Author: Christina Comben

Want More Money in Your Savings Account? Congress Will Help Out

As part of the Tax Reform 2.0, the House passed the Family Savings Act of 2018, a proposal meant to help people:

“save more and earlier throughout their lives by expanding access to new and existing savings vehicles.”

Great idea! But the sad reality is that this law is still woefully far from representing where most Americans are right now.

The House and the Senate need to find a way to accommodate the Family Savings Act with the RESA (Retirement Enhancement and Savings Act) by the end of this year.

Contributions up to $2,500 a Year

The Family Savings Act encourages savings, at a time when most Americans are struggling to preserve wealth. In fact, the numbers are alarming: 57% of Americans have less than $1,000 in their savings accounts. Moreover, 40% of all citizens have no savings at all.

As a component of the new bill, taxpayers have more disposable income. They can create a universal savings account and contribute up to $2,500 every year.

The good news is that once you have this account, you can withdraw the funds tax-free for any use. And you won’t pay any penalty, regardless of when you decide to take the money out of your account.

The Tax Reform 2.0 bill changes the section 529 Education Savings Plans as well. You can use tax-exempt distributions to pay for higher education expenses, which can include books, supplies, participation in an apprenticeship program, and even homeschooling expenses, (no, sadly, luxury travel and fine dining don’t count).

An Improvement to Retirement Plan Rules

The Family Savings Act in 2018 also looks to expand and preserve retirement savings accounts. If you have less than $50,000 in your eligible retirement plans, Title I of the bill releases you from the required minimum distribution rules.

The new bill also allows employees to transfer their 401(k) annuity (or similar plan) to an IRA without paying taxes. However, taxpayers should know that this change is permanent from this year on, so they can’t then go back and change the characteristics of their IRAs.

Another crucial change involves penalty-free withdrawals from retirement plans to cover new child-related expenses. If you adopt or give birth to a child, you can use the money in the 403(b), 457(b) or IRA to pay your expenses, with the chance of reintegrating the funds in the future.

The short-hand? The Tax Reform 2.0 isn’t going to make any drastic changes to your life. But it might encourage you to save for a rainy day or get back into higher education. Just think of all those “educational” expenses you can write-off now.

Featured image from Shutterstock.

October 12, 2018
Is This Snapchat’s Swan Song? Original Shows to Lure Back Users

Despite its critics, a dwindling user base, and freefalling stock price, Snapchat refuses to give up without a fight. Now the social media app is trying another desperate move to counter Instagram’s popularity and hold onto its slice of the market.

The photo-based social media app revealed its first batch of Snap Originals, a series of interactive shows meant to generate buzz among teenagers.

Snapchat has been losing users for a while now, with the company’s market value dropping by more than $1 billion this year. Its developers hope to lure back their lost audience and attract new users with experiences that people can step into and share.

The new shows are supposed to make Snapchat a competitor not only to Instagram but to Netflix and Hulu as well.

Will Snap Originals Save Snapchat?

Snap Originals are similar to TV shows and include a full series of content offers, from documentaries to teen drama–all shot vertically to be watched from smartphones. For this project, Snapchat is working with influencers and social media stars, like Summer McKeen and Dylan Jordan.

By jumping on the social influencers train, Snapchat aims to generate a new trend with social media users, especially teenagers and young adults. Rumor also has it that the company is ready to onboard more advertisers as well, with commercial spots inside the shows. Nick Bell, Snap’s VP of Content told CNN.

“If the programming really resonates with the demographic… people will go into school or the workplace, [and] they’ll tell their friends about it. We hope that will bring new people into the app.”

The shows have their own section inside the app, are shareable, and can be marathon watched, as well. The first programs revealed last week include a series on university life called “Co-Ed,” and a drama about teen drag queens, “Growing Up is a Drag.”

Fewer Users, More Money – For How Long?

