This time of year is perfect for us to revisit the goals we set or resolutions we made and see how we are doing. This is especially important when it comes to our financial goals because investing in ourselves now can reduce stress, improve lifestyle and get us on the path to the Empire we desire. The key is progress not perfection.

Make sure your finances are on track for 2023 with these strategies:

Check your 2022 spending habits: Take inventory of what you spent and where you spent it. Are there any obvious red flags? Understanding your spending habits is critical to getting on track for the new year. A lot of us have very different spending habits these days since we are working from home, but does that mean you are still aligned with your spending plan?

Create your budget and savings goals: After checking your spending habits and calculating your essential expenses, allocate a set amount to savings. A great way to do this is by following the 50/20/30 rule. 50% of your income goes to fixed expenses, such as housing and living expenses. 20% goes to financial priorities, such as savings, debt and retirement. The other 30% is everything else!

Savings: Savings is a healthy habit! Divvy up that 20% of savings into your savings account, emergency fund and 401(k). Automation is the best way to ensure that you keep up with savings. Out of sight, out of mind. And if you cannot contribute 20% - any amount is better than nothing.

Reduce your debt: Now is the perfect time to reel in any unnecessary spending and course correct. Always pay more than the minimums and pay off those higher interest cards first (especially in this high interest environment)!

Organize and discard: Go through your documents and separate what you need from what you can discard. Tax time is around the corner so start a folder with all the pertinent docs needed for your appointment. Throw away any old bills, bank and credit card statements, but don’t forget to shred them. Identity theft is REAL! The process of cleaning up creates an organized space and clear mind.

Another great way to stay on track is by setting realistic goals we can aspire to reach over the course of the year. If we make our goals too broad, we will have trouble following through. Take those big, audacious goals and break them down into digestible bites. For instance, if you want to save more money, give yourself a number on a monthly basis, rather than just saying “I want to save more this year”.

And remember whatever goal you set out to achieve, the one common denominator is the focus on forming a habit. Healthy habits are a foundational element in any successful financial plan.

To tap in to your full potential on your 2023 journey access our Divine Guided Meditation and Financial Habit Assessment here.

DISCLAIMER: The Divine Blogs do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the blog/newsletter is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter.

Unfortunately, hackers and scammers work hard all year long, but during the holidays they are especially relentless!

The calls, texts, emails, and links are endless. They usually have a link urging you to click because “your order requires attention”, or “your account has been locked”, or “your account has been hacked” ….etc. etc. etc. Any imaginable scare tactic to get you to act. Once you act they prey on your naivete and count on you not being tech savvy so they can string you along. Sadly enough these unscrupulous people are targeting seniors now more than ever!

Another tactic that has been devised is offering products on online marketplaces with no intention of providing the item. Things like bikes, computers, cellphones and even puppies are used as bait to get you to wire money.

Although there is no foolproof way to stay safe 100% of the time, we can remain hyper vigilant so we recognize these attempts.

Here are a few tips to help keep you and your information safeguarded.

• DO NOT click on any unsolicited links that come via email or text. EVER!! Instead call the merchant or bank directly to a number on the back of the credit/debit card or a phone number from their website.

• DO NOT wire money or provide your bank details to anyone online.

• DO NOT give anyone who calls you or texts you ANY information. EVER. This information includes your social security number, mother’s maiden name, bank account, etc. Rest assured that neither the bank, nor the social security office, nor your credit card company will call asking for your personal information. As a matter of fact, the social security administration (SSA) will never, ever, call you! If you’re still unsure hang up and call them directly to a number from your bill, card, or their website. Many of these scammers try to provide you with a bogus number only to have one of their associates conspire. Computers make it very easy to change their caller ID to read whatever name and number they want.

• A bank, credit card company, or government organization will NEVER ask you to purchase gift cards to unlock an account, reverse fraudulent charges, or any other reason. This is one of the biggest scams going.

• Sign up for account alerts with your bank and/or credit card company so you know what’s going on with your account and can take action when needed.

• Check your credit report often with sites like creditkarma.com - it’s free.

• Create a social security account to keep tabs on your number, benefits, and your statements.

Please take precaution to avoid falling prey to one of these scammers, but If you have been victim of fraud you can go to the federal trade commission’s website for next steps.

Stay safe and Happy Holidays!

Disclaimer: The Divine Blogs do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the blog is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter or blog.

Who is your “person”?

If you’re anything like me, you have that individual or individuals in your life that you call to ask about everything under the sun!

If I need information about a recipe, I call my mom or my aunts. If I need to know anything about hair, I call my son. A breakdown of the current events, my husband.

But here’s the thing I realized in 2014 I didn’t have a “financial person”. I didn’t have anyone I could call to ask if I was on the right track, if I was saving enough, how best I could get out of the mountain of debt I had accumulated, or anything else.

I had worked in finance my whole adult life and I was basically on my own.

Person-less.

I think we can all agree that at some point in our life we have felt person-less about something. Then left to our own interpretation of how things should be we wind up trying to figure it out as we go, and oftentimes that doesn’t fare as well as it could.

But what happens when we seek guidance? When women come together to ask for help, learn, share and experience things as a group?

There’s a shift and we take back our power.

We trade in that fear, shame and inadequacy for strength, knowledge and power!

When we surround ourselves with a successful group of women, we feed off each other’s energy and we begin to thrive.

Every woman needs a powerful network of women. Women that are willing to share what they know and who they know. I’m not saying that we can’t have male friends and allies, but there is something special about another sister having your back!

This is exactly what happens when we gather for financial support.  I don’t mean help paying the credit card bill but reaching out to people that can guide us and see things for us that we can’t see for ourselves.  

Women build wealth in collaboration not isolation.

Money is not complicated, especially when we have the right support and resources to guide us. When women stand together in their truth, wear their confidence and realize their financial power, great things happen. We already direct 83 percent of all consumption in the US, in buying power and influence.¹

When we can understand that we don’t just have to be consumers of this economy, we can make the shift to owners of the economy with a seat at the table.

The effects of women in their financial power can be significant. One of those effects is that we are amazing investors!

Did you know that research shows that women are better investors than men? Men sometimes buy and sell too soon, where women adhere more to the “buy and hold” strategy.  Women are less about outsmarting the market and more about long-term investing goals.  

Today I am no longer “person-less”. I am truly blessed to have built a beautiful circle of women who I trust, admire and respect.  We share triumphs, challenges and dreams about our Empires. Although everyone’s financial journey is unique, it doesn’t mean it has to be lonely.

Grow your circle of influence and find your person(s).

Source: ¹Catalyst

Awareness. According to a leanin.org survey, 1 in 3 people are not aware of the wage gap Latinas experience. Latina Equal Pay Day is the perfect day to share and educate others with what we know!

Fight for fair pay. We must KNOW OUR WORTH and learn how to negotiate our salaries, and secure pay transparency. The AAUW (American Assoc. of University Women) offers a free online course that teaches you salary negotiations. Our work is being devalued and we have to talk about this with our hermanas. Share what you know and how much you make with your amigas because knowing compensation for a job can help us better advocate for ourselves.

Look up the gender pay gap in your state and call on your representative to support legislation around equal pay.

And of course, we should continue to promote and fund Latina entrepreneurship. Not getting paid what you’re worth? Now YOU can fully control what that amount is. #BOSS. You know I’m ALL about that LIFE!

Let’s remember that closing the wage gap is not a zero-sum game—gains for one gender or race do not require losses for another.

It’s also that time of year when a lot of us start what I like to call the “fall cleanup”.

