff members are required and customers move through purchase and payment rapidly.

There’s nothing to remember

NFC works automatically. No pairing code is needed.

With NFC, the only thing you need to carry is your smartphone, card, or NFC-enabled item.

NFC is energy efficient

The chips in NFC require only minimal amounts of energy to link up.

These low or passive energy chips are much more power-efficient than other wireless communication.

NFC is physically safer

As we deal with COVID-19 and the spread of other viruses, people are more sensitive than ever when it comes to touching things.

Near-field communication is a safe, contactless payment option.

You simply hold the NFC chip near the terminal and the transaction is complete. Having a means of payment that does not involve human touch has been reassuring during these difficult times.

NFC is more secure

Many people fear that something as fast and easy as NFC isn’t as secure as requiring a PIN or a signature at payment. If customers don’t trust the payment option, they won’t use it.

NFC signals are encrypted and transmitted only in close proximity. Meaning, the signal can’t be hacked by someone who is even a few feet away.

Security protection built into smartphones makes NFC payments even more secure if the transaction is made not with a card but with your phone. Thus, using your phone as your NFC chip, there is an additional layer of security.

Issuers also place lower limits on NFC transactions (example $100 max) to protect against lost or stolen cards and fraudulent transaction attempts. Some even allow you to freeze and unfreeze the NFC contactless payment option for additional security.

NFC increases customer satisfaction

Because transactions are faster, checkout lines are shorter. The result is increased customer satisfaction with the business. Ease of transaction makes customers happy. They will return to buy at this business. When they are assured NFC is a very secure way to pay it adds to customer satisfaction.

NFC encourages consumer spending

Since customers can check out faster because of tap and pay, those who might make a purchase are encouraged to do so. If there are long lineups at the movies, the grocery store, a restaurant, a gas station, or the bookstore, potential buyers will abandon their goods and leave.

NFC payment translates to a pleasant business experience. Happier customers and more efficient operations are what make buyers purchase and return to buy again. Be careful not to let your spending get out of control, though!

NFC is easy to implement

More businesses are starting to implement near-field communication as well as NFC-enabled payment terminals. Most new payment equipment now contains near-field communication technology. Setup is instantaneous.

Disadvantages of NFC

Livewire writer Priya Viswanathan points out that although there are many advantages to NFC, there is a downside.

For some businesses, implementing NFC technology may be just too expensive. Large retailers can afford the hardware and software upgrades. Some stores and shops may take a longer time to acquire new devices.

As with any change, there is a level of mistrust until consumers are assured NFC is safe and easy.

How do NFC and EMV Differ?

EMV means Europay, Mastercard, and Visa (the 1994 founders) and commonly refers to the smart chip in debit and credit cards. EMV uses a chip embedded in a card instead of a magnetic strip. Chances are you’ve probably seen it being implemented on newer cards. The EMV chip is much more secure than the magnetic strip.

NFC chip stands for near field communication technology and is typically embedded inside debit and credit cards, smartphones, or smartwatches. This chip allows data to be read by a POS terminal without inserting your card creating a contactless payment. You simply hold the NFC enabled item near the terminal and boom, payment accepted. No pin, no swipe.

The NFC “card” might not be a card at all. It could also be a key fob, a bracelet, a phone, a watch, or any other object a chip can be inserted in.

Many businesses have machines that can accept both EMV or NFC. However, some transaction terminals may take only one payment option.

Examples of NFC Payments

Welcome to the world of touchless technology. Wherever there is a POS terminal that accepts NFC transactions, you can tap and pay.

This might include a restaurant, a coffee shop, a taxi or subway ride, buying a concert ticket, or getting refreshments for that concert.

You can pay a toll, purchase a subway ticket, pay for coffee, or get snacks from a vending machine all with a contactless tap.

Why Choose Marygold & Co.?

