Investment Advice

7 Low-Risk Investments With Great Rewards

Published

3 years ago

June 24, 2020

Investing can seem intimidating, especially when you get started for the first time. We especially know that when it comes to growing your financial portfolio, things may get risky when times get tough. As some assets may have taken an unexpected turn in 2020, low-risk investments have become a hot topic.

It’s understandable to seek out safer investments during times of uncertainty, so thankfully there are plenty of low-risk options to consider. Keep in mind, each investment has its own trade-offs in terms of risks and benefits. And of course, the most rewarding investments typically come with more risk.

While each investment type performs and operates in its own way, they all have the same general components. They are built to invest money, charge interest rates, and hopefully earn you a profit. Between low-risk and high-risk investments, there are plenty of variables when it comes to understanding the terms and conditions. It may take a little digging to fully understand each type’s terms and conditions, so we’ve helped outline a few common ones below. If you’re looking to grow your capital, these eight low-risk investments may be good options for you.

You may be familiar with the idea that riskier investments yield the potential for higher returns. On the flip side, you have to remember that lower risks typically have lower yield returns. But, that doesn’t mean you aren’t able to make a profit off of your investments. For some low-risk investments, you don’t even need more than $100 or less to start out.

1. High-Yield Savings Accounts

Definition:

High-yield savings accounts are similar to your everyday savings account, just with higher interest rates. These accounts can be used for long-term savings goals or to hold extra money from your checking account. For example, if you were to start saving for a house or building up an emergency fund, this could be a great option. You’re able to contribute to your savings and earn higher interest than the standard savings account.

Flexibility:

These accounts are rather flexible. Since they are a savings account, you can withdraw money up to six times per month. If you want to cash out, you’re more than able to upon your request. Under some circumstances, banks may request an early notice before doing so.

Cost:

Some banks may have you pay a minimum deposit upon opening an account. Other than that, savings accounts normally don’t cost anything to start.

How are these safe?

Since your money isn’t locked up in a contract, these accounts are known to be one of the safest investments. You’re able to withdraw your money whenever you need, but still earn a slight profit over a long period of time paid out monthly.

2. Cash Management/Sweep Accounts

Definition:

Cash management, also known as sweep accounts, are normally investment opportunities offered by a brokerage firm. This is when you have a specific amount taken out of a commercial account and put into an investment account. You’re typically able to choose your investment account, amount, and date. Sweep accounts are also most commonly known for being a cash hold option in any investment account. When many individuals go to add cash to an investment account to place a new trade, some cash may be left in the sweep account, if not used in full. That way, you ensure your money isn’t sitting anywhere for long periods of time without making a profit.

For example, you contribute $100 and buy 3 shares of an ETF whose price is $33 each. You would spend $99, with $1 left in your sweep account. These accounts are also commonly used for dividend payments to be held.

Flexibility:

Flexibility will depend mainly on the type of investment account the sweep cash is held, and where you want to move your money. If the cash is in a brokerage account, you can move it out, and into a savings or checking account within a few days. You could also easily move this money to another investment account as brokerage accounts aren’t tax advantaged. Issues may arise if your money’s in a tax advantaged account, like an IRA. Then, moving the sweep money becomes more difficult. To get money out of a tax advantaged account, it requires a rollover. Rollovers are easier done at another account at the same institution. Moving cash between the same tax advantaged account types, if done properly, will not cause a taxable event. Moving from a tax advantaged to a non-tax advantage account, if don’t improperly, will cause taxes.

Cost:

The initial cost of setting up these accounts depends on the brokerage bank who holds the money. Sweep accounts can come with fees to use the service. Depending on the provider chosen and how much cash you have to manage, this may differ. Some providers may even offer a sweep account as a benefit to your account.

How are these safe?

Depending on where the sweep cash is, it could be FDIC insured. Usually, if it’s held at a bank or SPIC insured, if it’s held at a brokerage firm, considering checking before investing. Depending on your account choice, you may be able to cash out rather quickly, while others may take longer.

3. Certificate of Deposit (CDs)

Definition:

A CD is a fixed amount of money you contribute to savings for a fixed amount of time. In exchange, banks will pay interest to use your money elsewhere during that time period. Initially, banks are able to loan out your money to earn a profit off interest rates that you get a percentage from. With this type of investment, you’re able to choose the time period you want to invest for. Usually, the longer the CD, the higher the interest. Also, the higher interest rate CDs normally require a minimum contribution amount.

