January 23, 2024

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We've seen yield offerings from high-yield savings accounts skyrocket over the last year, with some options exceeding 5% or more. This is usually viewed as a high yield for spare cash, but can you guess what the highest yields ever were? A. 8% B. 13% C. 15%

Here are the topics for today:

Finance Trends — What Stays and What Goes in 2024
The Bitcoin ETF is Here — What to Know
Financial Sustainability — The Keys to Longevity

MONEY TIP

Finance Trends — What Stays and What Goes in 2024

Trends are a lot bigger than just hashtags. In actuality, trends drive entire sectors of economies across the globe, giving rise and fall to entire industries over the course of time.

And finance is no exception — in fact, it may be the best example of trends shaping the world around us. Money is in everything, and the trends that underscore it are what drives change.

So, when it comes to money, what's in and what's out in 2024?

Out — Avoiding money conversations: 62% of Americans say that they don't regularly talk about money — we want to change that. Money conversations have been taboo for a long time, and we're on a mission to repeal that stipulation. A lack of healthy money talks is at the core of many financial issues individuals and families face today, and it's a trend that must be bucked for a better financial future.
Out — Confusing inflation with lifestyle inflation: Inflation has been high in recent years, but in 2023, it came down quite a bit. For about 2 years now we've been able to chalk up increasing expenses to inflation, but that time is over. It's time to draw a line and figure out where inflation ends, and where lifestyle creep begins.
Out — Assuming small changes don't matter: Choices are not exempt from the power of compound interest; they're actually one of the most prominent benefactors of it. Our seemingly "small" money choices and habits add up over time, and we often don't realize it until the effects have fully materialized.
In — Automated Intelligence (AI): AI is here to stay, and it's working its way into our finances. Robo-advisors, automated investing, and even AI money assistants like SideKick are all here to help us better manage our money more efficiently.
In — Reaping high yields on your cash: 82% of Americans still aren't taking advantage of a high-yield savings account — now is the time to change that. The Fed is expected to lower interest rates this year, meaning savings yields will drop too. 2024, especially the first half, maybe one of the last times we see yields this high for a while, so now is the time to capitalize.
In — Holistic money management: The days of compartmentalizing our financial wellness are done, it's time to see money for what it really is — one big part of our lives with unique subsections all deserving equal attention. The best way to holistically manage your money? Origin. Our comprehensive money management platform grants you access to everything you'll need and more to competently and efficiently oversee your financial journey — all for just $12.99 a month.

INVESTING

The Bitcoin ETF is Here — What to Know

Investors have been awaiting the approval of a Bitcoin ETF for almost a decade now, and it seems that this goal has finally been actualized after a long, hard-fought waiting period.

This month, the SEC at long last approved 11 applications for Bitcoin ETFs from names like BlackRock, ARK, Fidelity, Invesco, and more. Bitcoin itself, which has been quietly trending upward for months, fell flat in the wake of the news. Nevertheless, orthodox crypto fans are undoubtedly comforted by the approval.

But what exactly is a Bitcoin ETF, and how does it differ from the traditional funds we've come to know and love?

So, the SEC actually made way for Bitcoin ETFs a few years ago back in 2021 — but those were different. Previously, the Bitcoin ETFs available were not true "spot" ETFs, but instead, held futures contracts for the coin.

That's not the case with these new funds — these are true spot Bitcoin ETFs, meaning they actually hold the crypto itself as opposed to just futures contracts. Under the hood, these funds are trusts that oversee pools of Bitcoin and issue shares to fund holders.

What to know as an investor

Why buy the ETF and not the coin? An ETF allows investors to get exposure to Bitcoin right in a brokerage account within tightly regulated markets without having to take on the added risk and stigmas associated with crypto exchanges and wallets. For some, this is appealing, whereas others may prefer to just own $BTC outright.
What are the associated costs? 6 of the ETFs launching come with periods of 0% introductory fees, but this is limited and will also expire. Fees range from 0.20% for the Bitwise ETF to upwards of 1.5% with Grayscale's fund.
Are there added security risks? There's a perpetual risk of hackers pilfering Bitcoin. The fine print in the regulatory filings of recent Bitcoin ETFs consistently mentions security breaches as a potential threat. To keep things safe, new Bitcoin ETFs employ third-party custodians, a common practice within the ETF realm.
Should you invest? That's up to you. If you just want to add a little crypto exposure to your portfolio and have some extra money to invest, there's little harm in allocating a small portion of your portfolio to a Bitcoin ETF. If you're still not sure, schedule some time with an Origin financial planner to discuss your investments.

MONEY TIP

Financial Sustainability — The Keys to Longevity

We all want to be able to achieve financial prosperity — who wouldn't? The problem is, it's oftentimes easy to find yourself in a position of success for a moment, but it's much more difficult to turn that success into something sustainable and long-lasting.

So, what are some ways that we can ensure our financial wellness is retained and expanded over time, and habits that lend themselves toward long-term success?

The keys to sustainable finances

Keep up your routines: Sometimes you might brush your teeth and feel like "This doesn't seem to be doing much, do I really need to do this 3 times a day?" When instead, a better question would be — "What happens if I stop doing this 3 times a day?" The impact of a routine is most noticeable when it's dropped, and this is especially true in finances. Sure, it might not seem like logging into your Origin account 2X per week just to check on things is that impactful, but not doing it would reveal otherwise.
Make small choices that add up: It's often easy to overlook the impact that the small choices we make can have on our lives. Truth is, choices are like compound interest, and money is a great example of this. You might think that contributing an extra $50 a month to your 401(k) makes little to no difference, when in reality, that $50 could mean an extra $10,000 over the course of 30 years.
Leave a margin for error: By planning for the worst and aiming for the best, you'll often end up in a situation where you have a little extra cushion to lean on. For example, if you estimate you'll need $2M to retire, but you invest like you need $2.5, odds are you'll end up ahead of where you need to be.
Plan for the long-term: The utmost key to sustainability is in doing everything with the long-term in mind. It's easy to live in the moment and only make choices based on today, next week, or even next month, but living like this for a prolonged period of time will have negative implications for your money.

🌊 BY THE WAY

💵 Answer: It's C. Savings rates purportedly reached levels around 15% or more during the 1980s inflation. (TheBalance)
💲 What are the most common budgeting mistakes? (Origin)
⌛ Living past the age of 100 may become more common (Pew)
💕 What to know before paying for a dating app (CNBC)
📉 Inflation expectations continue to dwindle (Axios)

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