Why Investors Should Lower Expectations For Making Money on Stocks

Vanguard, others predict bonds will rival single-digit returns on stocks; best bets are overseas.The era of big returns on stocks is over. It’s time for investors to recalibrate their expectations. That’s what many Wall Street firms and advisors are telling their clients.

Look for lower returns from U.S. stocks during the next decade compared with what has historically been the case, and expect U.S. bond returns that are on a par with equities. The best returns are projected for overseas stocks and bonds. Returns from most asset classes are projected to be positive.

“The next 10 years will be different than the last 10 years,” says Jim Masturzo, partner and chief investment officer of multi-asset strategies at Newport Beach, California-based Research Affiliates. “It will be more normal.”

Expect Single-Digit U.S. Stock Returns

With inflation at the highest levels in 40 years, against a backdrop of rising interest rates and a decline in valuations, long-term returns for U.S. equities are projected to be in the low- to mid single-digit territory. That’s compared with a historical yearly average of 12%-13% before inflation, and well below the nearly 16% average annual returns of the past decade.

This is clearly a whole new world to which investors are unaccustomed after decades of low inflation and the near-zero interest rates of the past 10 years. “Returns will be more muted compared with history and especially the past two years, especially for equities,” says Roger Aliaga-Diaz, head of portfolio construction and chief Americas economist at The Vanguard Group.

Bond Returns to Rival Stocks

On the brighter side, bonds are seen giving equities a run for their money, as fixed-income returns are projected to rival those of stocks.

“Bond market returns could equal equity returns with less risk,” says Joseph Carson, economic consultant and former chief economist at AllianceBernstein. Returns on stocks in the next decade will appear “minuscule” at 4%-5%, he says, mainly because “equity returns for three of the last four decades were far above average.”

Stocks benefited from declining inflation and lower bond yields in the 1980s. Stable inflation and expectations of “a new era of long cycles of growth and earnings” pushed stock returns higher in the 1990s. And “in the decade ending 2020 it was zero rates and inflated market multiples” that led to outsize gains in stocks, says Carson.

A line chart showing rolling annualized 10-year returns between 1971 and 2021.

The Lost Decade

The outlier decade proved to be 2000 through 2009, a period that included the terrorist attacks of Sept. 11, 2001, as well as two punishing recessions and accompanying bear markets that dragged down returns and set the stage for easy money conditions. In what became known as the Lost Decade, stocks delivered a negative annualized total return of 0.95%, the only decade outside the Great Depression in which total returns for the period were negative.

At the start of the decade, a bubble in technology, telecommunications, and media stocks burst, resulting in a recession and the bear market of 2000-02, when stocks fell nearly 50%.

Not long afterward came the global financial crisis of 2007-09, precipitated by a housing meltdown brought about by banks and mortgage companies extending credit and making nontraditional interest-only and adjustable-rate loans to high-risk borrowers that were then packaged into mortgage-backed securities and collateralized debt obligations and sold as stable and safe investments.

With home prices skyrocketing, the Federal Reserve started raising rates to cool the market, which prompted a wave of mortgage defaults and a subsequent liquidity crisis. The result: the deepest and longest-lasting recession since World War II. Stocks fell about 55%. The unemployment rate more than doubled.

The interventions to rescue the financial system and the economy during the crisis introduced ultraloose monetary policies that were reintroduced more recently during the pandemic crisis of 2020, creating a boom in asset prices and driving inflation to the highest levels since the 1980s. Aiming to rein in spiraling prices, the Fed has boosted the federal-funds rate six times this year at an aggressive pace and plans to continue until it sees clear signs that inflation is abating and heading back to its target rate of 2% from more than 8%.

That’s driven up yields on bonds, driving their prices lower, and sent stocks sliding. No one expects inflation and interest rates to stay at current levels over the next 10 years, but they will be at higher levels than has been the case in the past decade. And that will affect valuations.

The Case for Bonds

“Definitely, the case for bonds in the portfolio is coming back,” says Aliaga-Diaz of Vanguard. “Higher yields make the case for bonds stronger.” Over the next 10 years, Vanguard is forecasting annualized nominal returns, that is before adjusting for inflation, on U.S. equities of 4.7%-6.7% and U.S. bonds at 4.1%-5.1%.

Research Affiliates projects annualized nominal returns on U.S. equities of 2.3% over the next decade. Its forecast for U.S. bonds is 5.1% on an annualized nominal basis. Morningstar Investment Management projects U.S. stocks will deliver 5.5% in annualized nominal returns and 4.8% for U.S. bonds.

A grouped bar chart showing forecasts for annualized asset class returns over the next 10 yrs from Morningstar, Vanguard, and Research Affiliates.

Of course, stock and bond returns will vary from year to year, but these long-term annualized forecasts provide a gauge that helps firms construct diversified asset-allocation portfolios that can be tailored to optimize returns for different risk tolerances.

Investment firms also calculate these projections in real terms, which means they factor inflation into their models in addition to other variables such as valuations, earnings growth estimates, and dividend yields to obtain a more accurate assessment of potential total returns. Still, it has become standard practice for firms to issue forecasts in nominal terms because that is what is reflected in client accounts.

