Many financial advisers will more argue that if you look at the last twenty years Canadian stocks have seen an average growing of 6.1% per year vs Canadian real estate values
The document summarizes statistics on Americans' financial literacy and habits from a 2017 survey. It finds that many Americans lack savings and budgets. While credit card and other debt is high, spending is decreasing. Younger adults are more likely to save than older generations. The document also provides an overview of free online personal finance courses and resources that cover topics like spending, credit, income, investing, insurance, and financial decision-making. Course materials are aligned with state and national standards. Additional supplemental resources for teaching personal finance are also referenced.
The document outlines key concepts in personal finance including career development, income, money management, spending and credit, and saving and investing. It discusses assessing skills and interests, researching careers, workplace expectations, and lifelong learning for career development. It addresses sources of income, taxes, and how career and economic factors affect income. Key money management topics covered are decision making, inflation, insurance, earning, spending, saving, investing, and using financial tools and institutions. The document also outlines evaluating spending decisions, comparing payment methods and credit sources, understanding credit reports and consumer protection laws. Finally, it discusses the relationship between saving and investing, reasons for each, comparing investment types, and agencies that regulate financial markets.
The document discusses how many young adults lack financial literacy skills and consequently struggle with debt. It notes that most parents are more concerned about other issues than teaching their kids how to manage money. While many think financial education should be mandatory in schools, few states actually require courses or testing in personal finance. As a result, many young adults face debt problems and would have benefited from more preparation for their financial futures. The solution proposed is to provide more financial literacy resources for young adults through initiatives like brass|TV.
1) The document summarizes key findings from the PISA 2012 assessment of financial literacy among 15-year-old students in 18 countries.
2) On average, students performed between levels 2 and 3 on the PISA financial literacy scale, indicating they can interpret basic financial documents but have difficulty with more complex tasks.
3) Performance varied widely between and within countries and was strongly linked to socioeconomic status. Girls, immigrant students, and those from rural areas tended to perform worse.
Brian Nelson
Business Department Chair
Arvin High School
Bakersfield, CA
Presentation will discuss teaching high school students how to manage their finances, a skill rarely taught in school yet all of us need to use in the "real world." In light of the current financial crisis, the need to teach students personal finance could not be more relevant.
This session’s focus is not to provide details about the financial aid process... instead it will provide tools and tips on HOW to help families understand and navigate the financial aid process. In this session, receive materials and advice on explaining college financing options. You will also learn tips on teaching families how an education can be affordable and through what methods (grants, scholarships, loans, etc.) families pay for college. We will present questions and guidelines for families to ask themselves so they have a financial assistance plan for themselves and what to also ask colleges and universities so they gather the necessary information from institutions.We need to educate our students and their families about financial assistance—these tools of the financial assistance trade will help you do so.
This sixth volume of PISA 2012 results examines 15-year-old students’ performance in financial literacy in the 18 countries and economies that participated in this optional assessment. It also discusses the relationship of financial literacy to students’ and their families’ background and to students’ mathematics and reading skills. The volume also explores students’ access to money and their experience with financial matters. In addition, it provides an overview of the current status of financial education in schools and highlights relevant case studies. For more information see http://www.oecd.org/pisa/keyfindings/pisa-2012-results-volume-vi.htm
This self-paced course is designed to provide you with a basic understanding of personal financial management to help you meet life's challenges and opportunities in college and in life. Major topics covered include: financial planning; budgeting; information on the various sources of financial aid; credit use; standards of progress for financial aid eligibility; affording the loan debt that you have borrowed; using your maximum credit wisely; and retirement planning. Students will be provided with information that will enhance their knowledge and skills to assist them with making more informed decisions that are related to various practices as they pursue their education at Madison College.
The document summarizes statistics on Americans' financial literacy and habits from a 2017 survey. It finds that many Americans lack savings and budgets. While credit card and other debt is high, spending is decreasing. Younger adults are more likely to save than older generations. The document also provides an overview of free online personal finance courses and resources that cover topics like spending, credit, income, investing, insurance, and financial decision-making. Course materials are aligned with state and national standards. Additional supplemental resources for teaching personal finance are also referenced.
The document outlines key concepts in personal finance including career development, income, money management, spending and credit, and saving and investing. It discusses assessing skills and interests, researching careers, workplace expectations, and lifelong learning for career development. It addresses sources of income, taxes, and how career and economic factors affect income. Key money management topics covered are decision making, inflation, insurance, earning, spending, saving, investing, and using financial tools and institutions. The document also outlines evaluating spending decisions, comparing payment methods and credit sources, understanding credit reports and consumer protection laws. Finally, it discusses the relationship between saving and investing, reasons for each, comparing investment types, and agencies that regulate financial markets.
The document discusses how many young adults lack financial literacy skills and consequently struggle with debt. It notes that most parents are more concerned about other issues than teaching their kids how to manage money. While many think financial education should be mandatory in schools, few states actually require courses or testing in personal finance. As a result, many young adults face debt problems and would have benefited from more preparation for their financial futures. The solution proposed is to provide more financial literacy resources for young adults through initiatives like brass|TV.
1) The document summarizes key findings from the PISA 2012 assessment of financial literacy among 15-year-old students in 18 countries.
2) On average, students performed between levels 2 and 3 on the PISA financial literacy scale, indicating they can interpret basic financial documents but have difficulty with more complex tasks.
3) Performance varied widely between and within countries and was strongly linked to socioeconomic status. Girls, immigrant students, and those from rural areas tended to perform worse.
Brian Nelson
Business Department Chair
Arvin High School
Bakersfield, CA
Presentation will discuss teaching high school students how to manage their finances, a skill rarely taught in school yet all of us need to use in the "real world." In light of the current financial crisis, the need to teach students personal finance could not be more relevant.
This session’s focus is not to provide details about the financial aid process... instead it will provide tools and tips on HOW to help families understand and navigate the financial aid process. In this session, receive materials and advice on explaining college financing options. You will also learn tips on teaching families how an education can be affordable and through what methods (grants, scholarships, loans, etc.) families pay for college. We will present questions and guidelines for families to ask themselves so they have a financial assistance plan for themselves and what to also ask colleges and universities so they gather the necessary information from institutions.We need to educate our students and their families about financial assistance—these tools of the financial assistance trade will help you do so.
This sixth volume of PISA 2012 results examines 15-year-old students’ performance in financial literacy in the 18 countries and economies that participated in this optional assessment. It also discusses the relationship of financial literacy to students’ and their families’ background and to students’ mathematics and reading skills. The volume also explores students’ access to money and their experience with financial matters. In addition, it provides an overview of the current status of financial education in schools and highlights relevant case studies. For more information see http://www.oecd.org/pisa/keyfindings/pisa-2012-results-volume-vi.htm
This self-paced course is designed to provide you with a basic understanding of personal financial management to help you meet life's challenges and opportunities in college and in life. Major topics covered include: financial planning; budgeting; information on the various sources of financial aid; credit use; standards of progress for financial aid eligibility; affording the loan debt that you have borrowed; using your maximum credit wisely; and retirement planning. Students will be provided with information that will enhance their knowledge and skills to assist them with making more informed decisions that are related to various practices as they pursue their education at Madison College.
