الأربعاء، 18 أبريل 2018
This Work-From-Home Resume Writing Job Pays Up to $50/Hour — Apply Now
Writing a resume can be frustrating, which is why people pay top dollar to have professionals do it for them. If you’re someone who doesn’t struggle with writing resumes and wants to make some extra money, then you’ve come to the right place.
Boardroom Resumes is looking for a master resume writer and is offering between $25-$50 per hour depending on experience. This work-from-home contract gig will have you building and editing resumes for senior managers and executives.
Applicants must have a resume-writing certification and five or more years of experience crafting resumes.
The following certifications will be accepted:
- Nationally Certified Resume Writer certification (NCRW) from the National Resume Writers’ Association
- Professional Association of Resume Writers and Career Coaches certification (PARW)
- Resume Writing Academy certification (most preferred by Boardroom Resumes)
If resume writing is not part of your skillset, no sweat. Check out our Jobs page on Facebook. We post new opportunities there all the time.
Master Resume Writer at Boardroom Resumes
Pay: $25 to $50 per hour, depending on experience
Applicants must:
- Have a near perfect grasp of the English language
- Have a certification from one of the resume-writing certifying bodies: Resume Writing Academy (most preferred), NCRW or PARW
- Have five or more years of resume writing experience
- Deliver projects on time
- Work independently
- Have the ability to write resumes for executive-level positions, technical jobs and management roles
- Have access to Microsoft Office
- Must meet once a week via video conferencing for status updates
Apply here for the Master Resume Writer at Boardroom Resumes.
Matt Reinstetle is a staff writer at The Penny Hoarder.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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Do It for Mother Earth: How Working From Home Can Help You Help the Planet
Do it for the planet.
According to a study published by FlexJobs and Global Workplace Analytics just in time for Earth Day, 10 million cars — or approximately the entire New York State workforce — would leave the road each year if every U.S. worker who could and wanted to telecommute actually did.
“There is no single solution that offers as large of a potential environmental impact and reduction in greenhouse gases than having people work at home,” says Kate Lister, president of Global Workplace Analytics. “It is the biggest part of our burden on the planet.”
The good news: By cutting the commute, the current U.S. work-from-from population keeps the equivalent of 600,000 cars off the road each year.
So if you already work from home, way to go, Planeteer!
How much could dropping your commute do to save our planet?
Your actual contributions can vary based on a number of factors, including your commute time and driving conditions, but you can get a general idea of your personal output with this tool from the Environmental Protection Agency, which calculates your vehicle’s average mileage and CO2 output.
To figure out how much CO2 your commute produces annually:
- Determine the number of miles you travel to and from work each day. For example, let’s say you drive 20 miles each way to work for a total of 40 miles.
- Multiply that number by the number of days you drive to the office for the total number of miles you drive each year. Let’s assume you head to the office five days a week and get two weeks off for vacation: 40 x 250 = 10,000 miles
- Multiply that number by your car’s CO2 output for your total. If your car produces 261 grams (or 0.575407 pounds) of CO2 per mile, then your commute results in 10,000 x .575407 = 5,754 pounds, or 2.877 tons of carbon annually.
Even if working from home isn’t always an option, every day you cut your commute can help, according to Brie Reynolds, senior career specialist at Flexjobs.
“When you’re able to work from home even one day a week, you’re reducing your commute by 20%,” Reynolds says. “Sometimes people think it’s all or nothing, but it can be some kind of compromise.”
In addition to cutting the commute, remote work also helps reduce the environmental cost associated with working in office buildings, according to Reynolds.
“Energy consumption goes down across the board when you’re able to stop using office space,” Reynolds says. “When people work from home, they have more control over their environment — I know a lot of remote workers who pay very close attention to their thermostats.”
By opting to dress in layers or use fans around the house, you can control the comfort level of your space without wasting resources on heating and cooling, Reynolds notes.
Bonus: You can retire that office sweater you wore in your aggressively air-conditioned cubicle.
In addition to the building, an office’s high-volume equipment often requires additional energy to operate and cool, according to Reynolds. Most remote workers get by on a less equipment, which saves energy and money.
“If you are largely in a role that doesn’t require a lot of extra office equipment, you can get by on pretty much a laptop,” Reynolds says, adding that less equipment also means less of it ending up in landfills.
And when you use your own office supplies, your cost-cutting tactics can also help the earth. Think: How many sticky notes do you use in the office vs. when you work from home?
“When you’re at home and you are the one responsible, you’re a little more hesitant to print something you don’t really have to,” Reynolds says. “Individual choice and individual consumption is a key piece of the environmental benefits of remote work.”
That’s a win for your employer, you and the environment.
Happy Earth Day!
Tiffany Wendeln Connors is a staff writer for The Penny Hoarder.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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More Schools Are Starting Classes Later. Here’s Why Your Child’s Should Too
A new study in the May edition of “Journal of School Health” confirms what parents already know. Later school-start times help kids get more sleep at night.
But here’s a twist. Kids get more sleep even if they go to bed later.
Researchers studied seventh- and eighth-graders at eight schools that started about 8:00 a.m. and at three schools that started about 7:23 a.m.
They found that students attending middle schools that start 37 minutes later get an average of 17 minutes of additional sleep on weeknights even though their average bedtime was 15 minutes later.
Seventeen minutes may not seem like a lot, but that works out to about 51 extra hours of sleep per school year, according to the study.
It’s no surprise that kids who got more sleep reported less daytime sleepiness and were more likely to be wide awake during the school day.
The American Academy of Pediatrics recommends middle schoolers get 8 ½ to 9 ½ hours of sleep each night to lower the risk of health problems like obesity and depression.
Scool districts in Illinois, Florida and Maine recently approved later school start times.
If you’d like to encourage your school to do the same, check out StartSchoolLater.net for resources to help convince school officials of the importance of later start times, such as joining a local chapter of the nonprofit Start School Later or signing or starting a petition.
Lisa McGreevy is a staff writer at The Penny Hoarder. She enjoys telling readers about affordable ways to stay healthy, so look her up on Twitter (@lisah) if you’ve got a tip to share.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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Domino’s 150K Hotspots Will Satisfy Your Pizza Cravings at Parks, Beaches
Domino’s has introduced Domino’s Hotspots, a delivery service to “select popular locations without traditional addresses like parks, beaches and more.”
More than 150,000 hotspots are active nationwide, the company announced this week.
“We know that delivery is all about convenience, and Domino’s Hotspots are an innovation that is all about flexible delivery options for customers,” Russell Weiner, president of Domino’s USA, said in a statement.