As Vanguard’s Aliaga-Diaz explains: “If you start with a $1,000 investment in 2022 and your portfolio returns 10% in nominal terms in 2023, your account will be $1,100. In real terms, your account would be worth $1,080 measured in 2022 dollars.”

Many investors may be gun-shy about embracing bonds, burned by steep double-digit losses this year in their portfolios at a time when stocks fell into a bear market.

The popular investment strategy of structuring portfolios with a mix of 60% stocks and 40% bonds to achieve attractive risk-adjusted returns with lower volatility, the so-called 60/40 portfolio, failed to provide the diversification and balance that made it a tried-and-true investment approach for so long, delivering 10.6% average annual returns for the past 40 years.

The Morningstar US Moderate Target Allocation Index, which serves as a benchmark for the 60/40 strategy, is down 17.53% this year, while the Morningstar US Market Index is down more than 21%. But what worked so well for so long will work again, say strategists.

“There is a fear and concern that what we saw this year with stocks and bonds coming down together represents a new regime,” says Aliaga-Diaz. “But we will get back to the normal relationship.”

That view has been echoed by others, including Morgan Stanley’s chief cross-asset strategist Andrew Sheets, who has forecast a 10-year annualized return of 6.2% for the strategy. “While we do expect the 60/40 portfolio to deliver lower risk-adjusted returns compared with those over the last four decades, that doesn’t mean it is broken,” he wrote in a report issued this summer.

Starting Points Matter

A key driver of these forecasts comes down to prices: Lower prices point to higher implied returns. “Starting prices matter,” says Philip Straehl, global head of research and investment management at Morningstar Investment Management. “U.S. valuations have improved dramatically in the last 12 months. There’s been significant repricing in the U.S. equity markets.”

That’s even more true internationally, where stocks have had the added burden of coping with the strong U.S. dollar and weakened local currencies on top of inflation and rising rates. Strategists say developed and emerging markets represent the best opportunities for the highest returns.

Morningstar Investment Management forecasts stocks in developed international countries will return 9.4% annualized over the next decade. For emerging markets, the expectations are even rosier at 11.8%. Vanguard’s outlook for stocks in developed international countries is for annualized total returns of 7.2%-9.2%, and 7%-9% in emerging-markets equities. Research Affiliates is forecasting 13.1% returns annualized for emerging markets over the next 10 years and 12.6% annualized for developed international markets.

“Our recommendation would be to look outside the U.S.,” says John Thorndike, co-head of asset allocation at Boston-based investment manager GMO, which bases its outlook on a seven-year investing time frame. “If you are going to take equity risk, take the bulk of it in non-U.S. value stocks. We think you should take the risk. These stocks are attractive.”

By:

Source: Why Investors Should Lower Expectations for Making Money on Stocks | Morningstar

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The Looming $62 Billion Crypto Contagion

Illustration by Gracelynn Wan for Forbes

In 2017, cryptocurrency exchange Binance created the first of a new kind of blockchain-minted digital asset: BNB coin, designed to reward customer behavior such as trading or referring friends to its own platform. “A model for building a scalable, and impactful cryptocurrency business,” heralded CoinDesk editor Pete Rizzo in 2019, after Binance moved the coin to its own proprietary blockchain. “Unbelievable brilliance.”

Today, the only unbelievable thing about the whole cloth of crypto inventions known as exchange tokens, like BNB, is that they have inflated to tens of billions of dollars in value and in large part have become the foundation upon which the fast-growing digital-assets markets rest.

The weakest link in former billionaire Sam Bankman-Fried’s crypto empire was FTX’s own exchange token, which traded under the symbol FTT. According to Reuters, Bankman-Fried had lent his trading company, Alameda, billions of dollars in FTX customer funds, collateralized by these FTT tokens, which were essentially invented as a way to offer trading discounts and other perks.

“The way that FTT works,” said Bankman-Fried in an August 2022 interview with Forbes, “It is not that you get free FTT for doing things. The way to think about it is that you get free shit for having FTT. So, there’s a bunch of doo-hickeys.”

At the peak in 2021 FTT had a market value of $9.6 billion, but unlike a common stock, which represents legal ownership in the assets of a corporation, FTT does not represent any equity ownership in the FTX company. If FTT had any intrinsic value, it was in the form of discounts that FTX customers using these tokens could get trading on the exchange–as much as 60% for active traders.

You can think of these exchange tokens as being akin to loyalty or reward points you might get as a frequent customer of Starbucks or the UnitedMiles by flying on that airline. They have value, but it’s unlikely that a bank would allow you to use them as collateral if you wanted to purchase a home.

However, in the highly speculative and often bizarre world of digital assets, these loyalty tokens trade on numerous crypto exchanges just as stocks do on the New York Stock Exchange, and FTX founder Sam Bankman-Fried reportedly used them as collateral for the loans his company made. Up until a week ago FTT traded at $26 and had a market capitalization of $3.5 billion.

But after Bankman-Fried’s rival Changpeng Zhao, Binance’s billionaire founder, went on Twitter to say he was planning to sell over $500 million of FTT, it sparked the crypto equivalent of a bank run. Today FTT sells for $2.70, and given FTX’s recent bankruptcy filing, it is likely headed to zero.

But the story of exchange tokens in cryptoland is far from over. Forbes counts more than 16 global crypto and DeFi (decentralized finance) exchanges currently using these tokens for a combined market value of no less than $62 billion.

