Small business owners facing economic difficulties may consider laying off employees as a way to cut payroll expenses. However, layoffs are difficult for both workers and owners. Owners should first determine if layoffs are truly necessary by exploring other cost-cutting options or obtaining new financing. If layoffs are unavoidable, owners should consider their business needs carefully, comply with all labor laws, and seek legal advice before terminating any employees.
Uncovering Fraud Dilemmas - cVidya in London May 2012cVidya Networks
Presentation on uncovering the recent dilemma that fraud departments face – today and tomorrow given by Jason Lane-Sellers, cVidya's Fraud Expert, at Arena International's Revenue Assurance, Fraud Reduction and Cost Management in Telecoms 2012 conference in London.
This document provides information about an upcoming two-day workshop on loan and mortgage fraud to be held in Kuala Lumpur, Malaysia on February 24-25, 2009. The workshop will be led by Tommy Seah and will cover topics such as defining mortgage fraud, common schemes, detecting fraud, investigating suspected wrongdoing, and preventing fraud. It provides an agenda with sessions on understanding the environment, conducting interviews and investigations, ethics, and case studies. Details on registering and payment are also included.
This document discusses how the global financial crisis has created new challenges for financial institutions and I.T. departments. It notes that the "new hard times" are characterized by tighter credit, declining property prices, and increased regulation. This has put pressure on financial institutions to focus on survival through compliance and risk management, but they still need to enable growth. The document argues that traditional I.T. systems are a barrier to addressing both survival and growth needs, as they are inflexible, create information silos, and slow product development.
1) The document discusses various topics related to the financial sector including a Minsky moment, suspension of trading on stock exchanges, granting bank licenses to corporates, financial stability concerns raised by IMF, and risks of sector-specific investing.
2) It explains a Minsky moment as a tipping point when increased risk-taking by lenders meets a price slump, destroying asset values.
3) Suspension of trading is used as an enforcement action by stock exchanges against non-compliant listed companies to prevent further harm to minority shareholders.
4) IMF has warned against granting bank licenses to industrial houses, citing risks to financial stability, and suggested allowing greater private capital and competition in underserved
This document discusses business strategies for technology commercialization. It provides advice on identifying attractive market opportunities and customer segments, developing a compelling value proposition, negotiating deals, and assessing the value and competitive positioning of technologies. Key recommendations include targeting a market with potential for significant revenue and market share, crafting a value proposition focused on performance, ease-of-use, price and other factors, and structuring agreements so that all parties' risks and potential rewards are fairly allocated.
Model Term Sheet For Alliance Of Angels Finaltepatton
From veteran Dan Rosen. This is a very useful guide on a term sheet that is relatively common in angel investing. Good general guide although terms vary by region and angel group.
This document summarizes an investment by Mark C. Hutchinson, CFA, director of Private Banking at Credit Suisse Securities. Hutchinson began his career nearly 25 years ago and manages over $1.5 billion in assets for high net worth clients. The document provides biographical details on Hutchinson and describes his approach to helping clients navigate the markets by following principles like intense client knowledge, thorough diversification, and avoiding leverage. It also includes Hutchinson's responses to common questions, providing advice on topics like reviewing beneficiary paperwork, asking the right questions about investment ideas from friends, and slowly investing a large one-time sum of money over multiple years.
Jeff Koszut has worked as a newspaper copy editor and page designer since 2009. His portfolio lists the front pages and sections he designed for various newspapers from 2005 to 2008. It also lists the awards he has won for design excellence, including several first place wins from the HSPA Awards in the categories of general excellence, news design, sports design, and business section design from 2004 to 2008.
Uncovering Fraud Dilemmas - cVidya in London May 2012cVidya Networks
Presentation on uncovering the recent dilemma that fraud departments face – today and tomorrow given by Jason Lane-Sellers, cVidya's Fraud Expert, at Arena International's Revenue Assurance, Fraud Reduction and Cost Management in Telecoms 2012 conference in London.
This document provides information about an upcoming two-day workshop on loan and mortgage fraud to be held in Kuala Lumpur, Malaysia on February 24-25, 2009. The workshop will be led by Tommy Seah and will cover topics such as defining mortgage fraud, common schemes, detecting fraud, investigating suspected wrongdoing, and preventing fraud. It provides an agenda with sessions on understanding the environment, conducting interviews and investigations, ethics, and case studies. Details on registering and payment are also included.
This document discusses how the global financial crisis has created new challenges for financial institutions and I.T. departments. It notes that the "new hard times" are characterized by tighter credit, declining property prices, and increased regulation. This has put pressure on financial institutions to focus on survival through compliance and risk management, but they still need to enable growth. The document argues that traditional I.T. systems are a barrier to addressing both survival and growth needs, as they are inflexible, create information silos, and slow product development.
