The Sentinel: Finance

Guest Commentary |
Riding the stock market roller coaster; don't jump

Now is not the time to faint or jump from the roller coaster. Who knows how the market will perform over the next few weeks.

by Glenn Mollette, Guest Commentator

You never undo your seat belt or jump from a moving roller coaster. Nor, should you when it comes to our current Stock market.

Eight years ago, if you bought a share of VOO or Vanguard S & P 500 ETF stock, you may have paid about $220 for the share. Today, as of this writing it’s worth $490.55. In other words, even with the fall of the stock market recently you have made good money on your investment. A couple of weeks back it was up to $560 which means you were flying high on your profit. Still yet, you have done well.

If you bought your share of VOO two weeks ago at $560 then you have lost $70, at least for now. You may lose some more but you have to hold tight. Don’t panic and sell now or you will have a loss. Ride it out and give the market time to settle down and rise again. If you have to cash in your stock then cash in while they are high.

Now may be a good time to buy but keep in mind the market may go down some more.

Don’t invest your grocery money in stock. This is the money you need every week for food, shelter, travel and overhead. This is not the money you spend on stock. If you do, then in two weeks you will have to sell your stock to eat and risk losing some of the money you invested. Only invest in stock what you don’t currently need for general living expenses.

Who knows how the market will perform over the next few weeks. It’s going to be a few weeks or months before the tariffs really shape up as to what is really what. The reports are that numerous countries are coming to the table interested in making deals and playing fair with the United States. This will be good for us and them. As these deals stabilize look for the stock market to become more stable once again. If Japan, India, South Korea, Canada and Mexico all level the playing field with the United States our stock market will level out. If there are more reports of industry manufacturing coming to the United States the stock market will begin to rise again.

Now may be a good time to buy but keep in mind the market may go down some more. If you bought VIG two weeks ago then you’ve already seen a significant drop. Keep in mind you only lose it if you sell it when the stock is down. I feel confident that the stock market will come back bigger and bolder than ever but it may take a few months or longer.

The stock market has averaged making about ten percent over the last fifty years. This means it has had years when it made more and years when it made less. An average of ten percent is about the best you can do on your money over the long haul.

Now is not the time to faint or jump from the roller coaster. Rely on your stable income such as Social Security, or any other stable income you may have. If you have a regular paying job you may want to stay with it a little while longer if you can and if you enjoy your work.

About the author ~

Glen Mollett is the author of 13 books including Uncommom Sense, the Spiritual Chocolate series, Grandpa's Store, Minister's Guidebook insights from a fellow minister. His column is published weekly in over 600 publications in all 50 states.

The views expressed are those of the author and are not necessarily representative of any other group or organization. We welcome comments and views from our readers. Submit your letters to the editor or commentary on a current event 24/7 to editor@oursentinel.com.

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Refunds to New Rides: 3 essential tips for buying a good used car this spring

Photo: Leon Seibert/Unsplash

Family Features - Tax refunds have started rolling in, which means many people are looking to use this influx of cash to make purchases they’ve been putting off. According to an Oxford Economics report, the amount of money received from income tax refunds this year could be among the highest in recent years, so many people may have more money in their pockets to spend this spring.

One purchase typically rises to the top this time of year: used vehicles. The Oxford report shows used vehicles are one of the most popular purchases for Americans during tax refund time as this coincides with higher resale values of used vehicles. When making this purchase, it’s important to consider several factors to make a smart financial decision.

Make Sure the Purchase Fits Within Your Budget

Data from Kelley Blue Book and Cox Automotive suggests average used car prices are around 50% less than new vehicle prices. Trusted used car companies and dealerships often feature a wide selection of inventory, including different makes and models, so customers can select a vehicle that excites them and fits within their budget.