In fact, so-called exchange tokens are an important underpinning to the crypto exchange ecosystem because they are effective in creating customer loyalty–especially when token prices are rising. Virtually all such tokens offer holders exchange-specific perks such as trading fee discounts, preferential margin loan terms, enhanced rewards for staking (lending) and exchange-branded cashback Visa cards.

Exchange tokens are also awarded to customers that refer new traders to a platform, in a system similar to multi-level marketing organizations like Amway. Exchange tokens function as the fuel for crypto’s self-fulfilling bubbles.

Binance–the largest crypto exchange in the world–has its own token, BNB, which by itself has a market capitalization of $45.9 billion, though it does not represent any equity in Changpeng Zhao’s company nor has it been registered as a security with the U.S. SEC.

Anyone who opens an account on Binance and starts trading can buy or earn these BNB tokens, which offer 25% discounts on spot and margin transaction fees and 10% on futures. If you refer friends, you can get up to 40% commission every time they make a trade on Binance. Also, because Binance has created its own blockchain that mints BNB coins, you can use BNB to pay for goods and services, book airfare and hotels on sites like Travala for instance, participate in exclusive token sales and even earn free tokens by completing surveys and tasks.

You can also put BNB to use by staking, earn a flexible percentage yield by depositing it on BNB Chain-based projects and apply for crypto loans. Notably, these digital assets are also essential for anyone who want to use Binance’s decentralized exchange (DEX), which theoretically can’t be shut down by U.S. regulators.

Unlike bitcoin, which is mined every ten minutes, all of the 350 million FTT tokens that would ever exist were created in what is known as a pre-mine. “There will never be any more minted,” said Bankman-Fried recently. In fact, over a period of about three months starting around June of 2019 almost all of FTT’s premined tokens were sold prior to getting listed on crypto exchanges. “Effectively, all of the FTT tokens were owned by a collection of people and entities,” said Bankman-Fried.

In order to create scarcity and essentially bolster the value of its exchange tokens, FTX and Binance conduct what are known as token burns. Periodically both exchanges send tokens to irretrievable addresses reducing the float, similarly to a share buyback, and thus increasing the value of the exchange tokens outstanding. Since 2019 FTX has burned 21 million FTT tokens.

In total, Binance has burned more than 42 million BNB, which would be worth $11.6 billion at today’s prices. CZ has said Binance doesn’t borrow money and has never used BNB as collateral on loans. He recently began advocating that exchanges undergo a “proof” of funds.

In terms of governance, exchange tokens, like loyalty reward programs, are completely under the control of the entity that issues or redeems them, even if they profess to stick to pre-arranged schedules for issuance or burning. DeFi tokens, by contrast, claim to offer holders the ability to propose and vote on platform changes. But in reality, many large DeFi platforms concentrate governance in the hands of big investors and founding teams.

Additionally, just as FTT did not give holders stakes in FTX, purchasing a DeFi token does not necessarily convey ownership rights into the underlying platform. The table below offers details on some 16 different cryptocurrency and DeFi-platform exchange tokens representing more than $60 billion in market value.

Conspicuously absent are Coinbase and Kraken, which are U.S.-based and have avoided issuing exchange tokens, presumably because they would likely be deemed securities by the SEC. All of the tokens listed trade on exchanges daily like stocks–most of them have plummeted in value in the last year—but not a single one offers any ownership in the companies that they are affiliated with. Buyer beware.

TOKEN VALUES

The 16 crypto and DeFi exchanges below created exchange tokens to attract and retain customers. Though they trade like stocks and have a value of over $60 billion, none represent ownership in their affiliated platforms.

I report on all things crypto and oversee the Forbes Crypto Confidential newsletter and the annual Forbes Blockchain 50 list which features billion-dollar leaders in distributed ledger

I write about digital assets trends and am a leading creator of the Forbes Digital Assets tools and functionality our viewers require. I support the generation of relevant, curated investor

Source: The Looming $62 Billion Crypto Contagion

.

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The Fall of FTX

Banks Are Giving The Ultra-Rich Cheap Loans To Fund Their Lifestyles

Getty Images

Billionaire hedge fund manager Alan Howard paid $59 million for a Manhattan townhouse in March. Just two months later he obtained a $30 million mortgage from Citigroup Inc.

Denis Sverdlov, worth $6.1 billion thanks to his shares in electric-vehicle maker Arrival, recently pledged part of that stake for a line of credit from the same bank. For Edgar and Clarissa Bronfman the loan collateral is paintings by Damien Hirst and Diego Rivera, among others. Philippe Laffont, meanwhile, pledged stakes in a dozen funds at his Coatue Management for a credit line at JPMorgan Chase & Co.

In the realm of personal finance, debt is largely viewed as a necessary evil, one that should be kept to a minimum. But with interest rates at record lows and many assets appreciating in value, it’s one of the most important pieces of the billionaire toolkit — and one of the hottest parts of private banking.

Thanks to the Bronfmans, Howards and Sverdlovs of the world, the biggest U.S. investment banks reported a sizable jump in the value of loans they’ve extended to their richest clients, driven mainly by demand for asset-backed debt.

