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Kelley Blue Book: Thinking of a Tesla? Here are answers to some questions about the popular Model 3

financialnews1 on December 3, 2021

This is the Tesla
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-0.95%
for the masses — as long as they can afford a vehicle that costs more than $40,000. Initially promised as a $35,000 EV, the Tesla Model 3 ended up being more expensive as the automaker realized that building a cheap EV was easier said than done. Still, the Model 3 is the best-selling Tesla and it continues to do very well for the company.

How much is a Tesla Model 3?

The least expensive Tesla Model 3 is the rear-wheel-drive Standard Range Plus Model 3. This car has 262 miles of range and starts at $43,990. Although that price could change at any moment. Tesla has a habit of raising and lowering the price of the Model 3 and Model Y without warning. The last price increase of $2,000 across the board was on Oct. 24, 2021.

For those looking for all-wheel drive and more range, there’s the Long Range Model 3. It offers 353 miles of range and starts at $49,990. The Performance variant will empty your bank account to the tune of $57,990. It has a range of 315 miles, but it’ll do 0-60 mph in 3.1 seconds.

Also see: Elon Musk sells another $1 billion of Tesla stock; nearly $10 billion sold this month

How to turn off the Tesla Model 3

Tesla introduced a cool little trick with its vehicles. When you get out of the vehicle, it turns itself off. When you re-enter the vehicle, it turns itself back on. After driving a Tesla Model 3 for a few weeks, you may find yourself a bit frustrated that other vehicles have to be manually switched on and off.

If you need to turn off the vehicle while sitting it in, place it in Park and set the brake, and via the infotainment touchscreen navigate to Controls > Safety & Security > Power Off to turn the Model 3 off.

How long does it take to charge a Tesla Model 3?

Charging speed depends on a variety of factors. If the vehicle is connected to one of Tesla’s Supercharger stations, Tesla says the station will add 175 miles of range in 15 minutes. As with most automakers, these charging speeds are typically based on charging up to 80% in moderate weather. Anything past that, and charging slows down due to the physics of batteries.

See: Tesla still dominates the EV market in the U.S., but these rivals are catching up

A more robust answer is that the Long Range and Performance trims can charge at 250 kW via a compatible Supercharger station. The Standard Range Plus version charges a bit slower at 175 kW via a compatible Supercharger station.

Via slower AC charging, (typically how a vehicle is charged at home) the Long Range and Performance editions support up to 11.5 kW, while the Standard Range Plus version tops off at 7.5 kW.

How fast is a Tesla Model 3?

With three variants, the speeds vary depending on how much money you want to spend. That’s similar to traditional gas-powered vehicles. If you want speed, get ready to pay more.

The Standard Range Plus Model 3 will do 0-60 mph in 5.3 seconds. Nothing to sneeze at, but the Long Range Model 3 undercuts it by over a second with a 0-60 time of 4.2 seconds. Meanwhile, for those looking to impress their friends and get from red light to red light as quickly as possible, the Performance version will hit 60 mph in 3.1 seconds.

Read: Tesla Model 3 loses Consumer Reports’ ‘top pick’ after safety-feature switch

How is the sound system in the Tesla Model 3?

While the Standard Range Plus Model 3 has received kudos from owners on its sound system, the Long Range and Performance Model 3 variants get an upgraded setup with 14 speakers, one subwoofer, and two amps. The result is an impressive audio experience from the EV.

The system supports Bluetooth streaming from Android and Apple
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devices but does not support Apple CarPlay or Android Auto. Fortunately, Spotify
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+1.53%
is available as a native app within the Tesla infotainment system so drivers can just log into their accounts in the car.

Why is the Tesla Model 3 so cheap?

A vehicle starting at roughly $44,000 definitely doesn’t sound cheap, but in the EV world, with the range and features the Model 3 ships with, its starting price doesn’t seem out of place. How Tesla is able to sell a vehicle with an impressive range and the latest tech is a combination of a couple of different things.

First, Tesla’s engineering and battery technology are some of the best, if not the best in the business. By continually working to fine-tune the efficiency of the motors and batteries, the company is able to deliver more range from smaller packs. Smaller packs cost less money.

Second, the interior is sparse and most hardware buttons have been replaced with features in the infotainment system. Less hardware means less overhead. The Model 3 only has a single display in the center of the dash and does not ship with a traditional dash cluster behind the steering wheel.

Read next: Your complete guide to MPGe, the electric equivalent of miles per gallon

Finally, Tesla has a head start on everyone else in the industry. While other automakers were building compliance cars to appease regulators, Tesla has been committed to the EV for over a decade and that gives them years of experience ahead of traditional OEMs. 

This story originally ran on KBB.com. 