How to Get Domino’s Delivery Just About Anywhere
The pizza chain makes it simple to order online or through the app. Instead of delivery or carryout options, choose Domino’s Hotspots and use your device’s GPS to find nearby delivery options.
When you select a particular hotspot, you’ll receive instructions for the exact spot to meet your driver. You can also add a note to help your delivery driver find you, like a note about your clothing or car color.
Paying cash isn’t an option for this service — you’ll have to pay upfront with a card. The usual delivery charge applies, but there is no additional fee for hotspot delivery.
Hotspots near The Penny Hoarder’s office in St. Petersburg, Florida, include the local marina, tennis courts and a baseball stadium parking lot.
One might argue that you should plan your adventures enough to avoid sudden pizza delivery cravings. But one might also be a victim of many of those cravings, and simply enjoy knowing they can get pizza delivered to a tennis court.
Cravings can lead you to make questionable dietary choices; caving to those cravings can completely ruin your budget. UberEats, Seamless and other delivery services charge anywhere from $3.99 to $7.99 for delivery, and that’s if you’re getting it delivered to a legitimate address.
Getting your order dropped at your favorite park bench, however, is probably out of the question.
Lisa Rowan is a senior writer at The Penny Hoarder who frequently finds herself writing about pizza.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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The Best Disability Insurance Companies for 2018
Disability insurance is one of the most misunderstood insurance plans out there.
A lot of people who need disability insurance don't have it.
If something were to happen to you while you're at work, worker's compensation could help replace your paycheck, but what happens if you're injured at home or when you're not working?
This is where your disability insurance is going to come in.
Let's go through a hypothetical situation.
You're helping a friend move furniture on the weekend.
You're helping move the couch when you take a little tumble down the stairs. Ouch!
You end up with a bad back injury and you can't go to work for months.
Workers compensation isn't going to help because the injury didn't happen at work. What are you going to do for a paycheck?
If you have a disability insurance policy, it can replace your lost wages.
Long Term vs. Short Term Disability Insurance
Before we take you through the list of the best disability insurance companies, you need to understand the different types of insurance policies.
There are two main types of disability insurance, short-term and long-term. You can probably guess the difference based on the names, but you need to know the exact coverage differences.
- Short-term insurance is built to replace your paycheck for the first couple weeks or months after your injury. These policies are usually offered by employers.
- Long-term is designed to jump in after the short-term insurance policy ends. Long-term plans are there to ensure you have the income to pay for your mortgage, groceries, and other bills if you're out of work for months or even years.
Long-term is going to be more expensive because of the amount of coverage it can provide.
You may not think you need a long-term insurance policy, but based on numbers from the Social Security Administration, more than 1 in 4 workers who are 20-years-old will be out of work for 90 days or more because of a disability.
Deciding on the Best Type of Disability Insurance Policy
Because short-term insurance is usually provided by employers, this list is going to focus on companies who sell long-term insurance plans.
Some of the carriers will also sell short-term, but the goal of this list is to provide you with the best long-term insurance companies out there.
Another important note on our list is everyone is different, meaning each person has different needs.
One company might be perfect for one applicant, but terrible for another. You'll need to comb through the list to find the perfect match for you.
There we dozens of factors we consider when putting this list together. We wanted to look at every angle to help give you the best options.
Some of the factors we considered were:
- Price
- Options
- Customer service
- Financial standing
- Company history
Our Top 10 Best Disability Insurance Companies For 2018
1. Assurity
Assurity is one of the most popular choices for disability insurance.
They have a couple of different choices for disability insurance, one of those is an individual disability insurance policy and a simplified disability insurance.
One reason Assurity stands out from the competition is because of their disability insurance for self-employed applicants.
If you own your business or you're self-employed, then Assurity is an excellent choice for anyone looking for individual disability policy.
Their Simplified Disability Income Insurance plan can give you disability insurance without having to jump through all of the hoops. All you'll have to do is do a phone interview, and they will do a prescription database check and an MIB check.
Their simplified plan is open to anyone from the ages of 18 to 59 and can give you protection for up to $3,000.
For most people, this should be enough coverage, but if you need more, you'll have to go with a more in-depth policy.
2. Guardian Life
Guardian was established in 1860, and they have the best rating from both A.M. Best and the BBB.
Not only do they have great ratings, but they are also a Fortune 250 global financial services company.
Guardian Life is no small operation. They have over 2,750 agents and 58 agencies across the nation. More than likely there is an agency near you.
Before you go shopping, you should know the disability insurance plans are actually offered by one of their subsidiaries, Berkshire Life Insurance Company of America.
Berkshire Life has four kinds of disability policies:
- an individual plan
- a group plan
- disability insurance for business owners, and
- a supplemental plan
We are going to focus on their ProVider Plus plan, which is their individual long-term disability policy. You can get coverage for 2 to 10 years and up until you're 67.
This plan is a true own occupation, meaning as long as you can't perform YOUR job, you can make a claim on the plan, even if you could do another job.
3. Illinois Mutual
You may not have heard of Illinois Mutual before, but you need to include them in your search for disability coverage.
Their Paycheck Power disability insurance policy can help pay for your monthly expenses if Social Security isn't enough. Like most other plans, their policy is guaranteed renewable until you turn 67. As long as you're paying the premiums, they can't cancel your policy.
4. PIU (Petersen International Underwriters)
Petersen International Underwriters is probably the least well-known company on our list, but you shouldn't overlook them for disability insurance. PIU has a noble history.
The idea for the company was born when W. Harold Petersen was a boy and his father was suffering from a condition which prevented him from working for years.
PIU excels in providing disability insurance for high-income earners. They specialize in working with clients who would lose a lot of income if they could no longer work.
Another category where PIU shines is with clients who already have a health condition when they apply.
Sure, the rates may not be the lowest, but PIU gives disability policies where other companies won't.
5. MassMutual
MassMutual is not new to the insurance market. They've been in operation since 1851; over 160 years of selling insurance.
Not only have they been around for 100 years, but they also have quality ratings. They hold an A+ from both A.M. Best and from the BBB.
Some of the basics of their coverage are they have elimination periods in everything from 60 days to 730 days. Benefit periods from 2 years to 10 years, with a maximum age of 70.
They define disability as own occupation, meaning you are too injured to do your job, not just any job. With MassMutual, you can get a True Own Occupation rider which changes the qualifications for paying out the plan.
A unique factor of MassMutual plans is the recurring disability feature. If you end up with a new disability which is related to a previous claim, the elimination period is waived.
6. Mutual of Omaha
Mutual of Omaha has been featured on Good Financial Cents several times, and with good reason. What makes Mutual of Omaha so special? It's the additional benefits and riders.