1) The document discusses various topics related to the financial sector including a Minsky moment, suspension of trading on stock exchanges, granting bank licenses to corporates, financial stability concerns raised by IMF, and risks of sector-specific investing.
2) It explains a Minsky moment as a tipping point when increased risk-taking by lenders meets a price slump, destroying asset values.
3) Suspension of trading is used as an enforcement action by stock exchanges against non-compliant listed companies to prevent further harm to minority shareholders.
4) IMF has warned against granting bank licenses to industrial houses, citing risks to financial stability, and suggested allowing greater private capital and competition in underserved
This document discusses business strategies for technology commercialization. It provides advice on identifying attractive market opportunities and customer segments, developing a compelling value proposition, negotiating deals, and assessing the value and competitive positioning of technologies. Key recommendations include targeting a market with potential for significant revenue and market share, crafting a value proposition focused on performance, ease-of-use, price and other factors, and structuring agreements so that all parties' risks and potential rewards are fairly allocated.
Model Term Sheet For Alliance Of Angels Finaltepatton
From veteran Dan Rosen. This is a very useful guide on a term sheet that is relatively common in angel investing. Good general guide although terms vary by region and angel group.
This document summarizes an investment by Mark C. Hutchinson, CFA, director of Private Banking at Credit Suisse Securities. Hutchinson began his career nearly 25 years ago and manages over $1.5 billion in assets for high net worth clients. The document provides biographical details on Hutchinson and describes his approach to helping clients navigate the markets by following principles like intense client knowledge, thorough diversification, and avoiding leverage. It also includes Hutchinson's responses to common questions, providing advice on topics like reviewing beneficiary paperwork, asking the right questions about investment ideas from friends, and slowly investing a large one-time sum of money over multiple years.
Jeff Koszut has worked as a newspaper copy editor and page designer since 2009. His portfolio lists the front pages and sections he designed for various newspapers from 2005 to 2008. It also lists the awards he has won for design excellence, including several first place wins from the HSPA Awards in the categories of general excellence, news design, sports design, and business section design from 2004 to 2008.
This document provides 10 questions for lenders to consider when evaluating a title company partner. The questions address key areas like communication, technology use, experience, insurance coverage, and reputation. Using a title company that can effectively communicate and integrate technology will help support the lender's pipeline and improve turn times. It is important for the title company to have the proper insurance coverage, experience operating nationally, and positive references. Addressing these 10 questions can help lenders choose a title company that is an effective partner and extension of their business.
1. The passage discusses how the financial services industry has evolved since the 1970s with the proliferation of investment consultants, registered investment advisors (RIAs), and various performance screening tools. However, past performance is still not the primary criteria used to evaluate managers.
2. Investment consultants grew in popularity as plan sponsors sought to shift liability for investment decisions to outside entities. This led to huge profits for large consulting firms but their influence is waning with some large endowments.
3. The passage provides background on how the modern investment industry developed with the goal of helping readers make more informed financial decisions.
1. The document discusses how groupthink among investors and consultants has led to mediocre returns. Consultants prefer large, well-known managers due to career risk, even though studies show emerging managers often outperform on a risk-adjusted basis.
2. Emerging managers tend to perform better because they have more flexibility with smaller assets under management. Their strategies are less diluted and they can act more nimbly. However, consultants are reluctant to invest with them due to concerns about infrastructure and track record length.
3. Studies show the smallest hedge funds, making up just 1% of assets, outperformed larger funds by 6.7% annually over 5 years ending in 2010. Emerging funds were also less
Due Diligence for Crowdfunding: How Do You Vet a Crowdfunding Portal?Rachel Speal
How does due diligence work with crowdfunding? How do you determine whether or not the portal is really a Ponzi scheme, willing to take your money and run?
And how do you check out the investments themselves, without using up all the profit on expensive appraisals?
Learn how to vet crowdfunding portals and the investments they list with this informative yet brief presentation.
What Not to Do In Equity: The Hexagon of Equity PitfallsPabloVerra
If you are an impact investor, you should beware of the infamous hexagon of equity pitfalls. Clearly, avoiding these 6 rather common traps will not guarantee you record-breaking IRRs but, at least, you would not be making what I consider, in my humble opinion, 6 avoidable mistakes in equity investing.
The document is a newsletter from the Mid-America Association of Real Estate Investors (MAREI). It includes information about the monthly meeting such as a "Haves and Wants" session for members, a market update, and a profile of member attorney David Nachman. It also advertises various real estate services provided by MAREI members and lists the contents of the newsletter.