NerdWallet: ‘I sold my lease and am getting a check back for about $3,000.’ How to tap all the equity in your leased car

financialnews1 on December 3, 2021

This article is reprinted by permission from NerdWallet. 

A shortage of semiconductor chips and other car parts has led to low new car inventory, higher used car demand and skyrocketing car prices. This supply chain disruption caused by COVID-19 has resulted in an unusual rise in leased car values — leaving lessees wondering exactly how to take advantage of their car’s equity.

“These are such strange times to have a lease coming to an end. My car is worth more now than it was when I leased it,” says Ryan Antkowiak, a Twin Cities, Minnesota, financial adviser and certified financial planner.

Antkowiak, like many lessees, is finding his car’s buyout price originally set in the lease agreement is much less than the car’s current market value — in his case $6,000 less. In fact, a 2021 iSeeCars analysis shows cars leased three years ago have, on average, $7,000 worth of equity built up.

If you’re near the end of your lease and find your car has unexpected equity, here are some ways you might be able to tap into it.

Also see: This is how long the average earner needs to work to buy a new car

1. Sell to a third-party dealer

In the past, lessees have worked with third parties, such as Carvana
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-0.33%,
Vroom
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+2.03%
and Shift, to buy out their lease, giving them access to the equity without having to first buy the car themselves. However, many captive lenders — the financing arm of auto manufacturers — have put a stop to this practice. Technically, car manufacturers own the leased car, their dealerships need cars to sell, and they want cars turned back in.

In a July 2021 news release, American Honda
HMC,
+2.45%
Finance Corporation announced, “… lease customers can purchase their leased vehicle but are otherwise required to return or trade-in the vehicle to a Honda or Acura dealer only.”

Leasehackr, an online community dedicated to car leasing, provides an up-to-date list of lenders that no longer allow third-party buyouts. Some captive lenders may still allow third-party buyouts but discourage it by charging third parties a much higher buyout price.

““These are such strange times to have a lease coming to an end. My car is worth more now than it was when I leased it,” ”


— Ryan Antkowiak, financial adviser and certified financial planner

2. Sell to a participating dealer

One possible approach for accessing your leased car’s equity is finding a participating dealer willing to purchase it.

Leasehackr co-founder Michael Sin says, “Someone with a GM
GM,
+5.10%
lease might be able to find a GM dealership who would be willing to purchase the car directly from GM. The downside of that is the customer might not get the highest trade-in price, compared to a company like Carvana or CarMax
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+2.69%,
but I think it’s definitely an option on the table and something people should consider instead of just returning their lease. Right now, turning in their lease is basically the worst possible scenario, because their car is probably worth a lot more than the buyout.”

Brian Evans, a lessee from the Indianapolis area, worked with Swapalease.com, a marketplace for car lease transfers, to auction his car to its dealer partners. Originally looking for an individual to take over the final 12 months of his lease, Evans ended up selling the car and receiving a check for $6,000. Evans says, “This was a car I put on Swapalease.com just to get rid of it. I had no idea that I could profit off of this lease. I got out of my lease, I got $6,000, and I went and put that down on my wife’s new, used car.”

3. Buy your car to sell or keep

Some lessees are working around captive lender restrictions by buying their leased car themselves, and then selling it to a third-party dealer, private party or really any buyer they choose. It’s an approach that does require more effort.

For example, if you don’t have cash on hand, you would need short-term financing, such as a bank or credit union loan, to pay for the car. And you would then need to register and title the car before you can sell it, which could mean paying sales tax. Some states do have a grace period, providing time to register and sell a car before sales tax is due. Requirements vary from state to state, so you should talk to your local Department of Motor Vehicles before going down this path.

Finally, if a lack of car inventory prevents you from buying or leasing another car, or you just like your leased car, you might decide to keep it. In that case, a lease buyout loan could help with financing.

Read next: Here’s a buying opportunity for smart used-car shoppers

Know what your car is worth

Before you decide what to do with your leased car, take time to research your car’s current market value compared with the lease buyout price. Have an idea of the amount of equity and your options for tapping into it.

Eddie Lubach, a lessee from Bayonne, New Jersey, provides this advice: “Do your homework. A lot of times there are opportunities people don’t even know about, because they don’t ask or investigate. And here I am. I sold my lease and am getting a check back for about $3,000. Whoever heard of that?”

More From NerdWallet

Shannon Bradley writes for NerdWallet. Email: sbradley@nerdwallet.com.

What Brits want from their ‘dream job’ revealed!

financialnews1 on December 3, 2021

Image source: Getty images

Everyone would love to work in their dream job. But what exactly does this mean? What is a dream job and what are the features that make it ideal? RAJA Workplace has conducted a study to find out more on this, including what Brits value the most in their working environment.