Flexibility:

As most banks are expecting to hold your money for that fixed timeframe, it isn’t as easy to get your cash sooner than expected. You may then be faced with different fees depending on your bank’s guidelines.

Cost:

You’re able to choose the amount you would like to contribute to a CD. Plus, there isn’t a cost specifically associated with opening up a CD. You could invest anywhere from $0 to hundreds or thousands of dollars in a CD. Keep in mind, most CDs will automatically renew. If you want to use your cash for something else, check in with your bank before your contract is up.

How are these safe?

CDs are federally insured up to $250,000 per person by the FDIC. This covers all accounts in your name at a specific bank. This guarantees you’ll get your money back, but how much you get depends on your bank’s circumstances.

4. Treasury Securities

Definition:

Treasury securities are treasury bills, notes, and bonds. When you buy treasury securities you are buying the debt of the government. This debt is usually used to fund government projects. These securities are issued by the United States. Department of Treasury. In most cases, your earnings may be exempt from state and local taxes since they are government issued.

Flexibility:

With treasury securities, you aren’t able to break your maturity date. Even though you may not get out of your investment, you can sell it to someone else. In that case, you will get what they’re willing to pay for it. You’re able to either sell your treasury bond or wait until it matures. When selling, you may have to meet up with your bank, a broker, and a dealer that might take on additional fees. Along with that, most individuals may not be buying individual bonds. Instead, you may likely buy a mutual fund or ETF focused on treasuries, in the case there may be a fee to buy or sell the fund from the brokerage.

Cost:

The costs of investing in treasury securities may vary. You could spend anywhere from $0 all the way up to $5 million. New issue treasuries may have no online transaction or purchase fees. If you choose to invest in assistance of a broker, you may have a broker-assisted fee.

How are these safe?

These investments are also known to be one of the safest investments. Treasury securities are normally backed by the U.S. government, and your earnings may be tax exempt.

5. Money Market Funds

Definition:

Money market funds are normally short-term investments with short-term interest rates. Many people choose to invest in money market funds rather than cash for higher interest rates.

Flexibility:

You’re able to cash out these investments, but that does normally come at a cost. You may have to pay liquidation fees and wait to get your earnings for a fixed period of time.

Cost:

These funds are rather inexpensive, being set at the net asset value (NAV). Even though they may be inexpensive to get, they might come with different fees. When you start out, you may agree to pay monthly deposits or choose to invest some of your retirement savings.

How are these safe?

These investments are high-quality, short-term investments that allow you to have more flexibility than long-term investments. Unfortunately, this type of asset isn’t insured by the FDIC because it’s not a cash instrument. Money mutual funds are invested in debt paper which are covered, at most, by SPIC insurance.

Preferred Stock

6. Preferred Stock

Definition:

Investing in preferred stocks is similar to investing in a regular common stock, or share in a company. But, this kind of stock is usually also accompanied with a promised dividend payment. Preferred stockholders hold the priority of dividend payments over common stockholders, meaning they will get their dividends paid first. What is left is then paid to common stockholders.

Preferred stock has the market volatility of the stock market, but also pays regular dividends like a bond. This makes preferred stock investing a crossover of the traditional characteristics of the stock and bond market.

Flexibility:

You’re able to sell your stocks whenever you choose, but like owning any other stock, you may face a price decrease or, even better, an increase. Some preferred stocks also come with a conversion option. This is where a company buys back the preferred stock from you, or converts your stock to common stock. Each preferred stock share is part of a series that has its own rights. Be sure to check all the details of any preferred stock before you buy, as there are many nuances that aren’t always the same.

Cost:

Most stocks vary in price and fees. Most of the time, the highest-earning stocks are the ones that cost more per share. However, you’re able to invest as much or as little as you’d like, whenever you’d like. Some stocks may have transaction fees when buying or selling.

How are these safe?

Even though preferred stocks get paid before common stocks, their payment still isn’t guaranteed. When you’re investing your money into stocks, you hold company and stock market risk.

7. Fixed Annuities

Definition:

An annuity is an insurance contract that guarantees regular and recurring income payments to the contract purchaser. There are many types of annuities and they can vary in structure and price. A fixed annuity is the simplest form of an annuity. With fixed annuities, you pay into the annuity and in return, they give you a fixed stream of income. This income usually comes monthly, over a set period of time that could be as long as you live. For example, Social Security and Pension plans are structured like annuities.

Flexibility:

Each annuity product is structured differently. Be sure to carefully review the contract and the details with a trained professional before purchasing.

