Q: New Zealand Property Market – Investment?
We are from Australia and new to the NZ property market. How does this Freehold vs 99 (or shorter?) year lease thing work? Also, what fees are associated with owning a townhouse or unit (e.g. body corporate etc. ). Thank you

A: Freehold is when you own the property and the land. With a Leasehold purchase you must pay a rent to the landlord of the land that the property is built on.

New Zealand is a good place to buy property though as there are few property taxes etc and no stamp duty. Ref:

Q: Thinking of buying an Investment property in Invercargill New Zealand.?
We are thinking of buying an Investment Property in Invercargill. With the Real Estate prices that we have seen there and the exchange rates against the N.Z dollar, it seems to us like a good investment. Can any of the locals give us some idea of which areas might be better locations than the others. We have seen several properties online for sale in Appleby, they seem very cheap, is there a reason for this? Any help would be gratefully appreciated.

A: I live 100 km from Invercargill. The only thing you need to check is that there are no gang headquarters nearby. Apart from that, In’gill is a clean, quiet place with no serious problems and a stable, inexpensive property market. Appleby is on the south side of town, fairly close to where gangs are located. I suggest you check with the Invercargill police.

Q: A question about property investment in relation to the economy/politics?
I live in New Zealand and here economists and the government are crying like babies because many people own more than one home and rent the other to other people as a form of making money, rather than starting their own business up. What impacts would many people having more than one home have on the economy? I disagree with the government’s idea that taxing them would improve the situation, it sounds like them having a hand in the smart person’s pocket. My country is pretty high on the OECD for inequalities and I doubt this is addressed by the government who are conservative/right-wing/facists/neo-liberal/republican

A: In theory, if too many people did that there would be more competition in the market for rents and rents would fall and owning real estate would become less profitable as more people entered the market. I agree with you that the government should not get involved.

Q: Why is US dollar weak compared to New Zealand or Austrialian dollar? We need to gain 60% to equal them?
We need to gain 60% to match the same level we were 5 years ago! That is insane!

I understand the EURO domiance over us but New Zealand or Austrailian don’t have an economy powerful like ours. How come there currency is so strong? People say US trade deficit is the problem but don’t these countries have the same problem has us? I was shocked that two homes near us were bought by Europeans and Austrialians for investments. That is sad that people from overseas can buy our property but we can’t. What are your thoughts? thanks!

A: Don’t know about NZ but Australia has a lot of commodities (ie. base metals, gold, uranium) that other countries (ie. China) need and we’re in the middle of a high commodity price cycle. Here’s just one scenario – they’re building 100’s of new airports in China, which means more steel, which means more nickel, copper, coal etc which Australia has in abundance.

OTOH, the USD is freefalling, with deficit, subprime, housing bubble problems, etc. How are they financing the war in Iraq? Billions being spent, paying soldiers and private contractors. How is Blackwater being paid? Did they go through the appropriate channels or was it an off-book item?All of these things, among others, add up to a weaker USD.

Q: Immigration to New Zealand, Australia, Sweden, USA, South Africa or Europe ? ?
I will be selling some property off and can invest about 750,000 USD as a precurser to immigration for my family of 4

I have a lawyers degree, and no degree in any financial field.

I am a good technical analyst in stocks, and have a good record in the Indian markets. I do know that any bank or fund can see my record and realise for themselves that i can be put on a test case because most probably i will earn money for them.

I would like to immigrate to any of the regions above, in the above order – but i dont know if track record ( but no degrees ) and investment are qualification enough . Which of the above countries are more open to immigrants
i forgot to add, im a Hindu Indian aged 40

A: Your law degree wont be much use – you will have to relearn law from whichever country you eventually immigrate to. I’ll bet you end up going back to law school.
Investing in a business (starting your own business) would be a faster way to emigrate BUT you dont have any business experience.
If you do choose to invest, you start a business that will hire locals
And when you say Europe, which country in Europe do you mean?
There are over 20 countries there.

Ypu’ll need to google USA, Sweden, South Africa (although I have heard it is very hard to get into south africa) and any others on your own.

Q: What should be the salary in Investment Banking(Prime Brokerage) operation with a work experience of 5-6 years?

A: That depends on the size / status of Company….25 to 30 k/ pm.

Q: What is the average salary of a person with an MBA from NYU? investment banking…?
Ok, so my mom works in an investment bank but is not an investment banker. She makes a little over $100,000 per year, but she is not satisfied, so she wants to go to NYU for their MBA program. She would like to know the average salary that she would be making. Thanks a lot.

A: If she has a kid posting this, then I would think she is older. I doubt she would take one of the jobs that a 24 year would take (80 hours/week, being treated like crap), so I also doubt she will ever get one of the high paying jobs. You just do not get the job by getting the MBA, you still have to pay some dues when you get to the IB.

She would probably do a little better than she is doing now, but her base would not go up. It would probably go down and then have a bigger bonus. I would expect $100K total comp to start (since she will not work 80/hours) and then go up from there

Q: If investment banks pay such a high salary, why doesn’t everybody want to work in one?
I hear that programmers working for investment banks get salaries like $150,000 right out of college.

If that’s the case, why don’t they all go to investment banks? Why do so many of them just want to go to Google or Microsoft?

A: Because a lot of people find that kind of work boring. A paycheck’s nice, but if you hate what you’re doing, you won’t do as good a job, and you’ll be miserable. And the corporate culture can be stifling if you’re not the buttoned-down type.

Q: What’s the average salary for an Operations Vice President inc bonus percentile within Investment banking?
Is it possible to move smoothly into middle office?

A: Maybe 240 to 260k after bonus, before taxes at a bulge bracket.

Q: How much does a typical first year analyst get paid in an investment bank; base salary, and bonuses?
ie how much is the base salary, the sign on bonus and year end bonus?

A: £40 to £45k. Bonuses depend on the firm – say £15 to £20k in year one obviously dependent on performance.

Q: How does career progression / salary differ between trading and structured finance within investment banking?
I am considering taking an offer in structured finance or going for a trading role. I am trying to weigh up my options

A: Trading is more commission based. You will have a more stable salary in structured finance. Trading you can progress to opening up your own trading desk or buying a seat on the exchange. With structured finaince you can progress pretty high up also. Lot of money to be made. I would be more comfortable with the structured finance personally though.

Q: Which division in Investment Banking offers the highest salary?
To fresh graduates.
and 5 years down the line

A: As long as you are on the investment banking side (rather than the stock research side or wealth management or any of those non-transactional parts) you’ll make serious dollars vis-a-vis anything else you could get post-undergrad, so don’t worry whether its corp. fin. or structured finance or fixed income securities or muni. finance.

5 years down the line — that’s an odd question. Most analysts work 2 years, then go to business school, and then after business school they go back into banking, into private equity, into operations, etc. ….

If you want to make a lot of money investment banking is a great option if you have the credentials and the fortitude for it, but honestly don’t get so greedy that you come off as crass. If you told someone at a GS interview that you were interviewing at their group rather than another group because you thought you’d make more money, odds are they’ll think you don’t know what you are talking about it since every investment banker worth his or her salt makes serious cash.

Q: average salary in Investment Banking in Singapore?

A: well, i guess it depends on experience and qualifications, and i’ve searched 88db website and found that average salary for post of investment banking in Singapore is about S$16500 – S$24000, with a degree and about 8 years of experience…..

hope this helps

Q: Investment Banking or Private Equity ?
I want to know which pays higher salary: investment banking or private equity jobs at analyst level.

Is investment banking career more stressful and time consuming (like working 14-16 hours a day) then Private equity?

A: If you want high earnings, you need to be willing to work long hours and endure stress whenever necessary.

If you want to avoid overtime and stress, be prepared to earn less – and stay away from investment banking and private equity.

Q: what other jobs have higher salaries than investment banking and accounting?

A: In bad time, Inv Bankers (IBs) do not make as much money. Here is an approx rundown

IB analyst (60K + bonus)
IB associate (95K + bonus)
IB VP (150K+bonus)

bonus will range from 30% to 300% of your base salary.

Accountant (1-3 yrs exp) = 45-60K
Accountant (>5yrs exp)=95K

1 year doctor (after residency, avg of all specialties) = 180K
1 year doctor (after fellowship, avg of all specialties)=220K

US Senator = 165k

Successful Trader = (100MM)

Successful Hedge fund Manager : ($800MM)

Q: How much bonus does an investment banking analyst make ?
I intend to go into finance/investment banking (after i graduate and hopefully the economy recovers) . How much salary+ bonus would a NEW investment banking analyst make at an i-bank such as goldman sachs or jp morgan. also, i intend to get a Masters in financial engineering after i graduate from college…..is it even worth it? will it give me a better shot at a higher position at an investment bank or will i have to start at the same level as college graduates?

A: At that level, the bonus is not significant. To make the big dollars, you need to become a banker with close ties (i.e., give a lot of money) to the President, the Speaker, and various other corrupt politicians.

Q: Investment Banking Salaries?
How much money does an Investment Banking Analyst/Associate at a top firm make in a year? More specifically in New York City.

A: Analyst make $60-80,000 annually + $20-60,000 bonus. Salary is based on credential and experience such as where you got your undergrad as well as how well the businesss did that year. MBAs are obtained after 2-3 years of being an analyst and are promoted to the associate level. Associates make $90-120,000 annually + $50-100,000 bonus. Long stroy short, analyst make 120k and associates make 200k. Plan on long hours (100 the 1st year 80+ the second) yet rewarding work. Plan on having top grades from top schools (like Harvard) if you are going to get a job in New York. Salaries outside of New York, Boston, San francisco make UP to 30% less but offer a better lifestyle.

After being an associate for 5 years comes VP at 500k then VP for 5-8 years to Managing Director at 1-2 million.

But you will probably not last that long.

Q: What is a good salary in Sydney in Banking?
Can anyone suggest what would be a good salary for a 32 year old in investment banking (but not particularly senior) roles – in Sydney? I just want to try and work out what would be a very comfortable salary, enough to rent a nice apartment, take nice hols etc…?

A: Think of a figure and triple it.

Sydney is very expensive. 100K minimum to survive

Q: salaries in investment banking in dubai?
What are the salaries in Investment banking and private equity analyst in dubai?

A: I cannot tell you the exact number but vis-a-vis the US its going to be lower because there’s a low (10%) tax rate in Dubai.

Q: Bulge Bracket vs Boutique investment banks comparable base salary?
Do analyst at bulge brackets & boutique investments make roughly the same base pay (50k-55k)? I know bulge brackets definitely give out bigger bonuses because they have more deals and bigger portion of the market share, but are the base pays of the two pretty comparable?

A: Boutique may pay a shade more but nothing that is that much more.

Q: What is better – a financial or social return on investment?
If you had some money to invest, and you knew a way to invest it in a local environmental or social community project, rather than a conventional investment, would you do that – even if it meant your money would be at more risk and would not produce a high financial return, but it would develop local projects and you would be able to see the good work your money was doing – and hopefully get a small level of interest?

A: What goes around, comes around.

I would invest for the social return.

Actually seeing the people earning the money is a greater satisfaction. AND, who knows what financial return would be gained, keeping the investment closer to home? In fact, it very frequently happens.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

Q: How does social media help in measuring the return of investment of a company?
With social media being a prominent mode to gain popularity, companies streamline their efforts to build an entire presence through twitter, facebook & other popular social media outlets.
Talking about ROI, it is indispensable to form parameters before measuring the profits for a company.
Hence, business and marketing professionals who embark on the journey of social media should define what they want to achieve from using social media outlets

A: Investment in social media efforts CAN be measured and should be tracked with a beginning baseline and an end goal in mind. Mashable has a great article about social media ROI that includes an informative and entertaining slideshow by Olivier Blanchard. (http://mashable.com/2009/10/27/social-media-roi/ )

Here’s the overview:
A business that wants to track their ROI from social media should start with a baseline of your company’s current growth, website visitors, online transactions, telephone inquiries, etc. If you don’t have this information, start tracking it.

Next, create an activity timeline that tracks all new social media projects: blog launches, new Twitter campaigns, press releases, etc.,

By stacking these timelines on top of one another, your company can create a picture of which efforts are working, and which ones aren’t. Over several months, you can graph your progress and watch for correlations between events, such as certain blog articles equaling more customer calls, or positive online mentions and a jump in site visitors.

Keep in mind, though, that another part of a good social media campaign and tracking ROI is having a goal in mind when you start so you know where you want to be. Your goal could be monetary return (more sales), or non-monetary (brand awareness, increase in social media mentions). It’s not too late to start tracking your progress so your business will know how your social media efforts are affecting your company.

-natalie, Red Humpy Design

http://www.RedHumpy.com/blog

Q: Has anyone else calculated the return on Social Security after they received a projected benefit statement?
I figure that I will have to live to 104 years old, just to get back the principal. This does not include the potential simple interest that I could have received on CD rates.

Is Social Security a good investment?

A: The whole purpose of the healthcare reform was to give the government the power to make sure you don’t live to 104.

Q: What’s the average return on ones Social Security payments?
In that if one contributed say an X amount of dollars into Social security over 40 years of working how quickly would I (considering I received the average SS monthly payment, whatever that number is) recoup my initial investment and what type of a total return would I receive over the life of my SS checks? Would I recognize 2X my money? 10X? 30X?

A: Every person is different and your return can range from zero to jackpot.

On average, a dollar paid in benefits represents 15 cents, employee tax, 15 cents employer tax and 70 cents interest earned on US bonds that Social Security invests in.

Q: Does America get a bigger return on investment by fighting in foreign wars, or by the wasteful social programs?

A: Its necessary to care for those who need it. It isn’t necessary to create an entire class of people dependent on the Nanny State for their existance.

Q: Is social security a good investment? Put in $1,000 and get $750 in return.?
How can I retire on this?

A: No its a losing proposition, and since we borrowed it in to insolvency it is a ponzy scheme

Q: What is the best way to tack results with social media marketing?
How does a business owner track their results? Are there tools or software that can show true return on investment numbers to meashure their social media? Example: Google Analytics is one great tool to identify online traffic by impeding a code within your website or blog. What other tools are on the market?

A: I use Google Analytics as a baseline approach. It gives you a lot of information. The other one I like is Quantcast.com. It gives me all sorts of weird information, such as 9% of my visitors are African American. How they arrive at that number I have no idea.

A better answer to your question is here though:

http://mashable.com/2009/04/19/social-media-analytics/

The basic answer is to Optimize your existing analytics software using plugins or built in tools.

Q: Would you be willing to forefeit your Social Security “Benefits” if they would quit taxing you for it?
A decent size portion of my salary goes towards Social Security. Last year on my deferred compensation retirement plan, I got a 35% return on investment, with no major planning.

I would be willing to just cut my losses, and quit paying into SS and invest myself for my retirement. What do you think?

A: I would love to do that. I could take that money (about $500 a month in my case) and invest it as I see fit. I’m pretty confident that by the time I retired I would have a much larger nest egg than anything the feds would ever be able to give.

Q: How much money would you have if you invested a few hundred a month for 40 years?
It’s safe to assume everyone would be millionaires upon retirement if they invested monthly. Think of all the money we are missing out on because we are forced to give it to Social Security for a negative return on investment. Wouldn’t you like to leave millions for your kids?

A: It depends on what you invested in.

Houses a few years ago wouldn’t have worked out.

GM. Chrysler?

Q: Social Security question. Should we invest it or keep it in the general fund?
Today all social security money goes into the US General Fund and our politicians spend it on EARMARKS and other CRAP we do not need. So the question becomes, do we invest the money and save it or do we allow our politicians to continue to write IOU’s with a 0% return on investment.

A: Invest. Social Security is running out. It will not be there when I retire. I don’t like the idea of the gov stealing money for anything other than its original purpose.

Q: Social Security Benefit calculation problem,need help~?
-Assume Tom’s base salary is $90000 per year.

-He is 28 now and plan on working until the end of his 65th year.

-The current withholding rate for Social Security is 6.2% for the employee, and the current withholding rate for the employer match for Social Security is 6.2%.

-Assume that the Social Security Administration can make an annual return of 2 percent of Tom’s account.

-Assume that the stock market rate of return is 11 percent.

-Assume that the 65 the maximum payment Tom can receive from Social Security is $1800 per month.

Please answer the following:

1.What is the future value of all of Tom’s contributions using the 2% rate of return? What does it look like with the 11% return?

2.Assume that Tom live until he is 80,what is the total value (constant dollars) that he will get paid out of Social Security?Compared to his contributions,is it a good investment?

3.Assume that Tom could take his lump sum investment is Social Security at age 65 (both the employee and employer contributions) and invest in Treasury bonds that yield 4.5 percent (paid quarterly).Using just the coupon rate,how much income would this generate for Tom at retirement?

4.Does it make sense to keep the current system or allow people to invest part of there own Social Security?

A: Question interesting!!

Good Luck!!

Q: Social security benefit calculation problem,need help~?
-Assume Tom’s base salary is $90000 per year.

-He is 28 now and plan on working until the end of his 65th year.

-The current withholding rate for Social Security is 6.2% for the employee, and the current withholding rate for the employer match for Social Security is 6.2%.

-Assume that the Social Security Administration can make an annual return of 2 percent of Tom’s account.

-Assume that the stock market rate of return is 11 percent.

-Assume that the 65 the maximum payment Tom can receive from Social Security is $1800 per month.

Please answer the following:

1.What is the future value of all of Tom’s contributions using the 2% rate of return? What does it look like with the 11% return?

2.Assume that Tom live until he is 80,what is the total value (constant dollars) that he will get paid out of Social Security?Compared to his contributions,is it a good investment?