Here’s a quick rundown of the findings and a few tips on how to increase your odds of landing your dream job.

What are the main features of a dream job?

A third of the 2,000 UK workers polled in the RAJA Workplace survey believe that they are currently working in their dream job.  

So, what exactly does this ideal job entail? Here are the key features according to the survey’s participants:

  • A 21 to 30-hour working week
  • An annual salary of £44,355
  • 29 days annual holiday per year
  • A commute that’s 16 to 20 minutes long
  • A supportive boss

What else do Brits value in the workplace?

Apart from the factors highlighted above, the study shows that Brits have several other requirements for a dream job in terms of the work environment, work culture and benefits.

When it comes to the work environment, for example, one of the things that workers value include a well-organised, comfortable and tidy space including comfy chairs and desks. Workers also value other perks such as free beverages like tea and coffee, and things like soft lighting and adequate storage space.

In regards to workplace culture, the survey found that Brits want friendly coworkers and the opportunity to interact and collaborate with them on occasion.

Benefits-wise, the study found that Brits want regular pay rises, an excellent pension, bonuses for good work, a day off on their birthdays, health and dental insurance, training opportunities and casual office attire.

How can you increase your odds of getting your dream job?

Are you currently out of work or feeling dissatisfied with your current position? Your dream job could be out there. However, it’s unlikely that it will simply fall into your lap or that you will stumble into it.

If you hope to land your dream job, you need to put yourself in the best position to get it. Here are a few steps that can help.

1. Know what you want

An important first step in getting your dream job is to identify your priorities. What exactly matters to you? What do you want your dream job to offer?

Here are a few questions that can help:

  • What do you enjoy doing or what do you find meaningful?
  • How much money do you need to make?
  • What are you willing to compromise on?
  • What are your skill sets, and where do you have gaps?

Having a clear vision of what you want exactly will help you identify a path for getting there.

2. Network

Getting into a particular work field will be much easier if you already know people in the field. A large number of people actually get their dream jobs through networking.

There are numerous ways to network and connect. Two standout ways are attending industry events and using networking sites such as LinkedIn to discover people and communities in your dream field or job.

3. Write a killer CV

The main goal of a CV is to help you land an interview.

Once you have a particular position in mind, the best way to increase your odds of getting an interview is by tailoring your CV to that particular job.

That could mean adjusting your work objectives to reflect what the employer is looking for. It might also entail customising your list of qualifications and skills to the requirements of the specific job.

Here are three questions to keep in mind when writing a CV that could help put you in a good position to get an interview. 

  • Can you either make or save money for your new employer?
  • Are you innovative?
  • Do you have the necessary skills for the position?

Also, check out these five classic mistakes to avoid when writing your CV.

4. Ace the interview

The interview is the most important part of getting your dream job. After all, this is where you win or lose the job. You will need to put on an award-winning performance and the way to do it is to simply be prepared. This entails both research and practice.

Learn everything you can about your employer and the job you’re applying for. Prepare for common interview questions and have a friend conduct a mock interview for practice.

On the day of the interview, be on time, presentable, and well organised to create a good first impression. If you’ve done your homework and are adequately prepared, then you’ll be one step closer to scoring your dream job.

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Sean is a personal finance writer with a strong passion for helping others become more financially literate and make better financial decisions. He covers everything from credit cards to savings to investing.


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Next Avenue: ’Tis the season for autobiographies: Celebrity memoirs for your gift list or holiday reading

financialnews1 on December 3, 2021

This article is reprinted by permission from NextAvenue.org.

Paul McCartney. Dave Grohl. Bruce Springsteen.

All three legendary musicians have new books out, sure to please their many fans. Springsteen paired up with a fellow named Barack Obama in “Renegades: Born in the USA,” touted as a collaboration between two longtime friends in “an intimate and urgent conversation about life, music, and their enduring love of America.”

In “The Storyteller: Tales of Life and Music,” Grohl chronicles his life’s journey. “The drummer for Nirvana and the frontman for the Foo Fighters, Dave Grohl’s friendly vibe makes us all sure he would be our best friend,” says Jessilynn Norcross, co-owner with her husband Matt at McLean and Eakin Booksellers in Petoskey, Mich.

As for McCartney’s “The Lyrics: 1956 to the Present,” Norcross has dubbed it “the 800-pound gorilla of holiday celebrity bios.” She predicts the two-volume set that so clearly illustrates McCartney’s genius will appeal to a wide range of ages.

“Still, this title is making independent booksellers across the country a bit nervous because we’re walking a tightrope when it comes to how many to order. We don’t want to be stuck with lots left over — but if we run out, the shortages in the supply chain will be an issue,” Norcross said.