We swap out our clothes and we empty our closets and drawers of all the unnecessary things we’ve accumulated over the season, or even the whole year. And if you’re anything like me, you continue this purge throughout the whole house.

No drawer or closet is left unturned. I’m on a mission!

But why stop at the linen closet or junk drawer? This is also the perfect time to take a look at our financial “junk drawer”. I’m not just talking about that filing cabinet where you have bank statements that date back to March of 2017.

I’m talking our whole financial picture. Let’s jump in and clean it up, too!

Here are 5 things we can do to lighten the load and pave the way for a clean start in 2022; which, honestly, will be here before you know it!

1. Take inventory. We should know what we actually have in order to clean it up. Make a list of what you own vs. what you owe. Do you have a budget and have you been following it?

Take some time to go over your spending for the last few months. Our budget is the foundation for our financial empire. How did you do? If you feel you’ve had to tweak it often, then you may be overspending and need to set a more realistic plan.

2. Consolidate accounts. Some of us find that we have several bank accounts that we rarely use. How many accounts do you have? What are the fees? Are you getting the best rate for your money? Interest rates have been on the rise - so you may want to take advantage of some of the better interest paying savings accounts. While you’re already checking accounts, take a look at your 401(k)’s. Some of us may have old plans from previous employers. Consider rolling these accounts into an IRA. Aside from streamlining your banking and retirement savings there could also be cost benefits in consolidation.

3. Automate. Go paperless with checking account statements, investment accounts, and credit cards. These days, even your utility company will let you pay online. Get rid of all of that paper that clogs up your mailbox and winds up in the junk drawer! In addition to automating your bill pay, consider automating your savings. Out of site; out of mind. Set up an automatic savings plan through your bank. Some employers even allow you to split your pay into 2 separate accounts.

4. Sort paperwork & shred the rest. This step actually adds to the literal aspect of the cleanup! Take the time to go through all of your paperwork. You really only need to keep bank statements for a year, and you can discard tax documents (and their supporting records) after seven years. After all, once you’ve automated your finances you can always access old statements via your bank or credit card company’s website. Be sure to shred any docs that have personal or sensitive information in order to protect yourself from identity theft.

5. Prepare for holiday spending. According to a forecast from Mastercard SpendingPulse, retail sales are set to see a sizeable jump both from last year and from 2019 -- before the pandemic upended consumer behavior . If you haven’t already, create a budget for holiday spending. Research the items you intend to buy and when they may be sold at the cheapest prices. Take advantage of Black Friday or Cyber Monday. And remember its never a good idea to go into debt to buy gifts

Having a clear understanding of our financial picture is the only way we can conduct a thorough and productive clean up. Just because we don’t open that drawer or filing cabinet doesn’t mean it isn’t there. Having a clean space in the physical and financial sense gives us a feeling of liberation and accomplishment. Our financial journey is one that we must consistently work on, but this is a good starting point.

To learn more about these 5 steps or your own unique financial plan call us 347.480.9212.

DISCLAIMER!!!! The Divine Monthly Blogs do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the newsletter is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter.

Life insurance.

There I said it. Those two bad words.

Two words that most people never utter.  And if they do, it’s an item on the “to do” list, but nowhere near the top.  It’s something that we know to be important and we probably should have, but never actually bother getting.  Kind of like the importance we give the dentist, right? Our teeth are necessary, but the odds we make and KEEP that appointment are about as unlikely as us hitting the mega!

Why is this? My best guess; fear.

We are afraid of death and anything else that is unknown.  It’s our own naiveté that gets in our way. 

Let me share that I am not immune to this. Before I bought my own policy in 2000, life insurance was a foreign concept to me.  No one I knew had it; therefore, I knew nothing about it. I am so grateful that one of my co-workers introduced me to the idea and his advisor.  My initial thought was that I wasn’t “rich” so it didn’t apply to me, but boy was I wrong. My husband and I sat with this gentleman and listened intently to his every word. And at the same time, we had NO IDEA what he was talking about!

You know that “Wall street jargon, finger pointing, chest pounding ‘you know nothing, I know everything’…” kind of conversation?!  Yeah, that one.

Of course, we bought it, but not because we knew the benefits.  We bought it because he scared the shit out of us!  The absence of life insurance upon the premature death of myself or my husband could be devastating. This was the part of the conversation we heard loud and clear. DEVASTATION. Yikes!

It wasn’t until years later that we sat down with a trusted friend who was also an insurance agent and he broke it down for us.  He explained the types of insurances, why one would need a certain amount, how we could use permanent insurance as an asset while we are still alive.  He really educated us on what we owned and what we may be lacking. He moved me so much that I even got licensed as an insurance agent myself.

You’ve heard me say this before: Act. Of.  Love. Well, life insurance is also an Act of Love.

You see, once you have a family you are no longer allowed to be selfish.  You are no longer allowed to believe that once you are gone “it’s not your problem.” That “someone will figure it out.”  Because the fact is that no one should have to figure it out. 

Losing a loved one is hard enough. 

People are left to mourn and hurt and learn to live with a gaping hole in their heart and life.  We owe it to our families not to compound the pain by burdening them with the financial worries.  The average funeral costs over $10,000 and this is merely the beginning of this journey. What kind of financial impact do you think your death would have upon your family? Take your future earnings into consideration and I’d say it would be huge. 

Life insurance allows your family to give you a proper burial. It ensures that they stay in the home you created together.  It can send your kids to college, pay off debts, and in general give them financial peace of mind.

It is part of your legacy.

Far too many times I see GoFundMe pages asking for donations for someone who has passed.  You’ve seen them, right? This is NOT a viable plan. Even if friends and family raise enough funds for the burial, what happens next? Who takes care of the people you love? How will they make ends meet? Will they be forced to sell the family home just to stay afloat?

Of course, life insurance may not be for everyone.  If you can “self-insure” because you have the cash to leave behind, then that’s wonderful.  If you are single with no kids, it may not be on your radar for now. But if you have people who rely on you financially at this very moment, then IT IS FOR YOU.

In fact, it is for THEM.

To learn more about life insurance and protecting your BIG, Beautiful Life & Loves, please call us at 212.344.5867 or go to our website www.divineassetmgt.com and sign up for a free 30-minute needs analysis.

With the age of retirement decreasing and the average life span increasing, we are left in the precarious position of possibly outliving our money all while possibly dealing with age related chronic illnesses and rising healthcare costs. This kind of situation forces many to rely on adult children for care and support in the golden years.

Longevity; it’s a double-edged sword.

Sounds like the retirement everyone dreams of, right? Not exactly!

Cue up the “Sandwichers”.

The term “Sandwich generation” is a term used for a generation of people, usually in their 40s and 50s, who care for their aging parents while at the same time bringing up their own children. The typical American Sandwich Generation Caregiver is in her mid-forties, married, employed and cares for her family and an elderly parent, usually her mother. AARP estimates there are more than 66 million Americans caring for both their children and parents financially and emotionally.

Chances are that half of us will at some point be responsible for our parents and our children at the same time.

Have you had a conversation with your parents about their financial picture, their savings account and insurance coverage lately? Does it sound as uncomfortable as discussing your sex life with them? Time to get over it (the financial part that is)!

Here are some tools to create a customized sandwich:

• Approach with love: We are all specialists in some way of putting off things we don’t want or know how to deal with in our lives. We are asking our parents about their future plan because we want an amazing future together, but remember this is their plan and they may be hesitant to open up. Go slow, but be steadfast.
  