Marygold & Co. provides you with NFC Mastercard* debit cards to enable contactless payment. Additionally, our app enables contactless payments from your Android phone, and clients have access to NFC-enabled key fobs and silicone bracelets. Support for Apple Pay, Google Pay, and Samsung Pay wallets are also coming in late Spring of 2021.

We have gone to great lengths to ensure customer security is the priority for contactless payment cards.

Lower limits are set on purchases and
New technology also allows you to freeze your NFC chip. You can unfreeze it at any time.
You can also lower or raise the purchase maximums whenever you wish for the NFC-equipped card, bracelet, key fob, watch, or smartphone.

As part of our customer service plan, Marygold & Co. cards have both NFC and EMV capabilities.

February 27, 2021/by Smartpoint

Mobile Banking Services

How to Control Spending Habits

Spending vs Saving Habits

Americans are spending on average almost 80% of what they earn. This leaves little for an emergency fund, retirement, or savings for big-ticket items like a house, a car, or an appliance.

The situation is not improving. The Bureau of Labor Statistics noted that while earnings decreased by 1.5% this past year, costs of things like housing, transportation, and food increased by almost 5%.

This means Americans have even more trouble saving for emergencies and retirement. Only 40% of Americans surveyed said they could save a thousand dollars for emergencies.

Americans aren’t saving nearly enough for retirement. Northwestern Mutual’s study revealed that 15% of Americans have no retirement savings at all. In fact, 64% of Americans can’t afford to retire.

Understanding how to control spending habits is important. We can start by looking at why we overspend.

Why Do We Overspend?

Most people have no idea what their spending habits are. They are clueless as to where their money is going each month and are shocked when their bank account dips.

Many are impulsive shoppers. They see it. They want it. They buy it.

Exploring sale displays is bad news. Often, people get caught up in the excitement of a discounted item and buy things they don’t need.

Remember: A bargain isn’t a bargain if you don’t need it.

Unfortunately, people get into “keeping up with the Joneses.” If our friends have something, we need it, too. That’s how companies convince us to buy the latest version or the “new improved” model.

Spending can be an addiction just like gambling or substance abuse. To avoid spending you need to know why you’re doing it so you can control it in the future.

Tips on How to Control Spending Habits

Financial advisor Jenny Keefe offers several tips.

Take stock of how you are spending what you earn

Use a software program, an app like Marygold & Co., or pencil and paper. Write down everything—no matter how small—you spend. Calculate how you are spending your money for a month.

Set up a budget

You can also create a simple budget on paper. Plan for savings as part of your budget. That’s where a program like Marygold & Co. can help you organize your financial life.

Stop (or at least minimize) spending

This may seem extreme. However, you cannot save money for emergencies or retirement if you have nothing left in your bank account at the end of the month. Pledge not to spend on anything except food, shelter, and essential transportation until you get your spending under control. When approached with a purchasing decision, ask yourself, do I need this or do I want this?

Take a breath before you spend

Jenny Keefe suggests you sleep on the decision to make any large purchase. The choice to buy a nonessential item may look very different if you give yourself time to think it over.

Understand that there is no such thing as “a little debt”

Amassing a little debt on your credit cards may seem harmless. But these small debts are not part of your budget. Thus, they are overspending. Even seemingly small debts set you up for financial disaster. They can start a debt crisis that impacts your home, your family relationships, and your mental health. Not knowing how to control your spending habits may result in a great deal of debt that’s hard to get out of.

Set reasonable priorities

So, here’s the situation: You’ve figured out you are spending more than you earn. The next step is to set priorities. Can you economize on food? Maybe you need to cut out entertainment or eating out. That five-dollar Starbucks coffee was nice but you can’t afford it. Consider taking public transit. Try biking to work and to run errands. When you have looked at your expenditures, decide what must go and where you can cut corners.

Eliminate items you are not using

Think about things like movie club memberships, Sirius Radio, TV cable options, Netflix movies, magazine subscriptions, gym memberships, country club dues, and packaged bank accounts. Are you getting value from them? Can you afford them? Are there cheaper alternatives?

