The financial industrial arts are not in economics but rhetoric. They have no proof, no science and even actuarial subject products have only shown failure. We continue to demonstrate proof in real markets as the herd turns and mooing increases. Here is a timeless article from our vaults.
14 Outdated Investing 'Rules' You Don't Need To Follow AnymoreScott Tominaga
As the times change, so does the world of finance. Some investors are still stuck on “rules” of investing that have become obsolete, and sticking with these old adages may hurt you in the long run.
How To Raise Money From Family And Friends The Right WayFit Small Business
According to research, 36% of funding for startups comes from family and friends. Furthermore, family and friends invest on average $23,000 in a startup. This presentation will explore the complexities of accepting this money in the form of equity or a loan, how to minimize friction once the investment is made, and one potential tax issue related to paying interest.
An Introduction to the World of Venture CapitalScott Tominaga
When startups need funding, venture capital is one option they might consider. Getting funding from a VC firm can offer certain advantages to new businesses that may not be able to get approved for traditional loans. Thanks to the rise of crowdfunding, it’s now becoming decidedly more mainstream.
Mooing slowly @ 15.21% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
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Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
StockTakers 3 year BookBuilderTM 25.15% IRR is charity to small investors of our proprietary Risk Price the proven metric investors need. The Modal Geometry gives new clarity navigating balance sheets for sound debt structures in any firm. From that we derive our Risk Price.
Marlow Felton, Chris Felton • Transamerica Financial Advisors Inc.
- A Millennial’s perspective: How we really feel about money and investing by Nick Halle
- The continuous bid under the market
- The force of Supply at major tops in the U.S. equity market by Tracy L. Knudsen, CMT
- Working a structured referral process (Don Meredith, Lincoln Financial Advisors Corp.)
StockTakers aid to small investors in the great Rotation continues. The biggest Wild Assed Guesser will be the donkey whose tale gets pinned, by market volatility. Whose money got pinned is a real ethical question.
StockTakers season of giving Best Wishes to small investors continues.
Small investors can enjoy another slice of our Risk Price method to earn investment income for yourselves.
Accredited investors can Buy A Slice of StockTakers 12% Bond[i] to earn investment income for them and leave that work to us. Because We Can.
StockTakers TaxCharit€TM allows euro-small investors to grow their wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Shareholders Are Dissatisfied with CEO Compensation and Disclosure--Proxies Are Too Long, Difficult to Read.
Only 38 percent of institutional investors believe that corporate disclosure about executive compensation is clear and easy to understand. “Shareholders want to know that the size, structure, and performance targets used in executive compensation contracts are appropriate,” says Professor David F. Larcker of the Stanford Graduate School of Business. “Our research shows that, across the board, they are dissatisfied with the quality and clarity of the information they receive about compensation in the corporate proxy. Even the largest, most sophisticated investors are unhappy.”
“With new pressure from activist investors and annual ‘Say on Pay’ (SOP) votes, it is more important than ever that companies explain to their shareholder base why the compensation packages they offer are appropriate in size and structure,” says Aaron Boyd, director of Governance Research at Equilar. “Investors are noticing the wide range in quality and clarity among various companies’ proxies. They want companies to communicate and explain, rather than simply disclose,” adds Ron Schneider, director of Corporate Governance Services at RR Donnelley Financial Services. “This represents a significant opportunity for many companies to improve the clarity of their proxies.”
In the fall of 2014, RR Donnelley, Equilar, and the Rock Center for Corporate Governance at Stanford University surveyed 64 asset managers and owners with a combined $17 trillion in assets to understand how institutional investors use the information in corporate proxies.
The financial industrial arts are not in economics but rhetoric. They have no proof, no science and even actuarial subject products have only shown failure. We continue to demonstrate proof in real markets as the herd turns and mooing increases. Here is a timeless article from our vaults.
14 Outdated Investing 'Rules' You Don't Need To Follow AnymoreScott Tominaga
As the times change, so does the world of finance. Some investors are still stuck on “rules” of investing that have become obsolete, and sticking with these old adages may hurt you in the long run.
