Category Archives: Finance

Is Solar The Next Big Thing For Cryptocurrency?

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With Bitcoin going big, mining has become a costly and intense exercise. It takes a lot of computing power to validate the millions of transactions that happen on a daily basis. This is why environmentalists are down on Bitcoin as a viable mainstream currency. Mining Bitcoin uses the same electrical output as the entire country of Switzerland.

If Bitcoin is adopted by the masses as a legitimate currency, then there will need to be green hosting solutions and more servers working overtime to compute and complete the encryptions that are the backbone of the currency.

With climate change front and center in many concerned citizens’ minds, it stands to reason that Bitcoin and cryptocurrency in general would need to greenify if they stand a chance at growing.

bitcoin-servers

In this article, we will go over what the future could mean for Bitcoin as it attempts to go green and use solar energy to power itself.

Lines between price and profit

A few years ago Bitcoin was generally stable in its value around $2,000 per coin. This meant that for miners to make a profit they needed to find a cheap way to power the servers to do the computing. Once these companies have mined the cryptocurrency they usually sell it onto the open market to be traded by investors who are looking to convert cash to Bitcoin.

Luckily for them, Bitcoin servers are rather portable in the sense that miners could set up shop anywhere in the world where the cost of energy was cheap.

Now that people are more concerned about the environmental cost of this mining it was not looking good for Bitcoin as a viable currency. At the time, renewable energy was more costly than fossil fuels so it would have cut massively into the profit margin and possibly even seen some losses.

Now, Bitcoin shattered the $20,000 mark per coin and at the same time, the cost of using solar and wind power has dropped dramatically. Suddenly, it is feasible to use solar-powered Bitcoin mining.

This could allow Bitcoin to be adopted by the masses and grow as a currency and still be the responsible thing for people concerned about the environment.

It can go anywhere

There are many places all over the world from deserts to regions around the Equator that get a lot of sunlight year round. And there isn’t much of an economy in those areas which makes it an ideal location for Bitcoin mining centers.

crytpocurrency-mining

They can use solar farms to power the servers and keep costs low since there is no shortage of sunlight. The long days and cloudless skies makes the price per kW hour in those areas very cheap and can compete with fossil fuels.

Another benefit is that bringing cryptocurrency mining centers to those areas can lift the economy. There will be a lot of jobs in construction and maintenance where there was little possibility of work previously.

*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.

Planning To Buy the Best Life Insurance Policy in India? 5 Things to Keep in Mind

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Life is unpredictable and you never know what situation you may find yourself in. While you cannot plan for everything, having financial security does help you tide over unexpected times. It also gives you stability and peace of mind as it enables you to plan for large expenses like a house, a vehicle, or education.

Insurance is a kind of investment that helps you secure your future. It helps not only you but also your family by setting aside some amount for their future well-being. Before you start looking for the best life insurance policy in India, there are some things that you should know about a life insurance policy. Let’s look at the five main things that you should keep in mind.

Best Life Insurance Policy in India

1. Inform your family

You have the best life insurance policy in India and are sure that your family’s future is secured but do they know about it? Always ensure that your family members know about the policy. A good idea would be to keep the policy document in a place where everyone can access it.

Since the policy is aimed at securing your family’s future, ensure that you walk them through the policy. Tell them about the policy number, insurance amount, and what kind of policy you have taken. A great tip would be to note all the important details somewhere where your family can easily look up the details. You could make a note in a digital diary or create a document on your home computer. This helps your family in claiming the money that is due to them without any hassles.

2. Look for high sum assured

While there is no number that can give you the actual value of human life, you do need an estimation of the amount of money you want to leave for your family. Always make sure that you opt for higher life insurance as that ensures that your family is well taken care of when you are gone. Even if you have the best life insurance policy in India, you have to see if it is accurately calculating your human life value.

There is a simple way to judge the amount of insurance. Typically, we would look at how much the person is earning and when they plan to retire. For instance, if Mr. X, aged 30, earns Rs 10 lakh per annum and plans to retire at 60, then the sum that he should aim at is Rs. 3 crores (10 lakh multiplied by 30). This is a simplified way of looking at this, you would also need to account for inflation and any hike in your salary to arrive at the value.

Taking insurance that assures you a sum at the higher end helps your family maintain their current standard of living. This is why it is very important to take a hard look at the assured sum of the life insurance policy.