The document discusses the JOBS Act and its provisions for crowdfunding and raising capital. It allows small businesses and startups to raise up to $1 million from online investments. Medium and larger firms can raise up to $50 million annually. The SEC must also reach out to women and minority-owned firms. Crowdfunding will have a disruptive impact by providing financing options for difficult to finance small businesses. However, many requirements and details still need to be addressed, such as standards for financial disclosures and investor education. Platforms will also need to register and help manage the crowdfunding process to facilitate these small business investments.
This newsletter summarizes key topics for small businesses including accessing finance, negotiating financing terms, preparing accurate business plans, and presenting proposals to the appropriate decision makers. It also briefly outlines recent tax law changes and incentives regarding employer PRSI contributions and a new double taxation agreement between Ireland and Hong Kong.
Richard D'Ambola • Questar Capital Corporation (QCC)
- When history rhymes: Identifying realistic estimates of future investment strategy performance by Dave Walton
- Buybacks slowing while CEO confidence remains high
- Outsourcing to increase productivity (Steve Miller, Transamerica Financial Advisors)
Thought of the Week - Concentrated Holdings have no place in a Portfoliotheretirementengineer
Global Financial Private Capital is an investment advisory firm located in Sarasota, Florida that is registered with the SEC. It provides investment advisory services through affiliated companies and urges clients to avoid concentrated holdings of a single stock due to the high risks they pose. The document discusses the example of Enron, where both employees and investors suffered major losses when the stock price collapsed after fraud was uncovered, since they had over-allocated to the company's stock. It argues that diversification across different asset classes, geographies, sectors and styles is important to manage risk.
The document discusses handling sudden wealth and staying invested during market declines. It summarizes that during recessions stocks perform the worst while bonds perform best, but stocks provide the highest long-term returns. It advises that if invested, staying invested through difficult times is likely to pay off in the long run. It also recommends diversifying to reduce risk. For sudden wealth, it suggests establishing an emergency fund, paying off debt, consulting financial and tax advisors, and avoiding immediate large purchases or investments to make careful plans.
Financial advisors are increasingly recommending safer, more conservative investments in response to the economic uncertainty, such as bank deposits, bonds, and dividend-paying stocks. Advisors are promoting the benefits of protecting principal and seeking modest growth over riskier strategies that could yield higher returns. Meetings with clients focus on educating them about risk tolerance and stress-testing portfolios. While traditional investments have merit, diversification and higher cash reserves are also emphasized given the challenges of relying solely on any one type of investment.
The document provides advice on common mistakes made when raising capital under Section 708 placement rules in Australia. It summarizes Morgan Cradock's report on the "Top 11 Small Scale Offer Document Mistakes", including: not being open to third party investors; believing a Small Scale Offer Document is not needed to raise capital; and providing insufficient details on the use of funds. The report aims to help businesses successfully raise capital while complying with Australian securities regulations.
Investment fraud targets older Americans nearing or in retirement. While anyone can fall victim, fraudsters employ psychological tactics to persuade targets. It's important to be aware of common tactics like promising phantom riches, appealing to credibility or urgency, and implying social consensus. To protect yourself, end conversations without pressure, turn the tables by asking questions about licensure, and check the background of individuals and firms using resources like FINRA BrokerCheck.
This document discusses strategies for funding a startup business. It outlines sources of funds including founders' own money, friends and family investments, angel investors, venture capital, banks, and debt versus equity financing. It emphasizes that outside funding should generally be considered only after internal cash flow and that most startups need less money than anticipated. Guerrilla or unconventional financing involves creativity and thinking outside the box to find funding sources.
This is an abbreviated version of Carl Sheeler's Pulse blog on Linkedin, 'What is your risk vs. opportunity optics?' The purpose of this material on Optics and the presentation about the 'Business Owner Paradox are inter-related.
The document provides steps for requesting writing assistance from HelpWriting.net. It outlines the registration process, completing an order form with instructions and deadline, and reviewing writer bids before authorizing payment after receiving the completed paper. It notes the site offers free revisions and promises original, high-quality content with refunds for plagiarism.
4 active vs passive advisor insert funds flows dfa (advisor present) p. 1-3, ...Weydert Wealth Management
This excellent article contains three key graphics illustrating how average investors flow into and out of investments at the wrong times and contrasts this with the average DFA investor who remains much more consistent and disciplined.
Venture 360 Report Overview For Entrepreneurs 1232000447204805 2gueste76bac7
The document discusses the process for startups seeking angel investment through North Venture Partners. It explains that North provides thorough due diligence on companies through a Venture 360 Report process before promoting them to investors. This process analyzes all aspects of a company over 5-10 days to provide investors with reliable data to make funding decisions. Companies then have the option to improve their business and resubmit for a second review to increase their chances of securing funding. The document emphasizes that North's rigorous process aims to set both companies and investors up for success by thoroughly vetting investment opportunities.
