This posting strays from the typical blog that you will normally find on my "financial tips" site, but certain networking approaches amaze me. When it comes to utilizing tools to expand your business, whether it be product or service based, one must be tactful. The idea is to offer your services to others in return for the possibility that you may get some business in return down the road.
If you go out in search of people who are waiting around, wishing that someone would approach them with a request for their help, you will find that those opportunities rarely exist. It has been my practice to reach out to those that I know I can help, and hope for the best. The worst thing that can happen is that you help them and they do not return the favor. This is not an ideal situation by any means, but it happens. People that commonly network like this are bound to be unsuccessful in the long run. It all goes back to the idea behind Ralph Waldo Emerson's Compensation. Those of you who have read this essay know that it all boils down to the golden rule.
My point is this: When attempting to establish a professional network, be empathetic. In general, you will find that by initially offering your assistance to another professional, you will be more than satisfied with the ensuing reciprication.
Please visit my website at http://www.eradviser/ to see how I may be able to help you.
May 21, 2008
May 17, 2008
Did volatility really kill the cat?
Considering the economic outlook for the remainder of 2008, this could be a more appropriate question than you might think. As far as I can see, that cat better be careful!
I'm sure you're asking yourself, "What is volatility and how does it relate to cats?" Simply put, there is no connection between volatility and the animal kingdom. By definition, volatility is a measure used to quantify the risk present in any type of stock market investment. It refers to the up and down movement seen on a daily basis in the price of stocks, bonds, mutual funds, etc. Typically, the greater the inherent risk, the more volatile the investment (see the investopedia.com volatility definition).
So, why do I find it necessary to write about volatility right now? Well, 2008 may be one of the most volatile years the stock market has ever seen. Ask 10 people about their attitude on the US economy over the next year, and you could very well get 10 different answers. With the US Dollar dropping to uncharted territory, the price of oil, gas and other commodities skyrocketing, residential real estate plummeting, and unemployment looking grim, it's no wonder that the future looks a little cloudy. Combine these concerns with this year's title fight, I mean presidential race, and it all starts to make sense. No one has a clue about where we go from here.
Everyday, new reports come out filled with economic data, and everyday the market reacts positively or negatively to the news. The sheer fact that we see volatility based on these reports is common, it's the size of the ebbs and flows that we need to focus on. Normally, an active market means big money for investors, because let's face it, no one wins in a quiet market. To a Wall Street trader, volatility equals opportunity. The stock market is based on this idea.
But... where do we draw the line? When is too much volatility a warning sign? These are the questions of today. Although, good investments always exist, it is more important than ever to pay attention to the asset allocation in your portfolio. When people feel the most comfortable with a particular asset class (i.e. commodities), it just may be time to look for the next trend. Opportunities are plentiful in today's market. Just be careful... and PLEASE don't act on emotion! Those that let feelings get in the way in this volatile market, may end up just like the cat!
I'm sure you're asking yourself, "What is volatility and how does it relate to cats?" Simply put, there is no connection between volatility and the animal kingdom. By definition, volatility is a measure used to quantify the risk present in any type of stock market investment. It refers to the up and down movement seen on a daily basis in the price of stocks, bonds, mutual funds, etc. Typically, the greater the inherent risk, the more volatile the investment (see the investopedia.com volatility definition).
So, why do I find it necessary to write about volatility right now? Well, 2008 may be one of the most volatile years the stock market has ever seen. Ask 10 people about their attitude on the US economy over the next year, and you could very well get 10 different answers. With the US Dollar dropping to uncharted territory, the price of oil, gas and other commodities skyrocketing, residential real estate plummeting, and unemployment looking grim, it's no wonder that the future looks a little cloudy. Combine these concerns with this year's title fight, I mean presidential race, and it all starts to make sense. No one has a clue about where we go from here.
Everyday, new reports come out filled with economic data, and everyday the market reacts positively or negatively to the news. The sheer fact that we see volatility based on these reports is common, it's the size of the ebbs and flows that we need to focus on. Normally, an active market means big money for investors, because let's face it, no one wins in a quiet market. To a Wall Street trader, volatility equals opportunity. The stock market is based on this idea.
But... where do we draw the line? When is too much volatility a warning sign? These are the questions of today. Although, good investments always exist, it is more important than ever to pay attention to the asset allocation in your portfolio. When people feel the most comfortable with a particular asset class (i.e. commodities), it just may be time to look for the next trend. Opportunities are plentiful in today's market. Just be careful... and PLEASE don't act on emotion! Those that let feelings get in the way in this volatile market, may end up just like the cat!
May 15, 2008
Is your retirement account working for you?
I recently heard a shocking fact that needs to be addressed: Over 65% of all Americans aren't saving enough for retirement! In simple terms, if one retires at 65 years old, he/she should have 10 times the final year's pay saved for retirement. The problem is not necessarily that people refuse to save, but that they do not know how much to put away.
It is the job of the company, as a fudiciary, to provide advice on how to plan for retirement. Providing online tools for "self planning" is not the answer, but this is unfortunately how this fudiciary responsibility is typically "met". In 98% of the magazine and newspaper articles that I have read over the years, the above rule of 10 is never stated. This seems to be because people just don't have a firm grasp of how retirement works.
Another fact may even be more concerning than the previous one. Over 33% of people that participate in company sponsored 401(k) plans, do not contribute enough to receive the full company match! This is free money that people are choosing not to accept! Firms that offer a 401(k) plan are required to provide a match (usually between 2 and 5% of the employees salary), but only if the employee contributes an equal amount.
The fact that the majority of people are under-saving for retirement, yet many are not taking advantage of the company match, leads me to an obvious conclusion: If people would contribute more to their 401(k), at least meeting the amount needed for a full company match, their retirement savings would increase exponentially! The additional employee contribution would be matched by the employer and the investments would do the rest.
For more advice on retirement planning contact me through my website at www.eradviser.com
It is the job of the company, as a fudiciary, to provide advice on how to plan for retirement. Providing online tools for "self planning" is not the answer, but this is unfortunately how this fudiciary responsibility is typically "met". In 98% of the magazine and newspaper articles that I have read over the years, the above rule of 10 is never stated. This seems to be because people just don't have a firm grasp of how retirement works.
Another fact may even be more concerning than the previous one. Over 33% of people that participate in company sponsored 401(k) plans, do not contribute enough to receive the full company match! This is free money that people are choosing not to accept! Firms that offer a 401(k) plan are required to provide a match (usually between 2 and 5% of the employees salary), but only if the employee contributes an equal amount.
The fact that the majority of people are under-saving for retirement, yet many are not taking advantage of the company match, leads me to an obvious conclusion: If people would contribute more to their 401(k), at least meeting the amount needed for a full company match, their retirement savings would increase exponentially! The additional employee contribution would be matched by the employer and the investments would do the rest.
For more advice on retirement planning contact me through my website at www.eradviser.com
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