How To Raise Money From Family And Friends The Right WayFit Small Business
According to research, 36% of funding for startups comes from family and friends. Furthermore, family and friends invest on average $23,000 in a startup. This presentation will explore the complexities of accepting this money in the form of equity or a loan, how to minimize friction once the investment is made, and one potential tax issue related to paying interest.
An Introduction to the World of Venture CapitalScott Tominaga
When startups need funding, venture capital is one option they might consider. Getting funding from a VC firm can offer certain advantages to new businesses that may not be able to get approved for traditional loans. Thanks to the rise of crowdfunding, it’s now becoming decidedly more mainstream.
Mooing slowly @ 15.21% pa.
StockTakers TaxCharityTM lets small investors grow their wealth with our Risk Price driven 'likeables'. .
Enjoy another slice of our Risk Price method to earn self-directed investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
StockTakers 3 year BookBuilderTM 25.15% IRR is charity to small investors of our proprietary Risk Price the proven metric investors need. The Modal Geometry gives new clarity navigating balance sheets for sound debt structures in any firm. From that we derive our Risk Price.
Marlow Felton, Chris Felton • Transamerica Financial Advisors Inc.
- A Millennial’s perspective: How we really feel about money and investing by Nick Halle
- The continuous bid under the market
- The force of Supply at major tops in the U.S. equity market by Tracy L. Knudsen, CMT
- Working a structured referral process (Don Meredith, Lincoln Financial Advisors Corp.)
StockTakers aid to small investors in the great Rotation continues. The biggest Wild Assed Guesser will be the donkey whose tale gets pinned, by market volatility. Whose money got pinned is a real ethical question.
StockTakers season of giving Best Wishes to small investors continues.
Small investors can enjoy another slice of our Risk Price method to earn investment income for yourselves.
Accredited investors can Buy A Slice of StockTakers 12% Bond[i] to earn investment income for them and leave that work to us. Because We Can.
StockTakers TaxCharit€TM allows euro-small investors to grow their wealth with our Risk Price driven 'likeables'.
Enjoy another slice of our Risk Price method to earn investment income for yourselves.
Because You Can.
Accredited investors can Buy A Slice of StockTakers 12% Bond to earn investment income by leaving that work to us.
Because We Do.
Shareholders Are Dissatisfied with CEO Compensation and Disclosure--Proxies Are Too Long, Difficult to Read.
Only 38 percent of institutional investors believe that corporate disclosure about executive compensation is clear and easy to understand. “Shareholders want to know that the size, structure, and performance targets used in executive compensation contracts are appropriate,” says Professor David F. Larcker of the Stanford Graduate School of Business. “Our research shows that, across the board, they are dissatisfied with the quality and clarity of the information they receive about compensation in the corporate proxy. Even the largest, most sophisticated investors are unhappy.”
“With new pressure from activist investors and annual ‘Say on Pay’ (SOP) votes, it is more important than ever that companies explain to their shareholder base why the compensation packages they offer are appropriate in size and structure,” says Aaron Boyd, director of Governance Research at Equilar. “Investors are noticing the wide range in quality and clarity among various companies’ proxies. They want companies to communicate and explain, rather than simply disclose,” adds Ron Schneider, director of Corporate Governance Services at RR Donnelley Financial Services. “This represents a significant opportunity for many companies to improve the clarity of their proxies.”
In the fall of 2014, RR Donnelley, Equilar, and the Rock Center for Corporate Governance at Stanford University surveyed 64 asset managers and owners with a combined $17 trillion in assets to understand how institutional investors use the information in corporate proxies.
هي قصة مشوار بدأ ولم ينتهِ بعد. سيكون فيها كل يوم شيءٌ جديد. سأتعلم وسأحكي لكم ما تعلمته. ربما وفّرت عليك التجربة لتُغيّرَ كثيرًا من قناعات لديك.