With 188 million users (down from 191 million), Snapchat is way behind Instagram, which claims to have over 1 billion monthly users. Snap lost a lot of its popularity after a woeful redesign in February, that aimed to enhance the use of video instead of photos on the platform but went down like a led balloon with its users.

Scrambling to fix the faux pas, Snapchat’s developers had to pull the plug on their algorithm and go back to chronological listing instead.
Despite losing three million users in the second quarter of 2018, the company managed to grow its revenue.

It seems that brands and advertisers are still interested in Snapchat thanks to its young audience. But, since Snapchat’s stock has been in a tailspin, it’s going to have to work pretty hard to restore shareholder confidence.

October 12, 2018
Meet the Top 10 Richest People in India

They say that money makes the world go around. While India’s sure got its fair share of people (over 1.3 billion on the last count), the South Asian tiger also has a pretty high concentration of billionaires–121 to be precise. In fact, India is home to the third largest number of billionaires in the world, after China and USA respectively. So, who are the richest people in India? Let’s take a look.

1. Mukesh Ambani

With a net worth of $47.3 billion, Ambani tops the list of the richest people in India. He also takes the 19th spot in the global billionaires’ list compiled by Forbes for 2018. An Indian business tycoon, Ambani is the chairman, MD, and of course the largest shareholder of oil and gas giant Reliance Industries Limited, one of India’s most valuable companies and a Fortune 500 company to boot.

He’s also partial to a little cricket, being the owner of Indian Premier League cricket club Mumbai Indians. Ambani’s initial wealth was handed down to him by his father, who was a self-made success starting out in textiles and spices. India’s richest man had no formal education, instead, receiving life skills from a personal tutor hired for him and his siblings. He learned about the world by taking field trips, riding on public transport, and working with his father.

Curious fact? This energy and petrochemicals magnate amassed a further $16.9 billion over the last 12 months. How? Well, it’s easier when half of your country’s decisionmakers are on your payroll. No finger pointing here, though.

2. Azim Premji

Premji’s net worth is estimated at $21 billion and he’s widely known as being India’s top tech magnate whose company Wipro is the third-largest outsourcer. Beyond being a tech tycoon and savvy investor, Premji is a socially responsible billionaire, setting up the Azim Premji Foundation in 2000 to provide elementary education to rural areas in the country.

Premizi is number 58 on the global billionaire’s list and has a Wipro center in Silicon Valley. He also just won a key 10-year contract worth $1.6 billion with Alight Solutions of Illinois. Any skeletons in his closet? Not really.

It seems that Premzi is actually on the front lines fighting against corruption in his country, frequently speaking out on the topic and even calling out the Indian government on it. Writing an open letter to the Indian government with fellow tech entrepreneurs from Mahindra and HDFC, he said:

“Possibly, the biggest issue corroding the fabric of our nation is corruption.”

3. Lakshmi Mittal

Lakshmi Mittal made his $18.3 billion net worth from the commodities industry, serving as CEO and chairman of the world’s biggest steelmaker, ArcelorMittal. Benefiting from the overall recovery in the steel industry, this heavy metal magnate is buying up flailing steel manufacturers around the globe, including Italy’s loss-making steel group Ilva for $2.1 billion in June last year.

While Mittal makes the Forbes list for richest Indians, he’s actually based in the UK and frequently appears among Britain’s richest men. Mittal owns almost 40% of ArcelorMittal and also holds 11% of Queens Park Rangers football club.

Known for his luxurious tastes, Mittal imported marble from the same quarry used to build the Taj Mahal to decorate his UK home. He’s had his fair share of corruption charges as most self-respecting billionaires have, and his relationship with politicians and decisionmakers was thrust into the spotlight some years back.

4. The Hinduja Family

Taking the fourth spot on India’s richest people list is a family of four siblings, Srichand, Gopichand, Prakash, and Ashok. With a combined net worth of $18 billion, they control the multinational conglomerate the Hinduja Group.