• The more we know, the better we’re prepared. Get it all on the table:

Savings and Investments

Health Insurance plan

Life Insurance

Long Term Care Insurance

Annuities

Living Will or Advance Directive

Health Care Power of Attorney

Power of Attorney

Wills and Trusts

Estate Planning

Sort through all you parents’ documents with them.  Do they have the above listed items? If not, now’s a great time to get these items implemented.  If they do, get copies of everything.  Most parents want independence and want to be in control of how they are cared for, so planning is critical. Unfortunately, many parents cannot afford costly LTC Insurance and have very little saved, so we are then faced with the question of how we will afford to care for them. In these cases, we must arm ourselves with knowledge on available assistance to ensure quality care and optimal life for those we love. Medicaid and PACE (Program of All-inclusive Care for the Elderly), and Supplemental Security Income (SSI) are available if you meet the benefit requirements and you can check out your state Medicare programs and learn how to apply. You can visit AARP’s website for state by state directive forms, but for specific questions it is best to consult an attorney.

• It’s a Family Affair: Bring your siblings into the conversation! Clear, concise information when shared creates better decision making in the long run.

• Make sure your OWN Empire Building is in full swing. (But you already knew that!) Continue to build your retirement accounts --- there are no scholarships, grants or loans for retirement, like there are for college. Don’t forsake your own planning while you care for mom or dad.

Things to consider when caring for aging parents are:

• Housing options – Evaluate and plan for appropriate level of housing or residential options. Staying in their home, assisted living, independent living, nursing home, home healthcare. What do they want? What can you realistically afford?
  

• Social activities – Help keep them active by providing opportunities for parents to engage in social and recreational activities and the ensuing logistics.
  

• Medical management – Keep on top of doctor appointments, facilitate communication between doctor and parent. The more you monitor adherence to medical orders and instructions the better assured you are that everyone is on the same page with critical health information.
  

• Financial responsibility - Many parents are still willing and able to responsibly handle their finances, but overseeing bill payment and contributing money for care and other expenses, if possible, can be helpful.
  

• Enlist your advisor and attorney- Your advisor/attorney can provide many resources for your specific situation and add perspective and guidance to your home team.
  

• SUPPORT GROUPS!! You are not alone and there are so many amazing people that are going through a similar journey. Learn from each other and collaborate. PBS is a great place to seek information on all kinds of support groups for aging parents and Sandwichers.

No level of financial planning will prepare us for the myriad of emotions as we go through something like this.  We must promise, swear even, to take care of ourselves BEFORE we take care of our parents and children; if we’re not at our best we cannot care for anyone else. Don’t take on more than you can handle --and drop the guilt--there’s enough of that in the world already. 

For more information on Empire Building call us or go to our website.

DISCLAIMER!!!! The Divine Monthly Blogs do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the newsletter is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter.

The Stimulus Bill: The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is enacted into law. Here are some highlights: Individuals who earn $75,000 or less in adjusted gross income would get direct payments of $1,200 each, with married couples earning up to $150,000 receiving $2,400. An additional $500 per child will be tacked on to that. The payment would scale down as income rises, phasing out entirely at $99,000 for singles and $198,000 for couples without children. Even those who have no income or rely solely on social security should get a check. The bill includes a proposed increase in unemployment payments by $600 per week for four months on top of what each state provides as base unemployment compensation. It also extends benefits to 13 weeks for people already collecting unemployment insurance. Click HERE for a stimulus bill calculator to see how much you would receive along with FAQs from the Washington Post.

You can withdraw money early from your IRA or workplace retirement plan up to $100,000 this year without the 10% penalty, as long as it’s because of the pandemic. There is also a tax exception that allows you to spread out any income tax you owe over 3 years from the date of distribution. And you can now borrow twice the usual amount from your plan.

The bill also pauses federal student loan payments for 6 months and waives interest.

More on unemployment benefits: A record 3.3 million Americans filed for unemployment benefits last week. Compare that to 281,000 the week ending March 14. NYC alone has seen a 1000% increase. There is no reason to delay your filing. Click HERE to see if you are eligible and how to apply online. Some states’ websites are experiencing delays and even crashing but keep trying!

Get a jump on your Expenses: List your monthly debts and expenses. Prioritize. What can you pay right now? Groceries are undoubtedly number one on the list followed by housing. If you are finding that you are stretched right now, cutout what you can. A good place to start is with all those monthly subscriptions like ipsy, stitchfix, multiple streaming services (if you have more than one) and any other discretionary monthly spending you have in the queue. Use this Divine Budget Sheet to help sort your expenses.

Be Proactive: Call your landlord, lenders and creditors if you know you will not be able to make your payments. Landlords should be willing to work with you on a course of action, but if not, most municipalities are halting evictions for those who can’t pay their rent. Most mortgage companies are offering forbearance and many credit card companies are waiving late fees and credit reporting. BUT don’t just stop paying – be proactive and work It out with those you owe.

Take care of our Seniors: Our senior citizens are incredibly vulnerable at this time. Not just from the virus itself, but the effects it has on them mentally and emotionally. Many of our elders are in isolation - which can bring on problems of its own. Check on them and offer to bring food and/or pick up medicine, albeit by dropping items at the door to maintain social distancing. Call, text and video chat as often as possible. Click HERE for a link from the National Council of Aging provides tons of resources for seniors.

Scammers: Scammers are using this time to prey upon us during our vulnerability. Scams come in all forms. From fake coronavirus tests, fake charities, financial relief in exchange for upfront fees to calls from lenders, the IRS or the social security administration. Please remember that no one should be calling you and asking you for personal or financial information. If you feel like you are being targeted hang up immediately. You can always call the agency or company the caller claims to be representing.

Intention: And lastly let’s be intentional on how we show up during these challenging times. Be kind to one another. Social media is an amazing platform to stay connected so let’s use it wisely. Be mindful of the things you post that may induce fear and anxiety. Be diligent about fact-checking before you hit the share button. There’s enough misinformation out there and we don’t need anymore. Let’s take this time to love on our families and maintain gratitude for having our loved ones near. This too shall pass! When we are on the other side, we will certainly have a new appreciation for our health, life, and everyday freedoms.

For more information about COVID-19 go to: https://www.coronavirus.gov/

Sources: Washington Post, LA Times, NY Times, NY Post, Forbes.com, Usa.gov

Despite equal pay day being established in 1996, very little progress has been made. In fact, most of the progress was made in the 80’s and 90’s. In the past 10 years (2009-2018) the weekly gender wage gap narrowed by less than 1 percentage point.

Not exactly the leaps and bounds we hoped for.

The most recent research shows women in the United States make $0.80 on the dollar compared to their male counterparts, according to the IWPR that gap is wider for Black women at $0.61, Native American women at $0.58 and Hispanic women at $0.53 <insert my serious eye-roll and “que carajo” here> compared to their male colleagues. This means our Equal Pay Days are further out at August 22, 2019, September 23, 2019 and November 20, 2019 respectively.

No matter how you analyze it the gender pay gap is real and harmful to women’s economic security. It’s no wonder women have less saved in retirement than men; indeed the deck is already stacked against us.

Congress has passed a bill “The Paycheck Fairness Act”, aimed to strengthen equal pay protections for women by expanding upon the Equal Pay Act of 1963 and the Fair Labor Standards Act. It would ban employers from asking job applicants how much they previously made, prohibit companies from retaliating against workers who share wage information, and increase penalties for equal pay violations. The bill still has to pass an uphill battle in the Senate where it already lost once.

At its foundation, the concept is simple. Men and women doing the same job deserve the same pay. It’s not rocket science.

Some companies are doing their part to eliminate this issue. Starbucks, Apple, Adobe, Salesforce and Lululemon have all closed the gap to reach gender parity.