3.Assume that Tom could take his lump sum investment is Social Security at age 65 (both the employee and employer contributions) and invest in Treasury bonds that yield 4.5 percent (paid quarterly).Using just the coupon rate,how much income would this generate for Tom at retirement?

4.Does it make sense to keep the current system or allow people to invest part of there own Social Security?

A: 1, 2, 3. Using fixed rates of return gives completely unrealistic answers. You really need to do a Monte Carlo Simulation. These are incredibly complex calculations. The output of which is not dollar amounts but rather it provides a graph of the odds of a possible results.

4. This is a complex issue. Most important is that few people would save (or if they did, would make poor choices) for their retirement if allowed. The few that did save would then have to pay higher taxes to provide for the basic needs (food, shelter, etc.) of these people. (We are not going to let them starve to death on the streets.) At least with the current system these people contributed something to pool.

Factors that also need to be considered:

If Tom were to die after working just a few years his children and wife would be provided for. This is part of the cost of the current system and needs to be included in any calculation of return.

The rates ( 2%, 4.5%, 11% ) are not long term realistic.

The $1800 monthly payment is self adjusting for inflation.

Congress can (and often has) change the rules and rates at anytime

Q: Is the Social Security a ripoff to the American workers ?
We all know that the government takes our money and when we reach a certain age we get back some of it , but would we not be better off if we could invest some of that money in a private retirement account. All calulations show that americans would be getting between 2 and 3 times what the government now pays, and here is the huge injustice if after 40 years of work and hundred of thousands of dollars paid in, you drop dead on your 60th birthday the government keeps all that money at least if it was your account you could leave that wealth to your heirs the average black male lives to about 62 that means he is contributing to a system without any return on his investment if this is such a good system why is congress exempt from it.

A: I think Social Security is a rip off simply because in only a few years there will be no more money because the Democrats have been raping the coffers for other projects and state headed pork so they can impress voters. The older Americans who have paid in for all of their lives, may be receiving payments now but how long can it last since the money has been spent and little of it has been paid back. That is a sad state of affairs for those who will be eligible in 10 years. Then what about the laborers that are paying in faithfully now? If something is not done and soon, even those people will get nothing back when they retire.

I agree that privatizing medicare is the safest and best idea. The problem is that Bush has been advocating this for years and the Democrats in congress have always shot the idea down. They want this to be a socialist country and have all the people completely dependent on the government. Come on!! If that doesn’t even work on a minnie scale, then what would happen on a huge scale. The bottom line is that the Dems want to control all of that money and would not be able to if the system were privatized. Why is congress exempt? I think it is because they get a better deal just taking it from us. They can then launder it or put off a plan to pay it back which we know will not happen. Why do you think they want to raise our taxes? They really want us to pay back what they stole even though what they stole was rightfully ours. The richest people in the congress and senate are Democrats like Ted Kennedy, John Kerry, Hilary Clinton, Al Sharpton, (among other billionaires). NONE of these guys pay income taxes because the keep all of their fortune in off shore bank accounts in the Cayman Islands and Switzerland, etc. TAX FREE! We do all of the work and barely etch out a living while supporting the government fat cats who do not even pay their taxes on what they steal and what we pay them as public servants. Then when it comes the time to collect our Social Security checks, there is little or nothing left.

Q: Question for right wingers: is there something wrong with you?
OK, so someone asked whether Social Security was a Ponzi scheme and whether it was sustainable. I patiently explained the difference, and that it was sustainable (I’ve seen the figures, and it’s easily sustainable*). And three people thumbed me down.

So my question is this: is there something wrong with you? I’ve seen this behavior over and over again: someone makes a factual statement, and a right winger who doesn’t know the facts thumbs him down rather than paying attention to what he said.

Here’s part of my answer:

“A Ponzi scheme promises a return on investment, and then pays old investors with money received from new ones to create the illusion of that return.

“Social Security isn’t a vested pension fund, it is a pay-as-you-go annuity. In essence, you pay Grandpa’s benefits, and when you retire, your kids pay yours. Aside from the small amount in the Social Security Trust Fund, the money that goes into Social Security doesn’t earn interest and nobody pretends it does.”

http://answers.yahoo.com/question/index?…

So — if you’re one of those who ignores the facts, why?

*According to the 2009 Trustees’ report, “Social Security could be brought into actuarial balance over the next 75 years with changes equivalent to an immediate 16 percent increase in the payroll tax (from a rate of 12.4 percent to 14.4 percent) or an immediate reduction in benefits of 13 percent or some combination of the two.”

http://www.ssa.gov/OACT/TRSUM/index.html

So not only is Social Security sustainable over the next 75 years, real economic growth will easily outstrip a tax increase that’s equal to only a year or two of average economic growth.
Tarheel, to answer your question (since you don’t have an email option), I was being tongue-in-cheek. Of course that person is allowed to say whatever they want, I’m not Yahoo Answers and even if I had the power I wouldn’t censor what they say.
The OMB report is no different in essence than the report of the SS trustees, in fact, the SS trustees are a bit harsher (the projections depend on assumptions, e.g., how quickly the economy will grow). So the same remedies mentioned by the Trustees should keep Social Security solvent under OMB’s assumptions as well. Such remedies have been used many times in the history of Social Security to account for people living longer, the baby boom, recessions like this one, etc.

A: There is a reason why people thumb you down when you present the facts.

You see, people on the far right and the far left do not use logic in their arguments. This is how it works.

People start with an assumption. This is usually what they have been told, or something that they believe. This could be something like, Obama is a communist. After they cement this belief, they then look for any facts to support this belief. If they cannot find any real facts, they look for people who have the same opinion and pass it off as popular fact, and they twist around the truth to fit into their perceived belief. For evidence of this, just look at how many people still believe that Saddam Hussein had something to do with 9/11.

Logical people start with the facts first, then draw a logical conclusion, like you have done with your social security argument.

Illogical people start with a conclusion first, like Social Security is bad, and then look for facts to back up their claim. When facts contradict the truth, they label the truth as having a liberal bias or something like that.

I find that many on the right do this. They look at their beliefs, then they look for facts to back this up. It is what Limbaugh and Hannity are very good at, and they cater to a large ignorant audience who believes their lies.

If the news would only report on the facts, without any opinion programs like Beck or O’Reily, then Americans would be much better informed. Of course, then the Conservatives would still say that the news has a liberal bias because the facts do not back up their beliefs. Just look at evolution. Conservatives still think that science has a liberal bias.

Q: Why do so many people believe the right wing lie that Social Security is a Ponzi scheme?
A Ponzi scheme is a pyramid scheme in which people are promised a high return on their investment, but instead are paid with the money that comes in from new investors. Because it relies on an ever-increasing pool of investors, it collapses when there are no longer enough new investors to pay off the old ones. Social Security is not an investment scheme — it is a pay as you go insurance plan. It promises no interest. It’s just young people paying for their parents’ retirement, and then their kids paying for theirs. And it will keep on going forever, as long as the proper actuarial adjustments are made to account for changing demographics — mostly people living longer than they used to, but also changes in birth rate, etc.
I give up. No matter how often you explain it, most of the right wingers here aren’t bright enough to understand why Social Security isn’t a Ponzi scheme. One can only do so much.

A: it is not a pay as you insurance plan first off. Professionally I can tell you it is one GIANT annuity. Life insurance is an insurance plan. In no way shape or form is it in an investment though. I agree with you. I also agree that if the proper adjustments are made then yes, it will last forever. My father who is in his sixties was told in high school that s.s. would not be there when he retires, that it would be all dried up.

The charm of history and its enigmatic lesson consist in the fact that, from age to age, nothing changes and yet everything is completely different.

Q: Your perfect wealth management and investment firm?
What will be your perfect wealth management and investment firm? What do you find in firms out there that you wish you could change (realistically)?

Thanks.

A: Goldman Sachs comes pretty close, it’s the envy of all, either didn’t get involved too heavy in sub-prime or more likely figured out a way to contain it.

The one thing I would change is if a firm lowers guidance on a company, that company can stop communicating with them. This can cause more leniency in ratings not making it forward looking as it should be, many times the the stock prices have already depreciated and it’s already a forgone conclusion that they will lower them, but by then the company doesn’t care because it’s already done.

The other thing I would change is I once saw out there a firm that opened itself up to any possible investment around the world. Jim Cramer says there’s always a bull market somewhere….but he’s predominantly talking US stocks. This firm targetted not only the world-wide stocks/funds, but futures, currencies, fine art, real estate, hedge-fund investements…..

Q: Difference between technology needs for Wealth Management vs Investment Banking?

A: Technology needs is a very odd topic for these two subjects however, investment banking is more in-depth and the transactions are much more sophisticated. They need more advanced trading platforms and such. Wealth management can be done with a single computer.

Q: Hi what does Project Management of Private Wealth Management Dept in Investment Banking do?
I looked at the description but it does not reveal much. It pretty much says “on- time delivery, and execution” of strategy. I would like to know what kind of “projects” could be in this particular dept, and also, what exactly or what kind of the strategy in what directions of they are talking about.

Anyone has an idea? Thank you very much for sharing.

A: A manger of a project which manages the private wealth of people

Q: Has anyone used Zacks Investment Management or Zacks Wealth Management?
If anyone has used Zacks, have you been happy with your results? Anything to look out for?

A: No I haven’t heard of this firm, but you can certainly check out this brokerage firm at NASD.com. All broker/dealers are registered with NASD, and if there were any complaints against the company, you should be able to find the information there. Try http://www.nasd.com/InvestorInformation/InvestorProtection/ChecktheBackgroundofYourInvestmentProfessional/index.htm

Q: What do investment bankers who specialize in wealth management do?

A: They provide financial/investment advice, accounting/tax services, legal and estate planning all in one for high net worth individuals. All aspects of their finances.

Q: This question is to do with job hunting finance, hopefully in investment management or wealth management?
Hi Everybody,

I didn’t know where to ask this question so I thought this would be a good start.
Ive just recently finished my honours degree in business and and would like to get into the investment management industry and don’t really know where to begin. I graduated in June and thought I should take a year out but after a few months really felt like I wanted to get started with my career (and also money situation!). I do have a slight problem with getting into the industry because most graduate companies look for people with 2.i and I just missed out on that getting a 2.2. I also didn’t do a-levels because I followed a dream trying to become professional at golf and completed a National diploma in sport and then the higher national diploma when then gave me enough credits to get to onto the third year of a business degree at Surrey university.

Investment was always something I kept in mind when completing my diplomas and degree. I have approached companies such as JP Morgan, UBS, Bank of America and Smith & Williamson but to no avail. I feel that the main reason I don’t get very far is through the background I have in sports. Ive been to a couple of meetings with companies and also recently joined a traders and investors club started my IMC and CeFA course. I should hopefully pass them in the next few months. I did want to go onto the CFA but the cost is high and I still need to get some experience because I don’t have any in the industry. With the industry being very competitive and the economic climate where it is at the present time many companies aren’t willing to take on trainee’s without experience.

Please can someone help me or any advice would be much appreciated

Thank you

A: Sports is highly valued in the City as it indicates a personality type that they like. It is unfortunate that you missed your 2.1.

To be honest, one year of a Business degree isn’t going to exactly blow them away even with a 2.1.

I suggest you join a Chartered Accounting firm and do the ACCA exams. You need 300 UCAS points for this. That will make you a much more attractive hire once you qualify as you will really be able to analyse investments.

It goes without saying that you should not tell them you plan to leg it the moment you qualify as they won’t take you on

Q: what is the difference between investment management, asset management and wealth management?

A: nothing… the terms are mostly interchangable… some firms will use them to describe slight differences in the scope of allowable activites in an account and the fees charged… but in general the differences are inconsistant.

Q: what is the difference between the terms Wealth Management and Investment Management?

A: In terms of job functions, PWM (Private Wealth Management) generally refers to the guys that develop relationships and attempt to sell their company’s services (an example of a PWM would be a financial adviser for American Express). Investment Management, on the other hand, typically applies more to the guys actually picking the investments. An example of an Investment Management firm would be SAC Capital hedge fund.

Q: Is a Wealth Management Banker the same as an Investment Banker?
If not, what is the difference?

A: No Brownie, they are different. A WMB is a banker who is allocated to high net-worth individuals. This varies from country to country, but here in Australia High Net Worth is generally regarded as someone who has over $1 million in disposable assets (but excluding the main residence). Of course some institutions may only kick in at $2 million or higher.

An Investment Banker, while they may work with HNW clients, basically looks after a far wider range of investments and ensures that high rates of return are achieved.

Q: what is diffece between wealth management and investment banking?

A: Wealth Management: Managing and making profit which already exists.

Investment Banking: Advising/leading Customers to Invest in a proper way and guiding them to make money apart from your commission.

Q: Wealth Management firm umbrella?
When my friend tried to explain to me how a wealth management and investment firm functioned, he drew me an umbrella to explain the personnel involved. Does anybody know what I’m talking about?
can u plz expand

A: I do, under one umbrella, you can invest money, while planning for you future and planning a wealth transfer, and setting up a trust, will etc.

Most finanical firms are doing this these days

Q: portfolio management in investment banking?
I have an interview with wealth management group at an investment group. I’m just curious to have some insight into their daily operations. Like what kind of computer applications they use for portfolio management. what kind of information those applications have.
If anybody working in that area could give us some info that would be great

A: the position description is still a little vague.

I built an application in college that was essentially CRM for stockbrokers. We pulled data out of a then-legacy Tiger system and into our tool.

this was married up with feeds from the market, allowing us to assign current value to a portfolio.

Q: How many terms can be used to describe the same thing?
I am so confused with the intermingling of the following terms. I am sure there are more terms out there to describe the same thing. I’d appreciate if someone can thoroughly explain the differences (if there are any) among these terms or post a web link that does.

Investment Management
Investment Counseling
Investment Advisory
Wealth Management
Financial Planning

Thanks!

A: I regret that I can not begin to explain. Financial planners are generally paid a fixed fee to help a person plan his/her finances. The others might very well fall under the sub-heading of salesmen.

Q: Do the financial planning of Private Asset Management companies reliable?
I have to make an investment of around INR 10,00,000 per annum. I had been contacted by more than 10 wealth management companies, but I am confused what to do..? I already have a lot of investments in Mutual funds and stock market, they are giving me a PMS, any idea what this is?

A: PMS is portfolio management service. The manager uses your money to his whim…most of them show losses..that’s another story.if at all you book profits, then 20% goes to them. it’s a win-win situation for the PMS and reverse for you.

stick to mutual funds.

Q: Looking for best mutual fund software / asset management software / investment tracking sofware in India?
Looking for best financial software for tracking wealth in India.

A: I would suggest you Profison from Precision Technicals.

I have used this software. It has good facilities to track assets. But more importantly it also gives out top stocks to invest in along with stop loss, target price and time required to reach target. You can expect to make 40 percent profits on an average per year. Here is the link to view its details http://www.invest-in-shares-in-9minute.com/shares-prices.html.

They also teach a investment strategy, which is very useful to earn great profits in the share market. You can find more about it in the following links
http://www.invest-in-shares-in-9minute.com

http://www.invest-in-shares-in-9minute.com/shares-invest.html

Q: If the economy is doing so great then why are?
More Americans fall behind on debts
The rate of late payments, including on home equity loans, is the highest since 2001, a bankers’ group says.

http://www.latimes.com/business/la-fi-debt4jul04,1,5856807.story?coll=la-headlines-business&ctrack=1&cset=true

I understand that corporate profits are great and CEO’s are doing great. But corporate earnings are starting to decelerate
and the dollar is tanking. Yet the economy is the best we have had in our history tanks to the Bushmans tax cuts. Maybe it was people taking money out of their houses afterall.

A: Speak for yourself, I’m doing great. My income is up, my taxes are down.

I have my eye on another investment property. Things are looking up.

Q: Essentially, I am looking for significant yet sensible approaches/areas for business tax deductions.?
Tax deductions generally come when earnings are reinvested, back into the businesses. Based on projections, the year should end in a 225K to 275K net profit (this incorporates costs + a maximum IRA). W/ tax-code section-179 in play, a business can deduct ~100K w/in a single tax/yr rather than via the typically longer, multi-year depreciation process. New equipment purchases should absorb ~ 100K; this in turn will allow the business to act on the benefits of section-179. Efficiently utilizing the remaining ~200K is the challenge. Developing & exercising viable & legitimate investment/deduction opportunities is in a sense the goal. Most ideally, I had hoped that the additional funds could serve as a business investment in the form of a business property down-payment (i.e., for a new corporate office). A balloon down payment, to my understanding, however, can not be, as in section-179, taken as a deduction entirely w/in the same year. I am requesting feedback on the topic, and I hope that those with stronger backgrounds/experience will shed light on my self and the group. Clever (above-board) strategies that promote tax deductions are certainly welcome.

A: Assuming your are 100% owner, you should not be limiting yourself to an IRA if you have annual profits of greater than $200k. Talk to your accountant immediately to find out your options regarding implementing a 401k plan with profit sharing or maybe even a defined benefit plan if you employ yourself and maybe just a few others. Under a good plan, you should be able to put away at least mulitple times the $5,000 IRA limit.

How much were your new asset additions? I would suggest calculating your tax depreciation (even with sec. 179, you get MACRS on the remaining depreciable basis) as this could be another large hit.

A purchase of a new building would give you additional depreciation, but not any write-off expense.

The most practical business advice would be if you have $200k in profit and are looking to spend, you must have the $200k in cash lying around. Rather than looking for ways to spend it to save a few dollars in taxes, look for ways in your business to reduce future costs. Often times I see company’s blowing money to save tax when they could use the cash to pay down debt and save money on interest. If you don’t have debt, but have the extra cash, you are probably in cash cow status now which is why the retirement options are your best bet to defer tax.