These siblings have a range of businesses in their command, from trucks and lubricants to cable television and even banking. They also own some of the most expensive real estate in London and live in the UK, Geneva, and Mumbai overseeing their interests.

The Hinduja brothers Srichand and Gopichand are credited with saving London’s Millennium Dome’s faith zone but were implicated in corruption charges at the same time in 2000 for their supposed long-running involvement in the Bofors arms scandal which would eventually lead to the Indian Prime Minister Rajiv Gandhi’s downfall. The charges were later dropped in 2002.

5. Pallonji Mistry

Pallonji Mistry has an estimated net worth of $15.7 billion, controlling the Shapoorji Pallonji Group, a construction and engineering behemoth located in Mumbai. Known for his reclusive tendencies, Mistry’s younger son Cyrus is the one hogging the headlines, entering into a distasteful scrape with the Tata Group after being ousted from his chair at Tata Sons in October 2016.

The Tata Group is one of the most respected and successful companies in India with a squeaky clean reputation and a staunch denier of corruption. So Cyrus’ claims that the company was involved in a corruption case with AirAsia is displeasing to all involved. Not least, Pallonji, whose family’s biggest asset happens to be an 18.4% stake in Tata Sons.

6. Shiv Nadar

As the chairman of HCL Technologies, Navar is a tech entrepreneur with a net worth of $14.6 billion, presiding over a company that makes $7.5 billion in revenue and is also India’s fourth-largest software services provider. Founding HCL from his garage in 1976, with a focus on microprocessors, Nadar is self-made all the way.

He’s also an example of an astute businessman who knows when it’s time to diversify his assets. HCL invested some $780 million into a partnership with IBM over intellectual property. Nadar, like Premji appears to be a pretty decent guy and recognized as a leading philanthropist in India, setting up the Shiv Nadar Foundation dedicated to education.

The only thing that Nadar and plenty of India’s other self-made iT millionaires have been accused of is crony capitalism on more than one occasion. Silicon Valley investors would have no idea what that looks like.

7. The Godrej Family

Another family to make the richest people in India list is the Godrej family with a combined net worth of $14 billion. They run the family business the Godrej Group, a century-old consumer goods giant that racks up $4.6 billion in revenue.

The mega-rich family also owns a vast parcel of land in suburban Mumbai, which is thought to be their biggest asset. When it comes to corruption or scandal, this family’s managed to keep its noses clean.

They were also part of the group writing the open letter to the Indian government raising their concern over corruption. But, they’ve also been accused of crony capitalism and keeping the wealth in the same tight circles.

8. Dilip Shanghvi

With an estimated net worth of $12.6 billion, Dilip Shanghvi is one of the richest people in India. Coming from humble beginnings, Shanghvi borrowed $200 from his father, a pharma distributor, to set up Sun Pharmaceutical Industries in 1983 with a focus on psychiatric drugs.

Today, Shanghvi’s company is the world’s fourth largest producer of specialty generics. It’s also India’s most valuable pharma operation with revenues this year surpassing $3.5 billion. This astute billionaire grew his empire through a series of acquisitions including rival Ranbaxy Laboratories for $4 billion in 2014.

While he’s still India’s 8th richest, not so long ago he held the top spot, losing $14 billion in just two years after shares in Sun Pharma plummeted by more than 50%. On a personal level, Shanghvi seems a pretty decent guy, often called humble by the Indian press. He also invests in renewable energy and, presumably to hedge his bets, oil, and gas as well.

9. Kumar Birla

With a net worth of $12.5 billion, Birla is a is the true king of commodities and is the fourth generation to run the Aditya Birla Group, with eyewatering revenues of $44.3 billion. Aditya Birla Group’s interests are far-reaching and cover commodities like aluminum and cement, as well as telecom and financial services.