They have a handful of different benefits built-in to their plans and others you can add on to your policy if you want more coverage.
Their long-term disability insurance policies have a total disability income benefit, a waiver of premium rider, a proportionate disability benefit, and they are guaranteed renewable until you turn 67.
After 67, you can still get coverage up until 75 if you're still working full-time.
These are only a few of the built-in features. Their plan also has:
- Terminal illness benefit
- Rehabilitation benefit
- Survivor benefit
- Some of the additional riders you can add are:
- Cost-of-living adjustment rider
- Critical illness benefit
- Return of premium
If you're looking for a company which has a customizable plan, Mutual of Omaha is an excellent option.
7. Ohio National
To get started, let's look at Ohio National's ratings.
They have an A+ rating from both A.M. Best, the BBB, and the S&P. It's comforting to know these third-party rating companies have deemed Ohio National a financially safe provider.
One of the main factors which went into our list is customer service. If you look at reviews on Ohio National, you'll see a lot of policyholders talking about their stellar customer service representatives.
Let's look at Ohio National's ContinuOn Income Solutions policy.
It's a long-term disability insurance policy available to anyone from the ages of 18-70. It's non-cancelable and guaranteed renewable. They have elimination periods anywhere from 60 days to 365 days and the minimum income benefits of up to $30,000.
In additional to the basic income protection, their plan also has some additional benefits, like a residual rider, which can payout a portion of the policy if you can still work but have a loss of income.
They also have a Hospice care benefit, if the policyholder is disabled, the elimination period is waived if they receive hospice benefits.
8. Principal Financial Group
Principal's history goes all the way back to 1879. They've bene around for a while, and they've had a long time to perfect their products and services.
They have received a handful of awards, including the Adviser's Choice Award for advisor support.
Principal's Individual disability income insurance is available as both an individual plan and as an employee benefit.
One unique feature of these policies is they are available to workers who work at least 20 hours. Other companies are going to have stricter restrictions on their disability policies.
With Principal, you get simplified underwriting for up to $6,000 a month. If you want to secure more protection than that, you'll have to go through the full underwriting.
Every applicant is different, and each person is going to receive different rates, but Principal gives some enticing sample quotes for a $1,000 a month policy. If you're a 40-year-old male looking to buy the policy, you're going to pay around $25 a month.
A woman of the same age and health is going to pay close to $40. These are excellent rates for this amount of protection.
9. The Standard
If you're looking for options, The Standard has you covered.
They have several choices for you to pick from. When looking at disability insurance, they have three standard options, Platinum Advantage, Protector Platinum, and the Protector Essential.
Let's examine their Platinum Advantage policy. One thing which makes it stand out from the crows is the no-cost riders and benefits.
One of those is the Family Care Benefit. If you ever have to take care of a family member with a serious illness, you can get a monthly benefit of 20% of your income. This is a benefit you won't find anywhere else.
Some of the other riders they include in this policy is an automatic increase rider and a benefit increase rider. The automatic increase rider will increase the monthly benefit 4% every year for the first six years.
The benefit increase rider allows you to buy more coverage for the first three years after buying your plan without having to go through the underwriting again.
Buying The Best Disability Insurance For You
These are only a few of the thousands of companies on the market.
Each insurance carrier is different, and each of them is going to offer you different protect. You need to find the best plan and provider for your needs.
We hope nothing happens to you, but you never know.
Before you purchase a plan, you need to shop around.
You won't know which company has the best plan until you compare the options. Sure, you can spend all of your time researching companies or calling agents, but we've spent the time to review a lot of companies.
Feel free to keep poking around Good Financial Cents to find a company who will offer you quality and affordable disability insurance.
The post The Best Disability Insurance Companies for 2018 appeared first on Good Financial Cents.
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This Free Mayonnaise Deal Is Perfect for Anyone Craving Mayochup
For others, Mayochup, as Heinz calls it, is blasphemy. You’re positive it will be a sad rip-off of your favorite condiment that goes by different names depending on where you’re from — mayo-ketchup in Puerto Rico, fry sauce in Utah, Russian dressing most places in between.
Then there is the small but vocal Twitter faction who thinks Heinz is genius but is taking serious issue with the name, not because they prefer a traditional name, but rather because they think “Ketchonaise” would have been a much better choice.
We won’t weigh in on who is right or who is wrong about the mashup. We’re just going to tell you that you don’t have to wait for Heinz if you want to try it yourself — and that you can try it for free if you download the Ibotta app.
Head to a participating store (be sure to check the app beforehand) and pick up either a 19 oz. squeeze bottle or a 30 oz. jar of Heinz Real Mayonnaise for $3.50 or $4.50, respectively.
Use your Ibotta app to scan your receipt, and as part of a limited-time offer, get the full amount back on the purchase of mayonnaise. If you already have ketchup at home, you’re golden. If not, use your savings to pick up a bottle of that, too.
Making your own Mayochup is just as easy as it sounds. Just combine equal amounts of mayonnaise and ketchup and you’re done with the basic sauce. You can also add garlic powder, salt, pepper and any other spice you love to make it your own.
Desiree Stennett is a staff writer at The Penny Hoarder.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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How to Increase Your Ecommerce Revenue by Leveraging Social Commerce
The ecommerce industry has become a very competitive space over the last several years.
In fact, more than half of Internet users across the globe made a purchase online in the last year. Younger generations with a strong purchasing power lead the way in this trend.
In fact, 67% of Millennials would rather shop online as opposed to going to a physical store. This is great news for your ecommerce brand.
Yes, obviously you’ve got lots of competition when it comes to selling products online. But if you have the right tools and marketing strategy, you can do a lot of things to gain an edge over your competitors.
You should know how to design a homepage that converts. It’s also important for you to know which elements add credibility to your website.
While all of this is necessary, it’s not enough. In addition to your website, you need to be taking advantage of as many platforms as possible to effectively sell your products.
That’s because you can’t always rely on consumers navigating to your website. You need to make sure your products are readily available for purchase in places where your customers spend lots of time.
Enter social media networks.
Just like ecommerce, social media continues to be a growing trend. There are nearly 2.5 billion social media users across the globe.
Experts predict that this number will reach 3 billion by 2021.
Your ecommerce brand may already have an active presence on social media. It’s a crucial marketing strategy, but you can take this approach one step further.
Use social media to sell your products.
If you’ve never done this before, you may not know where to start. Fortunately, you’ve come to the right place. I’ll tell you everything you need to know about how social commerce can boost the revenue stream of your ecommerce shop.
