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5 Ways Trump Signing the GENIUS Act Could Impact Retirees
On July 18, President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law. Read More: Consider This: The GENIUS Act established regulations for stablecoins: cryptocurrencies pegged to 'stable' assets such as the U.S. dollar. It specified 'permitted payment stablecoin issuers' including both banks and nonbank entities. The law also clarified reserve requirements — the underlying assets held in reserve by the issuer to back the stablecoins, such as U.S. dollars or Treasury bills. So, how might the GENIUS Act impact retirees? Potential for Yield Some stablecoins are designed to generate a yield, despite being spendable like cash. That yield could come from the underlying reserve asset, or from lending out the underlying asset. 'For retirees, stablecoins could offer higher-yielding, low-volatility cash instruments,' explained David Materazzi, CEO of Galileo FX. 'In effect, owners could get the performance of a money market fund with something as spendable as cash. That makes holding liquidity more rewarding without increasing exposure to risk assets.' I Asked ChatGPT What Trump's 'Big Beautiful Bill' Means for Retirees' Taxes: Faster and Cheaper International Payments Owners can transfer stablecoins internationally for pennies, and near-instant speeds. That could make life far easier for family members to support one another across borders and currencies. Magnus Larsson, founder of fintech company MAJORITY, sees huge advantages for international transfers. 'Stablecoins, when properly backed and transparent, offer a more efficient way to move money globally without the delays and fees traditional systems impose, transforming money movement much like VoIP transformed telecom.' Estate Planning Through Smart Contracts Cryptocurrencies allow for smart contracts, in which the owner can set up self-executing orders within the blockchain technology. In other words, owners can set up automated transfers within the cryptocurrency itself — without needing a human intermediary such as a trustee. 'Smart contracts allow more transparent and controlled gifting, even from beyond the grave,' noted financial planner Christina Lynn of Mariner Wealth Advisors. 'While this remains speculative, regulated stablecoins could someday support innovative estate planning tools that automate distributions to beneficiaries and reduce traditional trust administration costs.' High Transparency Means No Privacy Blockchain technology stores every transaction in its history. That transparency is useful, but it also makes the owner's spending public. 'Every transaction becomes traceable, timestamped and stored,' observed Materazzi. 'Retirees used to cash will lose financial privacy entirely. If stablecoins become the default for Social Security or Medicare reimbursements, then spending data becomes a public-private asset.' Risk of Platform Failure Nonbank entities can now issue stablecoins — without being FDIC-insured. Crypto exchanges have failed in the past, or suffered theft. Remember the Mt. Gox heist in 2014? Hackers made off with 850,000 Bitcoins — worth over $100 billion today. Retirement planning counselor Jake Falcon of Falcon Wealth Advisors sees huge risk among issuers. 'Without FDIC insurance or SIPC protections, losses could be permanent,' he said. 'Allowing nonbank entities to issue digital currencies without uniform oversight could echo the 19th-century wildcat banking era, where unregulated banks issued their own notes, often leading to collapse.' Stablecoins offer both opportunities and risks to retirees. Proceed with caution after speaking with your financial advisor. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Here's the Minimum Salary Required To Be Considered Upper Class in 2025 Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy This article originally appeared on 5 Ways Trump Signing the GENIUS Act Could Impact Retirees Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Calculating The Fair Value Of SUTL Enterprise Limited (SGX:BHU)