We have a long way to go, but more companies have to follow suit, we need government to step it up, and we have to fight for salary transparency.

Other solutions - let’s get rid of the term “maternity leave” and call it “parental leave” where both parents take time off and maybe that could curb the unjust discrimination we receive for taking off to have a baby.

How about subsidies for child and elder care? For mothers of young children, particularly those who are low-income, the lack of affordable, high-quality childhood programs and care can prevent working mothers from meeting the demands of their jobs which is crucial to their long-term success.

And of course, we should continue to promote and fund female entrepreneurship. Not getting paid what you’re worth? Now YOU can fully control what that amount is. #BOSS.

Women have broken a lot of barriers, and we know we have a way to go, but we are moving in the right direction. We’d love to hear your experiences and what you think we can do to make the gender pay gap a thing of the past.

Valerie Sanchez is Partner at Divine Asset Mgt & a proud Latina entrepreneur.

2018 was hard.

The markets are making headlines again. This time, rather than technology stocks achieving gravity-defying highs, such as Apple’s trillion-dollar market cap late this summer, we’re biting our collective knuckles as “peak everything” reverberates through our economic hallways.

While we can reasonably debate the ideal interest rate environment or the health of our consumerist culture, markets are anything but reasonable. Despite, or perhaps because of, an absurdly unconventional political climate combined with a decade of artificially-low interest rates, US equity markets have achieved multiples not seen since 1999-2000.

So, if we have in fact reached the peak of our markets’ earnings and profits growth, does that mean recession is around the corner?

In short, no. Here’s a chart:

S&P 500 earnings per share since 1870

(inflation adjusted, in Nov 2018 dollars, chart from multpl.com)

While we may have achieved “peak earnings,” the chart illustrates that over time, our economy continues to achieve higher highs. This is why we play the long game.

Corporate earnings growth (which is the measurement, in %, of year over year growth), economic growth (Gross Domestic Product or GDP, measuring how much the U.S. produces in goods and services) and profit margins (the ratio of profits earned to total sales) have pulled back from recent highs. Some economists believe that an economic peak can foretell a coming recession. Obviously, the outcome is far more complex than a few simple metrics. We believe that we will experience continued earnings growth – but not at the clip we’ve been achieving over the past couple of years. However, GDP growth is still clocking in at a 3.5% annual rate in the third quarter. Hardly a recessionary number.

The Federal Reserve raised interest rates on Tuesday by ¼ point but many investors hoped that, given the macro economic weakness, the Fed might hold off on the hike. Powell, the Fed chair, was essentially damned no matter what action he took.  If he raised rates, as was planned, the risk to the markets was significant given recent weakness due to Trump tariffs and an impending trade war. But if Powell backed off and did not raise rates (something we like to call ‘Unch’ or unchanged) he might be seen as kowtowing to Trump, who recently demanded (in a tweet of course) that the Fed ease back on rate hikes.

Keep in mind that when the Federal Reserve raises rates, they are signaling that the economy is strong, and lending should be more expensive.

Investors are more than a little conditioned to believe that there’s a mega grizzly bear, lurking somewhere within our global financial system, particularly during times of extreme market volatility such as these. One big reason we have held abnormally high levels of cash (more than 10-15%) in our Divine accounts is because we want to be prepared for unreasonable markets and take advantage of ‘flash sales’ when they hit. Over the long term – which is where we set our sights- markets recover and the overall trend continues it’s march upward. 

When we take stock of 2018, let us not forget the GOOD news: our dividend growth strategy of owning high-cash-flow securities that pay dividends that buy more securities, generating yet more cash is the zenith of long term investing.

 Market meltdowns are inevitable. The 18-point swing in the Dow and S&P this year (from up 10% to down 8%) was a wild one. There will be more volatility. There will also be an abundance of blessings, friendships, laughter and love to be grateful for in the coming years. I look forward to that, and to continuing to build positions in iconic issuers for long-term dividend growth.

Sending much love to you and your families,

Dani and Val

DISCLAIMER!!!! The Divine Monthly Note newsletters are impersonal and do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the newsletter is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter.

When I was pregnant with my daughter Bb, I could not get enough of watermelon and feta cheese. I ate them together. Every. Single. Day. The dry, salty feta mingled with the juicy, sweet watermelon was absolute divinity, even though most (ok, all) of my coworkers were grossed out. But let’s face it; extremely disparate ingredients often complement each other in surprising ways, as a clash of opposites serves to satisfy two cravings at once. Bacon and ice cream. Pizza with pineapple. Michael Jackson and Eddie Van Halen. You can’t ‘Beat It’!

One of our holdings lies in the epicenter of a unique American extreme; the meltdown of the American shopping mall due to spiraling commercial real estate values married together with the dizzying rise of virtual reality and gaming.

The American shopping mall is experiencing an apocalyptic collapse of value and influence. In the mid-1990s, the number of American malls peaked at around 1,500, while today there are only about 1,000 left. The fall of anchor stores like Sears (SHLDQ OTC; $0.30) and JC Penny (JCP NYSE; $1.31) and the rise of internet shopping (the monster being AMZN NASDQ; $1,649.00) have led to constant mall bankruptcies and closings all over the country. There’s even a show on YouTube called Dead Mall Series, check it out: (https://www.youtube.com/playlist?list=PLNz4Un92pGNxQ9vNgmnCx7dwchPJGJ3IQ). ‘Dead Mall’s’ spot-on satire is hilarious and depressing at the same time. Retailers that aligned themselves with brick-and-mortar malls are in mid-pivot (or mid-collapse) and recasting their business models toward virtual or experiential shopping.

The antithesis of mall culture is our nascent gaming culture. Thanks to platforms like Playstation, Xbox and Wii and mobile streaming, video game spending in the US increased 40% in the first half of 2018 to $19.5 billion, with mobile games experiencing the most impressive growth. Gaming has become a true meta-cultural phenomenon; globally, the gaming industry is expected to reach $171.96 billion by 2025 (according to a report by Grand View Research).

Our holding that expands this clash to a higher high concurrent with a lower low is GameStop (GME, NYSE $13.88). GME is a multichannel video game retailer with a footprint largely in the malls of America, selling consoles, new and used games, accessories like headsets and controllers, and collectibles. The company owns 3,802 video game stores in the U.S. and 1,951 internationally, and they are presently in the throes of its most important quarter of the year otherwise known as “theSpend-i-days”(when we try not to spend too much on our children and epically fail). GameStop’s revenues are $9.07 billion (on a trailing twelve-month basis) and somewhat surprisingly, given the volatility in the industry and the market, it has held on to that top line number for years (from 2013-2018, highest revenue was $9.36B in 2016 and lowest $8.6B in 2017).

GameStop’s stock was crushed in late 2015 as the aforementioned Dying Mall trend gained momentum. Notoriously, the company was tabbed as ‘the new Blockbuster’, as investors saw the business model as a similar dying brand. However, the company continued to kick out good free cash flows to support their hefty 10.95% dividend. As well, they reported that they are exploring a sale, most likely to another public company or private equity firm. Here’s our brief analysis of the Salty and the Sweet of this opportunity:

Salty:

• Brick-and-mortar mall model is obsolete

• The stores themselves are sloppy and customer service is nonexistent

• Console makers and publishers are moving to streaming content and direct-to-consumer models rather than boxed CDs

• Management cannot get out of its own way to take advantage of virtual trends and truly cut costs related to brick-and-mortar businesses

Sweet:

• Low stock price price/earnings multiple

• Excellent free cash flow (to support dividend)

• Collectibles and accessories businesses have experienced excellent growth

• Recent appointment of a board member who has successfully assisted with other brand buyouts (PetSmart, Timberland)

• Financially sound company

The rise of Virtual Reality will eventually finish off the slow meltdown of the mall; in the meantime, we believe GameStop has an opportunity to realize value for shareholders, and for that we are willing to (get paid to) wait.