Inheriting the family empire at the tender age of 28, Birla has been used to owning wealth. He’s also had plenty of years running a business hands-on, acquiring US aluminum producer Aleris this July for $2.6 billion and merging his Idea Cellular with Vodafone India to become Vodafone Idea, in August, now India’s largest telecom firm.

This Indian business tycoon has been implicated in his fair share of scandals and corruption charges. The latest of which involved an alleged payment to Indian Prime Minister Modi in 2016. He unsurprisingly claimed to be unaware of this.

10. Gautam Adani

Currently coming in 10th in the richest people in India list is Gautam Adani with a net worth of $11.9 billion. Adani isn’t into technology or pharma. Instead, he controls the Mundra Port, which is India’s largest in his home state Gujarat.

Besides having dominion over the ports, the Adani Group’s interests stretch to real estate, commodities, and power generation. Some of this billionaire’s most notable assets include Australia’s Abbott Point port and the Carmichael coal mine, the biggest in the world.

A little digging into the operations of the Adani group and you’ll find corruption charges abound, as well as plenty of accusations of paying off government officials, including Indian Prime Minister Modi. He’s also been accused of using tax havens to shelter his money and the Carmichael acquisition was shrouded in controversy.

The Richest People in India

So, there you have it, the top 10 of the richest people in India. From buying up politicians to payrolling key decisionmakers, it’s pretty clear that getting other people in your pocket is helpful when growing an empire.

That said, the findings are not all bad, with plenty of India’s richest people also giving back to the community. And as for crony capitalism? Well, the gentleman’s club is a pretty global phenomenon. It would be disappointing if India wasn’t a paid-up member as well.

October 12, 2018
Asian Stock Markets Show Signs of Recovery

It’s been a pretty grim week for global stock markets, although investors can take some solace as Asian markets show signs of recovery this Friday. Large selloffs in US stocks spurred by fears over rising interest rates this week spread to Europe and Asia.

Wall Street saw another sharp fall on Thursday, leading to a losing streak of five sessions for which President Trump blamed the “crazy” and “out of control” Federal Reserve.

Yesterday, the S&P 500 index fell by a further 2.1%, meaning the US benchmark was down by 5% over the week.

When America sneezes the rest of the world catches a cold, and the global FTSE All-World index also retreated for its sixth successive day, erasing all gains made in 2018 and making it one of the worst weeks of the year for global stock markets.

Signs of Recovery in Asia

On Friday, the selloffs continued, but at a slower pace. In Tokyo, shares were down by 0.5% by midday compared to 3.5% on Thursday. Hong Kong shares began the day trading up by 0.4% and shares in Taiwan also rallied by 0.7%.

Futures trading markets also show signs of bouncing back and indicate a stronger opening today for London and New York equities. It seems that after the sharp downturn, global stock markets are beginning to correct themselves with shock charts turning green again in Aisa.

The large selloffs appear to have been triggered by a turbulent US Treasury market and the Federal Reserve’s decision to hike interest rates again. President Trump has been highly critical of the Fed, strongly disagreeing with their decision, and calling the rising interest rates “out of control.”

Global Stock Markets Look to Rally

Global stock markets have been left bruised and battered with the pinch particularly felt in Asia in the wake of the trade war between China and the US. Moreover, account deficit countries such as India and Indonesia have suffered even more as large importers of oil.

We’ll have to wait and see if Asian trading today leads to a firmer start for Europe and Wall Street. But the signs are showing that the global rout in stock is beginning to abate.

Featured image from Shutterstock.

October 12, 2018
Uber Looks to Raise $1.5 Billion from Debt Investors

It seems that Uber isn’t content with making colossal losses. They’re looking to get further indebted as well to the tune of $1.5 billion. In what may be the company’s first foray into the junk bond market, Uber now seeks to raise their next astronomical sum of cash in high-yield bonds.

Teaming up with Morgan Stanley, Uber is working on a private placement that could yield between 7.5-8% on $500 million in 5-year notes and a further $1 billion in 8-year notes.