إن كنت طالبًا، أو حديث التخرج، وتنوي عمل دراسات عليا بمصر، فدعني أعرّفك قليلًا على أشياء خارج توقعاتك، إن لم يكن لديك فكرة. وإن كنت قد اتخذت خطواتك الأولى بالفعل فربما تجد في قصّتي ما يفسر ألغازك، ويهوّن عليك المفاجآت. لن أقول لك الآن ما مجال دراستي، فرغم احتمال أن تكون دارسًا لتخصصٍ آخر يختلف عني، ولكنني أثق أن لديك نفس الأسئلة، ونفس الشكوى.
For Those Who Want to Prosper & Thrive in Retirementfreddysaamy
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Our core capital should be designed to outlive us. In fact, it’s important for you to start thinking about your money in terms of it outliving you, not the other way around. You don’t want to outlive your money.
Whether you've been in business one week or five years, an infusion of funds is always welcome. But what type of financing is best for your business? There are so many factors to consider--from the stage of your business to how much it'll cost to get the money--that just choosing a path to follow can be overwhelming.
It takes more than just a great idea to run a successful business. Entrepreneurs and existing business owners need capital to pursue their vision.
Raising funds is the most tedious and complex question faced by every startups. There are few options by which startups can raise funds are been listed in this presentation
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Starting your fundraising journey? It can be a bitch, especially when you're in Singapore. How do you raise from angels? Institutional investors? Do you need a pitch deck? What tools are available to you?
I want to help answer those questions, and give folks who are beginning to fundraise some clarity on this understandably stressful process! It's by no means exhaustive, but it should help give newbies some direction!
Becoming a millionaire might sound impossible to some, while others view it as something within their grasp, requiring effort and commitment. Unbeknown to many, becoming a millionaire has nothing to do with whether they come from a wealthy family or not or where they got their degree.
I. IntroductionYou were recently hired as an associate consultaNarcisaBrandenburg70
I. Introduction:
You were recently hired as an associate consultant by a major consulting firm (Shefrain
Consulting). This learning demonstration will guide you through several challenges allowing you
to demonstrate competencies in understanding the importance of psychology on financial decisions
and how to avoid common psychological mistakes in financial decision making. Behavioral
Finance covers “individual and group emotion, and behavior in markets. The field brings together
specialists in personality, social, cognitive and clinical psychology; psychiatry; organizational
behavior; accounting; marketing; sociology; anthropology; behavioral economics; finance and the
multidisciplinary study of judgment and decision making”. (Source: Journal of Behavioral
Finance). Developed in the 1970s and 1980s by academics including Amos Tversky, Daniel
Kahneman, Richard Thayer and Meir Statman, behavioral finance stresses that psychology and
emotion prompt investors to behave in ways that are inconsistent with what is considered rational
in traditional finance. The 2010 World Wealth Report devoted a special ten-page section to
behavioral finance, stemming from the conclusion that one of the most profound consequences of
the financial crisis has been the increasing prominence of “emotional factors” in the financial
decision-making process of large investors.
II. Steps to Completion:
Over the course of this learning demonstration you will be required to complete a six part
deliverable for your new employer, Shefrain Consulting to demonstrate your competence in the
important field of Behavioral Finance. In particular, you will be required to demonstrate a high
level understanding of Prospect Theory and the implications of this theory on traditional financial
decision making, understand major biases common in financial decision making and the process
of debiasing, demonstrate your knowledge of behavioral finance in the context of a client’s
investment decisions and portfolio allocation, understand that behavioral factors impact many
important corporate financial decisions, and clearly articulate the important aspects of behavioral
finance on your career and the prospects for Shefrain Consulting. Since you are a recent hire of
Shefrain Consulting, it is important to make a good impression. Throughout this learning
demonstration be sure to always support your arguments with reputable sources, sound logic, and
your own unique insights. Professionalism throughout this learning demonstration is expected and
required as Shefrain has a large pool of potential junior consultants if your report is deficient. At
the conclusion of this learning demonstration, you will be required to submit a final report with
six parts addressing each of the hypothetical issues raised throughout this learning demonstration.