What is social commerce?
Let’s start with the basics.
Social commerce is a relatively new concept. The term was first used in 2005. But since then, its meaning and application have evolved.
With social commerce, you can sell your products through a third-party platform. More specifically, the platform you’re selling through is a social media network.
For example, if a Facebook user sees something they want to buy, they can do that directly through Facebook’s interface as opposed to having to navigate to the seller’s website.
This is great news for your ecommerce store. If you’re relying on consumers to visit your website after seeing an ad that promotes your products, it’s hurting your conversion rates.
Why?
It’s too many steps. Sure, you’ll still see some conversions. But simplifying the steps in the purchasing process will boost your conversion rates.
Take a look at the impact social media has on buying decisions:
The majority of consumers say they rely on social media to guide their purchasing decisions. When a consumer sees a product on social media, the chances of them buying it go up.
An additional 31% of people say they use social media to browse for products they are interested in buying.
For ecommerce businesses, it’s a no-brainer to implement a social commerce strategy.
Make your products available on Facebook
If you’re new to social commerce, Facebook is the most logical place to start. Eventually, you’ll add this feature to your other social media pages as well, but this is the best place for you to get your feet wet.
As I said earlier, social commerce is still new. Not every consumer has jumped on board with it yet.
But the majority people who have made purchases through social media platforms are doing so via Facebook:
As you can see, roughly 35% of social media users say they have never bought something through social media. But nearly 50% of social media users say they have used Facebook to make a purchase.
This makes sense. Facebook has always been a trendsetter in the social media world.
Their platform is extremely friendly for both everyday users as well as brands.
Facebook business pages have the ability to leverage this platform in several ways to drive sales.
First, they can list products directly on their page.
This feature mimics the appearance of a standard ecommerce shop we’ve all grown accustomed to.
Second, Facebook also implemented a “Shop Now” button that brings users directly to the brand’s website.
Check out this example from the DressLily Facebook page so you can see what I’m referring to:
On their Facebook page, you can see the “Shop” button on the left menu. This brings their customers to the screen you’re looking at now.
But if customers click the “Shop Now” button on the top of the screen, they will get brought to the brand’s website.
It’s important you take advantage of both of these buttons. As we previously saw, not all consumers have adapted to the social commerce trends. You don’t want to turn their business away. Some people may not be comfortable yet buying directly through Facebook, so giving them the option to visit your website is necessary.
To set up purchases directly through Facebook, you’ll need to associate a Stripe or PayPal account with your page.
Each of these charges 2.9% of the purchase plus an additional $0.30 per transaction.
I realize that these fees may be higher than the credit card fees on your website, but it’s just something you’ll have to accept.
Even though the payments get processed through third-party companies, you won’t need to use those platforms for collections. All your orders can be managed directly from your Facebook shop.
You’ll have real-time information and access to your current, pending, and past orders purchased through Facebook.
Sell on Instagram
Facebook purchased Instagram in 2012. It’s no surprise Instagram has seen so much success over the past several years.
On an average day, 95 million pictures and videos are published on Instagram. The implementation of their “Shop Now” feature is turning them into a social commerce powerhouse.
Here’s an example of how West Elm implemented this feature with a sponsored Instagram advertisement:
Imagine a user scrolling through their timeline. They’ll see not only the posts from profiles they’re following but some ads as well.
Just like a regular Instagram post, these ads can contain several photos and videos. It’s called a carousel ad. If the first image captures the user’s attention, they may scroll through the others to see what else this brand is selling.
Either way, the “Shop Now” button remains part of the post the entire time. It’s an effective way to increase conversions.
As we discussed earlier, the more steps involved in the purchasing process, the worse your results will be.
If your current Instagram strategy is having a post on your profile with a caption that says “link in bio” to entice purchases, it’s probably not a huge success. There’s too much friction.
But the “Shop Now” button simplifies the process and makes it easier for users to buy products in just a couple of clicks.
In addition to carousel ads, you can advertise using a single photo, single video, and slideshows. The slideshow creates a video by automatically looping up to 10 photos.
You can also change the CTA button of your ad to “Learn More.” Here’s an example from Rumble Boxing:
This button takes users to a landing page where they can get more information about classes and schedules. From here, they’re able to make purchases as well.
Selling through Instagram ads is great because you’re able to decide which users will see your posts.
You can customize your advertisement based on your goals, such as:
- brand awareness
- reach
- local awareness
- traffic
- engagement
- lead generation
- conversions
- product catalog sales
- store visits
All these options are available when you build your business on Instagram.
Add buyable pins
As an ecommerce shop, you need to have an active presence on Pinterest as well. If you’re not familiar with Pinterest, I’ll briefly explain how it works.
Many users like to browse through the platform for inspiration, ideas, and products they’re interested in.
For example, someone may use Pinterest for ideas on how to decorate a room in their home. When they like something, they can save the post or “pin” it to one of their boards.
Pinterest is great for businesses because it has a feature allowing the businesses to set up buyable pins for ecommerce shops. Here’s an example of what it looks like:
When a user sees this table when they’re browsing on the platform, they can make a purchase with just a few clicks.
Your customers can pay with their credit cards or Apple Pay. This is great news for shoppers browsing on their mobile devices.
With this feature, buyers can complete the purchase process with just one click, which will increase your conversion rates dramatically.
Recent studies show that 73% of Millennials would like to have the ability to make all their payments from mobile devices.
Apple Pay helped Cocoweb increase conversions on their mobile platform by over 20%. Zin Home also saw a 20% increase in sales after implementing Apple Pay.
It’s important for you to establish your social commerce strategy on mobile applications that process transactions. In addition to Facebook and Instagram, Pinterest needs to be your priority as well.
Leverage social influencers
No social commerce campaign would be complete without the help of social influencers.
Micro influencers increase your product credibility and boost sales revenue. Once you form relationships with these influencers, you’ll have them post content to their personal profiles.
It’s a viable marketing strategy. That’s why the majority of businesses are increasing spending on influencer marketing over the next year:
This strategy is continuing on an upward trend. In the last 12 months, there has been a 325% increase in searches for “influencer marketing” on Google. If you haven’t been researching the topic, it looks like your competitors have.
Another reason why influencer marketing works is because it’s profitable.
Research shows that influencer marketing has a return on investment rate that’s 11 times higher than that of other content marketing campaigns.
Working with social influencers to promote your products will go hand in hand with your social commerce strategy.
Conclusion
It’s tough for ecommerce shops to stay relevant in such a competitive space.
But you should look at these trends as an opportunity as opposed to a struggle. To gain an edge over your competitors and increase sales revenue, make your products available for purchase on as many platforms as possible.