“While there are several considerations to keep in mind when shopping for a vehicle, consumers should never exceed their budget,” said Laura D. Adams, personal finance expert, host of the “Money Girl” podcast and a paid Enterprise Car Sales spokesperson. “A vehicle that is near new is often an excellent sweet spot for consumers looking for quality without wanting to make the leap to purchase an expensive, new vehicle.”

Searching for a vehicle with a retailer you trust can help make it easy to stay within your budget. For example, with Enterprise Car Sales, the price listed is the price you’ll pay.

Keep the Monthly Payment Low

The more you can invest in the down payment on a vehicle, the lower your monthly cost will typically be and the less interest you will typically pay over the length of the loan. This can lead to lower, more manageable monthly payments.

“In setting a budget for a quality used vehicle, it’s important to consider the initial down payment, the monthly payments, and the interest,” Adams said. “When consumers can put a little more toward the initial down payment, while staying within budget, they often thank themselves later when they have lower monthly payments and less interest accrued.”

There are many online resources that can help consumers make this calculation. For example, an auto loan calculator can show you how a down payment can affect interest charges.

Purchase a Reliable Vehicle

No matter who you buy from, ensuring you are purchasing a high-quality, reliable vehicle is of the utmost importance. Do your research before signing on the dotted line and conduct a test drive if you can.

“When conducting your search, it’s important to put companies and dealerships you trust at the top of your list,” Adams said. “Maintenance costs can sometimes creep up down the road, so it’s important to make this significant purchase from a company or dealership you trust.”

Some dealers also provide additional benefits to help protect a purchase. For example, all vehicles purchased through Enterprise Car Sales are “Enterprise Certified,” pass a rigorous inspection by ASE-certified technicians and come with a 12-month or 12,000-mile limited powertrain warranty (whichever occurs first), 12 months of roadside assistance and a 7-day or 1,000-mile (whichever occurs first) buyback policy.

With a little research and careful planning, you can find a reliable used vehicle that excites you. Visit enterprisecarsales.com for more information.

Guest Commentary |
Tariffs, the goose, the gander and the American dream

by Glenn Mollette, Guest Commentator

Let’s give the tariffs time to work. I’m as anxious as you are since everything I have is tied to the stock market. If the stock market dies, I will be working or starving the rest of my life. Let’s hope things settle down soon. I believe they will and will grow even bigger.

The tariffs make sense. If China charges us a 25% tariff, then it’s only fair that we charge them one. The same goes for Canada, Mexico, Vietnam and all the others. If they want to charge us 40% then it’s only fair that we charge them the same. What is good for the goose is good for the gander.

Higher prices will come for a while. Car dealerships have seen a lot more people trying to make their deals before all the tariffs are tacked onto the prices.

People are worried about buying cheap stuff from China at Walmart or any other country. I honestly don’t want stuff from China. If China never ships another thing here it wouldn’t bother me. Sadly, everything I own today is, in some way, likely tied to a foreign country.

When I was a kid, I had a transistor radio made in Hong Kong. I thought it was funny to have such an item made from so far away. Throughout the years it became the norm. Cars, televisions, furniture, appliances and steel started coming from other places. Sadly, our American manufacturers were moving to Mexico, or any country on the planet where they could find slave labor. This turned into big profit for them because they shipped the goods cheaply back to the United States and made big profits.

We need jobs to come back to America.

The problem was that those jobs were forever lost in America. The American workers had to go out and find jobs at Walmart and Starbucks making $10 an hour which today is more like $15 to $18. They had been used to making $35 or $40 an hour before their job moved out of America.

People are crying today about what might happen to the prices at Walmart. Unfortunately, that’s all Americans can afford today is Walmart. Americans are so poor that we have to rely on Dollar General Store or Walmart.

Back in the fifties, sixties and even seventies people could go to one of the big cities in their state and find a good paying manufacturing job. There were lots of jobs. We made a lot of cars, televisions, radios, clothes, furniture, steel, lumber, and had coal mining and much more. These people made enough money to buy a house, buy two cars, buy food, raise their kids and have a real retirement after working 30 years. That was called the American dream.

