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 PromoReturn to index of stories... |
An Investor Survival Guide. Sunday at 9:30am/Monday at 6:00pm only on New Hampshire Public Television. |
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Investing in Turbulent Times. An Investor Survival Guide. Now on New Hampshire Public Television. |
| Hello/Intro Investing Return to index of stories... |
Hello Everyone. I'm Myron Kandel. Welcome to More Than Money: An Investor Survival Guide. I'm here at the historic Mount Washington resort in Bretton Woods, New Hampshire. It was here in 1944, in the midst of World War II, that delegates from 44 nations gathered to establish the World Bank, the International Monetary Fund, set the gold standard and tied the value of global currencies to the U.S. dollar. At the time of the Bretton Woods Conference, the world was not as connected as it is now. Few Americans could control their own financial destinies. Stocks were mostly for the rich and global investing was not yet in vogue. Now as world leaders once again grapple with financial crises, most Americans DO have a stake in the market. So, as stock prices swing wildly, what's an individual investor to do? In the next half-hour we hope to give you some ideas. We begin with a story of personal investing. Beth Carroll introduces us to someone who understands that now, more than ever, knowledge of the stock market is critical. Mutual fund: 1. What's A mutual fund? A collection of stocks and bonds invested by a professional money manager. Is that a good strategy? 2. Dee Lee, author of several books, including "Let's talk MONEY" says don't let all this instant communication fool you. 3. More Than Money: An Investor Survival Guide has been made possible by a grant from the Investor Protection Trust and in association with the New Hampshire Bureau of Securities Regulation and the Center for Public Responsibility and Corporate Citizenship |
| Personal Investing Return to index of stories... |
REVISED OCT 24 MARK SCRIPT- MARK/ Personal investment Possible intro: It's being called a once in a century financial meltdown. Crippling stock market losses are forcing many older workers to postpone or modify their retirement plans. That's why now, more than ever knowledge of the stock market is so important. Nats: vids closing bell or markets TRK1: Historically, stocks have earned investors 10% a year outperforming all other investments in the long run. TRK 1.5 The 2008 financial crisis turned the investment world upside down - driving the faint-hearted out of the market. But, experts say for those looking to make their money grow long-term…Wall Street is the place to be. NATS: Kramer and CNBC finance shows TRK2: The gyrations of the market are now covered 24-7, on tv, on radio, on line. NATS: Markets/ financial show on line Mad Money 8:16:25 SOT DEE: Kramer in real life is not like that at all. Of course the height, I am waiting to have a stroke on this TV show, but that's to get you interested, it gets your adrenaline flowing. TRK3: Dee Lee, author of several books, including "Let's talk MONEY" says don't let all this instant communication fool you. SOT: DEE/ If you don't know what the stock he is talking about, if you don't understand how it works in the market place you should not be investing in it. That advice holds true for Kramer as it does for anything else. SOT dee: 8:10:10 There are a lot of scary investments out here nobody should be investing in. TRK4: When it comes to investing wisely…Knowledge is Power. SOT: DEE: How you should use CNBC, CNN, or all those money shows is learn from them. If you watch CNBC on a regular basis you do realize that they are educating, they are working on educating, explaining what's going on. TRK5: Mark Malnati didn't start paying attention to finances until his mid 30's. That's when his company did away with its pension plan and introduced a 401k. Sot: Mark: 2:33:31 that was the first time in my life I took a hard look at stocks, bonds and mutual funds and what they meant for me. STANDUP: For Mark and countless others traditional pension plans that provided guaranteed retirement income - are becoming a thing of the past. Today, most of us are covered by 401 or 403 stock market portfolios -- which shift the responsibility of investing for retirement as well as the risk - to employees. Increasingly that means you need to manage your own money. TRK6: Understanding the market can help you hold on to "more" of your money. SOT: DEE: if you don't understand it.don't invest in it. TRK6: The lure of fast money has lead many to break that rule. The bull markets of the 90's saw an explosive growth in on-line investing. SOT: MARK: I was buying a lot of stocks on line it was so easy. TRK7: Mark remembers catching the fever. 2:38:16 I would buy and sell stocks in same day, same hour.that is pure gambling not investing. 