Non-profits in the U.S. generate over $1 trillion in annual revenue and $2.4 trillion in total assets. As fiduciaries, boards of non-profits must effectively oversee endowment investments to support the organization's mission over the long term. Key considerations include setting an appropriate spending policy, asset allocation, and risk management to balance intergenerational equity and stability of support. Effective endowment management requires defining goals and responsibilities as well as monitoring performance, costs, and potential risks.
- NexBank Capital, Inc. is a regional bank headquartered in Dallas, Texas with $9.2 billion in assets and a charter dating back to 1922. It primarily serves institutional clients, financial institutions, large corporations, and real estate investors.
- NexBank's divisions provide commercial, mortgage, and institutional banking services throughout the US. Its mortgage banking volume reached $10.5 billion in 2019 and $17.1 billion in 2020.
- NexBank is the 4th largest bank in Dallas and 11th largest in Texas. It has received several rankings and awards for its financial performance and as one of the best performing US community banks.
2013 Callan Cost of Doing Business Survey: U.S. Funds and TrustsCallan
The survey found that on average funds spent 54 basis points of total assets to operate in 2012. External investment management fees represented 90% of total expenses, the largest portion. These fees have risen 55% since 1998. Non-investment management external advisor fees, the second largest expense, increased 115% over the same period. Overall, average total fund expenses have increased more than 50% since 1998.
7 May 2020 - This PPT presents the results of the third OECD PISA assessment of the financial literacy of 15-year-old students. Find out more at http://www.oecd.org/finance/launch-pisa-financial-literacy-results-2018.htm
The document describes a multi-state research project called NC2172 that aims to better understand consumer financial decision making across peoples' lifespans by examining the influence of behavioral economics. The research will use mixed methods to study factors like mental accounting, framing, and self-control on decisions related to retirement, home ownership, and student loan usage. The initial work has included literature reviews and focus groups on student loans to inform efforts to improve financial decision making.
Financial Literacy Today: NJBTEA and NJAFCS-10-15Barbara O'Neill
This document provides an overview of financial literacy education. It discusses the importance of financial literacy for students and outlines 12 key topics for students to learn, such as budgeting, saving, and credit. It also shares national survey results showing low levels of financial knowledge. Resources for teaching financial education are presented, including lesson plans from JumpStart Coalition and websites with tools and quizzes.
The document describes the Out Of The Box Youth Financial Literacy Program, which provides financial education to at-risk teens. The program partners with schools, non-profits, and corporations. It uses a curriculum based on 12 principles to teach teens banking, budgeting, investing, and entrepreneurship skills over multiple workshops. Students who complete the program open savings and investment accounts and participate in alumni career counseling programs. The program has expanded to several cities and seen increased financial literacy among participating students.
Lysa Ralph and Philip Goodwin: Institutional FundingBondNGO
The document provides an overview of institutional funding trends and best practices for non-governmental organizations (NGOs). It finds that government and foundation funding of NGOs has generally increased in recent years. However, there is a shift towards contracts over grants and an emphasis on demonstrating outcomes and impact. Successful NGOs decentralize decision-making, demonstrate value for money, and form partnerships. The document also outlines Tree Aid's principles for attracting institutional funding, which include building strategic relationships, understanding donor priorities, strengthening credibility through impact, and ensuring adequate resources and staff expertise.
Powerpoint with becky editsfinal10272021approvedAlexander121900
This document provides information to help families save on college costs. It discusses increasing eligibility for financial aid and obtaining suitable financial aid packages. Key points covered include understanding the financial aid process, strategies to make college more tax efficient, saving and investing for college, increasing aid eligibility, finding suitable schools, and preparing for retirement while paying for children's education. Specific tuition and cost figures are given for Utah universities to illustrate total costs of attendance. Ways to lower the expected family contribution through asset positioning are outlined. The importance of choosing colleges that meet most or all of students' financial need is also emphasized.
A presentation I did for a family foundation interested in adding impact investing to its strategies. Some content created in cooperation with the Impact Finance Center.
Global Money Week Talk on Young Adults and Money-03-15Barbara O'Neill
This document provides information about financial literacy and personal finance topics for young adults. It discusses Global Money Week, which teaches children and youth about money topics. It also discusses the importance of financial capability as a life skill and includes links to resources on essential life skills. The document then discusses various personal finance topics like compound interest, investing, credit, budgeting, and insurance. It includes quizzes, worksheets, and other resources for young adults to improve their financial literacy.
This document outlines action items schools can take to lower their cohort default rates. It recommends filing challenges and appeals, analyzing defaulter data to find patterns, reviewing enrollment reporting processes, synchronizing retention and default prevention plans, committing to financial education, creating or revising student success plans, and considering outsourcing borrower communication to USA Funds. The document provides context on why cohort default rates matter and consequences of high rates, and gives examples from Iowa community colleges of insights gained from analyzing defaulter data.
The document provides an overview of the financial aid process for high school seniors and their families. It discusses key terms like cost of attendance, expected family contribution, and financial need. It also summarizes the various types of financial aid including scholarships, grants, loans, work-study, and how to apply for federal aid through completing the Free Application for Federal Student Aid (FAFSA). Tips are provided on borrowing responsibly and meeting financial aid deadlines.
This document summarizes key factors to consider when comparing different student loan options. It discusses loan terminology like annual percentage rate and interest rates. It emphasizes utilizing federal loans first due to their lower fixed rates and flexible repayment options. It also recommends minimizing borrowing by using savings and income when possible. The document provides a comparison of MEFA and Direct PLUS Loans and encourages contacting MEFA for help assessing loan affordability and repayment plans.
The document discusses strategies for saving for college, as college costs continue to rise significantly each year. It recommends starting a college savings fund as early as possible and saving a portion of projected costs, such as 50%, to use as a down payment with the rest covered through financial aid, loans, or other sources. The document reviews several tax-advantaged college savings options including 529 plans, Coverdell ESAs, U.S. savings bonds, and UTMA/UGMA accounts. While financial aid can help cover costs, the document notes that student loans typically make up the largest percentage of aid packages, so it is important to focus on savings to minimize reliance on loans.
This document provides an overview of college financial aid basics for the 2018-2019 school year. It defines key terms like cost of attendance, expected family contribution, and dependency status. It outlines the major types of financial aid including need-based grants, loans, work study, and merit-based scholarships. The document reviews the process for applying for aid including filing the FAFSA annually and understanding student aid reports versus aid offers. Tools, tips and resources for obtaining financial aid are also provided.
