The document discusses strategies for wealth accumulation and preservation. It outlines a five-step process for assessing one's financial situation, defining objectives, analyzing options, creating a plan, and periodically reviewing it. It then describes growth and income investment strategies and portfolios, with the growth portfolio focusing on companies positioned for growth and the income portfolio preserving capital through lower-risk securities. The final sections discuss introductory client interviews and provide contact information for a financial advisor.
What are capital investments and capital budgeting? How does capital investment work? Can capital investment be related with solar projects? We look at all these questions in the presentation shared by Distributed Energy.
What are capital investments and capital budgeting? How does capital investment work? Can capital investment be related with solar projects? We look at all these questions in the presentation shared by Distributed Energy.
These photos represent just a few of the many blessings we've enjoyed here in Peru over the past six months. Thank you for being a part of the blessing through being a part of our community!
Preparing for Early Stage Financing - Pedley, Millin & Gordinier - June 11, 2013almillin
Presentation from a June 11, 2013 workshop titled “Preparing for Early Stage Financing”. Topics covered include:
1. Creating a compelling investor package and preparing for investor presentations
2. Evaluating the sources of financing and legal structures for each stage of a company’s lifecycle
3. Negotiating a term sheet – a deep dive into the key legal provisions and their impact
4. Understanding the different set of documents that comprise the “Definitive Documentation”
5. Preparing for the due diligence process
6. Complying with federal and state regulatory requirements
This is a talk I originally prepared for the Alchemist Series (www.alchemistseries.com) about working with industry analysts. I'd appreciate any other tips and suggestions from analysts, as well as feedback from entrepreneurs. Cheers!
These photos represent just a few of the many blessings we've enjoyed here in Peru over the past six months. Thank you for being a part of the blessing through being a part of our community!
Preparing for Early Stage Financing - Pedley, Millin & Gordinier - June 11, 2013almillin
Presentation from a June 11, 2013 workshop titled “Preparing for Early Stage Financing”. Topics covered include:
1. Creating a compelling investor package and preparing for investor presentations
2. Evaluating the sources of financing and legal structures for each stage of a company’s lifecycle
3. Negotiating a term sheet – a deep dive into the key legal provisions and their impact
4. Understanding the different set of documents that comprise the “Definitive Documentation”
5. Preparing for the due diligence process
6. Complying with federal and state regulatory requirements
This is a talk I originally prepared for the Alchemist Series (www.alchemistseries.com) about working with industry analysts. I'd appreciate any other tips and suggestions from analysts, as well as feedback from entrepreneurs. Cheers!
Understand what kind of practice you have
Real life examples of how to be more profitable
Specifics on what and how to implement at your practice
ZHC Dashboard & Benchmark Tool
"What If" Analysis: How to Develop Corporate Muscle Memory with IBPSteelwedge
Steelwedge Agility Webinar Series
Presenter: Oliver Wight Principal, Eric Deutsch
Great performing companies, like great performing athletes, practice regularly for optimizing “business as usual.” For planning, 90% of businesses today employ Sales and Operations Planning process to try to keep their businesses conditioned. Yet, as recent research from Supply Chain Insights underscores: few do it well. There is a 60 point spread between agile aspirations and actual performance. Only 27% of companies think they are agile enough to capitalize in a volatile environment and see around the blind spots of uncertainty.
A difference-maker? Integrated Business Planning and “What If” Scenario Modeling. In this live webinar, Eric Deutsch, principal with Oliver Wight consulting, and EJ Tavella, VP of Strategic Sales and Solutions, will explore how businesses can:
• develop more agile IBP plans based on a foundation of well-managed assumptions;
• develop “muscle memory” with longer-range contingency plans as well as ad-hoc near-term “What If” scenarios drills;
• visualize where to focus their continuous improvement efforts to shorten the time to respond; and
• leverage technology to optimize real-time results.
Five massive foundational shifts are impacting financial service providers of all types, and they are impacting those that serve affluent clients in especially unique ways. Many of the strategies, skills and behaviors that enabled success in the past are now at best ineffective, and completely irrelevant in some cases. Advisors and firms serving affluent clients must adapt to these new realities to be successful in the future.
Similar to Penniall Pvb Marketing Intro Presentation (20)
Welcome and thank you for your interest in listening to what I have to say about investing today. Hopefully, if I explain this correctly, you will find that what I do is not complicated. I hope you will discern that behind the investment language and tired terms, my philosophy is based on the many timeless jewels of simple wisdom your grandmother told you through the years. “Keep it simple.” “If it sounds too good to be true, it probably isn’t.” “Common sense is not common”. “There are no short-cuts to success.” You’ll get used to hearing those old nuggets if you decide to work with me. You already know how to do it. You just have to learn to trust your common sense. Let’s get started.
“ All Roads Lead to Income” is ultimately what I believe all investing boils down to. The primary goal of investing is to produce a sustainable standard of living. The wealth you carefully accumulated and nurtured over the years is what creates and improves or preserves that standard of living. Sustainability means your investments can reliably continue to pay out a growing stream of interest and dividend income outpacing inflation. For most people, that means planning to replace earned income (salaries e.g.) with passive income (investments) at retirement. Always know how much income your current portfolio could produce and how much it would cost today to support your anticipated retirement standard of living. You can then calculate what the total value of your portfolio should be if you were retiring today. You now know your destination. All you need is a map.