Today the American dream is applying for disabled Social Security and then praying that you can afford to go to Walmart. Don’t even think about buying a new car, a new house or taking a vacation because on today’s income it is not going to happen.

Let’s try to keep breathing and see how these tariffs play out. We need jobs to come back to America. We need our own companies to come home. We need to buy our own American steel and make things here once again. If other countries will come to America and build their products here and hire our people that will be a good thing.

Just maybe, in a few years, once again, people in America will dream again.

About the author ~

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Commentary |
Beware of Tax “Bipartisanship”

Op-Ed by Dr. Todd J. Barry

In 2012, United States President Barack Obama faced a choice regarding how to legislate the permanency of the President George W. Bush Tax Cuts. In some ways, the dire economic growth of “the Great Recession” called for one obvious path, of making the tax cuts permanent. But, in other ways, President Obama was “suckered” into supporting this path, because of exhortations that economic calamity would otherwise result (then termed the “fiscal cliff”) which was largely an exaggeration. Mr. Obama opted to push to make some of the tax cuts permanent, for the middle-class, but this policy still greatly increased the United States (U.S.) deficit and debt.

Trump tax cuts will cause excessive demand, much of it going to people who do not need it, leading to higher prices.

Currently, Democrats in Congress will have to decide whether or not to be “suckered” into Mr. Trump’s tax permanency proposals, which are reminiscent of Mr. Bush’s. But, the economic situation today is different. Illinois Senators Dick Durban-(D) and Tammy Duckworth-(D) have, previously, sent letters to Republican leaders calling for tax “bipartisanship.” More recently, a similar letter from Michigan’s Senators was vague, though saying than that the tax cuts’ “permanency” would increase the U.S. deficit from $1.9 trillion dollars to $2.9 trillion.

America’s economy grew in 2024’s 3rd quarter at 3.1%, a very strong number. However, several Republicans, including House Speaker Mike Johnson-(R-LA), have said, paraphrasing, that “we have to get the economy going again,” but the problem is not that the economy is sluggish, but that it is overheated.

This situation also has little to do with the absence of shovel-ready projects, that outgoing-President Joseph Biden lamented about. Consequently, a best-policy approach would not be one that is expansionary, but one that is actually contractionary, yet at the same time helps Americans buy more at the grocery store.

Hillary Clinton’s economic team created a novel idea, of giving tax credits for businesses that would share that money with workers.

To put it simply, the Trump tax cuts will cause excessive demand, much of it going to people who do not need it, leading to higher prices. These prices are on top of the proposed tariffs, whereby it is unfathomable that since the middle of the 20th Century presidents have had powers uncheckable by Congress. Also, the inflation is largely due to the dovish policies of the Federal Reserve, which continues to cater to gullible investors on Wall Street. Deficits will soar, leading to higher interest rates, to even more inflation, and eventually to greater unemployment.

In 2016, presidential candidate Hillary Clinton’s economic team created a novel idea, of giving tax credits for businesses that would share that money with workers. The plan, though, was ambiguous, and poorly promoted. Alternatively, a supply-side approach, of giving tax credits to businesses that cut prices, risks becoming bureaucratically complex in American’s capitalist framework, an enforcement conundrum.

Wage controls, vis-a-vie the President Nixon era, are equally complex, as are anti-price-gouging measures. While making the middle-class tax cuts alone permanent is feasible, it could engender political challenges. And, unfortunately, these topics did not arise during the 2024 presidential election, because political leaders misinterpret economics, albeit 16 Nobel Laureate economists sent a petition to Washington warning about the economy’s’ health.