Financial Markets, the US Security and Exchange Commission, and the Academy o...NAFCareerAcads
The document discusses the mission and structure of the SEC, provides key messages for students about investing, and outlines tools and resources for teaching financial literacy. The SEC's mission is to protect investors, maintain fair and orderly markets, and facilitate capital formation. It has five commissioners and five divisions. Key investing lessons for students include setting financial goals, understanding compound interest and diversification, knowing investment risks and fees, and doing thorough research. The SEC offers various programs and materials to help teach financial literacy.
Dr. Barbara O'Neill will present this 90-minute webinar on behalf of the Military Families Learning Network. 1.5 CEUs will be available to AFC-credentialed participants. Americans have always been fascinated by millionaires and their ranks have actually been increasing in recent years despite the financial crisis. The “Who Wants to Be a Millionaire?” game show and “MegaMillions” lotteries draw big crowds. Most people become wealthy the “old fashioned way,” however, through hard work and regular saving/investing. This webinar will provide a solid path to wealth accumulation by presenting 20 research-based wealth accumulation factors and online financial planning resources. Webinar participants will learn about the following topics:
Twenty research-based factors that are associated with wealth accumulation
The awesome power of compound interest over time
The impact of lifestyle choices (e.g., health habits) upon personal finances
Research-based characteristics of millionaires
Resources for educators and consumers (e.g., online financial calculators)
Non-profits in the U.S. generate over $1 trillion in annual revenue and $2.4 trillion in total assets. As fiduciaries, boards of non-profits must effectively oversee endowment investments to support the organization's mission over the long term. Key considerations include setting an appropriate spending policy, asset allocation, and risk management to balance intergenerational equity and stability of support. Effective endowment management requires defining goals and responsibilities as well as monitoring performance, costs, and potential risks.
- NexBank Capital, Inc. is a regional bank headquartered in Dallas, Texas with $9.2 billion in assets and a charter dating back to 1922. It primarily serves institutional clients, financial institutions, large corporations, and real estate investors.
- NexBank's divisions provide commercial, mortgage, and institutional banking services throughout the US. Its mortgage banking volume reached $10.5 billion in 2019 and $17.1 billion in 2020.
- NexBank is the 4th largest bank in Dallas and 11th largest in Texas. It has received several rankings and awards for its financial performance and as one of the best performing US community banks.
2013 Callan Cost of Doing Business Survey: U.S. Funds and TrustsCallan
The survey found that on average funds spent 54 basis points of total assets to operate in 2012. External investment management fees represented 90% of total expenses, the largest portion. These fees have risen 55% since 1998. Non-investment management external advisor fees, the second largest expense, increased 115% over the same period. Overall, average total fund expenses have increased more than 50% since 1998.
7 May 2020 - This PPT presents the results of the third OECD PISA assessment of the financial literacy of 15-year-old students. Find out more at http://www.oecd.org/finance/launch-pisa-financial-literacy-results-2018.htm
The document describes a multi-state research project called NC2172 that aims to better understand consumer financial decision making across peoples' lifespans by examining the influence of behavioral economics. The research will use mixed methods to study factors like mental accounting, framing, and self-control on decisions related to retirement, home ownership, and student loan usage. The initial work has included literature reviews and focus groups on student loans to inform efforts to improve financial decision making.
Financial Literacy Today: NJBTEA and NJAFCS-10-15Barbara O'Neill
This document provides an overview of financial literacy education. It discusses the importance of financial literacy for students and outlines 12 key topics for students to learn, such as budgeting, saving, and credit. It also shares national survey results showing low levels of financial knowledge. Resources for teaching financial education are presented, including lesson plans from JumpStart Coalition and websites with tools and quizzes.
The document describes the Out Of The Box Youth Financial Literacy Program, which provides financial education to at-risk teens. The program partners with schools, non-profits, and corporations. It uses a curriculum based on 12 principles to teach teens banking, budgeting, investing, and entrepreneurship skills over multiple workshops. Students who complete the program open savings and investment accounts and participate in alumni career counseling programs. The program has expanded to several cities and seen increased financial literacy among participating students.
Lysa Ralph and Philip Goodwin: Institutional FundingBondNGO
The document provides an overview of institutional funding trends and best practices for non-governmental organizations (NGOs). It finds that government and foundation funding of NGOs has generally increased in recent years. However, there is a shift towards contracts over grants and an emphasis on demonstrating outcomes and impact. Successful NGOs decentralize decision-making, demonstrate value for money, and form partnerships. The document also outlines Tree Aid's principles for attracting institutional funding, which include building strategic relationships, understanding donor priorities, strengthening credibility through impact, and ensuring adequate resources and staff expertise.
Powerpoint with becky editsfinal10272021approvedAlexander121900
This document provides information to help families save on college costs. It discusses increasing eligibility for financial aid and obtaining suitable financial aid packages. Key points covered include understanding the financial aid process, strategies to make college more tax efficient, saving and investing for college, increasing aid eligibility, finding suitable schools, and preparing for retirement while paying for children's education. Specific tuition and cost figures are given for Utah universities to illustrate total costs of attendance. Ways to lower the expected family contribution through asset positioning are outlined. The importance of choosing colleges that meet most or all of students' financial need is also emphasized.
A presentation I did for a family foundation interested in adding impact investing to its strategies. Some content created in cooperation with the Impact Finance Center.
Global Money Week Talk on Young Adults and Money-03-15Barbara O'Neill
This document provides information about financial literacy and personal finance topics for young adults. It discusses Global Money Week, which teaches children and youth about money topics. It also discusses the importance of financial capability as a life skill and includes links to resources on essential life skills. The document then discusses various personal finance topics like compound interest, investing, credit, budgeting, and insurance. It includes quizzes, worksheets, and other resources for young adults to improve their financial literacy.
This document outlines action items schools can take to lower their cohort default rates. It recommends filing challenges and appeals, analyzing defaulter data to find patterns, reviewing enrollment reporting processes, synchronizing retention and default prevention plans, committing to financial education, creating or revising student success plans, and considering outsourcing borrower communication to USA Funds. The document provides context on why cohort default rates matter and consequences of high rates, and gives examples from Iowa community colleges of insights gained from analyzing defaulter data.
The document provides an overview of the financial aid process for high school seniors and their families. It discusses key terms like cost of attendance, expected family contribution, and financial need. It also summarizes the various types of financial aid including scholarships, grants, loans, work-study, and how to apply for federal aid through completing the Free Application for Federal Student Aid (FAFSA). Tips are provided on borrowing responsibly and meeting financial aid deadlines.
This document summarizes key factors to consider when comparing different student loan options. It discusses loan terminology like annual percentage rate and interest rates. It emphasizes utilizing federal loans first due to their lower fixed rates and flexible repayment options. It also recommends minimizing borrowing by using savings and income when possible. The document provides a comparison of MEFA and Direct PLUS Loans and encourages contacting MEFA for help assessing loan affordability and repayment plans.