2:38:28 Mark: Ultimately , I made money I also saw I could have lost an enormous amt of money so I don't do that anymore 2:38:08 I got out ahead…but it could have gone worse. I know a lot of people who lost a lot of money doing that 2:53:14 Faye: I wish you warned me you were going to buy all these things and I could have shorted them 2:53:19 TRK8: So, how do you make money without all the risk? A growing number of Americans are turning to investment clubs. SOT: Faye Doria: 2:51:59 I think its good idea. TRK9: Certified financial planner Faye Doria says clubs allow you to talk with others about investments. SOT: Faye: and in this culture we don't talk about money anywhere.here's a way to find out how others think, what they do for analysis and research and take some ideas and apply it to your own investments 2:52:20 TRK10: That's what persuaded Mark to join a local investment club. TRK11: The group meets monthly, comes armed with research and uses an on line broker for trades. SOT: MARK: 2:48:14 it feels like play money.but its real…you make small investment going in we make monthly contributions and develop a pot of money there's no fee except for that. NATS: Investment club: Lady in Red: 3:00:49 wonderful little bank in NJ I said.maybe ought to look up 3:00:54 they do it the old way.take your mortgage.need 20% don't sell mortage. Mark: HOLD IT RIGHT THERE apparently only bank in America making money 3:01:07 beth: what has investment club done for you? 2:47:18 SOT: MARK: 2:47:18 It's shown me some good structured approaches to finding reputable stocks…larger cap stocks I had been looking at earlier. 2:47:30 Trk12: The group uses a one sheet called VALUELINE. Mark: 2:48:40 think of it as an executive summary you can in 15 minutes pick up how stock has done in last 10 years, what they have for debt whether they pay a dividend, future prospects, value line rates on safety and timeliness. 2:49:12 Trk 13: Mark says there's a lot of info out there if you want to go it on your own. SOT: Mark: there's tons. 2:44:10 especially with whats available on the internet. you'll get more info than you'll ever be able to use. 2:44: 22 SOT: 2:49:30 beth: has club affected way you manage your money at home SOT: Mark: It has.yes, I take tips everywhere I look, avenues of research not aware of Now when I manage my money its just another tool I use to make decisions with:47 NATS: 3:04:46 Your access is doing wonderful everybody is recommending that 3:04:49 now.too late:51 We got in at the right time.yeah 3:04:54 SOT: 2:47:48 Beth: Access? One of your stock picks? Sot: Mark 2:47:53 Yes, we've done very well with that. We made our first purchase probably a little over a year ago.bought for under 17 dollars a share. I think its trading at 60 today. 2:48:07 We bought more at 24 and 38…so we've done pretty good with that 2:48:13 TRK14: The club's track record has been good. How does Mark's personal investing stack up? SOT: MARK: 2:48:46 my portfolio is very conservative.mostly mutual funds little stocks… for investments for my retirement 2:48:56 TRK15: A mutual fund? A COLLECTION OF STOCKS AND BONDS. Your money is part of a pool INVESTED BY A PROFESSIONAL MONEY MANAGER. Is that a good strategy? SOT: DEE: 08:20:52 Very good strategy, because you got someone else worrying about the everyday market for you. Mutual funds have grown tremendously because of 401k, 3B, 457 Plans. Why because it is so much easier for an individual to choose a mutual fund then it is choose an individual stock in these plan. TRK16: But, Dee says make sure you're diversified within your mutual funds: SOT: DEE: and, if you are just beginning then you want to start with large company stocks then add the small company, then the international. I say that because if your invested in a large company's mutual funds, even if I choose the SEP 500 index which is 500 of largest companies here in US. You got an international exposure. Coca Cola, McDonalds, GE, Bowing, where is there business global. So you got to get international exposure. But diversification means stocks and bonds and within those you want large company, small company, international. Nats: Mark@ home 2:53:50 This sheet shows you what I've done to keep myself diversified… TRK18: Mark makes his own charts - to monitor his progress. SOT: Mark: 2:44:28 I have an excel spread sheet, I keep myself organized, I measure each of my holdings at end of each quarter I measure whether its gone up or down, how its done compared to other peer mutual funds, how its done against market, and as a whole whether I'm improving and reaching my retirement goals and whether I'm on track 2:44:58 Nats: 2:56:23 sounds like this is great way.visually see if you're on target.I need visual.I need to look at it…look at data but not drown in numbers.:45 see graphically where my exposures are where my assets are 2:56:44 TRK19: Online tools are available that can help you create your own graphs. 