Additional note- with regards to closely held flow through entities (which I’m assuming this is), retirement contributions have a lot to do with business profits as while putting money aside money for shareholders, and eligible employees, you are reducing your tax liability. I assume based upon your comments this is what you meant when you mentioned maxing out IRA.

Q: Why don’t liberals understand ?
Why don’t liberals understand the fallacy of their ” big corporations should be taxed more ” ideology which causes the following detrimental effects upon America ?

1) Higher Corporate Tax Rates drive international U.S. corporations overseas where they take AMERICAN JOBS with them

2) Higher Corporate Tax Rates translates into LESS earnings which translates into paying LESS taxes and firing MORE workers ( Is it better to pay 15 % corporate taxes on earnings of 10 million dollars or 12 % corporate taxes on earnings of 50 million dollars ? )

3) Higher corporate tax rates translates into HIGHER prices for consumer goods and services which translates into MORE inflation + a DOWN economy which translates into LESS goods and services bring bought & produced which translates into MORE corporate cutbacks which translates into MORE jobs lost

4) Higher corporate tax rates translates into corporations selling LESS goods and services at HIGHER prices which translates into HIGHER operating costs which translates into corporations experiencing MORE economic problems which translates into an OBAMA BAILOUT WITH GOVERNMENT MONEY

Why can’t liberals understand that healthy & strong corporations means a healthy & strong America ?

Why does Obama want to reward corporations that fail and punish corporations that succeed ?

Toyota, for example, has received tax incentives to build plants in various states thus creating more jobs for workers in the state so…..why doesn’t Obama provide a similar Federal Tax Incentive for Corporations that expand their production thus creating new jobs ?

A: You forgot to mention that higher corporate tax also eats in corporate profits, thus diminishing returns on investment in 401(k) plans and and also drives up health insurance premiums, because insurance companies invest their capital into corporate stocks too.

Q: Why do people constantly quote oil companies profits incorrectly?
Ok… so with the debates going and the concern on oil dependence I’ve seen where people have used oil company profits stating that they have made these HUGE HUGE profit gains.

Well I did a little investigating tonight because I like to get my hands dirty . I think we can all agree that companies work for a profit of some kind (excluding non-profit). So what would we believe to be a reasonable profit %. 30%…. 20%… 15%… 10%… 5%.. 1%?

Starting small lets say we get 20% profit. That means that we get $20 for every $100 of product sold correct? Then $200 for every $1000 and so forth and so on.

So I went to Chevron’s corporate web site and pulled up their financial annual report for 2007 and checked out their Net Income for 2007, 2006, and 2005. Net Income for those that do not know is what is left after paying all expenses/taxes from their Revenue.

From 2005 to 2006 they made a 21.5% gain. So every $100 sold they got $21.50
From 2006 to 2007 they made a 9% gain. So every $100 sold they got $9.00

http://www.chevron.com/annualreport/2007/financials/consolidatedfinancialstatements/consolidatedstatementincome.aspx

Now… Looking at the quarterly results of this year.
I compared the 6 month (ending June 30th) Net Income totals for 2007 to 2008.
Net Income in 2007 for 2 quarters was 10,975 (in millions)
Net Income in 2008 for 2 quarters was 11,143 (in millions)

http://media.corporate-ir.net/media_files/irol/13/130102/earnings/Q208_release_080108.pdf

So by simple math to figure out the growth in percent…. 11143/10975 = 1.1038. That is only a 10.4% growth?!?

By now I’m thinking I did all my math COMPLETELY wrong. So I dug out my accounting book and did a little more research. I found that I wasn’t wrong in my understanding. So I wanted to find out where people were flipping out and I think I found it.

People do not understand “Revenue.” Revenue is not profits. Chevron shows a 43% growth in Revenue for the 2 quarters in 2007 to 2008. If these were profits I would probably complain myself. But these are not profits.

Now I’m all up for being wrong so if I am feel free to tell me. But do supply your own reasoning behind it. I think people are taking a few people’s statements WAY out of context and causing a frenzy over what I would consider a reasonable growth percentage.

Do you feel that 10% growth is too much?
Thanks Libral and jt… Hmmm now back to my finance book to see about cash flows
Well Boss… this “boot-licker” is paying the same $1 at the pump you are. And yes.. my hands are still digging.

I realize the first calculation is kinda of crude but honestly that is a measurement MOST people can do themselves and all things considering I would only expect this to fluctuate 5%. I could be wrong though.
Sorry Libe…. Asskicker. I couldn’t go back and correct it . Thanks for the input… I’ll dig into a little more but I think Cash Flows are only available at the end of the fiscal year correct? No quarterly cash flows?

And Aka…. LMAO. See… that is what I did to. Just wanted to take a quick peek and ended up to my elbows in this crap now…

Great answers btw people!
Ok.. I’m not giving up but just don’t have the time to keep digging atm. No use to extend the expiration of the post…

Thanks to AssKicker and Bandit for the good posts and supporting statements
and
Aka…. because you “couldn’t resist!”

A: If you’re going to read the 10-K’s, you might as well learn how to read a statement of cash flows.

The income statement tells only about operations, and the net profit includes many expenses that aren’t really expenditures of money, like depreciation and amortization, write downs of inventory and assets, and write downs of goodwill.

(For most companies, income statements never include the day-to-day changes in investment values, such as oil futures. Those are found on an obscure statement usually called, “other comprehensive income” or “changes in shareholder’s equity”.)

So you have to look at the statement of cash flows, as well, because it removes the fake stuff and adds all of the balance sheet transactions. The statement of cash flows is the ONLY PLACE where you’re going to find out how much money oil companies are investing in future operations.

They represent the cash trading hands, not the artificial picture of operations.

(They guy below me is an idiot. Companies are required to offer only one measure of profit, and it must be formatted in the manner of a profit and loss statement. Boss is also an idiot. Income statements are ALWAYS consolidated, meaning all subsidiaries are already included.)

*****************
And stop calling a liberal. It’s frightening.

Finance books won’t help you. You need an accounting book. But if you are daring, go back to that 10-K and just look at it, you might be able to figure it out intuitively.

They are always divided into three sections:

Cash used in operations (the primary business–oil sales)
Cash used in investing (building new businesses, buying stocks, etc.)
Cash used in financing (selling of company stock, borrowing of money)

The first section is a reconciling section. It will seem backwards if you try to figure out the negatives and positives because it’s function is to BACK OUT the fake numbers on the income statement and return them to real cash-basis amounts. That’s why depreciation is added back in. Money wasn’t spent on it, so it should not have been deducted.

The last two sections are not backwards. They show where money was spent and where it was earned.

(The bottom lines don’t do anything but reconcile the cash flows statement to the cash balance of the company.)

*****************
Bandit is right. Some years there are large write downs or restatements that can shift a company’s profit margin around.

Q: Do people realize that investment income is taxed twice?
We all understand that dividends come from post-tax earnings of a corporation. But capital gains are also taxed twice.

Long term capital gains are taxed at 15%.

But that 15% comes on top of the corporate level tax.

Stocks trade at a multiple of AFTER-TAX earnings. They rise or fall based on perceived earnings growth. Thus if with new information the market determines that a company’s forward pre-tax earnings will be $2/share more than it previously thought, the stock will rise – but at a multiple of $1.40/share, not $2/share – - thus the corporate level taxes DO reduce your gain – - – your gain is taxed a SECOND time at 15% – - – or at ordinary rates if you held the asset for less than a year (i.e., if you bought something that went up in less time than a year – i.e., you’re punished for knowing what you’re doing).

So, the corporation is taxed at 35% and THEN you’re taxed at 15% – - – or 39%. So investment income IS taxed at a higher rate than “earned” income.

A: Yes, I realize that.

Perhaps corporate income tax should be eliminated and just tax money that individuals receive at the same rate, whether it be from salary, dividends, or capital gains.

Q: i truly need help with this question in order to understand how to work others like it please help me.it?
A corporate CEO reviews the earnings of three divisions over the last eighteen months. Each division reports its earnings quarterly. Based on the earnings below, is there sufficient evidence to conclude, at the 99% level of confidence, that one of these divisions is more profitable than the others?
Division I Division II Division III
45 4 18
17 40 25
32 3 22
53 16 12
10 39 26
60 22 1

· State the null and alternate hypotheses
· Calculate the sums of squares SS(total), SS(factor), and SS(error)
· Calculate the degrees of freedom df(total), df(factor), and df(error)
· Calculate the mean square for factor, and the mean square for error
· Calculate the F-statistic
· Determine the critical value(s)
· State your decision: Should the null hypothesis be rejected?

A: ITS OVER 9000!

Q: Investment banking services?
The Motley Fool has recently released a report on the income and revenues of the investment bank JP Morgan. They break the earnings down into separate categories within the company, which I am trying to understand if someone can please help. Here are the categories I am trying to understand the subtle differences between:
Retail Financial Services
Commercial Banking
Treasury and Securities Services
Asset Management
Corporate/Private Equity

Some of these categories look very similar to me. Thanks very much for any help.

http://www.fool.com/investing/general/2009/10/14/inside-jpmorgan-chases-earnings.aspx?source=ihpsitota0000001

A: retail financial services – when an investment advisor deals with an individual investor one to one and takes orders from the client. Revenue comes from the commissions.

commercial banking – when the bank gives loans to a company and revenue comes from the interest spread.

treasury and securities – this sounds like bond deals, I am not too sure. It could be the prop trading of the bank itself.

Asset Management – when portfolio managers manage funds either in a pool (mutual funds) or for individual or institutional investors. This is discretionary, meaning manager decides on what he/she buys. They charge a certain management fee.

Corporate/Private Equity – Helping companies issuing debt or equity and selling them to individual and/or institutional investors. Percentage commission.

Hope it helps

Q: Why do people think that capital gains are taxed less than ordinary income?
The short term capital gains tax rate IS the ordinary income tax rate.

The long term capital gains tax rate is 15% – but that’s the direct tax.

Most capital gains tax revenue comes from the sale of stock in a publicly traded corporation. C-corporations are taxed on their income, and the stocks trade at multiples of the corporation’s after tax income. Thus the increase in forward earnings that is the basis for movement in stock price is net of tax, thus the gain is reduced by virtue of the corporate tax. Your stock is a share of the company’s income stream which is reduced by the income tax, thus the value of your share is reduced pro rata by the income tax.

You buy stock in company X thinking they’re going to win a contract resulting in pre-tax forward earnings rising by 10 cents. The stock trades at a 10X earnings multiple. It turns out you were right, and the stock price rises – but by 65 cents per share, not $1 per share, because that 10 cents per share increase in earnings will be taxed at 35%. Thus before the capital gains tax is even applied, your gain is reduced by 35 cents per share – 35% – by virtue of the corporate level tax. THEN you’re taxed on the remaining 65 cent gain – either at 15% or your ordinary income tax rate.

Thus, capital gains are, in fact, taxed more than ordinary income.

Why do people not understand this?

I guess I don’t understand why investment income is considered “passive” or not “earned” – not all assets go up in value. It is very difficult to consistently make money in the market – it takes a lot of research. It’s more of a mental challenge than my job and I’ve got a more complicated job than most people.

A: Then why tax them even more?

Q: Career as a Paramedic?
I am currently working as in the corporate world here in Sydney, being honest, I’m now not motivated by it, I don’t trust the people in the corporate world and it’s no secret that everyone is out for themselves.

For many years now I have been thinking about going in to a career as a Paramedic. I have a massive desire to do something worth while for society and have done for a while.

I’m 32 and need to get in to a career where I feel I have made a difference to someone’s life.

Due to the ‘Credit Crunch’ I have started to make a bit of headway in to my new career. I have had a chat with NSW Ambulance and they answered a few questions but sat very much on the fence when it came to financial expectations and what to really expect from the service.

I wonder if there are any students or Trainee Paramedics or experinced who can give me an insight to what to expect in the emergency service.

I am planning on joining the service and training whilst in service.

My questions are:

1 ) The salary is $45,000 aud + sa per year for the first year. Is there any over time available, if so how much and what would be my expected earnings in my first year, then 2nd and 3rd year? (Money is not my motivation BTW just must know for budget reasons)

2) Is there much in the way of support and counseling after witnessing ugly accidents and testing situations?

3) The rural posting – is there much of a choice, can you nominate an area?

4) Is there any internal politics involved and is the service a real ‘team environment’?

5) I am British, would there be any discrimination towards me from fellow colleagues or management?

Basically I would I’ve to hear of you’re experiences and any tips on how I can be a successful Paramedic.

I truly believe that I have what it takes for the job and I am sure I would feel very rewarded by the type of work carried out. I also understand that I will be very much challenged by the nature of the work but i truly believe I am capable of make the difference and doing the excellent work these professionals do.

Many thanks

Ben

A: 1) You usually get very high money after a little bit of time, and getting a little bit of exposure in the field of paramedicing. Try somewhere as an EMT or something like that, and if you like the field of being a paramedic then take some more classes and build on the skills.

2) Yes. This is called critical incident debriefing and you would be counselled usually after each and every call that you see that involves incident debriefing.

3) Not usually in your first little while within this field. You normally have to work in some distant areas first, and then you would get selected for some of the areas that are closer to major towns and cities.

4) There is usually a team environment. Like any environment there can be politics, but is something that every company has.

5) I don’t think so. There shouldn’t be any discrimination as long as you can become a good team player.

I think that you would benefit from becoming an EMT first, and then build on the skills that you learn from this, and then you will learn the very basic to the very advanced skills in patient care, and that would make you a tremendous team player within the team environment.

Q: ‘Recovery’ for the Rich Greedy Bankers you can believe in?
http://socialistworker.org/2009/08/13/recovery-is-here-for-wall-street
(Dont click the link Right wingers, it’s sohshuhlizuhm)

HAPPY DAYS are here again for super-bank Goldman Sachs.

Less than a year after bankruptcies took down some of the biggest names on Wall Street, and only months since it received $10 billion in bailout money from the federal government, Goldman is looking like a winner again.

It reported record profits of $3.4 billion for the second quarter of the year, and its executives are looking forward to the return of their mega-bonuses to pre-crisis levels–though CEO Lloyd Blankfein did warn his colleagues to avoid the kind of conspicuous luxury purchases that might pose further public relations hassles.

Goldman isn’t alone. JPMorgan Chase recorded $2.7 billion in profits, a 36 percent increase over the year before. Citigroup, which got around $45 billion in government bailout money, booked $4.3 billion in second-quarter earnings, and one of its top oil traders (translation: speculator who gambled on the direction of the oil market) is owed a cool $100 million in bonuses under his contract.

All this good news from corporate boardrooms is feeding the developing consensus in the mainstream media that the economy is on the rebound, and the Great Recession turned out not to be so bad after all.

Sure, there are a couple fewer big-name firms on Wall Street, a couple dozen fewer banks across the country (eight dozen fewer, to be exact), a couple million homes still in foreclosure. But the same commentators who a few months ago were trying to understand how their sacred free market had driven the world economy into a ditch are seeing economic “green shoots” everywhere.

The latest case in point in early August: The Labor Department’s monthly report showing that the economy lost “only” 247,000 jobs in July, and that the unemployment rate dropped by 0.1 percent. Barack Obama and his administration took to the airwaves to declare that the economy was on the mend–thanks to their policies, of course.

It didn’t take much digging into the statistics to discover that the news wasn’t all that good. The overall unemployment rate fell even as jobs were lost because the number of people who’ve given up actively looking for work–and therefore dropped out of the statistics–was even greater than the decline in employment. But that information was buried beneath the headlines.
Jose, Are you a Parrot?

A: Bankers should be shot.

Q: Do Democrats Not understand how bad Obama is going to be for the stock market?
Has anyone else noticed that everytime Obama takes the lead in the polls the Stock market dips. And in terms of rising taxes. Yeah obama says he will not raise taxes on anyone earning less than $250,000. But Does anyone know how much he plans to raise taxes on on someone earning over $250,000? Do People not realize that every company on the stock exchange makes more than $250,000 a year? Therefore every single one of these companies is going to see an increase in taxes, Which hurts their earnings potential since now a significant portion of the income is not going towards future growth opportuinies or paying dividends but instead just paying taxes? Do people just not see this connection? Do People not see what raising corporate taxes on companies earning more than $250,000 will do to the stock market, as companies have to divert more of their money towards taxes?
Im not saying everything is running perfectly now. But remember taxes are alos at an all time low. Rememeber Corporation in terms are tax pruposes are individual on their own. And Stock Prices are just a reflection based on supple and demand based on future earnings potential. If the earning potential is capped by High Taxes, then sotck prices are going to dip. Its just the facts. Im just trying to figure out how this is going to help our economy.

http://www.usnews.com/blogs/capital-commerce/2008/9/12/whos-better-for-stocks-mccain-or-obama.html?s_cid=rss:capital-commerce:whos-better-for-stocks-mccain-or-obama

My question is not so much hasnt bush done a great job with the economy. Its more along the lines of ISnt obama’s plan going to create more pressure on the market, his tax plan certainly wont help the market.
I dont know whats so hard to understand here. Im not saying anything about bush or mccain, or even obama as a person. Im talking about a specific issue in regards to raising taxes and how is effects the ecconomy, more specifically not even the economu as a whole but the stock market. Stock market does not like when taxes increase. Im just trying to figure out how raising taxes will be better for the economy??

A: No, they don’t, but I do…

Obama Would Ruin Economy With Tax Hike

Monday, September 22, 2008 9:03 AM

By: Dick Morris & Eileen McGann Article Font Size

The Wall Street mess now takes center stage in the presidential race. With company after company biting the dust, can John McCain survive as the representative of the incumbent party?