Since there are many types of annuities, there are products that are structured better for some individuals than others. For example, if someone is nervous about the market and wants to ensure they can cover their basic expenses for life, they can buy an annuity that pays them that amount monthly. Another example of an annuity type is an immediate annuity. This type allows you to give an insurance company a sum of money today in exchange of monthly payments starting immediately.

While there’s flexibility in the types of products offered, this is usually not as easy to get out of these contracts once you have purchased. Annuities are notorious for having huge surrender charges that can be up 20 percent of your initial investment if you choose to cancel within the first year. Surrender charges aren’t just for the first year. They could last up to five to ten years, slowly decreasing to zero. Most of the time, you’re able to cash out your investment by simply terminating your contract. Keep in mind that when you terminate your contract, you may face fees, taxes, or miss out on interest payments.

Cost:

Fees on fixed annuities can differ depending on your insurance company. When considering this type of investment, ensure you do your research and read the fine print. Also, be sure to ask the salesperson what commission they would make on this sale and how much these commissions range on different types of annuities. These commission rates are usually rather high, so be careful that you’re not being sold one just because of the agent’s payout benefits. Lastly, understand the taxes and keep in mind these annuity payments may be taxed like regular income.

How are these safe?

As fixed annuities have a fixed interest payment amount over a fixed time period, you know when you’ll get your cash and how much. Keep in mind the impacts of interest rates and inflation over the life of your contract.

When getting started with investing, it may sound rather intimidating. However, it can be a great way to work toward your long-term financial goals. Even the best investors didn’t make a profit out of the blue — they established a healthy investment mindset. When taking strides towards investing, outline your goals, and regularly pay attention to different investment markets.

Remember, all investments aren’t made to be equal. Be sure to check out each investment’s terms and conditions to fully understand each contract’s time frame, payment styles, and investment risk. Check out our investment calculator to see your estimated investment growth over time. Download our app to see how much you’d like to consider investing in the near future.

The post 7 Low-Risk Investments With Great Rewards appeared first on MintLife Blog.

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By: Mint.com
Title: 7 Low-Risk Investments With Great Rewards
Sourced From: blog.mint.com/investing/low-risk-investments/
Published Date: Tue, 23 Jun 2020 16:54:57 +0000

Investment Advice

Are These Marijuana Stocks Built For Long Or Short Term Success?

Published

2 years ago

February 11, 2021

getinvestmentadvise99

Would You Invest In These Marijuana Stocks In 2021?

For the last several month’s investors have found a renewed interest in marijuana stocks. From mid-2020 to currently in 2021 cannabis stocks have been on the move. Many pot stocks from various niches have been rising in the market. Some marijuana stocks have not only reported record earnings but some have seen back-to-back all-time highs. With the amount of money being invested with the hopes of federal cannabis reform, people are trying to jump on board before the boat leaves the dock.

The cannabis sector as a whole has been on fire. Many companies in the cannabis industry have been preparing for what’s next to come. Meaning most cannabis companies are making operational adjustments to be able to adapt to the future of the cannabis industry. For example, 2 big-time cannabis companies both teamed up to make the biggest cannabis company on earth. Tilray Inc. and Aphria Inc. joined forces which have helped both companies market performance to a degree.

As well other companies have taken notice and may follow the same path. A lot is changing for the cannabis industry between legislation, more states going legal, and new regulations. All these variables play a factor in how this sentiment impacts the market. With more positive sentiment taking hold of the market is reflects in how well some marijuana stocks trade.

So far in 2021 cannabis stocks are moving up and seeing overall bigger gains. For this reason, many new and seasoned investors are looking to get involved and make some money. The cannabis industry is one of the fastest-growing markets in the world that is continuously expanding. The 2 cannabis stocks below are examples of when the sector is trending it resonates well with how marijuana stocks can or will trade.

Pot Stock Watch List This Month

Green Lane Holdigns Inc. (NASDAQ:GNLN)
Liberty Health Sciences Inc. (OTC:LHSIF)

Green Lane Holdigns Inc.

Green Lane Holdigns Inc. has been of the many marijuana stocks trying to climb higher in a volatile market. Back in 202 GNLN stock saw its price fluctuate quite often. This price fluctuation allowed for good entry points before GNLN stock had a spike in trading. Like many marijuana stocks, 2021 gave the cannabis market a nice push to start the new year. With Green Lane 2021 was no different.

In the first 2 weeks of the new year, GNLN stock shot up 25 percent in trading as it was starting to dip from this point. Even though Green Lane closed out the first month of the new year with a drop from previous highs in January the following month was a different story. Currently GNLN stock in February has been able to recover from January’s dip.

