Author: usfinancereviewer

Sterling’s Remarks Leading to Loss of Income for Clippers

LA Clippers Owner Donald Sterling
LA Clippers Owner Donald Sterling

In the wake of Clipper’s owner Donald Sterling’s alleged racist remarks several companies have taken action to either cut-off sponsorship funds completely, or to just temporarily withhold support until more clarity is established.

The first company to react to Sterling’s hate speech, which was first brought to light on the celebrity gossip/news site TMZ, was State Farm insurance. At first it seemed they were going to completely cut their ties with the Los Angeles Basketball team, but have since recanted, saying in an official statement that the brand would only be “taking a pause” from lending its support for the team.

Next came CarMax, which took a more extreme position, completely ending their relationship with the Clippers. After CarMax’s hardline stand Virgin America took a similar position and withdrew their sponsorship as well. Joining the avalanche of brands ending support for the LA Clippers was Mercede-Benz, cutting all ties completely. A presenting sponsor, the Chumash Indians has also decided to end ties with the beleaguered Los Angeles team.

“I would advise any of my clients to distance themselves completely from the situation,” said David Spencer, a sports marketing expert for Talent Resources.  “I don’t see a negative of jumping ship at all.  The only negative would be to stay on the sinking ship.”

Ed Sayres: Fiscal Developments

financesDespite the fact that America encountered a recession in the early part of the 21st century, Ed Sayres managed to turn things around for an organization in the non-profit world.  The American Society for the Prevention of Cruelty to Animals (ASPCA) encountered a serious financial boom when Sayres took over as CEO and President.  In fact, with him at the helm, the ASPCA jumped from a net revenue of $43 to $116million.

Over the years, Sayres has developed a reputation for growing high-performing organizations positioned for growth.  As well as growing non-profit organizations, Sayres has counseled CEOs, directors, and other top executives on fiscal management, strategic planning, Board development, fundraising etc.  Sayres’ approach focuses on “innovation, collaboration, transparency and accountability.”  His philosophy has over the years – through both non-profit and for-profit companies – been proven effective.  As well, Sayres has combined his work in both sectors, having been at the forefront of developing strategic partnerships between the ASPCA and large business corporations including Walmart, Target and CVS.

Uber Rush Hits New York

In addition to their app-oriented car service called Uber, the company has recently announced its Uber Rush. They promise to let “your packages travel like a VIP.”

Starting in Manhattan, their plan is to be like a typical courier service. The user uses an app to call up the vehicle and to get a price quote. The courier then arrives and takes the item from one point to another. The service isn’t for the purchase of items, such as a lunch. Rather, it is to take items that have already been purchased from one location to the next.

The plan with Uber is to take 20% of the price that the drivers charge. And prices appear to be in the $20-$25 range. Drivers for Uber have to be at least 23, to be properly licensed and insured and to have had a background check. Uber says that Rush will expand to other areas of New York after confirming their success with the initial testing phase.

There are a few other companies that have had success in this realm such as Ebay Now that promises to deliver products from local stores in less than 2 hours for $5 and the Postmates app that offers food and goods that will be delivered starting at $5.

Time will tell how Uber Rush will do, but it’s worth keeping in eye on as it is rolled out in New York.

U.S. Credit Card Issuers Embrace Microchip Security

In the aftermath of several data hacks during the holiday season, credit card issuers throughout the United States are rushing to follow in the footsteps of most European countries. In the U.S., credit cards use a magnetic strip which is swiped by a machine; a process which poses a security threat to card owners. However, in the U.K. and Kenya, the microchip, or EMV, cards are equipped with smart chip security and are encrypted.

National Retail Federation general counsel Mallory Duncan explained: “Fraud is rising too quickly not to make progress. Banks are going to do the right thing. The risk has gone up.”

This is already proving true, with Virginia Credit Union announcing that it will be sending out MasterCard credit cards with microchips for increased security.

“Our plans have been underway since last summer to reissue cards,” said Deb Wreden, senior vice president of product and delivery strategy, adding that the decision was not the result of security compromises at retailers.”

Similarly, Bank of America began offering cards as early as 2012 and has recently updated its cards for customers who travel abroad. JP Morgan recently announced that it will be following suit this year.

New Year’s Advice from the Chief Executive of Morningstar

Sometimes, good advice can make all the difference. It can help a person make one right decision that will impact the future of their career and change their financial life forever. In honor of the holidays, the Wall Street Journal asked several experts to share the best advice they ever received, or gave.