3. Do your research before buying

This is very important as all policy sellers will tell you that they are the best life insurance policy in India. However, before you buy the life insurance policy, you need to do your research and ensure that it aligns with your financial goals.

Since your family’s future is at stake here, make sure you know the policy thoroughly. There are a few things that you need to look out for in particular. These include the human life value, why you want to insure, the type of life insurance policy, affordability, and the ease of policy servicing. In addition to these, also look at the claim ratio and how the linked funds are performing.

4. Know your needs before you invest

While all agents will claim they have the best insurance policy, does it align with what you want? This is the first thing you need to know. People take out insurance for a variety of reasons- safeguard their family’s future, education expenses, retirement planning.

After you identify why you need a life insurance policy, you can look for the best one for your needs. There is a range of life insurance policies that cater to different needs, and it can be easy to get lost in the information if you don’t know what you are looking for. Look at different online resources like life insurance explained to get a better idea of its finer points.

5. Make regular payments

Once you decide on the policy, ensure that you make regular payments. Simply having the best life insurance policy is not enough to secure your family’s future, you will need to actively invest in it.

Ensure that you keep on track with the payments and avoid a lapse of your policy at all costs. Remember that you are investing in your future and ensuring that your family is taken care of when you are gone.

How Green Financing is Changing the Renewable Energy Market?

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Growing interest in renewables is rapidly changing how energy projects are financed in America and around the world.

One of the biggest shifts has been an influx in outside money into the industry in the form of “green financing” — bonds, loans and other assets earmarked for renewable energy projects around the world.

The rise of the green financing market shows how investors are starting to take renewables more seriously — and it could signal a major transformation of the renewable energy market over the next few years.

Green Finance

Green Financing May Accelerate Renewable Energy Projects

Green financing is a catch-all term for investment in financial vehicles related to renewables and other green industries. Assets, bonds and funds related to renewable energy and other green investments make up the green financing market. In recent years, a robust green financing market has become widely viewed as essential to accelerating the development of new renewable energy technology projects.

Green finance is growing fast. In 2012, the sustainable debt market — including “green” and sustainable bonds and loans — was worth only around $10 billion, according to data from BloombergNEF. In 2018, just six years later, the market was worth nearly $250 billion.

Most of these gains came in the form of new green bonds (sometimes also called “climate bonds”), which are fixed-income investments designed to raise money for new renewable energy projects.

The growth of green financing represents a slow but noticeable divestment away from fossil fuels.

The pivot may also represent a change in how businesses are structured. The growing popularity of bonds as an investment vehicle may enable community co-ops rather than corporations to become a more viable business model for renewable energy providers. For example, the Westmill Solar Cooperative in the United Kingdom has raised more than £6 million ($7.94 million) through bonds offered to investors.

While coil, oil and natural gas are likely to remain a good investment in the short-term, the strength of the green financing market does seem like a signal that, over the next 10 to 20 years, non-renewables will become less and less tempting for investors compared to renewable and sustainable investments.

How Green Financing May Change Energy Around the World?

As the green finance market grows, regulators are beginning to codify what counts as a green investment.

In the EU, for example, regulators recently debated whether plastics manufactured from entirely recycled materials could count as a “sustainable” investment under European finance laws.

These new definitions and regulations may determine which industries receive major funding and which are left out of the green financing boom.

Nuclear energy, for example, is generally not regarded as renewable energy, but is sometimes considered sustainable. Nuclear power plants generate waste, but they also produce zero emissions, unlike fossil fuel-fired power plants.

Natural gas is also not considered renewable or sustainable, as it is a fossil fuel and produces significant carbon emissions when burned for power. However, some proponents of the energy source argue that it should be considered sustainable, as it produces significantly less carbon dioxide than similar fossil fuels.

green-financing

In 2019, EU regulators reached a deadlock over whether or not nuclear and natural gas power plants should count as sustainable investments. In a final compromise, EU lawmakers ruled that both nuclear and natural gas projects were neither included nor excluded in the definition of sustainable by default. Instead, projects would need to prove that they “do no harm” on a case-by-case basis.

Similar rulings and legal challenges could shape the future of energy as governments around the world grapple with the challenge of shifting away from fossil fuels.