So far, McCain has focused on a populist criticism of Wall Street and its irresponsibility, firing away at corporate greed and lending practices. But he has to fuse the issues of the economy and taxes to show how Barack Obama’s tax proposals would lead to a catastrophic implosion of the nation’s capital base.

With the top Wall Street houses crashing for a want of capital, how can Obama justify an increase, and perhaps a doubling, of the capital-gains tax?

Obama has already said he might drop his tax hikes if the economy weakens. After noting that it’s pretty sad when your best idea for how to help the economy is to abandon your own proposals, McCain should call on Obama to give up on those new taxes right now.

People will sit on their capital rather than invest it if their gains are to be taxed at twice the current rate. And raising taxes on a troubled economy is akin to bleeding a sick patient — medieval “medicine” that does more to kill than to cure.

McCain needs to force Obama to choose between his leftist commitment to income redistribution and the common-sense point that higher taxes on investors and “the rich” would merely deepen the economic mess.

If Obama refuses to abandon his tax hikes, he’ll be seen as putting his ideology ahead of the nation’s needs. If he does the reverse, he’ll be admitting that his tax program has been a mistake — and, by recanting, show how unsteady his hand would be on the tiller.

Hiking taxes at the outset of a slowdown has always made things worse. McCain need point no further back than the first President George Bush, whose tax increase hit just as the economy was slowing from the Reagan expansion — triggering a recession that let Bill Clinton win the White House.

As the financial failures spread, voters will focus on the bad news and be inclined to hand the White House to the party that’s out of power. But if they focus focus on the cure Obama proposes, the bad economy could work to McCain’s benefit.

© 2008 Dick Morris & Eileen McGann

Q: Do some liberals and conservatives understand that?
Kenyesian economics does not work? Didn’t we learn from Nixon, LBJ, Ford, or Carter? The Nixon, Ford, and Johnson presidencies were all disastrous. LBJ started Vietnam, reversed the Kennedy tax cuts, increased massive spending, and expanded the size of government. Nixon continued the spending and made it reach new heights. He passed several protectionist bills and devalued the dollar and added a 10% import surcharge. Ford, like Johnson, harmed the advancement of free trade. All three had many price controls or regulations, income-tax increases, and purposely inflated the dollar. You could even see it on political buttons that said WIN or “Whip Inflation Now!” These three major presidents brought America an age of recession and bipartisan ignorance… Is that Kenyesian? Yes, i have realized how ssome liberals heresay things, but they really don’t know what they’re saying… How about Carter? Democratic President Carter left us with 10 million unemployed, 12.7% inflation, low GDP, high poverty, gas rationing due to his national energy protectionist programs and his windfall taxes, gas crisis due to gas rationing, and a sinking economy… Does that sound like a success? Many liberals point out that Carter had a tough job thanks to Nixon. They then blame Nixon for being a conservative-which is FALSE. And as for Carter receiving a bad economy, well it was his job to fix it and he made it worse-FACT…

How about Clinton? President Clinton cut government spending, passed the largest capital gains tax cut, pushed NAFTA through, passed wellfare reform, and got rid of the retirement earnings test for Social Security. The only thing he did which was not supply-side or Reaganomics economcis was raise taxes to pay for defcits… Hmmm…. Wow that’s a recent success, too bad hardcore conservatives and liberals will never admit it, even though its a clear contradiction of Liberal policies. Well we must give credit to the Republican congress, lead by Newt Gingrich, which controled the buget and stopped Clinton’s former dream of high spending…

That is more a supply-side president-WHETHER u agree or not.

How about JFK? His policies even show it. Kennedy promised America huge tax cuts and he did deliver on his promise. The Kennedy tax cuts were passed by congress in 1964, shortly after his assassination. President Kennedy cut the highest federal marginal income-tax rate from 91% to 70% and the lowest rate from 20% to 14%. He also cut the highest corporate income-tax rate from 52% to 48%.

Kennedy also pushed for much lower tariffs on trade products with the Trade Expansion Act of 1962. His policies were very close to free trade-which is good. Overall Kennedy was much more of a supply-side economics man, rather than a liberal or Keynesian Economics man…
I see Michael P once again has reinvented history–last time he called Nixon a conservative…

A: I’d love to hear you discuss this with Economics Nobel Prize winner Paul Krugman, who has some pretty strong ideas on the matter and does not agree with you.

Q: Essentially, I am looking for significant yet sensible approaches/areas for business tax deductions.?
Tax deductions generally come when earnings are reinvested, back into the businesses. Based on projections, the year should end in a 225K to 275K net profit (this incorporates costs + a maximum IRA). W/ tax-code section-179 in play, a business can deduct ~100K w/in a single tax/yr rather than via the typically longer, multi-year depreciation process. New equipment purchases should absorb ~ 100K; this in turn will allow the business to act on the benefits of section-179. Efficiently utilizing the remaining ~200K is the challenge. Developing & exercising viable & legitimate investment/deduction opportunities is in a sense the goal. Most ideally, I had hoped that the additional funds could serve as a business investment in the form of a business property down-payment (i.e., for a new corporate office). A balloon down payment, to my understanding, however, can not be, as in section-179, taken as a deduction entirely w/in the same year. I am requesting feedback on the topic, and I hope that those with stronger backgrounds/experience will shed light on my self and the group. Clever (above-board) strategies that promote tax deductions are certainly welcome.

A: “Tax deductions generally come when earnings are reinvested, back into the businesses.” Based upon this statement alone, you have little concept of how business operates. Hire a CPA.

“(this incorporates costs + a maximum IRA)” This only solidifies my point. An IRA has nothing to do with business profits. Hire a CPA.

Q: Who runs The Children’s Investment Fund in the UK?

A: The Children’s Investment Fund (TCI) is a London-based hedge fund. The $7 billion (estimated) hedge fund was launched in January 2004 by money manager Christopher Hohn.[1] Its main headquarters is located in the tax haven Cayman Islands.

TCI derives its name from its annual donation of the equivalent of 0.5% of assets under management to charity. That added up to $18 million in 2004.[2]

The charity is channeled through a foundation called TCI Fund Foundation, run by Hohn’s wife, Jamie Cooper-Hohn, and is one of Great Britain’s biggest charities.[3]

TCI has made a name as an elusive hedge fund (has no website) known for aggressive shareholder activism. TCI has been a major shareholder of the German stock exchange Deutsche Börse where it forced the resignation of the CEO after he refused to abandon his plan to takeover the London Stock Exchange. In 2007, after acquiring 1% of the shares of major Dutch bank ABN AMRO, TCI led an attack demanding the bank split up or sell to the highest bidder to produce shareholder value.[4]

Q: who controls the funds in a nonprofit?
If i am thinking about starting a nonprofit for educational or science R&D related purposes, what should i know about who controls the money, and how it is spent? Is it one person or several making the spending decisions? What are these job titles? What kinds of procedures are used to make decisions and prevent misappropriation? The Children’s Investment Fund, and the Bill and Melinda Gates Foundation are two nonprofits that I am aware of. But I am ignorant with regard to who has legal control of assets of a nonprofit.

A: The board of directors — all volunteers — are fiscally responsible for a nonprofit organization. But past that, nonprofits are different. At some nonprofits, the board sets the budget, makes spending decisions and signs off on all expenditures. At other nonprofits, the chief paid staff person, usually called the executive director, submits a budget for approval to the board, is allowed to spend money up to a certain amount without board approval (but must have written accounts of all financial transactions), and signs off on expenditures, up to a certain amount, by staff members he or she supervises.

Job titles at nonprofits are the same as for profits — marketing director or coordinator, human resources manager, financial manager, receptionist, etc. The positions vary from organization to organization.

If you want to start a nonprofit, you need FIRST to get a very impassioned group of people together who support your idea and will provide some start up funding and serve on the board of directors, you need to get letters of endorsement from existing organizations saying this program is needed, you need to have data that shows your target group is in need whatever service it is that you want to provide and that they are not served otherwise, and you need to have a draft of what your first year’s budget would look like (what expenses you expect to incur, what you expect to pay staff, etc.). And then you would be ready to start paperwork:

Starting a Non-Profit
Checklist- The Things You Must Do to Start a Nonprofit Organization
http://www.ctnonprofits.org/pages/NonProfitResources/StartNonProfit.asp

Starting a Nonprofit Organization – How to Start a Nonprofit http://nonprofit.about.com/od/nonprofitbasics/ht/startingsteps.htm

How to Start a 501c3 Nonprofit Organization

http://www.wikihow.com/Start-a-501c3-Nonprofit-Organization

Q: Is investing in a college fund for your child’s education really the best thing for them?
It is a good investment in your child’s future and you are helping them to avoid college debt but aren’t we actually crippling them but paying their way?

A: No.

It is crippling them if you do not make them earn it.

For example, you save up the money, but don’t give it to them unless they start holding down a job at age 16 and do chores and homework prior to that.

Make sure they are well-rounded adults. Then, let them apply for college, and have them take out the neccesary grants. Make them earn their entire way through college on thier own. Then, when it is over, you can pay their debt. And, if they get into financial trouble (not always their fault) you can help them.

This way, they earn it for themselves, but do not have to start their life off in serious debt.

It teaches them self reliance and responsibility, but also helps them out greatly by rewarding success.

Q: What is best Investment for Children’s?
Hi,

I wanted to invest money on some funds for my son(10 months old) career. Can you suggest me what are the funds suited for me. I am ready to invest 1lach rupees.

Thanks & Regards,
Srinivas

A: Congratulations! not many parents start thinking so early about investing for their children. So you are on the right path.
What you should be ensuring is that you have some bulk funds available every year from the time your son turns 16, till the time he attains 23-24 years of age. To take care of his college and postgraduate education.

The best way to invest for such requirements is to invest your money for the long term in some of the best 5-star rated Mutual Funds. You can spread the proposed 1 lakh between HDFC Prudence (40%) for complete safety, SBI Magnum Contra (20%) for steady returns and Reliance Growth (40%) for high growth. These are perhaps the best funds with excellent long term track records having withstood both bear market lows and prospered from bull market highs. Check them out at http://www.valueresearchonline.com/toprated.asp
Your 1 lakh investment, if you leave it untouched for the next 15 years, can easily grow compounded annually to a princely sum of Rs. 8 lakhs (15% compounding) to over Rs. 15 lakhs (20% compounding).

Most insurance companies cater to requirments like yours by way of Children’s Plans (which are nothing but ULIP Plans) where these companies pay a percentage of the sum assured+Bonus at identified intervals. Parents feel secure also because of the Insurance cover component.

However these plans are not wise investments, because of the high premiums associated. As much as 30% of the premiums go in various costs incl. the agents commission and only 70% of your money gets invested in the Unit linked Insurance Plans or ULIPs.

Your money can be made to work much better by investing in a 5-star rated absolutely safe funds as mentioned above. Returns, which the ULIP plans can never match because of higher costs. And none of the ULIP Plans yet have any track record to match the best of the 5-star rated Mutual Funds. Consider this article to compare Mutual Funds & ULIPs as investment vehicles http://www.valueresearchonline.com/story/h2_storyView.asp?str=7430

The other thing to consider is will this be enough for your childs education 15 years from now. If a professional college education costs Rs.5 lakhs today, with 7% inflation rate, in 15 years that itself would cost almost 14 lakhs! All the more reason that you need your money to work harder for your child in the best possible schemes. My suggestion would be to invest another 1 lakh for your child as soon as you can, to reap similar benefits.

Now, If you are thinking of an insurance cover additionally, go for a Term Plan additionally at a fraction of the cost of the premiums in a child plan. Consider also this excellent article on why Investment & Insurance shouldn’t be mixed.

http://www.personalfn.com/detail.asp?date=6/1/2005&story=1

Good Luck!

Q: What is your opinion of Hammarby IF’s new sponsorship deal with UNICEF ?
Should the United Nations Children’s Fund really be investing in football ? Are their no more children in need of the aid ? or will this investment be countered when additional revenu is brought in due to more public awareness ?
embarressing spelling error, sorry to have erased your answer

A: Interesting question.Hammarby are not the only club to be sponsored by UNICEF.Barcelona are as well.
The good news is that UNICEF do not pay a penny to have their organisation displayed on teamshirts.it is the clubs themselves who pay UNICEF so that they have the right to display the name on their shirts.
Barcelona had not had a shirt sponsorship in their entire history until 2006 when they agreed a deal with UNICEF.

Recently, UNICEF has begun partnerships with world-class athletes and teams, to promote the organisation’s work and to raise funds.

On 7 September 2006, an agreement between UNICEF and the Catalan club FC Barcelona was reached whereby the club would donate 0.7% of its total yearly revenue to the organization for five years. As part of the agreement, FC Barcelona will wear the UNICEF logo on the front of their shirts, which will be the first time a Football Club sponsored an organisation rather than the other way around. In January 2007, UNICEF struck a partnership with Canada’s national tent pegging team. The team was officially re-flagged as “UNICEF Team Canada”, its riders wear UNICEF’s logo in competition, and team members promote and raise funds for UNICEF’s campaign against child labour.

The Swedish club Hammarby followed the Spanish and Canadian lead on 14 April 2007, also raising funds for UNICEF and displaying the UNICEF name on their sportswear.

Q: Someone know a safe investment in these turbulent times? Canadian perspective please.?
I currently have investments in a money market fund but word has it that the U.S. economy is in huge trouble and the bubble could burst in the next 12-18 months. If that happens my current investment is going to tank. It’s only about 9 G’s but it’s the savings for our children’s education. I’m not sure about government bonds or T-bIlls but the feds are in over their heads with the national debt so they too will feel the effects of a struggling economy south of the border. Any advice will be most appreciated, thanks!

A: I don’t think you will find a safer investment than a money market fund. Anyhow, if you really want a safe investment put your money in Canada Savings Bonds. There is virtually no risk of default because savings bonds are guaranteed by the government.
If the government goes broke it doesn’t matter where your money is we are all in trouble.

Q: Is real estate really the the best investment?
For a $100,000 investment money and 8 to10 year time horizon, is it better to buy 2 houses in Houston (each at 20% down) or a S&P index fund is a better alternative?

The gain from the investmnet will be needed for children’s college education after 10 years.

After what happened in the stock market, it makes most people wonder if they can count on the money to grow even in a 8 to10 year period. I know that managing rental investment is no fun but one would make money (at least won’t lose principal) over 8-10 year time horizon.

I know there are tons of books that say real estate is the best investment. But is it really? specially for the middle class.

Are there any other investments (passive) ideas to get 8-10 % annual return over a 10 year period?

A: 8-10% is a difficult compounded return to earn. Real Estate is one of the most overrated investments available. The commonly quoted claims about RE prices never having a losing year are grossly misleading.

1. They have a HUGE survivorship bias in that the houses that don’t sell are not figured into the median price. So, if 5 houses are for sale and only one sells, only that price is used.

2. They do not factor in quality. The typical new home is 25% bigger and has more amenities than a home 20 years ago, yet the prices are compared without adjustment.

3. They do not factor in inflation.

Housing prices have risen sharply over the past decade, but adjusted for inflation and quality, home prices barely moved between the 1890’s and the 1990’s.

People also forget, when bragging on how much they made on a home, improvements, fees, financing, upkeep, property tax, etc.

ssb

Q: California: Can subpoena be recieved in mail claiming that I endrose an adutl child’s investment when I did;t?
I have an estranged adult child in early 30s that has or has claimed to have a hedge fund This kid was once my pride and joy and he is in collections again.not living with me or near me. We are estranged since he has lied a lot.I continually receive threatening collection agency calls – he is in whereabouts unknown but today after a business trip I receive a subpoena claiming I endorsed a hedge fund that someone lost money in and that I invested in it trying to sue me because I had endorsed it which is false & very upsetting! I guess they are going after the upstanding citizen say they are suing me but I have worked so hard with this sociopath…Talk about punch in the gut..My friend says a subpoena has to be served personally & that this is a last ditch collection agency scam to get me to pay as a scared parent Would they just send me this in the mail? Seems really unusual and scary…I am in the state of CA and the subpoena is from L.A.but I am not near there .It is a horror for any parent and they use this..just all con people go for the jugular I suppose. It just seems weird since on TV they always knock on the door.
It is a civil lawsuit. What type of attorney would someone use in this case. It is not from a collection agency, it is not a subpoena but a law suit.. Where would one begin?Thank you for your time.

A: As far as I know a subpoena has to be served, in person, not mailed. The person serving the subpoena has to make sure the right person gets it, otherwise you could just say you never received it. I wouldn’t be surprised if it were a collection agency. If there is a number I’d call it, just in case. Because if it is a collection agency you could then forward the “subpoena” to the attorney generals office…I believe that kind of collection tactic is illegal. If it isn’t it should be.

EDIT: If it is a lawsuit you will need to talk to a lawyer. I’m not sure what kind. Contact the CA State Bar’s Lawyer Referral Services Directory at 1-866-442-2529 (toll free in California) or 415-538-2250 (from outside California) or the telephone book under “Attorneys” for a State Bar-certified lawyer referral service. You may be able to find an attorney who will give you the 1/2 hour free to look at what you have. If not you may still want to pay to have this looked at. May be worth it for your peace of mind, even if it turns out to be nothing

Q: Child Trust fund- can anyone help me ?
I have no idea what the best investment would be for my child trust fund voucher. I have been told that the children’s mutual is my best bet, investing in shares, but I have no idea about shares stake-holding and non stake holding etc can anyone help ( with the idiots guide all in lay-mans terms please) I would like a good return for my child when she reaches 18.