Uber Is in Good Company

Uber isn’t the only unicorn posting losses left and right with WeWork tripling its losses in 2017. It’s also not the first to get into high-yield bonds. The office-space provider entered into a $702 million deal earlier this year, as did Tesla with $1.8 billion in 2017. Even the ride-hailing company itself has already raised billions from creditors.

In fact, this new transaction comes just a few months after Uber sold $1.5 billion in leveraged loans that were marketed directly to investors. And Uber’s first leveraged loan deal took place in 2016 for the same amount.

Fundraising Like It’s Going Out of Style

The upstart startup has been raising funds like it’s going out of style, including from private equity investors. That includes some $9 billion from a consortium led by Japan’s SoftBank. Toyota also invested half a million dollars in Uber as part of a collaboration effort to look into autonomous vehicles. We all know how well that’s gone so far.

But it seems that Uber’s appetite for stockpiling funds can’t be satiated and their return to the debt market looks to be opportunistic. Under normal circumstances, high-yield investors will try to gauge a company’s health based on cash flow and earnings compared to its debt burden, all of which are disastrous metrics for Uber.

However, most investors recognize that these analyses aren’t appropriate for loss-making companies like Uber and that they may need to carry out their own research on how the company will be able to repay their debt.

Since Uber appears to have a cash burn problem, it doesn’t seem like there will be much interest from investors in getting saddled with Uber’s bad debt. Although, a few ears will be listening since the interest rate on the bonds is so high.

Uber IPO Ahead

While Uber has its sights set on going public, its IPO isn’t targeted until next year. In the meantime, that’s a lot of time left to blow through extra cash. Uber seeks a further $1.5 billion to ramp up its business efforts to compete in new businesses such as bike and scooter sharing and food delivery.

Uber CEO Dara Khosrowshahi believes that it will still be some time before the company becomes profitable. They need to invest in further avenues of growth first.

“We suffer from having too much opportunity as a company,” he reportedly said. Sounds like a nice problem to have.

Featured Image from Uber, Uber CEO Dara Khosrowshahi

October 11, 2018
Is Fox CEO James Murdoch Set to Take Over Tesla Chair?

After Elon’s run-in with the SEC, there’s an empty seat on the Tesla board. But that could be about to be filled, as charismatic media tycoon James Murdoch expressed his interest in taking over. As one of the world’s most innovative and ambitious companies, a seat on the Tesla board is a hotly contested spot.

Murdoch is far from the only horse in the race to keep leather covering warm. But according to an article by the Financial Times, he looks to be the favorite to succeed Mr. Musk as the new Tesla chairman–a position that must be filled by the middle of November.

Elon Musk Damaging Tesla Stock

Social media, particularly Twitter, seems to be the downfall of many a celebrity who can’t keep themselves from getting into Tweet wars or rants in public. However, it’s not a healthy addiction to have.

When it comes to everyday people, we might get anxious, irritated, or even amused by getting into fights on Twitter. But when it comes to billionaire businessmen with a duty to their shareholders, things are a lot more serious.

In fact, making certain knowledge public on social media can be considered as breaking the law. Mr. Musk was forced to leave the role as Tesla chair in a settlement deal with the SEC after they claimed he broke the securities laws following a tweet that he had the “funding secured” to take the electronic car manufacturer private.

While Musk is staying on (for now) as Telsa’s CEO, the SEC requires the Chairman’s seat to be filled by an independent party and non-executive of Tesla. According to the FT, Mr. Musk declined to comment, although later replied to the FT tweet stating that Mr. Murdoch was the frontrunner, saying:

“This is incorrect.”

Short but to the point. He negated to reply anything further. It’s well-known that Musk’s favored candidate is Antonio Gracias, Tesla’s lead independent director. However, Musk has already been advised that his relationship is not independent enough due to his involvement with Mr. Musk and his companies.

Mr. Gracias is the owner of Valor Equity Partners that invested in Tesla in 2005. He also invested in SpaceX.