Another great gift for Beatles fans might be “The Beatles: Get Back,” a photo-filled account of the making of “Let It Be.” The book’s publication coincides with the release of Peter Jackson’s documentary feature film of the same name on Disney +.

See: Here’s everything new coming to Netflix, HBO Max and Disney+ in December 2021 — and what’s leaving

Fans of the late superstar singer Whitney Houston need to know that Gerrick Kennedy’s book “Didn’t We Almost Have It All: In Defense of Whitney Houston” will be published early in February.

With that and other future titles in mind, remember that a gift card from your local bookstore makes a thoughtful present this holiday season.

Also read: No matter your age, here’s how to tell if your finances are on the right track

Ron Howard, Billie Jean King and Mel Brooks tell their stories

Celebrities outside the music world also have penned recent memoirs. Actor and director Ron Howard and his brother, actor Clint Howard, tell their story in “The Boys: A Memoir of Hollywood and Family.” In widespread ads for the book, Tom Hanks endorses it, noting it “will surprise every reader with its humanity.”

Tennis legend Billie Jean King — the first female athlete to receive the Presidential Medal of Freedom — recounts her brilliant career in “All In: An Autobiography.” And Gloria Steinem wrote the foreword for a new book eagerly awaited by art lovers: “The Flowering: The Autobiography of Judy Chicago.”

Billie Jean King at the French Open in Paris in 1972.


AFP via Getty Images

“Everybody’s talking about two new books on Anthony Bourdain, and I’m excited about both of them,” says John LeDonne, the adult book buyer at Gibson’s Bookstore in Concord, N.H. The books are “In the Weeds: Around the World and Behind the Scenes with Anthony Bourdain” by Tom Vitale, a director and producer on Bourdain’s television shows, and “Bourdain: The Definitive Oral Biography” by Laurie Woolever, Bourdain’s longtime assistant.  

For history buffs, LeDonne recommends “Churchill’s Shadow: The Life and Afterlife of Winston Churchill” by Geoffrey Wheatcroft. On the lighter side, LeDonne also looks forward to reading funnyman Mel Brooks’ “All About Me!: My Remarkable Life in Show Business” and actor Bob Odenkirk’s new book “Comedy Comedy Comedy Drama: a Memoir,” due out in March.

More books: These 5 great, easy-to-read books about money will change how you think about investing

On the value of celebrity autobiographies

Playwright Sarah Ruhl’s “Smile: The Story of a Face” isn’t funny, but her story about coping with Bell’s palsy for a decade will serve to inspire. In “Taste: My Life Through Food,” actor and director Stanley Tucci writes of time spent on film sets, in kitchens and also in hospitals, where he received chemotherapy and radiation treatments for mouth cancer.  

“I think that’s one reason readers value celebrity memoirs,” says Shane P. Mullen, event coordinator at Left Bank Books in St. Louis, Mo. “In these books, we often see the private side of someone whose life is so public, and we understand that even someone we think we know so well can be dealing with many of the same issues the rest of us deal with in our lives.”

Though it’s not exactly a celebrity biography, Mullen recommends “She Come By It Natural: Dolly Parton and the Women Who Lived Her Songs” by journalist Sarah Smarsh. “It’s more a memoir about Smarsh’s life than Dolly Parton’s, but readers will see how Parton connects to people, how people resonate with her and how her songs do influence lives,” he said.

Mullen also speaks highly of comic actor and woodworker Nick Offerman’s “Where the Deer and the Antelope Play: The Pastoral Observations of One Ignorant American Who Loves to Walk Outside.”

And Mullen echoes store owner Kris Kleindienst’s recommendation for “Yours Cruelly, Elvira: Memoirs of the Mistress of the Dark” by Cassandra “Elvira” Peterson.

Alan Cumming, Billy Porter and Dwyane Wade weigh in

Kleindienst also gives high marks to Anderson Cooper’s book “Vanderbilt: The Rise and Fall of an American Dynasty,” the story of Cooper’s wealthy family, co-authored by Katherine Howe, and Rebecca Solnit’s “Orwell’s Roses,” a biography of George Orwell, an avid gardener as well as an astute political writer.

Mullen has one more top pick: “Just as I Am: A Memoir,” author Michelle Burford’s biography of actor Cecily Tyson. “I was blown away as I read about Tyson’s sensitivity and her compassion, and the paperback comes out in February. Don’t miss it.”

At Books & Books in Miami, events and marketing director Cristina Nosti predicts these titles will be big sellers for the holidays: “Baggage: Tales from a Fully Packed Life” by actor Alan Cumming, “Going There” by television journalist Katie Couric, “Unprotected: A Memoir” by actor Billy Porter, “Rebel Homemaker: Food, Family, Life” by actor Drew Barrymore with Pilar Valdes, “Will” by actor Will Smith, and “Dwyane” by basketball superstar Dwyane Wade, the longtime player for the Miami Heat.

