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The Gender Spectrum: A Scientist Explains Why Gender Isn’t Binary

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The gender spectrum is an understanding that gender is not binary (female/male), but rather a spectrum of biological, mental and emotional traits that exist along a continuum.

In contrast, the gender binary—also called gender binarism or genderism—is a belief that gender is composed of two distinct and opposite genders (female and male) in which there is not overlap.

Unfortunately for those who believe in a gender binary, it is not scientifically or medically correct. Gender can’t be binary, because it is a personal identity and is socially constructed.

Sex—which refers to one’s biological characteristics—also exists as a spectrum, because intersex people exist.

Today, numerous scientific fields, including biology, endocrinology, physiology, genetics, neuroscience, and reproductive science, have confirmed that both sex and gender exist as a spectrum.

This is true for humans and across the animal kingdom.

Ruby Rose: Her Life, Career, Surprising Facts You May Not Know

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If you’ve been binging Orange Is the New Black, then you’re well aware of the superstar Ruby Rose. With her edgy tattoos and slick short hair, she caused quite the commotion when she appeared on the screen. People didn’t know much about the Australian model beforehand, but were curious to know more once they saw her.

Ruby Rose is a talented individual who has appeared in a number of high profile films and TV shows. She also does her own filmmaking and is a skilled athlete. If you’re interested in learning more about Ruby Rose, you’ve come to the right place. [Read more…] about Ruby Rose: Her Life, Career, Surprising Facts You May Not Know

The Complete Options Trading Guide: What You Need to Know

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If a stock’s price goes down, can you still make money? Yes, if you’re investing in options. Options trading can benefit your investment portfolio in many ways. However, learning how to trade options can seem intimidating. This options trading guide will tell you what you need to know.

You can decide if investing in options is the right investment decision for you.

What Is Options Trading?

An option is a contract that allows but doesn’t require an investor to buy or sell an underlying asset at a predetermined price by a specific date in the future.

Options get their name from the fact that you have the option but not the obligation to buy or sell.

Many investors use the term “stock options” to refer to all types of options trading. However, stocks are just one of the possibilities for options. Certain exchange-traded funds (ETF) and stock indexes, as well as assets like bonds, currencies, and commodities, are available for options contracts.

Options are derivatives. This means that they derive their value from another asset. For example, the value of a stock option depends on the price of the stock.

Options differ from stocks because an option doesn’t give you ownership in the company. Options differ from futures because you can withdraw from an options contract at any point before it expires.

Call and Put Options

An option that lets you buy shares at a later time is a call option. An option that lets you sell shares at a later time is a put option.

For both call and put options, the option contract has a strike price and an expiration date. The strike price is the price that the investor and the seller agree on to either buy or sell the shares.

The expiration date is the end of the contract. You can exercise the option at its strike price until the expiration date of the contract. The length of an option contract can range from a few days to several months.

Call Options

A call option is a contract that lets you buy a certain amount of shares in an asset by the expiration of the contract. Contracts usually include 100 shares of the underlying asset.

When you buy a call option, you expect the price of the stock or other security to go up. You make a profit from your contract by buying those stocks at the strike price of the contract, which is less than their new higher price. You can also sell the call option and earn the difference between what you paid and the current price.

Put Options

A put option is a contract that lets you sell a certain amount of shares in an asset by the expiration of the contract. Put contracts are also usually for 100 shares.

If you want to make a profit with a put option, you want the price of the underlying asset to go down. You can then sell the option for the strike price of your contract, which is more than the asset’s reduced price. If you think the price will go up, you can sell the put option before the contract expires.

Options Pricing

The price you pay for an option contract is called the premium. You pay the premium upfront.

The premium depends on the price, intrinsic value, and extrinsic value of the underlying asset. The strike price also affects the premium.

The intrinsic value of a stock or other asset is the difference between the strike price of an option contract and the asset’s current price. The extrinsic value includes factors other than those in the intrinsic value. The length of the option contract is an example of an extrinsic value factor.

Pros and Cons of Options Trading

Options trading has many benefits for your investment portfolio. It also has potential risks that you should evaluate before investing in options.

Benefits of Options Trading

Options trading gives your investment portfolio several advantages.

First, you lock in a strike price and an expiration date, but if the asset doesn’t rise or fall like you expected you don’t have to make the trade. Instead, you could let it expire and the most you’ll lose is the premium you paid (your upfront investment).

You also have a lower upfront financial commitment with options trading than with stock trading. This is because options let you control (i.e., have the option to buy or sell) a large number of shares for much less it would cost to buy those shares outright.

Beyond the perk of controlling a lot shares with little money, you don’t need large movements in a stock price to profit.

Finally, options trading is a good hedging tool. For example, if you own shares of a company, you could buy put options to reduce your potential losses if the stock price goes down. Many investors use options for market indexes like the S&P 500 as a hedge for possible short-term declines in the market.