A Coming Sustainable Energy Revolution

The rise of the green finance market may change what alternative energy looks like around the world. Legal debates over what should count as “renewable” or “sustainable” may affect which projects receive funding, while bonds and loans may make community cooperatives that provide renewable energy more practical.

As fossil fuels become less attractive to investors and the renewable energy market grows, green financing is likely to have major impacts on the future of renewables.

How Do You Get a Solar Rebate?

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The U.S. government understands the importance of reducing our reliance on non-renewable energy sources so the IRS began offering federal tax incentives for citizens and business owners who install solar electric equipment at their home or business.

solar-rebates-faqs

Frequently Asked Questions About Solar Rebates

Below you’ll find some of the most common questions about getting a solar rebate and how using solar energy can be beneficial in multiple ways:

How do tax credits work?

A tax credit is a dollar for dollar reduction in the total amount of income tax you owe. That means if you claim a 500$ federal tax credit, then your taxes will be reduced by 500$.

How do I get a federal solar tax credit?

You may be eligible for a solar tax credit in the following instances:

  • Your solar PV system was installed between January 1, 2006, and December 21, 2021
  • The solar PV system is located at your primary, or secondary residence, or apart of a community solar project
  • You own the solar PV system and it does not have a lease
  • The solar PV system is new or being used by you for the first time

Check brooklynsolarworks.com for more information about solar incentives, and using solar energy in your home.

What is the current federal solar tax credit?

The solar PV cell needs to have been installed by December 31, 2019, to receive a 30% credit. PV systems installed in 2020 will see a decrease in the credit to 26%.

When will the solar tax credit change?

The future of solar energy is influx over the next few years.  For those systems installed in 2021, the credit will be decreased to 22% and the current solar tax rebate expires in 2022 unless the government decides to renew it.

What expenses does the solar tax credit cover?

The solar tax credit covers the following expenses:

  • Solar PV panels and cells used to provide power for an attic fan, but not the fan
  • Contractor fees for system installation including the preparation, assembly, permits, inspections, and developer costs
  • System accessories including the wiring, inverters, and mounting equipment
  • Sales taxes on eligible solar equipment and accessories
  • Energy storage devices charged exclusively by the solar PV panels

Can you claim a solar tax credit more than once?

The solar tax credit only applies to new equipment being installed. If the equipment has been claimed before, then it cannot be claimed again.

Are federal solar tax credits refunds?

The solar income tax credit does not issue a refund check when you file taxes online or by mail and instead is applied as a credit against the amount of taxes that you owe.

Do federal solar tax credits rollover?

Normally you’ll receive your federal tax credit in the following year after installation of your system, however, if you are unable to use the entire tax credit, then the rebate can be rolled over for up to five years.

How do I file the solar tax rebate?

You must complete IRS Form 5695 and attach it to your federal tax return to take advantage of the solar tax rebate and it will be applied the following year.

Do I have to be a homeowner to claim the solar rebate?

You don’t have to be a homeowner to apply for the tax credit. Tenants that contribute to the costs of an eligible solar system could apply for the tax credit. The tenant must be the owner or part-owner of the solar PV system.

A Beginner’s Guide To Investing In Oil

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Thanks to the Internet, you do not have to move to an oil rich country, such as Russia or the United States of America, to be able to invest in this commodity. Even better is that you do not need a lot of money to do it either. A good oil investments opportunity does not have to cost you the Earth.

How To Invest In Oil

How To Invest In Oil

There are a number of different ways that a person can invest in oil, with most of them not requiring you to physically hold the commodity. For example, you can invest in stocks that are related to oil, oil futures, and mutual funds. However, in order to be able to do any of these things, you must have a brokerage account.

1. Oil stocks

These allow you to invest directly in the companies that are involved in the extraction and production of petroleum from the Earth. It is important that you do lots of research before making a purchase of a stock or stocks in a particular company. It is prudent to have a diverse portfolio in index or mutual funds rather than just individual stocks.

2. Oil futures

This is an advanced way of investing in oil and allows oil producers to lock in a certain price for the commodity in advance. The same is also true for investors – the price at which they are purchasing the commodity at is also locked in. They are essentially contracts between the two parties to agree to exchange an agreed upon amount of oil for a certain price on a specified date.