Key Insights The projected fair value for SUTL Enterprise is S$0.68 based on 2 Stage Free Cash Flow to Equity With S$0.81 share price, SUTL Enterprise appears to be trading close to its estimated fair value When compared to theindustry average discount of -4,296%, SUTL Enterprise's competitors seem to be trading at a greater premium to fair value Today we will run through one way of estimating the intrinsic value of SUTL Enterprise Limited (SGX:BHU) by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Step By Step Through The Calculation We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (SGD, Millions) S$4.59m S$4.03m S$3.72m S$3.55m S$3.45m S$3.41m S$3.41m S$3.43m S$3.48m S$3.53m Growth Rate Estimate Source Est @ -18.28% Est @ -12.09% Est @ -7.75% Est @ -4.72% Est @ -2.60% Est @ -1.11% Est @ -0.07% Est @ 0.66% Est @ 1.17% Est @ 1.53% Present Value (SGD, Millions) Discounted @ 7.4% S$4.3 S$3.5 S$3.0 S$2.7 S$2.4 S$2.2 S$2.1 S$1.9 S$1.8 S$1.7 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = S$26m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.4%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.4%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = S$3.5m× (1 + 2.4%) ÷ (7.4%– 2.4%) = S$72m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= S$72m÷ ( 1 + 7.4%)10= S$35m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is S$61m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of S$0.8, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at SUTL Enterprise as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.4%, which is based on a levered beta of 1.165. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for SUTL Enterprise Looking Ahead: Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For SUTL Enterprise, there are three fundamental elements you should consider: Risks: To that end, you should learn about the 2 warning signs we've spotted with SUTL Enterprise (including 1 which can't be ignored) . Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! Other Top Analyst Picks: Interested to see what the analysts are thinking? Take a look at our interactive list of analysts' top stock picks to find out what they feel might have an attractive future outlook! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the SGX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
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Beto O'Rourke Says Third Trump Term Is Coming If Texas Democrats Don't Fight Back
Former Texas Rep. Beto O'Rourke warns Democrats of a third Donald Trump term if they don't stop Republicans from gerrymandering Texas and giving them an additional five seats in Congress. 'No longer will we have a check on his lawlessness, accountability for his corruption and crimes, and we will see a Republican-majority Congress roll out the royal red carpet for a third Trump term,' O'Rourke said Saturday on MSNBC. 'Those are the stakes and that's why we got to fight and we got to fight to win.' On Friday, during a special session about last month's deadly Texas flooding, a Texas House panel advanced the redrawn map, which would add five new Republican districts in Texas, but O'Rourke said it's not a 'done deal' and Texas Democrats can deny their Republican counterparts the numbers to certify the maps. Trump's team requested Texas Gov. Greg Abbott to call for a special session to redraw the map and Republican lawmakers have been honest about their plans, saying they are redrawing the map for political advantage. O'Rourke said he hopes Texas Democrats will deny Republicans the votes and 'deprive' Trump of the five seats, but ultimately, he wants Democrats to inspire Americans, who have been waiting for Democrats 'to fight and to fight to win.' He continued by saying Democrats should aim to redraw districts now and gain even more seats in states that already hold a lot of Democratic seats, like California, New Jersey and Illinois. 'There are no refs in this game anymore,' O'Rourke said. 'No courts are going to ride to the rescue. This is just an all-out bareknuckle brawl and we've got to win it and be ruthlessly focused on it.' He said if Democrats do that, they have a chance of 'avoiding the worst possible outcome, which is Donald Trump stealing the 2026 election now in 2025' and Congress eventually letting Trump win a third term. On Sunday, in a last-ditch effort, Texas Democrats said they would leave the state, facing possible fines and penalties, so the legislative session to redistrict the map couldn't take place. As Texas looks to redraw the state's congressional map, O'Rourke said Texas will be every American's future. He praised and critiqued his home state, stating 'some really bad stuff' is happening in Texas, like its lax gun laws leading to a high number of mass shootings each year, its abortion ban and low minimum wage. He also mentioned that Texas led the way for Roe v. Wade in 1973 and also produced Lyndon B. Johnson, who signed the Civil Rights Act of 1964 into law. 'Some really bad stuff is happening in Texas, but some really good things have come from this state, as well,' O'Rourke said. 'That's why we need all hands on deck in this state or what you see right now will be your future no matter where you live in this country.' Related... Texas Democrats Take Extreme Measures To Block Redistricting Vote Beto O'Rourke Says Democrats Cannot 'Play Dead' When It Comes To Republican Redistricting Wisconsin Supreme Court Orders New Legislative Maps In Redistricting Case Brought By Democrats