Take advantage of social commerce shops in addition to your traditional ecommerce website.
Start with Facebook. The majority of consumers who have bought products on social commerce platforms have used Facebook to do so.
But you should also leverage other social networks as well, such as Instagram and Pinterest.
Use social influencers in conjunction with your social commerce strategy to maximize your brand exposure.
How is your ecommerce company using social commerce platforms to drive sales?
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How to Use Your Financial Goals as a Litmus Test
When Sarah and I started turning around our finances, one of our biggest goals was to achieve complete freedom from debt while fully owning a family home for our children.
That was a pretty audacious goal. When we started, we had almost $20,000 in consumer debt, two car loans, and several student loans, and we lived in an apartment. We had minimal savings.
About five and a half years later, we owned a family home free and clear and had no other debts. Lest you think that we did this due to a secret windfall or something, we didn’t – during that whole span, we only earned over $100,000 in household income once and most of the time we were fairly close to the median household income in America (somewhere around $60,000 a year). Our income came mostly from ordinary jobs – Sarah was a teacher and I was a lab technician who mostly just handled and processed data – and a few side gigs. In the midst of that stretch, I switched to being a full time writer, which was actually a big drop in income – I made the switch mostly so that I could be more flexible and available for my children.
Obviously, to pull this off, we lived very frugally, probably more so than we do right now. We spent far, far less than we earned and found ways to cut back in all kinds of ways.
One of the big “litmus tests” that we used whenever we discussed an unnecessary expense was what I like to call the “debt freedom test.”
Will I get more value out of this purchase than I would get from the peace of mind of being completely free from debt?
While you might want to shout out objections to this question, in the end, it’s a completely legitimate question. As long as I kept saying that some little purchase “doesn’t really matter” in comparison to the size of my debts, then I was never going to have that debt freedom. Every single little purchase was standing in the way of debt freedom. So, I started comparing every single little purchase to the peace of mind and freedom of choice that complete debt freedom would bring, and when I asked that question honestly, almost all unnecessary expenses paled in comparison.
I used a lot of specific frugal tactics to really keep my spending low, but a lot of those tactics ended up boiling down to asking that question of myself honestly about every dollar I was spending.
Would I get more value out of buying soap than the peace of mind of debt freedom? Yes, but would I get more value out of buying name brand soap as compared to the cheap soap than I would from the peace of mind of debt freedom? Not even close. Cheap soap it is.
That was my philosophy about every dollar spent. In general, I tried to keep those choices from adversely affecting the lives of others by never skimping on guests in my home or things like that. I maintained a non-extravagant social life. I did splurge on occasion, but it was usually on something where the upside was very, very clear to me.
So, what happened when we climbed that mountain? What did we do when we hit debt freedom?
For a while, we drifted a little. We weren’t really sure what our goal was going to be. I restructured my career a little by selling The Simple Dollar and agreeing to become a long-term writer for the site. We went on a couple of nice family vacations. We kept stocking our retirement savings. And we thought about what was next.
Within a year or two, we figured it out. We wanted financial independence. By that, I mean we basically wanted to reach a point where neither one of us had to work for a living unless we wanted to, and we wanted to reach that as soon as possible.
This restructured the question we asked about every purchase. Now, it looks like this:
Will I get more value out of this purchase than I would get from the peace of mind of being completely free from having to work for income?
Now, I’ll be the first to admit that this question doesn’t have quite the same pull for me as the debt freedom question had. A big reason for this is that I enjoy my work. I have a ton of freedom in terms of what I write and when I write and how I write, very few meetings of any kind, and almost zero direct management. I enjoy helping people, I enjoy the topics I write about, and I enjoy exploring new facets and angles on financial issues and personal growth issues.
This question still works as a nice filter, however, and it keeps me from making particularly bad decisions with my money. We still spend way less than we earn. We still save a ton for early retirement. We sock away a ton for our children’s college educations. We avoid a ton of unnecessary expenses and maintain the vast majority of the frugality practices that we used during our years seeking debt freedom. We’re aiming for financial independence at roughly the same time that our youngest son leaves the nest, giving or taking a bit depending on their life situations, of course.
In short, this question works because it makes us reflect on what uses of our money provides us with the most value in our life. If there’s something we want to buy that has more value than saving for debt freedom or financial independence, we’re free to do that. If it doesn’t have more value, this question reminds us of what we’re shooting for in the big picture. No matter which way we decide, that question ensures that we’re getting the most value for our money in terms of the choice between enjoying pleasures now or saving for peace of mind later.
So, let’s bring this back to you. What does this have to do with your own financial journey?
To put it simply, this question really works for any financial goal. No matter what your financial goal is, this question works as a powerful litmus on your spending.
Just identify your personal financial goal, think carefully about how you will feel and the life benefits you’ll gain upon completion of that goal, and then start running all of your spending through this question.
Will I get more value out of this purchase than I would get from the peace of mind of achieving my specific goal?
If you’ve carefully considered all of the benefits of achieving your goal, you probably know that the value you’d get from achieving that goal is pretty high. It likely comes with a lot of nice perks, even on top of the pure peace of mind of being in a better financial place with more life security and (likely) fewer monthly expenses. That’s a lot of peace of mind, right there.
What purchases could you make that would beat that peace of mind and actually provide even more value? There aren’t many. The ones that rise to the occasion are going to be expenses that are really providing a ton of life value to you.
If you’re finding that lots and lots of expenses rise to this value, then you’re either trying to achieve a goal that isn’t providing a whole lot of value to you or you’re drastically overestimating the value you’re getting from everyday splurges. This means that you either need to seriously re-think your goals, or you need to reflect on how much value you’re really getting from momentary splurges. A few are okay – you can pack a lot of personal value into occasional splurges – but routine splurges just don’t provide a whole lot of life value.
Use this question constantly. Look at all of your bills through this question. Look at all of your expenses through this question.
Then, put your dollars where they provide the most value to your life.
Good luck.
The post How to Use Your Financial Goals as a Litmus Test appeared first on The Simple Dollar.
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Sure, It’s No Fun, but You Can Survive Identity Theft With These Easy Steps
Another store has leaked credit card information. Phone scammers are trying to sucker you into saying “yes.” The IRS is battling scammers trying to get your tax information.
The bad guys put so much time, effort and ingenuity into finding creative ways to steal your identity, I can only imagine what they could accomplish if they used their brain power for the greater good.
If identity theft happens to you, don’t freak out. It’s not good, but you do have resources that can help fix your situation and possibly even reclaim some of your lost money.