Also on MarketWatch: We want to retire in an East Coast community that ‘leans toward multicultural, progressive and educated’ and has lots of golf — where should we go?

Danny Caine, owner of Raven Book Store in Lawrence, Kansas, suggested many of the same titles other booksellers mentioned and shares these thoughts on celebrity memoirs and biographies: “In general, I’d say there is a trend toward a higher quality in the genre. In the last couple of years, we’ve steered away from the ghostwritten, tell-all books and seen more that tell interesting stories.”

Patricia Corrigan is a professional journalist, with decades of experience as a reporter and columnist at a metropolitan daily newspaper, and a book author. She now enjoys a lively freelance career, writing for numerous print and on-line publications. Read more from Patricia at latetothehaight.blogspot.com.

This article is reprinted by permission from NextAvenue.org, © 2021 Twin Cities Public Television, Inc. All rights reserved.

More from Next Avenue:

Key Words: Berkshire Hathaway’s Charlie Munger says markets ‘crazier’ now than they were in the late 1990s

financialnews1 on December 3, 2021

“Crazier than the dot-com boom.“

That was the verdict of the vice chairman of Berkshire Hathaway
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+1.18%

BRK.B,
+1.49%,
Charlie Munger, describing current stock markets and company valuations out of touch with reality, at the Sohn Hearts & Minds Investment conference in Sydney on Friday.

“Some of the valuations we saw in the dot-com boom were higher,” he said, according to The Australian Business Review. “But overall, I consider this as being even crazier than the dot-com boom, which blew up in 2000.”

Specifically, Munger said many U.S. companies were trading 35 times earnings, making it tough for average investors to get a foothold, with valuations the most extreme he’d seen in recent history.

One stock that is in favor with Berkshire Chairman Warren Buffett’s right hand man is discount retailer Costco
COST,
-0.82%,
which the 97-year old said he likes over U.S. e-commerce giant Amazon.com
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-0.18%.
Costco’s business model is centered on its customer memberships, which means those going into the stores are buying its products. “I predict that Costco will eventually become a huge internet player,” he said.

The retailer’s business model also helps it to keep prices lower as it buys in bulk. “We are all lucky to have Costco,” he said. Berkshire owns Amazon, but not Costco.

Munger also singled out one of Berkshire’s holdings, China electric-car group BYD
1211,
-2.49%,
which he described as “one of the best companies in the world.”

He’s also backing the shift to renewable energy, such as wind and solar. “I love the fact we’re rapidly reducing the burning of coal and the burning of gasoline and diesel…and replacing them with electricity from renewable sources.”

One big dislike that hasn’t changed for Munger is cryptocurrencies, which he believes “should have never been invented.” China made the right decision to ban them, while the U.S. “has made the wrong decision” not to, he said. Bitcoin
BTCUSD,
-0.03%
was trading below $57,000 in the early hours of Friday, but has nearly doubled this year.

Are the FTSE 100 oil majors still worth investing in?

financialnews1 on December 3, 2021

Since the pandemic lows, both BP (LSE: BP) and Shell (LSE: RDSB) have produced outstanding returns for investors who were brave enough to buy – BP is up 77% and Shell 91%. However, the share prices of both FTSE 100 companies have come under pressure recently for two main reasons. Firstly, the emergence of Omicron has led to fears that further lockdowns and travel restrictions will be needed to constrain its spread. Secondly, in order to cool down escalating oil prices, the Biden administration has suggested releasing strategic oil reserves.

Neither reason, in my opinion, changes the underlying investment case for either company. Instead, I believe the pullback has presented an incredible buying opportunity for me. Let me explain why.

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In relation to Omicron, there is still so much we do not know including crucially how transmittable it is as well as its ability to evade protection afforded by existing vaccines.  What I do see at the moment is no appetite amongst governments to introduce further lockdowns and draconian restrictions, particularly not in the UK. Indeed, countries that have gone down this route have been met with significant public resistance.

On the second point concerning the release of strategic oil reserves, such an action will do nothing to address the supply and demand imbalances that have built up over the last few years driven primarily by the ESG agenda. I would go so far as to say that such a release would be a mere drop in the ocean.

The lack of capital investment in oil and gas exploration is the primary reason to believe that prices will, at least in the short to medium term, continue to rise. Unlike in previous commodity bull markets (leading up to the global financial crisis in 2008 and again in 2014) where the world was swimming in oil and gas, today, nothing could be further from the truth. There is a distinct possibility that we could be facing real shortages this time.

