Things That Matter

A Legal Marijuana Industry Might Be What Puerto Rico Needs To Recover Financially

Back in 2015, a year before leaving office, then-Puerto Rican Gov. Alejandro Padilla signed an executive order legalizing medical marijuana. Two years later, Gov. Ricardo Rossello signed the legal framework to make Puerto Rico the only Caribbean island to legalize recreational marijuana. Now, there are around 72,000 patients that have signed up for the program run by the Department of Health. Despite many legal challenges, Puerto Rico is seeing a financial boom when it comes marijuana and the cultivation of the product.

So far, $11.5 million has been added to Puerto Rico’s economy due to recreational marijuana.

Puerto Rico, which is still recovering from Hurricanes Irma and Maria in 2017, is seeing some recovery from the legalization of pot. Puerto Rico is also under extreme pressure from its $72 billion in public debt that has caused myriad problems for island residents. However, it seems that recreational marijuana might be the ticket to Puerto Rico financial recovery.

According to NBC News, Puerto Rico has issued 77 dispensary licenses and 40 shops have opened on the island. The government projections also show that cannabis legalization could generate $100 million in new tax revenue by 2020 and create more than 20,000 jobs.

In order for Puerto Rico to reach those figures, it will depend on the number of new patients. With continued customers and a growing consumer base, the projected revenue numbers are a true possibility.

“It’s a new industry with a lot of exciting opportunities,” said Puerto Rico’s pot commissioner, Antonio Quilichini, executive director of the Puerto Rico Cannabis Program and Regulation Board, told NBC News. “We are seeing more and more patients register; we went from 20 patients a week to 1,500. Patients are excited and are welcoming alternative ways of healing.”

Despite growth, there are still challenges that come with dealing with the marijuana industry that includes financial institutions.

While there is a lot of money to be made through medical marijuana, the plant is still labeled as an illegal substance. That means many financial institutions aren’t lining up to offer services just yet.

Banking seems to be the biggest challenge in Puerto Rico. Tu Coop, the only local credit union providing services to the medical marijuana industry, had to cancel credit accounts earlier this year. Banco Cooperativo, a larger bank overseeing the credit union’s transactions, stopped accepting their checks.

International policies, like the UN’s Single Convention on Narcotic Drugs, hinder banking institutions from accepting money from a business selling marijuana. This is one obstacle that has slowed the growth of the marijuana industry in several countries, including Uruguay. The bank institute block can only change if marijuana is declassified as a narcotic drug on federal and international levels.

Despite the issue being solved after a judge ordered the larger bank to reinstate Tu Coop’s accounts, there are still many hurdles to overcomes. If a few financial institutions will work with the marijuana industry then a cash business will be the only alternative. This only serves to make it harder to track numbers and can be labor intensive.

This is why lawmakers in the House are expected to vote on the SAFE Banking Act, which would let legal cannabis businesses to use federal banking institutions. It would also help relieve the tensions between federal and local governments trying to oversee legal marijuana.

What’s the future for marijuana in Puerto Rico? The sky is the limit.

Despite various challenges in Puerto Rico, the growing marijuana industry is bringing optimism. With a growing number of patients, more growers and more regulations to help ease financial concerns, the possibilities are endless on the island.

While there might be certain stigmas that follow the industry and the plant itself, the move to make recreational marijuana legal has eased some of those misconceptions. Only time will tell where the industry goes and how much of a financial effect it will have on Puerto Rico.

READ: Federal Judge Rules That Trump Administration Cannot Send Asylum Seekers To Mexico

Hacker Attempts To Steal $4 Million From Puerto Rican Government In Phishing Scam

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Hacker Attempts To Steal $4 Million From Puerto Rican Government In Phishing Scam

John Piekos / Flickr

Hackers attempted to steal $4 million from the Puerto Rican government using a common phishing scam. The scams referred to as business email compromises, target public and private entities every year on the U.S. mainland. Here’s what we know so far.

A hacker attempted to steal millions of dollars from the Puerto Rican government.

