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Newsletter 5/31/24: Growing to $15 Billion in AUM, tree-mimicking tech to produce clean hydrogen and more

CARBON FOOTPRINT • RIA • CLEAN ENERGY

In this week’s newsletter check out an interesting graphic visualizing the carbon footprint of major travel methods. In our news section check out a discussion on the pros and cons of deferred sales trusts, a new tree-mimicking technology to produce clean hydrogen, growing to $15 Billion in AUM over a 30-year career and more.

Let’s jump into it.

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The Carbon Footprint of Major Travel Methods

“Did you know that transport accounts for nearly one-quarter of global energy-related carbon dioxide (CO₂) emissions?

 
This graphic illustrates the carbon footprints of major travel methods measured in grams of carbon dioxide equivalent (CO₂e) emitted per person to travel one kilometer. This includes both CO₂ and other greenhouse gases.
 
Data is sourced from Our World in Data, the UK Government’s Department for Energy Security and Net Zero, and The International Council on Clean Transportation, as of December 2022.”

source visualcapitalist.com

The News Wrap-up

Why deferred sales trusts can be a risky way to defer taxes on a business sale

“The characteristic that is needed to make DSTs work from a tax perspective – the ceding of all control over the sales proceeds to a third-party trustee – can make them even more risky than a traditional 2-party installment sale. Which is why instead, sellers of small businesses may want to consider other strategies such as structured installment sales (in which the installment note is funded by a large insurance company that has significantly more assets with which to pay off the loan), entering into the installment agreement directly with the buyer, or even simply selling as a lump-sum and taking the entire tax hit in 1 year – which, while being possibly less favorable from a tax perspective, at least ensures that the seller receives all of the sales proceeds to begin with!”

Company develops tree-mimicking tech to produce clean-burning hydrogen fuel

“An Australian startup has developed a way to create hydrogen fuel cheaply and without emitting massive amounts of planet-overheating air pollution in the process. The new technology could be a huge deal for clean energy adoption. While hydrogen fuel has been hailed by some as the future of clean energy, as it produces zero planet-overheating pollution when burned, it also has some severe limitations. The processes used to create the fuel are typically highly polluting, per Earthjustice, defeating the purpose. Alternative processes developed to create hydrogen fuel cleanly have, so far, been prohibitively expensive. The new technology from startup Hysata aims to solve both of those problems at once. The company’s method relies on a process called “capillary action,” one of the forces that trees use to draw water from the ground. By essentially mimicking the way that trees work, Hysata was able to create a cell that splits water into hydrogen and oxygen with an efficiency of 95%. That number astounded even the company’s founders.”

Which 10 countries generated the most solar power in 2023?

“Solar energy continued to surge and break records across the globe in 2023, generating an estimated 5.5% of global electricity, a total of 1,631 terawatt-hours. According to the latest ​“Global Electricity Review” from energy research firm Ember, solar has been the fastest-growing source of electricity for 19 consecutive years. In 2023, solar added more than twice as much electricity as coal did worldwide. China continues to dominate the solar race, single-handedly producing more than 580 TWh of solar electricity in 2023 — more than the next five countries combined. The United States held onto second place with 238 TWh, while India overtook Japan to claim the third spot, generating 113 TWh from the sun last year.”

Growing to $15 Billion in AUM over a 30-year career

“New CEOs, like my previous guest, Mary Beth Storjohann of Abacus Wealth Partners, have to decide what kind of impact they want to make in the near term so that they can take real ownership of the CEO role. Achieving longevity challenges the CEO to adapt that vision and develop new skillsets that will scale up along with the company. Scott Hanson Co-Founder and Senior Partner, CFP® of Allworth Financial. Since 1993, Scott and his partner, Pat McClain, have grown the company from $10 million in AUM to $15 billion in AUM, serving 15,000 families.”

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