A: Hi Shazza,
Hopefully I can help! CTFs can be quite confusing when you first start looking particularly when deciding between a cash and shares based option. Here are some links I think you might find helpful:
http://www.childtrustfund.gov.uk/

http://www.thisismoney.co.uk/child-trust-fund

Btw I work for The Children’s Mutual and we’ve produced a 5 minute animated guide to CTFs too:
http://www.thechildrensmutual.co.uk/mel
Wendy

Q: We are ready to invest for our children’s future?
Our children are 7 months old and 3 yrs old. We are looking to invest for their future. Now I am assuming that my children will be attending college but you never know so I don’t know if a college fund would be appropriate in the event that one of them decide not to attend college.
Our budget is around $100 for now and increase yearly as cost of living goes up and my husband’s income goes up (hopefully!). I also will start working in a few years so then we will most likely be able to invest nearly $500 monthly for the both of them.

Any suggestions as to what to invest in. They both have a life insurance policy btw. In your suggestions can you please explain the return on the investment, the minimums required to contridute yearly, what options are available in the investment, etc.

Thanks.

A: First of all…wow that is a lot of info requested for one question…but I will give it a shot. I would like to say congratulations on starting early for your kids and its great they have life isurance already there are many things that can happen during childhood that can make a child un-insurable so its a nice start when they have at least some life insurance in place. I think you have a good point about 529 plans. While tax deferred growth and tax free withdrawals are great, 529 plans do put some extra restrictions on the money and its uses. Right now capital gains taxes max out at 15% so the question is are you willing to accept those restrictions to save you the 15% in the long run. Of course it works out to more than just 15% net because you will most likely have to pay taxes along the way and this will affect the amount in the account that can take advantage of compouding interest. A good solution might be to open one 529 account and put it in the older childs name. If he or she decides not to go to school then you can simply change the beneficiary on the account to the younger child. If they both go to school then you can spend half the account for the first and half for the second (that would be a little tricky but might not be a bad solution.)
Another option would be to open UTMA accounts for them. Basically with this type of account you would invest on the child’s behalf, but when they reach the age of majority (18 in almost every state) the account becomes theirs. The obvious downside to this is that you are handing an 18 year old a large sum of money and you suddenly have no control over it. I remember how I was with money at that age.
With $100/month to work with I would recomend the Ivy Asset Strategy fund. You could start it with $50 per account and $50/month automatic draft from your checking (without the automatic draft the minimum to open is $500). This is a great fund if you can’t purchase multiple funds to diversify your portfolio, because the fund managers can invest in any market or asset class they see as a good oportunity to get a good return. It does have a front end load, but its 5 year load adjusted average return is 12.66%. I own this fund and have been extremely happy with it. For small accounts it allows you to have one fund that can move between domestic, international, stocks, bonds, commodities, or anything else without you having to change your fund investment. As yor account balance and your monthly contributions grow then you can look into buying more funds and creating a diversified portfolio, but in the meantime this is a great place to start.
Remember though, no matter what you chose the important thing is that you are starting early and giving your children the benefit of compounding interst. You are doing a wonderful thing for your children and should be commended.

Q: At the time of the birth of a child, a parent wants to begin a college fund that will grow to $41000 by the ch?
child’s 18th birthday. Interest is compounded continuously at 6.5%. What should the initial investment (P0) be?

A: Use the following equation

Present worth = future worth * (1/e^(in))
e = eulers number
i = interest rate
n = number of years

PW = 41,000 * (1/(e^(0.065*18))
PW = $12725.04

Q: At the time of the birth of a child, a parent wants to begin a college fund?
that will grow to $47000 by the child’s 18th birthday. Interest is compounded continuously at 9%. What should the initial investment (P0) be?

A: the formula for continuous compounding is
A = Po.e^rt

plugging in,
47,000 = Po.e^(0.09*18) = Po.e^1.62

Po = 47,000 / e^1.62

= $9301.24
—————-

Q: At the time of the birth of a child, a parent wants to begin a college fund that will grow to $46000 by the?
child’s 18th birthday. Interest is compounded continuously at 6.5%. What should the initial investment (P0) be?

A: Well you would use the formula A=Pe^(rt). For here you are solving P. You fill in the formula getting 46,000=Pe^(.065)(18). Simplify to get 46000=Pe^1.17. Then you find the Ln of the each side writing ln46000=Pln(e^1.17 getting 10.73639668=1.17P. Divide each side by 1.17 and get a principal of $14276.8793.

Q: What should I choose as my investment elections for 401K?
How should I invest my 401k? Hi I’m 29 and want to start my 401k, I plan on contributing $200 a month and the company I work for will match 50% up to 5% of the pay I put in. I don’t know if I said that right lol. Thanks for the help, this is with Fidelity. I wish I could put more, but I have to put $100 in each of my children’s 529 account. I have 2 babies (a 3 year old and 10 month old).

These are my options…

Asset Class
Subclass
Fund Name

Blended Investments–BLKRK ASSET ALLOC IS

Blended Investments–FA FREEDOM 2005 I

Blended Investments–FA FREEDOM 2010 I

Blended Investments–FA FREEDOM 2015 I

Blended Investments–FA FREEDOM 2020 I

Blended Investments–FA FREEDOM 2025 I

Blended Investments–FA FREEDOM 2030 I

Blended Investments–FA FREEDOM 2035 I

Blended Investments–FA FREEDOM 2040 I

Blended Investments–FA FREEDOM 2045 I

Blended Investments–FA FREEDOM 2050 I

Blended Investments–FA FREEDOM INC I

Bond InvestmentsStable ValueFA STABLE VALUE

Bond InvestmentsIncomeFA INVST GRD BOND I

Bond InvestmentsIncomeFA STRAT INCOME I

Stock InvestmentsLarge Cap1ST AMER EQ INDEX Y

Stock InvestmentsLarge CapABF LG CAP VAL INV

Stock InvestmentsLarge CapBLKRK EQUITY DIV I

Stock InvestmentsLarge CapFA NEW INSIGHTS I

Stock InvestmentsLarge CapOPPHMR MAIN ST OPP Y

Stock InvestmentsMid-CapCOL MID CAP VALUE Z

Stock InvestmentsMid-CapTHORNBURG CORE GR R5

Stock InvestmentsSmall CapCOL SM CAP VAL II Z

Stock InvestmentsSmall CapFA SMALL CAP I

Stock InvestmentsInternationalBLKRK INTL OPP INST

Stock InvestmentsInternationalFA INTL DISCOVERY I
view restriction(s)

Stock InvestmentsInternationalTHORNBURG INT VAL R5

A: Stable value bond fund
small cap
large cap
international
I don’t like the target funds – you never know what they are investing in.
/

Q: Please suggest Best Life Insurance & Investment option in India?
Hi,
I am 32, male, married, having one kid, a Software Professional in Bangalore, thinking to get Insurance coverage & also some SIP. I am new to the field of Insurance, Mutual Funds etc. My primary requirements are as follows :
a) I want to invest around Rs. 50K per annum to get Tax exemption.
b) I need Rs. 15 lac insurance coverage throughout my life. That means, in case of death, I need my family members to get Rs. 15 lac
c) I would like to avail a mediclaim policy of Rs 3 lacs. That means, in case of hospitality of any one of us ( we are 3 ), we should be able to claim the amount. I currently have a Group Insurance in my company upto 1.5 lacs.
d) I would like to Invest around Rs. 25K per annum on best & safest mutual funds over a period of next 10-15 years.
e) I want to ensure that my child’s education is not burdened ( he is 4 yrs now ) later. I need to invest around 10K per annum for his future.
f) I am planning for house loan in next 2 years.
Please sugst

A: Dear Prahlad,
You have very beautifully explained your details here. I will suggest you to put your money in different segments like life insurance and MFs [mutual funds], Now a days FDs are also a good option.

Main concept is how much risk you can bear.
In terms of life insurance at-least 3 times of your annual income should be your sum assured [risk cover].

in case of Tax saving MFs – SBI is a performer in last 5 yrs.

These are just suggestions from my side and you are the final judge for your money.

please consult with your friends and professional with cool mind.

One more suggestion : spread your investment in differnet months except Jan to Apr
becoz from Jan to Mar. you will be paying income tax.
And school sessions [for kids] starts in Apr where you will be requiring good amount of money. this is my observation

Q: I heard Capital West Advisors provides world-class business planning..How do they help in resources?
I just want to know much about business coaching, fund raising advice, business development consulting, etc. Will these capital west advisers help me in these fields…Can anybody give alternatives or additions to get capital investment information?

A: Absolutely. Capital West Advisors is a business planning, capital introduction, and advisory services company. If you do not already have a business plan, Capital West Advisors will develop a high quality business plan for you. If you already have a business plan, CWA can submit your business plan to Angel Networks and Venture Capital firms and follow-up extensively for several months.

Q: Investment Advisors/Investment Bankers please help!?
I recently graduated from a prestigious Liberal arts college with a B.A (Honors) in Political Science and History, and have been offered an entry level Marketing Assistant position for a leading Investment Management firm. I would like to know how difficult it is for liberal arts majors (specially women) to break into the investment industry. Is it possible for me to move up to the position of an investment advisor later on? I do not have any background in finance with the excepion of a first year economics course i took in undergrad (and thoroughly enjoyed), but i do have a very keen interest in learning about the capital markets. Is it possible for me to move up to the position of an investment advisor? how difficult is the profession, is it similar to investment banking and what is the income potential? also i know that most IA’s make money through comission, does this also apply if you are workng for a top full service brokerage firm? I am in a bit of a dillema because i’m on my gap year and this is a good employment/learning opportunity. Initially i wanted to pursue law but have been having second thoughts about a legal career.
Please advise!

Cheers.

A: It isn’t that hard to break into the industry, but extreamly hard to make a career out of it. Before you become an investment advisor you have to become properly licensed with FINRA. You can check them out at www.finra.org.

Most firms require you to be both Series 7 and 66 licensed. These tests are not easy and take a few months to study. Once you pass those tests then its on to working in the industry. Many major firms will pay a salary for the first year or two but eventually it becomes a full commission job.

While the position takes a lot of time, knowlege, and sales expierience to get started…the income can become very rewarding. If you have the drive to succeed and are ambitious and patient…it may work out for you.

It has for me! not that I make a ton of money but I enjoy the practice. You can learn more about me and my team at the website below. I wish you the best of luck whatever you decide to do!

Q: Does investment advisor in authorized banks really helpful for investment ???????
I noticed that there are some investment adviser in banks…like wells fargo, bank of america…….etc….. they manage your money and take commission more than you pay..i also see that they really showed some good profit ……

what do you think for mid term…….?????? ?? Can he play our investment above capital….???????????

A: I suggest you be very careful before committing any funds to such people.

The “investment advisors” are nothing more than bank employees trying to sell you a bank mutual fund. They are no much better than an ordinary teller, they are just salespeople.

Of course they will show good profit from their marketing literature – do you really expect them to produce brochures showing a loss or poor returns?

Go to a website like Morningstar.com to check up on their real performance. Then, if you still like them, check up on their management fees, 12B-1 fees, etc.

Only after you have done your homework ( on your own! ) should you consider investing with them.

Q: Investment Help?!?
Okay, So I’ve recently invested a pretty decent amount of money through a financial advisor. I know nothing about investing.

He found a “top of the line” investment firm for me called Lidner Capital Advisors (http://www.lcaus.com/). Told me that to work with this elite company, one has to have a large amount of capital to work with and go through a financial advisor.

He also told me that we could expect to see the money triple in 15-20 years. So far, the money has been invested four about four months and gone done 10%. That is, lost 10% of it is gone already.

Should I be worried about this?
I’m giving thought to going through a bigger company like AG Edwards… He told me there could be set backs, but I didn’t expect to lose 10% right of the bat.

Any advise?

A: Never invest in anything without having some knowledge of what is occurring with your money.

The best thing you can do is teach yourself and invest your own money instead of relying on others. I suggest you visit the Vanguard.com website. It is perfect for the new investor and they have an excellent reputation.

Q: How to change from accounting and become an investment advisor?
HI,

I have been in accounting for 2 and a half years now, and I do public accounting, so I see a lot of clients like dentists, doctors, CEO’s & lots of small business owners when it comes to personal tax season. Due to the recession, I got laid off from the firm and joined another firm, which the working condition is quite horrible. Meanwhile, I want to become an investment advisor with companies that they call themselves XXX capital partners. I have no idea how to write a cover letter and resume for an Investment Advisor position, because all of my resumes are very accounting oriented. I believe the position could be sale oriented. I am to the point that I choose unemployment than stay at my current accounting firm.

PS. I will be getting an accounting designation and become a professional accountant in December 2009.

I appreciate all guidance in advance.

A: For CANADA Only:
Canada Overhauls Its Dealer and Adviser Registration/Exemption Rules

http://www.uslaw.com/library/Corporate_&_Securities_Law/Canada_Overhauls_Dealer_Adviser_RegistrationExemption_Rules.php?item=80707

Register in Canada

http://www.securities-administrators.ca/

For USA Only:

http://answers.yahoo.com/question/index?qid=20090517195043AA7IAtY&r=w#BaN_M2D0AnhGUqjJm65y

You prob want to become an RIA – Registered Investment Advisor – RIA (USA)

http://www.investopedia.com/terms/r/ria.asp

How To Register as an Investment Adviser (SEC) (USA)

http://www.sec.gov/divisions/investment/iaregulation/regia.htm

Q: How are webistes and domain names such a good investment?
I have recently spoke wiith my financial advisor about purchasing domain names and building websites. He said since I have some extra capital to use this could be a very exiciting and lucrative venture. There are two domain names up for auction on godaddy that I am interested in one is www.fasttires.com the other is www.findyourdreamgirl.com. Fasttires is already going for $40,000 and findyourdreamgirl.com is listed for $18,995 my advisor thinks this is a good price to move on before it goes up it could be the next match.com. What do you guys know about these sort of investments I want to build my own web business.

A: This is in no way an investment. Investing indicates a reasonable potential gain while this is pure speculation and probably better termed gambling.

His advice is unbelievably stupid (probably the worst advice ever) and you need to fire him this second. He probably wears slip on shoes because he can’t figure out how to tie regular ones. Ask him this question… How can I be sure that www.findMYdreamgirl.com, FindINGyourdreamgirl.com, findyourdreamGUYORgirl.com,www.fydg.com, etc aren’t the next match.com. The value of a domain is based on traffic and it’s unlikely that www.findyourdreamgirl.com will generate any. What is the incentive for women (read 50% of the population) to go there? This could be an adult site but with millions and millions of those sites why would yours be any better? If there isn’t a bullet proof answer to that one (and just so you know in advance THERE ISN’T) then you have your answer.

I’m not quite sure what kind of business you would be trying to build is it selling tires or is it selling women? I think both markets are pretty much saturated at this point (or rightfully illegal).

I recommend that instead of doing this you throw a massive block party and show everyone what it’s like to burn money in a big pile that will be a huge hit. Invite your ex advisor because he’s probably very famaliar with the process of burning money (after all look at his advice).

Q: Which fund do you recommend? (goal is capital preservation, return OF not ON my money)?
1. PIMCO Total Return (PTRAX)
or
2. Vanguard Total Bond Market Index (VBTIX)
or
3. Stable Option Fund (formally named Guaranteed Option Fund just last year). This is not publicly traded as others above rather available via Ohio Deferred Compensation, here are details:

47% Mortgage backed securities and Collateral Mortgage Obligations
25% Corporate Bonds
11% US Treasuries
9% Asset Backed Securities
4% Agency Securities
3% Cash

Average duration 3.5 years
Average Quality AA+

Allocation by Manager:
36%DB Advisors
17% Nationwide Insurance Company
17% State STreet
14% JP Morgan Investment Advisors
12% Pryamis Global Advisors
3% Goode Investment

Rep informed me that only 2% of mortgage backed securities are sub-prime but when 1500 Yahoo employees are laid off I figure there were some AA+ mortgage backed securities that just lost rating….

Thank you in advance,

A: You really do not want anything that has the word mortgage associated with it. Although PTRAX has an outstanding record, I think in the current environment I would forgo it in favor of VBTIX.

Q: Are there exceptions to the $3,000/year cap on capital losses?
I had $700,000 basis of long term stocks that were gradually loosing their value so I turned everything over to an investment adviser last year who sold everything at a $300,000 loss and put the remaining $400,000 into “better” investments. If by some miracle this year, my portfolio value makes its way back to $700,000 and I sell everything for a $300,000 gain, are my carryover losses from last year limited to only $3,000? If so, I would then have to wait 99 more years to use up the rest of the capital losses? I’m already 64!

A: I believe that you can use any loss carryover against any capital gains, but you can only take a $3000 loss per year against other income. So you basically wouldn’t pay capital gains until your gains used up your loss carryover.

So if you lost $300k, took a $3000 loss and carried over $297k. Then gained $300k the following year (wishful thinking), you would only have a capital gain on the $3000 loss deduction you took the previous year. That is assuming that you actually traded the securities after the gain (and not just paper gains).

It is difficult to tell without plugging actual figures into the forms, but that would be the only fair way to be able to recover the loss without getting hit with much higher progressive tax rates for regaining the loss.

Q: Is Obama’s attack on venture capital a necessary consumer protection or another opportunistic power grab?
Please read the article before answering:

http://online.wsj.com/article/SB12392364…

Exerpt from the article quoting Tim Geithner, speaking on behalf of the administration, trying to justify the new draconian regulations:

“In justifying new SEC registration requirements, Mr. Geithner said that Bernie Madoff’s Ponzi scheme demonstrated that investors need more protection. He didn’t mention that Madoff’s firm was registered with the SEC as an investment adviser and had also been regulated by the SEC for decades as a broker-dealer. Also, Madoff was not running a venture firm.”

Does Geithner know what he’s doing?

If not, we should all be afraid that he (and Obama) is in over his head.

If so, we should all be afraid that they are not interested in a thriving private sector.