Have a beautiful Thanksgiving!

Love,

Dani

All quotes as of the close 11.12.18

DISCLAIMER!!!! The Divine Monthly Note newsletters are impersonal and do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the newsletter is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter.

Many times, I half wondered why some little smarty-pants wasn’t capitalizing on all of that free wind power and, instead of toppling pedestrians, turning it into an energy source for their high frequency trading systems. Although modifications to building sites and parks have tempered the whipping winds in the city, the earth’s gusty power just keeps on blowing.

Wind has been used by humanity for thousands of years as a source of power but only truly institutionalized in the US as a result of the energy crisis in the late 1970’s and early ‘80’s. Today, more than 90 countries have installed wind power plants, and 9 countries have more than 10,000 MW (megawatts) installations with China leading the pack with more than 43% of the world’s wind power production.

You probably thought that politicians are the source of wind but outside of government blowhards, wind is actually produced by the uneven heating of the earth by the sun. Wind energy is truly everlasting and is major alternative to fossil fuel, making it a perfect target for mission- oriented investors. As promised in last month’s post, Mission Possible, I’m fixing to focus on one of our Wind Power portfolio companies.

Ignoring the dire warnings from scientists that we can only burn a small portion (less than 15 percent at maximum) of already-proven fossil fuel reserves if we are to prevent devastating climate change, governments worldwide continue to ramp up incentives to coal, oil, and other fossil fuel production. In the US, lawmakers are encouraged to subsidize the production and consumption of fossil fuels to the tune of $27 billion…per YEAR. This is not sustainable on any level but, alas, we will not journey down that rabbit hole (or drilling hole), at present.

Alternative energy to power the world has been the seemingly un-investable dream for decades. Within the last five years, however, there has been a global transformation as wind and solar power markets move away from governmental support subsidies toward private sector commercialization. Three forces came together to make alternative energies investable:

• Technology became cheaper to produce

• A precipitous drop in the price of battery storage

• Connectivity to the grid grew less cumbersome

Pattern Energy (NASDAQ: PEGI $18.89) is a US based wind and solar power generation company that produces and sells electricity mainly in the United States, Canada, and Japan. PEGI buys wind energy projects that generate electricity from Pattern Development, a sister company of which PEGI owns 29%. PEGI currently has 25 operations and owns a capacity of 2.9 gigawatts with 9 more projects in its pipeline.

PEGI has a guaranteed buyer for 92% of PEGI’s produced electricity at a fixed price and those contracts have an average remaining duration of 14 years with companies that have A+ credit ratings. Yes, you read that correctly. But wait, there’s more. PEGI pays an 8.9% dividend and their dividend has increased more than 35% since 2017. PEGI is profitable and continues to fire on all (wind powered) cylinders.

The US wind power market is still young with only about 6.4% of US electricity produced by wind. Utility-scale wind plants in 41 states have created more than 100,000 jobs for Americans and, even in our current pro-fossil-fuel culture, wind and solar projects continue to gain ground.

Global wind power installations as of 2017 are 539,123 gigawatts, which is up more than 10% from 2016, and the forecast calls for double-digit growth in wind power installations from 2019-2022.

On October 8th, the Intergovernmental Panel on Climate Change (IPCC) issued stark warnings which urged far more ambitious action to cut emissions by 45% by 2030 and reach net zero emissions by 2050 in order to keep warming down to 1.5C. Calling this a moral obligation on the part of world leaders, the IPCC report called for a ramp up installation of wind and solar power, decommissioning of coal plants, and investment in climate-friendly sustainable agriculture.

Most businesses will not be motivated to action if their primary profit centers are on the chopping block. Remember tobacco? Diamonds? It’s up to the financial forces that fuel investment (that’s us!) to commit our capital in a future-forward manner. Investing in well run, profitable, value investments (like our PEGI pick) is a choice way forward. Another positive light is the RE100, an initiative for global companies to use electric energy from 100% renewable sources. RE100 currently has 152 global companies, many of which are Divine portfolio companies, committed to transparency and accountability – they even publish a RE100 Annual Report.

It makes extraordinary sense to invest in profitable companies seeding the future that pay us dividends to wait. Next month I’ll get down with an infrastructure play but, until then, take your vitamins and pay your taxes.

Love,
Dani

DISCLAIMER!!!! The Divine Monthly Note newsletters are impersonal and do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the newsletter is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter.

Is now a good time for you?

This is an ideal time of year to think about what we’ve done in 2018, how much we’ve accomplished and what we may have done differently.

I believe that if we are looking back and can’t seem to understand why we haven’t stayed the course or made a positive impact in our financial journey then maybe it’s time to hire a professional.

Some might say that it’s counter intuitive to spend money on an advisor when we are financially strapped or can’t get our financial house in order, but if what have been doing hasn’t worked then it’s probably time for some careful consideration.

After all, the definition of insanity is doing the same thing over and over and expecting a different result.

The first thing we need to do is figure out where we are versus where we want to be. What does that look like?

At Divine we start with an exercise called Empiring.

It’s about envisioning the future we have created for ourselves and our loved ones. This allows us to really visualize ourselves in the coming years and we bring our future self into the present! We can then create goals and a savings, budget and investment strategy that has a positive impact and makes sense for our situation at whatever stage we’re in.

Once we know what a client wants then we start planning. The thing to keep in mind is that there are many pieces to the puzzle therefore everyone will have a unique planning experience.

Here are some things to think about when assessing if there is a need for a professional:

How does our cash flow look? Do we know where every dollar that comes in is going? Are we living within our means?

Savings - Do we have 3-6 months of expenses covered? Life happens. Are we ready for that emergency? Remember when the heating/AC unit goes it doesn’t usually give us notice.

Debt – Spending our life in debt can compromise other goals. Not only are we usually paying high interest rates, but then there is the lost opportunity of what we could’ve done with that money. And let us not forget the emotional effects debt can have on us. Structuring a debt pay down plan makes all the difference.

Retirement accounts – Do we have an IRA, pension, 401(k), 403(b)? Maybe we left an old account at a previous job and have no idea what’s in that account. Maybe there is an employee match you’re not aware of. By not knowing the contents or rate of return in these accounts we may be leaving money on the table.

Insurance - we should have all of our insurance bases covered – this includes life, disability, and health insurance. The probability of disability or premature death are low, but we must better insulate ourselves for the possibility of these unexpected occurrences along the way.

Having a financial partner to guide us on the journey makes us feel like we’re not alone. Sometimes we need someone to tell us whether we are on the right track or not. There is so much that goes into planning our financial future that the thought alone can be overwhelming. Not only is there the aforementioned, but other things to consider are college planning/saving, homeownership, children, and more. An advisor can help review and prioritize our goals and objectives with a fresh set of eyes.

An advisor can help bring order to our financial house, bring insight from the outside to help us avoid emotionally charged decisions, and help us follow through on financial commitments as an accountability partner.

To learn more about a financial plan visit us at www.divineasstmgt.com

DISCLAIMER: The Divine Monthly Blogs are impersonal and do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any blog.

Mission-oriented investors are no longer required to sacrifice returns in order to take a stand.  The world of ethical and responsible investing has grown up, and investors are impacting global industry.

SRI, or Socially Responsible Investing, used to be the playground for the elite; a strategy with the taint of righteous indignation, dragging along a cross of skimpy returns. The focus then was in building portfolios that avoided the companies that were doing bad business, and in doing so, having to choose second-rate cousins.