Yet, today, I propose an idea similar to Mrs. Clinton’s, which could help Americans to buy more, while costing the government less. Congress could provide a tax credit to businesses sharing 50% of the credit to workers’ wages. Here-named “demand-supply-side economics,” the supply-side aspect would expand production, but even if some resources ended up in CEO’s pockets, the other half going to blue collar workers would increase demand. The combination of the increase in the demand and supply curves at the same time, albeit disregarding their elasticities (the slope of the curves), would result in little changes to prices, but a greater output for Americans- more “bang for the dollar” at the grocery store.

Unfortunately, unresponsive companies might experience labor strikes, but the labor market helps to keep wages consistent with inflation. Furthermore, the government could choose the size of the program, and its time-length, without adding as much to the debt, which is now $31.5 trillion dollars and growing, every time one blinks.

The permanency and details of the Trump tax cuts, including those for the middle-class, need to debated, carefully, before mistakes are made that lead to even higher prices, and to even greater deficits and debt into the future.

Dr. Todd J. Barry holds a PhD from the U. of Southern Mississippi, and teaches economics, with Hudson County Community College in NJ, USA. Sean R. Barry holds a master’s degree in public administration, and has served on town committees in Branford, CT.

52% of Americans say there is a secret to success, according to new study

For most, financial success means being able to pay bills on time, owning a home, and affording luxuaries like travel abroad and attending entertainment events.

Photo: Christina Morillo/PEXELS

BPT - Is there a secret to financial success? Most Americans (52%) say "yes" — and the average salary considered successful is $270,000 per year, and $5.3 million in net worth, according to new research from Empower, a financial services leader in investing, planning, and advice.

But it's not just money — it's what money can buy. Only 27% rank wealth as the highest measure of financial success. Rather, most Americans say happiness (59%) is the most important benchmark — being able to spend money on the things and experiences that bring the most joy, doing what you love, followed by the luxury of free time (35%) to pursue personal passions.

People say success is about the "Factor of Four": hard work (84%); talent (65%); who you know (55%) or The Network Effect; and luck and circumstance (51%). The secret is to be a visionary (36%) — and then outwork everyone (32%), a belief held most firmly by those with incomes over $100k, rising to 40%. Pay yourself first, say over one third of people (35%), by putting money away and saving for retirement. For 1 in 5 younger generations (Gen Zers and Millennials 19%) a secret to success is "fake it 'til you make it."

"Fortune favors the bold, and people feel success is within their grasp with the right combination of dreaming and planning," says Rebecca Rickert, head of communications at Empower. "It's about disciplined, smart money choices, but overall people define financial success as very meritocratic, and a little serendipitous. There's a sense that effort and outperformance will take you far."

Still, nearly half of Americans (47%) feel they'll never achieve the level of success they're seeking. Just 37% of people consider themselves financially successful right now — with higher numbers of men than women (42% compared to 33%). Only half (50%) of people state they are or will be better off financially than their parents, a long-held meterstick for generational success.

Barriers to success

More than one third say the economy (35%) and income instability — irregular or insufficient income streams (30%) — is a culprit, along with lack of knowledge about managing finances (20%). Nearly a third say the biggest obstacle to success is not setting clear financial goals (28%). Over 1 in 4 (26%) say procrastination or delaying financial planning or decision-making gets in the way. People see a lack of savings (35%), overspending and not budgeting effectively (37%), and debt (36%) as barriers to success.

Despite hurdles, most Americans (58%) believe that they will achieve financial success in their lifetime, with the younger generations most optimistic (Gen Z 71%, Millennials 70%, Gen X 53% and Baby Boomers 45%).

Success, realized

For most people (63%), financial success is found in tangible wins: being able to pay bills on time, owning a home (52%), and affording experiences like travel and entertainment (47%). For 40%, it's about retiring at a goal age — and while they are working, enjoying the job (42%).

Having a financial plan (45%), building up retirement plan savings like 401(k) investments (30%), and investing in stocks (27%) are top money moves people say propel greater success. One in 3 people (30%) say getting good financial advice is worth its weight in gold.