Another excerpt:

Says Cypress Semiconductor CEO T.J. Rodgers, “First, Sarbanes-Oxley mandated byzantine corporate bureaucracy to ‘protect’ investors. Then, the SEC damaged the Silicon Valley economy by forcing companies to count stock options twice, both as dilution and as expense. As a result, Silicon Valley, for decades the bright spot of the American economy, produced only one [initial public offering] in all of 2008. Now, Geithner wants to regulate venture capital firms to protect us some more. It’s like watching children deface an economic work of art.”

A: It is an opportunistic power grab. They need to come up with another plan. This proposal ultimately the investor (you, your 401k, your retirement) suffers. The SEC needs to do a better job. Not everyone is like Madoff. The private sector does need this kind of so-called protection but they do need protection from the IRS, Treasury Department, and Timothy Geitner, and Obama.

Q: Is Geithner’s attack on venture capital a necessary protection or another opportunistic power grab?
Please read the article before answering:

http://online.wsj.com/article/SB123923644886203393.html#mod=djemEditorialPage

Exerpt from the article giving Geithner’s justification for the draconian regulations:

“In justifying new SEC registration requirements, Mr. Geithner said that Bernie Madoff’s Ponzi scheme demonstrated that investors need more protection. He didn’t mention that Madoff’s firm was registered with the SEC as an investment adviser and had also been regulated by the SEC for decades as a broker-dealer. Also, Madoff was not running a venture firm.”

Does Geithner know what he’s doing? If not, we should all be afraid that he is in over his head. If so, we should all be afraid that a thriving private sector is not on his (or his boss’s) priority list.

Another excerpt:

Says Cypress Semiconductor CEO T.J. Rodgers, “First, Sarbanes-Oxley mandated byzantine corporate bureaucracy to ‘protect’ investors. Then, the SEC damaged the Silicon Valley economy by forcing companies to count stock options twice, both as dilution and as expense. As a result, Silicon Valley, for decades the bright spot of the American economy, produced only one [initial public offering] in all of 2008. Now, Geithner wants to regulate venture capital firms to protect us some more. It’s like watching children deface an economic work of art.”
Well, Mike, that’s a relief! (I guess.)

A: Geithner is not competent.

The Obama administration is hostile to entrepreneurship.

Also the Dinosaurs of industry, such as the automobile industry do not want additional competition.

the Venture Capital Industry has been very successful at building up the computer and software industry and represents a source of competition to established firms who do not want additional competition.

By regulating the Venture Capital Industry, essentially the Obama adminsitration would shut it down.

Q: Is H. Clinton White enough to be a US President? What about Guiliani? What about Mitt Romeny?
The Whitest American must not try to make sure other countries have a larger share of our US $$$ = All 3

Romney is a former CEO of Bain & Company, a management consulting firm, and the co-founder of Bain Capital, a private equity investment firm. Prior to Bain, he worked for The Boston Consulting Group. Romney also served as president and CEO of the 2002 Olympic Winter Games held in Salt Lake City = Corruptions!!!

After leaving office as mayor, Giuliani founded Giuliani Partners, a security consulting business, acquired Giuliani Capital Advisors (later sold), an investment banking firm, and joined the Bracewell & Giuliani law firm, which changed its name when he became a partner.

H. Clinton? Just listen to how she bark like an Exxon dong instead of talking like an American
askthepizzaguy;

Please do so by writing to CNN because they did the same thing to Obama this morning……..
ladyshondra;

what is politic? Is it a birthday party

A: While the question itself would appear to be racist by casual glance, I see a little humor in it.

Bravo.

Let’s see how many people knee-jerk a response without reading the entire thing…

If race or gender is not important, why does the media selectively bring those topics up? I’ll bet money that when Jessie Jackson ran for President, there was not a single question to his ethnicity.

If religion is not important, why are candidates asked? Why aren’t all candidates asked? Why are only some pursued?

Too funny.

Edit: Supaypahuahua- You have it backwards: Minorities tend to become Democrats to safeguard their racial interests.

Q: Do you do a little research before posting a political Question or Answer? US Trash- The Scowcroft Group…..
former members:

Colin Powell, Condoleezza Rice, Richard Haass
Ken Juster , Howard Baker , Carla Hills
Robert Strauss
Lawrence Eagleburger

These people have also been or are associates of the Scowcroft Group:

Stephen J. Hadley

Daniel Zhou – the founder of CEB Monitor Group Ltd., a Beijing-based China research and investment advisory group. Mr. Zhou has experience as the of Director of Investment Banking at UBS.

————————-

Kissinger Associates, Inc.,

———————

After leaving office as mayor, Giuliani founded Giuliani Partners, a security consulting business; acquired Giuliani Capital Advisors (later sold), an investment banking firm; and joined the Bracewell & Giuliani law firm,
———————–
Following the advice of Neoconservative William Kristol, Dole flatly rejected the health care plan of Bill Clinton, remarking, “There is no crisis in health care.”

Working for Alston & Bird
Bob Dole consults Dubai company

A: Certainly. The regressive right is filled with shady groups like that. Good info.

Q: mona chhalwani financial advisor for R.S.INVESTMENT?
R.S. INVESTMENTS
MONA .CHHALWANI
GERNAL MANAGER

Wrote letter to PRESIDENT OF INDIA, SEBI,EDUCATION MINISTER,INCOME TAX DEPARTMENT,NATIONAL STOCK EXCHANGE

MONA .MADAN. CHHALWANI GERNAL MANAGER for

‘’ RS INVESTMENTS ‘’

As per survey taken by ‘’RS.INVESTMENT’s’’ 68% of people in Mumbai don’t know
How to manage their finance neither they can afford to pay the high fee of financial advisor

In today’s world getting knowledge for ur finance is very important. But when we ask for any knowledge the CFP do charge to manage our finance

I have written to president and education minister regarding this that there should be subject in every stream after 12th STD where student can understand about capital market and financial market. So according to that each an every individual can plan there finances.
At this time they do have basic knowledge and some chapter of stock market which is not enough.

I have also sent a original copy of letter which has been signed by 15 different college principal’s, And over 1200 students which include F.Y.JC, S.YJC,
(F.Y, S.Y, T.Y) B.COM, BBI, BMS, BSC.

‘Barclaycard’ brand name and big bank in U.K to help their customer what they did they went and given interest free period for all the card holder who lost their job in this global meldown
they also reduce the interest rate for all the customer and also min payment was reduce from 2.50% to 2.00% which help the customer a lot in U.K.they also started giving advice over the phone to all customer how to manage their finance in this global melldown,and they didn’t charge for that free financial advice.

When they can do it why cant we give free financial advice where India is an developing country

Savings Bank Account ,Money Market Funds (also known as liquid funds) ,Bank Fixed Deposit (Bank FDs) ,Post Office Savings Schemes (POSS), Public Provident Fund (PPF) ,Company Fixed Deposits (FDs) ,Bonds and Debentures , Mutual Funds

These are the basic things where we should be having knowledge about
And I demand for free advise in today’s market so that the people in India should save money not book losses in capital market

Every time when there is big market correction we always here suicide cases through out India

I will be writing to BOMBAY STOCK EXCHANGE as well to get each and every broker and operator should be given training for capital market advice and financial advice So while making trade for their client the can make their suggestion as well

A: I have carefully read your question. This question involved the financial policies of the Govt. of India over which you have no effective control. I don’t agree with you that the Govt of India will come out to impart financial advice to the people regarding investments in Stock Exchange market.. Idnia is a developing country, like Pakistan and Bangla Desh, but the financial policies of each country is based on other factors, such as obtaining financial aid from IMF or other loan giving Agencies. The developing structure of India is not as good you are require that they must give Bombay Stock Exchange authority to give market advice to the clients and give suggestions.
However, if you compare the Financial Position of India with Pakistan, I am 100% confident that the Indian Finance Ministry is doing much better than that of Pakistan and India is not bound to accept IMF instructions which involve to unjustifiably increase prices of essential commodities, like petrol and electricity inasmuch as the Supreme Court of Pakistan had to take Sumitomo notice of the unprecedented rise in the prices of petrol and electricity. Here in Pakistan masses are suffering too much at the hands of politicians IMF(as the presen Govt.. has taken Loan from this agency) and IMF is bent upon to increase the prices of commodities without taking due cognizance of the sufferings of the masses. I think you will now understand what I mean. Good Luck Take Care.

Q: ISA Investor – Capital Protected option is this any good?
I have been offered the above as a 6 year investment opportunity by a financial adviser through the Halifax.
Basically, its an ISA based investment linked to the FTSE 100. However,it is capped to 50% of the growth of the FTSE 100 during this period. in effect, if the FTSE 100 grows by, say, 60% over the 6 year period, I would only get 50% of the growth. Also, I am concerned about the level of charges.
I would appreciate an answer. Thanks

A: Yes it’s ok if you don’t want to risk losing your initial investment, but the returns aren’t as good as if you are taking the other options.

Q: I’m entering into my companies 401K and I’m having a hard time trying to elect which Investment to choose?
Use whole numbers (for example: 0%, 3%, 25%, 72%); total must equal 100%.
B. You may elect automatic Account Rebalancing to help maintain the long-term investment strategy you decide is appropriate for
meeting your savings goals. Once you’ve created your asset allocation, automatic Account Rebalancing can rebalance your account
as often as you choose: quarterly, semi-annually, or annually.
SM SSgA Government Money Market Fund %
TR PIMCO Total Return Fund – Class A %
7X DWS High Income Plus Fund – Class S %
SI SSgA Life Solutions(SM) Income & Growth Fund %
SB SSgA Life Solutions(SM) Balanced Growth Fund %
SG SSgA Life Solutions(SM) Growth Fund %
AG AllianceBernstein Growth and Income Fund -
Class A
%
A2 DWS Large Cap Value Fund – Class A %
S5 SSgA S&P® 500 Index Fund %
VZ Neuberger Berman Partners Fund – Advisor
Class
%
OC Oppenheimer Capital Appreciation Fund – Class A %
MD Fidelity® Advisor Equity Growth Fund – Class T %
XQ Franklin Rising Dividends Fund – Class A %
9E SSgA S&P® MidCap 400 Index Strategy Fund %
M1 Alger MidCap Growth Institutional Fund – Class I %
J8 Janus Adviser International Growth Fund – Class S %
Z4 Templeton Growth Fund, Inc. – Class R %
TS Allianz NFJ Small-Cap Value Fund – Class A %
SR SSgA Russell® 2000 Index Strategy Fund %
AR Alger SmallCap Growth Institutional Fund – Class I %

A: If you want to keep it simple, choose one of the target retirement funds. They are one stop shopping – SSGA Life Solutions Growth fund – 100%.

Or if you want to pick individual funds:
45% ssga s&p500 index
10% ssga mid cap index
05% russell 2000 index
20% Janus international
20% pimco total return

Many different ways of building a portfolio. It just depends on how you want to tackle it. If you want to have a comfortable retirement, I suggest you hit the books & learn about investing. Nobody cares as much about your money as you do.

Q: What is the best retirement investment account for a construction worker? CD, IRA, Or Other??
My husband and I are looking to start a retirement account, but I don’t know much about CD’s or IRA’s. Can anyone help that speaks common english, instead of the banker talk?? Thanks

A: An IRA and a CD are two completely different things.

An IRA is an account, kind of an “umbrella” under which you can place virtually anything: stocks, bonds, mutual funds, unit investment trusts, exchange-traded funds (ETFs), real estate investment trusts (REITs), and—yes—CDs.

CD is an acronym for Certificate of Deposit. I’ll come back to that in a moment.

Returning to the IRA: IRA is an acronym that stands for Individual Retirement Account. You also will see it, rarely, written as Individual Retirement Arrangement. So just from the name you can see that the answer to the question “what is the best retirement investment account, CD or IRA” is IRA.

You also mention “other”. If by “other” you mean that (and I’m assuming your husband is the construction worker) your husband is an employee of a company, and that company offers a retirement plan, then the general answer is YES, “other” is good! Participate in the company’s retirement plan! It helps in many ways, not the least of which is that the company will pull the investment in the plan out of your husband’s check before he gets it, so it forces the discipline of saving. Very helpful.

Let’s go back to the IRA. Here’s how it works: it’s a retirement account, which means you can put money in it IF you have earned income (like a construction worker), and the maximum you can invest if you’re under 50 is $4,000 per year. If you aren’t covered by another retirement plan, generally that $4,000 (or however much you invest, up to the maximum of $4,000) is deductible from your income. So in other words, if you earned $36,000 and place $4,000 in an IRA, you pay tax on only $32,000. This is an incentive to get you to save for your own retirement.

The amount you place in the IRA, up to the maximum of $4,000, is invested inside the “umbrella” of the IRA and grows tax-deferred (a VERY big deal) until you withdraw it. You cannot withdraw it without a penalty until the age of 59½. Be sure you are prepared for that; this is NOT a savings account and you do not have access to this money without penalty (except in very limited circumstances) until you are 59½. This is to force the discipline of leaving it alone for retirement; again, it’s an Individual RETIREMENT Account.

Now, today there is a different kind of IRA called a Roth IRA. “Roth” refers to the sponsor of the legislation that created this account, Sen. William Roth of Delaware. There are two major differences between an IRA and a Roth IRA. In the Roth, you receive no tax deduction on the amount you place into the IRA, and the money grows TAX-FREE. Also a VERY big deal. Again, this is NOT a savings account and you do not have access to this money without penalty (except in limited circumstances) until you are 59½.

You might consider placing a total of $4,000 into IRAs per year, $2,000 into a regular IRA where you get a $2,000 deduction and the money grows tax-deferred, and $2,000 into a Roth where you get no deduction but the money grows tax-free. That way you would get some benefits of both.

So if you really want to save for retirement (and we all should), first participate in your company’s retirement plan, if any, then open IRAs.

A couple of other points on IRAs: virtually anywhere you set up an IRA, there is an annual fee for it. Usually it’s $40 or $50 per year. On top of that are fees, commissions, or charges for whatever you invest the IRA money into. Sometimes you’ll see or hear commercials or ads, or talk shows on radio, that say they charge no investment commissions–oh, but there’s a fee. Or there’s no fee–oh, but there’s a service charge. There are ALWAYS fees/charges/commissions. Nothing illegal or immoral about that; it’s a business, just like construction work.

Now, back to the CD. A Certificate of Deposit is an investment that offers a fixed rate of interest (today 3.2% or so) for a fixed amount of time (3 months, 6 months, a year, two years, etc.). You “buy”a CD usually in increments of $1,000; you can buy a $1,000 CD or a $5,000 CD, but not a $1,187 CD, in other words.

CDs are issued by banks. You can buy one from any bank. You can also go to a brokerage firm, like Morgan Stanley or Merrill Lynch, and buy a CD. Those firms do not issue their own CDs; instead, they act as a go-between for you and CDs from banks all over the country. In this way you have access to rates from all over the country, instead of hoping your local bank offers a good rate.

A couple of other points: If you buy a CD for a 3-month period and need the money in 2 months, there generally is a “penalty for early withdrawal.” Generally the penalty is the interest you’ve earned so far. At the end of the period (3 months, 6 months, etc.) the CD “matures” and you can either buy another one or do something else with the money. Be careful, if you buy the CD from a bank, that the bank does not “automatically” reinvest into another CD. Interest rates for CDs are quoted as an annual rate; 3.2% referenced above means the CD earns 3.2% per year. If you buy a CD for 3 months, then, since 3 months is ¼ of a year, for a 3-month CD you earn ¼ of the rate, or in this example ¼ of 3.2%.

Okay, so let’s put these two together. You can open an IRA and deposit $2,000 into it.
With that $2,000 now in the IRA, you can buy a $2,000 CD for 6 months. That’s one way to go. Or you can buy mutual funds, or bonds, or stocks, or anything else.

One more note about IRAs and CDs: You can go to your local bank and tell the bank teller you want an IRA. Generally the teller will give you some forms to sign and the IRA money will be automatically invested into a 1-year CD. The bank representative will tell you there’s no fee for the IRA. HOWEVER, the 1-year CD that’s in your IRA will earn less than a 1-year CD you buy outside your IRA. So is there a fee? Of course. It’s built into the lower rate you get on your CD. You just don’t see the fee.

Hope this helps. I tried to make it plain English! Good luck.

Q: What’s the best investment for retirement in 20 years?
Besides putting the minimum amount into my already growing ROTH Ira each year, what is the best way to invest $20k right now?

So that in 20 years when I retire, I’ll have that and the yearly additions to the Roth Ira each year.

A: The Roth IRA is a fabulous vehicle, as the returns are never taxed. It also works well if you have heirs.
Your really have 2 choices:
1. Invest in traditional markets and enjoy the roller coaster ride of ups and downs as the market expands and contracts. Ask those who retired in 2000 and took a 40% hit on their portfolio. If you want the easy way and abdicate responsibility, go to a financial planner and invest the money based on your risk profile.
2. Learn about the path to generating wealth. Just spend 30 minutes a day learning about finance. There are other paths outside the scope of what the banks and financial planners sell that are far less risky and have much better returns. It is pretty easy to get anything from 12% to 20% returns with practically no risk. The model is “you make your money when you buy the investment, not when you sell it”. I hope that one day you will understand this statement.

Good luck.

Q: what is the best investment /retirement plan for a mom who hasn’t worked due to husbands support .?
I am a stay home mom for 16yrs. , my husband never wanted me to work , at the time when my kids were small I was busy in their care. Now , I am thinking what will I do if something happened to my husband, how would I manage to take care of myself? What are some good investments I could make to safe guard myself for the future. I have just started to work in a private dr. office but I am thinking of changing to a gov. or state job because they have better retirement benefits. Thankz for your time.