The document discusses strategies for saving for college, as college costs continue to rise significantly each year. It recommends starting a college savings fund as early as possible and saving a portion of projected costs, such as 50%, to use as a down payment with the rest covered through financial aid, loans, or other sources. The document reviews several tax-advantaged college savings options including 529 plans, Coverdell ESAs, U.S. savings bonds, and UTMA/UGMA accounts. While financial aid can help cover costs, the document notes that student loans typically make up the largest percentage of aid packages, so it is important to focus on savings to minimize reliance on loans.
This document provides an overview of college financial aid basics for the 2018-2019 school year. It defines key terms like cost of attendance, expected family contribution, and dependency status. It outlines the major types of financial aid including need-based grants, loans, work study, and merit-based scholarships. The document reviews the process for applying for aid including filing the FAFSA annually and understanding student aid reports versus aid offers. Tools, tips and resources for obtaining financial aid are also provided.
Financial Markets, the US Security and Exchange Commission, and the Academy o...NAFCareerAcads
The document discusses the mission and structure of the SEC, provides key messages for students about investing, and outlines tools and resources for teaching financial literacy. The SEC's mission is to protect investors, maintain fair and orderly markets, and facilitate capital formation. It has five commissioners and five divisions. Key investing lessons for students include setting financial goals, understanding compound interest and diversification, knowing investment risks and fees, and doing thorough research. The SEC offers various programs and materials to help teach financial literacy.
Dr. Barbara O'Neill will present this 90-minute webinar on behalf of the Military Families Learning Network. 1.5 CEUs will be available to AFC-credentialed participants. Americans have always been fascinated by millionaires and their ranks have actually been increasing in recent years despite the financial crisis. The “Who Wants to Be a Millionaire?” game show and “MegaMillions” lotteries draw big crowds. Most people become wealthy the “old fashioned way,” however, through hard work and regular saving/investing. This webinar will provide a solid path to wealth accumulation by presenting 20 research-based wealth accumulation factors and online financial planning resources. Webinar participants will learn about the following topics:
Twenty research-based factors that are associated with wealth accumulation
The awesome power of compound interest over time
The impact of lifestyle choices (e.g., health habits) upon personal finances
Research-based characteristics of millionaires
Resources for educators and consumers (e.g., online financial calculators)
Cliffs Notes from the Journal of Financial Planning & Counseling milfamln
This document provides an overview and summary of a webinar on summarizing research articles from the Journal of Financial Counseling and Planning (JFCP). The webinar aims to discuss key findings and implications from JFCP articles published between 2004-2013 on various personal finance topics. It outlines the objectives, benefits of producing and consuming research, and summarizes several articles on topics like money management, saving, and retirement planning in 3 sentences or less. The webinar also includes polls to engage participants and discussions on applying research findings to practice.
Impact Shares is creating an ETF platform to direct capital towards specific social issues through indexed funds. They aim to benefit non-profits, investors, and corporations by defining social objectives, measuring impact, and increasing engagement. Impact Shares sees opportunities due to growth in passive investing, values-based strategies, and an upcoming $30 trillion wealth transfer. They are seeking partnerships with leading non-profits to develop social issue indices and seed funding to launch new ETFs focused on issues like health, education, and the environment.
Princeton ethics in finance 2013 session 6 -- ethics of investingasoni98
The document summarizes information presented on ethics in financial markets. It includes:
1) A discussion of modern portfolio theory and forms of ethical investing such as socially responsible investing and impact investing.
2) Analysis of risk and return characteristics of different asset classes as well as how diversification affects portfolio risk.
3) Examination of traditional and non-traditional investment benchmarks and metrics used to evaluate the performance of investments like mutual funds, hedge funds, and impact investments relative to their benchmarks.
This document provides an overview of investment management and the asset management industry in the United States. It discusses that the largest segment is made up of registered investment companies which managed $18.2 trillion in assets at the end of 2014. It also lists the top five investment management firms by total assets under management. The rest of the document discusses various types of institutional and individual investors, the portfolio management process, investment objectives and constraints for different investor types like pension plans and endowments, and risk management practices.
Developing an Asset Allocation Strategy and the Military Familymilfamln
This webinar discusses asset allocation, diversification and strategies to implement an individualized investment plan https://learn.extension.org/events/1715
Wealth Building with Savings, Investing & Windfallsmilfamln
This document provides information about building wealth through savings, investments, and handling windfalls. It begins with defining what wealth means, then discusses strategies that wealthy people commonly use like living below their means and paying themselves first. Tips for building wealth include having clear investment objectives, diversifying investments through asset allocation, and taking advantage of tax-advantaged investment practices. Strategies for investing include dollar cost averaging, rebalancing portfolios, and investing for the long term. The document also defines what a windfall is and provides guidance on handling unexpected large sums of money.
This document discusses investment management and the asset management industry. It provides details on the top five investment management firms by assets under management. It also discusses various types of investors such as pension funds, endowments, and different types of pension plans. The document outlines the portfolio management process and discusses key concepts such as investment objectives, constraints, and risk management.
Wealth Building with Saving, Investing and Windfalls-06-16Barbara O'Neill
This document discusses strategies for building wealth through saving, investing, and handling windfalls. It defines wealth as how long someone can sustain their lifestyle without working. Common traits of wealthy people include living below their means, value of financial independence, and not subsidizing lifestyles. Successful investing principles include following a few simple rules like investing long-term and diversifying assets. Developing an asset allocation strategy that balances risk and potential returns across different asset classes like stocks and bonds is important for reducing investment risk.
Private equity overview presentation delivered to Drexel University students. Presentation highlights overall private equity market, fund structure, economics, and terms, as well as investment process.
Segmenting the Investor Community to Boost FundraisingNavatar
AM 20/20's Amanda Tepper and Brandon Gersch provide Navatar exclusive research into institutional investor wants, broken down by LP type, to help asset managers refine their fundraising and investor relations strategies.
Mr. Brian Sandahl, an analyst at Austin Ventures, spoke to the Texas Economics Association about careers in private equity investing. He provided an overview of Austin Ventures, including that it is a venture capital and growth equity firm that has been in business for over 25 years and manages $3.9 billion across 10 funds. He described the firm's investment approach of providing capital to companies at every stage from seed to growth. Sandahl also outlined the typical path to obtaining a career in private equity investing, noting the competitiveness of breaking into the field.
New Tools for Creating Positive Impact in Your Company's 401(k)Sustainable Brands
This document provides information on creating positive impact through 401(k) plans, including:
- 401(k) plans are a $3.8 trillion industry that can be used to engage employees and educate them on sustainability.
- A committee in Rhode Island is exploring strategies to maximize the benefits of 401(k) plans, such as increasing participation rates and contributions.
- Tools like impact ratings of 401(k) investment options can help employees understand how their investments affect returns, risk, and impact, and potentially increase their contributions.
