tag:blogger.com,1999:blog-89014962476088602462024-02-02T12:28:34.058+08:00How to be Rich, Happy and Free from ScamsJanny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.comBlogger2252125tag:blogger.com,1999:blog-8901496247608860246.post-81772668544385397272017-11-01T12:11:00.001+08:002017-11-01T12:11:01.571+08:00Warren Buffett’s favorite market metric suggests investors are ‘playing with fire’
<div align="left"><p dir="ltr">By <a href="http://www.marketwatch.com/topics/journalists/shawn-langlois">Shawn Langlois</a><br></p></div>
<p dir="ltr">Published: Oct 31, 2017 1:35 p.m. ET</p>
<p dir="ltr">SHARE</p>
<p dir="ltr"> </p>
<p dir="ltr">101</p>
<p dir="ltr">‘If you stick your head in the sand and pretend that this isn’t anything to be concerned about, you aren’t going to like what comes next.’</p>
<p dir="ltr"><img src="https://ei.marketwatch.com//Multimedia/2016/04/30/Photos/ZH/MW-EL702_berksh_20160430120924_ZH.jpg?uuid=e93e74ca-0eed-11e6-8e7f-0015c588dfa6"><i>Reuters</i></p>
<p dir="ltr">Warren Buffett participates in the newspaper tossing challenge.</p>
<p dir="ltr">Warren Buffett once described his favorite market indicator as “the best single measure of where valuations stand at any given moment” and that when the metric exceeds certain levels, like it did back in 2000, “you are playing with fire.”</p>
<p dir="ltr">If that’s the case, investors might want to blow out that candle.</p>
<p dir="ltr">Put simply, the Buffett indicator is the total market capitalization of all U.S. stocks relative to the country’s gross domestic product. When it’s in the 70% to 80% range, it’s go time. When it moves well above 100%, it’s time to tap the brakes.</p>
<p dir="ltr">The metric sits at almost 139% at the moment, which is getting awfully close to the record 145% it hit during the peak of the dot-com bubble in 2000, the only other time the number has been this high, according to the Daily Reckoning blog’s Jody Chudley</p>
<p dir="ltr">“The chart below shows the peak of the ‘Buffett-Metric’ in 2000 and the subsequent fall,” he <a href="https://dailyreckoning.com/buffetts-indicator-calling-tops/">wrote in a post on Tuesday</a>. “The chart also shows how frothy the reading is on this metric today.”</p>
<p dir="ltr"><img src="https://ei.marketwatch.com//Multimedia/2017/10/31/Photos/NS/MW-FX374_market_20171031131501_NS.png?uuid=07b0d2be-be5f-11e7-9188-9c8e992d421e"></p>
<p dir="ltr">As you can see, the last time this indicator reached this level, there was much carnage to follow. Chudley advises against ignoring the warning signs.</p>
<p dir="ltr">“If you stick your head in the sand and pretend that this isn’t anything to be concerned about, you aren’t going to like what comes next,” he said.</p>
<p dir="ltr">The reason, Chudley says, for the spike is different from the one driving the lofty valuations of the Pets.com days. This time around it’s about the massive flow of money into passive index funds and ETFs in recent years, as shown in this chart:</p>
<p dir="ltr"><img src="https://ei.marketwatch.com//Multimedia/2017/10/31/Photos/NS/MW-FX375_092617_20171031132002_NS.jpg?uuid=bac1c822-be5f-11e7-a599-9c8e992d421e"></p>
<p dir="ltr">“These passive vehicles buy the exact same stocks with no thought whatsoever given to valuation,” he explained. If you give an index fund a million dollars it is just as happy to buy stocks trading at 3,000 times earnings as it is to buy stocks trading at 6 times earnings. This is mindless investing.”</p>
<p dir="ltr">“Mindless” isn’t an insult, considering that’s the whole idea of an index fund, but it can yield some “strange” and potentially painful results, Chudley said.</p>
<p dir="ltr">“All of this mindless index fund money ends up chasing the same stocks, the stocks that make up the underlying indices,” he said. “With hundreds of billions of mindless dollars chasing the same stocks, you end up with some crazy valuations.”</p>
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Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com1tag:blogger.com,1999:blog-8901496247608860246.post-60560276884205509642017-11-01T12:06:00.001+08:002017-11-01T12:06:50.146+08:00Three money managers who lived through the 1987 stock-market crash warn of danger today<div align="left"><p dir="ltr">By <a href="http://www.marketwatch.com/topics/journalists/philip-van-doorn">Philip van Doorn</a><br></p></div>
<p dir="ltr">Published: Oct 31, 2017 1:49 p.m. ET</p>
<p dir="ltr">SHARE</p>
<p dir="ltr"> </p>
<p dir="ltr">‘I would take some money off now because ... there are clear signs of deranged valuations,’ says Gabelli fund manager Lawrence Haverty</p>
<p dir="ltr"><img src="https://ei.marketwatch.com//Multimedia/2017/10/17/Photos/ZH/MW-FW428_1987_s_20171017113031_ZH.jpg?uuid=1c9b9d04-b350-11e7-85d3-9c8e992d421e"><i>Getty Images</i></p>
<p dir="ltr">A trader on the New York Stock Exchange on Oct. 19, 1987 — Black Monday.</p>
<p dir="ltr">When the stock market crashed on Oct. 19, 1987, investors panicked. It was an unfamiliar event — the previous decline of a similar magnitude occurred 58 years earlier, in 1929.</p>
<p dir="ltr">Now, 30 years after Black Monday in 1987, there are professional investors still at work who lived through that fateful day. In interviews, three of them talked about their experiences, offered insights into warning signs and gave advice on how to handle major downturns.</p>
<p dir="ltr">They are:</p>
<p dir="ltr">• <b>Lewis Altfest</b>, president of Altfest Personal Wealth Management, which manages about $1.3 billion for private clients. Altfest founded the firm in 1983 after working as a general partner and director of research at Lord, Abbett & Co.</p>
<p dir="ltr">• <b>Brian McMahon</b>, chief investment officer of Thornburg Investment Management, co-manages the $2.5 billion Thornburg Global Opportunities Fund <a href="https://www.marketwatch.com/investing/fund/thoax?mod=MW_story_quote">THOAX, +1.06%</a> and the $16.1 billion Thornburg Investment Income Builder Fund<a href="https://www.marketwatch.com/investing/fund/tibax?mod=MW_story_quote">TIBAX, -0.14%</a> In October 1987, McMahon was managing Thornburg’s laddered maturity bond portfolios.</p>
<p dir="ltr">• <b>Lawrence Haverty</b>, associate portfolio manager of the $231 million Gabelli Multi-Media Trust<a href="https://www.marketwatch.com/investing/stock/ggt?mod=MW_story_quote">GGT, +1.71%</a> In October 1987, Haverty co-managed the Putnam Growth Fund and the Putnam Convertible Fund, which had combined assets of about $2 billion.</p>
<p dir="ltr">First, let’s take a look at a chart showing the Dow Jones Industrial Average <a href="https://www.marketwatch.com/investing/index/djia?mod=MW_story_quote">DJIA, +0.12%</a> from 1987 through 1989:</p>
<p dir="ltr"><img src="https://ei.marketwatch.com//Multimedia/2017/10/17/Photos/NS/MW-FW417_djicra_20171017101801_NS.png?uuid=fbb49136-b345-11e7-80cd-9c8e992d421e"><i>FactSet</i></p>
<p dir="ltr">The Dow dropped 4% on Friday, Oct. 16, 1987, and then plunged 23% on Black Monday.</p>
<p dir="ltr">There were many factors contributing to what was an unprecedented event to almost everyone on Wall Street. Those included a 44% run-up for the Dow from the end of 1986 through Aug. 25, 1987.</p>
<p dir="ltr">That jump was spurred, in part, by the Tax Reform Act of 1986. Long-term interest rates were rising quickly, which fed the atmosphere of uncertainty. The wild selling on Black Monday was driven in great part by the use of “so-called portfolio insurance, which everyone was selling and was basically stop-loss orders,” according to McMahon.</p>
<p dir="ltr"><b>Also see: </b><a href="https://www.marketwatch.com/story/heres-one-key-factor-that-amplified-the-1987-stock-market-crash-2017-10-16">Here’s one key factor that amplified the 1987 stock-market crash</a></p>
<p dir="ltr">The New York Stock Exchange now has “circuit breakers” to temporarily halt trading on days of major declines. But those measures don’t prevent drops over multiple trading sessions.</p>
<p dir="ltr"><b><span style="font-size:1.00em;">Heading into Black Monday</span></b></p>
<p dir="ltr">“When my clients get nervous, they call,” Altfest said.</p>
<p dir="ltr">So after the Oct. 16, 1987, decline, he went to his office the next day, a Saturday, to make himself available to them. He tried to keep clients from panic-selling, but during a period of market turmoil, memories are short and people lose faith in the market’s ability to recover and set new records.</p>
<p dir="ltr"><img src="https://ei.marketwatch.com//Multimedia/2017/10/18/Photos/MG/MW-FW491_Altfes_20171018081822_MG.jpg?uuid=6f294018-b3fe-11e7-9363-9c8e992d421e"><i>Altfest Personal Wealth Management</i></p>
<p dir="ltr">Lewis Altfest, president of Altfest Personal Wealth Management.</p>
<p dir="ltr">“Many people just got out and waited until the market came back sizably, before getting back in. So that didn’t turn out so well for them,” Altfest said.</p>
<p dir="ltr">Charles Schwab Corp. had begun taking client orders on weekends to be executed on Monday. “I called them and said I wanted to know the ratio of buy orders to sells. The sells were ... maybe 12 to 1. So then I put in orders for about an 8% drop in the market,” Altfest said.</p>
<p dir="ltr">Altfest went in with heavy investments of accumulated cash after the Dow dropped 8% early on Black Monday. He couldn’t know that the market would decline another 15% that day, but said, “I was thrilled eventually” after the market recovered.</p>
<p dir="ltr">Black Monday was also a rough one for bond investors. A sharp movement in yields for 30-year U.S. Treasury bonds helped set the stage, with the yield jumping to 9.61% on Oct. 1, 1987, from 7.39% at the beginning of the year, <a href="https://fred.stlouisfed.org/data/GS30.txt">according to the Federal Reserve</a>.</p>
<p dir="ltr">“Today, if bond rates were to go up [by a similar amount], it would probably send a shudder through equity markets. So we went out of 1986 through most of 1987 with quite a bit of enthusiasm for equities,” McMahon said.</p>
<p dir="ltr"><img src="https://ei.marketwatch.com//Multimedia/2017/10/18/Photos/MG/MW-FW522_McMaho_20171018123316_MG.jpg?uuid=0b281db8-b422-11e7-8ae2-9c8e992d421e"><i>Thornburg Investment Management</i></p>
<p dir="ltr">Brian McMahon, chief investment officer of Thornburg Investment Management.</p>
<p dir="ltr">“I was not managing equity money then, but people were selling whatever they could sell. In my case, we were able to buy pre-refunded municipal bonds with [yields] in the teens,” McMahon said.</p>
<p dir="ltr">Haverty quoted a colleague of his who said “higher interest rates work,” which means rising rates can quell an overheated economy and inflation, “but eventually higher interest rates would cause problems,” he said.</p>
<p dir="ltr"><b>Read: </b><a href="https://www.marketwatch.com/story/black-monday-was-baptism-by-fire-for-these-wall-street-pros-2017-10-16">Wall Street pros recall ‘sheer panic’ of October 1987 stock-market crash</a></p>
<p dir="ltr">Haverty pointed out that October 1987 was part of the “Milken Era,” when Michael Milken and Drexel Burnham Lambert took advantage of investors’ hunger for high yields and pioneered varieties of high-yield debt securities.</p>
<p dir="ltr">“When I took over the convertible fund in 1984, it had $200 million in assets and we grew it to over a billion and a half dollars [in 1987], which was a huge amount of money in a small asset class at that point,” Haverty said.</p>
<p dir="ltr">He saw clear signs that the market for convertible bonds was overheated heading into the October crash. “Either you got good companies issuing convertibles at a preposterous price, or you got preposterous companies issuing convertibles at good prices,” he said.</p>
<p dir="ltr"><img src="https://ei.marketwatch.com//Multimedia/2017/10/18/Photos/MG/MW-FW536_Havert_20171018155605_MG.jpg?uuid=608d1666-b43e-11e7-a26e-9c8e992d421e"><i>Gabelli Funds</i></p>
<p dir="ltr">Lawrence Haverty, associate portfolio manager of the Gabelli Multi-Media Trust.</p>
<p dir="ltr">Early on Tuesday, the day after Black Monday, Haverty “felt very comfortable” after the Federal Reserve made “a powerful statement” before the market open. He said that expressing his newfound confidence, while describing his decision for one of his funds to purchase shares of Caesars World (now Caesars Entertainment Corp. <a href="https://www.marketwatch.com/investing/stock/czr?mod=MW_story_quote">CZR, +2.78%</a> ) on Tuesday to his superiors at Putnam, eventually led to his firing in December 1987.</p>
<p dir="ltr">“I still have nobody to counterclaim my being the first professional fired” as a result of the crash, he said. The story had a happy ending, however. After receiving his severance pay in December, Haverty bought Caesars shares for himself and made “10 times on my investment,” he said.</p>
<p dir="ltr"><b><span style="font-size:1.00em;">Warning signs in the market today</span></b></p>
<p dir="ltr">“I think the bond market is generally overvalued, so it wouldn’t surprise me if we were to see upward pressure on interest rates and the widening of spreads on corporate credit,” McMahon said. Along with the Federal Reserve’s plan to draw down its securities investments by $30 billion a month, a possible tax-reform bill would lead investors to expect the economy to heat up, which would push interest rates higher and bond prices lower. Higher interest rates typically mean more volatility for stocks.</p>
<p dir="ltr">“I think that relative to norms, the market has an extra 20% in it,” Altfest said.</p>
<p dir="ltr">He made it clear that he was not predicting an immediate decline and that the current market is different from 1987’s, as well as the late 1990s tech bubble and the pre-crisis climate of 2007.</p>
<p dir="ltr">Haverty sees valuations of some stocks as serious warning signs for the health of the market.</p>
<p dir="ltr">“I work in the media area and have been totally wrong about Amazon and Netflix,” he said. “People are paying multiples of cash flows for these business (which essentially are not economically profitable) that basically defy gravity.”</p>
<p dir="ltr">As of Tuesday’s market close, shares of Amazon.com Inc. <a href="https://www.marketwatch.com/investing/stock/amzn?mod=MW_story_quote">AMZN, -0.50%</a> traded for 127 times the consensus 2018 earnings-per-share estimate among analysts polled by FactSet, while Netflix Inc. <a href="https://www.marketwatch.com/investing/stock/nflx?mod=MW_story_quote">NFLX, -0.98%</a> traded for 89 times estimated 2018 EPS.</p>
<p dir="ltr">This chart shows how the ratio of price to trailing 12 months’ earnings has changed for the benchmark S&P 500 Index <a href="https://www.marketwatch.com/investing/index/spx?mod=MW_story_quote">SPX, +0.09%</a> since 1999:</p>
<p dir="ltr"><img src="https://ei.marketwatch.com//Multimedia/2017/10/18/Photos/NS/MW-FW533_spxpe_20171018155001_NS.png?uuid=8785ec08-b43d-11e7-a060-9c8e992d421e"><i>FactSet</i></p>
<p dir="ltr">So valuations have risen considerably during the bull market that began in March 2009. But we’re nowhere near the levels of March 2000, when S&P 500 member companies were trading for a weighted 30.5 times trailing earnings, according to FactSet.</p>
<p dir="ltr">Haverty said investors’ “mad quest for yield,” after so many years of very low interest rates, was a dire warning sign for the market. He cited the <a href="https://www.wsj.com/articles/junk-bond-boom-reaches-far-corners-of-the-world-1507714202">popularity of Tajikistan’s government bonds</a> as one example.</p>
<p dir="ltr"><span style="font-size:1.00em;"><b>Advice for investors</b></span></p>
<p dir="ltr">“I would say, if people are exposed to the frothier edge of the bond market, to take some gains,” McMahon said.</p>
<p dir="ltr">Altfest advises investors to “look at whether the companies they invest in are making money and how high the P/E ratios are.” Then, if the market takes a big fall, “take a deep breath and go outside,” he said.</p>
<p dir="ltr">In other words, keep in mind that the stock market has always recovered from crashes. If you wish to time the market, the danger is that you will wait too long for the market to recover before you jump back in. You will miss opportunities and possibly even buy back in at a higher level than the market was at when you sold. History shows that most non-professionals were better off not selling into a panic.</p>
<p dir="ltr">Haverty said that despite his opinion that stock valuations are very high, he is nearly 100% invested in equities. But when asked what he would do right now if he were a non-professional investor, he said: “I would take some money off now because valuations are high and there are clear signs of deranged valuations.”</p>
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Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com1tag:blogger.com,1999:blog-8901496247608860246.post-5490764557512950502017-10-26T03:42:00.001+08:002017-10-26T03:42:24.289+08:007 troubling signs of the stock market<div align="left" ><p dir="ltr">The futility of naysaying the stock market is well-documented over the last several years. Maybe the stock market is “overvalued” according to someone’s pet metric, but a crash never seems to transpire. Maybe political crises create the risk of chaos in Europe or Asia, but the global economy soldiers on without a hitch.<br>
</p>
</div><div align="center" ><p dir="ltr"><br>
Regardless of investor trepidation, the S&P 500 index <a href="http://www.marketwatch.com/investing/index/spx?mod=MW_story_quote">SPX, -0.41%</a>   keeps setting new records. In fact, Wall Street has recorded its longest streak of record closes in two decades.</p>
<p dir="ltr">So why worry?</p>
<p dir="ltr">After all, the economy looks good. <a href="http://www.marketwatch.com/story/consumer-confidence-back-near-16-year-high-2017-07-25">Consumer confidence is up against the highest level in 16 years</a>, and the headline unemployment rate is back to pre-recession lows. It’s logical that the stock market would rally strongly on this data.</p>
<p dir="ltr">Of course, markets simply don’t go up forever.</p>
<p dir="ltr">I’m not saying a crash is around the corner. But as the old saying goes, if you look around the poker table and can’t find the sucker… then it’s you. I’m a firm believer in always knowing the other side of the trade to make sure I’m truly looking at the market from all angles.</p>
<p dir="ltr">Those who aren’t prepared for a market crash — or at least a 10% to 20% correction — may be caught flat-footed and suffer serious portfolio declines as a result.</p>
<p dir="ltr">For those wondering about the health of the market or simply looking for the contrarian view, here are seven troubling signs that may give you pause:</p>
<p dir="ltr"><b>Growth may be peaking.</b> The momentum behind the stock market has a ton of hard metrics behind it, including the ISM Manufacturing index that <a href="http://www.marketwatch.com/story/key-yardstick-of-us-manufacturers-touches-highest-level-since-2004-ism-finds-2017-10-02">hit a nearly 14-year high for September</a>. However, <a href="https://finance.yahoo.com/news/goldman-sachs-warns-peak-growth-falling-stock-prices-3-6-months-100353338.html">Goldman Sachs recently warned</a> that some of these levels are simply unsustainable — particularly the inflated ISM reading above 60 (anything above 50 signals growth), which has typically marked the beginning of the end. “Since 1980, the ISM has exceeded 60 in eight separate episodes; four of those lasted only one month,” Goldman warns, before adding that “Investors buying the S&P 500 at ISM readings of 60 or higher have gone on to suffer negative three- and six-month returns on average as economic activity slowed.”<br>
</p>
</div><div align="center" ><p dir="ltr"><br>
Record highs in economic data are good, but highs necessarily can’t last forever and some mean reversion is in order.</p>
<p dir="ltr"><b>Earnings aren’t all grand.</b> In a recent white paper, State Street Global Advisors made the case that “earnings may not be as strong as you think.” Chief Investment Strategist Michael Arone points to the roughly 110% earnings growth in energy from a year ago as a big driver of the overall growth for the S&P 500 — though year-over-year growth is a meager 3% total for the third quarter even accounting for energy’s big snap-back. Similarly, he points to the third quarter of 2016, which marked the end of the so-called “<a href="http://www.marketwatch.com/story/why-the-end-of-the-earnings-recession-doesnt-guarantee-stock-market-gains-2017-03-08">earnings recession</a>” where profits were stuck in regular declines. That will fall out of year-over-year comparisons and mean a higher bar to hurdle in the fourth quarter and into 2018, even if earnings look reasonably rosy at present.</p>
<p dir="ltr"><b>Things are too quiet.</b> There’s a lot of talk about how the bull market is long in the tooth after running for roughly 8½ years without a 10% correction. But <a href="https://lplresearch.com/2017/10/22/here-it-comes-the-longest-streak-ever-without-a-3-correction/">a recent analysis of the S&P 500 index from LPLResearch</a> noted “33 consecutive sessions without a 0.5% daily decline, which is the longest streak since 1995” and that in 2017 the S&P has “closed lower 1% or more only four times — the fewest for a full year since 1964.”</p>
