Friday, May 27, 2016

"365 by Whole Foods" Market Boasts Lower Prices and Higher Efficiency



This week, Whole Foods opened their "365 by Whole Foods Market" in Silver Lake, the first of a set of 13 such stores to be built around the country this year. The supermarket chain's new style of smaller store has already interested many customers in its first couple of days, and the company expects the fad to grow rapidly. In her L.A. Times article, Samantha Masunaga describes the new type of store and some of the ways it differs from the classical Whole Foods supermarket.

365 is Whole Foods' first smaller format store. However, it features many high-tech options and better deals than their regular stores, making it a highly sought-after alternative. People, especially Millennials, go to Whole Foods because they are looking for healthier, organic food options. However, eating healthier is often costly, and most people have pretty inflexible budgets when it comes to groceries. Therefore, when shoppers found out that 365's products were the same, but at a cheaper price, they flocked to the new store.

On Wednesday morning, when the store opened its doors for the first time, the parking lot was full and then some.  Interested shoppers circled the lot, having trouble finding a spot to park their cars, but when they finally got into the store, they were amazed by what they found. While the 365 has a smaller selection than a normal Whole Foods, its prices are significantly cheaper, which, too many Millennials with little disposable income, is a worthwhile trade-off. Additionally, the displays of produce feature electronic readers that measure the weight of fruits or vegetables and print stickers based on the measurement. In that way, the check-out process is quick and easy, saving time for both customers and employees.

Besides the reduced variety, the new 365 will also be missing Whole Foods' signature deli counter. However, it still has a large salad bar and a variety of pre-cooked hot food items. Analysts believe that 365 is likely Whole Foods' response to losing their share on the health food market. Other stores like Ralphs and Target have begun to provide organic options for their customers, which means Whole Foods is facing much greater competition in a once-blue ocean. Over the past three quarters, Whole Foods has shown declining sales, but the management hopes that the smaller, less cost-intensive 365 stores will help to turn that around over the coming year.

***************************************************************************************************
Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on FacebookTwitterLinkedIn, and Google+.
***************************************************************************************************

Friday, May 20, 2016

Berkshire Hathaway's Investment Boosts Apple Stocks



Warren Buffett, one of the richest men in the world, has been known to avoid investments in technology. So, it came as a huge surprise to many when it was revealed that his company, Berkshire Hathaway Inc., purchased 9.81 million shares of Apple stock in the first quarter. In his L.A. Times article, James Peltz described the reasoning behind Buffett's investment and how it affected Apple's shares and the stock market as a whole.

It is true that Buffett and his company generally avoid technology investments, mainly because Buffett admittedly doesn't understand technology enough to take the risk. However, they have made one exception in the past: Buffett's company owns a stake in IBM valued at $12.3 billion. Berkshire Hathaway's main investments are in companies like American Express, Coca-Cola, and Wells Fargo. Additionally, Berkshire owns dozens of companies such as See's Candies and Geico Insurance.

Likely because of Buffett's record of success in business and his company's large investment portfolio, Apple's stock prices rose 3.7% after the purchase was revealed on Monday. As of March 31, the end of the first quarter Berkshire Hathaway's stake in Apple was valued at $1.07 billion but is likely worth significantly less now due to declining Apple stocks. According to analysts, Berkshire likely made the purchase due to Apple's low prices in recent months. Apple's top-selling item and source of the majority of their revenue is their iPhone. The iPhone and other Apple devices had lower-than-expected sales this year, which was the main reason for lowered stock values.

Buffett has been quoted saying that the Apple purchase was made by one of his stock-picking lieutenants who did not consult Buffett before making the decision. However, Buffett seems optimistic that the stocks will regain their value and more in future months. Berkshire is always purchasing companies and shares and very rarely makes bad investments, which explains why so many normal people are suddenly investing in Apple, following Berkshire Hathaway's lead. Buffett, however, is known for his shrewd, long-term investments, and will likely drop the tech company, which he would usually avoid, when the investment gets back to its original value. Buffett doesn't understand tech companies, but some of his top advisors do. He may end up changing his stance in the future, though, if it turns out that the investment in Apple pays off as well as is expected.

***************************************************************************************************
Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on FacebookTwitterLinkedIn, and Google+.
***************************************************************************************************

Friday, May 13, 2016

Strategies to Saving for a College Education



For most parents, a big priority is trying to make sure that their children succeed in life. Parents want their kids to lead an easier life than they had, and most of them see education, especially a college degree, as the main path to that goal. Unfortunately, families have all kinds of financial demands that often take precedence over college, which can be years down the line. Chris Hiestand, in his L.A. Times article, discusses a few potential strategies to help struggling parents maintain their financial stability while still putting money away for future college costs.