2:55: 38 I look at this and see 3 red bars for hi risk.don't feel bad about that if I saw lots of red I'd get worried.but that's the right amount for me 2:55:48 TRK20: How do you calculate "your" right mix based on your retirement plans and risk tolerance? The answer is often just a click away. SOT: dee: 08:24:08 I am going to use Fidelity, because it is a large company here in New England, you look at Fidelity and you get your statement, you get online there is a pie chart that will tell you ok you've got 55% in large company stocks, you've got 45% in international, and your international has done well so there are tools available for you, so you have to decide ok this is what I want my portfolio to look like I want it to be balanced. I want 75% in stocks and 25% in cash and bonds and when I sit down and look at it, it's easy enough to do. I don't have to sit down and look at what is exactly in every single mutual fund somebody will do it for me so they do make it easy for you and you can create your own graphs Quicken will do that for you as well. TRK21: The younger you are the more risk you can take. SOT: DEE If you are 60 you probably want 55-60% in stocks and the rest in bonds or cash. Why, because if there is a down turn in the market from or two years you have the other assets to fall back on so that you're not selling your stocks at a loss when you have to pull those dollars out for the income and retirement. TRK22: That's the lesson retirees are learning in the wake of the pre-election financial crisis on Wall street as Retirement savings evaporated. MARK: sot: 2:51:11 don't panic don't go out and buy or sell because of something that came across the news that's how you lose money 2:51:14 Or Dee: best advice don't panic… lose money if you sell on panic. ? TRK23: Whether you're nearing retirement or Not, you need to check your portfolio at least once a year… and keep an eye on trading. SOT: dee: 08:23:07 You always need to know what is going on in the market, and if you bought anything you thought that would be at least a little risky, you should be looking at that all the time, knowing when to pull out. TRK24: 15 years ago Mark thought about retiring at 55 or 60. After doing the numbers…he's rethinking that goal. Sot: MARK: 2:35:03….I'm 53 now.not only am I not ready financially.I don't know what I would do with myself so I don't want to retire now …I want to keep working for at least until 10-12 years 2:35:29 TRK25: When he does retire - Mark wants to live off the interest of his investments without touching the principal. So, what will he need to do that? SOT dee: 08:27:56 You need a couple million dollars. Because it's that 4% number that I mentioned earlier, you need to be able to take 4% out a year. Why do I choose 4% because the reality is that if you got to invest it you maybe be making 6 or 7%. But if you have a down year and you are still pulling 4% out you can actually run out of money if you choose 5,6, or 7%. 4% is the magic number. So if he does not want to ever use his principle he has to have a very large nest egg accumulated. And I have a problem with people using their principle because it would great to leave it to your kids or a charity or a school or whatever it is, but the reality is you r money that you use it. But I would not take 8-10% out a year I will still be conservative and try 7-8%. TRK26: For those nearing retirement DEE offers what she calls CYA advice…cover your assets. SOT: Dee 08:40:04 ….be sure you have disability insurance, be sure you have life insurance, just in case things should happen to you heirs or anybody who is relying on your income who is taken care of, if you lose the disability to work he should be covering his assets. |
| Tag Investing Return to index of stories... |
We can all learn a thing or two from Mark Malnati. He keeps a close eye on his investment mix. And he understands his own risk tolerance can change with the market and with life's unexpected events. |
| Intro Sam Return to index of stories... |
When the world leaders gathered in this historic setting, they were drafting standards to help boost the post-war global economy. A lot has changed since then. Sam Stovall, Chief Investment Strategist at Standard and Poor's Equity Research Services, gave me some perspective on investing in a global marketplace. |
| Sam Stovall Return to index of stories... |
Sam Stovall Interview: 00:38:25 Well we learned a very good lesson I think just recently and that is the global economies are not coupled. In my opinion they are more coupled then they used to be. Think of the World economy as a long freight train and now we have that many more engines pulling that same train. Now the good thing is if you have one of the engines miss firing like Europe whether it is Asia by itself, or Europe by itself, or the US by itself you have other engines to help pull this global economy along. But it also does show that when the world goes into an economic slowdown or even into a recession that there is really no place to hide. That they say is all correlations should go to one meaning that everything falls at the same time and it's just the rate of pace in which they decline that happens to differ slightly but in a bear market globally there is no place to hide the best thing to do is not become your own worst enemy by selling out at the worst possible time. 00:39:24 And that is what many investors do right? 