VOLUME 10, ISSUE 6 - Thrive Financial Services
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VOLUME 10, ISSUE 6
THRIVE TIMES
A MONTHLY NEWSLETTER FROM THRIVE FINANCIAL SERVICES
JUNE 2021 THE $4.5 TRILLION CIRCULAR ECONOMY
NEWS AND UPDATES:
Economists see a new market on the horizon that not only offers tremendous
investment opportunity, but also a way to help stem the effects of climate
The $4.5 Trillion Circular change. They refer to it as the circular economy, estimating its projected value
Economy . . . . . . . . . . . . . . . . . Cover at $4.5 trillion by 2030.
Did You Know . . . . . . . . . . . . . . . p. 2
The key to this emerging market is connecting leading global organizations
Meet Our Team . . . . . . . . . . . . . p. 2
that lack the capability to transition to a circular business model with
Nonprofits Help Narrow Gender
innovative disruptors who need capital to scale circular solutions. The basic
Wage Gap . . . . . . . . . . . . . . . . . . p. 2
premise is to reduce waste by prioritizing biodiversity in a manner that creates
Preparing for a Loved One’s
a competitive market. There are a couple of initiatives that will drive this
Death . . . . . . . . . . . . . . . . . . . . . p. 3
movement:
ESG: Investing for Lower
Returns? . . . . . . . . . . . . . . . . . . . p. 4 Product innovation – the capacity to design and deliver sustainable
products, packaging and manufacturing solutions
Product lifecycle – generate new models of product extension and circular
consumption, including sharing platforms, secondary marketplaces and
repairs
Each year, the world consumes 1.75 times more natural resources than the
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The $4.5 Trillion Circular Economy (con't)
Earth can regenerate, a consumption trend that is
expected to more than double by 2050. The circular
Did You Know . . .
economy looks to address this problem by coordinating
Why was paper money created?
already existing industries (e.g., manufacturing +
disruptive technologies). By retooling how we consume,
Civil War coin hoarding caused the U.S. government to
the circular economy can eliminate waste and loop
create paper currency bills for the first time in 1861.
products back into the production system at end of use.1
Each and every one of the first bills was signed by one of
1 Peter Lacy, Wesley Spindler and John Dutton. World Economic Forum. Feb. 10, 2021. “The the six people who worked at the US Treasury.
circular economy can help save the planet – if we start innovating now.”
https://www.weforum.org/agenda/2021/02/the-circulars-accelerator-circular-economy-zero-
waste/. Accessed April 11, 2020. 4/21-1617875C
MEET OUR TEAM
Thrive continues to grow and add valuable employees to better serve you, our Client. If
you haven't met David Holtz yet, here is a great way to get to know him a little.
David Holtz joined Thrive Financial Services in 2021 as a Client Service Specialist. He
previously worked in a variety of roles including as a stock trader on Wall Street and as
a Client Services Associate at Vanguard. His background in trading and with assisting
clients makes him a valuable addition to the team.
David graduated from the University of Michigan in 2018 with a Bachelor of Business
Administration concentrating in accounting and finance. He obtained his SIE, Series 7
and Series 63 licenses in his previous role. David is this month's TEAM
MEMBER OF THE MONTH for
demonstrating Thrive's Core
In his free time, David enjoys being active in various sports including playing tennis and Values. Congrats, David!
basketball, as well as running.
NONPROFITS HELP NARROW GENDER WAGE GAP
IMPORTANT DATES New data shows there was a remarkable increase in women’s pay
last year, specifically in the nonprofit industry. In 2020, female
executives in nonprofit organizations increased their earnings by an
average of 92 cents on the dollar compared to their male
counterparts, up from 82 cents in 2019.
JUNE
20th - Father's Day Researchers say the dramatic increase was likely due to a
combination of factors:
20th - First Day of Summer
25th - Take Your Dog to Work Day Better-paying nonprofit positions
More women hired in top executive positions
28th - National Insurance Awareness Day Heightened awareness of gender inequities (an effect of the
30th - World Social Media Day #MeToo movement)
Younger board members pushing for gender and racial equality
JULY The final point is key. Generation X and millennials are taking on more
4th - Independence Day leadership roles within foundations and on their boards. They are
focused on driving parity across race and gender so that board
6th - International Kissing Day members better represent the nonprofit workforce and volunteer
13th - National French Fry Day base.