(after walking through the steps) This is my map. Nothing original. I’m sure you’ve seen this many times. It has become a cliché in this business and for good reason: it is important. Forecasting the future is a risky proposition. The key is keep making small adjustments to our assumptions as reality keeps taking us places we won’t want to go. Addressing the small problems when they are small is how we avoid the big problems. Be pro-active, not re-active. A proper formal plan is based on reasonable assumptions that specifically define what you are trying to do and by when. This plan should be reviewed regularly to assess how we are doing so far, identify and analyze “drift”, and determine if any changes are to our assumptions or strategy. In the real world, the road is full of pot holes and detours. Expect it and be ready.
Over the years, I have learned to take a slightly different approach to explaining growth versus income than most advisors. As you have probably figured out by now, it’s all about cash. By adopting a “Where’s the cash!” core philosophy for both investment strategies, I have found that is it is easier to explain to clients where they stand relative to their long term goals at any point in time. For instance, it is important to understand how much of your income growth is predicated on your ability to save versus assumed future rate of return. If five years before your planned retirement, you find that your portfolio has to double over that time just to meet the minimum income target, you are in trouble. That is an unsuitable investment plan for someone so close to retirement. Better to see the problem developing early. As we get older and income becomes more important, I would rather migrate specific income-generating holdings from the growth portfolio to the income portfolio than selling holdings from one portfolio to re-invest into the other. It is more cost-effective and tax-efficient. And since both portfolio strategies can grow and generate income, it doesn’t require changing the way you think. You’ve been cash-oriented all along with both strategies. This next slide demonstrates the important characteristics that distinguish the two strategies.
The upper chart is a proxy for the Barclay Aggregate Bond Index. This 5-year chart closely approximates the composition of the entire US bond market and so is representative of the risk-adjusted return and volatility of that asset class. This is the primary benchmark for comparing risk-adjusted performance of income portfolios. The lower chart is the performance of the S&P 500 for the past 5 years. This is the primary benchmark for comparing risk-adjusted performance of growth portfolios. Note that stocks and bonds tend to be negatively correlated . The volatility of one tends to offset the volatility of the other thus lowering the overall risk of the combined portfolios. Managing over-all volatility of overall investment holdings is central for managing timing risk as investors approach important income events (retirement e.g.). If you are retiring next year and need a specific amount of income to meet your retirement needs, that income, and hopefully much more, better already be there. If that income is inadequate, the difference will likely be made up by selling off equities. Having enough income on retirement doesn’t mean have solved the problem of outliving your assets. Depleting your protection against inflation by selling stocks to replace income shortfalls means you are re-introducing equity market risk into your portfolio as you get older. MANAGING RISK IS IMPORTANT! Let’s now talk about stocks versus bonds.
Let’s talk about the growth portfolio first. All of my growth portfolios are managed to conform to the same model portfolio I start with a top-down evaluation of the investment environment. I analyze and consider economic factors such as the interest rates, corporate earnings, inflation, employment and other factors in arriving at an opinion about where we are likely heading. I then perform a bottom-up assessment to identify those industries and companies that are best positioned to do well in the anticipated environment. My feet are always firmly planted in America and let them venture out to exploit global opportunities. These are the 7-8 core holdings of large cap American companies that I plan to defend for the long run. Applying my “Where’s the cash!” test, I look for companies that consistently generate robust surplus cash flow at the operating level and have an established track history of profitably re-directing it into growing dividends or capital expenditures to expand their thriving businesses. To those core holdings, I will add tactical positions as opportunistic trades that could become core holdings eventually. When the environment is challenging, I take a defensive approach and keep plenty of cash in reserve while being quick with the sell trigger. When the environment is favorable, I try to stay fully invested with a longer time horizon. I am always looking to improve core holdings by finding stronger replacements. I am also always looking for opportunistic trades. But I am very focused on risk management. I dread big losses, particularly those associated with “off the cliff” market swoons as we had in 2000-2002 and even worse in 2009. Avoiding those big losses is much more important than dramatically outperforming every major rally. Big losses are almost impossible to make up. It’s simple math.
Investing for income is typically much less complicated than it is today where a prudent fixed income investor simply cannot produce adequate income from a traditional bond portfolio. The Federal Reserve has committed to it’s ZIRP policy to the end of 2014 and most economists are expecting that to be extended. As of today (3/19/12), a five-year Treasury will only pay you 1.15% interest. To someone who retired ten years ago living off of a $1 million five-year Treasury portfolio, annual income went from about $35,000 to $11,500. That wasn’t much income for so much principle to begin with. And the only way to improve on that is to take risk. You can extend your maturities but risk catastrophic spikes in interest rates. You can re-allocate into lower-rated bonds but risk catastrophic defaults You can re-allocate into dividend paying stocks but risk dividend uncertainty and equity market volatility. You can go back to work.
Yes, another questionnaire. But rather than handing it to you, I walk you through it in conversationally during the initial interview. It’s a conversation that enables both of us to not only compile the important information, but give us an opportunity to understand each other. Keep in mind that you are interviewing me too. You should come prepared with an inventory of what you own, especially the assets available for investment and a list of current and future sources of income. Applying a few simple rules of thumb will reveal whether your income objectives make sense. Sometimes bigger estate issues and potential future tax problems can also be identified. These should be addressed before going producing a final recommendation. Maybe you don’t have a family trust or that the very size of your estate is setting you up for serious estate tax problems later when the only solution might be to buy life insurance. If you are a wealthy investor and have not talked to an estate attorney, you should. After the interview and once all tax, estate and other issues are resolved, I proceed with a formal recommendation for you to consider. You then make a decision. Any questions?