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
This document provides 10 questions for lenders to consider when evaluating a title company partner. The questions address key areas like communication, technology use, experience, insurance coverage, and reputation. Using a title company that can effectively communicate and integrate technology will help support the lender's pipeline and improve turn times. It is important for the title company to have the proper insurance coverage, experience operating nationally, and positive references. Addressing these 10 questions can help lenders choose a title company that is an effective partner and extension of their business.
1. The passage discusses how the financial services industry has evolved since the 1970s with the proliferation of investment consultants, registered investment advisors (RIAs), and various performance screening tools. However, past performance is still not the primary criteria used to evaluate managers.
2. Investment consultants grew in popularity as plan sponsors sought to shift liability for investment decisions to outside entities. This led to huge profits for large consulting firms but their influence is waning with some large endowments.
3. The passage provides background on how the modern investment industry developed with the goal of helping readers make more informed financial decisions.
1. The document discusses how groupthink among investors and consultants has led to mediocre returns. Consultants prefer large, well-known managers due to career risk, even though studies show emerging managers often outperform on a risk-adjusted basis.
2. Emerging managers tend to perform better because they have more flexibility with smaller assets under management. Their strategies are less diluted and they can act more nimbly. However, consultants are reluctant to invest with them due to concerns about infrastructure and track record length.
3. Studies show the smallest hedge funds, making up just 1% of assets, outperformed larger funds by 6.7% annually over 5 years ending in 2010. Emerging funds were also less
Due Diligence for Crowdfunding: How Do You Vet a Crowdfunding Portal?Rachel Speal
How does due diligence work with crowdfunding? How do you determine whether or not the portal is really a Ponzi scheme, willing to take your money and run?
And how do you check out the investments themselves, without using up all the profit on expensive appraisals?
Learn how to vet crowdfunding portals and the investments they list with this informative yet brief presentation.
What Not to Do In Equity: The Hexagon of Equity PitfallsPabloVerra
If you are an impact investor, you should beware of the infamous hexagon of equity pitfalls. Clearly, avoiding these 6 rather common traps will not guarantee you record-breaking IRRs but, at least, you would not be making what I consider, in my humble opinion, 6 avoidable mistakes in equity investing.
The document is a newsletter from the Mid-America Association of Real Estate Investors (MAREI). It includes information about the monthly meeting such as a "Haves and Wants" session for members, a market update, and a profile of member attorney David Nachman. It also advertises various real estate services provided by MAREI members and lists the contents of the newsletter.
The document discusses the JOBS Act and its provisions for crowdfunding and raising capital. It allows small businesses and startups to raise up to $1 million from online investments. Medium and larger firms can raise up to $50 million annually. The SEC must also reach out to women and minority-owned firms. Crowdfunding will have a disruptive impact by providing financing options for difficult to finance small businesses. However, many requirements and details still need to be addressed, such as standards for financial disclosures and investor education. Platforms will also need to register and help manage the crowdfunding process to facilitate these small business investments.
This newsletter summarizes key topics for small businesses including accessing finance, negotiating financing terms, preparing accurate business plans, and presenting proposals to the appropriate decision makers. It also briefly outlines recent tax law changes and incentives regarding employer PRSI contributions and a new double taxation agreement between Ireland and Hong Kong.
Richard D'Ambola • Questar Capital Corporation (QCC)
- When history rhymes: Identifying realistic estimates of future investment strategy performance by Dave Walton
- Buybacks slowing while CEO confidence remains high
- Outsourcing to increase productivity (Steve Miller, Transamerica Financial Advisors)
Thought of the Week - Concentrated Holdings have no place in a Portfoliotheretirementengineer
Global Financial Private Capital is an investment advisory firm located in Sarasota, Florida that is registered with the SEC. It provides investment advisory services through affiliated companies and urges clients to avoid concentrated holdings of a single stock due to the high risks they pose. The document discusses the example of Enron, where both employees and investors suffered major losses when the stock price collapsed after fraud was uncovered, since they had over-allocated to the company's stock. It argues that diversification across different asset classes, geographies, sectors and styles is important to manage risk.
The document discusses handling sudden wealth and staying invested during market declines. It summarizes that during recessions stocks perform the worst while bonds perform best, but stocks provide the highest long-term returns. It advises that if invested, staying invested through difficult times is likely to pay off in the long run. It also recommends diversifying to reduce risk. For sudden wealth, it suggests establishing an emergency fund, paying off debt, consulting financial and tax advisors, and avoiding immediate large purchases or investments to make careful plans.
Financial advisors are increasingly recommending safer, more conservative investments in response to the economic uncertainty, such as bank deposits, bonds, and dividend-paying stocks. Advisors are promoting the benefits of protecting principal and seeking modest growth over riskier strategies that could yield higher returns. Meetings with clients focus on educating them about risk tolerance and stress-testing portfolios. While traditional investments have merit, diversification and higher cash reserves are also emphasized given the challenges of relying solely on any one type of investment.