More key findings from Empower's report, "Secret to Success":

Making it: People say the surest path to success is a well-paying job (51%), saving as much as possible and the power of compounding (46%), along with making smart investment decisions (46%). Some 36% say it's financial education. People reveal that a secret to success is never spending more money than you make (52%).
Risking it: Nearly 1 in 4 (23%) say taking risks is an important money move to get richer. A third (34%) believe success means prioritizing your efforts because Time is Money.
Society says: Americans say their personal definition of success is often at odds with what society prizes. Less than half of people (43%) define financial success as having a certain amount of money or assets. Conversely, people say society equates success with wealth (59%), power (44%), and fame (35%). Just 6% say they value "power" as a measure of success for themselves.
Success through the ages: Almost half of Americans (49%) feel less financially successful compared to others. 60% say that for their generation, financial success is much harder to achieve than for other generations — a sentiment highest among Millennials at 69%, and lowest among Boomers at 49%. Still, the definition of success may be evolving, as 83% agree that each generation has its own idea of success.
Success is in the eye of the beholder: Most Americans agree (71%) that there is no single measurement for financial success. One point of agreement: 61% say you can never have enough money.
Health = wealth: Over a third say success is just as much about physical well-being (35%) as it is how much money they have (27%).
More money, more problems: 47% agree with the adage "more money, more problems." The majority (71%) say being rich has a positive connotation, and 61% say being rich is more than dollars and cents.
Success at work: People say the definition of success at work is how much money they earn (38%), benefits like healthcare, insurance and time off (36%) — but it's also about the intangibles: finding the right job fit that aligns with their values and personality (35%) and receiving recognition and appreciation (35%). A third say having a good boss is worth its weight in gold (29%), and people view success in the workplace as flexibility (26%) and autonomy (20%).
The value of a degree: 35% say the college you attend is a big determinant of how rich you are (vs 65% who say it isn't).

Visit The Currency™ to read Empower's full research report, "Secret to Success."

Viewpoint |
The rise of “Corporation Communism” is undermining democracy

by Jacque Trahan

In 2010, the Citizens United v. FEC Supreme Court decision redefined American politics. By granting corporations the same free speech rights as individuals, it allowed them to spend unlimited sums on elections. While proponents called it a victory for free expression, it has instead created a dangerous paradox: a system I call “corporation communism.”

At first glance, the term might seem contradictory. After all, corporations are synonymous with free-market capitalism, while communism is the antithesis of that system. But beneath the surface, there’s an unsettling resemblance.

Much like the centralized control of resources in communist regimes, corporations have amassed outsized power, dominating markets, influencing legislation, and concentrating wealth. This centralization doesn’t reflect the competition capitalism promises; instead, it mirrors the monopolistic tendencies of an authoritarian state.

As President Theodore Roosevelt once said, “The corporation is the creature of the State, and it must be held to strict accountability to the people.” Roosevelt—a Republican—championed trust-busting because he understood that unchecked corporate power was a direct threat to democracy. His wisdom is more relevant now than ever.

Related reading ~

How We Got Here

The Citizens United decision unleashed billions in corporate spending, turning elections into auctions. Candidates no longer vie for votes alone; they chase dollars from the wealthiest donors. Policies that serve public interests—affordable healthcare, climate action, workers’ rights—are sidelined for those favoring corporate profits.

President Franklin D. Roosevelt, a Democrat, warned during the Great Depression: "The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic State itself." Today, corporate lobbying often overwhelms the will of the people, making FDR’s cautionary words painfully prophetic.

This system fosters what I call "economic elitism," where a handful of powerful entities dictate the rules. From healthcare and energy to tech and agriculture, monopolies have reduced competition, stifling innovation and raising costs for everyday Americans.

Why Call It 'Corporation Communism'?

Though the term may sound provocative, the parallels are striking:

Centralized Power: Just as a communist state controls resources, corporations dominate entire sectors, from Big Tech to Big Pharma.