A 529 savings plan is one such method to contribute to future expenses. Most savings plans, including the 529, involve the contribution of after-tax dollars to an account, where the money grows in interest and can be withdrawn, tax-free, to pay for educational expenses. Additionally, $14,000 per year can be given between parties as a tax-free gift. Anything above $14,000 is subject to gift taxes. The best thing about tax-free gifts is that they can be front-loaded up to five years in advance. In other words, a parent can put $70,000 into a 529 account one year, but then won't be able to contribute to the account for the next five years. This can often be better than contributing once per year because it gives the money more time to accrue interest, and since you use after-tax dollars, the contributions can be withdrawn tax-free.

Another option is using a Roth IRA to save for college and retirement at the same time. Once again, Roth IRA contributions are made with after-tax dollars, which means the contributions can be withdrawn without additional taxes or penalties. The Roth IRA is often better than a 529 plan for several reasons. Firstly, the 529 is based on a specific interest rate, while the Roth IRA gives you more flexibility to choose investments and decide how much money is being invested. Additionally, if your child doesn't end up going to college, the money in the Roth IRA fund can still be put toward retirement. Finally, perhaps the greatest advantage, is that the money in a Roth IRA does not count against financial aid while a 529 held by a parent will.

Often, there is no way to pay for college without taking out loans. However, there are smarter ways to get the best bang for your buck in loans. Over 70% of bachelor's degree recipients graduate with debt, and although getting a degree is an investment in the future, the returns on investment can be slow. Some loans allow students and their parents to push off interest and payments until 6 months after graduation, but when the interest finally begins to accrue, it can be at rates of 9% or higher. Many parents decide that it makes more sense refinance their mortgage and use the saved money each month to contribute to schooling. Others tap into their home's equity to pay tuition and fees.

In all, getting a college education is possible. Through a combination of saving, financial aid, and smart loans, a college degree can be affordable to some extent. Smart financial planning can be hard, but in general, getting a college degree is a good investment in yourself or your children, and should pay off in the long run. Financial stress today could be worth it if it means business success in the future.

***************************************************************************************************
Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on FacebookTwitterLinkedIn, and Google+.
***************************************************************************************************

Friday, May 6, 2016

Bitcoin's True Founder - Revealed at Last?



Bitcoins are a form of electronic currency first introduced to the public in 2009 by a creator who goes by the pseudonym Satoshi Nakamoto. The "mining" of these Bitcoins is performed by computer software following a mathematical proof. The software is open-sourced, which means anyone can use it and check it out to see how it works. Recently, as discussed in Samantha Masunaga's L.A. Times article, an Australian businessman and computer scientist named Craig Wright came out of the shadows and provided evidence showing that he may, in fact, be the elusive Mr. Nakamoto.

Bitcoin's protocols make it impossible to churn out an endless supply of Bitcoins; only 21 million coins can ever be produced by "miners." That's one of the things that sets the electronic currency apart from more "traditional" currencies. With dollars or Euros or any other form of government-backed currency, an unlimited number of bills and coins could theoretically be printed. Sometimes it is done to provide a shock to try to start a stagnant economy, but, more often than not, it results in massive inflation and more economic downturn than before. There is a limit on the number of Bitcoins in the world, which means their value is pretty stable, and inflation doesn't really exist.

Additionally, while central banks can charge exorbitant fees to someone trying to open up an account or someone trying to send funds internationally, Bitcoin cuts out many of those fees. A Bitcoin account can be created in a matter of seconds, with no fees. The decentralization of Bitcoin's network means that there is no bank to default on any loans, so you know your "funds" are safe. Best of all, the network is extremely transparent since every transaction is recorded in a secure "blockchain" that can be added to, but never changed. Unfortunately, most normal retailers don't accept Bitcoin as a form of payment. Over recent years, however, Bitcoin has become much more prevalent, especially with online retailers, so it is expected to come into more widespread use.

Although Wright, an entrepreneur with several masters' degrees and a couple of doctorates, came out with some proof showing that he may be the true creator of Bitcoin, there are still many doubters. In his digital messages claiming to be "Satoshi Nakamoto," he signed off using certain cryptographic keys that could be found in Nakamoto's work in the early days of Bitcoin. He also published a very technical post on his blog with information that no one but Bitcoin's true creator should have. Wright claims that he has chosen now to reveal his identity because he is tired of the misinformation being spread about Bitcoin and its stability. Additionally, the media has long suspected Wright's alter-ego, and he wanted to put an end to the investigations into him and his family. While he hasn't provided undeniable proof, it seems very likely that Satoshi Nakamoto's secret identity has finally been revealed to the world.

***************************************************************************************************
Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on FacebookTwitterLinkedIn, and Google+.
***************************************************************************************************