<p dir="ltr">You could say this is a new normal… or you might start wondering when the other shoe will drop.</p>
<p dir="ltr"><b>The charts hint at trouble.</b> BTIG chart-watcher Katie Stockton has pointed to a number of technical patterns that individually hint that caution is warranted, but collectively form a “<a href="http://www.marketwatch.com/story/heres-why-one-chart-watchers-says-the-stock-market-is-finally-ready-for-a-pullback-2017-10-23">perfect condition</a>” for a pullback. From markets trading above long-term trend lines to sentiment indicators showing “prolonged overbought conditions,” there are some structural issues that could make it quite difficult for the stock market in general to build on this recent broad rally.</p>
<p dir="ltr"><b>Investors are wide-eyed optimists.</b> While there remain some vocal worrywarts out there, overall sentiment is something approaching glee. The latest survey from the American Association of Individual Investors once again points to bullishness above historic norms, and a recent University of Michigan sentiment survey showed <a href="http://www.marketwatch.com/story/retail-investors-see-this-as-the-best-time-ever-to-jump-into-stocks-time-to-worry-2017-10-18">more than 65% of respondents expect stock prices will be higher in one year</a> — higher than even the pre-crisis euphoria in 2007 and 2008.</p>
<p dir="ltr">This is not to say stocks have to crash, but the phrase “irrational exuberance” exists for a reason. And taken in concert with the lack of volatility, it’s worth wondering if investors are being naive about the risks associated with this market.</p>
<p dir="ltr"><b>Where’s the pro-business agenda?</b> Most investors are biting their nails at the prospect of tax reform, knowing that a big reason this market has rallied in 2017 is because of the expectation of pro-business moves from Washington. Instead, we got a failed Obamacare repeal and heap of White House distractions. That makes the need for tax cuts — forget any pie-the-sky notion of reforms — crucial in the next two months. Policy makers know it too. <a href="http://www.politico.com/story/2017/10/18/mnuchin-tax-bill-markets-tank-243890">Treasury Secretary Steven Mnuchin admitting recently:</a> “To the extent we get the tax deal done, the stock market will go up higher. But there is no question in my mind if we don’t get it done you are going to see a reversal of a significant amount of these gains.”</p>
<p dir="ltr">The question for investors after this train wreck of a 115th Congress, is whether they think the former is more realistic than the latter.</p>
<p dir="ltr"><b>“Have nots” are not fine.</b> Beyond the hard data of the economy and real-world events that may move the stock market, it’s important to remember that the numbers don’t tell the whole story. There is a serious pessimism for many workers and consumers despite high-level metrics that are strong. That’s because, frankly, they haven’t participated in general growth we’ve seen over the last decade or so and instead are suffering from specific troubles that don’t show up in vanilla metrics about employment or spending.</p>
<p dir="ltr">If Donald Trump’s election hasn’t driven home the reality of this trend yet, then how about the <a href="https://www.linkedin.com/pulse/our-biggest-economic-social-political-issue-two-economies-ray-dalio/">latest missive from Bridgewater CEO and hedge fund icon Ray Dalio</a>? He begins by warning that “it is a serious mistake to look at average statistics.. . because the wealth and income skews are so great that average statistics no longer reflect the conditions of the average man.” It’s a good reminder of how a theoretically healthy economy and stock market may not be as big a cause for celebration as many seem to think.</p>
</div>Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-54440028914728459872017-08-13T21:07:00.001+08:002017-08-13T21:07:17.227+08:00How to spot an investment scam<p dir="ltr"><br>
Singapore is one of the most important financial centres in the world. A significant percentage of its working population works in banking and finance. At 97%, its literacy ratesare among the highest in the world. Despite these facts, many Singaporeans regularly fall prey to investment scams of various types.</p>
<p dir="ltr">A company that offers impossibly high returns often finds many takers. Investment schemes that are blatantly fraudulent attract hundreds, even thousands of people.</p>
<p dir="ltr">How can you spot an investment scam? Here is what you should look out for.</p>
<p dir="ltr"> </p>
<p dir="ltr"><b>Is the entity regulated by the Monetary Authority of Singapore?</b></p>
<p dir="ltr">You are unlikely to be cheated by a company that is supervised by Singapore’s regulator and central bank. MAS imposes a strict set of guidelines for the firms that it regulates. Financial companies that are required to adhere to the rules imposed by MAS must disclose important details about the investment opportunity that they are offering.</p>
<p dir="ltr">These firms also need to submit a variety of reports on a regular basis to MAS. An investment scheme promoted by one of these companies will point out the risks that you are undertaking when you deal with them.</p>
<p dir="ltr">But all financial entities in Singapore are not regulated by MAS. In fact, the regulator publishes an Investor Alert List that provides the names, addresses, phone numbers, and websites of those entities that are not supervised by them.</p>
<p dir="ltr">This list is not exhaustive. It only contains those firms that Singaporeans may wrongly perceive to be regulated by MAS. Of course, many of these firms will be carrying out perfectly legitimate operations. MAS is merely pointing out that it does not supervise them.</p>
<p dir="ltr"> </p>
<p dir="ltr"><b>Companies that pay unbelievably high returns</b></p>
<p dir="ltr">James Phang Wah, the owner of the Sunshine Empire, promised his investors returns of up to 10% a month. The scheme, which he promoted, ran for three years from 2006 to 2009 and it managed to collect S$180 million from gullible individuals.</p>
<p dir="ltr">How could a fraud be perpetrated for that length of time? It had all the hallmarks of a classic Ponzi scheme. The promoter paid early investors with the funds collected from those who entered the program later. The word of mouth publicity provided by the people who actually got their money back along with interest played a large role in the success of the Sunshine Empire.</p>
<p dir="ltr">But the scam could not go on for ever. Of the total collections of S$180 million, a sum of S$121 million was repaid to investors. When the authorities closed the company’s operations down, a further S$21 million was recovered.</p>
<p dir="ltr">James Phang Wah got nine years in jail for fraud. But that probably did not provide any solace to the people who lost tens of thousands of dollars of their hard earned money.</p>
<p dir="ltr"> </p>
<p dir="ltr"><b>A simple Google search may help</b></p>
<p dir="ltr">The “Iraqi Dinar Scam” ran for a full seven years in the US, till its perpetrator, John Scott Clark, was arrested. He had provided written guarantees to investors stating that they could earn annual returns exceeding 3,000%.</p>
<p dir="ltr">A US$1,000 investment would yield US$125,000 in 90 days. Those who put up US$20,000 were promised a US$3 million payout.</p>
<p dir="ltr">How did the scam work? Investors were told that their money would be deployed in “top secret” Iraqi currency and oil contracts. In seven years, the fraudsters collected US$1.7 million.</p>
<p dir="ltr">When the fraud came to light, the US Securities and Exchange Commission (SEC), the federal body tasked with protecting the interests of investors, made a shocking revelation. It disclosed that many of the people who were asked to participate in the scheme had been victims of an earlier Ponzi scheme floated by the same person.</p>
<p dir="ltr">Those who were cheated by the Iraqi Dinar Scam failed to carry out basic due diligence. An internet search would have thrown up John Scott Clark’s name in the SEC’s enforcement database.</p>
<p dir="ltr"> </p>
<p dir="ltr"><b>The fraudulent phone call</b></p>
<p dir="ltr">Many people are cheated out of their money by the promise of high returns on their investment. The initial approach is often made by an unsolicited phone call.</p>
<p dir="ltr">How can you tell if the caller is trying to swindle you? Here are a few pointers.</p>
<p dir="ltr">At times the caller’s voice may be unclear and you may not be able to hear every word that is spoken during the call.It is highly likely that the caller will be very persistent. You will be strongly discouraged from putting the phone down.A common theme that runs through many of these calls is the promise of high returns on your investments. You may be told that if you delay the decision, you could miss out on an extremely lucrative offer.The call will usually be from a company that you have never heard of before. A search on the internet will provide very few details. Sophisticated fraudsters may develop websites that contain fake information.If you seem to be losing interest, you may be asked to speak to the caller’s “supervisor.”</p>
<p dir="ltr">At times, the caller could ask you to contribute to a charity or some noble cause. Carry out your own check before you decide to pay.</p>
<p dir="ltr"> <br><br><br></p>
<p dir="ltr">A con artist will play on the greed of investors by promising high returns that are guaranteed. This should raise a red flag immediately. With bank term deposits providing barely 2% or 3% per year, how is it possible to get guaranteed returns of 10% per month?</p>
<p dir="ltr">The most important rule that you should keep in mind is to remember that you should not invest in a financial product that you don’t understand. Fraudsters will use sophisticated terminology and big words to hide the fact that they are trying to cheat you.</p>
<p dir="ltr">Finally, if you think that an investment proposal sounds too good to be true, it probably is. Tell the sales representative who is pushing you to finalise the transaction that you want to take a second opinion from a friend who is familiar with financial matters. If you are strongly dissuaded from doing this, you need to exercise a great deal of caution before investing in the scheme being offered to you.<br><br><br></p>
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-61120013881028754482017-08-11T09:18:00.001+08:002017-08-11T09:18:30.541+08:006 reasons to be cautious about stocks<div style="background-color: white; color: #222222; font-family: Georgia, Times, sans-serif; font-size: 19px;">
<div style="margin-bottom: 1em;">
U.S. equity markets keep reaching all-time highs. Bonds income is low and rising rates will make bonds less attractive in the near term. We are living in historic times: major U.S. stock markets are up over 260 percent since 2009. In the past 50 years, only two rallies were better.</div>
<div style="margin-bottom: 1em;">
But rallies do not just die of old age. Economic data points towards continued expansion, if somewhat tepid, and unemployment is low. Tightening by the U.S. Federal Reserve is likely to be measured and gradual – dovish – as global and U.S. inflation continue on low trajectories. </div>
<div style="margin-bottom: 1em;">
This has led to complacency among many investors, who generally need exposure to growth stocks in their portfolios to keep up with inflation and meet their investment targets. What can investors near or at retirement do to increase the certainty of meeting their retirement needs?</div>
<div style="margin-bottom: 1em;">
There are six big reasons to be cautious in their approach to investing in equities:</div>
<ul style="margin: 0px 0px 10px 25px; padding: 0px;">
<li style="line-height: 1.5em; margin-bottom: 1em;">Greed & Fear: Many investors tend to overshoot on the upside … and then overshoot on<br />the downside. It’s human nature, or as the Millennials say, FOMO (Fear Of Missing Out). Year-to- date, the S&P 500 Index has hit 29 new highs. Could it be over-enthusiasm?</li>
<li style="line-height: 1.5em; margin-bottom: 1em;">Sky High Valuations: Historically, the U.S. equity market is expensive. A high cyclically-<br />adjusted price-earnings ratio (CAPE) – as we currently have – often has led to low or<br />negative overall stock market performance in the future, unless there is strong reason<br />for the rally to continue.</li>
<li style="line-height: 1.5em; margin-bottom: 1em;">Slow Global Economic Growth: Most forecasters, the U.S. Federal Reserve and World<br />Bank included, expect global GDP growth in the 2-2.5 percent range. Some foresee as<br />little as 1.6-1.8 percent. Slow growth and high valuations make a bad mix.</li>
<li style="line-height: 1.5em; margin-bottom: 1em;">Political Gridlock: If Congress and the President cannot reform health care, can investors<br />expect sweeping tax cuts, let alone major infrastructure initiatives? Without a stimulus,<br />growth is highly unlikely to reach 3-4 percent, as the Administration targets. Scandals<br />could lead to “blonde swan events.” The “Trump trade” has mostly unwound, making it<br />important to focus on fundamentals.</li>
<li style="line-height: 1.5em; margin-bottom: 1em;">Possible Fed Missteps: 80 percent of Fed tightening cycles have led to recessions. (Scary<br />and true.) A recession may not be likely soon, but if poorly managed, we could get<br />closer. The good news is that gradual rises in interest rates often have not had outside<br />impacts on defensive sectors.</li>
<li style="line-height: 1.5em; margin-bottom: 1em;">Tick, Tick, Tick … Boom?! The S&P 500 has risen over 260 percent since 2009, the last<br />year we had a bear correction (a drop of 20 percent or more). Since 1950 the S&P 500 has fallen 35 times by 10 percent or more. Given the market’s high valuations and mediocre economic growth, we may be overdue for a correction – possibly a big one.</li>
</ul>
<div style="margin-bottom: 1em;">
We believe this can be a good time to be smart, take some profits and reinvest in value-oriented defensive equities with solid earnings. Investors should consider to prudently reallocate and be wary: </div>
<ul style="margin: 0px 0px 10px 25px; padding: 0px;">
<li style="line-height: 1.5em; margin-bottom: 1em;">Diversify: After years of underperforming, international developed and emerging<br />markets (EMs) are cheaper and growing quicker than the U.S. Buying stocks from these<br />regions can help capture growth at cheaper prices and alleviate any drawdowns in U.S.<br />equities. Investors should pay even closer attention to fundamentals when market risks<br />compress.</li>
<li style="line-height: 1.5em; margin-bottom: 1em;">Defensive Potential with Dividends: Many U.S. stocks, particularly technology, are<br />expensive. Cheaper defensive stocks in all sectors, with low price and earnings volatility,<br />have historically done well over the long-term, and can help manage downside risk.<br />Dividend-paying stocks can be great sources of income OR of total return, if reinvested<br />to buy more shares.</li>
<li style="line-height: 1.5em; margin-bottom: 1em;">Low Market Volatility May Be Meaningless – or Not: Market volatility is at multi-decade<br />lows. While not a bad thing, it can make it harder to identify risks and leave investors<br />over-exposed. For example, tech volatility has declined significantly, causing some low<br />volatility funds to increase exposure to the FANGs. They still have volatile earnings,<br />however, and may take bigger hits in a market correction. We expect them to be sold if<br />volatility rises.</li>
</ul>
<div style="margin-bottom: 1em;">
<em>James Norman is President of QS Investors, a Legg Mason affiliate, His opinions are not meant to be viewed as investment advice or a solicitation for investment.</em> </div>
</div>
<div class="tagline" style="background-color: white; color: #222222; font-family: Georgia, Times, sans-serif; font-size: 19px; font-style: italic; margin-bottom: 1em;">
Read the original article on <a href="http://www.leggmason.com/" style="color: #196d8d; text-decoration-line: none;">Legg Mason</a>. Legg Mason is a global asset management firm providing active asset management in many major investment centers throughout the world. Visit <a href="http://www.leggmason.com/" style="color: #196d8d; text-decoration-line: none;">www.leggmason.com</a> to learn more. Copyright 2017. Follow Legg Mason on <a href="http://twitter.com/leggmason" style="color: #196d8d; text-decoration-line: none;">Twitter</a></div>
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-45961929304004074332015-08-21T23:16:00.000+08:002015-08-21T23:16:53.616+08:00Economic downturnDo you smell a global recession coming?Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-49465228892671505292015-08-03T15:25:00.001+08:002015-08-03T15:26:42.147+08:00How to Become a Millionaire by Age 30Here are the 10 steps that will guarantee you will become a millionaire by 30.<br />
<br />
1. Follow the money. In today’s economic environment you cannot save your way to millionaire status. The first step is to focus on increasing your income in increments and repeating that. My income was $3,000 a month and nine years later it was $20,000 a month. Start following the money and it will force you to control revenue and see opportunities.<br />
<br />
2. Don’t show off -- show up! I didn’t buy my first luxury watch or car until my businesses and investments were producing multiple secure flows of income. I was still driving a Toyota Camry when I had become a millionaire. Be known for your work ethic, not the trinkets that you buy.<br />
<br />
3. Save to invest, don’t save to save. The only reason to save money is to invest it. Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even an emergency. This will force you to continue to follow step one (increase income). To this day, at least twice a year, I am broke because I always invest my surpluses into ventures I cannot access.<br />
<br />
4. Avoid debt that doesn’t pay you. Make it a rule that you never use debt that won’t make you money. I borrowed money for a car only because I knew it could increase my income. Rich people use debt to leverage investments and grow cash flows. Poor people use debt to buy things that make rich people richer.<br />
<br />
5. Treat money like a jealous lover. Millions wish for financial freedom, but only those that make it a priority have millions. To get rich and stay rich you will have to make it a priority. Money is like a jealous lover. Ignore it and it will ignore you, or worse, it will leave you for someone who makes it a priority.<br />
<br />
6. Money doesn’t sleep. Money doesn’t know about clocks, schedules or holidays, and you shouldn’t either. Money loves people that have a great work ethic. When I was 26 years old, I was in retail and the store I worked at closed at 7 p.m. Most times you could find me there at 11 p.m. making an extra sale. Never try to be the smartest or luckiest person -- just make sure you outwork everyone.<br />
<br />
7. Poor makes no sense. I have been poor, and it sucks. I have had just enough and that sucks almost as bad. Eliminate any and all ideas that being poor is somehow OK. Bill Gates has said, "If you’re born poor, it’s not your mistake. But if you die poor, it is your mistake."<br />
<br />
8. Get a millionaire mentor. Most of us were brought up middle class or poor and then hold ourselves to the limits and ideas of that group. I have been studying millionaires to duplicate what they did. Get your own personal millionaire mentor and study them. Most rich people are extremely generous with their knowledge and their resources.<br />
<br />
9. Get your money to do the heavy lifting. Investing is the Holy Grail in becoming a millionaire and you should make more money off your investments than your work. If you don’t have surplus money you won’t make investments. The second company I started required a $50,000 investment. That company has paid me back that $50,000 every month for the last 10 years. My third investment was in real estate, where I started with $350,000, a large part of my net worth at the time. I still own that property today and it continues to provide me with income. Investing is the only reason to do the other steps, and your money must work for you and do your heavy lifting.<br />
<br />
10. Shoot for $10 million, not $1 million. The single biggest financial mistake I’ve made was not thinking big enough. I encourage you to go for more than a million. There is no shortage of money on this planet, only a shortage of people thinking big enough.<br />
<br />
Apply these 10 steps and they will make you rich. Steer clear of people that suggest your financial dreams are born of greed. Avoid get-rich-quick schemes, be ethical, never give up, and once you make it, be willing to help others get there too.Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-17921190565060258342015-07-31T09:05:00.001+08:002015-07-31T09:07:49.522+08:00Shell to Cut 6500 Jobs as Prolonged Market Downturn LoomsShell isn’t alone in trying to grapple with cheap oil. This week Chevron said it would cut 1,500 jobs in an effort to cut costs by $1 billion. Likewise, ConocoPhillips said it’s continuing layoffs as it tries to reduce spending by $1 billion over two years.