Morgan Stanley’s tailored and securities-based lending portfolio approached $76 billion last quarter, a 43% increase from a year earlier. Bank of America Corp. reported a $67 billion balance of such loans, up more than 20% year-over-year, while loans at Citigroup’s private bank — including but not limited to securities-backed loans — rose 17%. Appetite for such credit was the primary driver of the 21% bump in average loans at JPMorgan’s asset- and wealth-management division. And at UBS Group AG, U.S. securities-based lending rose by $4 billion.

Borrowing Binge

“It’s a real business winner for the banks,” said Robert Weeber, chief executive officer of wealth-management firm Tiedemann Constantia, adding his clients have recently been offered the opportunity to borrow against real estate, security portfolios and even single-stock holdings.

Spokespeople for Howard, Arrival and Laffont declined to comment, while the Bronfmans didn’t respond to a request for comment.

Rock-bottom interest rates have fueled the biggest borrowing binge on record and even billionaires with enough cash to fill a swimming pool are loathe to sit it out.

And for good reason. With assets both public and private at historically lofty valuations, shareholders are hesitant to cash out and miss higher heights. Appian Corp. co-founder Matthew Calkins has pledged a chunk of his roughly $3.5 billion stake in the software company — whose shares have risen about 145% in the past year — for a loan.

“Families with wealth of $100 million or more can borrow at less than 1%,” said Dan Gimbel, principal at NEPC Private Wealth. “For their lifestyle, there may be things they want to purchase — a car or a boat or even a small business — and they may turn to that line of credit for those types of things rather than take money from the portfolio as they want that to be fully invested.”

Yachts and private jets have been especially popular buys in the past year, according to wealth managers, one of whom described it as borrowing to buy social distance.

‘Significant Benefit’

Loans also allow the ultra-wealthy to avoid the hit of capital gains taxes at a time when valuations are high and rates are poised to increase, perhaps even almost double. Postponing tax is a “significant benefit” for portfolios concentrated and diversified alike, according to Michael Farrell, managing director for SEI Private Wealth Management.

Critics say such loans are just one more wedge in America’s ever-widening wealth gap. “Asset-backed loans are one of the principal tools that the ultra-wealthy are using to game their tax obligations down to zero,” said Chuck Collins, director of the Program on Inequality and the Common Good at the Institute for Policy Studies.

While using public equities as collateral is the most common tactic for banks loaning to the merely affluent, clients further up the wealth scale usually have a bevy of possessions they can feasibly pledge against, such as mansions, planes and even more esoteric collectibles, like watches and classic cars.

One big advantage for the wealthy borrowing now is the possibility that rates will ultimately rise and they can lock in low borrowing costs for decades. Some private banks offer mortgages on homes for as long as 20 years with fixed interest rates as low as 1% for the period.

The wealthy can also hedge against higher borrowing costs for a fraction of their pledged assets’ value, according to Ali Jamal, the founder of multifamily office Azura.

“With ultra-high-net worth clients, you’re often thinking about the next generation,” said Jamal, a former Julius Baer Group Ltd. managing director. “If you have a son or a daughter and you know they want to live one day in Milan, St. Moritz or Paris, you can now secure a future home for them and the bank is fixing your interest rate for as long as two decades.”

Risks Involved

Securities-based lending does comes with risks for the bank and the borrower. If asset values plunge, borrowers may have to cough up cash to meet margin calls. Banks prize their relationships with their richest clients, but foundered loans are both costly and humiliating.

Ask JPMorgan. The bank helped arrange a $500 million credit facility for WeWork founder Adam Neumann, pledged against the value of his stock, according to the Wall Street Journal. As the value of the co-working startup imploded, Softbank Group Corp. had to swoop in to help Neumann repay the loans and avert a significant loss for the bank. A spokesperson for JPMorgan declined to comment.

Still, for the banks it’s a risk worth taking. Asked about securities-backed loans on last week’s earnings call, Morgan Stanley Chief Financial Officer Sharon Yeshaya said they’d “historically seen minimal losses.” Among the bank’s past clients is Elon Musk, who turned to them for $61 million in mortgages on five California properties in 2019, and who also has Tesla Inc. shares worth billions pledged to secure loans.

“As James [Gorman] has always said, it’s a product in which you lend wealthy clients their money back,” Yeshaya said, referring to Morgan Stanley’s chief executive officer. “And this is something that is resonating.”

By: Devon Pendleton and Ben Stupples (Bloomberg)

Source: Banks Are Giving the Ultra-Rich Cheap Loans to Fund Their Lifestyles | Wealth Management

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New bank loans, mortgage rates rise Financial Mirror