But over the last fifteen years, so much has changed. Environmental, Social and Corporate Governance investment strategies, ESG for short, have grown from $1.4 Trillion to $8.1 Trillion in assets and about 20% of all assets under management in the US have some ESG component. Investors didn’t create this groundswell by demanding that issuers become do-gooders. As it turns out, consumers are compelled by environmental, social and sustainable products and services and have been the true force behind the successes of companies that mindfully manage their environmental impact, employee focus, governance and diversity. At the same time, activist investors have proven that they can force change from within, and armies of impact-hungry investors have enacted powerful transformations within global companies.

And it just feels good purchasing a product that has recyclable packaging, a diverse board of directors or a service that donates a portion of profits to a just cause.  It’s satisfying to invest in companies that meet those standards as well. But how do we actually measure all of this Do Goodingness?

It’s simple to measure the economic impact of an investment on my portfolio (am I being paid a dividend? Has my investment in the company grown over time?) but it’s quite another to measure environmental and social targets.

Reams of recent studies have shown that diversity and proper corporate governance leads to meaningful stock outperformance and happy, smiling investors. Every major global asset manager from AXA to Vanguard offers at least one ESG fund, and often many encompassing themes such as workplace equality to water scarcity to clean energy. Just as the tidal wave of Exchange Traded Funds fueled asset management profits, ESG investment initiatives are not far behind.  On my screener, I show 1,063 Socially Responsible ETFs and Mutual Funds in the US compared to just 316 funds focused on healthcare.

Investors do not need a special fund to align their money with their mission anymore.  There are screening tools that enable investors and their advisors insight into governance practices, hiring, diversity, employment practices, and ranking systems for environmental impact. The transparency that has been initiated by regulatory agencies has been furthered by investor demand.  Creating our own mission portfolio with values that matter to our lives and our legacies is critical to creating the future we desire.

About an eternity ago, (in 1970), the economist Milton Friedman wrote an article in the New York Times entitled “The Social Responsibility of Business Is to Increase Its Profits.” Most investors will screen for profits first and invest with management, then seek social or environmental impact second.  We believe the tide has turned. Yes, profits are the first screen, but if impact is negative, there are a lot of other fish in the sea.

Next month, I’ll write about some of the companies in our mission portfolio and on our watch list here at Divine Asset that we consider mission or impact worthy investments. Have a wonderful September!!

Love,

Dani

DISCLAIMER!!!! The Divine Monthly Note newsletters are impersonal and do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the newsletter is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter.

If you grew up in between 1950 and 2000, owning a car was equivalent to having the keys to Freedom. That all changed when technology grew horns and big data spawned the Sharing Economy, aka collaborative consumption. Now as global economies experience a massive paradigm shift, my stick shift, maroon-velour-seat, dual tape deck Dodge Daytona turbo is officially an ancient relic, as is the concept of owning the road. Owning stuff is expensive, burdensome and passé.

Sharing is the new freedom. 

Collaborative consumption is transforming everything, from how we vacation (Airbnb) to how we listen to music (Spotify) to how energy is delivered to our homes (smart meters).  This month, I am focusing on the seismic shifts within auto industry and where we see opportunity.

You Can’t Get There From Here

Ford CEO Jim Hackett announced earlier this year at the Consumer Electronics Show that new mobility AI and autonomous connected vehicles will enable "(a) total redesign of the surface transportation system with humans and community at the center."

That’s a massive call to action.

The automobile has been the heart of industrialized civilization for 100 years, so a complete transformation isn’t happening overnight, and like my father often said, you can’t get there from here. But it’s clear that the democratization of mobility is happening in real time; Uber and Lyft allow people to utilize transport (and employment) at will -- and for far less capital than buying or leasing (or even renting) a car. Alphabet and Tesla are testing autonomous cars in major cities. Tesla and Toyota are paving the way for more electric fueling stations across the US (and the world). There are even some predictions that the number of passenger cars will drop by 80% by 2030.  Those predictions seem overblown to us, but this clear shift is spurring investment by major auto and rental companies globally as car sharing and ride sharing seem to be creating the pathway to redesigning the surface transportation system on planet earth.

In the US, here’s how the fledgling car and ride sharing industries are shaping up, and what majors own each sharing company:

Uber and Lyft dominate the ride sharing industry, and 45% of adults age 18-29 use ride sharing services, not surprisingly the younger, wealthier, more urban portion of the American population.  Uber and Lyft are still private “unicorn” companies (a unicorn is a company with a valuation over $1 billion).

Car sharing is dominated by the major auto makers, as the data and analytics of this market are far more valuable than the $-per-ride that they generate.

Now let’s compare how they are valued by investors.  I’ve organized the chart below with the largest market capitalization at the top, essentially showing the biggest companies by value to the smallest:

Uber has a higher valuation than most of the majors, which might be surprising.  Although their financials are not public, some of the numbers get released when new investments are made, the most recent in May of 2018. Although Uber is still losing money, their revenues have been ramping and they reported $2.6B in revenue 1Q 2018. (Honda, the closest in market cap, reported $36.11B in revenue 1Q 2018).

The tech companies that are driving change (get it? Driving??) are being acquired by the major players at high valuations-there are too many to list, but here are a few recent notables:

• Argo AI, the autonomous vehicle developer that Ford plunked $1 billion into last year

• Autonomic, maker of the Transportation Mobility Cloud, by Ford Smart Mobilit

• Cruise automation an autonomous tech bought by GM for more than $1 billion

• Jaybridge Robotics makes AI software and was acquired in March by Toyota

• NASA and Nissan announced a research partnership to work on autonomous drive systems and human-machine interface solutions

Since our investment strategy is focused on the public markets, we look for innovation at a value-based price.  In my July Monthly Market Note,   I mentioned that Ford (F $10.03 NYSE) is a core holding, and since the Trump Administration’s tariffs were announced, the stock is lower by a bit over 10%.  At the core of Ford’s Smart Mobility Group is the transportation operating system to align and connect people and transport for the future. We still believe that the Ford turnaround is in play, and will remain a value investment for the foreseeable future.

For fun:

I went down a rabbit hole of car slogans in my reading; the Volkswagen tags are the most hilarious.

Enjoy the dog days of summer!

Love,

Dani

All quotes are as of market close July 31, 2018.

DISCLAIMER!!!! The Divine Monthly Note newsletters are impersonal and do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the newsletter is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter.

It is supposed to be this innate skill we are born with but should never speak about. However, with the world and opportunities continually growing, the need to be financially conscious grows as well. Women have elected careers such as financial advisors, engineers, mathematicians, and so many traditionally male-dominated roles and with these careers come substantial financial advancements as well.

We are responsible for our own money and it’s nobody’s business, or is it?

Many women were brought up with the notion that money wasn’t their worry or their responsibility, so never really learned about it. However, in this day and age, it is essential that women get a spot at the financial table, too. The first thing to note is that we are making strides every day.

It takes time to learn the discipline around earning, saving, and spending our money wisely. We are highly capable of taking charge of our lives and making it whatever we want it to be so why does it seem so scary?

Well for one, the idea of planning and working with numbers is daunting enough to keep us a safe distance away from dealing with anything around our finances.

We think about things like health savings accounts, investments, and money markets as vehicles so foreign that we just don’t have the capacity to take them on. The truth is though, it is completely okay to ask for help.

Nobody ever got where they wanted to be without a little help.

Early on, we somehow learn that talking about money is taboo and bringing it up is rude however, most of the people around us struggle with the same things we do.  It is so important to surround ourselves with people we can go to for financial help.