15th - National Give Something Away Day Unfortunately, while not as dramatic as before 2020, the gender pay
18th - National Ice Cream Day gap still exists in the nonprofit sector. In 2021, the average male
executive earns $129,200, compared $118,700 for women.1
18th - World Listening Day 1 Joyce Gannon. Pittsburgh Post-Gazette. March 22, 2021. “Gender pay gap is closing as women’s wages rise at
Pittsburgh region’s nonprofits.” https://www.post-gazette.com/business/career-workplace/2021/03/22/gender-
pay-gap-women-wages-nonprofits-Bayer-Center-Pittsburgh-area/stories/202103210025. Accessed April 5, 2021.
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PREPARING FOR A LOVED
ONE’S DEATH
America began 2021 experiencing the worst days of the
COVID-19 pandemic. As of Feb. 1, case numbers
continued to rise, with recorded deaths since January
2020 ranging from 413,1961 to 441,4092, depending on
sources used (CDC provisional count waits for a death
certificate, which can cause up to a two-week delay). Fox
News reports that funeral homes in some areas of the cremation, which runs the gamut from $1,000 to $8,000,
country are swamped with new business. Services at depending on options selected.6
some homes have increased from an average of 35 to 50
funerals a month to 100 to 150 in a single month.3 It’s also important to know that none of these estimates
include the cost of a cemetery plot, monument, marker or
In response to the increase in funerals and efforts to flowers. If you are aware of an impending death, you can
contain further spread of the coronavirus, the CDC offers shop for things like a casket and liner at other places
funeral guidance on how to plan and hold funeral than the selected funeral home.
services and visitations during the COVID-19 pandemic.4
However, when it comes to figuring out how to pay for There are two ways you can “prepay” for your own
burial and funeral services, most families are on their funeral. One is through a prepaid plan with a funeral
own. Social Security, Medicare and Medicaid do not home, wherein you select your options ahead of time and
reimburse these expenses, and only under the most dire pay a fixed cost via lump sum or installments over time.
circumstances do local government programs cover the The other is to earmark money for your survivors to use
cost of an “indigent” burial or cremation.5 for funeral costs. This can be through a bank account
with a designated beneficiary authorized for a “transfer
If your circumstances are not dire, be aware that the cost on death” (TOD) distribution after submitting a death
of burial and funeral services can run quite high. With the certificate.7 Or, it can be through some form of life
exception of a house or a car, they may well be the insurance paid out to the beneficiary who will handle
biggest expense many families incur in a lifetime. One your funeral arrangements.
way to pay for funeral expenses is to purchase some
form of life insurance. Please let us know if you’d like It’s a good idea to both discuss these arrangements
recommendations based on your circumstances. ahead of time and leave written instructions for your
loved ones. It is very difficult to plan a funeral when
The most recent statistics put the average cost of a grieving, so written directions of both your preferences
funeral between $7,000 and $12,000, which generally and how to pay for them are very helpful during this time.
includes viewing and burial, basic service fees, Be aware that if you do not make some type of
transporting remains to a funeral home, a casket, arrangement for payment ahead of time, and your family
embalming and other preparation. Be aware that while cannot decide how to pay, the decision may be left up to
there are regulations related to preserving remains prior the probate judge who handles your estate. In this case,
to burial or cremation, embalming is not required and is the person(s) most likely assigned the cost will be the
one way to save money if you opt for a direct funeral. closest relative(s) by blood or marriage (e.g., spouse,
Also note that embalming can be avoided through parents, children, siblings).8
1 Centers for Disease Control and Prevention. Feb. 1, 2021. “Daily Updates of Totals by Week and State.” https://www.cdc.gov/nchs/nvss/vsrr/COVID19/index.htm. Accessed Feb. 1, 2021.
2 Johns Hopkins University & Medicine. Feb. 1, 2021. “Coronavirus Resource Center/New Cases as of February 01, 2021.” https://coronavirus.jhu.edu. Accessed Feb. 1, 2021.
3 Hunter Davis. Fox News. Jan. 18, 2021. “Coronavirus surge increases strain on funeral homes: ‘Our morgues are too full’.” https://www.foxnews.com/us/coronavirus-funeral-homes-morgues. Accessed Jan.
26, 2021.
4 Centers for Disease Control and Prevention. Dec. 28, 2020. “Funeral Guidance for Individuals and Families.” https://www.cdc.gov/coronavirus/2019-ncov/daily-life-coping/funeral-guidance.html. Accessed
Feb. 1, 2021.
5 Nolo. 2021. “Who Pays for Funeral Costs?” https://www.nolo.com/legal-encyclopedia/who-pays-for-funeral-costs.html. Accessed Jan. 26, 2021.
6 Lincoln Heritage Funeral Advantage. 2021. “How Much Does a Funeral Cost?” https://www.lhlic.com/consumer-resources/average-funeral-cost/. Accessed Jan. 26, 2021.