Credit: @DavidBegnaud / Twitter

According to reports, hackers were able to infiltrate various agencies in the Puerto Rican government through phishing emails. The hackers attempted to access $4 million dollars by targeting Puerto Rico’s Industrial Development Company and the Tourism Company.

The Industrial Development Company sent around $2.6 million while the Tourism Company wired over $1.5 million. According to the AP, the agencies received emails from a fraudulent employee claiming there was a change of bank accounts.

Federal officials say they were about to freeze the money to prevent loss to Puerto Rico.

David Begnaud of CBS News took to Twitter to update people on the latest developments. According to Begnaud’s conversation with federal authorities, the hackers had not received the money from Puerto Rico and they were able to freeze it. They are working to send the money back to Puerto Rico.

Puerto Rico is not the only victim in a phishing crime. During the same time as the hacking of Puerto Rico, a school district in Manor, Texas lost $2.3 million and another $800,000 were stolen from officials in Griffin, Georgia. More than 23,000 of these scams stole $1.7 billion from businesses and agencies in the U.S. mainland last year. The FBI was able to recover around $300 million.

The news is surprising people on social media.

Credit: @MilagsCon / Twitter

Corruption in Puerto Rico’s government has been a topic of discussion since Hurricane Maria devastated the island. Puerto Rico was recently devastated by a series of earthquakes while still recovering from the 2017 hurricane that devastated the island. Missing relief funds and misplaced supplies have angered Puerto Ricans in recent months as it comes to light.

This latest financial and security shortcoming of Puerto Rico’s government is not helping its reputation.

Credit: @J_Fort47 / Twitter

Puerto Ricans have been showing their displeasure with the elected officials on the island for years. Recently, Puerto Ricans protested and marched until Ricardo Rosselló resigned from his office. The former governor was caught in a group chat scandal in which he made derogatory comments about the LGBTQ+ community and women. There were also allegations of corruption and misuse of funds within his admi9nistration that led to a series of investigations.

READ: The Puerto Rico Department of Justice Is Seeking An Independent Investigation Into Ricardo Rosselló

I Have $150k in Debt — Here’s What Financial Experts Told Me To Do

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I Have $150k in Debt — Here’s What Financial Experts Told Me To Do

Suriyo Hmun Kaew / EyeEm / Getty Images

Money is a topic that is difficult to talk about. Traditionally, society has told us that there are three things that we should not talk about in polite company: religion, politics, and money. Well, politics seems to be the only thing anyone talks about these days. As for religion, well, I’m of the “to each their own” policy. But money is something that we often still ignore — especially when it comes to frank discussions about debt.

Nobody likes to admit that they have debt. Whether it’s credit card debt, student loans, or paying off cars, most of us have something that we’re keeping quiet about. According to CNBC, 70 percent of college students are graduating with a “significant amount of loans” which total $1.5 trillion in debt for the over 44 million Americans who have student loan debt. In fact, a recent survey revealed that two-thirds of millennials have at least $10,000 in student debt and more than a third admitted to over $30,000 in debt, according to Inc.

Even worse, 42 percent of those that had more than $30,000 in debt were women and 11 percent of millennials have over $100,000 in student loan debt. Unsurprisingly, credit card debt is actually even higher for millennials (at 46 percent) and car loans come in just behind student loans (at 34 percent). Then there’s also medical debt to think about, as well as the 20 percent of millennials who actually have a mortgage.

Some of us, like me, have debt in all of the categories.

When my husband and I met and moved in together just six weeks into our relationship, we did it because we were in love and knew we wanted to be together for the long haul.

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However, what we didn’t know at the time (and came to learn very quickly) is that we both came with a heaping amount of debt. Now, two and a half years into our relationship and nine months into our marriage, I can tell you that our debt has only increased: Collectively, we have around $150,000 in debt — about $100k of that in student loans, $40k in car loans, and another $10k in credit cards and medical bills. Add to that the fact that we just bought our first house and, well, our financial situation has gotten a bit more complicated.