Of course, I could be wrong about near-term rising oil prices. Last month, the US Energy Information Administration predicted that oil prices would remain elevated throughout December but would subsequently drop by about $10 a barrel next year as production of crude ramps up and begins to exceed consumption toward the end of 2022.

The inflation genie out of the bottle

However, the fortunes of BP and Shell are not simply tied to the price of oil. Another related point that is worth bearing in mind is rising inflation expectations. Only this week, the Fed finally ditched referring to inflation as a transitory phenomenon. If inflation continues to surprise to the upside, which I believe is a definite possibility, central banks would be likely to accelerate the timetable for tapering the purchase of financial assets, and rising interest rates could, as a result, just be round the corner. That inevitably will precipitate a market correction and potentially a crash, particularly amongst overvalued US tech stocks. The result of such a sell-off would see a rush of capital into the undervalued, and largely abandoned, commodities sector.

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Andrew Mackie owns shares in both BP and Royal Dutch Shell. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Can Bitcoin be an inflation hedge? JPMorgan thinks so

financialnews1 on December 3, 2021

Image source: Getty Images

Bitcoin has been making the headlines recently. The decentralised digital currency hit yet another all-time high at $68,000 on 10 November after reaching $67,000 the month before. Since Bitcoin was introduced to the world more than a decade ago, it has enjoyed a surge in mainstream popularity and acceptance, which is in part due to more widespread institutional cryptocurrency adoption from major companies, as well as the fact that cryptocurrency has found favour with governments and financial firms who are seeking to explore a world of payments beyond traditional banking services. 

Higher levels of cryptocurrency regulation and enforcement globally has broadened Bitcoin’s evolution towards more mainstream acceptance. Indeed, there’s a case to be made that cryptocurrency has proven itself as a growing sector. For instance, the total market capitalisation of all cryptocurrency assets surpassed $2 trillion for the first time in September, a tenfold increase since 2020. 

Also, Square invested $50 million and $170 million in Bitcoin (BTC) during the first quarter of 2020 and the first quarter of 2021 respectively, while Tesla invested $1.5 billion in BTC last year. PayPal also launched a new service enabling customers to buy, hold and sell cryptocurrency. All big news for Bitcoin, but there are more than 13,000 cryptocurrencies currently in existence and analysts have long been discussing Bitcoin’s longevity. 

Well, Bitcoin’s story has taken a new turn lately. The narrative has shifted from it serving as merely a digital currency to a store of value as a hedge against inflation and uncertainty around the U.S dollar’s future purchasing power. In fact, when it comes to hedges against inflation, Bitcoin is looking more and more like the new gold, according to a new note by JPMorgan. 

Bitcoin has outpaced gold year-to-date, with the digital coin up nearly 133% and the yellow metal down about 4%. With gold failing to act as a reliable inflation hedge, more than $10 billion has flowed out of gold ETFs and $20 billion has flowed into Bitcoin funds since the start of the year, according to JPMorgan. 

In another note, JPMorgan analyst Nikolaos Panigirtzoglou said the perception that Bitcoin is an effective hedge against the debasement of traditional currencies is the primary reason for its recent surge to a fresh record high.

The notes come as no surprise for those who have been following investments in Bitcoin in 2021. In April this year, Coinbase noted in its first quarter report that of the $335 billion trades the company hosted that quarter, $215 billion came from more than 8,000 institutional investors, an eight-fold increase in revenue from institutional investors over the prior year. A survey by the Financial Planning Association found that 14% of survey respondents recommend cryptocurrencies as a way to offset losses and beat inflation.

As Bitcoin soars to new heights, inflation is also increasing at record rates. While economic experts dither back and forth over inflation’s duration, we can all agree that inflation drives up costs while eroding the value of savings and the UK’s ongoing inflationary uptick is only set to worsen since the Bank of England predicts that annual price rises will peak above 4% and stay at the level into the second quarter of 2022. 

The new digital gold?

One of Bitcoin’s biggest advantages over other cryptocurrencies (and even fiat currencies) is that it can act as a hedge against inflation over time. Unlike other currencies, Bitcoin can’t be devalued by a government or a central bank distributing too much of it since there is a limited supply of tokens. In fact, there can only ever be 21 million in existence, which should theoretically help Bitcoin retain its value over time. 

Traditionally, gold has been thought of as a preserver of purchasing power during periods of sustained high inflation but gold prices have been flat for almost two years. As inflation has surged over the past year, gold has underperformed and its price has been steadily decreasing over the past 12 months.

