Financial advisors will have a new regulation to deal with starting April 10: It's called the fiduciary rule, and it's the biggest legal change governing the financial advice industry in years.
Endorsed by former President Barack Obama's administration, the "fiduciary standard" will have significant implications for the investment world. Said differently, Obama pushed to require financial advisors to put the client's needs before their own. That's right. Until the rule goes into effect, your advisor may not have your best interests in mind. As the law currently stands, broker-dealers, insurance salespersons and advisors operating under the "suitability standard" are merely required to ensure an investment is suitable for a client at the time of the investment. Read Article: http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2015/03/19/is-your-financial-advisor-a-fiduciary The increase in bankruptcy activity that began in 2015 accelerated in 2016. The number of publicly traded companies filing for bankruptcy this past year jumped to at least 95 from 79 in 2015, and the total assets of public companies going into Chapters 7, 9 and 11 during 2016 rose by nearly $27 billion to almost $104 billion. Both of these numbers were at the highest level since 2009. The 2016 crop of filings included nine with assets above $3 billion compared to six in 2015 and only two in 2014. Similarly, there were 25 bankruptcies with assets over $1 billion in 2016 versus 19 in 2015 and 11 the previous year.
Energy and mining companies dominated the large corporate bankruptcies once again in 2016. Eleven of the top 15 Chapter 11 filings were by companies in the oil & gas, mining and related sectors. This doesn’t even include the largest filing in 2016, SunEdison, which is involved with a different form of energy – solar. However, it appears that the energy-related bankruptcies are slowing and more filings are coming from other sectors. In the second half of 2016 more than two-thirds of the bankruptcies came from industries outside of energy. While we believe that overall bankruptcy activity will remain at a high level for the foreseeable future, we think that filings in the energy sector may have peaked. They won’t dry up overnight however, and we anticipate that energy bankruptcies will gradually decline over the next 12 to 18 months. Read Entire Article: http://www.turnaroundletter.com/bankruptcy-investing Despite the benefits of putting some money away, most people take a passing interest in actually doing it. If you'd like to make regular saving a part of your life, read on to find out how to conquer the first step: finding that extra money.
You can begin by paying attention to these top money wasting activities. Convenience Stores Many people don't think about the markup they pay for convenience store items. Here's a hint: it's huge. This is because, unlike grocery stores, convenience stores don't purchase food in large quantities, and also because they make you pay more for the convenience they provide. So, unless it's an emergency situation, avoid shopping at convenience stores. The premium you pay for convenience is not worth the assumed convenience you get. For example, a bottle of Coke at a convenience store might cost you around two dollars, while you can go to Amazon and buy a 12-pack for $16. If you tend to pull over for a drink, buy a 12-pack and keep it in your car. If you visit convenience stores often, the annual savings of cutting out these visits can be tremendous. Cell Phone Plans Take the time to check your monthly cell phone bill - you may be paying more than you need to. If you are using fewer minutes than your monthly plan allows, switch to a lower-rate plan. If you are using more minutes than your monthly allotment, then upgrade to a higher minute plan. Before making any changes to your plan, sit down with a list of your cell phone company's offerings and compare and determine which plan provides the most value based on your needs. You should also scan through your cell phone plan for added features like text messaging and mobile internet. If you aren't really using these features, get rid of them - they're costing you money each month! Soft Drinks This one is a sneaky money waster. Not only does ordering beverages along with a restaurant meal boost your total expenses, but soft drinks also have one of the highest markups of any restaurant item, and thus provide lower value for your money. Consider a typical family of four that eats out twice a week at fast casual restaurants. Assuming an average price of $1.50 for a fountain soft drink, that totals $12 a week, $48 a month, $624 a year. Just cutting out this one item from your meal could mean significant savings that could go into something much more productive, such as a retirement savings plan. If you invest $624 at a 9% rate of return year every year, you would have almost $32,000 at the end of 20 years. So dine out, but opt for water! Unnecessary Bank Fees Many people unknowingly pay a lot to their banks in the form of fees. If you don't know what fees your accounts are subject to, spend a few minutes finding out. Some banks charge ATM fees for using another bank's ATM, for example. These can be as high as $3! This amounts to a 15% one-time fee for a $20 withdrawal. The key with this type of fee is simply knowing about it. You would be better off using a credit card to make the purchase. Go back and examine the rules governing your checking and savings accounts. Also consider consolidating bank accounts, as often one account with a larger minimum can eliminate numerous fees that might otherwise exist. Magazines If you're the type of person who likes to occasionally pick up your favorite magazine from the local grocery store or newsstand, consider getting an annual subscription. Even if you don't want the magazine every month, a couple of issues at the newsstand are enough to cover the entire annual subscription. Annual Credit Card Fees Unless you have a poor credit history, there is no reason to pay annual credit card fees. A host of Visa, MasterCard and Discover cards have no annual fee, yet many people pay $100 or more a year for the privilege of holding a premium credit card. Unless you're a wealthy, exclusive holder of an elite-level credit card with exclusive perks, most people should not be paying annual credit card fees. And speaking of credit cards, make sure you make a payment on time every month, even if it's the minimum. Many credit cards charge high monthly late fees, charges which accrue interest along with your existing balance. Be Proactive Spend a couple of hours and go over the above categories along with any other regular habits you may have accumulated over the years. The time will be well spent as it could mean hundreds of dollars of recurring annual savings. The Bottom Line Shopping at convenience stores, wasting money on magazines, and high credit card and bank fees are easy ways to waste money. Taking some time to go over your spending habits could be well worth your time. Read more: Top 6 Mindless Money Wasters http://www.investopedia.com/articles/pf/10/mindless-money-wasters.asp#ixzz4devy8AqW Follow us: Investopedia on Facebook Unfortunately, personal finance has not yet become a required subject in high school or college, so you might be fairly clueless about how to manage your money when you're out in the real world for the first time.
To help you get started, we'll take a look at eight of the most important things to understand about money if you want to live a comfortable and prosperous life. Learn Self-ControlIf you're lucky, your parents taught you this skill when you were a kid. If not, keep in mind that the sooner you learn the fine art of delaying gratification, the sooner you'll find it easy to keep your finances in order. Although you can effortlessly purchase an item on credit the minute you want it, it's better to wait until you've actually saved up the money. Do you really want to pay interest on a pair of jeans or a box of cereal? (To learn more about credit, check out Understanding Credit Card Interest and our Credit And Debt Management feature.) Read more: 8 Financial Tips For Young Adults http://www.investopedia.com/articles/younginvestors/08/eight-tips.asp#ixzz4dY8mGKh9 Follow us: Investopedia on Facebook You're putting in a lot of time. You're asking your people to put in a lot of time. But is it paying off?
Actually, no. A Stanford validation study of a prior work study (The Productivity of Working Hours), found the magic work week number to be 48-hours.
That's true for leaders. That's true for front-line employees. Long Hours Don't Equate to SuccessIf you're one of these leaders, it's time to squash the notion that fast-growth requires long hours all day, every day, every weekend. The opposite is true. You're holding on to tradition and folklore, not sound wisdom. No doubt there will be times when great effort and hours are required. But that's the exception, not the rule. Take the lead. Take the night and weekend off. Encourage your employees to do the same. You'll be more refreshed, sharp and on-point if you take your nights and weekends off. So will your employees. Read Article: http://www.inc.com/chad-perry/38-of-leaders-work-nights-and-weekends-and-why-they-should-stop.html?cid=sf01001&sr_share=twitter |
AuthorJoshua Nahas Archives
May 2017
Categories |