Category Archives: Personal Finance

Best Ways You Should Spend Your Free Time and Learn New Things

Best Ways You Should Spend Your Free Time and Learn New Things
There’s nothing wrong with using a bit of free time to just relax and take a break from the hustle and bustle of life. But you should be using at least some of your free time to learn new things and expand your mind. Constant self-improvement can help you move higher in your career but it can also benefit you in your day to day life as well. To help you build the habit, here are a few of the best ways you should spend your free time and learn new things.

Learn a new language during your daily commute

Studying grammar and tediously repeating a list of vocabulary words doesn’t sound fun and it isn’t. But learning a new language can be tons of fun. There will be some time you need to spend on the tedious tasks of grammar rules and memorization but a lot of it can be fun.

For example, you could set up tutoring appointments to skype with a Russian teacher. If you have skype on your phone, you can set those sessions up to happen during your daily commute. Instead of staring out of the window or frantically worrying about whether or not you turned off the stove, use that time to talk with a native speaker and practice your skills!

Get Your Finances Under Control

Spending just a few hours a week on managing your personal finances can potentially save you thousands of dollars a year. There are too many of us who just avoid facing up to the reality or put it off until our problems have spiraled out of control and can’t be ignored anymore.

Instead, sit down at least once a week and look at your money. How much is coming in? Where is it being spent? How can you change your spending habits to improve your financial position? Develop strong financial habits that can help you take control of your money instead of letting money control you.

Learn a new skill

Today, you can find hundreds of classes online. Many of them are even free. Instead of browsing through even more cat memes, why not use the internet to add a brand new skill to your set. This is a great option if you have hopes of moving up in your career.

If you’re in marketing, for example, look for a certification course in digital marketing or another niche field that is in high demand right now. Once you’ve completed all the coursework, you can combine that with your work experience to position yourself as the strongest candidate for the job you want.

So even if you aren’t thrilled about the idea of giving up your precious free time to do even more work, the potential for a better job and better pay is well worth this temporary sacrifice.

Join a casual sports team

We all know we should exercise but the thought of running on a treadmill or lifting weights just seems too tedious to bother with. If you join a team, you can get that exercise while also improving other skills like coordination, endurance, strategic thinking, and teamwork. These are all great skills to have in life and the health benefits the sport offers are an added benefit.

There are a lot of great ways to spend your free time that can be highly rewarding and even fun. You can improve yourself, explore new things, and develop new skills all while enjoying the process. If you’re still not sure what you want to do with your free time, just start by trying out a few different things that catch your interest. If you try enough things, you’ll discover your next new passion soon enough. So, start exploring your options today!

Get a $150 Referral Bonus When You Become an Uber Driver

If you’re considering becoming an Uber driver, NOW is the time!

The referral bonus for new Uber drivers has traditionally be lower, at $50 in most cities, but Uber has increased the new driver referral bonus to $150 in many cities! The bonuses vary by city, so it may be more or less in certain cities. For example, right now it’s $300 in Washington, DC, $400 in Boston, and $500 in Los Angeles!Become an Uber Driver

It’s very easy to get started, and there are only a few steps you need to take to get paid your bonus:

  • Sign up here
  • Upload all required documents to their partner dashboard
  • Get vehicle inspected
  • Complete 20 trips (this number varies by city, but should take about 3 hours of Uber driving)

When I signed up, I got paid a $50 Uber referral driver bonus after just the first Saturday night of driving for Uber. It couldn’t be easier to earn the bonus, so sign up now!

The whole process is pretty quick, and if you have any questions about the approval process, leave them below. I’m happy to answer them for you!

So what are you waiting for? Sign up to become an Uber driver here and get your $150 bonus now!

Uber Sign Up Bonus

Seeking Alpha In Fixed Income

The worldwide fixed income market allows well-informed managers to diversify and better manage risk.

By William J. Adams, Chief Investment Officer, MFS Global Fixed Income

In the late 1970s and early ’80s, the US steel industry was under tremendous pressure from importers, who could sell steel cheaper than domestic producers. Many in the industry called for protectionist measures to level the playing field. Ken Iverson, the late CEO of Nucor Steel took the opposite approach. He challenged the industry to think about the difficulties of manufacturing and shipping steel—it is heavy and hard to transport, which should give domestic producers an edge. The US steel industry shouldn’t seek protectionism, he argued, rather, it should use the challenge posed by importers to become more efficient and more competitive.