Graves & Co., an energy consulting firm, estimates that the energy sector has lost 50,000 in the past three months—that’s on top of the 100,000 layoffs since oil prices began to tumble last fall.Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-74430931337339560432015-02-27T14:47:00.000+08:002015-02-27T14:47:42.873+08:00Investors in gold scheme alarmed by firm's silence<span style="line-height: 1.5;">More than 20 investors who put around
$7 million into a gold buyback scheme run by local firm Suisse
International are now worried that they cannot get their money back.</span><br />
<br />
Not only is its owner uncontactable, they said, but the company's office at Keypoint in Beach Road has also been closed.<br />
<br />
The last message the investors received was from the firm's
vice-president Belinda Hah in the first week of January. That was when
she informed them via SMS that their money was stuck in a transfer to
the firm's Hong Kong branch - Suisse HK.<br />
<br />
<div id="stcpDiv" style="left: -1988px; position: absolute; top: -1999px;">
"After
we joined, we also brought our friends in because (Suisse) promised to
give us better returns and sell us gold at a cheaper rate if we
recommended others," said operations manager Louis Tan, 36, who put in
$40,000 last June.<br />
It was easy to convince their friends to join because the company
promised them about $1,000 a month, which worked out to a 20 per cent
return, for every kilogram of gold they bought.<br />
The investors were told that the profit came from melting the gold
and turning it into limited-edition coins or other novelty items, which
were sold overseas or to other local companies. The investors also said
they were told Suisse International was headed by a former police
officer, and that bolstered their confidence.<br />
"We also saw other people receiving cheques when we agreed to
invest," said housewife Y.H. Yang, 53, who had put in $2.2 million since
April last year.<br />
Investors began worrying last December when Ms Hah delayed their
payouts, citing cashflow concerns. She also said investors would get
cash payouts instead of cheques, as the firm was trying to avoid the
Monetary Authority of Singapore's (MAS) scrutiny.<br />
The MAS had put both the Singapore company and its Hong Kong branch
on its Investor Alert List last November. Both firms, despite one being
located in Hong Kong, are listed with the same Beach Road address on the
list.<br />
"That's when we knew something was wrong. How can a company claim to
be legitimate if it was worried about the authorities?" said Mr Tan.<br />
The Straits Times tried contacting Ms Hah, but calls went unanswered.
A visit to the firm's office yesterday also found it closed.<br />
When The Straits Times went to Mr Chaw's Bishan flat, neighbours said that they had not seen him for about six months.<br />
Madam Yang, who also sold her ancestral home in Shanghai to bankroll
her investment, said: "I'm worried that I've been cheated. That was my
life savings and money saved for my nine-year-old daughter's future."<br />
The police said it was inappropriate to comment on the case as investigations are ongoing.<br />
<span style="text-decoration: underline;"><strong>OTHER MAJOR GOLD SCAMS</strong></span><br />
<strong>THE GOLD GUARANTEE</strong><br />
Investors were offered monthly payouts to purchase gold at a premium
from the company, which also had businesses in Thailand, Malaysia and
Hong Kong.<br />
In 2013, investors were left in the lurch when payments ceased
suddenly and founder Lee Song Teck vanished. They lost tens of thousands
of dollars.<br />
<strong>GENNEVA GOLD</strong><br />
In 2012, more than 10,000 investors lost their money to Genneva Gold, which was raided by the Commercial Affairs Department.<br />
The company sold gold at a 2 per cent discount to market prices. It
promised to buy back the gold 30 or 90 days later. Investors reportedly
poured up to RM10 billion into its Malaysian arm as well.<br />
- See more at: http://business.asiaone.com/news/investors-gold-scheme-alarmed-firms-silence#sthash.eWlS9x16.dpuf</div>
<div id="stcpDiv" style="left: -1988px; position: absolute; top: -1999px;">
"After
we joined, we also brought our friends in because (Suisse) promised to
give us better returns and sell us gold at a cheaper rate if we
recommended others," said operations manager Louis Tan, 36, who put in
$40,000 last June.<br />
It was easy to convince their friends to join because the company
promised them about $1,000 a month, which worked out to a 20 per cent
return, for every kilogram of gold they bought.<br />
The investors were told that the profit came from melting the gold
and turning it into limited-edition coins or other novelty items, which
were sold overseas or to other local companies. The investors also said
they were told Suisse International was headed by a former police
officer, and that bolstered their confidence.<br />
"We also saw other people receiving cheques when we agreed to
invest," said housewife Y.H. Yang, 53, who had put in $2.2 million since
April last year.<br />
Investors began worrying last December when Ms Hah delayed their
payouts, citing cashflow concerns. She also said investors would get
cash payouts instead of cheques, as the firm was trying to avoid the
Monetary Authority of Singapore's (MAS) scrutiny.<br />
The MAS had put both the Singapore company and its Hong Kong branch
on its Investor Alert List last November. Both firms, despite one being
located in Hong Kong, are listed with the same Beach Road address on the
list.<br />
"That's when we knew something was wrong. How can a company claim to
be legitimate if it was worried about the authorities?" said Mr Tan.<br />
The Straits Times tried contacting Ms Hah, but calls went unanswered.
A visit to the firm's office yesterday also found it closed.<br />
When The Straits Times went to Mr Chaw's Bishan flat, neighbours said that they had not seen him for about six months.<br />
Madam Yang, who also sold her ancestral home in Shanghai to bankroll
her investment, said: "I'm worried that I've been cheated. That was my
life savings and money saved for my nine-year-old daughter's future."<br />
The police said it was inappropriate to comment on the case as investigations are ongoing.<br />
<span style="text-decoration: underline;"><strong>OTHER MAJOR GOLD SCAMS</strong></span><br />
<strong>THE GOLD GUARANTEE</strong><br />
Investors were offered monthly payouts to purchase gold at a premium
from the company, which also had businesses in Thailand, Malaysia and
Hong Kong.<br />
In 2013, investors were left in the lurch when payments ceased
suddenly and founder Lee Song Teck vanished. They lost tens of thousands
of dollars.<br />
<strong>GENNEVA GOLD</strong><br />
In 2012, more than 10,000 investors lost their money to Genneva Gold, which was raided by the Commercial Affairs Department.<br />
The company sold gold at a 2 per cent discount to market prices. It
promised to buy back the gold 30 or 90 days later. Investors reportedly
poured up to RM10 billion into its Malaysian arm as well.<br />
- See more at: http://business.asiaone.com/news/investors-gold-scheme-alarmed-firms-silence#sthash.eWlS9x16.dpuf</div>
No further details were given on how investors could get their money
back. At least three of them have gone to the police, and engaged a debt
collection agency to locate Ms Hah.<br />
<br />
The investors were all introduced by their friends to Ms Hah and her
partner Jeffrey Chow. He is believed to be the son of the company's
registered owner, Mr Chaw Soo Ha.<br />
<br />
<div id="stcpDiv" style="left: -1988px; position: absolute; top: -1999px;">
"After
we joined, we also brought our friends in because (Suisse) promised to
give us better returns and sell us gold at a cheaper rate if we
recommended others," said operations manager Louis Tan, 36, who put in
$40,000 last June.<br />
It was easy to convince their friends to join because the company
promised them about $1,000 a month, which worked out to a 20 per cent
return, for every kilogram of gold they bought.<br />
The investors were told that the profit came from melting the gold
and turning it into limited-edition coins or other novelty items, which
were sold overseas or to other local companies. The investors also said
they were told Suisse International was headed by a former police
officer, and that bolstered their confidence.<br />
"We also saw other people receiving cheques when we agreed to
invest," said housewife Y.H. Yang, 53, who had put in $2.2 million since
April last year.<br />
Investors began worrying last December when Ms Hah delayed their
payouts, citing cashflow concerns. She also said investors would get
cash payouts instead of cheques, as the firm was trying to avoid the
Monetary Authority of Singapore's (MAS) scrutiny.<br />
The MAS had put both the Singapore company and its Hong Kong branch
on its Investor Alert List last November. Both firms, despite one being
located in Hong Kong, are listed with the same Beach Road address on the
list.<br />
"That's when we knew something was wrong. How can a company claim to
be legitimate if it was worried about the authorities?" said Mr Tan.<br />
The Straits Times tried contacting Ms Hah, but calls went unanswered.
A visit to the firm's office yesterday also found it closed.<br />
When The Straits Times went to Mr Chaw's Bishan flat, neighbours said that they had not seen him for about six months.<br />
Madam Yang, who also sold her ancestral home in Shanghai to bankroll
her investment, said: "I'm worried that I've been cheated. That was my
life savings and money saved for my nine-year-old daughter's future."<br />
The police said it was inappropriate to comment on the case as investigations are ongoing.<br />
<span style="text-decoration: underline;"><strong>OTHER MAJOR GOLD SCAMS</strong></span><br />
<strong>THE GOLD GUARANTEE</strong><br />
Investors were offered monthly payouts to purchase gold at a premium
from the company, which also had businesses in Thailand, Malaysia and
Hong Kong.<br />
In 2013, investors were left in the lurch when payments ceased
suddenly and founder Lee Song Teck vanished. They lost tens of thousands
of dollars.<br />
<strong>GENNEVA GOLD</strong><br />
In 2012, more than 10,000 investors lost their money to Genneva Gold, which was raided by the Commercial Affairs Department.<br />
The company sold gold at a 2 per cent discount to market prices. It
promised to buy back the gold 30 or 90 days later. Investors reportedly
poured up to RM10 billion into its Malaysian arm as well.<br />
- See more at: http://business.asiaone.com/news/investors-gold-scheme-alarmed-firms-silence#sthash.eWlS9x16.dpuf</div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">"After we joined, we also
brought our friends in because (Suisse) promised to give us better returns and
sell us gold at a cheaper rate if we recommended others," said operations
manager Louis Tan, 36, who put in $40,000 last June.</span></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">It was easy to convince their
friends to join because the company promised them about $1,000 a month, which
worked out to a 20 per cent return, for every kilogram of gold they bought.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The investors were told that the
profit came from melting the gold and turning it into limited-edition coins or
other novelty items, which were sold overseas or to other local companies. The
investors also said they were told Suisse International was headed by a former
police officer, and that bolstered their confidence.</span></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">"We also saw other people
receiving cheques when we agreed to invest," said housewife Y.H. Yang, 53,
who had put in $2.2 million since April last year.</span></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Investors began worrying last
December when Ms Hah delayed their payouts, citing cashflow concerns. She also
said investors would get cash payouts instead of cheques, as the firm was
trying to avoid the Monetary Authority of Singapore's (MAS) scrutiny.</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The MAS had put both the Singapore
company and its Hong Kong branch on its Investor Alert List last November. Both
firms, despite one being located in Hong Kong, are listed with the same Beach
Road address on the list.</span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">"That's when we knew something
was wrong. How can a company claim to be legitimate if it was worried about the
authorities?" said Mr Tan.</span></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The Straits Times tried contacting
Ms Hah, but calls went unanswered. A visit to the firm's office yesterday also
found it closed.</span></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">When The Straits Times went to Mr
Chaw's Bishan flat, neighbours said that they had not seen him for about six
months.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Madam Yang, who also sold her
ancestral home in Shanghai to bankroll her investment, said: "I'm worried
that I've been cheated. That was my life savings and money saved for my
nine-year-old daughter's future."</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The police said it was inappropriate
to comment on the case as investigations are ongoing.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><u><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">OTHER MAJOR GOLD SCAMS</span></u></b></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">THE GOLD GUARANTEE</span></b></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Investors were offered monthly
payouts to purchase gold at a premium from the company, which also had
businesses in Thailand, Malaysia and Hong Kong.</span></div>
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<br /></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In 2013, investors were left in the
lurch when payments ceased suddenly and founder Lee Song Teck vanished. They
lost tens of thousands of dollars.</span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">GENNEVA GOLD</span></b></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In 2012, more than 10,000 investors
lost their money to Genneva Gold, which was raided by the Commercial Affairs
Department.</span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The company sold gold at a 2 per
cent discount to market prices. It promised to buy back the gold 30 or 90 days
later. Investors reportedly poured up to RM10 billion into its Malaysian arm as
well.</span></div>
<br /><br />
<br />
<div id="stcpDiv" style="left: -1988px; position: absolute; top: -1999px;">
"After
we joined, we also brought our friends in because (Suisse) promised to
give us better returns and sell us gold at a cheaper rate if we
recommended others," said operations manager Louis Tan, 36, who put in
$40,000 last June.<br />
It was easy to convince their friends to join because the company
promised them about $1,000 a month, which worked out to a 20 per cent
return, for every kilogram of gold they bought.<br />
The investors were told that the profit came from melting the gold
and turning it into limited-edition coins or other novelty items, which
were sold overseas or to other local companies. The investors also said
they were told Suisse International was headed by a former police
officer, and that bolstered their confidence.<br />
"We also saw other people receiving cheques when we agreed to
invest," said housewife Y.H. Yang, 53, who had put in $2.2 million since
April last year.<br />
Investors began worrying last December when Ms Hah delayed their
payouts, citing cashflow concerns. She also said investors would get
cash payouts instead of cheques, as the firm was trying to avoid the
Monetary Authority of Singapore's (MAS) scrutiny.<br />
The MAS had put both the Singapore company and its Hong Kong branch
on its Investor Alert List last November. Both firms, despite one being
located in Hong Kong, are listed with the same Beach Road address on the
list.<br />
"That's when we knew something was wrong. How can a company claim to
be legitimate if it was worried about the authorities?" said Mr Tan.<br />
The Straits Times tried contacting Ms Hah, but calls went unanswered.