So when trading these types of investments, it is actually the contract that you are trading, rather than the actual commodity. When there is a fluctuation in the price of oil, the contract could become more valuable and it is at that point that you should sell it for a decent profit. However, the opposite can also be true and you could end up losing money with this type of investment.

Risks of the Oil and Gas Industry

3. Oil mutual funds

These are like baskets of oil stocks that investors are able to purchase all at once. Index funds and exchange traded funds are a great way of easily and quickly diversifying your portfolio. However, this diversity is diminished when only investing in an oil mutual fund. Also if the industry was to suffer for whatever reason, oil mutual funds would perform worse than a more diverse investment fund.

How Much Money Do You Need To Invest In Oil?

Investing in oil can be done by most people regardless of their income – you do not have to be super rich. There are quite a few oil stocks that are well known and that trade for less than $100 each. EFTs also provide another cheap way of investing in oil. They are traded on an exchange and individual’s are able to buy these shares just like they can stocks. Lots of EFTs are valued at less than $30 each.

Financing of Solid Waste Management Projects

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Financing of solid waste management projects can be pretty overwhelming for the city government, especially if the government see it as a critical part of the service they should render to the citizen and if the citizen also hold it as a basis for measuring the performance of the government and using it as one of the conditions for re-election.

The increasing cost of waste disposal is a cause of major concern in developing nations

Solid waste management entails different aspects. Generally speaking, waste management consists of pre-collection, collection, transportation, storage, treatment, and disposal. The modern hierarchy of waste management includes prevention, minimization, reuse, recycling, energy recovery, and disposal.

All these aspects require proper funding in rendering a good waste management service to the society. As citizens, we hardly give any thought to the different aspects and what it takes to ensure it is carried out efficiently and effectively.

Financing Options for Solid Waste Management

There are four different options for financing of solid waste management projects. The option chosen will be dependent on various factors. The chief factor will be “what is the end goal of providing waste management service to citizen” and this is to be determined by the city government. Therefore, we say finance option is directly related to waste management goal of a city or State.

Public Financing

This primarily involves funding of waste management service entirely by the government through budgetary allocation. The government determines how it will generate the cash for service and this can be through taxation or redistribution of funds generated from other sources like sales of city natural resources or combination of various sources of funds.

In developing countries, this is generally inefficient due to the corruption within the government and lack of proper waste management capabilities in most instances. The government might decide to charge a service fee or not.

Private Financing

This involves infusing funds from the private sector into waste management service and also overseeing day-to-day running of the service. However, the hired company will charge a service fee which will be determined by calculating the amount of invested funds, operating cost, and profit envisaged. This will be spread over a period of time.

This financing option can deliver optimal result in providing waste management service but the private sector needs to be checked in order not to set a high fee that will end up scaring citizens which might lead to citizen abhorring the service.

Public-Private Partnership (PPP)

This is a special type of arrangement which brings together the government and private sector in providing funds and management capabilities for the delivery of waste management service.

All things being equal, this arrangement is best because the government will be able to regulate and have a say in how the service should be delivered especially as it relates to the setting of service fees which might be difficult in the solely private financing option. The PPP can equally be extended to be a Joint Venture (usually termed as Institutional PPP).

Recycling trash adds value to the community’s economy and allows those in need of money to find new work. If you need money quickly, banks, credit unions, and reputable lenders like PaydayChampion are common options.

Donors and Grants

This funding mechanism is dependent on the interest of the donor organization. While it is a good way to develop a city’s waste management infrastructure, attracting and utilizing grants is solely reliant on what the donor considers as important. Hence, it might be difficult for a city government to dictate how the funds should be distributed among the various aspect of waste management.

Waste management projects based on public-private partnership (PPP) model has more chances of success in developing countries

However, this type of financing can be combined with a PPP arrangement to cater for a specific waste management aspect that is in tandem with the interest of the donor and can be part of the city government contribution to the PPP.

Conclusion

In conclusion, waste management financing is quite dynamic just like many other services and infrastructure provided by a city government and the best option for financing the provision of waste management service can only be made after appropriate due diligence and consultation with relevant stakeholders has been made and observed.

The Premiums You Pay Actually Save Your Money – Know-How!

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As a contract between the insurance company and the insured, these life insurance plans contain a valid consideration to be enforceable by law. Paying off premiums forms the base of the contract, which makes it complete.