Loss of Choice: Consolidation through mergers limits competition, leaving consumers fewer options—whether in broadband providers or news outlets.

Suppression of Dissent: Employees who speak out often face retaliation, while public critics risk lawsuits or smear campaigns.

Reverse Redistribution: Wealth is siphoned upward, enriching executives and shareholders, much like the privileges enjoyed by elites in authoritarian regimes.

The Threat to Democracy

Unchecked corporate power corrodes democratic values. Voters’ voices are drowned out by well-funded lobbying and attack ads. Local businesses are crushed under monopolistic practices, reducing entrepreneurship—the backbone of a healthy economy.

President Dwight D. Eisenhower, another Republican, once warned in his farewell address: "In the councils of government, we must guard against the acquisition of unwarranted influence… by the military-industrial complex." His words echo today, as corporate influence extends far beyond the military into nearly every aspect of policymaking.

How We Fight Back

Reversing “corporation communism” requires bold action:

Overturn Citizens United: Campaign finance reform is essential to restore fair elections.

Break Up Monopolies: Enforce antitrust laws to dismantle corporate giants and promote competition.

Demand Transparency: Require corporations to disclose political contributions and lobbying activities.

Empower Workers: Strengthen unions and worker protections to ensure fair wages and working conditions.

A Call to Action

The promise of capitalism is opportunity for all—not unchecked power for a few. By framing this issue as "corporation communism," we reveal the irony of a system that cloaks monopolistic control in the rhetoric of freedom.

Leaders across political lines—Teddy Roosevelt, FDR, Eisenhower—recognized the dangers of unchecked power, whether from corporations or governments. Their words remind us that democracy thrives only when power is accountable to the people.

It’s time to reclaim democracy from those who would buy it out from under us. Let’s make sure our government answers to the people—not corporations.

Based in Lafayette, Louisiana, Jacque Trahan loves to travel. "I save most of my money for this alone, concerts, festivals, video games with friends, I stream from time to time (but need to update my pc), and enhancing my coding skills." Jacque hopes to become a data engineer.

Illinois farmers await proposed Trump tariffs, questioning how they will affect their agribusiness operations

Photo: Wolfgang Eckert/Pixabay

by Terri Dee
Illinois News Connection

Increased political instability on the global front and greater export competition is creating anxiety for agricultural producers.

CHICAGO - A new president will move into the White House in less than a month and Illinois farmers are questioning whether Donald Trump's tough talk on tariffs will become a reality, and how his decision will affect their livelihood.

The National Corn Growers Association said a trade war with China could reduce corn and soybean exports nationwide by millions of tons. The projection could harm Illinois farmers, in a state that is second in the nation for corn acreage.

Ben Palen, co-owner and manager of Ag Management Partners, a Denver-based sustainable agriculture advisory firm, said increased political instability on the global front and greater export competition are creating some anxiety.

"I just don't think that you can have a coherent and consistent policy for agriculture if you go from one crisis to another," Palen argued.

Last weekend's last-minute spending bill in Congress to keep the government running through mid-March includes $10 billion in one-time payments to farmers, and another $20 billion for those affected by natural disasters in the last two years.

During Trump's first term, emergency aid was sent to farmers affected by the initial trade war. But the emphasis now is a push for budget cuts, which could include rolling back billions in unspent funds from the Inflation Reduction Act.

Palen looks to legislators to identify new markets for farmers to sell their crops and thinks it is not the time to dwell on trade disputes.

"I think farmers are very good at production," Palen pointed out. "It's just part of our DNA; we want to produce, produce, produce."

The most recent U.S. Census of Agriculture data for 2022, showed Illinois farms and ranches produced almost $27 billion in products, a 55% increase from 2017.

Small business employ 44% of workers in Illinois, two laws set to expire will hurt if not renewed

by Terri Dee
Illinois News Connection

A large tax hike could appear soon, that would affect Illinois' small businesses still rebounding from the pandemic. One group hopes Congress will act before two bills expire, and the tax increase takes effect.