A visit to the firm's office yesterday also found it closed.<br />
When The Straits Times went to Mr Chaw's Bishan flat, neighbours said that they had not seen him for about six months.<br />
Madam Yang, who also sold her ancestral home in Shanghai to bankroll
her investment, said: "I'm worried that I've been cheated. That was my
life savings and money saved for my nine-year-old daughter's future."<br />
The police said it was inappropriate to comment on the case as investigations are ongoing.<br />
<span style="text-decoration: underline;"><strong>OTHER MAJOR GOLD SCAMS</strong></span><br />
<strong>THE GOLD GUARANTEE</strong><br />
Investors were offered monthly payouts to purchase gold at a premium
from the company, which also had businesses in Thailand, Malaysia and
Hong Kong.<br />
In 2013, investors were left in the lurch when payments ceased
suddenly and founder Lee Song Teck vanished. They lost tens of thousands
of dollars.<br />
<strong>GENNEVA GOLD</strong><br />
In 2012, more than 10,000 investors lost their money to Genneva Gold, which was raided by the Commercial Affairs Department.<br />
The company sold gold at a 2 per cent discount to market prices. It
promised to buy back the gold 30 or 90 days later. Investors reportedly
poured up to RM10 billion into its Malaysian arm as well.<br />
- See more at: http://business.asiaone.com/news/investors-gold-scheme-alarmed-firms-silence#sthash.eWlS9x16.dpuf</div>
<div id="stcpDiv" style="left: -1988px; position: absolute; top: -1999px;">
"After
we joined, we also brought our friends in because (Suisse) promised to
give us better returns and sell us gold at a cheaper rate if we
recommended others," said operations manager Louis Tan, 36, who put in
$40,000 last June.<br />
It was easy to convince their friends to join because the company
promised them about $1,000 a month, which worked out to a 20 per cent
return, for every kilogram of gold they bought.<br />
The investors were told that the profit came from melting the gold
and turning it into limited-edition coins or other novelty items, which
were sold overseas or to other local companies. The investors also said
they were told Suisse International was headed by a former police
officer, and that bolstered their confidence.<br />
"We also saw other people receiving cheques when we agreed to
invest," said housewife Y.H. Yang, 53, who had put in $2.2 million since
April last year.<br />
Investors began worrying last December when Ms Hah delayed their
payouts, citing cashflow concerns. She also said investors would get
cash payouts instead of cheques, as the firm was trying to avoid the
Monetary Authority of Singapore's (MAS) scrutiny.<br />
The MAS had put both the Singapore company and its Hong Kong branch
on its Investor Alert List last November. Both firms, despite one being
located in Hong Kong, are listed with the same Beach Road address on the
list.<br />
"That's when we knew something was wrong. How can a company claim to
be legitimate if it was worried about the authorities?" said Mr Tan.<br />
The Straits Times tried contacting Ms Hah, but calls went unanswered.
A visit to the firm's office yesterday also found it closed.<br />
When The Straits Times went to Mr Chaw's Bishan flat, neighbours said that they had not seen him for about six months.<br />
Madam Yang, who also sold her ancestral home in Shanghai to bankroll
her investment, said: "I'm worried that I've been cheated. That was my
life savings and money saved for my nine-year-old daughter's future."<br />
The police said it was inappropriate to comment on the case as investigations are ongoing.<br />
<span style="text-decoration: underline;"><strong>OTHER MAJOR GOLD SCAMS</strong></span><br />
<strong>THE GOLD GUARANTEE</strong><br />
Investors were offered monthly payouts to purchase gold at a premium
from the company, which also had businesses in Thailand, Malaysia and
Hong Kong.<br />
In 2013, investors were left in the lurch when payments ceased
suddenly and founder Lee Song Teck vanished. They lost tens of thousands
of dollars.<br />
<strong>GENNEVA GOLD</strong><br />
In 2012, more than 10,000 investors lost their money to Genneva Gold, which was raided by the Commercial Affairs Department.<br />
The company sold gold at a 2 per cent discount to market prices. It
promised to buy back the gold 30 or 90 days later. Investors reportedly
poured up to RM10 billion into its Malaysian arm as well.<br />
- See more at: http://business.asiaone.com/news/investors-gold-scheme-alarmed-firms-silence#sthash.eWlS9x16.dpuf</div>
<br />
<div id="stcpDiv" style="left: -1988px; position: absolute; top: -1999px;">
"After
we joined, we also brought our friends in because (Suisse) promised to
give us better returns and sell us gold at a cheaper rate if we
recommended others," said operations manager Louis Tan, 36, who put in
$40,000 last June.<br />
It was easy to convince their friends to join because the company
promised them about $1,000 a month, which worked out to a 20 per cent
return, for every kilogram of gold they bought.<br />
The investors were told that the profit came from melting the gold
and turning it into limited-edition coins or other novelty items, which
were sold overseas or to other local companies. The investors also said
they were told Suisse International was headed by a former police
officer, and that bolstered their confidence.<br />
"We also saw other people receiving cheques when we agreed to
invest," said housewife Y.H. Yang, 53, who had put in $2.2 million since
April last year.<br />
Investors began worrying last December when Ms Hah delayed their
payouts, citing cashflow concerns. She also said investors would get
cash payouts instead of cheques, as the firm was trying to avoid the
Monetary Authority of Singapore's (MAS) scrutiny.<br />
The MAS had put both the Singapore company and its Hong Kong branch
on its Investor Alert List last November. Both firms, despite one being
located in Hong Kong, are listed with the same Beach Road address on the
list.<br />
"That's when we knew something was wrong. How can a company claim to
be legitimate if it was worried about the authorities?" said Mr Tan.<br />
The Straits Times tried contacting Ms Hah, but calls went unanswered.
A visit to the firm's office yesterday also found it closed.<br />
When The Straits Times went to Mr Chaw's Bishan flat, neighbours said that they had not seen him for about six months.<br />
Madam Yang, who also sold her ancestral home in Shanghai to bankroll
her investment, said: "I'm worried that I've been cheated. That was my
life savings and money saved for my nine-year-old daughter's future."<br />
The police said it was inappropriate to comment on the case as investigations are ongoing.<br />
<span style="text-decoration: underline;"><strong>OTHER MAJOR GOLD SCAMS</strong></span><br />
<strong>THE GOLD GUARANTEE</strong><br />
Investors were offered monthly payouts to purchase gold at a premium
from the company, which also had businesses in Thailand, Malaysia and
Hong Kong.<br />
In 2013, investors were left in the lurch when payments ceased
suddenly and founder Lee Song Teck vanished. They lost tens of thousands
of dollars.<br />
<strong>GENNEVA GOLD</strong><br />
In 2012, more than 10,000 investors lost their money to Genneva Gold, which was raided by the Commercial Affairs Department.<br />
The company sold gold at a 2 per cent discount to market prices. It
promised to buy back the gold 30 or 90 days later. Investors reportedly
poured up to RM10 billion into its Malaysian arm as well.<br />
- See more at: http://business.asiaone.com/news/investors-gold-scheme-alarmed-firms-silence#sthash.eWlS9x16.dpuf</div>
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-31595424051426112692015-02-27T14:43:00.004+08:002015-02-27T14:43:52.595+08:00More than 100 investors lodge police reports on alleged gold scam<h2 class="news_brief">
The group says they are representing more than
260 victims. It is believed that there are more than 8,000 victims from
all around the world who have taken part in this scheme, with total
losses of more than S$80 million.</h2>
<h2 class="news_brief">
</h2>
<div class="news_detail">
SINGAPORE: More than 100 people who had
invested in a gold buyback scheme gathered on Monday (Feb 2) at the
Commercial Affairs Division in Police Cantonment Complex to lodge a
report against investment company Suisse International.</div>
<div class="news_detail">
</div>
<div class="news_detail">
<div>
They
said they represented about 260 investors in total, adding that 8,000
people around the world are believed to have been scammed, with losses
of more than S$80 million.<br />
<br />
The company allegedly told
investors that it bought and sold gold to turn into novelty coins, which
were then sold at a profit overseas.<br />
<br />
To participate,
investors had to purchase at least 1kg worth of gold bars costing
between S$10,000 and S$20,000. In return, they were told they would
receive S$5,400 in monthly payouts. Investors would also receive a
referral fee if they introduced a friend to the scheme.<br />
<br />
<div id="tt-wrapper7bf04e8" style="height: 0px; left: -999em; margin: 0px 0px 23px; max-width: 100%; min-width: 640px; overflow: hidden; padding: 0px; position: absolute; text-align: center; width: auto;">
<div class="mention" style="background: transparent url(//cdn.teads.tv/img/ir/mention_en.png) top center no-repeat; height: 15px; width: 100%;">
</div>
<div id="tt-container7bf04e8" style="height: auto!important; overflow: hidden; padding-top: 56.25%; position: relative; width: 100%!important;">
<div id="tt-viewport7bf04e8" style="height: 0px; left: -999em; margin-top: 45px; position: absolute; top: 0px; width: 5px;">
</div>
</div>
</div>
Investors said they have previously cashed cheques by the company and hence did not suspect it was a scam.<br />
<br />
The
payouts allegedly stopped in September last year and the investors said
that the bosses of the company have been uncontactable since last
month.<br />
<br />
“In September, the Government had implemented new
regulations against money-laundering. Then the company said they had to
move our contracts to Hong Kong. We did as we were told, but we were
unable to receive our payouts from then on,” said an investor who gave
his name as Johnny.<br />
<br />
A man claiming to be the vice
president of Suisse International led the group to CAD to make the
report. He said he had taken part in the investment scheme for two
years.<br />
<br />
The company has been on the Monetary Authority of
Singapore's (MAS) Investor Alert List since November 2014. According to
MAS, the list comprises unregulated persons who - based on information
received by MAS - may have been wrongly perceived as being licensed or
authorised.<br />
</div>
</div>
<div class="news_copyright">
- CH8/CNA/dl/xq</div>
<h2 class="news_brief">
</h2>
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-64509130882816098002015-02-27T12:15:00.000+08:002015-02-27T12:15:08.760+08:00Singapore bank lending falls in January<h2 class="news_brief">
According to latest data from the Monetary
Authority of Singapore, total loans and advances fell to S$607.47
billion last month, compared to S$607.91 billion in December 2014. </h2>
<div class="news_detail">
<div>
SINGAPORE: Bank lending in the Republic continued to
fall in January from December last year, in yet another sign that
economic activity may be slowing down.<br />
<br />
According to the latest
data from the Monetary Authority of Singapore, total loans and advances
fell to S$607.47 billion last month, compared to S$607.91 billion in
December 2014. However, bank lending grew 4.3 per cent in January from
S$582.24 billion a year earlier.<br />
<br />
A slowdown in business activity
could account for the decline in total loans to businesses, which fell
0.3 per cent on-month to S$370.28 billion. Contributing to the decline
is bank lending to the building and construction sector, which fell 0.16
per cent to S$103.54 billion.<br />
<br />
In the consumer segment, credit
card loans fell 1.9 per cent to S$10.22 billion at end-January compared
to a month earlier. Housing and bridging loans in the same month
increased 0.5 per cent to S$178.27 billion from S$177.43 billion in
December last year.<br />
<br />
Meanwhile, total consumer loans rose 0.3 per cent in January to S$237.19 billion from the previous month.<br />
</div>
</div>
<div class="news_copyright">
- CNA/av</div>
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-22396772312019765942015-01-14T13:44:00.000+08:002015-01-14T13:44:10.763+08:00Goldman Sachs: Watch out for energy M&A in 2015
<br />
<div class="group-container">
<div class="embed-container cnbcvideo">
As Shire announces that it will buy U.S. company
NPS Pharmaceuticals, Richard Gnodde, co-CEO of Goldman Sachs
International, discusses the outlook for mergers and acquisitions in
2015, and says this deal is an Mergers and acquisitions (M&A) in healthcare looks set to be strong again this year, <a class="inline_quotes" data-gdsid="19203" data-inline-quote-symbol="GS" href="http://data.cnbc.com/quotes/GS" target="_blank">Goldman Sachs</a> said on Monday, following deal announcements from pharmaceutical giants <a class="inline_quotes" data-gdsid="31798" data-inline-quote-symbol="SHP-GB" href="http://data.cnbc.com/quotes/SHP-GB" target="_blank">Shire</a> and <a class="inline_quotes" data-gdsid="139802" data-inline-quote-symbol="ROG-CH" href="http://data.cnbc.com/quotes/ROG-CH" target="_blank">Roche Holdings</a>. </div>
<div class="embed-container cnbcvideo">
</div>
<div class="group" itemprop="articleBody">
And the co-CEO of Goldman Sachs International,
Richard Gnodde, also said that energy—a quieter sector for activity last
year—was set to shine in 2015.<br />
<br />
Over the weekend, <a class="inline_quotes" data-gdsid="31798" data-inline-quote-symbol="SHP-GB" href="http://data.cnbc.com/quotes/SHP-GB" target="_self">Shire</a> announced it would buy the U.S.'s <a href="http://www.cnbc.com/id/102327655" target="_self">NPS Pharmaceuticals for $5.2 billion</a>. This was Shire's first big move since a tax inversion deal with <a class="inline_quotes" data-gdsid="141202" data-inline-quote-symbol="ABBV" href="http://data.cnbc.com/quotes/ABBV" target="_blank">AbbVie</a> fell through last year, and shares jumped in early trade on Monday before paring gains.<br />
<br />
<br />
<div class="group-container">
<div class="embed-container cnbcvideo">
As Shire announces that it will buy U.S. company
NPS Pharmaceuticals, Richard Gnodde, co-CEO of Goldman Sachs
International, discusses the outlook for mergers and acquisitions in
2015, and says this deal is an Mergers and acquisitions (M&A) in healthcare looks set to be strong again this year, <a class="inline_quotes" data-gdsid="19203" data-inline-quote-symbol="GS" href="http://data.cnbc.com/quotes/GS" target="_blank">Goldman Sachs</a> said on Monday, following deal announcements from pharmaceutical giants <a class="inline_quotes" data-gdsid="31798" data-inline-quote-symbol="SHP-GB" href="http://data.cnbc.com/quotes/SHP-GB" target="_blank">Shire</a> and <a class="inline_quotes" data-gdsid="139802" data-inline-quote-symbol="ROG-CH" href="http://data.cnbc.com/quotes/ROG-CH" target="_blank">Roche Holdings</a>. </div>
<div class="embed-container cnbcvideo">
</div>
<div class="group" itemprop="articleBody">
And the co-CEO of Goldman Sachs International,
Richard Gnodde, also said that energy—a quieter sector for activity last
year—was set to shine in 2015.<br />
<br />
Over the weekend, <a class="inline_quotes" data-gdsid="31798" data-inline-quote-symbol="SHP-GB" href="http://data.cnbc.com/quotes/SHP-GB" target="_self">Shire</a> announced it would buy the U.S.'s <a href="http://www.cnbc.com/id/102327655" target="_self">NPS Pharmaceuticals for $5.2 billion</a>. This was Shire's first big move since a tax inversion deal with <a class="inline_quotes" data-gdsid="141202" data-inline-quote-symbol="ABBV" href="http://data.cnbc.com/quotes/ABBV" target="_blank">AbbVie</a> fell through last year, and shares jumped in early trade on Monday before paring gains. <br />
</div>
</div>
<div class="group-container">
<div class="embed-container image">
<div class="attribution">
<br /></div>
<div class="caption">
Ten milligram tablets of the hyperactivity drug, Adderall, made by Shire Plc.</div>
</div>
<div class="group" itemprop="articleBody">
Goldman Sachs acted as a financial adviser to <a class="inline_quotes" data-gdsid="26829" data-inline-quote-symbol="NPSP" href="http://data.cnbc.com/quotes/NPSP" target="_blank">NPS Pharma</a> regarding the deal, alongside Leerink Partners.<br />
<br />
<span>"It was terrific to see the market react on
the Shire side in the way it did, with the stock price going up, which
shows the market is really still supportive of M&A," Gnodde, who's
also co-head of investment banking at Goldman, said on Monday at the
bank's strategy conference in London. </span><br /> <br />
"We would expect M&A broadly to continue. We
think healthcare will be a big player; telecoms, again, will see a lot
