Why is it important to study the strategies of history and the ancient art of war today? Has military strategy essentially changed over the years? In part two of this week’s podcast, Andrew R. Wilson, Professor of Strategy and Policy at the United States Naval War College, and prolific author on the subject of Chinese military history, explains why the lessons of history are so important today.
Posts Tagged ‘Finances’
Can Americas economic problems be solved? Is there an end to the deficit, and is the U.S. economy really that bad? In the first part of this week’s Goldstein on Gelt podcast, Doug meets David Leonhardt, Washington bureau chief of The New York Times and author of Heres the Deal: How Washington Can Solve the Deficit and Spur Growth. Find out about Washingtons deficit problem and some possible solutions to Americas economic difficulties by listening to the part of this weeks podcast.
Are you looking for a diversified portfolio and to have the final say on your investments, but you don’t have time to research the many stocks, bonds, and funds that are out there? If so, it might be time to call your financial advisor and ask him to find you a money manager.
If you already have a financial advisor, why do you need a money manager?
Whereas a financial advisor helps you plan your retirement, a money manager, which is often a professional investment firm, handles the day-to-day transactions in your portfolio. The focus is somewhat different and more specific, and very often both professionals work together.
Here are three reasons why a money manager is useful:
1. Take the headache out of investing
While you may be happy to have more of a say in your investments, you don’t necessarily want the headache that goes along with managing them on a day-to-day basis. In your everyday life, you don’t have the time to sit down and pore over market reports, charts, and other relevant information. And even if you did, unless you are a part of the financial world yourself, you would probably find it hard to interpret them correctly enough to benefit your situation. For this reason, it’s worthwhile to use a money manager, whose extensive knowledge and resources are now at your disposal.
2. A money manager can give you more of a say
A money manager can put your money into an SMA, or separately managed account. Once upon a time SMAs were strictly for the very rich, but they can now be opened with a starting sum beginning at $50,000.
Unlike a mutual fund, where you own a part of the fund controlling your investments, an SMA gives you the opportunity to become an actual owner of the stocks that are in your portfolio. This is more direct, and it gives you more of a say. Directly owning the individual shares (as opposed to owning shares in a mutual fund) can be beneficial when selling for tax purposes.
Learn more about SMAs and if they might be appropriate for you, by watching a short movie.
3. Widen your horizons
The great thing about using money managers is they provide you with greater financial resources than if you were on your own. Many money managers follow a policy of “open architecture,” which means that there can be a wider variety of investment accounts than in the average mutual fund. And with all of the information and expertise at their fingertips, a money manager can help you to build a portfolio that is more tailored to your specific needs, with the right balance for you of large cap or small cap stocks, bonds, or foreign stocks, and more.
To find out whether you need a money manager or an SMA, call your financial advisor today.
In the first half of this week’s podcast, Doug meets Jim Rogers, the author of Street Smarts Adventures on the Road and in the Markets. Jim is also an author, investment expert, and financial commentator who has appeared in various publications, including Time, The Washington Post, The New York Times, Forbes, Fortune, and more. Jim tells Doug about investing in commodities and why it is advantageous to invest in what you know. Find out more by listening to this interesting podcast.
Are you, or someone close to you, thinking of making aliyah? If so, you’ll probably use the services of Nefesh B’Nefesh, because it’s much easier to settle in a new country with their help. The same principle applies to your finances. It’s much easier to manage your money with the help of a financial advisor.
As most olim will tell you, there’s a lot to do when first settling in. You need to get used to a new language and climate and at the same time, you must find work and a home. The various aliyah organizations, from Nefesh b’Nefesh to the AACI, ESRA, and many more, are all on hand to provide advice, information, and moral support, making your transition into Israeli society much smoother. Through them, you will find out the best job opportunities – or how to retrain in your profession if that’s what is necessary. You will also get a clearer picture of your rights and what kinds of assistance exist for new immigrants. And some of these organizations also provide cultural and social activities, helping you to build up new friendships in your new country.
In the same way, when you want to begin investing, going it alone is not such a good idea. Do you have the time to do all of the necessary research into investments and markets? Are you familiar with the investment and tax problems that U.S. expatriates have? And do you have the financial background to understand the all the available information? Remember that time is also money, and you can lose a lot of money through inefficient investing.
So if you want to manage your finances more effectively, don’t go it alone. Get some help and make a plan. Call your financial planner today.
This week, meet Michael K. Salemi, professor emeritus at the University of North Carolina-Chapel Hill. His many writings include Money, Banking, and Financial Markets: What Everyone Should Know. What do you need to know about your finances and the world of banking? Find out by listening to this weeks show.
One of the reasons why many investors fail in their investments is because they are driven by their emotions. This problem is studied by academics who specialize in an area known as behavioral finance.
People make decisions for all sorts of reasons, but when you make an investment decision based on emotion, not fact, you stand to lose your head, heart, and pocketbook.
For example, sometimes investors hear some positive news about a certain stock and they rush to buy it simply because they feel good about it. They haven’t necessarily researched its individual merits, or checked it against their financial plan to see if it fits with their overall investment goals. They just make a sudden investment decision.
Have you ever done that?
Many investors are driven by fear or excitement, and in both cases their surging adrenaline may help them in a “fight or flight” situation, but not with their investment portfolio.
If an investor is too fearful, he could end up either selling a stock needlessly or not developing his investment potential enough. But sometimes investors don’t have enough fear and they become the victims of Ponzi schemes and other scams.
I recently spoke with Professor Meir Statman, author of What Investors Really Want, on the Goldstein on Gelt show, and I asked him why he thought people let their emotions get the better of them. He replied, “People follow their intuition, and their intuition says that they can tell the difference between honest people and dishonest ones. Dishonest people take advantage of precisely that.” (Click here to hear more of what Professor Statman has to say.)
In the ideal world, investors have the time and resources to take a step back from their emotions and properly research financial moves. But in the real world, who has the time, financial background, or desire to educate themselves properly before making rational investment decisions?
What’s the solution for avoiding the pitfalls of emotional investing?
Find an effective and reliable financial planner. A financial planner has the knowledge and background necessary for researching and assessing various investments and finding out which ones are the most appropriate for you and your financial goals. For this reason, it’s worthwhile taking the time and calling your financial planner today.
Having an objective certified professional oversee your investments is the best way to prevent yourself from falling into the trap of emotional investing.