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QuizMatic   https://jvz6.com/c/202927/387116/
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RSI SEO   https://jvz6.com/c/202927/384381/
Scriptdio   https://jvz4.com/c/202927/385387/
Seniors Income    https://jvz2.com/c/202927/383888/
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ShopABot   https://jvz2.com/c/202927/291955
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SocialAgency360   https://jvz1.com/c/202927/385357/
SociCake  https://jvz2.com/c/202927/321987
Socifeed   https://jvz6.com/c/202927/375706
SociJam  https://jvz2.com/c/202927/309649
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Steven Alvey’s   https://jvz2.com/c/202927/351754
Stoodaio   https://jvz1.com/c/202927/372094
Storymate    https://jvz3.com/c/202927/320972
StoryReel   https://jvz3.com/c/202927/387813/
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Studioninja   https://jvz1.com/c/202927/374965
Sunday Freebie  https://jvz1.com/c/202927/267113/
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Survai    https://jvz8.com/c/202927/380933/
Syndranker    https://jvz3.com/c/202927/378143/
Talkingfaces   https://jvz3.com/c/202927/375550
The Internet Marketing   https://jvz2.com/c/202927/289944
Tonai Voice Content   https://jvz8.com/c/202927/383119/
Toon Video Maker    https://jvz2.com/c/202927/357201
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TubePal   https://jvz6.com/c/202927/379863/
Tubeserp   https://jvz3.com/c/202927/370472
TubeTargeter  https://jvz6.com/c/202927/377211
TuneMingo    https://jvz3.com/c/202927/386556/
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Ultrafunnels A.I   https://jvz2.com/c/202927/381129/
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Viddeyo    https://jvz6.com/c/202927/382326/
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VidMingo   https://jvz6.com/c/202927/378359/
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Vocalic  https://jvz2.com/c/202927/383848/
VoiceBuddy    https://jvz1.com/c/202927/342854
WebCop  https://jvz4.com/c/202927/378683/
Webinarkit   https://jvz3.com/c/202927/383937/
Webprimo   https://jvz1.com/c/202927/379455/
WordPress Mastery   https://jvz1.com/c/202927/386249/
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WP GDPR    https://jvz8.com/c/202927/299907
WP Simulator    https://jvz3.com/c/202927/46987/
Writer Arc   https://jvz1.com/c/202927/386602/
writing job   https://jvz8.com/c/202927/213027
XBrain Forex   https://jvz3.com/c/202927/372305/
XFUNNELS   https://jvz2.com/c/202927/310335
Xinemax  https://jvz1.com/c/202927/381749/
YoDrive   https://jvz2.com/c/202927/384700/
YoSeller   https://jvz4.com/c/202927/387544/
Your 3DPal   https://jvz2.com/c/202927/381685/
YTSuite   https://jvzoo.com/c/202927/381179
Zappable   https://jvz3.com/c/202927/367328/

The 6 Biggest Money Secrets Most Rich People Won’t Tell You

Life would be a whole lot easier if someone would just Venmo us $1 million, but unfortunately the chance of that happening is, well, probably zero. (Venmo doesn’t allow transactions that large anyway.)

But even though our chances of becoming a millionaire are slim, we can still manage our money like one. No, we’re not going to tell you how to buy hundreds of shares of Apple stock. Or how to pick out the perfect yacht.

These are simple money moves any normal, non-millionaire person can make today. Each secret can get you closer to achieving your big goals.

Take a look:

1. You Can Cancel Your Car Insurance

Did you know you can save some serious money just by switching car insurance companies?

Its true — rates are at historic lows, and you could be paying way less for the same coverage. All you need to do is look for it.

But don’t waste your time hopping around to different insurance companies. Use a website called EverQuote to see all your options at once.

EverQuote is the largest online marketplace for insurance in the US, so you’ll get the top options from more than 175 different carriers handed right to you.

Take a couple of minutes to answer some questions about yourself and your driving record. With this information, EverQuote will be able to give you the top recommendations for car insurance. In just a few minutes, you could save up to $610 a year.

2. You Can Stop Paying Your Credit Card Company

If you have credit card debt, you know. The anxiety, the interest rates, the fear you’re never going to escape…

And the truth is, your credit card company doesn’t really care. It’s just getting rich by ripping you off with high interest rates — some up to 36%. But a website called Fiona could help you pay off that bill as soon as tomorrow.

Here’s how it works: Fiona can match you with a low-interest loan you can use to pay off every credit card balance you have. The benefit? You’re left with just one bill to pay every month, and because the interest rate is so much lower, you can get out of debt so much faster. Plus, no credit card payment this month.

If your credit score is at least 620, Fiona can help you borrow up to $250,000 (no collateral needed) with fixed rates starting at 2.49% and terms from 6 to 144 months.

Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.

All that credit card debt — and the anxiety that comes with it — could be gone by tomorrow.

3. This App Will Pay Off Your Credit Card Debt

Credit card debt is the worst. It’s the most expensive kind of debt you can have.

First, you fall behind on your payments. It can happen to anybody. Next thing you know, the credit card companies are gouging you — charging you more than 20% interest on your balance.

But an app called Tally can pay off your credit card debt. Like, all of it. Here’s how it works: Tally gives you a line of credit with a lower interest rate (rates start as low as 7.9%) that you can use to pay off your high-interest credit card debt. Then you’ll just have one monthly payment — and you’ll save tons of money on interest.

If you qualify and have a FICO score of 580 or higher, you can get a line of credit from $2,000 to $25,000 pretty much immediately.

It’s easy to get started, and it won’t affect your credit score just to check your rates. See how much money you could save.

4. Get Paid up to $80/Month — Just for Sharing Your Opinion

Taking surveys might not sound like the best way to make money, but if you’re just vegging out on the couch — or pretending to be interested in your partner’s new favorite show — why not click a couple buttons? It could earn you up to $80 a month. Seriously.