00:39:28 They do certainly in the near term there are two emotions that drive investment decisions; fear and greed. I think fear is a greater motivator than greed because you have a greater number of days in which the SNP has decline 2% or more. Just take a look at October of 2008 in which we declined 17%. That was the third worst October since 1929 and if it were a full year in it of its self it would have been the third worst since 1929 as well. 00:40:21 You know you mentioned turbulent times and we certainly have been through terrible times for stock market investors whether big or small and some people really thought - younger people never seen a real bear market and they didn't know how to react to that. What do you tell them? 00:40:40 Well first off I guess you remind yourself history can be an exceptional guide it's never gospel but it is a great guide because it gives you ideas on what you can expect, if you haven't experience it already this is something likely to repeat itself. A lot of investors think that the 46% decline that we saw from the October of 2007 high to the October of 2008 low that 46% they think is the worst bear market since the great crash. Well actually it's only the third worst bear market since WWII and the fifth worst since the 1929 crash, but because we haven't had- we went for four years without one decline of 2% or more and we normally have four per year. So because we had an unusually calm period of time investors automatically thought that this was unprecedented when actually it ends up repeating itself time and time again. 00:41:35 How does an individual investor relate that the market is cyclical? 00:41:46 I guess for preparing themselves in that in general we find as every bull market advances every four steps a bear market takes back every three of those steps. And so what it ends up showing you is that markets don't always go up forever and they don't always go down forever, be prepared for disappointments usually there is a cycle of how sectors perform that early in an economic expansion and stock market improvement we tend to see things like retail, autos, home building starts to improve, we see some of the banks start to pick up and technology tends to do well. Late in the cycle energy is one of the better performers, but when everybody gets scared there is this old saying that the tough get going, the tough go eating, smoking and drinking and as a result consumer staples and health care tend to be the better performers as investors sort of hunker down and hide. 00:42:43 Now we are in the midst of a terrible economic cycle, if it's not a recession, then it is about as close to it as we can see. How should investors relate to that? 00:42:54 Well we certainly believe that we are in a recession, we think we have been in recession since the end of 2007, we say the third quarter posted decline in gross domestic product, we think that we were going to see three more quarters of GDP fall offs, that being the fourth quarter this year and the first two quarters of 2009. What investors have to realize is that the market doesn't decline during the entire recession. Typically the market anticipates, stocks typically anticipate economic slowdowns by 6 to 9 months. At the same time they tend to bottom out about half way through a recession. So just when you think things are really getting bad and you say they can't get any worse, well then that is usually the time to start buying. Because if it can't get any worse whose going to be left to sell. So investors I think are like hyper activate first graders playing musical chairs, always trying to oust anticipate everybody else and so as a result investors are going to want to get into stocks when they think the worst of the recession is at hand. 00:43:57 Well you know the other side of that coin is that people often miss the turn up, and a lot of the gain in an invest cycle comes at the beginning of the upturn, when things seem to be getting bad as they been getting, that maybe the time to get either in - back in or stay in. 00:44:20 That a good point and that's why, certainly I have not found the magic bullet in term of market timing and so I use history of virtual valium to try and calm myself down and to say don't get out of stocks because sometimes when we do have a rally it can be very fast and very furious. I did a study over the past 50 years when we do end up with a bear market bottom in only forty days we tend to retrace about a third of what we in the prior bear market. 00:45:32 I like that comment virtual valium. 00:45:36 I found this very helpful to me because I can be my own worst enemy, if I allow my emotions to rule, but if I keep talking to myself about the importance of good asset allocations, making sure not all of my eggs are in one basket, engage on rebalancing on an annual biases to make sure I force myself to take profits with those that have gone up and to reinvest with those that have gone down then over the long term hopefully I will have a good performance. 