of activity. But then potentially even some of the sectors that were
quieter last year (such as) energy—there has been so much change in the
energy space, that will likely lead to some activity too." <br />
<br />
</div>
</div>
<div class="group-container">
<h4 class="subtitle">
Most-targeted industry</h4>
<div class="group" itemprop="articleBody">
M&A volumes rebounded in 2014, rising 26 percent on
the year to $3.60 trillion, according to financial software provider
Dealogic. It marked the third-highest volume on record, behind 2007
($4.62 trillion) and 2006 ($3.91 trillion).<br />
<br />
Healthcare was the most targeted industry for M&A in 2014, with major deals including <a class="inline_quotes" data-gdsid="145092" data-inline-quote-symbol="ACT" href="http://data.cnbc.com/quotes/ACT" target="_blank">Actavis</a>'s $65.70 billion bid for <a class="inline_quotes" data-gdsid="8717" data-inline-quote-symbol="AGN" href="http://data.cnbc.com/quotes/AGN" target="_blank">Allergan</a>, and <a class="inline_quotes" data-gdsid="24489" data-inline-quote-symbol="MDT" href="http://data.cnbc.com/quotes/MDT" target="_blank">Medtronic</a>'s $46.8 billion offer for <a class="inline_quotes" data-gdsid="57310" data-inline-quote-symbol="COV" href="http://data.cnbc.com/quotes/COV" target="_blank">Covidien</a>.<br />
<br />
Shire's weekend announcement saw stockbroking firm
Panmure Gordon reiterate its "buy" recommendation on the Irish drug
major on Monday. <br />
<span class="label-read-more"></span><a href="http://www.cnbc.com/id/102328123" target="_blank"></a><br />
</div>
</div>
<div class="group-container">
<h4 class="subtitle">
Roche bid</h4>
<div class="group" itemprop="articleBody">
In other news from the sector, Switzerland's <a href="http://www.cnbc.com/id/102328163" target="_self">Roche made a majority bid for Massachusetts-based Foundation Medicine</a><span>—to which Goldman Sachs is also acting as an adviser.</span><br />
<br />
<span>Roche said it would tender for 15.6 million
shares in the genomic and molecular analysis firm at $50 a share—more
than twice their value on Friday—and said it would additionally invest
$250 million by acquiring 5 million newly issued shares at $50 per
share.</span><br />
<br />
Roche shares traded around 2 percent higher on Monday after the news.<br />
<br />
<article>
<div class="story">
<div class="content" id="article_body">
<div class="group-container">
<div class="embed-container cnbcvideo">
As Shire announces that it will buy U.S. company
NPS Pharmaceuticals, Richard Gnodde, co-CEO of Goldman Sachs
International, discusses the outlook for mergers and acquisitions in
2015, and says this deal is an Mergers and acquisitions (M&A) in healthcare looks set to be strong again this year, <a class="inline_quotes" data-gdsid="19203" data-inline-quote-symbol="GS" href="http://data.cnbc.com/quotes/GS" target="_blank">Goldman Sachs</a> said on Monday, following deal announcements from pharmaceutical giants <a class="inline_quotes" data-gdsid="31798" data-inline-quote-symbol="SHP-GB" href="http://data.cnbc.com/quotes/SHP-GB" target="_blank">Shire</a> and <a class="inline_quotes" data-gdsid="139802" data-inline-quote-symbol="ROG-CH" href="http://data.cnbc.com/quotes/ROG-CH" target="_blank">Roche Holdings</a>. </div>
<div class="embed-container cnbcvideo">
</div>
<div class="group" itemprop="articleBody">
And the co-CEO of Goldman Sachs International,
Richard Gnodde, also said that energy—a quieter sector for activity last
year—was set to shine in 2015.<br />
<br />
Over the weekend, <a class="inline_quotes" data-gdsid="31798" data-inline-quote-symbol="SHP-GB" href="http://data.cnbc.com/quotes/SHP-GB" target="_self">Shire</a> announced it would buy the U.S.'s <a href="http://www.cnbc.com/id/102327655" target="_self">NPS Pharmaceuticals for $5.2 billion</a>. This was Shire's first big move since a tax inversion deal with <a class="inline_quotes" data-gdsid="141202" data-inline-quote-symbol="ABBV" href="http://data.cnbc.com/quotes/ABBV" target="_blank">AbbVie</a> fell through last year, and shares jumped in early trade on Monday before paring gains. <br />
</div>
</div>
<div class="group-container">
<div class="embed-container image">
<div class="attribution">
<br /></div>
<div class="caption">
Ten milligram tablets of the hyperactivity drug, Adderall, made by Shire Plc.</div>
</div>
<div class="group" itemprop="articleBody">
Goldman Sachs acted as a financial adviser to <a class="inline_quotes" data-gdsid="26829" data-inline-quote-symbol="NPSP" href="http://data.cnbc.com/quotes/NPSP" target="_blank">NPS Pharma</a> regarding the deal, alongside Leerink Partners.<br />
<br />
<span>"It was terrific to see the market react on
the Shire side in the way it did, with the stock price going up, which
shows the market is really still supportive of M&A," Gnodde, who's
also co-head of investment banking at Goldman, said on Monday at the
bank's strategy conference in London. </span><br />
<br /> <br />
"We would expect M&A broadly to continue. We
think healthcare will be a big player; telecoms, again, will see a lot
of activity. But then potentially even some of the sectors that were
quieter last year (such as) energy—there has been so much change in the
energy space, that will likely lead to some activity too."<br />
<br /></div>
</div>
<div class="group-container">
<div class="group" itemprop="articleBody">
M&A volumes rebounded in 2014, rising 26 percent on
the year to $3.60 trillion, according to financial software provider
Dealogic. It marked the third-highest volume on record, behind 2007
($4.62 trillion) and 2006 ($3.91 trillion).<br />
<br />
Healthcare was the most targeted industry for M&A in 2014, with major deals including <a class="inline_quotes" data-gdsid="145092" data-inline-quote-symbol="ACT" href="http://data.cnbc.com/quotes/ACT" target="_blank">Actavis</a>'s $65.70 billion bid for <a class="inline_quotes" data-gdsid="8717" data-inline-quote-symbol="AGN" href="http://data.cnbc.com/quotes/AGN" target="_blank">Allergan</a>, and <a class="inline_quotes" data-gdsid="24489" data-inline-quote-symbol="MDT" href="http://data.cnbc.com/quotes/MDT" target="_blank">Medtronic</a>'s $46.8 billion offer for <a class="inline_quotes" data-gdsid="57310" data-inline-quote-symbol="COV" href="http://data.cnbc.com/quotes/COV" target="_blank">Covidien</a>.<br />
<br />
Shire's weekend announcement saw stockbroking firm
Panmure Gordon reiterate its "buy" recommendation on the Irish drug
major on Monday.<br />
</div>
</div>
<div class="group-container">
<h4 class="subtitle">
Roche bid</h4>
<div class="embed-container cnbcvideo">
In other news from the sector, Switzerland's <a href="http://www.cnbc.com/id/102328163" target="_self">Roche made a majority bid for Massachusetts-based Foundation Medicine</a><span>—to which Goldman Sachs is also acting as an adviser.</span><br />
<span>Roche said it would tender for 15.6 million
shares in the genomic and molecular analysis firm at $50 a share—more
than twice their value on Friday—and said it would additionally invest
$250 million by acquiring 5 million newly issued shares at $50 per
share.</span><br />
<br />
Roche shares traded around 2 percent higher on Monday after the news.<br />
</div>
<div class="embed-container cnbcvideo">
</div>
</div>
<div class="group-container">
<div class="group" itemprop="articleBody">
<span>"Markets are at much higher levels than when this
M&A run started 12-18 months ago. Premiums will start to compress as
the market gets to higher levels, but for the right assets you'll get
good premiums," said Gnodde, who joined Goldman Sachs in 1987 and helped
build the firm's European mergers and acquisitions franchise.</span><br />
<br />
Goldman Sachs advised on 414 deals worth a total
of $1.07 trillion in 2014, making it once again the top-performing
investment bank for M&A volumes, according to Dealogic. The deals
generated $2.04 billion of sales for Goldman, meaning the bank was also a
world-beater for M&A revenue. <br />
</div>
</div>
</div>
</div>
</article>
</div>
</div>
<br />
</div>
</div>
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-13223042341480340832015-01-14T13:37:00.001+08:002015-01-14T13:37:12.789+08:00How to Become a Millionaire by Age 30Getting rich and becoming a millionaire is a taboo topic. Saying it can be done by the age of 30 seems like a fantasy.<br />
<br />
It shouldn’t be taboo and it is possible. At the age of 21, I got out
of college, broke and in debt, and by the time I was 30, I was a
millionaire.<br />
<br />
Here are the 10 steps that will guarantee you will become a millionaire by 30.<br />
<br />
<strong>1. Follow the money.</strong> In today’s economic environment
you cannot save your way to millionaire status. The first step is to
focus on increasing your income in increments and repeating that. My
income was $3,000 a month and nine years later it was $20,000 a month.
Start following the money and it will force you to control revenue and
see opportunities.<br />
<br />
<strong>2. Don’t show off -- show up!</strong> I didn’t buy my first
luxury watch or car until my businesses and investments were producing
multiple secure flows of income. I was still driving a Toyota Camry when
I had become a millionaire. Be known for your work ethic, not the
trinkets that you buy.<br />
<br />
<strong>3. Save to invest, don’t save to save.</strong> The only
reason to save money is to invest it. Put your saved money into
secured, sacred (untouchable) accounts. Never use these accounts for
anything, not even an emergency. This will force you to continue to
follow step one (increase income). To this day, at least twice a year, I
am broke because I always invest my surpluses into ventures I cannot
access.<br />
<br />
<strong>4. Avoid debt that doesn’t pay you.</strong> Make it a rule
that you never use debt that won’t make you money. I borrowed money for a
car only because I knew it could increase my income. Rich people use
debt to leverage investments and grow cash flows. Poor people use debt
to buy things that make rich people richer.<br />
<br />
<strong>5. Treat money like a jealous lover.</strong> Millions wish
for financial freedom, but only those that make it a priority have
millions. To get rich and stay rich you will have to make it a priority.
Money is like a jealous lover. Ignore it and it will ignore you, or
worse, it will leave you for someone who makes it a priority.<br />
<br />
<strong><a href="http://www.entrepreneur.com/article/230610"></a></strong><br />
<strong>6. Money doesn’t sleep.</strong> Money doesn’t know about
clocks, schedules or holidays, and you shouldn’t either. Money loves
people that have a great work ethic. When I was 26 years old, I was in
retail and the store I worked at closed at 7 p.m. Most times you could
find me there at 11 p.m. making an extra sale. Never try to be the
smartest or luckiest person -- just make sure you outwork everyone.<br />
<br />
<strong>7. Poor makes no sense.</strong> I have been poor, and it
sucks. I have had just enough and that sucks almost as bad. Eliminate
any and all ideas that being poor is somehow OK. Bill Gates has said,
"If you’re born poor, it’s not your mistake. But if you die poor, it is
your mistake."<br />
<br />
<strong>8. Get a millionaire mentor.</strong> Most of us were brought
up middle class or poor and then hold ourselves to the limits and ideas
of that group. I have been studying millionaires to duplicate what they
did. Get your own personal millionaire mentor and study them. Most rich
people are extremely generous with their knowledge and their resources.<br />
<br />
<strong>9. Get your money to do the heavy lifting.</strong> Investing
is the Holy Grail in becoming a millionaire and you should make more
money off your investments than your work. If you don’t have surplus
money you won’t make investments. The second company I started required a
$50,000 investment. That company has paid me back that $50,000 every
month for the last 10 years. My third investment was in real estate,
where I started with $350,000, a large part of my net worth at the time.
I still own that property today and it continues to provide me with
income. Investing is the only reason to do the other steps, and your
money must work for you and do your heavy lifting.<br />
<br />
<strong>10.</strong> <strong>Shoot for $10 million, not $1 million.</strong>
The single biggest financial mistake I’ve made was not thinking big
enough. I encourage you to go for more than a million. There is no
shortage of money on this planet, only a shortage of people thinking big
enough.<br />
<br />
Apply these 10 steps and they will make you rich. Steer clear of
people that suggest your financial dreams are born of greed. Avoid
get-rich-quick schemes, be ethical, never give up, and once you make it,
be willing to help others get there too.Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-37870628147865491202014-11-18T17:58:00.001+08:002014-11-18T17:58:30.172+08:00'Red warning lights' flashing for global economy<div class="entry-content" id="yui_3_9_1_1_1416295165222_1244">
<div class="first" id="yui_3_9_1_1_1416295165222_1243">
LONDON (AP) — The global economy's problems seem to be multiplying.</div>
<div class="first" id="yui_3_9_1_1_1416295165222_1243">
<br /></div>
Hours
after the leaders of the world's 20 most developed economies sought to
boost confidence by promising to increase global output by $2 trillion
over five years, Japan said it had fallen into recession.<br />
<br />
That
leaves the country — the world's third-largest economy — on a long and
growing list of troubled economies. China is slowing as well, and Europe
can't seem to take off.<br />
Among major economies, only the United
States and Britain are growing at decent rates, and how long that lasts
depends on how much trouble their trading partners are in.<br />
<br />
British
Prime Minister David Cameron warned in an opinion piece in the Guardian
newspaper on Monday that the "red warning lights are flashing" for the
world economy.<br />
<br />
Here's a look at the problems in some key economies.<br />
<br />
JAPAN'S RECESSION<br />
<br />
This setback was not in the plan.<br />
<br />
Prime
Minister Shinzo Abe had pledged to end two decades of stagnation with a
strategy dubbed "Abenomics" that included big economic reforms and
stimulus. But the economy contracted at an annual pace of 1.6 percent in
the third quarter after housing and business investment dropped
following a sales tax increase.<br />
<br />
The contraction came despite predictions the economy would rebound from a drop in the previous three months.<br />
<br />
Consumer
spending is faltering as the population shrinks and grows older.
Household incomes peaked more than a decade ago, and workers are
increasingly having trouble making ends meet with part-time or contract
work.<br />
<br />
Manufacturers, meanwhile, have lost their leading edge in innovation while shifting production to cheaper locations offshore.<br />
<br />
Japan's
weakness could hinder growth elsewhere if its companies cut investment
and buy fewer imports such as machinery, electronics and raw materials.
The island nation is one of the world's biggest importers of food and
the third-biggest buyer of natural gas.<br />
<br />
CHINA'S DECLINING GROWTH<br />
<br />
Growth
in China, a manufacturing giant, is slowing — from 10.4 percent in 2010
to an estimated 7.5 percent this year. Explosive growth in China has
been one of the primary drivers of the world economy for the past
decade, so its slowdown is having ripple effects.<br />
<br />
The question for
Chinese leaders is how to let the country's economy slow to more
sustainable growth rates without having a "crash landing." The
government is trying to boost domestic spending while easing off its
dependence on trade and state-sponsored investment.<br />
<br />
Because China
has strong trade links to the West, a slowdown would do some damage to
the U.S. and Europe. Its massive manufacturing sector is a big consumer
of raw materials, so weaker growth would particularly hurt
commodity-producing countries like Australia and Brazil.<br />
<br />
EMERGING MARKETS<br />
<br />
China's slowdown from high rates is echoed in many other emerging markets, such as India and Brazil.<br />
<br />
Many
of these countries have benefited for years from a steady flow of
investment from developed economies. Because interest rates have been at
record lows in the U.S. and Europe, many investors there have sought
higher yields in emerging markets, where interest rates are higher.<br />
<br />
That
is changing, however. The U.S. Federal Reserve is considering raising
interest rates, which will entice some investors to keep their money in
the U.S. — or withdraw it from emerging markets.<br />
<br />
That flow of
money back to the U.S. can create huge turbulence in markets. It was
behind sharp drops in emerging markets and currencies in February, for
example.<br />
<br />
EUROZONE WOES<br />
<br />
The economy of the 18 euro countries
has been struggling to grow since it emerged from recession last year.