Potential Negatives of Options Trading

There are also downsides of options trading. First, options trading requires a hands-on investment approach. If you don’t want to actively and consistently monitor your investments, options trading may not be a good choice. The investing process is also more complicated than for other asset classes.

Second, options are very time-sensitive. Even if you correctly predict the direction of a price change, you could still lose money if the price doesn’t change enough by the expiration of your option contract.

Third, trading fees and commissions can add up with options trading. You’ll need to take these fees into account when evaluating the potential profits of an options strategy.

Finally, you’ll probably have to pay short-term capital gains taxes as well. Options trades are shorter-term investments. Any investment you hold for less than a year falls under your ordinary income tax rate instead of the lower long-term capital gains rate.

It’s never fun to pay “Uncle Sam” a higher tax rate, so you’ll definitely want to take this into account.

How to Invest in Options

As with most asset classes, you can buy options with a brokerage investment account.

You can use an online trading platform like E*Trade or TD Ameritrade. Some of these platforms have an investment app as well. You can also use a traditional brokerage service.

Opening a Brokerage Account

The US Securities and Exchange Commission (SEC) requires that brokers evaluate potential customers who want to trade options before approving their accounts. To open an account, you’ll need to fill out an options trading agreement. This agreement helps the broker see how well you understand options trading and the risks associated with it.

You have to keep at least $2,000 in your brokerage account.

Choosing a Broker

You should consider several features when choosing a brokerage service.

First, compare commissions and fees. What you pay to make a trade impacts your profit or loss. You’ll find that how much you pay can vary significantly from one broker to another.

If you’re using an online platform, consider the platform itself. Some online brokers have a full-featured platform as well as one that’s easier to use.

Beginning investors may prefer a more user-friendly interface. More experienced traders usually like a platform with more features.

Many online brokers offer educational resources. These can be very useful for investors who are new to options trading.

Options Trading Guide Summary

This options trading guide has given you the basics to decide if options trading is right for you. Investing in options lets you profit from changes in an asset’s market price at a lower upfront cost. With most types of options trading, your risk is limited to the premium you pay.

Options trading is more complex than some other investments, but with a little education, you can learn this powerful investment approach.

Interested to learn more? Join a half million other readers or connect with Cade on Instagram.

5 Facts About Gender: Stop Splitting Humans Into Pink and Blue

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All too often, the topic of gender gets oversimplified. This is because the science, history, and commercialization of it are largely misunderstood. This is happens for a few reasons.

First, although medically and scientifically inaccurate, it can be convenient to group people into “buckets.” I don’t agree with this logic, but it often happens.

Second, because gender is bimodal (not binary), much of the population does fall into the categories of “female” and “male.” By bimodal, I mean gender is a spectrum that has clusters.

Of course, there’s a diverse range of people outside these categories, but you can see how groupings of people could arise when averages are used and inclusivity is not considered. [Read more…] about 5 Facts About Gender: Stop Splitting Humans Into Pink and Blue

Starting an Emergency Fund in 6 Simple Steps

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Financial emergencies are a natural (albeit unenjoyable) part of life. They happen all the time! Whether the boiler breaks, the car won’t start, or you need unexpected medical treatment…the list of surprise expenses goes on and on.

The trick to minimizing the damage? Being prepared for them in advance.

That’s where starting an emergency fund comes into play. Unlike the 70% of people in America who have under $1000 in savings, you can set a sizeable sum of money aside for a rainy day. Build up this fund over time and you’ll be able to cope with any disasters that come your way! [Read more…] about Starting an Emergency Fund in 6 Simple Steps

The Different Types of Retirement Accounts, Explained

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“When is the best time to plan for my retirement?” That is a question that should be on your mind. Data reveals that 64% of Americans are not financially ready for retirement.

What is even more alarming is that 48% of American workers don’t care about their retirement.

If you are someone planning for retirement in your early years, then congratulations! You already have the right mindset. All you need is the proper direction.

Retiring comfortably begins with understanding the different types of retirement accounts that will work for you best.

Thus, I invite you to explore the different kinds of retirement accounts, which we’ll delve into below. I promise to keep it clear and simple, because this topic is all too often made complex.

The 401(k)

Are you working for a company? If so, one of the most common types of retirement accounts you’ll encounter is the 401(k). It is an employer-sponsored retirement fund that aims to help employees save up some money through mutual funds, target date funds, or other plan offerings.

Also, there are two types of 401(k) plans, namely, the Roth and the traditional type.

1. Traditional 401(k)

A traditional 401(k) lets you make contributions using pre-tax dollars (your gross income). This way, you lower your taxable income, saving you cash come tax time.

However, this income and any profits you make will be taxed when you withdraw it at retirement. The downside of this is that tax rates are historically low right now and they could rise between now and when you retire.

If you’re lucky, your employer may offer you a full or partial match for your contributions.

2. Roth 401(k)

A Roth 401(k) is the exact opposite. The contributions you make to a Roth 401(k) are made with after-tax dollars. This means that there’s no upfront tax deduction to help you at this stage of your life.