Mr. Murdoch was also not available for comment, however, those close to the media tycoon said that he had expressed his willingness to take up the role. It looks to be a sensible move for Murdoch since he will soon be stepping down as chair executive of 21st Century Fox once the sale to Walt Disney is completed. He also stepped down as Sky’s chairman following the company’s sale to Comcast.

James Murdoch Gives High Praise for the Tesla Tycoon

At a recent on-stage interview at a Goldman Sachs conference, Murdoch spoke well of Musk and his time as a Tesla director. Calling Elon and his companies “exciting” and “audacious.”

Murdoch is also a friend of Musk, having joined Tesla last year as an independent director thought to help strengthen the board. His appointment, however, seems to have failed to do that, as they continue to pander to Mr. Musk’s outlandish wishes.

Murdoch was, in fact, one of the directors who praised Musk’s rejection of the SEC deal that saw 14% shaved off of Tesla’s shares. This may not make shareholders so thrilled at the possibility of having Murdoch take over the position.

Tesla has until the middle of next month to find a replacement, although this period can be prolonged upon Mr. Musks request.

Featured image by NRKbeta.

October 11, 2018
If the Fed Has “Gone Crazy” Is Jerome Powell Next on the Chopping Block?

If you were after an in-depth analysis of the latest interest rate hikes from the US Federal Reserve, you won’t get one asking Donald Trump. “I think the Fed has gone crazy,” he said, stepping off of Air Force One. And in case you thought he might want to retract the statement, he then repeated it.

Which leads to an interesting question. If the Fed has indeed lost its mind, does that mean that Fed Chair Jerome Powell is also insane? And if he is, should he be allowed to hold a seat of that magnitude?

Mr. Trump has voiced his disapproval over rising interest rates for some time now, accusing them of going too fast with interest rate increments. Back in July, he told CNBC:

“I’m not thrilled about it… We go up and every time you go up they want to raise rates again… I am not happy about it. But at the same time, I’m letting them do what they feel is best.”

Yesterday, on the back of the worst trading day in the US stock markets in months, Trump wasn’t quite so diplomatic:

“I think the Fed is making a mistake, they’re so tight. I think the Fed has gone crazy.”

He then repeated that sentiment a few seconds later.

This Wednesday saw the worst day of selloffs for the S&P 500 since February, the worst for the Nasdaq since the Brexit vote, and caused the Dow Jones Industrial Average to drop more than 800 points.

Should the White House Interfere with the US Federal Reserve?

The Federal Reserve raised short-term interest rates for the third time this year last month, indicating that plans are to continue slowly with the push. In fact, there are plans for a further rise at the end of this year, followed by three more increments in 2019.

Is it normal for a US president to comment on decisions made by the Fed? No. Especially since the bank is meant to be entirely free from political pressure. But then, there’s nothing normal about the 72-year-old man currently holding office in the White House. Mr. Trump is certainly not known for holding back when it comes to giving his opinion.

The US president feels that rising interest rates are in conflict with his goals of making America great again. High interest rates affect the strength of the dollar and could potentially force the growing American economy to slow down.

However, Trump’s lambasting of the Fed’s decision, calling it “crazy,” has to make you wonder. If that’s really the case, what is the world’s most powerful economy doing with a crazy person at the helm? Now there’s a question that’s been posed before.

In a later statement on Wednesday by White House press secretary, Sarah Sanders, she said that even after Wednesday’s selloffs, “the fundamentals and future of the US economy remain incredibly strong.”

Featured image from Shutterstock.

October 11, 2018
Epic Games Buys Kamu to Improve Fortnite’s Fairness and Security

Good news for Fortnite fans of all ages. Epic Games, the company behind the popular video game, made a winning move by buying security firm Kamu.

Epic says that it’s trying to protect its players after thousands of people downloaded a virus-filled app that promised to generate V-bucks, the in-game currency used in Fortnite.