2
1. Prospect Theory
“We really want to help clients make better decisions,” said Stephanie Jones, senior consultant at
Shefrain Consulting, LLC, “and if we unders ...
Emerging economic trends are going to make the future very difficult for millenials who hope to buy a house or have savings for retirement. Learn the basics of financial literacy; how to avoid debt, build a nestegg and acquire advice on personal portfolio management.
1. 1
If you’re perfectly capable of running your own
retirement savings, selecting the right mix of low-
cost investments, rebalancing at the right time
and not buying and selling out of fear or
greed, then good for you.
But the majority of people — maybe the
vast majority — are not like that. They
may be smart enough to do the right
thing, in theory, but they forget or slip up or are
taken in by well-meaning friends bearing stock
tips or annuity-peddling scoundrels who make
nice to them over free steak dinners.
For people with more than $500,000 or so to
invest, finding first-class help is hard but not
impossible. If you have more than $1 million,
Source: Robert Caplan for the New York Times
Rebalance IRA is an advisory service for retirement investors, co-founded
by Mitch Tuchman, top left, with Jay Vivian, top right, and bottom row
from left, Charles D. Ellis, co-founder Scott Puritz and Burton G. Malkiel.
Mr. Tuchman has also started MarketRiders.
2. 2
you’ll have your choice of many of the best
financial advisers in town. But until recently, it
was tough for people with a few hundred thousand
dollars or less to find reasonably priced assistance,
especially if they were insistent on putting money
in the kind of low-cost investments that would
not pay a commission or other fee to the person
helping them.
On Friday, the latest entrant in an increasingly
crowded field of services trying to serve this
customer is introducing its offering, which is
called Rebalance IRA. As the name suggests,
it exists only to help you with your Individual
Retirement Account, perhaps one that you’ll fill
with money that’s been sitting around in several
401(k) or similar accounts at previous employers.
Rebalance IRA representatives will talk with you
about your goals, invest your money in a low-
cost collection of index fundlike exchange-traded
funds that don’t try to make big bets on individual
stocks, and rebalance the investments when
necessary. In exchange, you agree to hand over one
half of 1 percent of your assets each year, with a
minimum annual fee of $500.
The company’s single-minded focus on retirement
savings is somewhat narrow, but it makes sense
given how much money is at stake and how badly
many people mess things up when they do it on
their own.
There is more money in I.R.A.’s than in any other
type of retirement vehicle, according to estimates
from the Investment Company Institute. I.R.A.
balances totaled $5.3 trillion at the end of the
third quarter of 2012. That’s more than the $5
trillion in 401(k), 403(b) and other similar plans;
the $4.8 trillion in
government retirement
plans; and the $2.6
trillion in traditional
pensions.
According to the
Department of
Labor, the professionals who run pension plans
earned an 8.3 percent annual return from
1991 to 2010. People fending for themselves in
401(k) and similar plans earned 7.2 percent.
3. 3
Nationwide I.R.A. performance figures are more
scarce, though one 2006 study by the Center
for Retirement Research put the figure for 1998
to 2003 at 3.8 percent annually, roughly 2 to
3 percentage points worse than pension fund
managers and 401(k) investors did during that
same period.
These numbers are a bit squishy, given that
pensions often make bets in markets that 401(k)
investors can’t access and the high fees that many
401(k) participants pay that pension managers
don’t. Still, there are about a thousand reasons
plenty of do-it-yourselfers (who, after all, did not
volunteer to manage their retirement money)
would be likely to get worse returns than, say,
pension managers.
To start with, large numbers of people make
extreme bets. At Vanguard, 10 percent of
retirement plan participants invested only in
stocks in 2011,
while 8 percent
had no stocks at
all. At least this
is better than
2004, when
35 percent of
its customers
were that far out of balance. Then, there are the
emotional challenges. To stick with the mix of
investments you’ve selected, you need to sell things
that have done well and buy investments that have
lagged recently. That’s hard to do.