00:46:04 You know you have talked about those that have gone down, in this cycle we have seen major companies go down to practically zero. How do you defend against that? 00:46:16 Well when I talk about asset allocation I am talking about equities, as well with fixed income or cash. So in the later part of 2007, even though we have seen the bull market peak out in early of October of 2007 we have come off of a 13.5% gain from '06 a 3.5% gain in '07, bonds, nobody liked bonds. Who wanted to be in bonds there not exciting, they are pretty dull, but interesting enough if you have taken some of your profits from you stock market portfolio therefore rebalance down to your appropriate allocation is and put some of that profit into the bonds that have not done well then in a sense you would have cushioned the blow that you experienced in 2008. 00:47:03 Take some of the winnings off the table and hope you're wrong. 00:47:06 Exactly, but certainly pay yourself every year by taking profits in the equities or whichever asset that has done well and then reinvest in those assets that have not done well. So force yourself to buy low and sell high. 00:48:32 Your long term bull correct? 00:48:35 Well I guess long term bull because the market has advanced 7 times out of ten. Since 1945 we have seen an average increase of about 10% on a price bases. Interesting enough in the past 70 years we have seen 40% of the total return of the SMP 500, simply come from reinvested dividends. So if you keep swapping in and out of stocks, you are not going to benefit from reinvested dividends and so I go with the odds. 00:49:04 Sam Stovall thank you very much for being with us. 00:49:07 Happy to be here. |
| Intro Jaffe Return to index of stories... |
A lot of us can take Sam's sage advice and get to work on our investments. I talked to Chuck Jaffe, senior columnist for marketwatch.com about how to avoid the pitfalls of investing in turbulent times. |
| Jaffe Mistakes Return to index of stories... |
15:18:39 14:35:44 I think everybody needs to come up with a plan that works for them. For some people its what I call the don't mess it up money plan. You don't mess it up money is if you gotten to where you can be set for life, take the money that you need to be set for life and don't mess it up. If that means treasuries or protect inflation treasuries, ultra safe investments if you can keep them all in money market funds do it. It's not about how much can I get between now and the end of my life make sure that you have that money that's set for life and go off and you can sleep well at night. No matter what happens to the rest of it once the don't mess it up money is here you can go buy scratch tickets if that's what you wanted to do but then you can also take other risks to decide what the rest of my goals are and you know you will always be able to sleep well at night and market times like we have right now, the folks that are able to sleep good at night are the ones who feel there future is reasonably protected. 15:26:15 14:43:22 What are the worst mistakes that people make. 15:22:41 14:39:49 I think the worst mistakes that people had made had been that they didn't anticipate the danger and they didn't understand how bad things could get so they didn't protect themselves. 15:26:17 14:43:24 Well I think for a lot of people what happens is that they get to a spot where they put blinders on. Where they assume things to be better and so they don't want to look and they wind up looking and totally freaking out because its now the worst case scenario they've ever seen and they sell at just the worst possible moment as opposed to entering things saying here's my down side, here's what I am willing to stomach, I don't expect- I don't think anybody buys an investment expecting the worst case scenario will happen to them. You would never buy it if you truly expected it to happen, but lay it out, here is what the worst case scenario is and then when you see it occurring your ready to go well I thought this was as bad as it could be this has reached the negative side of my expectations I'm out of here as opposed to, I'll ride this out and I'll hope and maybe it will get better and what have you. And I think the other the mistake that people make just horribly is they got to get back to break even as if break even is somehow guaranteed, break even is never guaranteed. 15:27:21 14:44:27 The market doesn't care when you got in and when you're going to break even. 14:44:31 15:27:24 And the market has no clue when you're going to retire, when your kids college tuition is due none of that if you happened to need your money tomorrow that puts you in a totally different circumstance then somebody who needs it in 10 years and the market doesn't care. |
| Recap/Goodbye Return to index of stories... |
After many years of covering financial news, I've found that some maxiims still ring true. Think through your investment strategies. Don't get caught up in the emotion of market fluctuations. Don't panic. Diversify. Spread the risk and the rewards. And finally, take a long view. Investing should not be a sprint, but a marathon to your ultimate investment goals. We hope we've given you some food for thought to get you through these turbulent times. I'm Myron Kandel. Thanks for watching. |