A: First off, make sure you and your husband have a good term life insurance policy. That way, if something does happen to him, that you will be well supported.

On top of that, you can put your money into a Roth IRA and it will grow tax free. Other than that, you can invest in mutual funds. They tend to perform pretty well over the long term.

Q: What are the best investment vehicles for retirement income?
Retirement within a year and would like suggestions for secure investments that offer a reasonably high yeild.

A: Don’t use a broker/financial advisor!! Their fees will kill you.

http://www.retireearlyhomepage.com/advise.html

Consider that 4% is considered the safe withdrawal rate in retirement. Does it make sense to pay half of that or more in investing fees to brokers and high priced funds?

There are plenty of good books and articles and tools to help you.

http://news.morningstar.com/articlenet/article.aspx?id=210591&pgid=hparticle

https://personal.vanguard.com/VGApp/hnw/planningeducation/retirement/PEdPrepareRetContent.jsp

And ask here:

http://www.diehards.org/

Q: what is the best investment plan for retirement?
Hii…I’m Harto now 39 old, would like prepare for my retirement plan…what is the best investment plan…thanks you

A: hi,
i just want to say, if you are looking information about how to calculate your retirement planning, go to this site,

http://www.stock-investment-made-easy.com/retirement-planning.html

it offers step by step calculation on how you should go about retirement planning. you’ll discover how much you should save to survive in your retired life.

Q: What is the best investment route for retirement if I need the option of withdrawing for kids college?
Also for home purchase, could not fit it in.
Based on what I have found, it seems like a Roth IRA. ???
I also have 401k’s and other investments, so this would be supplemental.

A: The Roth IRA
The tax breaks for a Roth IRA are different. Unlike a contribution to a traditional IRA, a Roth IRA contribution is never deductible. Taking the above example, you’d still be taxed on $30,000 even though you had put the same $2,000 into a Roth IRA. However, when you withdraw the money from a Roth IRA, none of it — and that includes the earnings — will be taxed, assuming that the Roth IRA has been open for at least five tax-years and you are older than age 59 1/2. That’s right — you get off scot-free with the booty. All you have to do is to wait until you can withdraw it penalty-free. Again, that’s after age 59 1/2, and as long as it’s been in there for at least five years.

In other words, the Roth offers tax-exempt rather than simply tax-deferred savings. One word makes a big difference. While both allow you to accumulate wealth without paying taxes along the way on your profits, the traditional IRA ultimately sticks you with a tax bill for those profits (plus your initial contributions if those were deducted when made). The Roth doesn’t. As long as you follow the rules, you never pay taxes on your gains. So paying the piper now before contributing to the Roth may work out to be better for you than paying him later on your investment profits.

The Roth makes particular sense for people otherwise limited to making non-deductible contributions to a regular IRA. And the Roth is fully available to single filers making up to $95,000 and couples making up to $150,000. It also allows you great flexibility by allowing you, in many cases, to withdraw your principal contributions at any time tax-free, without penalty. First-time homebuyers can also pull out $10,000 in profits penalty free and tax-free if the money has been in the Roth IRA for at least five tax years. There are also some breaks for education spending, though an Education IRA may be a better vehicle for education savings. Barring these exceptions, though, profits withdrawn before retirement age and before the money has been in the Roth for at least five tax-years will be taxed, plus you’ll also incur a 10% penalty when those earnings are taken before age 59 1/2.

Q: I have an annuity w/ Western reserve life. Is that the best investment for my retirement & life insurance?
I’m self-employed is there a better investment out there

A: Probably not. You will pay taxes at your normal tax rate when you take it out. Capital gains rates on mutual funds would probably be lower. Plus annuities have high fees and surrender charges.

Q: What is the best investment for long term wealth / retirement?
Please be specific or add a good reference web site. 401 seem useless. Where can my wife and I really make good returns?

A: You should invest in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea of how to do “Asset Allocation,” determining how much to put in each type of fund.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. If you have children, you may want to consider a 529 plan or other college savings plan that grows tax free.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion

Buying a house instead of renting will save you a lot of money in the long run. You don’t have to pay rent and you build equity in your house instead. Buying rental property can also be a good investment. However, being a landlord can be hard work, and many people are not good at it. If you don’t know how to handle deadbeat renters, you can have trouble.

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planningeducation
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetallocation.htm
http://www.diehards.org/readsites.htm
http://finance.yahoo.com/education/begin_investing

http://finance.yahoo.com/funds/basics

Asset Allocation Calculators
(Determining how much to put in stocks and how much into bonds and money markets is a personal decision depending on your financial status. These Asset Allocation questionaires give you a rough idea how to do this. I like Vanguard best, but try some of the other sites as well.)
https://flagship.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education
https://ais2.tiaa-cref.org/cgi-bin/WebObjects.exe/DTAssetAlcEval

http://www.ifa.com/SurveyNET/index.aspx

Web forum: http://www.diehards.org/
(Many investment web forums are overrun by scam artists. This one seems the most legitimate site.)

529 plans: http://www.savingforcollege.com

Q: What is the best type of investment to set up for retirement?
What is the best for long term/retirement savings? My husband and I are in our 20s and are looking to save for retirment. I am thinking a Roth IRA account…any suggestions? Thank you!!!!

A: If you have a 401k already, a roth IRA is your best bet (so long as you qualify). In this account you put post tax dollars which can grow tax free until withdrawn.

If you do not currently have a 401k, you are better off with a traditional IRA as this allows you to contribute pre tax dollars. The earnings in the account grow tax free like the Roth IRA, but have the added benifit of being tax deductable at the time of contribution. since they are pretax contributions you will have to pay income tax at the time of withdrawal. So the traditional has the dual benifit of lowering your taxable income and tax free growth. you can not use htis account though if you have a 401k or other employer sponsered retirement account.

Q: What educational degrees would best equip one to understand taxation, paycheck stubs, & retirement investment?
I would like to take some classes. Any specific classes to take to better manage personal finances and be more keen on catching paycheck stub errors as well as understanding how to live smart by not overworking and getting more taxed? I am a hard worker who would like to more a double job once school finishes, but I’m afraid I’ll pay so much in taxes. I don’t quite understand this whole taxation stuff and how to ensure a good retirement. Thanks.

A: The most common misconception of the US tax system is the belief that the tax rate goes over 100%. Witness your statement that you don’t want to “overwork.”

Q: Best Investment methods today for the future?
Hi all I am about to start a career next week and I am 24. My benefits and 401k will start a month there after and I will be making pretty good starting salary. I want to make the most of my money and invest it so I can have more for the future and tons for retirement

What are the best investment methods? 401k retirement plan from my employer of course, but what about CDs from my bank? What’s a good interest % rate? How much should I put in per month towards my retirement/investments? I don’t understand what mutual funds/bonds are and why people invest in those? IRAs? Should I put little in each or focus on 1 only?

Thank you!!

A: Mutual fund is a pool of money from many investors that are managed by fund managers. this is the easiest way for regular investors to get exposed to stock market without having to actively monitor the stock performances.

You can invest in mutual funds if you are not ready to get involve in stock market or have not enough money yet to buy stocks for yourself; but expect higher return than CD.

Since you are still young and be making pretty good starting salary, invest in stock market or real estate yourself. Stock market able to offer huge growth potential. On the other hand, real estate can offer you good sleeping income. Combining both, you are pretty much on track to financial freedom by the time you retired.

Step-by-Step Stock Investing for Beginners
http://www.stock-investment-made-easy.com/

http://answers.yahoo.com/question/index;_ylt=As61UR4DWXZnVDIVK6se6XLty6IX?qid=20070717183111AAk8IIS&show=7#profile-info-kFApW5uJaa

Q: What are the best investments for retirement accounts such as IRA’s?
I know IRA is a tax shelter account, so what are good investments?

A: 99% of the time, your best bet is to spread out your money in simple no-load index funds. Managed funds fail to beat their index 80% of the time, and they often charge you 5.75% upfront PLUS higher annual maintenance costs. So they’re often useless and cost you money.

You should really go out and hire a fee-based financial planner. This is important, as most financial planners are paid based on commissions, so their advice is often geared towards products that pay themselves better, not what’s best for you. It’s better to pay someone a flat rate for time spent, and get real advice. Spending a few hundred dollars now could literally be worth hundreds of thousands over 40 years. Seriously. Make the investment today.

Q: If a person inherited $100,000 USD, what would be the best investment for use in a retirement vechicle?

A: Index funds and/or CDs. It really depends on your age. The closer you are to retirement the more you need to look at more conservative investments like CDs and bonds. But if you are young you might think about index funds. I’ll post some links of ones I use and some others that have low maintenance fees. Check your bank for current CD rates and terms. Aim for at least a 5% return.

You might also go to your public library and look in their finance section (330s of the Dewey Classification System – yeah, I’m a librarian that’s why I know that ) to see if they have any good books to help you on investing this money. Good luck!

Q: the best monthly cash return on a retirement investment.?
I will be receiving over 6 figure profit sharing amount in the near future. I want to invest it, and receive a monthly pay out for my retirement. This is other then an annuity. I am 63 and receiving social security.

A: You were receiving social security. The profit sharing will wipe that out pretty much.

There are mutual funds that have monthly distributions. But you are limiting your investment choices by stipulation monthly distributions.

Here are some choices.

DPD 8.85% annual return pays 0.15 per share monthly price about $20.00 a share

JSN 9.27% annual return pays 0.148 per share monthly price $19.16 a share

ERH 9.22% annual return pays 0.20 monthly price 26.03. This one just raised the diviidend.

There are all equity funds. Future payouts may or may not be as good.

Q: whatis the best investment fund for retirement?

A: I have IDEX fund whick has an annual return of 8-9%. check it out.

Q: Anyone heard of International Information Exchange?
Anyone heard of this IIE? It was supposed to protect investors.

The principal undertaking of the International Information Exchange (IIE) is to protect investors employing alternative investment strategies, i.e. private investment opportunities, hard asset commodities trading and offshore investing.

International Information Exchange
775, 15th St. NW
Suite 500
Washington, DC 20005

Tel: (202) 263-1950
Fax: (202) 263-1951

http://www.theiie.net/

A: I searched online but nothing came out.
I hope that you will chose my answer as best one.
Thanks

Q: Help me find the expected rate of return!?
“You are considering two investment opportunities, namely, Investment A and Investment B. Suppose, the rate of return on Investment A can be described by a Normal distribution with mean 8% and standard deviation 4%, and the rate of return on Investment B can be described by a Normal distribution with mean 5% and standard deviation 5%.”

a) If you allocate half of your portfolio to each investment, what is the expected rate of return?

b) Consider the alternative strategy of allocating one-third of your portfolio to Investment A, and the remaining two-thirds to Investment B. What is the expected rate of return on this alternative strategy?

c) How would you measure the risk associated with the two investment strategies outlined in parts (a) and (b)? Based on this measure, which investment strategy would you prefer – the one outlined in part (a), or the one outlined in part (b)?

A: Now the expected return on a portfolio of assets is simply the weighted average of the returns on the individual assets.
Thus for a two asset portfolio the expected return
=w1E (A) +w2E (b)
Where
E (A) =expected return on asset A
E (B) =expected return on asset B
W1=percentage of the total portfolio value invested in asset A
W2 = percentage of the total portfolio value invested in asset B
Now to answer your question
(A)allocate half of your portfolio to each investment, the expected return will equal
0.5(0.8) +0.5(0.5) =0.65
=65%
(B) one-third of your portfolio to Investment A, and the remaining two-thirds to Investment B the expected return will equal
0.33(0.8) +0.67(0.5) =0.33
=33%
(c)The variance and standard deviation of returns are common measures of investment risk but to measure the standard deviation for a portfolio of assets it’s not simply the weighted average of assets standard deviation it’s also a function of the correlation among the returns of the assets in the portfolio
The general formula for the portfolio standard deviation:

σp=√(w_1^2 σ_(1+)^2 w_2^2 σ_2^2+2w_1 w_2 〖COV〗_1,2 )

Where:
σp=portfolio standard deviation
W1=percentage of the total portfolio value invested in asset A
W2 = percentage of the total portfolio value invested in asset B
〖COV〗_1,2=the covariance between the returns of asset A and B

Q: what are some good resources to learn about investing and finance?
i’m interested in books and online sources for learning about all things finance. i want to learn more about personal finance and investing for myself, as well as larger scale and more complex financial strategies and instruments. what should i focus my research on? i’m intrigued by hedge funds and other alternative investments, but i also want to learn about more common and readily accessible investing vehicles and styles.

A: The weekly investing column in the newspaper is written by a group called The Motey Fool. www.fool.com (not my website). It’s good for beginners in investing and finance..

Q: Investment Strategy – ETF’s?
Figuring I do not possess the time/knowledge to follow individual stocks I was thinking of buying ETF’s in the following broad industries as an alternative to help gain exposure to stocks in my portfolio:

The broad industries – Basic Materials,Conglomerates,Consumer Goods,Financial,Healthcare,Industrial Goods, Services, Tech and Util

Is this a sound alternative?

A: You are on the right track for a diversified portfolio. One way to cover all the areas is to expand to 9 index ETF’s- xlb, xlp, xly, ixg, xlv, dia, xle, xlk, xlu. Start with 11% of your money in each of the 9 funds. Once each year, rebalance by selling shares in the one that went up the most, buy shares in the one that went down the most, getting back approximately to 11% in each. This strategy has beat the s&p 500 for the past 5 years.

Q: Investment Fundamentals – Financial Planning Project Question help?
I have a project question which asked for an implementation schedule for the products i recommended outlining the actions required by the clients and adviser in order to implement the recommendations?

The recommendations by me are:

Michael and Anna have a good financial condition. They have a decent amount of net worth of $1,892,000 (Total Assets – $2,102,000 less Total Liabilities – $210,000). Michael and Anna are aged 39 and 37 respectively, this indicates that they are still young and have more time for retirement and as a result more time to work and earn before retirement. They are likely to have a Growth risk profile. They are more suitable to invest in growth assets. For example around 85% in property and shares and 15% in fixed interest and cash
It has been established that Michael and Anna were both quite inexperienced when it came to investing. A managed fund provides exposure to the market without requiring serious research. In essence, the responsibility of the investor making the profit is removed. Michael has a demanding job as well as a family. The direct market may well require more time and knowledge than he currently posses. Involvement in this type of investment will also provide access to professional fund managers.
Another luxury of managed funds compared to direct investment is diversification. Michael has expressed an element regarding investments. A managed fund can satisfy this curiosity. This may encourage the use of a regular savings plan.
With two young children, heavy involvement in an investment would be difficult and stressful. Michael and Anna have indicated that they wish to pay off their existing mortgage with the proceeds of inherited property as soon as possible. With this in mind direct property investment may not be suitable. Indirect property investments should also be considered. It may be more suitable for Michael and Anna to invest into a managed fund, such as a property securities trust. These investments include listed and unlisted property trusts, as well as property security funds. The above mentioned investments will provide a higher level of liquidity, especially the listed property trusts, and also remove the burden of managing a direct property. Michael and Anna may even like to become involved in a property syndicate.
A commitment to the children’s education has been made and a property trust may be the vehicle to drive that investment. This strategy would appear to be much more suitable and indeed manageable. A property securities fund also has beneficial tax implications as well. The transparent structure passes tax advantaged incomes back to them. This may also be of particular interest to them’ as taxation was listed as a high priority on their list of concerns. A listed property trust may also be suitable and income from such could be used for their needs like their children’s visit to Disneyland. To complete a variety of alternatives, a private syndicate should also be discussed.
Pooling funds with others dramatically reduces the financial strain of the investment. As such they can also invest in pooled development funds which offer tax advantages as well. They are like venture capitalists. The main attraction of such funds is that there is no capital gains tax or income tax on pooled development funds. Given the nature of the couple’s employment one could assume they are associated with potentially interested parties who could provide stable and substantial capital.

I don’t expect an answer directly, but just guideline to start the answer, if anyone can help please???

A: I do not find a question in all this, sorry.

Q: Does FDI do more harm than good?
What is your opinion on the contribution Foreign Direct Investment makes in developing countries?

Does a real transfer of knowledge and technology occur or is it just a matter of exploiting that particular country’s national advantages?

Should countries continue to vie for FDI or develop alternative strategies?
Juan, buying shares in a foreign company isn’t a form of FDI it is known as ‘portfolio investment’.

A: FDI is essential for technological up-gradation and overall upliftment of any country..FDI provides the necessary “push” to the economy since they are the guys with BIG money, also the new age mantra is partnership and not competition.

Developing countries will and should vie for FDI.

Q: what are the EXXON MOBILE stakeholder-theory perspective?
2.EXXON/MOBILE has long been a pariah in the energy business for its blatant disregard for the environmental damage it has been causing in the course of its normal business operations all over the globe. The company has recently made significant attempts to change its blemished corporate image by adopting more environment friendly strategies such as making substantial investments in alternative sources of energy. Explain this “change of heart” in terms of (a) the stakeholder-theory perspective and (b) the more traditional approaches focused on long-term, sustainable profitability.

A: The traditional input-output model has the corporation only looking at the investors, employees, suppliers, and customers. The government is also a place to start. With the new more environment friendly strategies, I think (not sure) Exxon would get more tax breaks by pursuing these alternative sources of energy. Since it is profitable to look at the government as stakeholder, then Exxon will do so when it needs to.

There could be secondary stakeholders, such as political groups, where Exxon wants to appease these groups in order to improve its image.

Long-term sustainable profitably comes in 2 ways. Before oil runs out, Exxon will have diversified its risk because it can produce energy in multiple forms instead of just oil. So, if Hurricane Alice wipes out 10 of its refineries, it can still produce energy and make a profit that quarter.