A small business advocacy group, The National Federation of Independent Businesses (NFIB) says one of them - the 20% Small Business Deduction Act - was created to align small business tax rates with those of larger corporate competitors.

The group's Vice President for Federal Government Relations Jeff Brabant said...

"It's difficult for small businesses to be able to compete with a lot of their larger competitors, and increasing prices isn't always a great option for them," said Brabant. "If you're an employee and you go to a small employer who may not have the money to be able to offer great benefits, versus a large employer who can offer those benefits, it's always going to put the smaller employer at a little bit of a disadvantage."

If Congress decides not to renew the 20% Small Business Deduction Act, Brabant predicted that 90% of America's businesses would face additional barriers to growth and hiring more workers.

According to the U.S. Small Business Administration's 2023 Profile report, Illinois has slightly more than 2 million small business employees - which account for 44% of the state's employees.

The other law up for review by the House is the Main Street Tax Certainty Act, which permits small businesses to deduct up to 20% of their qualified business income and make it a permanent deduction.

Brabant noted that the NFIB strongly supports both measures, which expire on December 31, 2025 - and have bipartisan support.

As the country waits to see the presidential election results, he said he believes the plight of small businesses should be the "number one issue" on Congress's mind.

"It shouldn't be a Republican or Democratic issue," said Brabant. "This should be 'small businesses are the foundation of the economy,' and I don't think anyone wants to see Main Street businesses have a tax hike."

Brabant said the organization is glad both presidential candidates have talked about small businesses, because these discussions don't always occur.

He said NFIB's focus is to educate and increase Congress' awareness, and he said he hopes they will act sooner rather than later.

Keywords: Illinois small business tax increase, 20% Small Business Deduction Act, Main Street Tax Certainty Act, Small business tax reform 2025, Impact of tax hike on small businesses

Money Matters |
Low down payment mortgages help first-time home buyers

(Brandpoint) - Traditionally, saving up for a 20% down payment has been the largest obstacle for aspiring homeowners and this challenge is even more acute when interest rates drive monthly mortgage payments higher. Despite higher rates cooling home sales last year, hundreds of thousands of first-time homebuyers leveraged private mortgage insurance (MI) to put as little as 3% down to access homeownership.

It would take the average homebuyer 27 years to save for the down payment and closing costs.

According to a report released by U.S. Mortgage Insurers (USMI), 64% of homebuyers who used private MI last year did so to purchase their first homes and to begin building equity, a 6% increase in first-time buyers' share of the market from 2020. Considering a 20% down payment on the national median home price of approximately $425,000 is $85,000, many aspiring homeowners without the resources to make large cash down payments understandably choose private MI. After all, putting 5% down on that same home requires saving only $21,000 in comparison. USMI reports that 35% of homebuyers using private MI in 2023 had annual incomes lower than $75,000.

"Private MI remains one of the most helpful tools available to first-time and low- to moderate-income buyers in the market. Private MI helps borrowers overcome the large down payment barrier to affordably and sustainably qualify for financing and start reaping the benefits of homeownership years earlier," said USMI Board Chairman and Enact President and CEO Rohit Gupta.

In 2023, private MI helped 800,000 buyers purchase homes using low down payment mortgages, and 39 million homebuyers have achieved this cornerstone of the American dream with private MI since it was first introduced. If a 20% down payment were required, it would take the average homebuyer 27 years to save for the down payment and closing costs, three times longer than the time it would take to save for the 5% down payment that is often used with private MI. Fortunately, you don't need a 20% down payment to become a homeowner.

USMI President Seth Appleton described the role that private MI plays for housing affordability and access as "opening the homebuying experience up to working families, including first-time buyers. People do not need to save for 20, 30 and even 40 years to meet the mythical - but not required - 20% down payment threshold to be able to afford their first house; instead, millions of homebuyers have achieved the American dream of homeownership and started building their wealth and equity by using private MI."