There are a bunch of paid survey sites out there, but one of the best we’ve found is Survey Junkie.

They’ll ask you questions about things like, what kind of laundry detergent you use, or if you prefer Pepsi or Coke. You get points for answering, and many people accumulate enough points to request a check within a few hours.

More than 10 million people already use Survey Junkie, and it has 4.5/5 stars on TrustPilot.  Give it a try by visiting Survey Junkie and clicking the “Join Now” button. It’s free.

5. See if You Could Lower Your Car Payment by Hundreds a Year

You know you can refinance your house to save money on your monthly mortgage payment — but did you know you can refinance your car, too?

It’s not a money-saving tactic people talk a lot about, but it could save you a ton of money. A website called Upstart is helping borrowers save an average of $1,025 a year on their car payments. That’s about $4,800 back in their pockets over the lifetime of their loan.

There are no origination fees, and you only need a minimum FICO score of 510. You don’t even need to enter your car’s VIN, and you won’t get any spam calls.

And with an APR range of 2.20% to 29.99% Upstart is saving customers over 17% per month when they refinance. Upstart has helped borrowers save more than $20 million on their car payments in the past year alone*.

Ready to start saving? It takes just minutes to check your rate and see how much you could save

6. Scared to Invest? This App Gives You Between $2.50 and $200 in Free Stock

If you feel like you don’t have enough money to start investing, you’re not alone. But guess what? You really don’t need that much — and you can even get free stocks (worth $2.50 to $200!) if you know where to look.

Whether you’ve got $5, $100 or $800 to spare, you can start investing with Robinhood.

Yeah, you’ve probably heard of Robinhood. Both investing beginners and pros love it because it doesn’t charge commission fees, and you can buy and sell stocks for free — no limits. Plus, it’s super easy to use.

What’s best? When you download the app and fund your account (it takes no more than a few minutes), Robinhood drops a share of free stock into your account. It’s random, though, so that stock could be worth anywhere from $2.50 to $200 — a nice boost to help you build your investments.

Source: The 6 Biggest Money Secrets Most Rich People Won’t Tell You – The Penny Hoarder

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How to Create an Internal Company Newsletter

When you’ve got news to share with your employees, team, or executives, an internal company newsletter can be the most effective way of reaching everyone. An internal newsletter could contain an update about the upcoming holiday party for the entire organization or information around the company’s quarterly results for the executive team exclusively.

And, you could have both! There are many different ways to use internal company newsletters, and you can have more than one for different teams, offices, or departments. The approach you take depends on the objectives of your marketing strategy.

We’ll explore internal newsletter examples a bit further down, but before we dive into the concept of internal company newsletters, let’s briefly answer the following question: What is a newsletter?

What Is a Newsletter?

To put it simply: A newsletter is either an electronic or printed report covering various activities of a company or business. It is sent to its customers, community members, or other subscribers and consists of interesting content, promotions, announcements. A newsletter helps to increase traffic and serves as an information source.

What Is an Internal Newsletter?

Just like a normal newsletter, an internal newsletter is an electronic or printed report sent out on a regular basis to update subscribers. For internal newsletters these subscribers are internal stakeholders such as employees, shareholders, the board, management, different departments, etc.

Oftentimes, organizations have an external-facing newsletter but lack any type of internal company newsletters. And that’s the problem we are trying to solve with this blog (and our newsletter management platform). One reason why organizations forgo putting together these weekly, monthly, or quarterly email updates is that there’s a myth that they aren’t read by employees, however, the data shows otherwise.

What Is the Purpose of an Internal Company Newsletter?

Besides being a way to inform employees about the latest company updates, an employee newsletter can also be a fun way of sharing, explaining, and reinforcing your company culture.

At first, a company newsletter may seem insignificant in the day-to-day operations of a company, but it does play a role in shaping the workplace environment.

Some argue internal company newsletters are time-consuming and don’t offer enough ROI. Well, we have some stats that say differently. According to Retrospectively, Inc., employee productivity increases anywhere from 20-25% when employees feel connected to the company.

However, only 13% of employees reported participating in their intranet daily—31% said they never do.

So, although most PR & Communication teams are focused on getting the word out there, it’s just as important for these teams to spread the word internally — often they also involve the HR department to provide additional internal newsletter ideas. A company newsletter (corporate newsletter) is a critical part of your email marketing strategy that can help keep employee engagement and communication levels high.

When embarking on an employee newsletter strategy, remember that the values you want your company to reflect should be the values underlying your internal newsletter content. In this blog, we will cover internal newsletter ideas, internal newsletter names, company newsletter examples, and templates to use for your internal employee newsletter, so when you’re done reading, you’ll be a pro.