It expanded by a mere 0.2 percent in the third quarter from the previous
three-month period.<br />
Its problems are compounded by the threat of
deflation — when prices fall. A sustained drop would hurt growth by
encouraging people to delay purchases in hopes of better deals later on.<br />
<br />
Government
debt, meanwhile, remains high among large economies like France, Italy
and Britain. That means they will have to limit spending for years,
potentially stymieing growth.<br />
<br />
"National debt levels are perhaps
double what they were before the (2008) crisis," said John Whittaker, an
economist at Lancaster University's Management School.<br />
<br />
The
conflict in Ukraine is also raising uncertainty, leading to sanctions
between Russia and the U.S. and European Union. The impact has been
visible in a drop in factory orders and business confidence in Germany.<br />
<br />
The
eurozone's combined $13 billion economy is the world's second-biggest,
trailing only the United States, meaning its problems cast a pall over
the global economy.<br />
___<br />
Associated Press writer Elaine Kurtenbach contributed to this report.</div>
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-72047885892598390922014-08-20T14:56:00.000+08:002014-08-20T14:56:27.890+08:00Stock market bubble warnings grow louder<span class="cnnbyline js-vid-byline-"><span class="byline">By Matt Egan</span></span><br />
<br />
<h2>
Some of the brightest minds in finance are sounding the alarm about a stock market bubble.</h2>
They aren't warning of an imminent crash, but their comments should remind investors that the current bull market -- <a href="http://money.cnn.com/2014/03/06/investing/bull-market-five-years/?iid=EL">over five years long</a> -- can't last forever.<br />
<br />
<div id="ie_column">
<div id="quigo220">
<div align="center" id="ad-93d5279f95cb98c4" style="border: 0px none; display: block; margin: 0px; padding: 0px;">
</div>
</div>
</div>
<strong>1. Nobel Prize-winning economist Robert Shiller: Valuations at "worrisome" levels.</strong><br />
<strong> </strong> <br />
"The United States stock market looks very expensive right now," Robert Shiller wrote in a <a href="http://www.nytimes.com/2014/08/17/upshot/the-mystery-of-lofty-elevations.html?_r=0&abt=0002&abg=0" target="_blank">recent column for<i> The New York Times</i>.</a><br />
<br />
Shiller, a Yale University professor who is often cited as one of the
most influential people in economics and finance in the world, created a
metric that compares stock prices with corporate profits. The metric
recently climbed above 25. That level has only been surpassed three
times since 1881: 1929, 1999 and 2007.<br />
<br />
Steep market tumbles followed each instance, including the bursting of the dotcom bubble in the early 2000s. The <a href="http://money.cnn.com/data/markets/nasdaq/?iid=C_MT_Index">Nasdaq</a> still hasn't fully recovered from that meltdown.<br />
<br />
The Yale professor sounds bewildered by the lofty valuations for the
stock market, which has nearly tripled since the March 2009 bear market
lows.<br />
<br />
<a href="http://money.cnn.com/2014/05/21/investing/stock-returns-low-shiller/?iid=EL"><span class="inStoryHeading"></span></a> <br />
But none of this means it's time to sell everything. Shiller notes that
his gauge is a "very imprecise timing indicator" and said the market
could "remain at these valuations for years."<br />
<br />
<strong>2. Hedge fund king Carl Icahn believes there's a bubble.</strong><br />
<strong> </strong> <br />
"We can no longer simply depend on the Federal Reserve to keep filling the bunch bowl," the hedge fund billionaire <a href="http://carlicahn.tumblr.com/post/94535545751/the-bottom-line-by-carl-icahn" target="_blank">wrote on Tumblr</a> last week, referring to the numerous measures the Fed has taken to stimulate the U.S. economy.<br />
<br />
Icahn described a "dangerous financial situation" that includes
challenges tied to monetary policy, unemployment and income inequality.<br />
<br />
He also said recent comments from Fed chief Janet Yellen at the
International Monetary Fund "suggest, and I agree, that we are in an
asset bubble."<br />
<br />
<a href="http://money.cnn.com/2014/07/15/investing/fed-bubble-social-media-biotech/index.html?iid=EL"><span class="inStoryHeading"></span></a> <br />
Still, Icahn isn't calling for an imminent crash by any means. He
acknowledged a bubble might not burst for "the next one, five, ten or 20
years."<br />
<br />
It's also important to recall that Icahn currently
owns billions of dollars worth of stocks. During the second quarter he
even raised his stake in <span>eBay</span> <span>(<span class="inlink_chart"><a class="inlink" href="http://money.cnn.com/quote/quote.html?symb=EBAY&source=story_quote_link">EBAY</a></span>, <a href="http://money.cnn.com/technology/tech30/index.html?iid=EL">Tech30</a>)</span> and added a new investment in <span>Gannett</span> <span>(<span class="inlink_chart"><a class="inlink" href="http://money.cnn.com/quote/quote.html?symb=GCI&source=story_quote_link">GCI</a></span>)</span>. He still thinks there's value out there.<br />
<br />
<strong>3. Ex-Treasury secretary Robert Rubin: Low rates could spark another financial crisis.</strong><br />
<strong> </strong> <br />
"The risk of excesses and the consequent instability have increased
substantially," Rubin and Harvard professor Martin Feldstein wrote in an<a href="http://online.wsj.com/articles/martin-feldstein-and-robert-rubin-the-feds-systemic-risk-balancing-act-1407799902" target="_blank"> Op-Ed in <i>The Wall Street Journal</i></a><i> </i>last week.<br />
<br />
These financial luminaries (Feldstein served as chief economic adviser
to President Ronald Reagan) didn't explicitly say whether a bubble
already exists or if the Fed needs to hike rates now to prevent one.<br />
<br />
However, they did advise the central bank to consider the possibility
that the "excesses" caused by extremely low interest rates could "create
financial crises."<br />
<br />
Rubin and Feldstein pointed to record high
stock prices, "dramatically" lower spreads on low-quality junk bonds and
surging volumes of high-risk leveraged loans as alarming signs.<br />
<br />
If hedge funds are holding assets that suddenly pop in a bubble,
there's a risk of "contagion and snowballing effect" when they all hit
the exits at the same time, the duo wrote.<br />
<br />
Rubin should know
about this threat. He was in charge of Treasury in 1998 when collapsing
hedge fund Long-Term Capital Management imperiled the whole system.
Ultimately Wall Street was forced to come to the rescue with a $3.6
billion industry-funded bailout. <br />
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-3138134047227088992014-08-15T13:37:00.002+08:002014-08-15T13:37:56.884+08:00Smart investors ignore the news<h2>
<a class="column" href="http://www.marketwatch.com/Search?m=Column&mp=Chuck%20Jaffe">Chuck Jaffe</a> </h2>
<h2>
You can read the headlines, just don’t trade on them</h2>
<div class="leadin" id="">
If the market is making your head swim, you may be able to solve the
problem by turning off, tuning out and dropping out of the 24-hour news
cycle. </div>
<div class="leadin" id="">
<br /></div>
<div class="" id="">
That’s an odd suggestion coming from someone who works in the media, but
what makes it doubly strange is that it’s prompted in part by the
website I trust like no other, MarketWatch.com. Beyond simply being my
employer, I trust the site because I know personally the quality people
and journalists my fellow staffers are. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
But, last month, MarketWatch set a site record for the number of unique
visitors to its news pages, which set me to wondering what kind of
messages we were sending to both new and increasingly active visitors at
a time when they were presumably drawn in looking for some measure of
market guidance to calm their nerves or keep them on top of the
financial news. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
In the old days of newspapers, I would have gone through a stack of
front pages and looked at headlines. In the Internet world with its 24/7
action, that doesn’t work, because a busy news site will change its
front page multiple times over the course of a day, and there’s not
necessarily a record of what the site looked like with each of those
changes. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
So I looked at “snapshots” of MarketWatch’s front page, one each day —
just the top screen, always the first one available after 5 p.m. ET —
just to see what titles would have captured the attention of an average
investor seeking some guidance, perspective and outlook after the market
had closed for the day. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
Here were some of the highlights, in chronological order, from July (I
have removed the names of experts quoted; it’s unimportant if you
actually recognize the name, but highly important that a news site
wouldn’t use the name of a non-expert): </div>
<div class="" id="">
<br /></div>
<div class="" id="">
•‘This is not an average, typical or normal bull market’ [expert] says
</div>
<div class="" id="">
•Today’s bubbles aren’t like the famous bubbles of the past
</div>
<div class="" id="">
•If ever the stock market flashed a ‘sell’ signal, it’s now
</div>
<div class="" id="">
•‘Rotten rotation’ could signal bull market is living on borrowed time
</div>
<div class="" id="">
•[Expert]: U.S. stocks will be ‘very disappointing’ for 10 years
</div>
<div class="" id="">
•A stock correction is coming, then more years of gains; [expert]
</div>
<div class="" id="">
•[Expert] There’s a big hole in the bull case for stocks
</div>
<div class="" id="">
•We’re in the third biggest stock bubble in U.S. history
</div>
<div class="" id="">
•Not much fallout from Gaza, Ukraine? Wait a year, says [expert]
</div>
<div class="" id="">
•[Expert]: Great Crash of 2016, third $10 trillion loss this century
</div>
<div class="" id="">
•Greenspan says bubbles can’t be stopped without ‘crunch’
</div>
<div class="" id="">
•Buy-and-hold investing is impossible
</div>
<div class="" id="">
•Stock bubble is ‘beyond 1929 and 2007’: economist
</div>
<div class="" id="">
•Stock trader who called 3 crashes now sees a 20% collapse
</div>
<div class="" id="">
•[Expert]: Wait to be uber-bearish until autumn </div>
<div class="" id="">
<br /></div>
<div class="" id="">
That’s just 15 examples — one of them from my own column — less than
half of the investing-oriented headlines that caught my eye. I would
have included something from an expert suggesting a big gain ahead, but
there weren’t any of those atop the pages I looked at (they could have
been there at other times of day). </div>
<div class="" id="">
<br /></div>
<div class="" id="">
It’s no wonder after a barrage of headlines like that that the first
monthly measure of investor sentiment released for August — the
Investors’ Business Daily Economic Optimism Index — was down sharply. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
But at a time when the round-the-clock news cycle and the ubiquity of
social media makes it possible to not only read the stories but to feel
like you can influence the news — or at least the thinking of others who
have seen the same stories — it’s hard to believe there will ever be
enough agreement between the bulls and bears to believe an overall sense
of optimism. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
They’re no more likely to get together and see the situation in a
remotely similar way than impassioned Republicans and Democrats would be
to suddenly see key issues the same way, allowing for fast, easy
progress. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
Meanwhile, if this stuff confuses the general public, it enriches the sharpies on Wall Street.
</div>
<div class="" id="">
Malcolm Polley, president of Stewart Capital Advisors and co-manager of Stewart Capital Mid-Cap <span class="quotePeekContainer" style="cursor: pointer;">
<span class="quotepeekbase bgQuote up" id="quote1657665949">
<a class="plainsymbol" href="http://www.marketwatch.com/investing/fund/SCMFX">SCMFX</a>
<span class="data bgPercentChange symbol">+0.29%</span>
</span>
</span>
, could not have been more blunt about how the headlines are helpful to the industry, even if all they do is confuse the public. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
“To the extent that the news and information turns into crap — and that
crap turns into volatility — that’s good for me,” he said. “For us, it’s
information that creates a dramatic downward move in a price, where the
information might be valid, or it might be misunderstood. … The
knee-jerk reaction is ‘This looks bad, let’s get out,’ but that creates
opportunities if you understand the situation, rather than just reacting
to what you read or hear. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
“We like the information — and that there’s so much of it available — but most of it’s just noise.”
</div>
<div class="" id="">
Moreover, the constant prognostications have made it so that everyone
seems to think they can be a market weatherman, capable of spotting the
next squall, shower or sunny day. Relying on that purported “expertise,”
rather than trying to be prepared for all weather conditions is how
someone finds themselves sitting inside on the sunny days or getting
rained on without an umbrella during the showers. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
“The headlines and forecasts are interesting and funny, but they should
teach investors to just give up on the short-term trends, because even
if you are right there you’re not right for long,” said Ned Riley,
president of Riley Asset Management in Boston. “I sometimes make
short-term forecasts too, but I’d rather be right in the long-term.” </div>
<div class="" id="">
<br /></div>
<div class="" id="">
In short, reading the analysis and looking at the headlines is fine; it makes you a more informed investor. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
Acting on it is where investors get themselves into trouble. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
If you’ve been changing your actions based on the news, the headlines or
the websites you favor and it hasn’t been improving your investment
results, it may be time to disconnect your portfolio from what you are
reading and listening to. </div>
<div class="" id="">
<br /></div>
<div class="" id="">
Said Riley: “If you get the long-term forecast wrong – if you miss out
on the trend for the next few decades because you’re concerned about
what could happen in the next few weeks or the few weeks after that –
that’s how you wind up in real trouble. … It’s not about how many
corrections or downturns you called right if all those moves don’t add
up to making real money over a lifetime.” <span class="endsquare"></span>
</div>
<div class="" id="">
<br /></div>
<h2>
</h2>
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-13761574327493081342014-08-15T12:39:00.001+08:002014-08-15T12:39:19.058+08:00The Recession's Over: Clean Your Financial House and WinIf you were an operations leader during the 2008 Financial Crisis and
deep ensuing recession, you probably spent a lot of time on the phone
like I did, literally begging vendors and business partners not to
cancel credit lines or change payment terms vital to keeping a business
afloat.<br />
<br />
If that's the case, none of us were alone as total credit
market debt held by American businesses peaked in 2008; contracting by
$247.7 billion in 2009, the worst year of the downturn; not reaching
2008's levels again until 2011 or 2012.<br />
<br />
So what happens when
nearly a quarter of a trillion dollars in business credit is siphoned
out of the economy in one year, customers pay you slowly for past
business, banks stop lending, and customers stop buying new products?<br />
<br />
Welcome
to the world American COO's, CFO's, and CEO's faced just a few years
ago: a period of intense struggle and fight or flight mode for many of
us.<br />
<br />
Thankfully, business lending regained traction, increasing
from $11.66 trillion in 2008 to $13.60 trillion in 2013 and there's no
longer scores of doom-and-gloom reports about small business owners who
had their business credit cards cancelled with little notice from
lenders.<br />
<br />
Now that the "worst" seems to be over in this area,
hopefully, business leaders are able to breathe again and get back to
growing their companies after several tough years.<br />
<br />
Here's some things to consider moving forward:<br />
<br />
<strong>Clean Up Your Balance Sheet</strong>:
If you still have unpaid balances with business partners, tally them
up, formulate a realistic plan to retire your debt, and contact the
vendors as soon as possible. Americans are a very forgiving lot, even in
business, and professionals that you work with at one company can
easily become new business partners in another organization someday.<br />
<br />
Additionally,
it's much easier to reinstate cancelled or dormant credit lines with
vendors once you're paid up with them; providing you more resources that
you can leverage as you go out to win more business and grow your
company.<br />
<br />
<strong>Shore Up Your Banking Relationships</strong>:
Before the downturn, we worked with a fantastic business banker. He
looked like a winner, was smart as a whip, and always had half a dozen
ideas for helping us improve our business and maximize our relationship
with his bank. Unfortunately for us, <em>our banker</em> received a
promotion and we never "took" to his replacement; generally feeling that
this individual had little sense of our business needs or our business
in general.<br />
<br />
However, in 2010, our business hit a rough patch and my weak relationship with our <em>new banker</em>
became glaring; leading to us to briefly "audition" replacement banks,
before being reassigned to work with a more proactive banker at our home
bank.<br />
<br />
Don't make the mistake I made several years ago. A growing
business needs strong financial relationships and I didn't ask our new
banker to lunch or bring them into our office to see if they had any
genuine ability to help us. Instead, during a tough time, I worked with a
stranger and that's exactly how our new banker treated us.<br />
<br />
Now
that the downturn's over and hopefully your overall business and balance
sheet is in better shape; this is a great time to be scheduling lunch
or a meeting with your business banker when you don't need them, so you
can draw from a well filled with water instead of the dry well I dipped
in four years ago.<br />
<br />
<strong>Reward Your "Foxhole" Partners</strong>:
Who stood by you through thick-and-thin when things got rough in 2009
and 2010? The business partners who didn't shut off your copiers or
seize your computer equipment when you couldn't make regular payments
and struggling to bring receivables in.<br />
<br />
If you haven't done so,
those business partners should be thanked and lionized by your
organization. They stood by you during the worst of times; imagine what
kind of partners they'll be now that things are improving.<br />
<br />
<strong>Punish The Cowards</strong>:
Who cut-and-ran when things got rough in 2009 and 2010? The business
card issuer who cut your credit line by 70% or the vendor who put your
account on cash-on-delivery (COD) status when you were trying to
complete an important client assignment.<br />
<br />
If you haven't done so,
those business partners should be put under review by your organization.
They didn't stand by you during the worst of times; why reward their
cowardice and lack of faith in your business now that times are getting
better.<br />
<br />
Aren't you glad it's not 2009 or 2010 anymore?Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-74295351006145800902014-07-29T22:32:00.000+08:002014-07-29T22:32:27.301+08:003 Money Myths to Avoid at All CostsMyths are very troublesome because they’re hard to dispel. What’s
worse – if a myth crosses over from the realm of obscurity and becomes
mainstream “belief,” that’s when the trouble starts.<br />
<br />
<span id="more-19622"></span><br />
The sad thing is that a lot of people end up getting hurt by
accepting myths as truth – especially when it comes to financial myths
that many wrongly assume are right.<br />
<br />
So before you mistakenly set yourself on a course for financial
disaster, read about the 3 money myths you should avoid at all costs!<br />
<br />
<h4>
<strong>#1 Your Cash Savings are Completely Safe Sitting In a Bank Account </strong></h4>
One myth that most Singaporeans <em>thankfully</em> recognise is reality that their Central Provident Fund (CPF) account savings probably won’t be enough to retire comfortably on.<br />
<br />
If you’ve read our article on <a href="http://blog.moneysmart.sg/saving/what-you-can-use-your-cpf-for-besides-retirement/" target="_blank">what you can use your CPF for other than retirement</a>, you already know that you’re pretty much limited to using it on housing, investing, education and insurance.<br />
<br />
Of course, there are restrictions to how (and how much) you can use.