Another advantage for homebuyers, according to USMI, is that private MI is a temporary cost; monthly borrower-paid MI can cancel after the homeowner establishes sufficient equity either through regular payments or home price appreciation. When mortgage insurance is canceled, the borrower's monthly overall payment goes down.

There are many financing options for homebuyers to consider. Learn how you might be able to use private MI to start your homebuying process at lowdownpaymentfacts.com, a resource launched by USMI to offer homebuyers low down payment mortgage information and dispel the myth that a 20% down payment is required to become a homeowner.

How cattle grazing protects and benefits the land

Photo provided

(Brandpoint) - With cattle ranching featured front and center in America's living rooms due to the popularity of shows highlighting the western lifestyle, and with Climate Week piquing interest in sustainability, it's a good time to raise awareness about how farmers and ranchers - and their cattle - do a lot more for the country and environment than just being the backdrop of a popular western drama series.

According to the National Cattlemen's Beef Association, a contractor to the Beef Checkoff, it's about ranchers as stewards of sustainable land management, their cattle playing a crucial role in mitigating climate change and wildfires, and beef's role in a healthy, sustainable diet.

New research links cattle grazing to wildfire mitigation

New research by the USDA Agricultural Research Service recently reported some surprising findings: Grazing can benefit invasive sagebrush communities and more than that, can combat wildfires. With much of the western U.S. beset by wildfires in recent years, it is crucial for people living in those areas to understand that cattle grazing actively mitigates the effects and spread of fires by consuming plants that would otherwise act as fuel.

Outdated dogma suggests livestock grazing in the sagebrush steppe in western rangelands negatively impacts those ecosystems. This new research, published in the scientific journal Ecosphere, found the opposite is true. According to the report, the ARS discovered that "strategically applying livestock grazing prior to the occurrence of climate-induced wildfires can modify sagebrush steppe characteristics in ways that decrease fire probability in the communities, promote biodiversity while reducing postfire annual grass invasion, fire-induced loss of native bunchgrasses and fire damage to soil biocrusts."

In plain language, it means that if cattle graze on the sagebrush steppe regularly, it will induce shorter flame lengths if a fire occurs, slow the rate of fire spread and prevent invasive grasses from popping up after the fire moves through. That's because, when cattle graze, they're munching away on grass and plants that could otherwise act as fuel during wildfire season, and they're doing so on land that is most often unsuitable for growing crops.

How cattle grazing can benefit the land

"As we talk about climate change, and the dryness that we see, cows are a great mitigator of wildfires," said Janey VanWinkle, a fourth-generation cattle rancher in Colorado. "In a lot of areas where there are invasive plant species, for example, cheatgrass, cows will eat that forage down, which slows the burn once a wildfire is started."

Ranchers like the VanWinkle family are conservationists. While caring for their animals, they're also caring for the land.

"When talking about land use, you could ask, 'Could this land be used for producing crops and other types of food?' and the answer is, most likely not where I live, with one of the limiting factors here being water," VanWinkle explained.

The ways cattle grazing can benefit the land go even deeper than preventing wildfires. According to 2024 UC Davis research, grazing:

* Decreases the potential for soil erosion and regulates the return of nutrients to the soil

* Promotes plant diversity and abundance by regulating weed growth

* Preserves open space and regenerates soil and plant life to promote carbon sequestration through the biogenic carbon cycle.

Cattle and bison have been grazing on U.S. lands for centuries. With careful stewardship of ranchers like the VanWinkle family, they can be helping the planet for centuries more.

"Cattle grazing truly is the best use of this land as it provides wildlife habitat and a very high-quality source of protein," VanWinkle said. "What really matters is protecting our landscapes. I assure you that I want my grandchildren to know what it's like out in nature and on the ranch."