Then there’s the grab bag of other feelings. The
bad experience with a broker you may have had in
the past. The spouse who may scold you for doing
the wrong thing. The fear that may have caused
you to bail out in early 2009 or the greed that has
you pouring money into stocks today, now that
they’re looking up again. This can be intensely
hazardous to your long-term financial health.
All of this should be self-evident, but because we’re
playing on the field of emotions, it isn’t. Still, it
wasn’t immediately obvious to Mitch Tuchman,
the man behind Rebalance IRA, who started a
service for do-it-yourself index investors called
MarketRiders in 2008.
A former software entrepreneur, Mr. Tuchman
had a midlife conversion to passive investing and
not trying to beat the market, and he wanted to
help others invest in the same way. “We thought
we could build such great software that we could
turn everyone into a do-it-yourselfer,” he said.
“And people said they didn’t have time or they
didn’t care to do it themselves.”
MarketRiders charges subscribers $150 a year
for instructions on how to adjust their portfolios
and when, and it will continue to exist. But Mr.
Tuchman, who had also started managing millions
of dollars on the side for friends and family who
simply could not be bothered to do it themselves,
eventually realized that his sideline was where
the real mass-market opportunity lay.
So why would you let this guy handle your
money? It’s a perfectly reasonable question, and
plenty of start-ups in the money management
space don’t do a particularly good job of
answering it.
4. 4
“It’s surprising to me how many entrepreneurs
go on and on about the lack of trust in big
financial institutions,” said Grant Easterbrook,
a senior research associate at Corporate Insight
who published a guide this week to money
management start-ups. “But they’re not putting
forward the people behind the product who
actually make the investment decision. Who am I
trusting if the euro breaks up or we mint
a trillion-dollar coin?”
Mr. Tuchman has anticipated this concern and he
and his co-founder, Scott Puritz, rounded up an
investment advisory board that includes Burton
G. Markiel, the emeritus Princeton economics
professor who wrote “A Random Walk Down
Wall Street” among other books; Charles D. Ellis,
author of “Winning the Loser’s Game” and a
former Vanguard board member; and Jay Vivian,
who once ran I.B.M.’s retirement plans.
The group has created a collection of investment
portfolios, most of which have a slight tilt toward
small stocks, which tend to outperform the overall
stock market over time. Many of the portfolios
are also currently spiced up with indexed
investments in high-dividend stocks and
emerging market bonds.
Besides the annual fee based on assets, there’s a
$250 fee to get started, and you must move your
I.R.A. accounts to Schwab or Fidelity if they’re
not already there.
Mr. Malkiel, who describes himself as the
informal investment adviser to Princeton widows,
will not be talking to you on the phone, alas. That
task falls to Rebalance IRA staff. Mr. Tuchman is
looking to hire a few more, including emotionally
intelligent M.B.A. types with some finance in
their background who may have been home with
children the last few years and want to get back
into the work force. Customers will be able to
speak with them via videoconference and talk to
the same person each time.
Neither these workers nor Rebalance IRA earns
any fees from the companies that provide the
investments. All of Rebalance IRA’s revenue
will come from its customers, and as a registered
investment adviser, Rebalance IRA is legally
bound to act in those customers’ best interest.
There are other, cheaper ways to find someone
to put your money in a portfolio like those at
Rebalance IRA and run the money for you
(though Mr. Tuchman insists that his service will
offer more human contact). A company called
Wealthfront, which has also put Mr. Malkiel to
work, will do something similar for about 0.25
percent annually.
Investors at Betterment, which slashed its prices
last year, now pay about 0.30 percent on average,
and the company has taken in nearly $100
million since it cut its fees. People with more than
$100,000 invested there pay only 0.15 percent
annually and can get advice from the founder
himself, Jon Stein.
Still, he said that not many people had sought him
out and even then it was usually just to make sure
they were on track with their goals.