Plus, you know that your money is effectively trapped until you reach
the drawdown age (63 currently).<br />
<br />
So where else can you put your cash savings, especially if you want
to be able to access your money? For many, the only “safe” option is to
place their savings in a savings account.<br />
<br />
Yes, your cash will be safe in a Singapore bank. They are some of the
most stable and safest in the world after all (although if something
does happen, your account is only insured up to a maximum of $50,000
with the Deposit Insurance Scheme (DIS) – which is something to think
about).<br />
<br />
However, you’re forgetting one thing – the interest earned on your savings account is pathetically low, even on the <a href="http://blog.moneysmart.sg/saving/your-savings-account-sucks-here-are-some-that-dont/" target="_blank">best of savings accounts</a>.<br />
<br />
It’s simple arithmetic – if you’re making only 1%+ on your savings
account deposit but the rate of inflation is 3% each year (or worse),
your money isn’t safe at all. It’s actually being lost through
inflation.<br />
What can you do?<br />
<br />
Learn about investing – because it’s the only way you can grow your
money with an interest rate that’s sure to beat inflation. If you’re not
very knowledgeable about investing, make sure to check out our <a href="http://learn.moneysmart.sg/investing/" target="_blank">Investing Learning Center</a> to increase your knowledge.<br />
<br />
<h4>
<strong>#2 Your Expensive Home Renovations Will Greatly Increase Your Property’s Value</strong></h4>
You already know that your home is the biggest purchase (and
investment) you’ll ever make. It doesn’t matter whether you purchased a
Housing Development Board (HDB) flat or a condominium, the possibility
to see your property purchase soar in value exists.<br />
<br />
Chances are you already know (hopefully) that a property’s value is
really driven by a combination of nearby amenities (schools, public
transport, malls, etc.), view and rental yields (no oversupply of
flats/condos).<br />
However, many homeowners mistakenly think that trendy renovations will greatly boost their property’s value.<br />
<br />
That’s a huge and costly myth that has left many home owners in shock when a valuation comes back much lower than anticipated.<br />
<br />
The reason why most renovations fall flat when it comes to boosting a property’s value is simple – <em>not everyone has the same aesthetic taste and “trendy” renovations change with time. </em><br />
<br />
The reality is that expensive renovations won’t increase the value of your property as much as you expect it to.<br />
<br />
If you’re going to renovate your home and want <em>some </em>increase in value – go with <a href="http://blog.moneysmart.sg/property/can-renovations-raise-your-property-value/" target="_blank">functional renovations</a>
such as walk-in wardrobes, kitchen islands, wet rooms and partitioning
that combines two rooms (ex. a kitchen that doubles as a study/TV room).<br />
<br />
<h4>
<strong>#3 You Should Fully Be Invested in Bonds during Your Retirement Years </strong></h4>
On myth #1, you learned that investing is pretty much the only way to ensure your money grows at a rate that beats inflation.<br />
<br />
During your journey into investing, you’ll learn about <a href="http://blog.moneysmart.sg/invest/why-you-need-to-diversify-your-investments/" target="_blank">portfolio diversification</a> and the how you should adjust your investment portfolio periodically as you reach retirement age.<br />
<br />
Basically, when you begin investing in your 20s and 30s, your
portfolio will be more stock-heavy. Stocks are higher risk, but also
provide higher returns – making it easier for you to reach your
retirement goals.<br />
However, as you age and hit your 40s and 50s, your “appetite” for
risk and higher returns becomes less as you become more focussed on
bringing in “steady” returns that are less risky. That usually means
you’ll become more reliant on “safe” investment products such like
bonds.<br />
<br />
Once you hit retirement though, you shouldn’t just turn your invest
your entire portfolio in bonds. That’s actually a dangerous move
considering the life expectancy for Singaporeans is 82. That means if
you retire at 65, you need to make sure your nest egg lasts for another
17 years at least. And if you put turn everything into bonds, you’ll run
the risk of <em>outliving</em> your savings.<br />
<br />
You should always keep anywhere from 20% to 50%+ of your investment portfolio in stocks, depending on your risk appetite.<br />
<br />
That’s to ensure that your portfolio continues to generate returns so
you can maintain your retirement lifestyle for as long as possible.Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-59391852698618325252014-07-29T22:31:00.001+08:002014-07-29T22:31:32.339+08:00 The 3 Biggest Financial Objectives You Should Aim For in Your 40sAh, the wonderful 40s – the years when you begin to experience the
personal drama of dealing with teenage children, greying hair, weight
gain and just about every symptom of “midlife crisis” known to science.<br />
<br />
<span id="more-19638"></span><br />
Yeah, there will be plenty of personal and professional distractions
to deal with. But this isn’t the time to let your financial “guard” down
so you could start cruising through life.<br />
<br />
If you’re able to eliminate your <a href="http://blog.moneysmart.sg/credit-cards/destroy-your-credit-card-debt-with-this-powerfully-simple-approach/" target="_blank">credit card debt</a>
(or keep it to a very manageable level), build up a comfortable
emergency fund (at least three, but preferably six months’ or more worth
of your monthly salary) and pay great attention to the performance of
your investment portfolio – you’re on the right track towards making the
financial objectives in your 40s more achievable.<br />
<br />
Here are the 3 biggest financial objectives you should aim for in your glorious 40s:<br />
<br />
<h4>
<strong>#1 Prioritising Your Nest Egg</strong></h4>
Your 40s will be the “prime” period in your professional life. It’s
the decade when you’re advancing to higher positions in your career,
which equates to more income. In fact, your 40s will be the time when
your (hopefully) increasing income will play a large role in
accumulating wealth for the future.<br />
<br />
I can’t stress this enough – this decade is <em>extremely </em>important when it comes to your career <em>AND</em>
retirement future. If you’re stuck in a dead-end job or you’re not
receiving the annual pay raise you deserve, it’s in your best interest
to <a href="http://blog.moneysmart.sg/career/why-being-a-loyal-employee-may-be-more-harmful-than-you-think/" target="_blank">go to a company that will</a>.<br />
<br />
Remember – from this point on you only have a <em>limited</em> amount of working years left.<br />
<br />
Seriously, your career (and growing income) is important because it
will fuel your effort to put more cash into your retirement savings – <em>and that should be your first financial priority!</em><br />
<br />
If you have that squared away, you should then focus on freeing up as much cash as possible to put into savings.<br />
<br />
So pay down any credit card/unsecured debts to free up more cash, <a href="http://blog.moneysmart.sg/saving/3-simple-ways-to-generate-more-retirement-savings-if-youre-a-late-saver/" target="_blank">build up additional revenue streams</a>
(ex. Freelance), downgrade certain aspects of your lifestyle and if you
have the capacity – set aside some money for your kids’ future
education expenses with an education savings account if you haven’t
already.<br />
<br />
<h4>
<strong>#2 Ensuring Your Investment Portfolio Performs Well</strong></h4>
If you jumped into the <a href="http://blog.moneysmart.sg/invest/5-different-ways-you-can-invest-in-stocks-bonds/" target="_blank">investment game</a>
during your 20s and took a more “hands off” approach to portfolio
management in your 30s – you’ll definitely want to change that in your
40s! Well… unless you hire a highly competent fund manager with
reasonable fees who can monitor, advise and adjust your portfolio for
maximum returns.<br />
<br />
If you haven’t been didn’t monitor your portfolio too closely during
your 30s, it’s probably because it was performing reasonably well and
there was no need to make any major adjustments (otherwise, you would
have made them right?).<br />
<br />
You’ll want to be more hands on with your investing during your 40s
because these are your “high-income” years – that means you’ll have more
money on the line as you pump more cash into growing your nest egg.<br />
That also means you’ll need to <a href="http://blog.moneysmart.sg/invest/the-4-biggest-investment-decisions-every-investor-should-never-leave-out/" target="_blank">re-evaluate your investment goals and appetite for risk</a>.<br />
<br />
For example, if your goal for retirement savings goal you set in your
late 20s is less than half of the value of your portfolio in your 40s –
you’re going to have to make a choice on whether you want to take more
risk by having a stock-heavy portfolio that’ll hopefully generate more
returns quicker.<br />
<br />
<h4>
<strong>#3 Maintaining Control Over Your Spending</strong></h4>
Going into your 40s with fewer financial liabilities will leave you
feeling like you’ve won the retirement “game” already. You might even
begin to have thoughts of <a href="http://blog.moneysmart.sg/saving/since-cpf-cant-help-you-retire-early-here-are-3-ways-to-help-yourself-do-it/" target="_blank">early retirement</a> if you’re especially confident.<br />
<br />
It’s great to be in a position where you have minimal or no credit
card/unsecured debt to drag your finances down. However, keep in mind
that celebrating “victory” too early by losing control of your spending
in your 40s can really <a href="http://blog.moneysmart.sg/saving/3-money-mistakes-thatll-make-your-retirement-a-living-hell/" target="_blank">turn your retirement into a living hell</a>.<br />
<br />
The point is that you haven’t “won” the retirement game yet. Well…
maybe if you’ve earned millions by your 40s because you invented some
life changing product or got damn lucky with your investments – then you
got me. But the reality for most of us is that we’ll still need to keep
our ultimate retirement goal(s) in perspective.<br />
<br />
It’s completely fine to want to take an expensive holiday in the
Maldives, purchase a new car or renovate your home with a more modern
look – as long as it doesn’t interfere with objectives #1 and #2 on this
list.<br />
So pamper yourself a bit. You certainly deserve it. But do it in moderation please?Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-56758012181864946222014-07-29T22:30:00.002+08:002014-07-29T22:30:40.477+08:00The 3 Biggest Financial Objectives You Should Aim For in Your 30sAh, our industrious 30s – the years when we’re focussed on making
cash, getting promotions and starting a family. To draw inspiration from
Charles Dickens, these can be the best of years and the worst of years.
But one thing is for sure – this is the decade of your life will be
financially confusing!<br />
<br />
<span id="more-19497"></span><br />
Why?<br />
<br />
Simply because the amount of financial responsibilities (and
liabilities) you’ll have to deal with in your 30s usually dwarfs
anything you had to deal with during your 20s. You have to provide for
your family, service big loans (home, car, education) AND save for
retirement.<br />
<br />
While your salary is no doubt increasing, you’ll still possibly
struggle with trying to take care of all of your financial
responsibilities. Hopefully you already established your financial
groundwork during your 20s by paying off your credit card debt, starting
your retirement savings and creating an emergency fund.<br />
<br />
If you’re still working on those in your 30s, that’s OK. Continue to
work on them. If you’ve already taken care of those objectives, focus
your energy on these 3 financial objectives you should focus on in your
30s:<br />
<br />
<h4>
<strong>#1</strong> <strong>Continue the “Good Fight” Against Debt</strong></h4>
Credit card debt can be about as tough to kill as one of those movie
monsters you grew up watching. You know the movies that spawn numerous
sequels that are progressively worse than the last one? Anyway, if you
haven’t taken care of it by your 30s, continue to work on it is.<br />
<br />
There are many strategies for taking care of credit card debt, but
one of the easiest and quickest ways to knock it out is to do the
following:<br />
<ol>
<li>Evaluate and list the balances on each of your credit cards
(ideally, the debt-to-credit ratio of each as well, which is explained
in the section below)</li>
</ol>
<ol>
<li>Determine which credit card you want to pay off first (see section below)</li>
</ol>
<ol>
<li>Pay the minimum plus an additional 2X-4X+ the minimum on that credit card to pay it off faster</li>
</ol>
<ol>
<li>Once it’s paid off, apply the additional amount you paid on the first card <em>plus</em> the minimum of the first card towards your second credit card</li>
</ol>
<ol>
<li>Rinse and repeat until you’ve <em>destroyed</em> your credit card debt</li>
</ol>
Also, keep in mind that choosing the right card to prioritise and pay
off is extremely important too, so make sure you read our article on <a href="http://blog.moneysmart.sg/credit-cards/destroy-your-credit-card-debt-with-this-powerfully-simple-approach/" target="_blank">destroying credit card debt</a> to make the right choice.<br />
<br />
Remember, the more debt you pay off, the more you can use towards
your other debt obligations so you can pay them off faster. That means
your home, car and/or education loan.<br />
<br />
<h4>
<strong>#2 Start Saving Now For Your Kids’ Education </strong></h4>
Your 30s is a time when children start to enter the picture. Needless
to say, kids are a lifetime commitment that’ll bring you plenty of joy
and sleepless nights. Not to mention your budget will get much tighter
because your kids’ needs will come first – and boy do they have needs!<br />
<br />
However, it isn’t just your kids’ basic life necessities you must save and budget for – you’ve got to save for their future too!<br />
<br />
Thankfully, there are plenty of options available that’ll help you
save towards your kids’ future education expenses. In fact, many banks
and insurance companies in Singapore offer a variety plans ranging from
2-in-1 life insurance plans to education savings plans.<br />
<br />
Of course, you don’t have to do this, especially if you feel that
your kids should struggle with paying off an education loan the same way
you did (hey, it’s a life lesson right?) But if you’re the generous
sort that wants to prevent your kids from such a struggle, set aside
some money in your 30s (and possibly 40s) for your kids’ education.<br />
<br />
<h4>
<strong>#3 Re-evaluate Your Insurance Policies </strong></h4>
Hopefully during your 20s you picked up the three life insurance
policies that you absolutely need – medical insurance, life insurance
(term or whole life) and long-term disability insurance.<br />
<br />
If you have those insurance policies, great! If you don’t <em>*slap*</em> get them! And if you have those policies but haven’t evaluated them <em>*slap*</em> evaluate them! I mean really, if you haven’t re-evaluated your policy in the last year or two – <em>that’s still too long of a wait.</em><br />
<br />
The reality is that your life can change drastically in as little as
six months to a year – you could get married (or divorced), have a
child, buy a home/car or change jobs. All of these activities can have a
big impact on your insurance policy’s coverage and premium.<br />
<br />
So make sure you speak to your Financial Advisor (FA) or insurer (if
you’re handling your own insurance) about making adjustments to your
policies that’ll reflect the most recent changes in your life. If you’re
a DIY kind of guy or girl, make sure you check out our <a href="http://www.moneysmart.sg/insurance" target="_blank">insurance page</a> so that you can compare the insurance policies offered by Singapore’s major insurers quickly, easily and free of charge.Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-4184520665065775972014-07-29T15:08:00.003+08:002014-07-29T15:08:12.151+08:00 8 Slow, Difficult Steps To Become A Millionaire<span>Money of course isn't everything. Not by a long shot. Where
your definition of success is concerned, money may rank far down the
list. Everyone’s definition of “success” is different. Here's mine.</span><br />
<blockquote>
<i><span><span>Success is making those that believed in you look brilliant.</span></span></i><br />
</blockquote>
<span>For me, money doesn't matter all that much, but
I'll confess, it did at one time (probably because I didn't have very
much). So, </span><span>let’s say money is on your list. And let’s say,
like millions of other people, that you’d like to be a millionaire. What
kinds of things should you do to increase your chances of joining the
millionaire's club?</span><br />
<br />
<span>Here are the steps I'd suggest. They're neither fast nor easy. But, they're more likely to work than the quick and easy path.</span><br />
<br />
<span><strong>1. Stop obsessing about money.</strong></span><br />
<br />
<span>While
it sounds counterintuitive, maintaining a laser-like focus on how much
you make distracts you from doing the things that truly contribute to
building and growing wealth. So shift your perspective.</span><br />
<blockquote>
<i><span>See money not as the primary goal but as a by-product of doing the right things.</span></i><br />
</blockquote>
<strong><span>2. Start tracking how many people you help, even in a very small way.</span></strong><br />
<br />
<span>The
most successful people I know – both financially and in other ways –
are shockingly helpful. They’re incredibly good at understanding other
people and helping them achieve their goals. They know their success is
ultimately based on the success of the people around them.</span><br />
<br />
<span>So
they work hard to make other people successful: their employees, their
customers, their vendors and suppliers… because they know, if they can
do that, then their own success will surely follow.</span><br />
<span>And they will have built a business – or a career – they can be truly proud of.</span><br />
<br />
<strong><span>3. Stop thinking about making a million dollars and start thinking about serving a million people. </span></strong><br />
<br />
<span>When
you only have a few customers and your goal is to make a lot of money,
you’re incented to find ways to wring every last dollar out of those
customers. </span><br />
<br />
<span>But when you find a way to serve a
million people, many other benefits follow. The effect of word of mouth
is greatly magnified. The feedback you receive is exponentially greater –
and so are your opportunities to improve your products and services.
You get to hire more employees and benefit from their experience, their
skills, and their overall awesomeness. </span><br />
<br />
<span>And, in time,
your business becomes something you never dreamed of – because your
customers and your employees have taken you to places you couldn’t even
imagine. </span><br />
<br />
<span>Serve a million people – and serve them incredibly well – and the money will follow.</span><br />
<br />
<strong><span>4. See making money as a way to make more things.</span></strong><br />
<br />
<span>Generally speaking there are two types of people. </span><br />
<br />
<span>One makes things because they want to make money; the more things they make, the more money they make. <em>What</em> they make doesn’t really matter that much to them – they’ll make anything as long as it pays. </span><br />
<br />
<span>The
other wants to make money because it allows them to make more things.