The document provides advice on common mistakes made when raising capital under Section 708 placement rules in Australia. It summarizes Morgan Cradock's report on the "Top 11 Small Scale Offer Document Mistakes", including: not being open to third party investors; believing a Small Scale Offer Document is not needed to raise capital; and providing insufficient details on the use of funds. The report aims to help businesses successfully raise capital while complying with Australian securities regulations.
Investment fraud targets older Americans nearing or in retirement. While anyone can fall victim, fraudsters employ psychological tactics to persuade targets. It's important to be aware of common tactics like promising phantom riches, appealing to credibility or urgency, and implying social consensus. To protect yourself, end conversations without pressure, turn the tables by asking questions about licensure, and check the background of individuals and firms using resources like FINRA BrokerCheck.
This document discusses strategies for funding a startup business. It outlines sources of funds including founders' own money, friends and family investments, angel investors, venture capital, banks, and debt versus equity financing. It emphasizes that outside funding should generally be considered only after internal cash flow and that most startups need less money than anticipated. Guerrilla or unconventional financing involves creativity and thinking outside the box to find funding sources.
This is an abbreviated version of Carl Sheeler's Pulse blog on Linkedin, 'What is your risk vs. opportunity optics?' The purpose of this material on Optics and the presentation about the 'Business Owner Paradox are inter-related.
The document provides steps for requesting writing assistance from HelpWriting.net. It outlines the registration process, completing an order form with instructions and deadline, and reviewing writer bids before authorizing payment after receiving the completed paper. It notes the site offers free revisions and promises original, high-quality content with refunds for plagiarism.
4 active vs passive advisor insert funds flows dfa (advisor present) p. 1-3, ...Weydert Wealth Management
This excellent article contains three key graphics illustrating how average investors flow into and out of investments at the wrong times and contrasts this with the average DFA investor who remains much more consistent and disciplined.
Venture 360 Report Overview For Entrepreneurs 1232000447204805 2gueste76bac7
The document discusses the process for startups seeking angel investment through North Venture Partners. It explains that North provides thorough due diligence on companies through a Venture 360 Report process before promoting them to investors. This process analyzes all aspects of a company over 5-10 days to provide investors with reliable data to make funding decisions. Companies then have the option to improve their business and resubmit for a second review to increase their chances of securing funding. The document emphasizes that North's rigorous process aims to set both companies and investors up for success by thoroughly vetting investment opportunities.
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
The enterprise managers compared the work results in May 2024 with April, assessed the indicators at the time of the survey (May 2024), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
Vadhavan Port Development _ What to Expect In and Beyond (1).pdfjohnson100mee
The Vadhavan Port Development is poised to be one of the most significant infrastructure projects in India's maritime history. This deep-sea port, located in Maharashtra, promises to transform the region's economic landscape, bolster India's trade capabilities, and generate a plethora of employment opportunities. In this blog, we will delve into the various facets of the Vadhavan Port Development: what to expect in and beyond its completion, and how it stands to influence the future of India's maritime and economic sectors.
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Poonawalla Fincorp’s Strategy to Achieve Industry-Leading NPA Metricsshruti1menon2
Poonawalla Fincorp Limited, under the leadership of Managing Director Abhay Bhutada, has achieved industry-leading Gross Non-Performing Assets (GNPA) below 1% and Net Non-Performing Assets (NNPA) below 0.5% as of May 31, 2024. This success is attributed to a strategic vision focusing on prudent credit policies, robust risk management, and digital transformation. Bhutada's leadership has driven the company to exceed its targets ahead of schedule, emphasizing rigorous credit assessment, advanced risk management, and enhanced collection efficiency. By prioritizing customer-centric solutions, leveraging digital innovation, and maintaining strong financial performance, Poonawalla Fincorp sets new benchmarks in the industry. With a continued focus on asset quality, digital enhancement, and exploring growth opportunities, the company is well-positioned for sustained success in the future.