It’s not easy to talk about finances, and it’s especially not an easy thing to do with someone you love. Sadly, money is often cited as a common cause of marriages falling apart — which is precisely why my husband and I are trying to tackle these issues sooner than later. I know that we won’t get out of debt any time soon, but having a secure financial plan is a good way to step into our future, together. So, shortly, after getting married, we decided to speak with some financial experts about how exactly to tackle our $150k in debt… WITHOUT driving each other crazy or stopping some of our other personal goals (like traveling together or having kids in the next couple of years).

Nora Dunn, a former Certified Financial Planner and blogger behind the financially savvy travel site, The Professional Hobo, told us that a lot of it depends on what we as a couple are earning and what our goals are. Dunn advised that my husband and I evaluate the importance of each of our goals. Was buying a house more important than taking vacation? How much did we expect to spend on a house based on the market in our area? According to her, it was all about taking an ‘everything in moderation’ plan, where we would examine our take-home income and expenses, and then divide our disposable income between different goals, depending on how our goals are prioritized.

After some discussion, we decided that prioritizing goals, and dividing our income accordingly, definitely seemed like a good place to start. In fact, Shana Bickel, CPA and Financial Coach, mirrored that advice when she told me that “it is not for me to tell the couple how to prioritize their financial goals.” The important thing, she says, is “to identify and get very clear about those goals and then develop a plan to pay off debt while saving for a home and allowing travel that makes sense for their financial health and well being.”

Another financial expert took a more straightforward approach.

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“Sell those cars!” said Lynne Somerman and The Wiser Miser. “If you’ve got big financial goals like this, there’s no situation where I can recommend $40K in car loans when you can buy a reliable used vehicle for $10K. Even assuming you still need two cars, that’s $30K that you’ve now got towards a down payment. After that, it would depend on the type and interest rates on the student loans. If they’re private loans, go aggressively after them. If the interest is higher than about 4-5% on the student loans, they’d be my next priority. If their income is high enough, you could do both here.”

However, David Rae, a Certified Financial Planner based in Los Angeles, has a more realistic approach.

“Get those cars paid off and drive them forever!” he advised. “You don’t need a new car every two or three years. My car is paid off, and I plan to drive it forever. Each of those car payments is like a trip to Europe each year. Would you rather have a brand new car or a trip to Europe?”

He’s definitely right about that, which is why we have made paying off our cars our #2 priority (after paying off our credit cards), since we’d also like to save for an international trip in the near future. Rae also reminds me that, although student loans are important, so is saving for retirement.

“The student loans are going to take a long time to pay off. Get serious about them, but make sure to contribute to your retirement at least enough to get a company match,” he said. “This will be like free money from your boss, and the government will give you break on your taxes.”

Meanwhile, Ashley Feinstein Gerstley, a money coach who runs The Fiscal Femme, said that it is all about opportunity cost.

“We can only use or spend each dollar we have once, no matter how much or little money we have,” she reminds me. “How can we use it in a way that will maximize our joy per dollar in the shorter and long-term? It’s about looking at each option and choosing consciously. If a couple is paying down their debt and that’s really important to them but they also want to travel, they might decide to let go of expenses in other areas to make that work. What expenses aren’t bringing them much joy? Would they rather live in a less expensive apartment for the time being so that they have more money to travel? When we take a look at each expense annually (including our bills) it’s much easier to see where our money is going and decide if we want to allocate it any differently.”

Taking a look at our overall finances, my husband and I were able to use this advice to devise some financial goals, set some priorities, create a payment plan, and figure out what we want to save for.

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It took some serious negotiating but we came away with a clearer picture of our finances. It’s not going to be easy, mind you. Having debt as a couple is difficult, but unfortunately, something that almost all of us face these days. If you don’t have student loans, then you might have a car payment or credit card debt or medical bills from that time before ACA when you didn’t have health insurance and ended up in the hospital (guilty!). But ultimately, the best thing you can do for yourself when it comes to your finances, whether you are coupled up or not, is to do the work to figure it out.

As Rae put it, “Get serious about your finances now — it won’t get easier when you have kids. You may make more money but you will be busier and tired. Parenting is hard. Just saying.”