This isn’t the only time Fortnite has been the target of cyber attacks. Hackers also used another fake app to track the players’ locations and spy them through their devices’ cameras.

Kamu Has More Than 100 Million Users Worldwide

The Helsinki-based Kamu was established in 2013 to work on player administration, game telemetry, and game security, among other services. The company developed “Easy Anti-Cheat,” a service that incorporates anti-cheat software and multi-player game management. Kamu is presently used by more than 100 million gamers around the globe.

Besides improving cybersecurity, the company is also looking to use Kamu’s technology to ban cheaters from the game. Epic Games is already fighting this issue through a series of legal actions that include prosecuting a 14-year-old over claims that the underage player had “unlawfully modified” Fortnite and created “unauthorized derivative work.”

Before the buyout, Kamu had already partnered with Epic to improve players’ security and enforce better fairness features. Epic Games CEO Tim Sweeney said:

“Kamu’s team and tools have been key to building a vibrant Fortnite multiplayer experience that’s fair for all players.”

Besides working on Epic Games products, Kamu will continue to provide their services to their existing customers, whether they use the Epic’s engine or not.

Epic Games will also use this acquisition to establish a strong presence in Helsinki and consolidate its position in Europe. The company plans to recruit new talent for developing its engine, online services, and other technology.

Fortnite Is More Important Than Cryptocurrency

Fortnite is by far the most successful video game on the planet, having over 125 million enrolled players. In May 2018, the game brought in $318 million across the console, PC and mobile categories, making about $2 million a day from iOS users only.

The Fortnite phenomenon has conquered gamers of all ages–and created panic among parents and even sports teams that now have to deal with possible Fortnite-addicted baseball players.

During the most recent earnings season, Fortnite surpassed crypto, in terms of how many times it came up in company calls to analysts. Fortnite registered 54 mentions from executives and analysts at tech giants, compared with talk of cryptocurrency, that was mentioned just 45 times.

Featured image from Shutterstock.

October 10, 2018
You Don’t Have to Sell Your Soul to Be Rich – Socially Responsible Billionaires

Do rich people only care about making more money? Not anymore. There’s a new generation of socially responsible billionaires looking to make the world a better place (at the same time as counting their cash).

From investors placing their money in green companies only to entrepreneurs who want to be known for the issues they care about, check out four of the most famous socially responsible billionaires below–and how they’re changing the world.

Larry Page

Larry Page is the co-founder of Google and number 12 in the Forbes List of Billionaires, with a net worth estimated at $39 billion. Besides his interest in consumer data, this entrepreneur puts a lot of effort into developing the charitable side of Google.

Thanks to Larry Page, Google develops technological solutions to help charities and organizations that fight hunger and poverty. The tech giant has adopted a series of green policies to reduce its carbon footprint and invests in renewable energy as well.

Evan Spiegel

Evan Spiegel is the co-founder and CEO of Snapchat. Even if his company did lose almost 40% of its value since its launch on the stock market, Spiegel is still worth around $2.5 billion and is one of just four self-made billionaires under 30.

Spiegel is only 28, but he has already stated his vision of the world on several occasions. Spiegel said at Code 2018:

“Life is really about having an impact on the world, changing the way that people experience the world, changing the way that you experience the world.”

Evan Spiegel contributed to raising money for AIDS research and community service in California. In 2017, the founders of Snapchat started the Snap Foundation, an organization that supports art and education.

Nathan Blecharczyk

Nathan Blecharczyk is co-founder and Chief Technical Officer of Airbnb. Despite his growing fortune (estimated at around $3 billion), he still rides his bike to work. And stays in Airbnb homes when traveling.

The billionaire stated more than once that he feels responsible to do good. He and his wife support St. Mary’s Center for Women and Children and contribute to College Track, a nonprofit in California that supports students from under-served communities.