14 Internal Newsletter Ideas

  1. Share Your Company’s Successes: Make sure everyone knows what the PR and marketing teams are up to. In your internal company newsletter, you want to share your wins, notify people about your latest content, and get everyone in sync on your company’s top messages so that they can communicate and increase your reach.Want to make things easy? Our internal newsletter template which is part of our media intelligence suite will allow you to curate a hand-selected feed of articles to be shared via a branded email newsletter.
  2. Promote Social Advocacy: You spend a lot of time on creating social media content—but chances are your co-workers and employees aren’t all following your branded social media profiles. An internal company newsletter can help spread your social message and make sure everyone is aware and motivated to help communicate and promote it. Plus, if you run out of ideas of what to include in a company newsletter, add a few examples of people mentioning you on social media, it may incentivize others to start creating similar UGC. Let them be your brand’s #1 fans.
  3. Share What’s Going on in the Competitive Landscape: Use an employee newsletter as an opportunity to cover industry news, trends, and insights. No matter how innovative a company is, competitors are a healthy part of any industry. That’s why highlighting the achievements, as well as the missteps of close competitors, can give colleagues insight into how to do their jobs. Using a media monitoring solution, you can benchmark how well you’re doing in comparison to your top competitors. By sharing these metrics, news alerts, or industry updates, you’re giving colleagues insights that can inform future campaigns or sales pitches.
  4. Boost Your Branding: A company newsletter can help you reinforce brand voice, style, imagery, and personality. Are you seeing fellow employees misrepresenting the brand? Quick do’s and don’ts can go a long way in keeping employees on their toes. Plus, linking out to your style guide and templates.
  5. Highlight Evergreen Content: The internal comms and content marketing team are creating great content. And your sales team could use the blogs, webinars, or case stories as a great excuse for touching base with key prospects…if only they knew about it. Use your corporate newsletter to encourage them to communicate about the thought leadership you’ve worked so hard on.
  6. Bring in the Voice of Your Customers: Highlight customer case studies and bring in suggestions for new ones. Case studies are a great sales tool, and an internal company newsletter can highlight new and relevant clients that are using your product or services. You could also include any comments or reviews left by customers that you think your employees should know about. There’s no better advocate for the brand than happy customers!
  7. Complement Existing Company Collateral and Resources: Your email employee newsletter can be a weekly, monthly, or quarterly examination of what the company finds important. It can be a platform to welcome new employees, announce new product versions, highlight relevant assets, and ask for input on a rebranding. In this way, it reinforces the messages and information in all the other content that your company produces. Use it to collect feedback and insights.
  8. Employee Engagement and Advocacy: Communication is key. Turn a colleague into a hero. Calling out successful collaboration helps those involved feel appreciated and encourages more sharing of ideas and resources, which boosts employee engagement.
  9. Reinforce Transparency As a Mindset: Having a company newsletter opens up a line of communication that doesn’t clog up the email inbox. As comms pros, we know that the best way to start a conversation is to provide the subject and the platform. At the very least, this newsletter can be the jumping-off point to discuss company values and employee culture.
  10. Share News Updates:  If you introduce a newsletter right with a predictable cadence, it can be an invaluable mouthpiece for stakeholders throughout the organization. The resulting content can be a 360-degree view of what is going on in an organization. The material can be as diverse as a recap of the CEO’s recent “Ask Me Anything” (AMA) session; the sales team’s exceeding their monthly sales quotas; issues with a recent product launch, communication from a Vice-President, or highlights from the social media team.
  11. Provide the Data Analytics Behind the Successes of Your Efforts: Data is how a segment of your colleagues track success, so in addition to sharing media coverage, you can share easy to read graphs and charts that track monthly media coverage, social media mentions, sentiment, competitive benchmarks, etc…. It’s an easy way to benchmark the work you do for those more interested in volume than they are the engagement aspect of KPIs.
  12. Earned Media Coverage: If you receive hard-earned coverage in a media outlet, whether it’s the Washington Post or a niche publication that’s important to your industry, wouldn’t you want to shout it from the mountaintop? Well, here’s the perfect venue for doing just that. Tag the story in your media monitoring platform and create a company newsletter using the built-in functionality, don’t forget to include additional insight. Your brand mentions mean as much to your colleagues as they do to you, so share that article that has a link to your product, quotes your CEO about the state of your industry, or shows how your company is making strides with its offerings. Your colleagues want to know how the rest of the world perceives the company. And as a bonus, summarize your coverage analytics to show how your reach and share of voice have grown, so they can take pride in the momentum you’ve built.
  13. Include Industry News, Trends, and Insights: No matter how innovative a company is, competitors are a healthy part of any industry. That’s why highlighting the achievements, as well as the missteps of close competitors in the form of an internal company newsletter, can give employees insight into how to do their jobs. With a media monitoring solution in place, a company can monitor their own, as well as competitors’ keywords to see how well their social media accounts are leading to engagement. From this info, they can perform a competitive analysis to share with the entire organization.
  14. Highlight Key Partners and Customers: Use the employee newsletter as an opportunity to highlight key partners and customers and what their public media coverage is. The newsletter can show how your key partners and customers are using your products and services in interesting ways. This can be useful for sales, biz dev, and customer service teams as they reach out to new partners or assist existing partners and clients. It can also help UX/CX and engineering teams as they understand how products and services are actually used by partners and clients.

Best Internal Company Newsletters [Examples]

Now that we know what to put in a company newsletter, let’s take a look at an example for some inspiration. We took an informative and concept-driven approach and mocked it up below. This internal newsletter comes directly from the marketing team to highlight their accomplishments, upcoming events, resources, and more.Screenshot of the internal newsletter of Meltwater as part of the best internal newsletter examples and the best internal newsletter templates for your company

But what is the best format for a newsletter?