What Is Identity Theft?
Legal Dictionary defines identity theft as “the act of stealing another person’s personal identifying information in order to gain access to his financial resources, or obtain access to other benefits, such as money, credit, or insurance benefits.”
In other words, the bad guys have your personal information and can use it to gain access to your accounts, open new accounts or even take out loans in your name.
Or perhaps someone uses your identity to conceal their illegal actions. Maybe they need medical help and don’t have insurance, but you do.
There’s even a problem with child identity theft in the U.S.
Seriously, people? Even our kids?
If you’re getting phone calls or bills in the mail about debts you know nothing about, don’t simply dismiss them. These are big ol’ red flags. Look into the charges and see if someone is using your information.
What to Do if Your Identity Is Stolen
The steps to prevent and repair identity theft are largely the same as those for credit card fraud, but there are a few added measures.
- Start out by heading to the Federal Trade Commission’s webpage for an identity theft recovery plan.
- Contact the company where the fraud occurred. Was your bank card used? Did someone take out a credit card in your name at a department store? Wherever it was, contact them right away and let them know about the fraudulent activity. Ask to have those accounts frozen until you can get the situation figured out.
- Call one of the three major credit bureaus and place a fraud alert. If you call one of the credit bureaus, that bureau should contact the others for you to place an alert. (Verify this before you hang up!)
TransUnion: 800-680-7289
Experian: 888-397-3742
Equifax: 800-525-6285
- You may want to file a police report. It’s up to you, but it may be a step you don’t really need.
- If you think your Social Security number was compromised, report it to the Social Security Administration.
- The next step is to report your case to the Federal Trade Commission, which will show you how to report identity theft. Head to IdentityTheft.gov, or call 877-438-4338. Have as many details as possible ready when you make your report.
- If your driver’s license was stolen or compromised, report that to your nearest Department of Motor Vehicles. You may need to get a new one.
- Suddenly have a police record for no reason? You may have to clear your name of wrongdoing. It won’t be fun or easy, but you cannot ignore it. Call your local law enforcement agency to start the process. You may want to seek counsel from a lawyer first.
- Keep a close eye on your mail for any other solicitations for payment. School loan notices, medical bills, even letters from the IRS could be signs that you have more issues to address.
- Sign up for a credit monitoring service such as Credit Sesame, which helps you avoid identity theft by keeping a watchful eye on your finances. Credit Sesame’s free identity theft protection will alert you to important changes in your credit report (like someone trying to apply for credit in your name), and it offers $50,000 in identity theft insurance.
How to Prevent Identity Theft and Protect Your Credit Score
It’s a scary time for these kinds of crimes. We’ve become an increasingly digital society, and our information is out there for the taking. I mean, when one of the three major credit bureaus leaks your information, you know things are bad.
Wondering how to prevent identity theft altogether? Your best bet is to simply keep close tabs on your accounts and passwords. Change those passwords frequently, and do not use the same one for everything. When you shop online, be smart about it: Don’t save your payment information on websites, navigate directly to the site you want instead of trusting links, and never shop using unsecured public Wi-Fi.
It’s your identity. You want to protect is as much as you can and take the steps needed to fix it when necessary.
Tyler Omoth is a senior writer at The Penny Hoarder who loves soaking up the sun and finding creative ways to help others. Catch him on Twitter at @Tyomoth.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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This Woman Overcame Her Money Issues and Saved $1 Million by Age 33
Participants would pay $199 for the workshop and a private coaching session. If they registered at least two days in advance, they could bring a friend for free.
But the registrations didn’t exactly roll in on their own. Rosenblum kept adjusting her reservation: a room for 100 people, then 50, then 30.
“Then I made the most of it with my 12 people,” she said of the final attendance.
That first workshop wasn’t exactly a moneymaker for the CPA who had previously built her career in corporate accounting and finance.
“I left a six figure job to start a business and I knew nothing about starting a business,” she says now. “I thought I could set up my shingle and everyone would come.”
But those 12 audience members were the foundation for Rosenblum’s financial coaching services through her company, Own Your Money.
Running Her Career, but Hiding From Her Money
Rosenblum didn’t always have the confidence to teach others about personal finance, although she’s always had a knack for numbers. In her first job as a teenager in New York, she provided bookkeeping services for a local security company.
But she’s had her own struggles with money. Rosenblum remembers her parents fighting, often about money, before they divorced when she was seven years old.
“What I concluded at the time was that money was pain for me,” she says. “The more money I make, the more pain I’ll be bringing into my life.”
She suspects that belief kept her from earning what her skills were really worth after she graduated from college with honors in accounting.
Rosenblum also had to fill in as financial manager for her family.
When she was 21, Rosenblum’s father had a stroke. “All my friends were partying and going out, and I was taking care of him in the hospital,” she recalls. Her dad didn’t keep tidy records, so she found herself patching together his financial story, managing expenses on his home and his medical treatment while taking care of her own finances.
“Once I felt like he was stable, and I Band-Aided things together with our personal finances, I focused back on work.”
Frequent business trips meant Rosenblum would return home to piles of mail that she couldn’t bear to open on her brief weekend breaks. “I would just bring it home and put it on any free surface. The desk, the table, the basket,” she says. And it wasn’t just her own bills and statements in those piles — she couldn’t even bear to deal with her dad’s mail.
She finally collected all the piles into one place. But overwhelmed with guilt and shame, she couldn’t bring herself to open and sort them. She worried what people would think of her if they found out. “I’m an accountant for goodness sakes,” she thought. She was 28.
“Financial independence didn’t mean I had to do it alone,” she decided, and called a friend for help. Annette came over that weekend and started opening bills, asking Rosenblum which pile to put them in, which to pay and which to file.
It took six months for Rosenblum to get organized and develop a system where she could easily manage her own and her dad’s finances, even if she was on the road.
Forging Her Own Path
Rosenblum went on to manage her six-figure salary so well that she saved up her first million by the time she was 33.
But a corporate restructuring in spring 2007 left her figuring out what was next. She took her handsome severance package and traveled to India and Costa Rica. She thought she’d be able to find a job quickly, but none of the offers she received in corporate finance felt quite right.
Even the idea of being a financial advisor didn’t sit right with her, even though she had several offers in that field. Talking with the women in her life about their approaches to money exposed the flaw in that plan.
“When I told them I was going to be an advisor it was almost like they clutched their purse tighter,” she says. “Like somehow I was going to take their money or something or like try and invest them or try and change them.”
Instead, Rosenblum started to explore our relationships with money. “What I really felt like they needed more of was…how do they approach money in a way that felt good? That didn’t feel so scary and filled with overwhelm and shame? That was more interesting to me,” she says.