Morningstar chief executive Joe Mansueto said:

“An investor should think like a business owner, not a renter. Most businesspeople don’t get up in the morning and ask whether they should sell their business that day. If they own a pizza shop, they don’t think about whether what they really should own is a shoe store instead. They show patience and persistence and try to understand their underlying business better so they can earn the greatest return for the longest period of time.”

“So investors are in many ways misled by stock-market volatility”, he continued. “The values of the underlying businesses just don’t change as quickly as stock prices do. You really don’t have to watch those changes hawklike day after day.

It is in a lot of people’s interests to get you to do something. Advisers and brokers earn commissions, fund companies want you to bring your assets to them. There are a lot of forces at work in the investment industry to get people to move, and there’s not really a countervailing force to encourage you to do nothing. But you should.”

BillGuard Launches New iPhone App Update

BillGuard, a personal finance startup aimed at helping users save money and protect their finances, recently announced that it will be updating its iPhone app. The update is intended to help users defend against fraudulent charges on their credit cards, as well as to become more proactive with their money. The updates will also help users by updating them about available discounts.

Tech Crunch explains that “by connecting their accounts to its big data platform, the company provided a way for its users to track and dispute fraudulent charges or billing errors on their credit and debit cards. Soon after it moved to tackle the problem of so-called “gray charges”- that is, monthly or yearly subscription charges that users either unknowingly signed up for or signed up for and forgot about.”

In other words, the company has provided users with a reactive approach to personal finance. Now they are hoping to help users make money proactively with its two new app features ‘Spend Analytics’ and ‘Smart Savings’.

“Our core mission is to use data to save people money,” BillGuard CEO Yaron Samid said. “We’re really good at saving people from the bad stuff, and now we want to find the good stuff… The app is like the perfect accountant running in the background and trying to find ways to save money.”

 

A Step by Step Guide to Buying Gold

goldSome investors believe it is a complicated process to purchase gold as an investment, but this does not have to be true. Here is a step by step process to make buying gold easy.

1.     Understand the role you want gold to play in your investment portfolio. Knowing what you want gold to do for you can save time and prevent mistakes.

2.     Decide what percentage of your portfolio you would like gold to have. There is an old saying which goes, “Put 10% of your money in gold and hope you never need it.” Some experts that depending on an investor’s confidence in the economy, up to 30% invested in gold can be a smart move.

3.     Choose the correct gold firm. Check ratings, the Better Business Bureau, and precious metal reviews. The company you deal with can make a large difference in your experience of owning gold.

4.     When you have done the research you will be able to make an informed decision.
Gold is a traditional hedge for investors. By following these simple steps gold can work its magic for you, too.

Financial Tips for a College Send-Off

Starting college is an exciting and overwhelming time, and financial talks are often pushed to the sidelines in the face of packing, meeting new friends, getting used to a new campus and adjusting to a college curriculum. However, managing finances as a college freshman can be more difficult than all of the above, so setting aside some time to discuss is essential.

The Courier of Montgomery County offers 5 topics to cover in the conversation:

1. You’re spending real money. ” Understanding where tuition and other funds are coming from may inspire your child to spend more carefully,” the article explains. “Clarify that loans will have to be repaid with interest and while scholarships, grants and gifts may seem like ‘free money,’ there are expectations that they’ll be used responsibly.”

2. Budgeting for surprise costs. “Freshmen encounter many unexpected expenses like club fees, transportation costs and social dues. Tracking these – as well as any regular bills and necessary purchases – can help your child be more prepared in the future. Budgeting is essential, especially since students don’t typically have a significant source of income. Warn your son or daughter to avoid wasteful spending habits such as buying expensive lattes or disregarding ATM fees.”

3. Using credit is OK, if you do it right. “Though it may worry you to see a credit card in your child’s wallet, having knowledge about the importance of good credit and the role it plays in the future purchase of a home or vehicle can help young adults establish financial independence.”

4. Don’t try to keep up with your roommate. “No matter where your child attends college, there will be students who can afford – or who choose – to spend frivolously. Encourage your son or daughter to be conscious of their spending habits regardless of your family’s financial situation. If your child decides to splurge on a spring break trip or expensive night downtown, stress the importance of careful saving and budgeting well ahead of time to avoid ensuing debt.”

5. “We’ll help, but we expect you to be accountable.”