An internal company newsletter truly is just another email in our inbox, right? So the design element is crucial to whether your readers are encouraged to click through or not. And today, you can use our internal newsletter template or customize your own using a service like Meltwater.

Here are some more internal newsletter templates and concrete internal newsletter examples we think are k-i-l-l-i-n-g it that are worth checking out.

Internal Newsletter Example #1:

Meltwater’s newsletters & website newsfeeds allow you to easily share media coverage in a customized fashion, that way, you can:

  • Share results & inform stakeholders—The employee newsletter will allow you to curate a hand-selected feed of articles to be shared via a branded email newsletter & the newsfeed product allows you to showcase positive news or social media content on your website, adding third-party validation to your own content.
  • Promote your hard work—Use the company newsletters to share company mentions, provide commentary on important stories, and compile market and competitor briefs.
  • Showcase news and social mentions—Promote relevant news and any social media mentions. The newsfeed allows you to stream customer testimonials and feature industry insights.

Meltwater newsletter options

Meltwater offers a couple of ways to build newsletters. Your team can either cherry-pick the content featured, or you can lean on Meltwater’s analyst team to do so on your behalf.

Not sure which option to go for? If newsletters are new to your organization and you don’t receive a huge amount of media coverage, we’d recommend having your team curate the content in the first instance. If you work for a large brand, the process of finding and sharing business-critical media can take up a lot of your internal time and resources and so Meltwater’s Curated Media Briefings may be a better option since our team of analysts do the heavy lifting for you.

Benefits of Meltwater’s Curated Media Briefings:

  1. We make sure that the dedicated Meltwater analyst we assign to your company understands your industry and competitive landscape so they can proactively monitor trends, market disruptions and new competitive threats, and alert you to the conversations you need to
    be aware of.
  2. Analysts help eliminate irrelevant mentions by manually reviewing all content and selecting critical business insights based on your brief.
  3. Briefings are highly customizable. We understand that different recipient groups are interested in different topics, such as sales, product reviews, negative news, mergers and acquisitions etc. If your priorities change, we’ll pivot with you and update all searches, while offering agility and flexibility to adjust scope.
  4. Meltwater analysts enrich curated briefings, transforming them into insights that are quick to read and easy to understand. We include publication, headline, date, content link, and options for an executive summary and/or customised article summaries highlighting key takeaways. That way, you can stay informed, gain a 360-view of your business, and educate your colleagues on the industry trends they need to know about.Photo of a woman working in the Meltwater Media Intelligence Platform using the internal newsletter functionality

Internal Newsletter Example #2: Themezy

Themezy employee internal newsletter templates are great because they are optimized across devices to ensure everyone can easily read the newsletter. What’s even better is they offer sixteen free company newsletter templates and you don’t have to submit your email address to get started. Screenshot of the Themezy internal newsletter template library as inspiration for the best internal newsletter examples and the best internal newsletter templates for your company

Internal Newsletter Example #3: TemplateMonster

If you have some budget to spend, look to TemplateMonster. They have a variety of internal newsletter templates that are user-friendly, customizable, and compatible. You can even do a live demo to see if it fits your needs. Below is their Panda employee newsletter template, built specifically for a creative agency.Screenshot of the Panda employee newsletter template by TemplateMonster as part of the best internal newsletter examples and the best internal newsletter templates for your company

Internal Newsletter Example #4: HubSpot Template Marketplace

With a large collection of email company newsletter templates, HubSpot offers free and paid versions, some as low as $1 and can be used immediately. Below are all examples of newsletter templates from their marketplace.Screenhsot of the HubSpot Template Marketplace as part of the best internal newsletter examples and the best internal newsletter templates for your company

Internal Newsletter Names: How to Choose The Best Option

Brainstorming names can be tricky, right? And there are so many options of possible internal newsletter names. As marketers, we know It’s one of the first things your employees will read next to the subject line, so it’s important to be thoughtful. And you want to make sure it stands out and grabs the reader’s attention. So where do you start?

First, take into consideration what type of content is included. Is its purpose informative, frequency-driven, goal-driven, or employee-driven? Is it based on a concept or your brand’s name?

Maybe it’s a mix? Second, make sure the employee newsletter name reflects your company’s brand voice and adheres to any internal guidelines. You can reference your company’s brand guidelines as a good place to start. And third, keep it short, simple, and direct.

Here are some examples of internal newsletter names based on the intention or theme of your internal newsletter.

Informative

  • The Insider
  • [Company Name] Digest
  • Just the Facts

Frequency-driven

  • The Monthly Review
  • The [Company Name] Weekly Bulletin
  • The Month Ahead

Employee-driven

  • The People’s News
  • Our Voices
  • All Hands Information

 Concept-driven

  • Marketing Insider
  • Media Talk
  • Marketing Thoughts

Brand-driven

Consider how you can use your brand in the publication name. It could be the title of your blog, tied to your brand colors, or an alliteration based on your company’s name.

Improve Internal Communications with Employee Engagement!

Employee advocacy is key in building and protecting brand reputation, so it makes sense to cultivate a strong employee culture. And an internal newsletter is a key component of a strong employee brand ambassador program and improving internal communications. Now that newsletters are easier than ever to produce, “why not start a company newsletter today?

By: Allison Smith

Source: How to Create an Internal Company Newsletter?

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