The company has been able to even reach higher highs than last month. Within the first trading week of February, GNLN stock saw gains of 27 percent. This was a much-needed momentum booster to help the company recover from its trading at the close of January. So far for in February GNLN stock has had a nice upward push in the market showing over 60 percent gains in trading. This current momentum has signaled to investors that Green Lane may be a marijuana stock to watch in 2021.

[Read More]

Liberty Health Sciences Inc.

Liberty Health Sciences Inc. has been an interesting cannabis stock to watch. Like many other cannabis businesses, it’s going to take more than a pandemic to stop the company from expanding. Back in January, the company announced that it will be opening a new location adding to its current portfolio of dispensaries. The Company plans to open two more dispensaries by the end of February 2021 with much more in the works.

Although in 2020 LHSIF stock traded mostly sideways with subtle spikes in trading the new year has provided a strong push in trading. Starting from December 21st LHSIF stock started to bounce and began to climb in the market. From the 21st to the 31st of December LHSIF stock shot up 90 percent. For those who held their position until this point, they made a healthy return on their investment. Pushing into the new year the company was able to sustain its market momentum and keep pushing up in the market.

In the first 14 days of trading of the new year LHSIF stock has a 13 percent increase in trading. The remainder of January’s trading resulted in a small dip. Yet overall gains for the first month of 2021 for LHSIF stock was an increase of 8 percent. This was a subtle push that helped the company sustain its current market position. Now that we have entered February LHSIF has continued to trade up in the market. Currently for the month of February LHSIF stock is up over 25 percent. If the company can continue this momentum it would intrigue more people to keep an eye on this marijuana stock.

The post Are These Marijuana Stocks Built For Long Or Short Term Success? appeared first on Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry.™.

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By: Daniel Chase
Title: Are These Marijuana Stocks Built For Long Or Short Term Success?
Sourced From: marijuanastocks.com/are-these-marijuana-stocks-built-for-long-or-short-term-success/
Published Date: Thu, 11 Feb 2021 13:30:07 +0000

Did you miss our previous article…
https://getinvestmentadvise.com/investment-advice/price-to-earnings-ratio-defined-p-e-ratio-formula/

Investment Advice

Price to Earnings Ratio Defined (P/E Ratio Formula)

Published

2 years ago

February 11, 2021

getinvestmentadvise99

Trying your hand at the stock market? Chances are, you’ve come across the term “P/E ratio”. If you’re like many who are new to the stock market, you’ve looked at this phrase and asked yourself, “What in the world is that?”

P/E ratio, otherwise known as the price-to-earnings ratio, is a formula that investors use to determine the value of a company’s share. It is one of the most common formulas used to determine the value of a stock. The formula compares the price of a company’s share to the earnings per share (EPS) of the company in order to determine how much an investor is paying for $1 of the company’s earnings. Let’s take a deeper dive into the P/E formula. Use the links below to jump ahead to a section of your choosing.

P/E Formula and Calculation
Understanding P/E Ratio
Limitations of the P/E Ratio

P/E Formula and Calculation

First thing’s first: let’s learn the price to earnings ratio formula and how to calculate it. The price-to-earnings ratio formula is as follows: the price of a single share of a company’s stock (What is a stock?), divided by the company’s earnings per share (EPS). The ratio of these two variables will tell you exactly how much an investor is spending for a single dollar of the company’s earnings.

Finding the cost of a company’s stock is extremely simple. In order to find the price of a single share of a company’s stock, all you need to do is enter the company’s stock ticker symbol (the series of characters that represents that company on the stock market) into a finance website, such as investor.gov. You’ll quickly find the current cost for a single share of that company’s stock. Google also keeps an up-to-date Market Summary for the prior day’s stock market, so a quick Google search will often bring exactly the answer you’re looking for.

Determining a company’s earnings per share (EPS) can be a bit trickier. Earnings per share are broken down into 2 categories: trailing earnings and forward earnings. Trailing earnings, often shortened to TTM, are the company’s core earnings over the trailing, or prior, 12 months. This number is the profit that the company has generated over the past 12 months of business. Remember that we’re talking about the net income of a business, rather than the gross income (Need a refresher? Learn more about gross income vs net income.). P/E ratios calculated with trailing earnings are known as the trailing P/E (P/E TTM). Forward earnings, on the other hand, are the predicted earnings that the company will generate over the next 12 months. P/E ratios calculated using forward earnings are known as the forward P/E. Both types of earnings are divided by the total number of public shares on the market in order to generate their EPS. More on this later.