1. October 2009
Ameriprise Financial
Scott D. Serfass, CFP®,
CRPC® Protecting Yourself from Investment Scamsters
Advanced Financial
Advisor Bernie Madoff may have gone to jail, but if split-strike conversion was as long as it sup-
13830 Ballantyne you think we've seen the last of fraudulent posedly produced the returns Madoff prom-
Corporate Pl. ised (people who did understand the strategy
Suite 200 investment schemes,
you could be setting were the first to question whether his returns
Charlotte, NC 28277
(704)916-6897 yourself up to become were real). You don't have to become an in-
(800)234-1130 the next victim. vestment genius to have a fundamental grasp
Scott.D.Serfass@ampf.com Stronger regulations of what you're invested in, how it works, and
are in the works, but what the potential risks and rewards are.
there are some basic Do your homework
steps you can take to help protect yourself
and your family. A recommendation from an acquaintance may
be a good starting point for research, but it
Know where your money is going shouldn't be the sole factor in your decision-
One of the reasons Madoff was able to avoid making process when
exposure for so long was that his firm acted choosing investments or
as both investment advisor and custodian of an investment profes-
his clients' assets. His clients wrote their sional. Being popular or
checks directly to Madoff's firm rather than to well-known doesn't neces-
an independent custodian. As a result, there sarily make someone the
was no outside verification of whether he was right person to handle your finances.
actually making the trades he claimed. Though it might not have red-flagged Madoff,
Checks should generally be written directly to Form ADV can provide background informa-
a custodian firm that also is involved in proc- tion about a registered investment advisor.
essing your account statements. Part 1 of the form can be found at
Know where your money's going, part 2 www.adviserinfo.sec.gov; Part 2 must be sup-
plied directly by the advisor and includes infor-
Don't invest Web resources mation on services, fees, and investment
purely on the strategies. The Financial Industry Regulatory
The FINRA website
basis of returns; Authority (FINRA) website's BrokerCheck
In this issue: (www.finra.org) has two
understand what allows you to confirm broker licensing and
interactive tools to help
Protecting Yourself from you're investing check on any history of disciplinary problems.
you spot potential
Investment Scamsters in. Because Information about insurance professionals is
investing red flags. The
people were so available from the individual states.
Roth IRA Conversions in 2010: Scam Meter asks a
Goodbye, Income Limits! anxious to in-
series of questions Take advantage of multiple resources
vest with Mad-
Homeward Bound: Investing in
about an investment to
off, he was able Madoff used reverse psychology; the more
the American Dream assess whether it might
to deflect ques- difficult he made it for people to invest with
literally be too good to
Should I lay off employees tions about how him, the more they wanted to do so. If you
be true. The Risk
from my small business? he achieved his question or don't understand advice from one
Meter reviews
results (a fairly financial professional, you should feel free to
behaviors and
simple process, consult someone who can help you make
personality traits that
as it turned out-- sense of what's being proposed for your
make some investors
he lied). Most of money. You might also want to consider using
more likely to be
Madoff's inves- multiple investment managers, each of which
victimized.
tors didn't know may specialize in a specific investing style or
or care what a asset class.
2. Page 2
Roth IRA Conversions in 2010: Goodbye, Income Limits!
With the lure of tax-free distributions, Roth Convert now, pay later
IRAs have become popular retirement savings Normally, when you convert a traditional IRA
vehicles since their introduction in 1998. But if to a Roth IRA, you're required to include the
you're a high-income taxpayer, chances are amount converted--minus any nondeductible
you haven't been able to participate in the contributions you've
Roth revolution. Well, that's about to change. made--in your gross in-
What are the current rules? come in the year you
make the conversion.
Regardless of For 2009, if your modified adjusted gross in-
your filing status come (MAGI) is greater than $100,000, you However, to ease the
or how much can't convert a traditional IRA to a Roth IRA. pain of a potentially large
you earn, you'll This $100,000 limit applies whether you're tax hit in 2010, TIPRA
be able to single or married filing jointly. And if you file includes a special rule
convert a your taxes as married filing separately, you for 2010 conversions
traditional IRA to can't make a conversion at all--regardless of only: if you convert your
a Roth IRA your income level. traditional IRA to a Roth
starting in 2010. IRA in 2010, you can
In addition, your ability to make annual contri- report half the income
butions to a Roth IRA depends on your MAGI: from the conversion in 2011, and the other
half in 2012.
If your federal Your Roth IRA You can't For example, assume that in 2010 your sole
filing status is: contribution is contribute to
reduced for a Roth IRA in
traditional IRA is worth $200,000, and you've
2009 if your 2009 if your made $50,000 of nondeductible contributions.
MAGI is: MAGI is: If you convert the entire IRA to a Roth in
2010, $150,000 will be subject to federal in-
Single or head $105,000 but $120,000 or come taxes. If you use the special rule, you
of household less than more
can report half of the taxable amount
$120,000
($75,000) as income in 2011, and the other
half as income in 2012. Alternatively, you can
Married filing $166,000 but $176,000 or report the entire $150,000 as income in 2010.
jointly or less than more (Note: state tax rules may differ.)
qualifying $176,000
widow(er) (Note that a SEP IRA can also be converted
to a Roth IRA, and a SIMPLE IRA can be con-
Married filing More than $0 $10,000 or verted two years after you begin participating
separately but less than more in your employer's SIMPLE IRA plan.)
$10,000
Is a Roth conversion right for you?