Yet, talks of Bitcoin as the new digital gold requires several caveats. Bitcoin and other digital assets may be siphoning some capital away from gold, but it’s too early to say if it’s because they successfully hedge against inflation since Bitcoin’s role as a long-term store of value is currently untested with only eight years of quality data. What’s more, if inflation causes a recession, bitcoin could prove the opposite of a hedge against inflation if people respond by moving money into safer assets. 

Investing in Cryptocurrency is extremely high risk and complex. The Motley Fool has provided this article for the sole purpose of education and not to help you decide whether or not to invest in Cryptocurrency. Should you decide to invest in Cryptocurrency or in any other investment, you should always obtain appropriate financial advice and only invest what you can afford to lose.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

One in four Brits didn’t save any money during lockdown

financialnews1 on December 3, 2021

Image source: Getty Images.

Earlier this year, sources reported that over half of Brits took steps to boost their savings during the lockdown. At an average of £5,000 per household, this was a promising start for many who had never had significant savings before.

However, according to figures released recently, MPs are now saying that one in four Brits saved nothing during the pandemic.

A large number of Brits don’t have a safety net 

According to data shared by the All-Party Parliamentary Group on Financial Resilience, 24% of working-age adults didn’t save any money during lockdown. Even more worrying, 20% of working-age adults say they wouldn’t have enough money to pay their bills at the end of a month if they didn’t get paid on time.

When market research firm Focaldata surveyed 10,000 people this summer, it found numbers were even more worrying. In fact, 35% of Brits said they saved nothing in a typical month. But even among those who had savings to last two or three months, half were not saving any more money at all.

Causes of the savings gap

According to Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, some groups are more likely to struggle with savings than others. This includes women, self-employed people, and those on a lower income.

“Many of those who were able to work from home saved more and now have a bigger savings safety net than ever to fall back on,” says Coles. “Meanwhile, those who lost work, hours or pay have been struggling ever since.”

It’s also an issue that Brits aren’t keeping up with the basic steps to achieve a better financial balance. This includes not only saving but also controlling debt and planning for later life.

Taking steps towards saving

With the year nearing its end, now is the time to take a hard look at your finances. It’s never too early to make money goals for the year ahead. But you can also start by looking at where you can cut corners to free up some money. This could include subscriptions, memberships or expenses you had this year that you didn’t use as much as you expected. Or you can consider new habits you can introduce to reduce costs in 2022.

Other things to do in December to improve your savings rate include:

  • Opening a savings account or a cash ISA if you don’t have one already. You can then set up an automatic transfer from your regular bank account. Even £50 a month is a good start if you haven’t been saving anything until now.
  • Figure out ways to deal with stress spending. Every penny you spend on something you don’t need is a penny you could be saving. Exercise, a meditation app, hiking with your dog or watching a film are all better alternatives than stress spending.
  • Try a money savings challenge. With the new year just around the corner, it’s a great time to try a fun challenge like saving your pennies or saving a certain amount each week. 

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Diana is a writer specialising in debt repayment, savings, and personal investments. Her work has also appeared on MSN Money, Inc. Magazine, and Yahoo! Finance.


Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

Are you guilty of believing these two credit card myths?

financialnews1 on December 3, 2021

Image source: Getty Images

New research reveals that 40% of those in ‘Generation Z’ pay off their credit card balances in full each month, rubbishing beliefs that credit cards are only used by those who undertake irresponsible lending.

So what else did the research reveal? And what other myths are associated with credit card usage? Let’s take a look.

What does the data reveal about credit cards?

A new survey of 2,000 people by MoneySuperMarket, reveals that over half (59%) of Generation Z respondents (those born between 1997 and 2012) own a credit card. Of this group, 40% say they pay off their credit card balances in full each month. Roughly a third (28%) of the same group say they use one to build up their credit score.

Meanwhile, almost a quarter (24%) of respondents say they own a credit card to help manage their spending. Almost the same percentage (26%) say they use their credit cards as a way of bagging rewards.

The research also reveals that Gen-Zers are clued up about the protections offered by credit cards. That’s because more than a fifth (22%) of respondents say they use credit cards to ensure they’re covered if anything goes wrong.  

Of those using credit cards to borrow, 25% say they pay off as much as they can each month. However, 16% admit they pay back only the minimum. While this may seem like risky behaviour, it’s worth knowing that paying back the minimum on a credit card can pay dividends, as long as you borrow on a specialist 0% purchase credit card and clear your balance before the interest-free period ends.  

The survey also reveals that 21% of respondents who are worried about debt blame the 2008 global financial crisis. These worries may be well founded. That’s because many believe the global economy has never fully recovered from the financial crisis. Some claim the crisis is the reason why the UK economy is experiencing low-interest rates, high house prices and stagnating wages.

What myths are there around credit cards?