At Divine we call it a circle of influence. A group of people that we can turn to for support, guidance and the dirty truth. 

Making sound financial decisions is imperative to reaching our best, most enlightened financial self, but we don’t have to go it alone. When we share stories, triumphs, challenges and tips with one another, we build each other up individually and as a network.

So, don’t be afraid to reach out and ask for help. Seek professional counsel when needed and look to your circle of influence for guidance. Build up your network of trusted individuals who can be a resource throughout your lifetime and remember that our financial journey does not have to be a lonely one.

To learn more about circles of influence or Divine go to our website: www.divineasstmgt.com

JULY 2018

S&P, Dow Jones and NASDAQ performance, June 2018

YCharts, Divine Asset

It’s July, and I am zealously gardening. I’ve invested in a solar powered vole deterrent that makes sounds underground that will (hopefully) freak the varmints right out of my beds. Each morning, I measure the peas climbing up the fence and concoct a comfrey-and-water tea to fertilize the veggies.  I hold grudges against the deer that ate the tops from my baby sunflowers last week. I find that I’m in a constant state of worry. Not the teeth-grinding flavor of worry; more of a mild, consistent nag. I am focused on organic gardening and snowflaking my way around varmint management, but I aim to get the kind of yields that the Roundup-toting, vole-drowners do.

My principles of gardening are pretty analogous to Divine’s principles of investing:

We set our intention on long term goals for our families and communities. We seek out value; generally, by investing in something we believe to be high-yielding and healthy (like yellow tomatoes in the garden, or alternative energy stocks in the market).  Being disciplined in our research and muffling out the “noise” (like voles or pundits on CNBC) is critical.  Good ideas take time, and compounding via dividend reinvestment (or saving seeds) is critical to building generational wealth.

Each month, I’ll be highlighting some trends, ideas, and idiocies that we’ve come across in the markets.  I would love to hear from you too, so please send your rants and raves! AND gardening advice please!!

The single greatest lesson the garden teaches is that our relationship to the planet need not be zero-sum, and that as long as the sun still shines and people still can plan and plant, think and do, we can, if we bother to try, find ways to provide for ourselves without diminishing the world.

— Michael Pollan

Isn’t that the truth? Investing teaches us a similar lesson, that our investible dollars are our vote on the future of the world. The long-term trends we see in business and life are investible, and how we put our money to work can improve the prospects for generations to come.

Divine’s “watch list” is a mile long, and we are always adding companies to review.  Many on our list are way outside our range, like Amazon (NASDAQ: AMZN $1,699.80) and Netflix (NASDAQ: NFLX $391.43).  Someday, they’ll be out of favor and will waltz into our buying range, but for now we are just fangirls. About 80% of our watchlist is made up of dividend-paying issuers, however, growth companies that are the nuclei to a long-term trend are always interesting. 

CEVA (NASDAQ CEVA $30.20) is a leading worldwide licensor of intellectual property related to mobile phone technology, automotive, industrial and consumer electronics. It ranks number 52 among the Fortune 100 Fastest Growing Companies and Apple Inc. (NASDAQ: AAPL $185.11) and Intel Corp. (NASDAQ: INTC $49.71) are among its major licensees. We believe CEVA is a pure play for the IoT (Internet of Things) space -- connecting billions of physical devices around the world that are now connected to the internet, collecting and sharing data. The company is moving towards what is anticipated to be a more robust revenue stream from their licensing platforms and is adding new, first-time licensees each quarter.  

CEVA came off all-time highs and has been trading around $30.  We have been adding to positions and will continue to be buyers of this little gem for the foreseeable near-term.

We plan to “Go Further” with Ford (NYSE: F $11.07) which is yielding over 5.5% and at a 6 PE, is trading at half the price/earnings ratio of the rest of the auto industry. Aside from January 2018, U.S. monthly sales have remained between 200,000 and 250,000 vehicles. Ford’s strategy of dropping the sedans and focusing on trucks and SUVs is working; Ford’s F-Series continued its momentum of sales growth and exceeded 84,600 trucks in May, marking 13 straight months of gains. Ford posted a profit of $1.7 billion in the first quarter of 2018, which was an increase of 9% compared to results in the first quarter of 2017.  There is still significant uncertainty around tariffs going forward, as well as Ford’s China strategy, but this dividend paying icon will continue to drive us (haha!).

It will be interesting to see how the tariff threat plays out over the next few months.  It falls under my idiotic header, given the “bring jobs back to the US” stance that the current administration has rallied around.  When tariffs are imposed by the government of the United States (or any government, really), companies will build (and create jobs) outside the US to get around import/export costs and hurdles.  The imposition of tariffs to protect domestic industry from foreign competition also works to increase prices for domestic consumers.  It’s common sense (and generally agreed upon by economists) that free trade increases economic output as well as income.

A recent analysis by the Tax Foundation found that $37.5 billion in tariffs would lower GDP and wages by 0.1 percent, lower employment by the equivalent of 79,000 fewer full-time jobs in the long run, and make the US tax burden less progressive.

Harley Davison (NYSE: HOG $42.08) took action and announced an initiative June 25th to move their manufacturing (for vehicles that would be sold outside the US) to – wait for it--- countries outside the US.  Bye-bye jobs.  I have included links to some of the articles below.

https://www.ft.com/content/54a6cc82-7867-11e8-8e67-1e1a0846c475

http://www.dw.com/en/harley-davidson-to-shift-production-overseas-as-eu-tariffs-bite/a-44386550

https://www.wsj.com/articles/harley-davidson-to-shift-production-overseas-to-offset-eu-tariffs-1529927301

https://www.nytimes.com/2018/06/25/business/harley-davidson-us-eu-tariffs.html

There is no gardening without humility. Nature is constantly sending even its oldest scholars to the bottom of the class for some egregious blunder. — Alfred Austin

Have a wonderful July 4th holiday, God Bless America, and see you next month!

Love,

Dani

All quotes are as of market close June 29th, 2018.

DISCLAIMER!!!! The Divine Monthly Note newsletters are impersonal and do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the newsletter is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter.

Dread, shame, disappointment, anxiety, and embarrassment are just some of the words that people associate with their credit score. I’ve asked countless individuals about their relationship with the number and so many have such a deep disdain for what it conjures up and makes them feel.

One thing I know for sure is that they are not alone. I think we’ve all been here. For me, I can remember seven years ago when even looking at my credit score gave me a visceral response.  It would make me insane that a number could make me feel like such a failure.  This gauge that someone had put on my creditworthiness meant so much more to me than just that. I gave this number so much power over me until I realized that it was JUST A NUMBER!

It wasn’t a measurement of my soul or who I really was. It was never personal.  

Our credit score is a collection of data; data that allows creditors to make decisions.  Nothing more, nothing less.

Once we shift our mindset around this we can allow ourselves the space to get to work.

So how do we get to work?  Here are some great ways to start:

1.  Check it - Create FREE accounts at websites like Credit Karma or Credit Sesame. They allow you to see your score for major credit bureaus, all open and closed accounts, credit utilization, history and more.

You can also request a free credit report at www.annualcreditreport.com. You can get one free credit report from each of the three major credit bureaus (TransUnion, Equifax, and Experian) once every 12 months, but this site doesn't provide credit scores, or more specifically FICO® Scores.

2.      Reduce the debt you have - Pay down the debt with the HIGHEST interest rate FIRST. Unless of course the interest is the same across all accounts and then you can pay the lowest balance first.

3.      Pay more than the minimums - The higher interest rates will have a substantial impact on your finances – especially if the balances are high and it would take years to pay off with only the minimum. You can use bonuses and tax returns to pay down that debt faster.