There’s a flip side to this, though. Withdrawals of both your contributions and your earnings are tax-free when you pull them out in your later years.

To get this perk, you need to be over age 59 and a half and have held your account for at least five years.

The 403(b)

In case you are working for a tax-exempt, non-profit organization, you will encounter the 403(b) plan. A 403(b) works almost the same as a 401(k) plan.

They both offer the same tax treatments and early withdrawal penalties. They also have the same limits as far as contributions go.

However, they differ in one key aspect, which is the investment options. If a 401(k) plan usually comes with mutual fund options, a 403(b) comes with various insurance products. These include annuities and other options that yield low returns.

Pension Plans

Another employer-sponsored retirement plan is the pension plan. The amount of pension you will receive upon retirement depends on two factors. These factors are the length of your employment and your salary history.

Thus, as an employee, your only duty is to do your job well and remain with the company until you retire. With this setup, the risk falls on your employer’s shoulders. They will have to save and invest your contributions to ensure your retirement payout.

Interestingly, only 21% of all workers in the country participate in a pension plan. This includes workers from the private sector and state and local governments.

This low percentage reflects that pension plans have gradually been phased out by most employers. Today, most workers and business owners utilize either a 401(k) or a 403(b) plan.

Thrift Plans

There is also the thrift savings plan or TSP. This retirement plan is for members of the military, as well as federal workers. The TSP gives these workers a chance to invest in something tax-advantaged.

The government entity you are working for can take out your contributions directly from your salary. As for the investment options, there are five that TSP offers:

  • Government Securities Investment or (G) Fund
  • Common Stock Index Investment or (C) Fund
  • Small Capitalization Stock Index or (S) Fund

Completing the options are the Fixed Income Index Investment or (F) Fund and the International Stock Index Investment or (I) Fund.

The Individual Retirement Arrangement (IRA)

With the uncertainty of the times, you can go beyond the traditional method of relying on your employer for your retirement plan. You can create a do-it-yourself (DIY) plan by leveraging an Individual Retirement Arrangement (IRA).

An IRA is an account that lets you save for your retirement outside of what your company offers.

The good thing about IRAs is the flexibility they offer. You can use an IRA to invest in the usual options of stocks, bonds, exchange-traded funds (ETFs), and mutual funds. Depending on how you structure it, you can also invest in more advanced investments like annuities and real estate.

Like the 401(k), IRAs also come in two forms: the traditional and the Roth.

1. Traditional IRA

Like the traditional 401(k), it’s a matter of when you make your tax payments. Traditional IRA allows you to make contributions with pre-tax dollars. The importance of this is that it lowers your overall taxable income.

This will benefit you the most if you’re in a high tax bracket.

2. Roth IRA

Roth IRA plans are the opposite. You make contributions using after-tax dollars. This means you won’t get any immediate tax benefits.

However, both your contributions and your gains will be entirely tax-free when you withdraw them in retirement. This means you won’t need to worry about what happens to state or federal tax brackets in the coming years.

3. SIMPLE IRA

This stands for Savings Incentive Match Plan for Employees. This is often an option for you if you work in a small business. It’s another traditional IRA plan that serves to help small businesses give benefits to long-term employees.

How this works is that each employee makes an annual contribution. In 2021, it’s expected to be capped at $13,500.

If you’re over the age of 50, making a catch-up contribution becomes an option. This allows you to increase your annual maximum to $16,500.

4. SEP Plan

Are you a self-employed individual? Consider setting up a SEP plan. This is a tailor-made plan to help individuals add to their savings accounts little by little.

What makes the SEP IRA powerful is that it has a substantially higher annual contribution limit. It’s higher than either standard IRA and 401(k) plans. This means that you can save up much more toward retirement than you would with standardized plans.

A key restriction of SEP IRAs is that only an employer can contribute to a SEP IRA, and they are required to make contributions to full-time employees that equal their own contributions.

For this reason, SEP IRAs are usually leverage by self-employed folks or small-business owners with few or no employees.

Taxable Investment Accounts for Retirement

If you want more flexibility and unlimited contributions, then this approach would be your best bet.

A taxable account is simply a normal savings or investment account that you “earmark” for retirement.

With a taxable investment account, you don’t need to worry about any income limits. Regardless of how big your salary is, you can put in as much money as you want. You can also invest in any type of asset that you want, from stocks to bonds to real estate.

Also, taxable investment accounts let you pull out your money anytime you want. And you can do so without paying any early withdrawal fees and penalties.

Types of Retirement Accounts For Your Future

Now that you understand the different types of retirement accounts, planning for retirement becomes more manageable. But why wait for your retirement payout when you can make more money today?

If you enjoyed this article or have follow-up questions, feel free to reach out here.

Interested to learn more? Join a half million other readers or connect with Cade on Instagram.

*Disclaimer: Nothing in this article should be construed as financial advice. Before making any decisions, you should consult with a professional adviser, such as a financial planner or CPA. Neither Cade nor this website have a financial relationship with any of the companies mentioned in this article.