According to Jo Thornhill, MoneySuperMarket’s money expert, two common myths surrounding credit card usage among Gen-Zers include believing credit cards are only for those who are wealthy and that they’re only viable for those who have a set amount of money.

Commenting on the price-comparison website’s survey results, Thornhill is keen to rubbish these myths. She explains, “When used sensibly, credit cards can provide a flexible alternative to other methods of payment, while building a credit rating at the same time. It’s reassuring that so many 18 to 24-year-olds have credit cards for the principal purpose of building their credit scores.

“However, what we’ve also found is that for many Gen-Zs a lot of myths and misunderstandings abound about credit cards. It’s not uncommon, for example, to hear people say that credit cards are only for rich people, and that you need a certain amount of money to open an account.”

Despite the fact that these myths are common, it is worth bearing in mind that credit cards aren’t for everyone. That’s because if used incorrectly or irresponsibly, they have the potential to trap you in debt for years.

As a rule of thumb, you should only consider a credit card if you can afford the repayments. Try to avoid using a credit card as an excuse to overspend. Always make sure you clear your full balance before the end of any interest-free period.

How can you find the best credit card for you?

Before getting a credit card, search for the type of credit card that’s best suited to your needs. For example, if you’re looking to borrow cheaply, then a 0% purchase credit card may be for you. Right now, there’s a card that allows you to borrow for up to 23 months at 0%.

Alternatively, if you’re looking for a credit card to boost your credit score, then a specialist credit card for bad credit may do the job.

If you’re looking for plastic to take with you overseas to avoid hefty fees, then a travel credit card may be for you.

Finally, if you’re looking to get paid for your normal spending, then a cashback credit card will reward you every time you use it.

Will applying for a credit card impact my credit score? 

Every credit card application you make is recorded on your credit file. If you get rejected for a card, then it’s best not to make lots of other applications. That’s because it may give lenders the impression you’re desperate for credit. Instead, it’s better to space out applications.

To protect your credit score, use our credit card eligibility checker to see your chances of acceptance before applying.

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Those are just a few reasons why our experts rate this card as a top pick for those who spend regularly and clear their balance each month. Learn more here and check your eligibility before you apply in just 2 minutes.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

Will the Halfords share price surge from here?

financialnews1 on December 3, 2021

It’s been a busy few weeks for Halfords (LSE: HFD). The company released its interim results in November, which I wrote about here. At the time, the Halfords share price jumped over 15% on what was an excellent set of figures.

Then, just this week, the company announced it was acquiring tyre and repair specialist National for £62m. Halfords planned on funding the acquisition by selling new shares. This can sometimes cause a share price to fall if the new shares are sold at a discount to the market rate. Not this time though, as the Halfords share price rose over 6% yesterday after the fundraise completed.

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But can the share price surge further? Let’s take a closer look.

The acquisition of National

I’m generally cautious about acquisitions as an investor. Sometimes they can be a great way to grow a business. For example, when BlackRock bought the iShares brand of ETFs (exchange traded funds) from Barclays, it turned out to be a huge success.

At other times, a company’s management might be looking to diversify the business into other sectors. Integrating a new business into a company can be challenging, particularly if management has little experience in the sector itself. It’s easier for me to buy shares in other companies myself so I diversify my portfolio.

I think Halfords’ acquisition of National could be a great one though. National is a tyre and automotive servicing, maintenance and repair business, so it fits nicely into Halfords’ current operations. Indeed, Halfords says it will secure its position as the UK’s largest vehicle service, maintenance and repair business.

Financially speaking, the acquisition is expected to be accretive to earnings as soon as the first full financial year after the investment. This is another good sign in my view.

Funding the acquisition

Halfords proposed to fund the acquisition by selling new shares. When companies do this, there’s always a risk for current shareholders of dilution (owning less of the business than they currently do).

However, Halfords was able to raise £63.4m by selling shares at the going market price of 320p. This is a sign of strong institutional demand for the shares.

Will the Halfords share price surge?

I view this acquisition positively. It’s in a sector that Halfords knows well, and will be earnings accretive in the first full year of operation. The fact that the fundraise was at the market price makes it more attractive as a potential shareholder.

With any acquisition though, there’s always an integration risk. It’s never a guarantee that two separate businesses will work well together. There could also be additional costs involved that haven’t been considered by Halfords’ management team. This happened with London Stock Exchange’s recent acquisition of Refinitiv, and the share price has suffered for it.

Taking everything into account, I think the Halfords share price will do very well from here. Analysts seem to think so too. The consensus target share price is 461p, which is a potential return of 35% as I write. 

So, for me, Halfords is a strong buy for my portfolio.

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Dan Appleby owns shares of London Stock Exchange Group. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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