Let’s try out an example. Say you’re looking to determine the trailing P/E of a fictional company AlphaBet Corporation, known on the stock market as ABC. Their share price is currently at $50 per share. Their trailing earnings per share is $5. Divide the $50 per share by the $5 EPS, and you’re left with a P/E of 10. This means that investors are paying $10 for every $1 in earnings per share.

Understanding P/E Ratio

So, ABC has a P/E of 10. What does that mean for you?

In the most general sense, the lower a P/E ratio, the less an investor is paying for each dollar of a company’s earnings per share. A higher P/E ratio means that an investor is paying more per EPS. But, unfortunately, determining which stock to buy isn’t as simple as “look for the lowest P/E ratio”.

It is imperative to remember that everything on the stock market is relative. “Good” and “bad” numbers are different for each and every industry. An electronics company and an automotive company are functioning in two vastly different landscapes. Therefore, in order to determine what is a good price to earnings ratio, you’ll need to understand the landscape of P/E ratios in the industry. Look at similar companies’ P/E ratios to better understand the relative value of your company’s P/E ratio. If ABC’s price-to-earnings ratio seems extremely high as compared to other companies in the industry, it may be an overvalued stock. On the other hand, if it seems extremely low as compared to other companies in the industry, it may be a very valuable stock.

Let’s try another example. We’ve already determined that ABC’s price is $50 per share, earnings are $5 per share, and P/E is 10. A competitor, DOG, also has stock for $50 per share. Their earnings, on the other hand, are $2 per share, making their PE 25 (50/2=25). An investor would pay $10 for every $1 of ABC’s earnings per share, but they’d have to pay $25 for every $1 of DOG’s earnings per share. With a better understanding of the landscape, we can see how ABC sits relative to its competitors.

A company’s price to earnings ratio may also be looked at relative to itself. Remember those two types of earnings we reviewed earlier? We can compare a company’s trailing P/E to their forward P/E to better understand the value of a stock. A company with a high trailing P/E ratio may have been rather unprofitable the prior 12 months because theywere preparing to ramp up business substantially, and took on a number of upfront costs. They may be expecting a boom of profits over the forward 12 months, leaving them with a substantially lower forward P/E. By reviewing these numbers in comparison to each other, we may see an opportunity for a long-term investment.

Limitations of the P/E Ratio

While the price to earnings ratio is certainly one of the most widely used calculations among stock market investors and analysts, it’s not a cut and dry way to determine a good or bad stock. It gives investors a good understanding of the value of stock in a particular moment, but it certainly has its short-comings.

Just as the stock market is relative, it’s also in a constant state of fluctuation. It is re-evaluated and recalculated constantly. Why does this matter when it comes to the price to earnings ratio? Well, just look at the variables we use to determine the P/E ratio.

First, we have the “price” of the price-to-earnings ratio: the cost of a single share of a company’s stock. Stock prices fluctuate every single day based on supply, demand, current events, and more. Typically, the cost of a company’s stock will be reported as the cost that it was when the stock market closed the prior day. Each time a company’s stock price changes, their P/E ratio will change. Certain companies may tend to have a greater fundamental volatility than others, leaving their stock price changing substantially each and every day. Even those with low fundamental volatility experience routine fluctuation.

Next, we have the “earnings” in the price-to-earnings ratio. Both trailing and forward P/E ratios have their limitations. Trailing P/E can feel like the more reliable of the two numbers because it’s based on facts. We take their actual earnings over the prior 12 months into account. But, in many situations, a company’s prior 12 months may have little to do with their next 12 months. As mentioned earlier, a company may have spent heavy the prior 12 months in preparation to ramp up the next 12 months. The trailing P/E won’t show us any of that. The forward P/E, on the other hand, is based on predictions. And predictions are quite educated guesses, but at the end of the day predictions are still guesses. A company may fall short of their predicted earnings or blow completely past them.

Looking to try your hand at the stock market? Don’t go at it alone. Consider opening an investment account with Mint. We believe that there’s no “one-size-fits-all” approach to investment. That’s why we offer a variety of investment partners, suited to each particular need. Let’s find the best to suit yours.

The post Price to Earnings Ratio Defined (P/E Ratio Formula) appeared first on MintLife Blog.