Finding Financial Independence, Together
Just a few months after Rosenblum’s first weekend workshop, the economy crashed into recession. But by then, she had already created a framework to help people deal with their financial baggage, to move through their mental roadblocks and take action toward meeting their money goals.
So she pressed forward.
She built out in-person training programs before expanding to online courses and a series of books for self-paced work. Since she started Own Your Money, she’s gotten married and welcomed two children into the family. Her husband now works on running Own Your Money alongside Rosenblum.
Her clients range from their mid-20s to early 70s, she says. Changing their mindset, she says, is often the biggest roadblock for people hoping to make progress managing their money. “We’re not born knowing money, and it’s amazing how much pressure we put on ourselves that by osmosis we should have figured it out,” she says. “We collect information, but not necessarily the best or right things.”
She notices her clients drawing conclusions about money at the ages of six through 10, much like her own revelation when her parents fought over money. Then “at 36, 46 or 56, we’re still holding on to what happened when we were six.”
She focus on helping people examine what she calls their money story, and on giving them a nonjudgmental space to talk about their challenges. She hosts private Facebook groups where clients and course participants can share their wins. Sometimes, it’s easier for a stranger to be happy for you when you get a big raise, Rosenblum says an example, than someone close to you.
“I remind them that we’re all here for them, that they’re not alone,” she says. “Maybe you’ve done it alone for literally 60 years, but it doesn’t mean you have to do it alone.”
Lisa Rowan is a senior writer and on-air analyst at the Penny Hoarder.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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Dreaming of a Frugal Christmas? It’s Easy — If You Start Now
The National Retail Federation predicted that U.S. residents would spend as much as $682 billion during the 2017 holiday season.
The NRF was wrong. We actually spent $691.9 billion.
And I have to admit that I didn’t do my share, even though I gave presents to 10 people and made some delicious holiday treats.
Understand: Christmas is one of my favorite times of the year and giving is very important to me. But I can’t – and won’t – break the bank to celebrate. Neither should you.
The good news: A mix of smart planning and savvy hacking will result in a Christmas (or Chanukah, or Kwanzaa) that’s satisfying, special, and solvent.
The better news: You’ve got almost nine months to set your holiday plans in motion.
As noted, I didn’t spend very much last year. These tactics really do work.
1. Start your own Christmas club.
Add up everything you spent on the holidays last year. Divide the total by number of weeks between now and Christmas, and start saving that amount each week. Bonus: If you use some of the other tactics in this article, you’ll likely spend less – which means money left over to seed the following year’s celebration.
2. Make a list.
Write down who you’ll be buying for and carry it with you (on paper or electronically). This positions you to start looking for great gifts the next time you encounter a clearance rack, a thrift store, or a garage sale full of like-new items.
3. Join a Buy Nothing Day group.
These Facebook-based organizations exist to keep useful things circulating. You might find some great potential gifts here and/or the materials to make your own presents. (I’ve seen a lot of craft supplies on a local BND group.) They’re like Freecycle, only smaller.
Speaking of which…
4. Start watching the Freecycle pages.
You may or may not luck out with regiftable goodies or the hobby supplies of your dreams. Bonus: You might also find things you need and had planned to buy (furniture, clothing, and the like) – and if you do, send the money you would have spent into your homegrown Christmas club.
5. Get a rewards credit card.
I use points from my rewards cards to buy holiday (and sometimes birthday) gifts. Get a rewards card only if you can trust yourself to use it wisely – that is, to buy only things you’d normally buy and to pay the balance in full each month. Many cash-back cards allow you to redeem your points for gift cards; Discover even boosts the value, so that cashing in $40 of points might fetch you a $50 gift card, for example.
6. Look for free-after-rebate items.
Toiletries, beauty supplies, and other items make great stocking-stuffers, and can really boost the recipient’s budget. (Have you priced body washes or makeup lately?) The Coupon Mom website matches coupons, rebates, and sales for you at major supermarkets, drugstore chains, and dollar stores.
7. Join an online rewards program.
You earn points for activities like doing online searches, watching short videos, playing games and shopping, then cash them in for gift cards to major retailers – or even for PayPal, which means you could get extra cash for holiday shopping. I belong to MyPoints and InboxDollars but my favorite is Swagbucks.
8. Join Coca-Cola Rewards.
This program changed in summer 2017 and isn’t as generous as it once was. Rewards vary, but I’ve gotten things like free magazine subscriptions, Amazon movie rentals, gift cards, and free Coke-and-popcorn combos at the AMC movie theater chain. Think “stocking stuffer.” If you don’t drink much soda (or any soda at all), ask relatives and friends who do to save you their points. (Pro tip: Check the lunchroom recycle bin, if you’re comfortable doing so.)
9. Join Pepsi Stuff.
Another soda-points program, with fun items like shirts, hats, clocks, signs, coolers, and even a full-sized refrigerator (honest!). It’s harder to find the Pepsi Stuff points than the My Coke Rewards ones, since not every Pepsi bottle/box has a rewards code. Keep at it, though; you’ve got months to save them.
10. Think about regifting.
The next time you get a book, purse, knickknack, or anything else that isn’t a good fit, consider whether it would be a perfect gift for someone else. For example, after volunteering for a big community event, my partner received a thank-you note with a gift card – to a restaurant he doesn’t like. Since a relative of mine loves that restaurant, it became one of her Christmas gifts.
11. Reimagine the holidays.
Are they too much for you? Specifically, are you feeling not just financially but personally stressed by all the hoopla?
One year I watched a young relative, overwhelmed by the piles of gifts, become stressed and even a little cranky before it was all over. In fact, he had to be convinced to open the last few gifts.
Ho, ho, no.
Personally, I love the four-gift rule: something you want, something you need, something to wear, something to read. Maybe your household doesn’t need stacks of gifts for each person. (Pop quiz: Can you remember every single present you got for Christmas last year?)
The holidays are particularly challenging if your extended family gets together with the understanding that everybody gets gifts. If you can fit this kind of celebration into your budget and it’s important to you, go for it. But if you find it takes months to pay off this celebration, ask yourself whether the annual hit to your financial security is worth it.
Brainstorm what a lower-key celebration might look like. For example, you might suggest the rule be changed to: “Gifts only to those 18 and under and 80 and over.”