| Funding Credit Return to index of stories... |
More Than Money: An Investor Survival Guide has been made possible by a grant from the Investor Protection Trust and in association with the New Hampshire Bureau of Securities Regulation and the Center for Public Responsibility and Corporate Citizenship |
| Show credits Return to index of stories... |
Credits: Host Myron Kandel Reporter/Producer Beth Carroll Production Assistant: Lauren Foxall Field Producer: Phil Vaughn Videographers: Steve Giordani Jonathon Millman Production Services: Standard and Poor's Editor: Rebecca Reilly Graphics and Animation: Kimberly Schuman Schuyler Scribner Web Coordinator: Montana West Promotion: Grace Lessner Carla Gordon-Russell Tamara Hindle Executive Producer: Dawn DeAngelis CEO and General Manager: Peter Frid |
| Alternate Close Return to index of stories... |
After many years of covering financial news, I've found that some maxiims still ring true. Think through your investment strategies. Don't get caught up in the emotion of market fluctuations. Don't panic. Diversify. Spread the risk and the rewards. And finally, take a long view. Investing should not be a sprint, but a marathon to your ultimate investment goals. We hope we've given you some food for thought to get you through these turbulent times. For more information on this program and links to interviews and resources visit our website at nhptv-dot-org-slash-money. I'm Myron Kandel. Thanks for watching. |
| Intro Dennis Return to index of stories... |
Unexpected is one word to describe what investors are thinking in the wake of our current financial crisis. What we do know is that millions of people nearing or already in retirement are struggling to hold on to their hard earned wealth. Dennis Tsakiris, president of Wealthwise Financial Management is facing the same issue along with his clients. The financial advisor hosts a local television show. where he explains the importance of keeping cool in a crisis and keeping all your ducks in a row. |
| Dennis Tsakiris 2 Return to index of stories... |
10:14:42 15:12:24 Well that maybe not right -wrong or right, but it is a strategy that you need to develop with your client. That's the buy and hold I am sort of a buy and hold guy. However that mostly applies to my younger clients ok perhaps 30 or 40 something and my son he is going to be in the market for a long long time he was one of the phone calls that I got this week, gee dad what's going on. Well what's going on is we are seeing corrections, are there opportunities out there absolutely so he ultimately ended up putting more money into the market, but to get back to your question, you know if you have that conversation and you need to do some adjustments do you always hold? Maybe not. Particularly with the seniors. You want to be able to say hey I got to do some repositioning, buts that when you have a one on one and let me tell you what the results are, let me tell you the good part and let me tell you the bad part. What is it going to us to make this move and I think a lot of people Myron make adjustments, make moves and don't really know all the facts what are the challenges, what are the fees, is there going to be any tax implications. Its great to say I am going to go with cash and now I am feeling comfortable. We all want to feel comfortable, but the problem becomes what is it going to cost me to do that and you really need to know that to make a logical decision. 10:16:08 15:14:09 You know people are somewhat reluctant to ask a professional person whether it's a financial planner, stock broker or a doctor about their fees how much is it going to cost them, people are reluctant to do that, how do you feel about that? 10:16:22 15:14:24 I always say I am happy to tell you how I get paid. We all get paid for the work we do and your advisors should be able to do the same. Whether you charge by the hour which I am able to do or charge by the commission or whoever is out there that, how we get paid should be laid right out on the table and unfortunately in my industry that does not happen and that's not right. 10:16:53 15:14:53 You know the overwhelming majority of investment advisors are honest and keep the welfare of the client upper most in their minds, but there are you know a small minority of people who are not quite ethical or honest and they give the good guys a bad rap, but how do you deal as a professional how do you deal with that? 10:17:17 15:15:18 That's a great question because absolutely that does happen and its as you said a small minority, I believe that. The issue is this, everyone of us should have full disclosure. We should be able to lay all the cards on the table be happy with what we are seeing with what I am charging, how I am going to get paid, what product am I putting you in, what type of investment are you in and we should all be able to lay that out on the table and have anybody take a look at it and be happy with that and if you can't do that or your advisor can't do that then there maybe something wrong and I know that unfortunately what seems to happen examples that I have comes across and is there typically senior abuse where they target our seniors for whatever reason and that is absolutely wrong. 