The other case happens when oil finally runs out X years down the line. Their R&D would hopefully be ahead of the competetion so that they still have a foothold in the energy industry while the others would be struggling to play catch up.

Q: Max out 401(k), or add in Index Funds?
Assume a situation where a mid 30’s adult can invest 15% of their yearly salary. They work for a company who’s match for 401k is 6%. Assuming the individual is not eligible to contribute to a Roth IRA, which is a wiser investment strategy?

1. Max out the 401(k), then invest in indexed funds if possible.

2. Invest 6% to get the max company match, then invest the remaining 9% in indexed funds.

(alternatives to these are also welcome)
Thanks for the answers so far. Let me add that the 401(k) does not offer indexed funds. If the individual maxes the 401(k), they get the tax deferral now, but in the long run-makes less money (since indexed funds outperform actively managed funds).

A: I would max out the 401(k) contribution, even going above the matched contributions. Most 401(k) plans will offer one or more stock index funds as part of the plan, so you still are earning the maximum long term return in the Plan as you would outside the Plan.

The benefit of it being in the Plan is you won’t spend it (can’t, without a penalty), and the interest is cumulating tax deferred… meaning that you have more of your money (and your money’s money) working for you.

The only reason to not max out the 401(k) is if you think you will need to use it before retirement, and if you would face a penalty for early withdrawal.

Q: Could I become at least a millionaire by age 23 by trading options using a “Straddle” strategy every time?
I am 17 now, will be 18 in 2 months, I’ve read about all the different investment vehicles there are to make money. Because I live in the UK, I could trade CFDs (Contracts for Differences), but they don’t float my boat now. I’ve read into options trading, bought books, read blogs and articles on the subject, and I’ve been exploring into the many various strategies you can use to invest with and Straddles catch my eye. Straddles are strategies where in which you purchase a Long Call & Long Put with the same strike price, in which before the option has any value, the price of the stock must go strongly up or down. What I’d like to know is if I started with, say, £500 and tradeed stocks using Straddles every time, but once I made enough money, branched out and diversified my investment just to avoid losing everything, could I in 5 years, from age 18 to age 23, or as an alternative, by age 27 become a millionaire, and is this possible and has anybody ever done it in this short of time?

A: Straddles and their out of the money cousins Strangles, only work with high volatility underlyings as you use these strategies when you believe that the underlying will move by a large amount, but you don’t know which way (or you would just take the directional trade). First off, to make any money you need for the underlying to move by more than the premium before you can break even.
The problem with high volatility stocks is that this volatility is price into the option (Vega) and the higher the volatility, the more the option costs.

To be put into perspective, your £500 would buy you two options. Because of high cost of bank balance sheets and high Vega on stocks at the moment the average in the money option is running at around 15% premium. So for you to make any money overall, one leg of the option needs to move by 30% before you even break even.

This is a type of hedging strategy so will never make large amounts of money that you are thinking of, what you should do is study one or two areas of the AIM market and then trade CFD’s.

Being very honest, anyone who becomes a millionaire is very good at what they do. So the chances of you becoming a millionaire in the next 10 years through trading is very, very slim unless you are good at it.

Good luck and happy hunting

Q: Who still believes Global Warming is caused by man?
Global warming ethics, pork and profits

By Paul Driessen
web posted February 12, 2007

The ink has barely dried on its new code of conduct, and already Congress is redefining ethics and pork to fit a global warming agenda. As Will Rogers observed, “with Congress, every time they make a joke, it’s a law. And every time they make a law, it’s a joke.”

However, life-altering, economy-wrecking climate bills are no laughing matter. That’s why we need to recognize that the Kyoto Protocol and proposed “climate protection” laws will not stabilize the climate, even if CO2 is to blame. It’s why we must acknowledge that money to be made, and power to be gained, from climate alarmism and symbolism is a major reason so many are getting on the climate “consensus” bandwagon.

In accusing ExxonMobil of giving “more than $19 million since the late 1990s” to public policy institutes that promote climate holocaust “denial,” Senate Inquisitors Olympia Snowe and Jay Rockefeller slandered both the donor and recipients. Moreover, this is less than half of what Pew Charitable Trusts and allied foundations contributed to the Pew Center on Climate Change alone over the same period. It’s a pittance compared to what US environmental groups spent propagating climate chaos scare stories.

It amounts to 30 cents for every $1,000 that the US, EU and UN spent since 1993 (some $80 billion all together) on global warming catastrophe research. And it ignores the fact that the Exxon grants also supported malaria control, Third World economic development and many other efforts.

Aside from honest, if unfounded, fears of climate disasters, why might others support climate alarmism?

Scientists who use climate change to explain environmental changes improve their chances of getting research grants from foundations, corporations – and US government programs that budget a whopping $6.5 billion for global warming in 2007. They also increase the likelihood of getting headlines and quotes in news stories: “Climate change threatens extinction of rare frogs, scientist says.” Climate disaster skeptics face an uphill battle on grants, headlines and quotes.

Politicians get to grandstand green credentials, cement relationships with activists who can support reelection campaigns and higher aspirations, magically transform $14-billion in alternative energy pork into ethical planetary protection, and promote policies that otherwise would raise serious eyebrows.

Corporate actions that cause even one death are dealt with severely; but praise is heaped on federal mileage standards that cause hundreds of deaths, as cars are downsized and plasticized to save fuel and reduce emissions. High energy prices are denounced at congressional hearings, if due to market forces – but praised if imposed by government “to prevent climate change.” Drilling in the Arctic or off our coasts is condemned, even to create jobs, tax revenues and enhanced security; but subsidizing wind power to generate 2% of our electricity is lauded, even if giant turbines despoil millions of acres and kill millions of birds.

Alarmist rhetoric has also redefined corporate social responsibility, created the Climate Action Partnership and launched the emerging Enviro-Industrial Complex.

Environmental activists have turned climate fears into successful fund-raising tools – and a brilliant strategy for achieving their dream of controlling global resource use, technological change and economic development, through laws, treaties, regulations and pressure campaigns. Recent developments promise to supercharge these efforts.

Environmental Defense is collaborating with Morgan Stanley, to promote emission trading systems and other climate change initiatives – giving ED direct monetary and policy stakes in the banking, investment and political arenas, and in any carbon allowance or cap-and-trade programs Congress might enact. Other environmental groups, companies and Wall Street firms will no doubt follow their lead.

ED designed and led the disingenuous campaign that persuaded many healthcare agencies to ban DDT, resulting in millions of deaths from malaria. Greenpeace, Sierra Club, Union of Concerned Scientists, ED and other groups still post deceitful claims about DDT on their websites, further delaying progress against this killer disease. By blaming climate change for malaria, they deflect criticism for their vile actions.

Climate catastrophe claims enable activists to gain official advisory status with companies and governments on environmental issues. They also make it “ethical” for Rainforest Action Network and other pressure groups to oppose power generation in Third World countries, where few have access to electricity – and thereby keep communities perpetually impoverished.

Meanwhile, Prince Charles gets lionized for appropriating 62 first class jetliner seats for his entourage of 20, on a trans-Atlantic trip to receive an environmental prize and lecture Americans on saving the Earth – because at least he didn’t use his private jet.

Companies in the CAP and EIC can develop and promote new product lines, using tax breaks, subsidies, legal mandates and regulatory provisions to gain competitive advantages. They get favorable coverage from the media, and kid-glove treatment from members of Congress who routinely pillory climate chaos skeptics.

Some worry that this could become a license to further redefine corporate ethics, present self-interest as planet-saving altruism, and profit from questionable arrangements with environmental groups and Congress. Certainly, cap-and-trade rules will create valuable property rights and reward companies that reduce CO2 emissions, often by replacing old, inefficient, high-polluting plants that they want to retire anyway.

DuPont and BP will get money for biofuels, GE for its portfolio of climate protection equipment, ADM for ethanol, Lehman Brothers for emission trading and other deals. Environmental activists will be able to influence corporate, state and federal policy, and rake in still more cash. Insurance companies can blame global warming for rate increases and coverage denials.

Lobbying and deal-brokering will enter a new era. As Thenardier the innkeeper observed in Les Miserables, “When it comes to fixing prices, there are lots of tricks he knows. Jees, it’s just amazing how it grows.” Indeed, the opportunities to “game the system” will be limited only by one’s “eco-magination.”

To determine the losers, look in the mirror. Activists and politicians are creating a Frankenstein climate monster on steroids. Were it real, we’d need to dismantle our economy and living standards to slay the beast. How else could we eliminate 80–90% of US and EU fossil fuel emissions by 2050, to stabilize carbon dioxide emissions and (theoretically) a climate that has always been anything but stable?

Think lifestyles circa 1900, or earlier. Ponder the British environment minister’s latest prescription: World War II rationing, no meat or cheese, restrictions on air travel, no veggies that aren’t grown locally. France wants a new government agency that would single out, police and penalize countries that “abuse the Earth.” Others want to put little solar panels on African huts, while kleptocratic dictators get millions of dollars for trading away their people’s right to generate electricity and emit CO2.

We should improve energy efficiency, reduce pollution, and develop new energy technologies. But when we demand immediate action to prevent exaggerated or imaginary crises, we stifle debate, railroad through programs that don’t work, create enough pork to fill 50 Chicago stockyards, and impose horrendous unintended consequences on countless families. That is shortsighted and immoral.

A: EVERY CHILDREN OLDER THAN 5YR THAT IS STUDIING SCIENCE AT SCHOOL UNDERSTAND THAT HUMAN ACTIVITY ARE CAUSING Global Warming…

Q: Business class question dealing with taxes.?
JUST TAX THE RICH AND PAY OFF THE DEBT?

For years, economic was defined as the allocation of scarce resources among competing groups and individuals. No two groups would seem more in competition in a society than the rich and the poor. The feeling among many people is that the rich got rich by exploiting the poor (labor). In their search for more equality, some people suggest increasing taxes on the rich and giving the additional money to the poor. Such was the thinking behind most socialist governments.
The problem with such thinking is that there simply aren’t enough wealthy people making enough money so that by increasing their taxes the government would be able to pay for all its programs. A few years back, Forbes magazine reported that if the federal government took 100% of the income of the 35,875 millionaires in the U.S., the increase in revenue would run the government for just 12 days. If the total wealth of the 400 richest people in the U.S. were confiscated, it would pay for just three months.
Wealthy people make most of their money from investing in businesses. If the government were to increase their taxes, that investment money would no longer be there, and the economy would slow. Therefore, it is clear that taxing the rich isn’t a solution to the government’s problems. The tax burden always falls on the middle class, those people who are struggling to pay their mortgages, send their kids to school, and so forth. Increasing their taxes makes them poorer, and nobody feels better off. That’s why recent tax bills have cut the taxes on the middle class or offered them more benefits, such as a start in college for their children.
The only long-term solution to meeting government needs is for the economy to grow. That increases the size of the pie and makes it possible for everyone to have more without taking it from someone else. The problem is that growth strategies are directly in conflict with goals of more equality. Growth often comes from cutting taxes on the rich. That encourages them to invest more and to make the economy grow.

discussion questions for supplemental case 2-2:

1. Recently Sweden joined many of the other nations in the world in cutting taxes. The Swedish people also voted against a socialist government. Taxing the rich is no longer the preferred way to balance government budgets. What are the alternatives?

2. There are thousands of millionaires and some billionaires in the United States. What are the advantages and disadvantages of taxing such people at much higher rates than now prevail?

So, this was a question we received on a test in my business class on Monday. I got it wrong, and I am just curious as to what a good answer would have been.
Bostonian…. I didn’t include my answer in this, so how would you know whether I know what I’m talking about or not?
That long paragraph before the questions was part of the test.

A: The Forbes article is disingenuous at best. It assumes that those 35,875 millionaires are worth exactly $1 million and no more. Since a billionaire is also a millionaire, confiscation of the wealth of the top 35,875 richest Americans would wipe out the deficit in one fell swoop and probably leave enough to fund most government operations in perpetuity if it were properly invested in high-quality commercial securities.

Tossing about terms like “socialist” and “socialism ” while obviously not knowing what the terms really mean pretty much guarantees that you will get a poor grade.

Re-think your position from an ECONOMIC standpoint, not a POLITICAL standpoint. While reality can be hard to pinpoint in complex economic issues, it’s absolutely obscured by a thick fog when viewed politically.

Q: I think I have a very feasible idea/concept that needs an “angel” investor. How can I find one?
In the near future, more and more people will rely less on desktops and instead opt for web based applications. The major players (Google, Amazon, IBM) are positioning themselves in varying implementation of “Cloud” concept strategies. I feel that there are cheaper alternatives to the “Cloud concept” but will require a multi-pronged approach in software, firmware and hardware development that require investments I cannot afford. “Angel investors” are non-existent in my part of the world. Where can I get in touch with any investor that is willing to evaluate my concept/idea?

A: Business 2.0 http://money.cnn.com/2006/02/28/magazines/business2/angelinvestor/index.htm has a very good article on angel investors, what they typically look for, what kind of investments they support, etc.

You may want to go and pitch your ideas where investors gather. Here are some places where angel investors come and those looking for funding can come and pitch their business plans. Be sure to have a strong business plan and describe what makes your business idea stand apart:

Angel Capital Association http://www.angelcapitalassociation.org
Angel’s Forum http://www.angelsforum.com
Band of Angels http://www.bandangels.com
Common Angels http://www.commonangels.com
Keiretsu Forum http://www.k4forum.com
Launchpad Venture Group http://www.launchpadventuregroup.com
New World Angels http://www.newworldangels.com
New York Angels http://www.newyorkangels.com
Robin Hood Ventures http://www.robinhoodventures.com (charges $250)

Q: appliction for live stock quote on mobile phone?

A: I’m using Quotestream Wireless (quotestream.com).

Models officially available and supported:

* RIM (BlackBerry):
8100 (Pearl), 8700, 7100g, 7100r, 7100t, 7730, 7750, 7780, 7510, 7520, 7230, 7250, 7270, 7280, 7290
6750, 6720, 6710, 6230, 6220, 6210, 8800, 8830, Curve 8300

Carriers Supported:
AllTel, Cingular, Nextel, Telus, Rogers, Bell, T-Mobile, Verizon
AllTel requires 3rd Party Provisioning

Users with other wireless operators like UK Vodafone, Cincinnati Bell may be able to use the Custom/Advance option
* Motorola:
A1000, A630, A780, A845, A830, C975, E1000, E398, E550, E680, I730, i830,
V80, V300, V360, V400, V500, V550, V600, V620, V635, V975
* Nokia:
3155, 3155i, 3220, 3230, 5140, 6020, 6021, 6030, 6101, 6102, 6155, 6155i, 6230, 6230i,
6235, 6260, 6600, 6620, 6630, 6670, 6680, 6681, 6822, 7260, 7610
* palmOne:
Treo 600, Treo 650, Tungsten T5
** Note palmOne devices require a JVM to run Java Applications **
* Siemens:
CX65, M65, S65,S66, SK65
* SonyEricsson:
F500, J300, K300, K500, K508, K600, K700, K750, P900, P910, S700,
V800, Z1010, Z500, Z800
* Tapwave:
Zodiac

Models unofficially available:

* Audiovox:
SMT 5600
* Motorola:
MPx200,Razr V3
* Motorola iDEN:
i730 and i830 – Soon to be available ONLY through the iDEN Update Network
* Samsung:
D415, SGH-D500, SGH-P730, SGH-E600C, SPH-A700, SPH-i700,
SPH-700
* Sanyo:
MM-7400

Models Not Listed:
In general, Quotestream will work with any Java/J2ME (MIDP 2.0/CLDC 1.0) compliant mobile device, see your manufacturer guide for more details. As well answers to any difficulties you are having maybe available in the Trouble Shooting and/or FAQ section.

Q: i want to buy a mobile phone.i require it to trade in stocks and getting live stock quotes. kindly guide….?

A: as you are a stock trader in the indian stock market, you can visit some leading sites offering sms on mobile phone. http://crninida.com
www.crnindia.com/sms_define.html

Q: i have T-Mobile phone service, how do i enable the POP access it asks me to enable?
i get yahoo alerts on my phone like horoscopes and a stock quote but i do not get alerts on my phone for when i get a new e-mail. i set this up when i upgraded to a new nokia 5300 phone and it worked for like a week or two then just stoped.

A: Check with T-Mobile to ensure the service is set up properly as you may have been on a temp setup

Q: Nokia 6500 Mobile / Cell phone – Where best to buy?
Wish to purchase another of these phones to replace one of our older phones. I will remain with the 3 Carrier (Australia) as I have two phones on a combined plan and one which is prepaid, and we make good use of “free” calls to 3. I do not wish to change the plan that I am on and therefore will need to buy the phone outright.

Have been quoted $269 AU by 3 and their stocks are now running low – no longer manufactured. Have been very happy with this phone though which is why we are quite content to buy another. Looking for a better price if possible.
Nokia 6500 Slide that is.

A: Sorry unable to help as i’m in the UK!!

Q: what is the errors in this document?
In Recent years, laptops and personal digital assistants have made computing away from the desk fairly common. In the future, such mobile computing will become ubiquitous. A specification for a Handheld Device Markup Language (HDML) for mobile computers with screens similar to those in cellular telephones has been proposed by the W3 consortium. The W3 consortium is the organization the develops new versions of the Hypertext Markup W3 Consortium is the organization that develops new versions of the Hypertext Markup Language (HTML) used to create documents for the World Wide Web. HDML will make cellular phones smarter, allowing people to use wireless communications to read the days, check stock quotes, browse through catalogs, and place orders for goods and services.

A: Recent (no capital)
Consortium (capitalize)
Sentence three has duplication
“read the days” makes no sense