“What’s your number?”
Recently, while partaking in some mild social distancing, a friend asked me this seemingly innocuous question. He further elaborated, “What’s the number you need to hit to live off the interest?” In the economic uncertainty of life with Covid-19, this friend had retreated to the financially conservative tenants of the FIRE movement, that is, “financial independence, retire early.” His logic was that removing risk increased certainty, allowing him to save his way to early retirement.
His overabundance of caution is actually doing more harm than good.
Excessively Conservative with Money
Most people procrastinate. This is generally for good reasons, as delayed responsibility rarely incurs consequences. Putting off cleaning the house, working out, or asking someone out on a date may lower your expectations, but has little impact on future outcomes. Saving is one aspect of adult life that, when ignored, can have a profound impact on your future outcome.
Most people who put off…
Linus is now managing over $1 million in deposits! Thank you to our early adopters for helping us reach this goal. We’re excited to celebrate this achievement as we look toward the future.
Road to $1 million
On Tuesday, we surpassed the $1 million assets-under-management mark, exceeding our Q3 2020 target. This is the first major milestone since we launched the Linus Early Access Program (LEAP) in January. …
Most of us don’t consider the effect of inflation on our cash, savings or investments. The Federal Reserve (“the Fed”), which is responsible for adjusting the money supply in an attempt to control inflation, has set a target rate of 2%. Since the mid-’90s, the rate of inflation has remained rather stable, hovering around 2.0%. However, this has not always been the case.
Throughout much of the 1970s and 80s, the rate of inflation was much higher, causing prices to rise faster than many investors expected. Even at these high rates, the savings rate was still well above the inflation…
Personal Finance 101 warning: This topic may seem very simple, but at Linus, we get a lot of questions about saving money versus paying down debt.
Recognizing the importance of saving is the first step toward being fiscally responsible and establishing financial stability. Before I answer this question, I highly recommend that you build an emergency fund to prepare for unforeseen circumstances, such as an unexpected expense, lapse in employment or changes in economic certainty. Once you have met this goal — and congratulations, by the way — you may be wondering what comes next, saving for retirement or paying…
Unless you hold a degree in finance, you might not be familiar with the differences between APR and APY, as quoted by a financial institution. Although similar, knowing the difference can help you make better financial decisions.
*If you need to convert between APR and APY, check out ARPtoAPY.com.
APR (Annual Percentage Rate) is the annual rate of return — expressed as a percentage — before factoring in compound interest. You’ll run into this most often when considering terms for a loan. The APR make it simple to calculate your monthly payment.
Let’s say you would like to calculate…
I am pleased to continue with the latest installment of “Getting To Know Linus, ” the series where we learn a little more about the team behind the product. Last month, we introduced our first hire, Jake Russell. When recruiting for our second hire, we posted a public job listing. We didn’t know what to expect from the candidate pool, but we knew we wanted to hear more from the developer with a master’s degree in Aerospace Engineering. That candidate, Crawford Leeds, was quickly given an offer.
Last month we kicked off our inaugural issue of “Getting To Know Linus” by introducing Justin Aiello, the most recent addition to Linus. If you missed his interview I highly recommend you read his entertaining responses. For our second installment I am thrilled to introduce the first Linus employee we hired, Jake Russell. As Jake will tell you himself, he wasn’t a guaranteed addition to the team.
While we’re all grappling with the seriousness of the coronavirus pandemic, the Linus team brings some good news. We’re raising our interest rate to 4.0% starting April 1st. The recent market volatility presents new challenges, but we’re dedicated to providing the best investment experience and these events have validated the superiority of our model versus the competition. We wanted to take a moment and address our rates and how they are possible.
We’re raising our interest rate to 4.0% starting April 1st.
Approximately nine months ago, Matt Hamilton and I began building Linus, a financial technology company designed to make it easier for everyday investors to build and maintain wealth. I am proud to announce that our public beta is now live. We’ve created an alternative to the low yield, legacy banking system that allows for anyone take on a little more risk and earn inflation beating rates. You can create an account by visiting www.getlinus.io and clicking “Get Started.”
Matthew Nemer is the Co-Founder & CEO of Linus — The Better Way to Save