10:18:15 15:16:16 And affinity abuse is another factor right, where somebody belongs to your church or your organization or your charity or whatever and you think because you have that relationship with you they got to be the right guy. 10:18:32 15:16:33 Exactly and you know I think it's going back to the professional it's not bad to ask questions; Dennis how do you get paid, Dennis why are you suggesting this product or service or this company, because there are a lot of good companies out there and I'll say you should feel free to ask them what is the financial ratings, what are my risks, what are my potentials gains; those types of things. 10:19:00 15:17:01 Would you rather have a client who depends on you entirely or a client who does his or her own research, investigation and them comes sees you and throws out their knowledge at you sometimes good sometimes bad. How do you deal with those types of clients? 10:19:19 15:17:20 Um. I have both, I have both. I have some very wealthy clients that say Dennis just get it done that's your job you know I will look at the bottom line, I trust you, we've known each other for years but I have other clients that become very involved and I view it as a collaboration. If you and I were discussing investments and you had investments and you had done some research we would but our heads together and say ok Myron what's the best move, what do you think. Here are some of the options and part of my job is to just bring options to the table for you and say, hey listen this is what we are looking at how do you feel about that? Oh gee Dennis I feel pretty good about this or gee maybe not and that collaboration and that team effort is really what makes things happen. And when I say team your CPA if you need one, your attorney, your financial planner, whatever you set that team up. 10:20:15 15:18:16 Dennis let me ask you, if you were to set forth a group of presets for intelligent investment tell me what they would be. 10:20:26 15:18:27 I guess I have to say do your research, set your goals; I mean really sit down lay everything down and what I do with my clients is do like a fact finder you need to know where everything is in your portfolio. Where are your investments now, are they stocks, are they bonds, are they real a state, are they fixed activities. You need to know that first, you need to do your what we call do diligence, do your research get out there and make informed intelligent decisions, don't be hasty and don't be emotional because that's where I see a lot of errors happen. 10:21:03 15:19:04 What about the question of asset allocation. I mean that is something that most professionals say is something that a client should keep in mind and you as a financial planner have to look at that as well. 10:21:18 15:19:18 Absolutely and the best thing, what I try and do is develop I developed this for myself by the way so that is why I preach this to my clients is to be able to go into a software program or whatever it happens to be using and come up with those niftily little pie charts that we all see and those are kind of cool and those are cute but what they do really tell you if you use them properly is exactly where your money is. Should you be there should you be in international stock, if you're a retiree and you have 15% over in emerging markets is that prudent, probably not so you really need to know that information or someone on the team has to be advising you to make sure that you are making those proper decisions so asset allocations absolutely especially in these volatile times as we all know we see it every day sometimes we hear the blue chips are up today emerging markets are down these are just styles of stocks, styles of investments some of them go up and down at different times and that allows us to perhaps cushion the fall if it does come down and that makes money in other areas as well. 10:22:29 15:20:30 You know longevity is a factor these days and you indicated that you are a long term investor and it seems to me that the short term version has widen. You know it used to be 60 days 90 days a couple of years now people are saying your short term verizon should be 5 years. 10:22:51 15:20:53 Because of all the market volatility I think we have to be very aware of where the money is and if you need money that is a conversation that I certainly have with all my clients all the time and you ask them what are the expenses what do you think is coming up that you're going to need money for and if you tie that up into areas that you perhaps can't get at that's not smart that's not the way you want to do it. We can always get our money back but is it prudent is it financial sound to get our money back and that's the issue and that's what we are seeing now Myron with the market volatility if an individual was 100% in the stock market and suddenly that stock market is down now I need some money. Wow now I am selling shares really cheap and of course we all want to sell high and buy low. 10:23:41 15:21:42 So you need a degree of equidity and it really depends on your own particular individual circumstance. 10:23:49 15:21:50 Absolutely well put, and that degree of equidity is very different for each individual and that's why you need to develop a relationship, either you do it yourself and you know that or you have advisors that are going to say hey listen Myron this what your expenses are and I always do what we call cash flow and this is what your going to be needing we need to make sure that you have that somewhere we're we can get at it and that is important. 10:24:17 15:22:19 Well thank you for your advise Dennis thank you very much for joining us. 10:24:20 15:22:20 Its been a pleasure thank you. |