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By: Mint
Title: Price to Earnings Ratio Defined (P/E Ratio Formula)
Sourced From: mint.intuit.com/blog/investing/price-earnings-ratio/
Published Date: Tue, 25 Aug 2020 19:37:02 +0000

Did you miss our previous article…
https://getinvestmentadvise.com/investment-advice/will-marijuana-banking-be-apart-of-federal-cannabis-reform/

Investment Advice

Will Marijuana Banking Be Apart Of Federal Cannabis Reform?

Published

2 years ago

February 11, 2021

getinvestmentadvise99

The Cannabis Industry VS Financial Institutions

As marijuana stocks and the cannabis industry as a whole awaits federal cannabis reform the sector keeps trending. Now if the U.S. can federally decriminalize cannabis some analysts feel it may cause some cannabis stocks to rally. As well as many new doors will that can open. For one many new markets will look to join the U.S. cannabis industry. Furthermore, with federal cannabis reform, it could be the start of initiating a banking system for the industry.

Currently due to cannabis still being federally illegal banks can not take money from a cannabis-related business. From the time states started going legal, it has been an issue that has yet to be resolved. The cannabis industry is one of the fastest-growing industries in the world, especially in the United States. Politicians have been working to pass various pieces of cannabis legislation.

The one bill that would be beneficial to the industry is known as the SAFE Banking Act. This bill would allow banks to accept money from cannabis-related businesses. On March 7, 2019, the bill was introduced to the U.S. House of Representatives by Ed Perlmutter and was introduced to the Judiciary and Financial Services Committees. Back in 2019, the Financial Services Committee voted 45 to 15 to advance the bill to the full House.

The SAFE Banking Act provisions were included in the HEROES Act COVID-19 relief bill passed in the U.S. House in May 2020. They were again included in a bill approved by the house 214–207 in October. A push to include the SAFE Banking Act provisions in the end-of-year COVID-19 stimulus failed, though hope remained it could pass in 2021 if reintroduced.

How Will The Cannabis Industry Work With Banks

When it comes to any business you can think having startup capital is important. Now not every person with money is willing to invest in a new venture which makes finding that more of a task. Especially with cannabis-related business and right now banks are no help. For a business to acquire a line of credit or some type of lending your business must be able to have some type of financial record.

This usually tells banks and lenders how good you are at paying things back and how reliable you are to do so. The bigger obstacle for cannabis businesses is how do you show you are trustworthy with no credit history. Once again this due to financial institutions not working with cannabis businesses. Let’s look at a few steps to help jump over some red tape.

First, you should start a new business that is a separate company from your personal credit. This will help when it comes time to do your taxes. The second step to take is you need to register for your EIN number. Next thing to do is open a new bank account and make sure you can show that you have continuous income which shows financial stability. Again with banks not accepting cannabis money the last step may be next to impossible to do.

[Read More]

Will Cannabis Banking Actually Happen?

The way financial institutions offer other industries various banking options is not the same for the cannabis industry. Although there is some grey area with cannabis and banks yet most banks won’t offer services for how high risk the industry is. This leaves many cannabis businesses left out from what other traditional retail businesses would have. Look past the risk banks also look at taking cannabis money as to much work. This would result in following regulations and keeping data on all money. This process has been established by the Bank Secrecy Act of 1970. Also, working with the large amounts of cash cannabis businesses generate may affect how a bank can operate.

With this roadblock between banks and cannabis money, it shuns cannabis businesses from establishing a form of credit. This issue alone is why the industry operates only in cash with very few places to keep it. Also, this issue can do much harm to future relationships with other companies and businesses. If a cannabis business can not establish a credit history no lender or bank can help. That’s why it’s important to have an industry as big as cannabis have some form of credit being reported to credit companies. This will tell other lenders and banks that a particular business is profitable enough to pay back any loans.

What Will The Future Of Cannabis Banking Become

It’s wild to think that an industry that is generating a high volume of cash is being blocked from showing the reliability needed to secure lending. Some feel if the cannabis business can earn the trust of financial institutions by being transparent with its earnings. This may be a step to banks feeling more comfortable with working with a cash-intensive business. Hopefully, with federal cannabis reform, it will help push cannabis banking in the direction needed to help out the industry.

The post Will Marijuana Banking Be Apart Of Federal Cannabis Reform? appeared first on Marijuana Stocks | Cannabis Investments and News. Roots of a Budding Industry.™.

—————-

By: J. Phillip
Title: Will Marijuana Banking Be Apart Of Federal Cannabis Reform?
Sourced From: marijuanastocks.com/will-marijuana-banking-be-apart-of-federal-cannabis-reform/
Published Date: Tue, 09 Feb 2021 18:34:56 +0000