When I think about active and passive investment strategies today, I’m reminded of that story. I believe passive performs a critical service for active managers—it gives us a laser-like focus on the most important aspect of our job, which is to generate benchmark-beating returns, or alpha. As active managers, we should appreciate passive strategies because they draw our attention to the things that we can do well for our clients.

In the current environment, active managers have tremendous opportunities to help investors. Given the challenges presented by historically low interest rates and by lower expected future returns, we believe generating alpha while managing risk is critically important for advisors and their clients. Passive strategies can’t do the things that active managers seek to do – but they can help us focus on what’s important, much as steel importers did for domestic producers a generation ago.

Passive doesn’t mean “less risky”

Passive fixed income strategies have some interesting attributes, which is why asset flows into them have been strong. Passive can offer quick and easy access to markets, while also providing liquidity and low management fees. This doesn’t mean passive investing is “less risky” than active, however. When I think about the risks inherent in passive fixed income, a few characteristics have been evident with their increasing popularity since the global financial crisis.

The first is the changing composition of the largest broad market fixed income benchmarks, such as the Bloomberg Barclays US Aggregate Bond Index. US Treasury bonds have become a much larger part of the Aggregate universe over the last decade, as shown in Exhibit 1.  US Treasuries are the highest quality securities in the index, but they aren’t without risk. Prices of US government bonds are completely correlated with interest rates. When interest rates rise, US government bond prices fall. Since bond prices move in the opposite direction of yields, investors are more exposed to the potential of declining asset values with US Treasuries, than other investments.

Exhibit 1: US Treasuries have become a larger component of the US Aggregate Index

Exhibit 1

Source: Barclays POINT, May 2017.

For passive fixed income investors tracking the US Aggregate universe, the growing share of US Treasuries means that investors are less diversified, overall. They are also more exposed to higher amounts of lower-yielding investments — while at the same time taking on greater levels of interest rate risk.

Exhibits 2 and 3 illustrate the interest rate risk investors are taking in a passive approach. Duration, or interest rate risk, has risen for the US Aggregate Index over the last several years as yields have fallen, as shown in Exhibit 2. In fact, interest rate exposure of the US Aggregate index as measured by duration is at the highest point in the history of that index.

We can see how this affects the risk/return relationship for the US Aggregate universe in Exhibit 3. The yield-per-unit of interest rate risk has fallen, which means investors are getting less yield for the additional risk they have been taking —there is more downside than upside potential. Quite simply, investors have been taking on more risk and getting less in return. It is notable too that passive investors have been taking on more interest rate risk in this environment than they were during the global financial crisis in 2008.

Exhibit 2: Yields have dropped as interest rate risk has risen

Exhibit 2

Source: Barclays POINT, as of May 2017. Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value.

Exhibit 3: Investors have been getting less in return for the amount of risk they are taking

Exhibit 3
Source: Barclays POINT, as of May 2017.

Market cap weighting in fixed income means exposure to the most indebted issuers

The second risk I think about within passive fixed income is index replication and the common practice of market-capitalization weighting of fixed income benchmarks. In fixed income investing, market-capitalization weighted benchmarks have different construction implications than equity benchmarks. In a market-cap weighted equity strategy, companies are weighted by size—the largest companies have the biggest presence in an index, and are often characterized by the best performing securities. By contrast, the size and characteristics of bond indices are driven by how much debt a company or other bond issuer has along with the size of the individual security issued.

Consequently, investors seeking to replicate an index via a passive approach may be investing heavily in bonds issued by the most indebted companies or countries in the marketplace.  In a passive strategy that replicates investment grade or high-yield corporate bonds this means investors have the most exposure to companies with the highest levels of debt. This is a potentially dangerous scenario for long-term credit investors, and a risk that passive investors may not be aware of.

Broadening the opportunity set through active management

Active managers seek to mitigate credit risk, interest rate risk and debt concentration in ways that passive strategies cannot. Active managers seek to broaden the opportunity set and allocate across sectors to find better credits — while also avoiding the poor credits. Of course, active management can be risky too. It is up to a manager to make decisions about creditworthiness, where we are in a business cycle, in addition to inflation implications, future growth prospects and the direction of interest rates, among others. At MFS®, we believe that skilled active investment management within fixed income is a powerful way to generate alpha and help protect capital for our clients on a long-term basis. We are proponents of a benchmark-aware approach to fixed income investing that provides important risk management discipline while seeking to address some of the issues associated with passively tracking an index.

More fixed income insights from MFS experts at MFS.com/FixedIncome

The views expressed in this commentary are those of William J. Adams and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any other MFS investment product. 38319.1