Or if your household/extended family already has enough stuff, suggest people bring items to be donated:
- Personal care items, such as toiletries and socks, for the homeless shelter
- Boxes of disposable diapers for the family shelter
- Pet supplies for animal rescue organizations
- Books for a veterans hospital, nursing home or social services agency
Bring up the notion of change soon, to give your family months to get used to the idea. Remember: Some relatives might be feeling similarly stretched but too embarrassed to speak up. Those folks will silently thank you for starting the conversation.
Again: There’s no need to give up on giving, if it’s important to you. Just get smarter about what you buy and how you pay for it. Starting now.
Veteran personal finance writer Donna Freedman is the author of “Your Playbook for Tough Times: Living Large on Small Change, for the Short Term or the Long Haul” and “Your Playbook for Tough Times, Vol. 2: Needs AND Wants Edition.”
Related Reading:
- Start Your Holiday Gift Closet Now So You Can Relax on Black Friday
- Finding Meaningful Gifts Without Breaking the Bank
- Why I’m Not Buying My Husband a Christmas Present This Year
- How Much Could You Save for the Holidays if You Started Right Now?
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Fund Briefing: How to invest in industry sectors
While you may be tempted to invest in specific sectors that you believe offer a good chance of future growth, this approach is not without risk.
If you have strong views on the outlook for different industries, then you may like the concept of sector investing. The idea is to focus money on areas you believe are set to outperform over the coming months. For example, you may be convinced technology companies are undervalued or healthcare firms will benefit from new drugs.
This approach can also help control risk as you’re targeting areas with better prospects, according to Martin Bamford, managing director of advisory firm Informed Choice.
“Rather than investing across an entire market, choosing a few sectors allows you to pursue those you believe offer the best chance of future growth,” he explains.
Mr Bamford believes a sector-focused approach may be attractive to income investors wanting to direct money towards areas paying the strongest dividends.
Over the past five years, technology and consumer discretionary areas have been the winners, according to Darius McDermott, managing director of investment firm Chelsea Financial Services. He attributes this to the fact investors have increasingly been willing to pay more for growth since the financial crisis.
“Technology has overtaken consumer staples due to rapid innovation and the recent monetisation of businesses, such as Facebook,” he explains.
“We believe that equities across the board are expensive relative to their own history, but some areas nevertheless are cheaper than the broader market,” he adds.
Looking ahead, he suggests financials and energy have underperformed over the past decade, which arguably makes them look attractive.
Mr Bamford, meanwhile, expects basic materials and commodities to perform well on the back of an expanding global economy.
“Rising oil prices should help support the performance of energy companies this year,” he says. “Expanding economies should also result in a good year for consumer sectors.”
However, Patrick Connolly, a certified financial planner at advisory firm Chase de Vere, warns there are risks of taking a sector approach.
“If you make the wrong choices, you will have more of your money invested in poor-performing areas. This will impact on the size of your investment funds,” he says.
It’s a fair point. Depending on how much of your overall portfolio is tied up in this approach, a bad selection could have an adverse effect on your longer-term standard of living.
“Investing in specific sectors is a high-risk approach, as you are increasing your exposure to particular areas – effectively having more of your eggs in the same basket,” he adds.
Mr Connolly argues that specialist sector funds sit at both the top and bottom of the performance tables, highlighting the incentives and risks involved.
“Funds investing in biotechnology sit near the top of the tables, while those investing in gold, infrastructure and real estate are at the bottom,” he says.
The reality is nobody knows which sectors will perform well or badly in the future.
“What we do know is that investing in specialist sectors is likely to lead to volatile performance, which could expose investors to significant gains or losses,” he adds.
Most investors should probably avoid getting seduced by sector funds, according to Adrian Lowcock, investment director at multimanager Architas.
“These funds tend to be driven high by momentum and then investors lose out as the hype fades and the money leaves the market,” he says.
For those who like the idea, Mr Lowcock suggests limiting exposure to 1% to 2% and having an exit strategy in place as they are rarely suitable for a buy-and-hold strategy. “Sector and thematic funds are more appropriate for more adventurous investors with larger portfolios so that a £2,000 holding is less than 1% of the portfolio,” he says.
Mr Bamford insists a core/ satellite strategy – where the bulk of money is in broader funds, with sector-focused portfolios at the edges – is sensible for anyone drawn to this idea.
“Cautious investors might want to limit sector-specific investments to 10% of their equity holdings, while higher-risk investors could comfortably go as high as 40%,” he adds.
How to invest in sectors through funds
Most UK or overseas equity funds give their investors diversified exposure to a wide range of different sectors. So, if you want to focus your investments in a specific sector, you’ll need to find a fund that has a manager who has a very strong view, or you’ll need to find a specialist fund or investment trust.
“Investment trusts tend to offer better access to sector-specific funds in areas such as biotechnology and healthcare, infrastructure, and utilities,” explains Mr Bamford.
Annabel Brodie-Smith, communications director at the Association of Investment Companies, agrees the closed-ended structure of investment trusts makes them suitable for investing in areas such as commodities.
“Investment trust managers can take a long-term view of their portfolio, which is particularly helpful in, perhaps, a more unpredictable specialist sector,” she explains.
She also points out they’re not forced sellers when markets are volatile, unlike the managers of open-ended funds.
“Investment trusts have independent boards to look after shareholders’ interests and these directors often have sector-specific knowledge, which is another advantage,” she adds.
QUICK GUIDE: Is this area right for me?
Consider sector investing if…
- You want to focus on specific sectors of the market
- You want greater control over where you invest
- You are looking for satellite holdings in addition to a broader-based fund
Fund to watch: Polar Capital Technology Trust
This trust aims to maximise long-term capital growth by investing in a diversified portfolio of technology companies around the world. The manager chooses companies on the potential for shareholder returns, focusing on factors such as management quality and the identification of new growth markets.
Internet software and services accounts for the largest exposure in the portfolio (27%), followed by software (25%) and semiconductors and equipment (15%). Other areas include electrical equipment, internet and direct marketing, IT services, communications equipment and machinery.
The US and Canada has the highest exposure (65%), followed by Asia Pacific excluding Japan (14%). Other regions include Japan (6%), Europe excluding UK (5%) and the UK (2%), with modest exposure to the Middle East & Africa, and Latin America.
There are 117 investments in the trust, with the 10 largest holdings including Alphabet (8%), Microsoft (7%), Apple (6%) and Facebook (5%).
In his most recent fund update, Ben Rogoff, the manager, said the performance of the technology sector had been encouraging. He highlighted strong balance sheets, tax reform, repatriation of overseas earnings and robust earnings growth.
“The latest high-profile example of technology disruption is Amazon’s push into healthcare (in partnership with Berkshire Hathaway and JP Morgan) and groceries (following its acquisition of Whole Foods),” he added.
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