What is--and isn't--changing The answer is complicated, and depends on
many factors, including your income tax rate,
In 2006, the Tax Increase Prevention and the length of time you can invest the funds
Reconciliation Act (TIPRA) became law. without withdrawals, your state's tax laws, and
TIPRA repeals the $100,000 income limit for how you'll pay the income taxes due on the
conversions, and allows conversions by tax- conversion.
payers who are married filing separately, be-
ginning in 2010. This means that regardless of Even if you decide to convert, whether it
your filing status or how much you earn, you'll makes sense to use the special 2010 deferral
be able to convert a traditional IRA to a Roth rule depends on your individual situation. It
IRA starting in 2010. may also depend on where you think income
tax rates are headed. If you expect rates to be
Unfortunately, TIPRA does not repeal the in- lower in 2010 than in 2011 and/or 2012, defer-
come limits for annual Roth contributions. ring the tax hit may not be a good idea. Your
However, depending on your circumstances, financial professional can help you run projec-
beginning in 2010 you may be able to make tions to determine if the special rule is
your annual IRA contribution to a traditional appropriate in your particular case.
IRA, and then convert that IRA to a Roth.
Your financial professional can help you de-
termine if this works for you.
3. Page 3
Homeward Bound: Investing in the American Dream
Your home is more will make the same monthly payments over
than a shelter, it's a the term of their mortgage. And mortgages
sanctuary from the have a finite term--you'll eventually own your
world around you. It's home outright and will continue to benefit from
also a daycare cen- the generated rental income thereafter.
Since 1987, when the
ter, restaurant, laun- Of course, equating your home to an income- Case-Shiller index of
dry facility, and enter- producing asset is more complicated than 10 major cities
tainment complex all rolled into one. And for we're describing here. A detailed analysis begins, it's risen from
some, it's a status symbol. But is it an might account for factors like home mainte- an index value of 63
investment? to 151. Annual return:
nance costs and property taxes, as well as tax Just 4.1% per year.
Just a few years ago, with home prices breaks associated with homeownership. During that period,
steadily increasing, the answer might have Potential for appreciation according to the
seemed obvious. But recent double-digit an- Bureau of Labor
nual declines in housing prices have--not sur- When you purchase a home (and you may Statistics, consumer
prisingly--led to a chorus of calls to rethink the own several over the course of a lifetime), prices rose by 3% a
getting the best value for your money is usu- year. Net result: Home
way homeownership is viewed. Your home, prices produced a
you might hear, is just a place to live, not an ally a concern. Although you may not pur- real return of just
investment. The truth is that even if your pri- chase a home with the intent of flipping it for a 1.15% a year over
mary motivation for owning a home isn't finan- profit in the short term, you probably expect inflation over that
cial, your home qualifies as an investment. that your home will appreciate over the long time.
term. The future value of your home is impor- Brett Arends, Is Your
The profit motive tant, whether you hope to sell your home Home a Good
An investment can be defined as a purchase some day, or intend to leave your home to Investment? WSJ,
or an allocation of dollars with the intention of your children. May 27, 2009.
generating income or profit. Certainly, if you In addition to expecting your home to appreci-
purchased your home with the intent of fixing ate in value over the long term, if you have a
it up and "flipping" it, your home would qualify mortgage, you probably anticipate building
as an investment under this definition. Even if wealth through equity as you pay down the
your primary motivation for buying a home is mortgage. With each mortgage payment you
the enjoyment the home provides, however, make, more and more money (equity) is po-
your home has characteristics that make it an tentially available to you to use toward future
investment--it generates current "income" and goals or to serve as a financial safety net in
provides potential profit in the form of long- retirement.
term appreciation.
That's not to say that a home is necessarily
Your home generates income the most efficient way to accumulate wealth.
If you didn't own a home, you would be paying Depending on where you live, and how long
rent. If you own your home outright (i.e., you you intend to reside in your home, you might
don't have a mortgage), the value of what you come out ahead financially by renting and
would otherwise be paying in rent might be investing the dollars you save by doing so.
considered a type of "income" that your home The point is, that as bleak as the current
generates each and every month. housing market is, over the long term, you
probably view your home as a relatively safe
Similarly, if you have a mortgage, each pay- vehicle for wealth accumulation. As with any
ment you make is offset by the value of this investment, that expectation may or may not
generated income. For example, let's say that be reflected in actual performance over time.
each month you make a mortgage payment of
$2,500. If it would cost you $2,000 each The bottom line
month to rent a comparable home, the incre- Your home is likely your single largest invest-
mental cost of buying rather than renting is ment asset, playing a critical role in the overall
$500. In effect, you're paying $2,500 each accumulation of wealth during your lifetime.
month for your home, but receiving an imme- But, as is the case with all investments,
diate income benefit of $2,000 each month. whether owning a home is the most efficient
Another consideration: while rent can increase allocation of your dollars depends in part on
(or decrease) from year to year, most home- your expectations and tolerance for risk.
owners (at least those with fixed mortgages)
4. Ask the Experts
Should I lay off employees from my small business?