Shop frugally

In this day of instant foods, you may be spending significant amounts for convenience. Your food budget may be more than you can afford. Check out Jenny Keefe’s smart food shopping tips.

If you can’t resist, don’t go shopping

There are ways around this. Try online shopping with a list. Don’t buy anything that isn’t on your list. Avoid shopping for no purpose. That leads to impulse buying.

Try Freecycle if you are replacing something

If you need something, check out free resources like Freecycle. Look into stores like Value Village, Goodwill, and consignment stores. Check out garage sales and online opportunities, through social media and other channels.

Leave your credit cards at home

According to a study by Thomas, Desai, and Seenivasan in the Journal of Consumer Research how you pay can affect impulse purchases.

A study by Dun & Bradstreet found that people spend up to 18% more when they use credit cards than they do when they use cash.

Avoid overspending by using cash or a debit card to make all transactions. This gives you a greater awareness of how much you are actually spending. If you carry only as much cash as you can afford to spend, it curbs overspending.

Know your triggers and how to avoid them

Our tendency to overspend may be triggered by emotions. Identifying these triggers and removing them alleviates the temptation and the opportunity to overspend.

Some people spend more at certain times of the day. Avoid shopping during those times. There may also be certain environments that encourage spending, like sales, favorite stores, craft fairs, flea markets, or holidays. Detour around these environments if they are triggers.

When you are feeling sad, happy, or depressed are you more prone to impulse shopping? Don’t go to the mall if those moods make you shop. Go for a walk or take a hike instead.

How Technology Can Help

Mobile banking apps like that available to customers of Marygold & Co. can help curb spending. With innovative features like Money Pool Savings Accounts, customized notifications, and mobile push notifications to ensure your goals and relevant banking information are always top of mind.

Technology like that in mobile banking apps helps users keep track of their spending and their savings. This will go a long way to curbing spur-of-the-moment purchases.

Mobile apps from major financial institutions like Marygold & Co. provide an easy way to view account information without sharing personal information. Mobile apps will help you learn how to control your spending habits by tracking your spending more.

The banking app provides up-to-the-minute account information. This allows clients to assess their ability to make or to refrain from making spontaneous purchases.

February 12, 2021/by Smartpoint

Financial Tech

Innovative Mobile Banking Features

Mobile banking and financial services apps have changed the way people manage their money. In today’s digital world, cash is no longer king! Convenience is the name of the game.That is especially true when it comes to the way people are managing their finances. Self-service banking and digital banking through innovative mobile banking features are playing a central role in today’s economy.

Services like Paypal, Zelle, and Venmo have made electronically transferring funds, dare it be said, convenient. It is not uncommon to hear someone say, “just Venmo me,” for transactions among other peers, which is reminiscent of the earlier days of people saying, “Just Google it” for information.

More Than Managing Money – Innovation

Now if convenience is the newly-crowned king, its queen is innovation. For decades banks have been flying under the radar tied to their legacy systems and technology, unable and unwilling to provide better technology tools. With evolving customer demands and open API technology, that is no longer true. Fintech companies are introducing more sophisticated and convenient ways to manage your money without the need to ever step into a branch.

Current world factors have made matters more urgent for the banking industry, emphasizing the need for complete mobile management of accounts. Banks need to consider what is best for both customers and employees. A step in the right direction is digital transformation.

Financial Technology (Fintech) is Here to Stay

Fintech companies are making their moves and competing directly with banks and credit unions with staggering customer growth. Millions of people have opened accounts with Fintech providers to manage their everyday banking needs unburdened by the bank branch mentality. Fintechs are partnering with forward-thinking financial institutions and technology partners to bring innovative ideas and cutting edge technology that people want with none of the old-school banker hassles. With that, more branches are closing every day and smartphone owners are using mobile financial apps more often.

Here’s a summary of Marygold & Co.’s mobile banking features that are being implemented into the app, to keep up with changing customer profiles:

Security Features

There is nothing better than knowing your money is safe. Financial institutions must take into account and include mobile malware, app assurance, data protection, and identity management. Companies must consider how you can feel safe using online banking and financial services apps.