This document discusses best practices for nonprofit endowment management. It recommends that organizations:
1) Determine the objectives of the endowment and set a payout policy in writing.
2) Determine an optimal asset allocation strategy based on modern portfolio theory and current economic conditions.
3) Select investment managers to implement the allocation and monitor their performance.
4) Provide oversight of the endowment through systematic review of risks, costs, and manager performance by an investment committee.
The document discusses managing university endowments, including the KU Endowment. It provides background on endowments, noting they are perpetual funds that support university operating costs and projects. It then discusses the three main methods for generating returns: security selection, market timing, and asset allocation, with asset allocation being the primary driver of returns. The document outlines KU Endowment's asset allocation and compares it to peers, and advocates for allocating to alternative assets like private equity that have potential for higher long-term returns.
Pittsburgh Nonprofit Summit - We Got Funded! What Social Innovations are Bei...GPNP
The document summarizes a presentation on social innovations being funded by the Social Innovation Fund (SIF). It discusses that SIF funding is going to a variety of intermediary organizations, not just large nonprofits, and that they are funding programs across the United States, not just large cities. It also notes that the SIF does not require randomized controlled trials as the sole form of evidence and allows for preliminary evidence to fund programs in order to build their evidence base over time. The document aims to dispel common myths about the SIF and who it funds.
In this web conference we will learn about mutual funds as a tool for long-term savings for families.
We will discuss the elements of a fund and costs associated with funds. We will discuss ways in which mutual funds fit into a military families’ financial plan. We will also learn about performance measures and important characteristics of mutual funds highlighted in the prospectus. Finally we will learn about ways in which we can make decisions using fund screeners. We will use several case studies to illustrate.
This document provides an overview and introduction to private equity. It begins with an introduction of the speaker and his background in private equity investments. It then defines private equity and discusses the two broad classes of buyouts and venture capital. Next, it provides an overview of the private equity market and landscape. It discusses fund structure and organization. Finally, it discusses various career options in private equity and provides a high-level question and answer agenda.
The document discusses factors that influence financing choices for entrepreneurial ventures. It covers:
1. Financing options depend on the venture's stage of development, financial needs, and asset base. Seed/start-up ventures rely mainly on equity from founders and debt like bootstrapping, while growth ventures can use more sources like venture capital or loans.
2. The immediacy and size of financial needs determine if equity like venture capital or debt is preferable. Immediate needs use quicker sources like friends/family. Large needs use equity like venture capital or debt.
3. Cumulative financing needs also influence choices. Options are preferred that don't limit future fundraising if needs remain high, or
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As with most popular sayings, there is some truth in the adage, “Great leaders are born, not made.” To some extent, the capacity for great leadership is innate. However, learning how to be a more effective leader is within everyone’s grasp – whether you lead multiple teams, an entire company or just one staff member
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This document discusses motivating, satisfying, and leading employees. It describes psychological contracts between employees and employers, the importance of job satisfaction and morale, and major theories of motivation including Maslow's hierarchy of needs and Herzberg's hygiene factors. The document also discusses strategies to improve motivation such as job enrichment, flexible work schedules, and performance-based rewards. Finally, it covers different leadership styles and the importance of adapting one's style to the situation.
Ravinder Tulsiani’s innate talent in enterprise development first appeared at the age of fourteen when he launched a profitable mail-order business. That extremely impressive beginning set the tone for a career filled with exceptional results across several industries.
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To implement a CRM for real estate, set clear goals, choose a CRM with key real estate features, and customize it to your needs. Migrate your data, train your team, and use automation to save time. Monitor performance, ensure data security, and use the CRM to enhance marketing. Regularly check its effectiveness to improve your business.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
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Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
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Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
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The Strategy Implementation System offers a structured approach to translating stakeholder needs into actionable strategies using high-level and low-level scorecards. It involves stakeholder analysis, strategy decomposition, adoption of strategic frameworks like Balanced Scorecard or OKR, and alignment of goals, initiatives, and KPIs.
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Have you ever dreamed of turning your innovative idea into a thriving business? Starting a company involves numerous steps and decisions, but don't worry—we're here to help. Whether you're exploring how to start a startup company or wondering how to start up a small business, this guide will walk you through the process, step by step.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
1. Investing For Your Future: A Resource
For Financial Security In Later Life
By
Ravinder Tulsiani
2. 2
Investing: A Topic of Great
Interest
Baby boomers approaching retirement
More “do it yourself” employer pensions
About $7 trillion in mutual funds
Almost half of U.S. households own
stock directly or through funds, 401(k)s
Increased media attention to investing
Empirical research: investing is a topic
of interest to learners
3. 3
History of Investing For Your
Future Project
Committee wanted national implementation
regardless of investment knowledge and comfort
level of FCS educators, subject matter
responsibilities, agent & specialist vacancies, etc.
Spring 2000- Print version of IFYF home study
course available & online course
(www.investing.rutgers.edu) introduced
Summer 2000- Monthly e-mail message
Fall 2000- IFYF curriculum available
Fall 2001- IFYF Study Guide & Web site
enhancements & research study data analysis
4. 4
IFYF Project Development
Funded by three grants from
– Rutgers Cooperative Extension
– NE Regional Center For Rural Development
– The Foundation For Financial Planning
Developed by a team from 6
universities and two government
agencies
“Deliverable” for Extension Financial
Security in Later Life initiative
Over 1,200 registered online users
5. 5
Target Audience For Program
Beginning investors
– “20 and 30-somethings”
– Older persons transitioning from savings
Investors with small dollar amounts to
invest at a time
6. 6
Home Study Course Components
11 units + glossary
Starts with “the basics”
Action Steps at the end of each units
“Ask the Experts” on online version
Optional monthly e-mail message
available to registered online users
Two evaluation forms: 2 months and 6
months
7. 7
The Second Edition of IFYF
Four additional external reviewers
Completely updated for 2001 tax law
and other changes
Professionally printed and distributed
through NRAES
Two-color print and glossy cover
Perfect bound
Very reasonable cost (much cheaper
than duplicating and binding masters)
8. 8
IFYF Study Guide
110 pages
Master copies available from Dr.