They want to improve their product. They want to extend their line. The
want to create another book, another song, another movie. They love what
they make and they see making money as a way to do even more of what
they love. They dream of building a company that makes the best things
possible … and making money is the way to fuel that dream and build that
company they love.</span><br />
<br />
<span>While it is certainly possible to
find that one product that everyone wants and grow rich by selling that
product, most successful businesses evolve and grow and as they make
money, reinvest that money in a relentless pursuit of excellence. </span><br />
<blockquote>
<i><span>We don't make movies to make money, we make money to make more movies. ~Walt Disney</span></i><br />
</blockquote>
<strong><span>5. Do one thing better.</span></strong><br />
<br />
<span>Pick
one thing you're already better at than most people.Just. One. Thing.
Become maniacally focused at doing that one thing. Work. Train. Learn.
Practice. Evaluate. Refine. Be ruthlessly self-critical, not in a
masochistic way but to ensure you continue to work to improve every
aspect of that one thing.</span><br />
<br />
<span>Financially successful
people do at least one thing better than just about everyone around
them. (Of course it helps if you pick something to be great at that the
world also values – and will pay for.)</span><br />
<span>Excellence is
its own reward, but excellence also commands higher pay – and greater
respect, greater feelings of self-worth, greater fulfillment, a greater
sense of achievement… all of which make you rich in non-monetary terms.</span><br />
<br />
<span>Win-win.</span><br />
<br />
<strong><span>6. Make a list of the world’s ten best people at that one thing. </span></strong><br />
<br />
<span>How did you pick those ten? How did you determine who was the “best”? How did you measure their “success”? </span><br />
<br />
<span>Use those criteria to track your own progress towards becoming the best. </span><br />
<br />
<span>If
you're an author it could be Amazon rankings. If you’re a musician it
could be iTunes downloads. If you’re a programmer, it could be the
number of people that use your software. If you’re a leader it could be
the number of people you train and develop who move on to bigger and
better things. If you’re an online retailer it could be purchases per
visitor, or on-time shipping, or conversion rate…</span><br />
<span>Don’t
just admire successful people. Take a close look at what makes them
successful. Then use those criteria to help create your own measures of
success. And then…</span><br />
<br />
<strong><span>7. Consistently track your progress. </span></strong><br />
<br />
<span>We tend to become what we measure, so track your progress at least once a week against your key measures. </span><br />
<br />
<span>Maybe
you’ll measure how many people you’ve helped. Maybe you’ll measure how
many customers you’ve served. Maybe you’ll evaluate the key steps on
your journey to becoming the world’s best at one thing.</span><br />
<br />
<span>Maybe it’s a combination of those things, and more.</span><br />
<br />
<strong><span>8. Build routines that ensure progress.</span></strong><br />
<br />
<span>Never forget that achieving a goal is based on creating routines. Say you want to write a 200-page book; that’s your <em>goal</em>. Your system to achieve that goal could be to write 4 pages a day; that’s your <em>routine</em>.
Wishing and hoping won’t get you to a finished manuscript, but sticking
faithfully to your routine ensures you reach your goal.</span><br />
<br />
<span>Or say you want to land 100 new customers through inbound marketing. That’s your <em>goal</em>; your <em>routine</em>
is to create new content, new videos, new podcasts, new white papers,
etc. on whatever schedule you set. Stick to that routine and meet your
deadlines and if your content is great you will land those new
customers. </span><br />
<br />
<span>Wishing and hoping won’t get you there – sticking faithfully to your routine will.</span><br />
<br />
<span>Set
goals, create routines that support those goals, and then ruthlessly
track your progress. Fix what doesn’t work. Improve and repeat what does
work. Refine and revise and adapt and work hard every day to be better
than you were yesterday.</span><br />
<br />
<span>Soon you’ll be good. Then you’ll be great. And one day you’ll be world-class.</span><br />
<br />
<span>And then, probably without even noticing, you’ll also be a millionaire. You know, if you like that sort of thing. </span><br />
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-71340602784234838562014-07-28T21:52:00.000+08:002014-07-28T21:52:16.281+08:00What if you fail?Share with me your fears.Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-26417830495239316672014-07-28T21:38:00.000+08:002014-07-28T21:46:44.860+08:00Why Every Yuppie Should Have A Side Hustle In Addition To A 9-To-5 JobJERALDINE PHNEAH<br />
<br />
The idea of a side hustle is growing in popularity. It is estimated that 35 percent of Millennials in the United States are currently involved in a side business to earn a little extra money during their extra hours.
However, many have not joined in on this trend due to a lack of confidence or fear of being seen as “distracted” or “unfocused.”<br />
<br />
The idea of a side hustle is a simple one: It is “a tiny, independent venture you do during your free time when you’re not at your full-time job.” Side hustles come in many shapes and sizes. They could be anything: business venture, startup, app, part-time job or even tinkering with a blog.<br />
<br />
Side hustles are a form of career insurance that provide supplemental income or serve as a useful fallback in case of a layoff. But, a side hustle can also serve as a career accelerator that allows a person to build skills, form important relationships and develop new business ideas.
Here are the six main benefits from having a side hustle:<br />
<br />
1. You become a time-management champion.<br />
<br />
With a full-time job and side hustle, you will begin to look at 24 hours strategically. You spend your time much more wisely and always carefully weigh whether or not something is or isn’t worth your time.<br />
<br />
2. You make many connections.<br />
<br />
Being a blogger has enabled me to network with people who own businesses in different industries, like prominent civil society activists, people in PR and other bloggers, too. It has been a truly remarkable, inspiring, humbling experience.
If all you do is hang out at one job or in school, the number of people you know and experiences you have become very limited. So, step out of your comfort zone to access these wonderful opportunities that may change your life.<br />
<br />
3. You are only in your 20s once.<br />
<br />
As 20-somethings, many of us are single and without kids. With a flexible schedule and few commitments, it is the perfect decade to experiment with projects and find things we enjoy and are also good at doing.
If your side hustle fails, move on and try another. The loss is small because even when you do lose, you win in terms of new skills and lessons. In a sense, this is an upgrade.<br />
<br />
4. Money!<br />
<br />
A side hustle can diversify your income stream. From it, you can save expenses, gain extra income, or with a bit of luck and lots of hard work, turn it into a ful- time career. Even if it doesn’t turn into a full-time career, an extra hundred dollars each month can go a long way.
For some countries, like Singapore, homes can be really expensive and thus, having a side income helps a lot.<br />
<br />
5. Your side hustle will make you better at your real job.<br />
<br />
Contrary to what people assume, rather than compete for your attention at your full-time job, side hustles actually make you a better employee.
You often own the means of production and reap the full reward of your side hustle. If you succeed, the money is all yours.
This can be a huge motivating factor that will push you to do better in all modes of your work because you will feel less beaten down by day job monotony. Side hustles will invigorate your work ethic.<br />
<br />
Also, dabbling in the things you love can lift your mood, making you happier and more productive. According to Sandy Thompson of Y&R Advertising agency, “Multiple interests are how you create a happy life.
Employers see how [multi-careerism] makes their employees more productive and happier. And happy employers in the long run benefit”<br />
<br />
Furthermore, the skills you pick up are transferable. In fact, all skills are transferable. If your side hustle requires you to serve demanding clients in a high stress environment without losing your temper, being able to do so will serve you well as an employee, and in every other aspect of life.
I have learned a lot from being exposed to the real world while pursuing a challenging full-time undergraduate degree.<br />
<br />
You can also parlay your network contacts from your side hustle to benefit you at a current day job. One hand feeds the other and no time is wasted — even if your side hustle doesn’t pay well.
6. You will keep your mind active.
When you spend time on a side hustle, your mind is so much more active. Very often, a full-time job (even one that requires 50 or 60 hours of work per week) doesn’t teach us everything. We’re more concerned about the company’s mission and bottom line than our own personal growth.
A side hustle makes you more inquisitive and more capable.<br />
<br />
The more you train your mind, the sharper it becomes.
While you are getting started on your side hustle, remember these wise tips from Susan Gramm:
Determine if your side hustle violates your employment contract or policies.
If you need to gain approval or believe that what you’re doing will eventually become public, articulate the benefits to your employer or consider if it’s possible to eliminate the conflict of interest by providing services at no cost, at least in the early stages.<br />
<br />
Treat your side hustle like a business from the start with an eye toward eventually monetizing your services.
You don’t want to be a few years down the road wishing that you had invested in branding and an Internet presence, for example.
Prepare to run a “marathon and not a sprint” by investing two to three years working on both your day job and your side hustle.
Working two jobs means long hours and a lot of sacrifices. One idea, says former attorney Laurie Gay, is to switch “to a less demanding job” as “a more regular schedule [will permit you] to do more to get the ball rolling” sooner.Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-43264216474205767322014-07-28T21:36:00.002+08:002014-07-28T21:36:19.915+08:004 Investment Tips For Millennials Who Want To Be Stock Market Savvy<a href="http://elitedaily.com/author/wcasselljr/" rel="author" style="background-color: white; border: 0px; color: #666666; font-family: HelveticaNeue, 'Helvetica Neue', Helvetica, Arial, 'Lucida Grande', sans-serif; font-size: 13px; line-height: 19.5px; margin: 0px; padding: 0px; text-decoration: none; text-transform: uppercase; vertical-align: baseline;" title="Posts by Warren Cassell Jr.">WARREN CASSELL JR.</a><br />
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<span style="font-size: 13px;">I</span>n considering the wealthiest pe<span style="line-height: 1.25;">ople who ever lived, you’re likely to find several common traits among them. One of those traits is that many created their wealth from owning and investing in companies.</span></div>
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In fact, I don’t know of one wealthy person who created his or her wealth from simply saving a monthly paycheck. It is simply not possible to create wealth solely from saving, especially when inflation is on the rise.</div>
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Despite being very rewarding, the world of investing seems complicated and challenging. As a result, too many Millennials tend to shy away from the place where the wealthy get wealthier.</div>
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Here are four tips for Millennials to to use and invest successfully:</div>
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<span style="font-size: small;">1. Never Let Your Emotions Influence Your Decisions</span></h2>
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The most successful investor of all time, Warren Buffet, says that successfully investing over a lifetime does not require stratospheric IQ, unusual business insight or inside information.</div>
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It only requires a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.</div>
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My framework states that in order to diversify my risk, I should not put more than 25 percent of my net worth in any one sector. This mentality does not only apply to investing, but also to life.</div>
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When you make decisions based on your ever-changing emotions, you may end up doing something stupid. When you make decisions based on principles and standards, your decision-making process will no longer be arbitrary.</div>
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<span style="font-size: small;">2. Invest In Yield-Producing Assets</span></h2>
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The 2008 stock market crash wiped out several people, many of whom did not see any return on their investments. This is because they chose to invest in assets that only appreciated and had no yield.</div>
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When I invest, I don’t care about what is fashionable; I invest based on my framework.</div>
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Investing in yield-producing securities (securities that produce some form of regular income, such as dividends and interest) compensates the investor, while his or her capital appreciates.</div>
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Millennials can generate another stream of income if they invest in dividend-paying stocks and high-interest bonds.</div>
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What I love most about investing in dividend-paying stocks is that the managers of the company must constantly ask themselves where they are supposed to generate income to distribute to the shareholders.</div>
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This keeps them diligent and focused on increasing the company’s revenue.</div>
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<span style="font-size: small;">3. Prudently Use External Capita<b style="border: 0px; font-family: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">l</b></span></h2>
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Another common practice among the wealthy is the use of other people’s money to create wealth. When Warren Buffet started his career, he created investment partnerships and had people put money into a fund that he managed.</div>
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He would then charge investors 20 percent of the profits he created for them. This is an example of how he used other people’s money to create an income stream for himself.</div>
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Jamaican billionaire Michael Lee-Chin is another example of how using external capital can create wealth. He borrowed $500,000 to invest in a financial services company that he thought would grow.</div>
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Seven years after that, $500,000 appreciated to $3,500,000.</div>
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<span style="font-size: small;">4. When Investing, Think Long Term</span></h2>
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Investing is all about taking calculated risks, not wild gambles. People who buy stock in a company they have not researched thoroughly do not invest, they speculate. The hallmark of investing is understanding what you own.</div>
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You will be much better off in the long run when you invest in a company because you think it is an excellent business that will steadily grow in the long run and while it grows, will pay a reasonable dividend.</div>
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Don’t invest in a company because you think the price of the stock will increase in a few minutes, weeks or months</div>
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0tag:blogger.com,1999:blog-8901496247608860246.post-49965218008112374682014-07-28T01:57:00.001+08:002014-07-28T01:57:48.105+08:00What to do if you haven’t saved a dime for retirementBy Jonathan Clements<br />
<br />
<div class="leadin" id="">
Here’s a grim statistic: Half of workers age 55 and older have less than
$50,000 in savings, according to the Employee Benefit Research
Institute’s 2014 Retirement Confidence Survey. </div>
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<br /></div>
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Some of these folks have traditional defined-benefit pensions, so
they’re in better shape than it seems. But most don’t. That means their
retirement will be built on modest savings, Social Security and maybe
some home equity. </div>
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<br /></div>
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Does that describe someone you know — or perhaps your own financial
situation? If so, how can you retire in at least moderate comfort? My
advice: Try mightily to keep pulling in a paycheck until at least age
70, at which point you would claim delayed Social Security retirement
benefits. </div>
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<br /></div>
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Toughing it out in the workforce won’t be easy. Many people are forced
to retire earlier than they had hoped to. According to the 2014
Retirement Confidence Survey, workers typically say they expect to
retire at age 65 — but it turns out the median retirement age is
actually 62. </div>
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<br /></div>
<div class="" id="">
<strong>Anything that pays</strong></div>
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<strong> </strong>
</div>
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What happens if you get forced out of your job earlier than you’d like?
Try to find a job that will cover the bills, so you can put off claiming
Social Security. That might mean taking work for which you’re
overqualified and that pays less than the job you were forced out of.
But collecting some sort of paycheck, so you can delay Social Security,
could be the key to a modest retirement. </div>
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<br /></div>
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Most retirees, of course, don’t delay Social Security. In fact, in 2012,
45% of men and 51% of women claiming Social Security retirement
benefits were age 62, the youngest possible age. (These figures ignore
those on Social Security disability benefits who were then swapped over
to receive retirement benefits.) Claiming at 62 might be the right
decision if you and, if married, your spouse are both in poor health. </div>
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<br /></div>
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But for most folks, it’s likely a mistake, because taking benefits early
means accepting a permanently shrunken monthly check. Let’s say your
full Social Security retirement age is 66, at which point you could get
$1,400 a month, equal to $16,800 a year. This is roughly the average
amount that Social Security recipients are entitled to. </div>
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<br /></div>
<div class="" id="">
If you claim at 62, you would take a 25% hit, leaving you with $1,050 a
month, or $12,600 a year. By contrast, if you delayed benefits from 66
to 70, you would get 32% more. That would mean $1,848 a month, equal to
$22,176 a year. This doesn’t reflect any increases because of inflation. </div>
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<br /></div>
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<strong>A good deal</strong></div>
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<strong> </strong>
</div>
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True, $22,176 at age 70 won’t pay for a lavish retirement. But unless you have a lot of other income, you shouldn’t have to pay <span class="mandelbrot_refrag"><a class="mandelbrot_refrag" data-ls-seen="1" href="http://www.marketwatch.com/taxes?lc=int_mb_1001">taxes</a></span>
on your Social Security benefit. Indeed, Social Security is perhaps the
best income stream available to retirees. It’s indexed to inflation,
backed by the federal government, at least partially tax-free, and you
know you’ll get it for as long as you live. Moreover, your spouse may
receive your benefit as a survivor benefit, assuming you die first. </div>
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<br /></div>
<div class="" id="">
Does waiting until 70 seem too long? If you are married and you were the
main breadwinner, you might “file and suspend” once you reach your full
Social Security retirement age of 66 or 67. That will allow your
husband or wife to claim spousal benefits, so you have some extra money
coming in, while you continue to delay your benefit until age 70. </div>
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<br /></div>
<div class="" id="">
That spousal benefit can be worth as much as half your benefit as of
your full retirement age. For instance, if your full retirement age
benefit is $1,400 a month, your spouse could receive $700.
</div>
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Even as you postpone Social Security, try to save what you can. Also
look to slash your cost of living. That might mean trading down to a
less-expensive home and making a big push to get all debts paid off
before you retire. </div>
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<br /></div>
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Don’t like the idea of postponing retirement until age 70? Keep in mind
that, even at 70, median life expectancy is 15 years for men and 17
years for women, and you could live longer than average. </div>
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<br /></div>
<div class="" id="">
<strong>A sense of purpose </strong></div>
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<strong> </strong>
</div>
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Moreover, continuing to work late in life isn’t all bad. We all need a
sense of purpose to our lives — which is why many retirees volunteer,
take up hobbies, help at local schools and take college courses.
</div>
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Admittedly, these are things retirees choose to do, while your financial
situation is forcing you to work. Still, working until age 70 could
give you the social, intellectual and physical stimulation that we all
need.
</div>
Janny Colehttp://www.blogger.com/profile/05249891681778509722noreply@blogger.com0