With today's troubled eco- Or, you could change your workers' sched-
nomic conditions, more ules, cutting back hours. Now may be a good
employers are facing this time to consider instituting a four-day work
difficult question. Layoffs week or have full-timers become part-timers.
are no fun for anybody. It's Check to see if your state government will
hard for the workers who lose their jobs, it help by offering unemployment benefits to
hurts the morale of remaining workers, and it workers who must go part-time (a few states
Ameriprise Financial do).
Scott D. Serfass, CFP®, can be a financial and emotional hardship for
CRPC® small business owners who typically have If layoffs are necessary, carefully consider
Advanced Financial dedicated resources to develop their workers' your business needs. Some persons may be
Advisor skills, and often have social ties with their vital to the success of your company, and
13830 Ballantyne employees.
Corporate Pl. laying them off may not be a valid option. On
Suite 200 To help answer this question, first determine the other hand, this could be an opportunity
Charlotte, NC 28277 whether cutting payroll expenses is your best for some housecleaning. Make your company
(704)916-6897 course of action. Remember, there is a cost to more efficient by trimming excess staff, or
(800)234-1130 letting go unneeded management and poor
Scott.D.Serfass@ampf.com laying off, rehiring, and training employees.
Perhaps it would be wiser to obtain an infu- performers.
sion of cash from investors, or cut other Before making any terminations or layoffs,
The information contained in this material is
budget items instead, such as employee however, seek legal advice to avoid any po-
being provided for general education purposes
and with the understanding that it is not intended
benefits. tential employee lawsuits. You'll need to com-
to be used or interpreted as specific legal, tax or
investment advice. It does not address or Next, consider other options. For example, it ply with certain federal and state laws, and
account for your individual investor
circumstances. Investment decisions should may be better for both you and your employ- any employment or union contracts.
always be made based on your specific financial
needs and objectives, goals, time horizon and ees if you retain everyone but reduce wages
risk tolerance.
across the board.
The information contained in this communication,
including attachments, may be provided to
support the marketing of a particular product or
service. You cannot rely on this to avoid tax
penalties that may be imposed under the Internal
Revenue Code. Consult your tax advisor or How should I lay off employees from my small business?
attorney regarding tax issues specific to your
circumstances.
Neither Ameriprise Financial Services, Inc. nor Employee layoffs are not easy for any busi- services, ready to go. Be prepared to
any of its employees or representatives are
authorized to give legal or tax advice. You are ness owner. Here are some tips for a answer any questions your workers may
encouraged to seek the guidance of your own
smoother process. have. Being organized, efficient, and thor-
personal legal or tax counsel. Ameriprise
Financial Services, Inc. Member FINRA and ough may ease the sting felt by both out-
SIPC.
Do it right the first time. Letting go all the going and remaining employees.
The information in this document is provided by a
third party and has been obtained from sources appropriate individuals can prevent a
believed to be reliable, but accuracy and potentially traumatic and costly "second Proceed with tact. Deliver the bad news
completeness cannot be guaranteed by
Ameriprise Financial Services, Inc. While the round." with compassion and respect. Express
publisher has been diligent in attempting to
provide accurate information, the accuracy of the regret and concern. Give as much finan-
information cannot be guaranteed. Laws and Get good legal advice. It is imperative
regulations change frequently, and are subject to cial and personal support as your busi-
differing legal interpretations. Accordingly,
neither the publisher nor any of its licensees or
that you understand your workers' rights ness can allow. Provide hope if rehiring
their distributees shall be liable for any loss or
damage caused, or alleged to have been
and fulfill your legal and contractual obli- when things get better is a real possibility.
caused, by the use or reliance upon this service. gations. For example, affected employ- Let workers finish the day or week, if pos-
ees will likely be entitled to state unem- sible. Allow them to pack up and say
ployment benefits and COBRA extended goodbye to colleagues. Show them to the
health benefits, and you may have to give door. Keep in touch. Following the
proper notice under the Worker Adjust- "golden rule" will hopefully soften the
ment and Retraining Notification (WARN) blow for those moving out and boost the
Act. You want to avoid any possible dis- morale of those staying on.
crimination or other lawsuits that might
ensue. Get back to business. Be open about the
event with your remaining workers. Pro-
Prepared by Forefield Inc, Attend to the details ahead of time. Have vide assurances when possible, show
Copyright 2009 all relevant documents and programs, confidence, and lead your company
such as severance packages, letters of forward to a brighter future.
recommendation, and outplacement