O’Neill:
– Send $5 for a print copy
– Send a zip disk to get files (no charge)
Written by Dr. Ruth Lytton, Va Tech
Components:
– Review Questions
– Applications (e.g., problems and Web sites)
9. 9
Web Site Enhancements
Ask the Experts
Calculating What You Need to Save
– Retirement
– College
– Other financial goals
Online Extension publications (links)
10. 10
Class Series Components
Printed copy of speaker’s notes
Marketing materials
Initial and follow-up evaluation forms
PowerPoint slide files on a CD-ROM
Completely updated in December 2001
Class series content is exactly the same as the home study course
11. 11
Class Session Titles
Basic Concepts and Investing Pre-requisites
Equity Investing
Fixed-Income Investing
Investing in Mutual Funds
Investing Tax-deferred and With Small Dollar
Amounts
Getting Help and Avoiding Investment Fraud
14. 14
Key Investing
Concepts
Difference between saving and
investing
Risk tolerance
Risk versus rate of return
Impact of time on money accumulation
Asset allocation
Personal factors that affect investing
decisions
15. 15
Breaking Habits = $$ to Invest
6 Easy Steps
1. Identify habit, frequency, and cost
2. Make decision to change
3. Act immediately
4. Share your plan
5. Stick with your plan to change
6. Celebrate your success
17. 17
Common Stock
Share of ownership in a company
Elect directors
Vote on other matters
Two ways to earn money
– value of stock increases
– stock pays dividends
18. 18
Real Estate Options
Home
Rental property
Crop/mineral land
Land for development
Real Estate Investment Trust (REIT)
Real estate limited partnership
19. 19
To Make Money With
Collectibles
Keep items in top condition
Focus on true value of property
Document evidence of value
Insure property
You may have to wait for right buyer
No regular income provided
21. 21
Two Types of Investments:
Ownership
– Investors own all or
part of an asset
– Examples include:
• stock
• real estate
• growth mutual funds
• collectibles
Loanership
– Investors loan
money to
companies,
government, or
financial institutions
– Examples include:
• bonds
• money market funds
• CDs
22. 22
Bond Ratings
Ratings predict ability of a bond issuer
to repay debt
Investment grade: top 4 grades
– Baa to Aaa from Moody’s
– BBB to AAA from Standard & Poor’s
Lower ratings: substandard grade
(a.k.a., “junk”, “high yield”)
23. 23
Five Tips for Fixed-Income
Investors:
1. Know the risks
2. Beware of guarantees
3. Ladder your portfolio
4. Use zero-coupon bonds to hedge
stock investments
5. Match investments with goals
25. 25
What Is Net Asset Value (NAV)?
The NAV is the price your fund pays
you per share when you sell.
Value of fund
Number of shares = NAV
Example: $52,500,000
3,500,000 = $15 per share
26. 26
Match Your Goal to the Right Fund
Categories with a growth objective
Growth
Aggressive growth
Small cap
Specialty (Sector)
International
Global
Index
27. 27
Seven Steps to Finding
the Right Fund
1) Identify type of fund that matches goal
2) Do more reading
3) Research specific funds
4) Determine selection criteria
5) Get and read the prospectus
6) Make your purchase
7) Establish a schedule to buy more
33. 33
What This Lesson Covers
Investment resources (e.g., investment
clubs, Web sites, publications)
Selecting financial professionals
Investment fraud and how to avoid it
34. 34
Questions for Financial Planners
What services do you offer?
What can I expect from you?
What will it cost and how are you paid?
Who will work with me?
May I see a sample financial plan?
Are you registered with state or federal
regulators?
35. 35
Types of Fraud:
“Pump and Dump” Scams
Promoter urges you to
“buy now or lose out”
Price rises sharply
Fraudsters sell at peak
Price drops when the
hype stops
Investors lose money
0
5
10
15
20
25
30
Day
1
Day
2
Day
3
Day
4
Day
5
Stock Price
36. 36
Why Pyramid Schemes Collapse
Levels Number of Participants
1 6
2 36
3 216
4 1,296
5 7,776
6 46,656
7 279,936
8 1,679,616
9 10,077,696
10 60,466,176
11 362,797,056 - more than U.S. Population
12 2,176,782,336
13 13,060,694,016 - more than double World Population
37. 37
IFYF Class Series Evaluation
Post-class evaluation
– Reactions to class
– Usefulness of information
– Demographic info about participants
Follow-up evaluation
– 15 specific financial behaviors- planned &
actual change as a result of IFYF
– Increased savings amount
38. 38
IFYF Class Marketing Materials
Promotional flyers
Radio script
News release
Certificate of
completion
Guidelines for using
financial
professionals as
IFYF volunteers
Speaker agreement
form
Logos
39. 39
IFYF Class Series is Meant to be
Flexible
Use individual sessions (e.g., mutual
funds) as stand-alone classes
Use parts of class sessions (e.g.,
investment fraud in Session 6) as short
presentations
Mix and match or delete slides, as
desired
40. 40
Supplemental Materials Could
Include:
Net worth worksheet
Applicable Web site information (e.g.,
article about decimalization of stock
share prices)
Applicable clipping from newspapers
(e.g., The WSJ)
41. 41
Additional Supplements
Investment books (display)
Pages from Morningstar & Value Line
Newspaper financial pages
Clippings about current investment
news (e.g., change in savings bond rates)
Guest speakers
Investment quizzes (financial firms)
Hands-on activities (e.g., reading prospectus)
42. 42
IFYF Research Results
195 respondents
– 127 online (nationwide) of 752 usable surveys sent
– 68 print version (3 states: NJ, FL, AZ)
Data collected June-July 2001
Purposes of study
– identify characteristics/behaviors of users
– feedback on course content and format
– determine knowledge gained and behavior
changed
43. 43
The Sample
Predominantly white & middle aged
– 17.7% age 35 to 44
– 29.2% age 45 to 54
– 21.3% age 55 to 64
53.7% had a college degree
69.1% were married; 31.4% with dependents
51.3% had “some” prior investing
experience; 28.3% had “a little”
44. 44
Course Ratings
45.4% “very valuable”
44.3% “valuable”
Five highest ranked units (in order)
– Unit 8 (Investing With Small Dollar Amounts)
– Unit 6 (Investing in Mutual Funds)
– Unit 2 (Investing Basics)
– Unit 4 (Equity Investing)
– Unit 5 (Fixed-Income Investing)
45. 45
Other Findings
70.2% of respondents rated course as
“basic”; 27.5% as “somewhat advanced”
128 (70%) reported investing money since
completing course
Median amount: $1,800 (mode: $1,000)
Significant variable relationships
– content level rating and course rating
– being a saver and demographic variables
– amount of savings and demographic variables
– knowledge gained and planned action
46. 46
Behavioral Changes
Questions about 15 behavioral changes
Behaviors from IFYF Action Steps
Top 3 actions taken:
– using new investor resources (63.4%)
– learning more about investment fraud (56.1%)
– investigating specific investments (48.9%)
Top 3 actions planned:
– determining amount needed to achieve goals (37.0%)
– setting specific (date/cost) financial goals (34.5%)
– increasing amount invested monthly (30.9%)
47. 47
Implications
IFYF is positively impacting participants
Diversity of audience outreach can be
improved
The level of course content is on target
Emphasizing action steps results in
action
Need to help learners with planned
behavior changes (e.g., goals)
To begin, let’s look at the basic building blocks of sound financial management…
These are items or tasks that need to be accomplished, or at least considered, BEFORE you begin an investment program. Visualize the financial management building blocks forming a pyramid.