The decision to choose a policy is often influenced by the premium rates and the affordability of the plan. However, we ought to not sacrifice the policy coverage to save on insurance premium payments.

Bringing that compromise would defeat the purpose of the insurance plan, which is to secure financial security for our loved ones when we are gone. Financial risk management requires the use of life insurance.

how premiums lead to better returns in long run

Regardless, two people of the same age living in different locations will be offered a different level of coverage or a different premium if they have different medical conditions and income-earning capacities.

It is advantageous to purchase a life insurance policy at a young age, such as 28 or 30. Life insurance plans that are purchased at a young age are cost-effective. The more you age, the more responsibilities you face, and, at that stage, a life insurance policy becomes a necessity and, due to the increased age, the premium increases.

Do life insurance premiums come in different types? How often do you have to make premium payments? What are the rules concerning tax benefits for life insurance premiums paid in your name or the name of specified family members? You should know these basic rules.

Discounts Offered On Life Insurance Premiums

Many insurance companies offer discounts on premium rates depending upon the sum assured and the modes of premium payment. This is precisely what the term rebates means.

1. Rebate for periodicity of premium

Insurance policies usually require periodic premium payments, and depending on one’s cash flow, annual, semiannual, quarterly, or monthly payment schedules can be chosen. If the company collects premiums more frequently, the costs of handling them (collection, processing, and administrative expenses) tend to increase.

The company has access to the funds longer (for investment) if the premium is paid at once for the entire year as opposed to monthly. The company can use those funds for investing and offer you cheaper rates.

2. Rebate for online payment

In general, the company’s servicing cost for online premium payments is lower than for physical payments. Also, the company saves money by not paying agents’ commissions when physical policies are sold.

Accordingly, various companies may already have given a rebate before quoting the rates for online premium payments. The premium rates quoted should already include the rebate, else the rebates offered will be higher than those offered with a physical payment.

3. Extra Premium

The normal premium tables apply to people whose lives have no additional risk, which is known as ‘standard lives’ in the insurance industry. Ordinary premium rates apply to people with standard lives. Occasionally, the insurer may charge extra premiums for people with health issues such as diabetes or heart disease or who work in hazardous occupations.

Additionally, insurance covers are also charged extra if they are purchased alongside the base policy (known as ‘Add Ons’ in insurance jargon).

4. Level premium

The term level premium describes insurance policies in which the premium remains the same throughout the contract. In this case, the premium level is guaranteed and the company cannot change it at a later date.

In most cases, life insurance plans, except for life insurance plans that pay level premiums, this is advantageous to the life assured and the insurance company. The term level premium describes insurance policies in which the premium remains the same throughout the contract.

Here, the company is guaranteed to keep premium levels and cannot change them at a later date. Both the life assured and the insurance company benefit from the level premium payment process, and thus most life insurance plans, except for some term insurance plans, are level premium payment plans.

5. Increasing and decreasing premium

Term plans with increasing premiums (as explained above) are typical examples. An increasing premium applies to mortgage redemption policies in which the premium drops as the policy holder’s outstanding loan balance decreases.

6. Single premium

Single premium policies are typically only available to people with higher incomes or who have idle funds.

7. Non-payment and late payment

A “grace period” is usually outlined in most policy contracts, which allows the policyholder an extension to pay the premium after the due date. The policy will continue to be in effect during this period if he pays the premiums without incurring any additional fees.

Best Life Insurance Policy in India

If your life insurance policy is for something other than term insurance, the grace period for monthly payments is generally 15 days, and for other frequencies of payments (quarterly, half-yearly, yearly) it will be one month but not less than 30 days. Term insurance policies usually have a grace period of 15 days.

8. Tax Benefits on Premiums

Tax-deductible life insurance premiums paid by the policyholders for themselves, their spouses, or their children may be deducted from taxable income under section 80C of the Income Tax Act. Section 80C can’t be applied to premiums paid for policies owned by other third parties (other than a spouse or children) such as parents (fathers, mothers, or both) or in-laws. These are not applicable as a new tax slab taxpayer.

Final Words

The purpose of this article is to help people understand how premiums lead to better returns in long run. Instead of being frustrated as you pay premiums or your life insurance plans, you switch your mindset into a positive one by understanding that the money paid as a premium is not wasted. It will bring countless benefits for you in the years to come.