Blecharczyk, together with the other co-founders of Airbnb, also announced that they join Bill Gate’s Giving Pledge, meaning that they committed to donating at least 50% of their wealth in their lifetime or in their will.

Elon Musk

Elon Musk

Elon Musk’s passion for renewable energy makes him one of the most famous socially responsible billionaires of his generation. He’s permanently investing in innovative technology that could reduce the greenhouse gas emissions. He also has a well-known penchant for all things green.

Musk is interested in educational projects as well and donates high amounts to charity. Among the Tesla CEO’s benevolent acts, he donated $15 million to the Global Learning program by XPRIZE, $250,000 and battery systems to support hurricane victims, and $480,000 to fix the water system in 12 Flint schools.

Musk also joined the Giving Pledge started by Bill Gates. More than half of his wealth will support charity for good.

These four socially responsible billionaires are playing their part in keeping our planet clean. They also donate large amounts to charity and support hundreds of smaller organizations around the globe, proving that you don’t have to sell your soul to be a billionaire. You can give back some of your success as well.

Featured image from Shutterstock.

October 10, 2018
The End Is in Sight for Sears as Stock Takes a Further Tumble

Struggling retail giant Sears (NASDAQ: SHLD) is limping toward bankruptcy as its stock took another major tumble on Tuesday. Sears stock fell by 9.7% percent with shares finishing the trading day down by around 6%.

Sears stock yesterday

What brought about the sudden decline? An announcement that the retailer will be adding a “restructuring expert” to the team (read bankruptcy expert). Alan Carr, CEO of Drivetrain LLC, is the latest addition to the board.

No Good Ever Came Out of Restructuring Experts

Let’s face it, pretty much nothing good has ever come out of a company hiring a “restructuring expert.” It basically spells job losses, store closures, and liquidation of assets. And, in the case of Sears, just about any measures possible to make its pending $134 million debt repayment on October 15.

While Sears chairman and CEO Eddie Lempert insisted that the company was pleased to welcome him and praised Mr. Carr for his experience in organizational change, most shareholders remain unconvinced.

That’s probably because Mr. Carr has a reputation as a bankruptcy expert and fears are rising that Sears will be forced to file for bankruptcy protection. Carr is a former restructuring lawyer at Skadden, Arps, Slate, Meagher & Flom. And his firm Drivetrain is dedicated to restructuring.

Sears: The End of an Era

The company that changed how America shopped and lived is now an empty shell of its former self with stores falling into disrepair. Easily the Walmart and Amazon of its day, Sears was America’s largest employer. But somehow the mighty giant could never quite get to grips with the 21st century, making one calamitous move after another.

Instead of adapting to meet the online shopping threat head-on, it backstepped by buying up another struggling retailer Kmart. At the same time as losing ground in the internet battle, Sears began closing stores and failing to invest in its flagship ones.

Even fellow struggling retailers like Macy’s and JCPenney pulled out all the stops and used novel ways of getting customers in stores, such as geofencing marketing, massive displays, AR and VR, and in-store incentives to post strong holiday sales last year. Sears and Kmart’s holiday sales plummeted by 16% and 17% percent.

A Grim Outlook

With second-quarter revenue at $3.2 billion (down from $4.3 billion at the same point last year) the outlook for Sears is grim. A retail dinosaur that failed to compete in the Amazon age or come up with products relevant enough to keep hold of their fickle customers. According to Lampert, if the company doesn’t take drastic action soon, any value for shareholders could be reduced or eliminated completely.

Beyond the imminent $134 million, Sears is carrying a debt burden to the tune of $5.6 billion. But is selling off Sears’ assets really the best move for its shareholders who could end up losing out? Depends on who you talk to. It seems that CEO Mr. Lampert isn’t missing a trick. Sears has already sold off properties to Seritage Growth Properties, a real estate investment trust in which Mr. Lampert’s hedge fund has a hefty interest.

Featured image from Shutterstock.

October 10, 2018