7 Eric Reed. SmartAsset. Aug. 21, 2019. “Transfer on Death (TOD) Accounts for Estate Planning.” https://smartasset.com/estate-planning/tod-account. Accessed Jan. 26, 2021.
8 Nolo. 2021. “Who Pays for Funeral Costs?” https://www.nolo.com/legal-encyclopedia/who-pays-for-funeral-costs.html. Accessed Jan. 26, 2021.
1/21-1498627B
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would provide valuable multi-year contracts and produce
thousands of jobs nationwide.5
While historically, “green” companies have yielded lower
shareholder returns, that has changed in recent years.
At the end of 2020, a group of 30 asset managers with Wealth managers note that greater consumer interest in
more than $9 trillion under management launched the Net green products is producing higher company revenues
Zero Asset Managers Initiative. The goal? To help and shareholder returns.6
environmentally conscious clients’ transition to carbon
neutral portfolios by 2050.1 The more value shareholders see in their ESG portfolio,
the more they are willing to invest. In turn, this would lead
The wealth management group includes UBS Asset to more wind farms and solar farms. As more assets are
Management, AXA Investment Managers, DWS, Calvert committed to ESG, the opposite is true for “brown”
Research and Management, M&G, BMO Global Asset companies — meaning less capital available for coal
Management and Sarasin & Partners. Tactically, they plan mines and coal-burning plants.7
to prioritize companies they invest in based on their
commitment to real reductions in carbon emissions.2 Ultimately, consumer and investor choices can
They will set interim targets for every five years, gradually fundamentally change how companies behave with
ratcheting up to a net-zero portfolio within 30 years. regard to environmental, social and corporate
Furthermore, interim targets are to be aligned with the management choices — and the trend is rising fast.
Paris climate agreement, ultimately limiting global According to the Global Sustainable Investing Alliance’s
warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) most recent report, ESG investments among the five
above pre-industrial levels within that same time frame.3 major markets (U.S., Canada, Europe, Japan and
Australia/New Zealand) increased by 34% over a two-
Environmental, Social and Corporate Governance (ESG) year period.8
investing is poised for an upsurge in the coming years, as
companies are taking a more aggressive approach to 1 Simon Jessop. Reuters. Dec. 11, 2020.
“Asset manager group aims for carbon neutral investments by 2050.”
being part of the solution. In addition to the positive https://www.reuters.com/article/us-climate-change-funds-pledge/asset-manager-group-
social impact, shifting to “greener” solutions can reduce aims-for-carbon-neutral-investments-by-2050-idUSKBN28L0EP. Accessed Feb. 3, 2021.
2 Knowledge@Wharton. Nov. 9, 2020. “Why ESG Investors Are Happy to Settle for Lower
operational costs over the long term. For example, Returns.” https://knowledge.wharton.upenn. edu/article/esg-investors-happy-settle-lower-
returns/. Accessed Feb. 3, 2021.
incorporating solar energy in their power grid can help 3 Ibid.
4 Ibid.
reduce costs and help companies remain operational 5 Miranda Wilson. E&E News. March 1, 2021. “Biden’s ‘Buy America’ plan may
during a blackout.4 hit a solar wall.” HYPERLINK “https://protect-us.mimecast.com/s/J3b-
CM8KVQS60qloHwq9DH?domain=eenews. net” https://www.eenews.net/
stories/1063726219. Accessed March 9, 2021.
6 Knowledge@Wharton. Nov. 9, 2020. “Why ESG Investors Are Happy to Settle for Lower
Companies that produce green solutions look to be the Returns.” https://knowledge.wharton.upenn. edu/article/esg-investors-happy-settle-lower-
growth industries of the future. Recent government returns/. Accessed Feb. 3, 2021.
7 Ibid.
proposals to invest in infrastructure and clean energy 8 Ibid.
All written content is for information purposes only. Opinions expressed herein are solely those of Thrive Capital Management, LLC, a registered
investment adviser. All information should be discussed in detail with your individual adviser prior to implementation.
Fee-based financial planning and investment advisory services are offered by Thrive Capital Management, LLC, a registered investment advisor with
the United States Securities & Exchange Commission. Insurance products and services are offered through Thrive Financial Services. Thrive Capital
Management, LLC and Thrive Financial Services are affiliated companies.
Investing in securities involves risk, including the potential loss of principal. No investment strategy can guarantee a profit. None of the information
contained on this document is intended to offer personalized investment advice and does not constitute an offer to sell or solicit any offer to buy a
security or any insurance product.
Any references to protection benefits or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer,
in any way, to securities or investment advisory products.
Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products
that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.
Content prepared by Kara Stefan Communications, Advisors Excel and Thrive Financial Services.
TT062021-NL10-6
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