The wealth protection blocks on the bottom of the pyramid form a strong, secure foundation and are very important in providing stability for the wealth accumulation and wealth distribution blocks on top. Each building block relies upon the strength and stability of the personal finance strategies used in the blocks below it.
Decisions made about one building block may have a definite impact on options available in adjacent blocks (e.g. an inadequate cash management plan may delay having funds available to take advantage of investment opportunities, lack of an emergency cash reserve may force use of credit to pay for unexpected expenses, overuse of credit may limit the possibility of qualifying for a mortgage to purchase a home).
As you move up the pyramid to the apex, your financial life becomes more complex. This complexity, along with changes in your life, may require that you re-evaluate and change strategies used at earlier stages.
Now that you understand the basics of financial management, it’s time to explore several basic principles of successful investing.
The difference between savings and investing. These two terms are often used interchangeably; however, they really have two very different purposes.
Personal risk tolerance. This refers to how much money you feel comfortable losing.
Risk versus rate of return. There is an indirect relationship between these two investing concepts. You’ll learn how it works.
Impact of time on money accumulation. The amount of time you have available for your money to grow before it is needed has a great influence on the amount you need to invest and appropriate investment vehicles.
Asset allocation. The ideal mix of stocks, bonds and cash in your investment portfolio usually changes at different periods in the life cycle and has a lot to do with the overall success of an investment program.
Personal factors that affect investing decisions. Your investment goals, your tolerance for risk, and your tax situation are just a few of the factors that will influence your investment decisions.
Lets take a few minutes to discuss each of these concepts in more depth.
As noted earlier, some of the items we buy are needs - items that are necessary for survival. Other purchases are wants - all the things we think we need, but could do without. Buying items to satisfy our wants can become a habit. Before we know it, we are spending lots of money on these items.
Find money to improve your financial situation by identifying some of your money habits, then break those habits or at least reduce the number of times you enjoy the habit each day, week, or month.
For example, if your family drinks iced tea instead of a 2-liter soda for the evening meal, you can probably save at least $5 (estimated difference between tea and soda) in a week or $260 ($5x52=$260) a year. By drinking tap water instead of other beverages, you can save $7 (estimated cost between water and tea/soda) a week or $364 ($7x52=$364) a year.
Let’s look at those who feed the soda machines at work. By bringing soda from home ($.30 each) instead of feeding the machine ($.75 each), a person who drinks two sodas per day could save $234 over the course of a year ($.75-$.30 = $.45x2/day = $.90x5 days/week = $4.50x52 weeks = $234).
Changing or adjusting a few habits can result in big savings for you and your family. By following six easy steps, you can gain better control of your financial resources and increase the money available for investing. Put this six-step plan to work for you and your family.
Investors buy shares of stock in a company.
Those who own stock elect directors, who hire the people who manage the company on a day to day basis (e.g., company President or CEO).
Owners may also vote on other issues that come before the directors, generally either in person at a stockholders meeting or through a proxy vote (usually done via U.S. mail and, increasingly, online).
When a stock is worth more when you sell it than when you bought it, you have a capital gain. If it is worth less, you have a capital loss.
Boards of directors may reinvest money earned in the company, hopefully increasing its value, or pay dividends to stockholders quarterly or annually.
Besides single family homes, other real estate investment options include:
* rental houses/buildings
* raw land for agricultural crops, mineral rights, future housing or commercial development
* REITs - Real estate investment trusts (pronounced: REETs)
* Real estate limited partnerships
REITs and real estate limited partnerships provide indirect (passive) ownership of real estate, as opposed to direct (active) ownership of land or property.
REITs trade like stock on major exchanges and are diversified, professionally managed portfolios of real estate investments (e.g., office buildings, shopping centers, and apartment complexes).
Real estate limited partnerships are available through brokers. A general partner oversees the partnership’s real estate assets (e.g., commercial buildings) and investors share proportionately in partnership gains or losses (to the extent of the amount of their principal investment).
Generally you cannot use or handle collectibles regularly and may need protective storage.
On-going maintenance may be necessary (e.g., antique cars)
Be sure you buy a collectible for its true value, not for the pleasure you get from an item
Keep an appraisal of the value
Purchase insurance as needed (e.g., floaters on homeowner’s insurance personal property coverage)
Storage costs, appraisal costs, and other costs reduce the gain you make
When you decide to sell, you may have to wait a while and/or pay someone else to find a buyer.
There is no regular or periodic income from collectibles. You need to sell them to realize a profit.
Ownership Assets:
Investors own all or part of an asset (e.g., real estate, collectibles, corporation)
Value of principal and investment earnings fluctuate with market conditions
Examples include:
stock
real estate (home, rental property, REITs)
growth mutual funds
commodities (e.g., pork bellies) and collectibles (e.g., fine art)
Loanership Assets:
Investors loan money to a government entity (e.g., state), corporation, or financial institution (e.g., bank , insurance company, credit union).
No equity (ownership) interest; investors simply receive interest income for specified period with no potential for growth (profit from company earnings).
Examples include:
bonds
money market mutual funds (fund containing short-term debts)
certificates of deposit (CDs)
Fixed-income investing is the topic of this class session. Class objective: To increase familiarity with characteristics of fixed-income assets.
Bond ratings tell the capacity of a bond issuer to repay its debt as perceived by an independent rating firm that studies its creditworthiness.
The two most widely-quoted bond rating firms are Moody’s and Standard & Poor’s.
“Investment Grade” bonds are considered the safest (highest quality) and consist of bonds earning the top four grades from each bond rating firm:
Baa, A, Aa, and Aaa from Moody’s (in ascending order)
BBB, A, AA, and AAA from Standard & Poor’s
Lower ratings are called “substandard grade” and indicate less financially sound bond issuers:
Ba, B, Caa, Ca, C from Moody’s (in descending order)
BB, B, CCC, CC, C, DDD, DD, and D from Standard & Poor’s
“Substandard Grade” bonds or bond funds can often be recognized by the words “junk” or “high yield” in their title.
Five Tips For Fixed-Income Investors
Know the Risks: All investments- even fixed-income securities- have risks. Example: junk bonds- to earn a high return, an investor generally needs to consider bonds from a less creditworthy issuer (less than BBB grade).
Beware of Guarantees: Don’t believe promises that you “can never lose principal.” Even with a portfolio of ultra-safe Treasury securities, an investor could lose principal prior to maturity via interest rate risk.
Ladder Your Portfolio: Stagger the purchase of bonds, Treasury securities, and CDs. This spreads out the tax owed on investment earnings and exposes only a portion of your portfolio to interest rate changes at any one time.
Use Zero-Coupon Bonds to Hedge Stock Investments: Buy a zero-coupon bond to guarantee the return of principal (i.e., a bond that will grow to the amount of your original investment) and use the balance of principal to invest in ownership assets (e.g., stock). Even if you lose your entire stock investment, you’ll get your principal back (less the effects of inflation).