Giving customers complete control of their account is a good start. Having the ability to toggle your card on and off is a helpful feature. In the event you misplaced it you have the option to prevent anyone from using it with the tap of a finger.

Having that option saves you time from having to call the company and request a new one. On top of that, you would have to update your other recurring expenses due to the new numbers tied to the one you might have lost.

Another helpful security feature is limiting your card use to a specific location. Apps now are offering the ability to customize where the card is authorized for use. It goes the opposite way as well, you can restrict it from being used internationally. The customization also takes place online, you can enable/disable online transactions. With features like these, the risk of fraudulent charges is greatly decreased.

Money (Saving) Pools

Successful saving requires more than lumping money together to plan for a multitude of needs. How do you know your progress in saving towards things like a house down payment, a vacation, or a new bike if you are simply putting $X away each month?. Do you have and maintain a proper emergency fund on top of all that? Most of us have complex needs that traditional bank accounts can no longer support. Both short term and long term goals require more sophisticated ways of saving money while tracking each goal independently.

Money Pools enable you to set up independent savings or investment accounts for specific goals, timeframes, and amounts. Establish a funding rule like $200 per month for 10 months for your summer vacation Money Pool and prioritize each goal should you need to make any change.

There are now accounts that incorporate an investment structure and allow you to align the timing of your goals with when you need the returns. Being able to establish a higher return potential is crucial to reaching both long term and short term goals.

Payment Devices

From mobile phones to wristbands to key fobs and jewelry, there is now a vast range of contactless payment devices that can be used in place of traditional plastic cards. Most merchants in the US now accept contactless payments and consumers are enjoying it. As simple as tap and pay, advances in tech enable payment to be quick, simple, and secure. This is enhancing the customer experience and saves time in the process.

No more fumbling for your cards or cash. Brand new NFC enabled phones and wearables can connect directly to your account. What is NFC you say? It stands for Near Field Communication, it uses something called RFID that allows it to identify things through radio waves. It has been used for decades for things like scanning grocery items and luggage at airports. Going back to the king, which in this case is convenience, makes things quicker and effortless.

Payroll is Easy to Receive

Direct deposit makes getting paid that much sweeter. Being able to receive the money into your account up to 2 days early with some fintech solutions seems like a no-brainer. Here are some pros:

It’s fast and easy to set up
Your money is immediately accessible, it eliminates the risk of stolen checks and forgeries, and helps protect you from identity theft
Most employers support it

On top of all that, it is free! Most banks and credit unions do not charge you to sign up for direct deposit. In fact, they may waive your monthly checking account fee if you have direct deposit.

Send and Receive Money Seamlessly

Ever keep tabs on what people owe you or what you owe others? Don’t necessarily have the cash to pay back at the exact moment? With fewer people carrying cash, payback can be a real…well, you know the rest. Thankfully, technological innovations are making it easy to send money to friends, family, landlords, and more.

However, figuring out what type of payment channel the recipient accepts if you have funds in that account and what their username is can be a royal pain! New technology provides safer ways to send money directly from your primary banking account(s) offering the recipient the ability to choose their preferred option of receiving or depositing the money.

Marygold & Co.

Enter: Marygold & Co. Now money doesn’t grow on trees, but Marygold & Co’s banking and financial services app features will make your money “flower.” That is to say that by using Marygold & Co, you’ll get the most out of your money. The Marygold & Co app gives you access to your money from the tips of your fingers. It is convenient and innovative, giving you access to many of the new features mobile banking has brought into the finance world.

As a recap, here are some of the benefits you can receive:

FDIC-insured accounts
Contactless Mastercard debit card, wearables & mobile wallets
Nationwide no-fee ATMs
Interest-earning debit & savings account
Pay anyone to their mobile phone or email
Get paid early
Customized security

October 7, 2020/1 Comment/by Smartpoint