4.      Automate your bill paying - Timely payments is one of the biggest contributing factors of your score.  Note* - Don’t forget to put a minimum amount toward a savings account each month as if you were paying a credit card. Just because we are paying down debt, doesn’t mean we don’t save. 

5.      Get current and stay current – If you have delinquent payments, find out exactly what they are.  Get on a payment plan and stick to it.  This negative info won’t stay on your report forever but be patient.

6.      For more information about your score, how its calculated, fixing errors and much more go to: https://www.myfico.com/credit-education/improve-your-credit-score/.

The bottom line is that fear and avoidance will not change our situation.  The only way to get passed those insidious feelings is to face them head on.  We must also remember that it’s impossible we made it this far without making some good decisions, too! Celebrate those victories no matter how small.

Valerie Sanchez is Partner of Divine Asset Mgt. & Co-Creator of Divine WealthWise.   

These posts along with conversations with some of my own family members about their impending journeys brought me to really think about the cost of college and what possibly awaits many of them; student loan debt.

When my kids were small I didn’t even think about college and what it would cost by the time they attended.  Like many of us I didn’t save over time and SURPRISE - “all of a sudden” I had children who were about to embark on that next chapter. Crap, now what?

I don’t want to be a buzz kill, but we can count on one thing - the price of higher education is always rising. Unlike inflation or gas or the price of eggs, the cost of tuition, room, board and books will beat out its previous high year after year.

The average cost for tuition, room and board at a public, in-state college is $20,770.  A private school will set you back $46,950 per year.

So, what do we do? 

Ideally, we save over time for our children’s education:

Use a college-savings calculator to estimate how much you may need to save for your child’s education.

529 Plans – Vary by state, but here is a great starting point:  529 PLANS Q&A

UGMA/UTMA Accounts – These are custodial accounts or trusts for a minor where the custodian (very often a parent) donates money or stock or other property irrevocably (no backsies) to the trust. The donor limit each year is $14,000 and you can set up an account to automatically invest a set amount each month into a fund, dividend paying stock or other savings instrument. Taxes on income are filed under the child’s social security number.

Here are some ways to help PAY for college:

Apply for Financial Aid – (if you have a 529 plan or an UGMA/UTMA, that will affect what you are eligible for) -- "Free Application for Federal Student Aid” (FAFSA) is the starting point for all students and parents. The FAFSA4caster can help you understand your options when paying for college and you can see estimates for eligibility. There are plenty of tools to help you get started.

Keep in mind that a first-year undergraduate who is a dependent student (receiving financial support from a parent) can only take out $5500 a year. If you are an undergraduate and have no financial help, you can take out $57,500 over the course of your whole college career.

Another option is a Parent Plus Loan, but PLEASE do your homework and understand what you are getting yourself into! The interest rates are MUCH higher and the payment plans are very different than that of a student borrowers.

Apply for Grants – Pell grants, SMART grants – Visit the U.S. Dept of Education website.

Apply for Scholarships – TONS are out there, here’s a good starting point from Federal Student Aid.

Consider College Abroad – Usually less expensive.

Live at Home – As an alternative to boarding.

One thing to keep in mind if finances are tight is that attending a local college for the first two years is a feasible and much more cost-effective option. Those credits are usually transferable if and when you choose to transfer to a university.

Paying Off Student Debt:

As of 2017, the Consumer Financial Protection Bureau stated the combined total of outstanding federal and private student loan debt now exceeds $1.4 trillion – the vast majority of which are federal loans. More than 40 percent of student loan borrowers leave school owing $20,000 or more.

For those who are coming out of school with a load of debt there are options for you:

There are several repayment options available: standard, extended, graduated, income-driven and income sensitive.

There are options for deferment and forbearance, forgiveness, cancellation, and even discharge in some cases.

If you do not make your payments you risk going into default, which can have serious consequences.

I like to say that they lend with a smile and collect with a fist.

Applying and getting approved for the loans are the relatively easy part. Paying it all back is when the real fun begins. And I speak from experience.

The following link below has a breadth of information about loans and repayment that can save you lots of time and MONEY: https://studentaid.ed.gov/repay-loans

Navigating the waters of college and student loans is challenging, but it’s not impossible.  The key is to understand your options sooner rather than later. Ignorance is not bliss when it comes to student debt or any debt.

Valerie Sanchez is Partner & Co-creator of Divine WealthWise.

DISCLAIMER!!!! The Divine Monthly Blogs do not provide individualized advice or recommendations for any specific subscriber or portfolio. Divine Asset Management is not soliciting an investment. Past performance is not necessarily indicative of future results. Investing involves substantial risk. Neither the author, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the newsletter. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the author, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the newsletters prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

The commentary, analysis, opinions, advice and recommendations represent the personal and subjective views of the author and are subject to change at any time without notice. The information provided in the newsletter is obtained from sources which the author believes to be reliable. However, the author has not independently verified or otherwise investigated all such information. Neither the author, the publisher, nor any of their respective affiliates guarantee the accuracy or completeness of any such information. Neither the author, the publisher, nor any of their respective affiliates is responsible for any errors or omissions in any newsletter.

That’s exactly our relationship with credit card debt.

It starts out magical in the beginning.  This little piece of plastic gives us this freedom to buy things, we probably don’t need, whenever we want.  It’s like a freebie, but not. Because before you know it, BAM, there’s a bill in your mailbox and reality sets in. You start to see this relationship for what it is: smoke and mirrors.

The euphoria is gone, and we need an exit strategy.

The servicing of all this debt keeps us from the dreams we visualize when we look toward the Empire we are building.

I am not immune to this just because I am in finance. I had a hell of a load of debt that I carried around for a long time.  It was emotionally and mentally draining because it was a constant reminder of how much I spent in lieu of saving. 

I turned it around in 2012 and so can you!!

Here are a few things you can do:  

FACE IT:

Let’s get it all on the table —  Put together a list of each and every debt that looks like this: 

Creditor, Balance Owed, Interest Rate, Minimum Due

GOOD RULE OF THUMB: If your total debt payments are no more than 35% of your gross annual salary, your debt load is manageable.

2. CHECK IT:
Check & monitor your credit score. Your credit score is not a measurement of your soul; it’s an algorithm that tracks your credit worthiness over time. There are FREE services out there like Credit Karma & Credit Sesame.

3. ADJUST IT:

Make new habits:

• Cut up or freeze any credit cards that are not ESSENTIAL to your monthly household. Keep in mind that cancelling credit cards can have a negative impact on your credit score.

• Pay down the debt with the HIGHEST interest rate FIRST. Unless of course the interest is the same across all accounts and then you can pay the lowest balance first. Pay more than the minimums!! The higher interest rates will have a substantial impact on your finances – especially if the balances are high and it would take years to pay off with only the minimum.

• Use bonuses and tax returns to pay down that debt faster.

• Automate your bill paying and automate your savings! Make sure you are putting a minimum amount toward a savings account each month as if you were paying a credit card.  PAY YOURSELF FIRST – just because we are paying down debt, doesn’t mean we don’t save. 

At Divine, we are on a mission to help every woman (and some brave men!) become more fully engaged in their financial affairs helping to prepare them for the inevitable challenges on this journey.

I’ve said it before, our financial walk is unique, but that doesn’t mean it has to be lonely. Become part of our network and get more tips for debt management, budgeting, investing and more.

Join our exclusive network of women gathering to embrace their financial power at our WealthWise Exchange live events in New York City. Finally! A whole new approach built by women for women. Join us! Register here.