Match Investments With Goals: Always invest with a goal in mind. Example: a 2-year Treasury note for an upcoming car purchase or an 8-year zero-coupon bond for a child’s college education.
Net Asset Value Defined:
The net asset value or NAV of a mutual fund is the price your fund pays you per share when you sell shares.
When investors purchase a mutual fund, they own a piece of an investment portfolio. They share in the gains, losses, and expenses in proportion to the amount they have invested in the fund.
Calculating NAV: At the close of every trading day, a mutual fund company adds up the value of all the securities in its portfolio and subtracts its expenses (e.g., management fees, administrative expenses, advertising costs). The balance is divided by the number of shares owned by shareholders to arrive at the dollar value of one share of the mutual fund.
For example, a fund is valued at $52,500,000 (total assets minus expenses). There are 3,500,000 outstanding shares owned by investors. $52,500,000 divided by 3,500,000 shares equals an NAV of $15 per share.
A fund’s objective should match an investor’s objective. Funds with a growth objective are appropriate for long-term goals. Suppose your goal is retirement in 25 years. There are several types of growth funds to choose from:
Growth funds invest for the long term. Share prices can fluctuate considerably. They buy stocks of profitable, well-established companies that expect above-average earnings growth.
Aggressive growth funds use riskier investment techniques (e.g., options, short selling) and/or invest in stocks of smaller, less-proven companies. They can be very volatile, but the tradeoff is a high potential for capital appreciation.
Small capitalization funds invest in stocks of small companies with assets under $1 billion and are riskier than larger capitalization stock funds (over $5 billion in assets). (Capitalization means number of shares outstanding multiplied by the price per share.)
Specialty or Sector funds limit investments to a specific industry (e.g., health care, biotechnology, financial services).
International funds invest in stocks of countries outside the United States.
Global funds invest in securities worldwide including the U.S.
Index funds invest in stocks of one of the major broadly based market indexes such as the S&P 500 (large companies), Russell 2000 (small companies) or Europe, Australia, Far East (EAFE) (international).
Refer to chart in home study course (page 6-6) and personalize with class members’ goals. (Discussion)
Now that you are familiar with the various types of mutual funds, here are some specific guidelines for picking them.
1) Identify type of fund that matches goal. What are you trying to accomplish? What type of fund will get you there?
2) Do more reading. Become more informed about mutual funds. Reading reinforces knowledge.
3) Research specific funds. Learn how to analyze funds and compare to others.
4) Determine selection criteria. You’ll be able to narrow down the mutual fund field to a manageable number.
5) Get and read the prospectus. The legal selling document spells out a fund’s particulars.
6) Make your purchase. After doing your homework, it’s time to take the plunge.
7) Establish a schedule to buy more. Determine that you’ll begin a regular investing program.
Having clear objectives simplifies the process. You’ll find a lot of funds can be eliminated immediately.
Now, let’s go over each step in more detail.
There are two topics that will be discussed in this session:
Tax-Deferred Investing
The difference between tax-free (e.g., municipal bonds) and tax-deferred (e.g., 401(k)s and IRAs) investments
Types and characteristics of employer retirement plans
Individual retirement accounts (IRAs)
Plans for the self-employed (e.g., SEPs and Keoghs)
Investing With Small Dollar Amounts
Contrary to popular belief, it is possible to invest “on a shoestring” with amounts of $1,000 or less. Some investments can be purchased for as little as $25 or $50. This portion of the class will discuss specific investment products for the small investor:
employer plans
IRAs
fixed-income assets
equity assets
mutual funds
other investments
Comparison of a Tax-Deferred Retirement Investment with a Nontax-Deferred Investment
Graph compares investment of $2,000 per year of after- tax income invested at 8 % to an investment where taxes are paid on earnings.
The assumed tax rate is 28%.
An advantage of tax-deferred earnings is that they grow faster - instead of paying tax on the interest earned, it is deferred and continues to compound until an investment is sold. Taxes are paid at the time of the sale.
Over time, the gap between the value of a taxable account and a tax-deferred account, earning the same rate of interest, increases sharply.
Here’s What $20 a week Adds Up To:
These figures on the slide are provided in the 1998 Retirement Confidence Survey report prepared by the Employee Benefit Research Institute (EBRI).
At a 5% rate of return, an investor would have $36,100 more than they would otherwise have in 20 years, $72,600 more in 30 years, and $131,900 in 40 years.
At a 10% rate of return, the accumulations are even more dramatic: $65,500 in 20 years, $188,200 in 30 years, and over a half million dollars ($506,300) in 40 years.
The longer that money is invested, and the higher its rate of return, the more that an investor will accumulate.
The following quote from the EBRI report says it all:
“The message is clear that seemingly small amounts of money saved on a regular basis over long periods of time can accumulate into a nest egg that would make a difference at retirement.”
Objective of this lesson:
To highlight three ways individual investors can learn more about investing:
1. Investment clubs
2. Using the computer to go online and get information about investing from the Internet
3. General reading material as well as Internet sites
What services do you offer? For example, will the planner make recommendations and let you fill out the paperwork and make the purchases? Or does the planner complete the entire transaction and only ask for your signature?
What can I expect from you? This is related to the question about how you will work together. You can get a good sense of this by talking to references.
What will it cost and how are you paid? As discussed previously, the options are salary, fees, commission, or a fee/commission combination.
Who will work with me? Are there assistants in the office that will be working on your account in additional to the planner?
May I see a sample financial plan? Beware of cookie-cutter, computer-generated plans that are not adapted to your particular goals and situation.
Are you registered with state and federal regulators? Depending on the amount of assets under management, financial planners will be registered with either the U.S. Securities & Exchange Commission or a state securities regulatory agency.
It’s common to see messages posted on the Internet that urge readers to buy a stock quickly or to sell before the price goes down. Cold callers often call using the same sort of pitch.
Often the promoters will claim to have “inside” information about an impending development or an “infallible” combination of economic and stock market data to pick stocks.
In reality, they may be insiders or paid promoters who stand to gain by selling their shares after the stock price is pumped up by gullible investors. Once these fraudsters sell their shares and stop hyping the stock, the price typically falls and investors lose their money.
Fraudsters frequently use this ploy with small, thinly-traded companies because it’s easier to manipulate a stock when there’s little or no information available about the company.
This chart shows how pyramid schemes can become impossible to sustain.
For example, let’s say a promoter tells you that “all” you need to do to win big is recruit 6 friends or family members to participate in the program.
They, in turn, must also find 6 new “investors.” In short order, you’d need billions and billions of people to keep the scheme alive.
Suggested Learning Activity: In a group of 50 or more:
Ask 6 volunteers from the group to stand.
Ask each of them to find 6 people to participate and stand next to them.
Ask all 42 people standing to find 6 more people each. You’d need 252 people, but you only have 8 left!
For smaller groups, use a smaller number – perhaps 3 volunteers, who must each recruit 3 new participants, and so on.