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NEW HAMPSHIRE OUTLOOK: SPECIAL Air Date/Time: 11/23/2008 HOST: Myron Kandel Length: 12:02 Investing in Turbulent Times. An Investor Survival Guide. Now on New Hampshire Public Television. Hello Everyone. I'm Myron Kandel. Welcome to More Than Money: An Investor Survival Guide.I'm here at the historic Mount Washington resort in Bretton Woods, New Hampshire. It was here in 1944, in the midst of World War II, that delegates from 44 nations gathered to establish the World Bank, the International Monetary Fund, set the gold standard and tied the value of global currencies to the U.S. dollar. At the time of the Bretton Woods Conference, the world was not as connected as it is now. Few Americans could control their own financial destinies. Stocks were mostly for the rich and global investing was not yet in vogue. Now as world leaders once again grapple with financial crises, most Americans DO have a stake in the market. So, as stock prices swing wildly, what's an individual investor to do? In the next half-hour we hope to give you some ideas. We begin with a story of personal investing. Beth Carroll introduces us to someone who understands that now, more than ever, knowledge of the stock market is critical. PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS: Dee Lee\Certified Financial Planner, Mark Malnati \Personal Investor, Faye Doria \Certified Financial Planner. |
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NEW HAMPSHIRE OUTLOOK:SPECIAL Air Date/Time: 11/23/2008 HOST: Myron Kandel Length: 10:19 Investing in Turbulent Times. An Investor Survival Guide. Now on New Hampshire Public Television. Hello Everyone. I'm Myron Kandel. Welcome to More Than Money: An Investor Survival Guide. When the world leaders gathered in this historic setting, they were drafting standards to help boost the post-war global economy. A lot has changed since then. Sam Stovall, Chief Investment Strategist at Standard and Poor's Equity Research Services, gave me some perspective on investing in a global marketplace. PRODUCER/REPORTER: Mryon Kandel NAME OF PARTICIPANTS: Sam Stovall\Chief Investment Strategist, Sam Stovall\Standard and Poor's Equity Services. |
| key: Business / Industry Return to index of stories... |
NEW HAMPSHIRE OUTLOOK: SPECIAL Air Date/Time: 11/23/2008 HOST: Myron Kandel Length: 10:19 Investing in Turbulent Times. An Investor Survival Guide. Now on New Hampshire Public Television. Hello Everyone. I'm Myron Kandel. Welcome to More Than Money: An Investor Survival Guide. When the world leaders gathered in this historic setting, they were drafting standards to help boost the post-war global economy. A lot has changed since then. Sam Stovall, Chief Investment Strategist at Standard and Poor's Equity Research Services, gave me some perspective on investing in a global marketplace. PRODUCER/REPORTER: Mryon Kandel NAME OF PARTICIPANTS: Sam Stovall\Chief Investment Strategist, Sam Stovall\Standard and Poor's Equity Services. |
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NEW HAMPSHIRE OUTLOOK: SPECIAL Air Date/Time: 11/23/2008 HOST: Myron Kandel Length: 5:44 Investing in Turbulent Times. An Investor Survival Guide. Now on New Hampshire Public Television. Hello Everyone. I'm Myron Kandel. Welcome to More Than Money: An Investor Survival Guide. A lot of us can take Sam's sage advice and get to work on our investments. I talked to Chuck Jaffe, senior columnist for marketwatch.com about how to avoid the pitfalls of investing in turbulent times. PRODUCER/REPORTER: Mryon Kandel NAME OF PARTICIPANTS: Chuck Jaffe\Personal Finance Columnist. |
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NEW HAMPSHIRE OUTLOOK:SPECIAL Air Date/Time: 11/23/2008 HOST: Myron Kandel Length: 5:44 Investing in Turbulent Times. An Investor Survival Guide. Now on New Hampshire Public Television. Hello Everyone. I'm Myron Kandel. Welcome to More Than Money: An Investor Survival Guide. A lot of us can take Sam's sage advice and get to work on our investments. I talked to Chuck Jaffe, senior columnist for marketwatch.com about how to avoid the pitfalls of investing in turbulent times. PRODUCER/REPORTER: Mryon Kandel NAME OF PARTICIPANTS: Chuck Jaffe\Personal Finance Columnist. |
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Have release forms -- Personal Investing-Faye Doria , Mark Malnati, Sandra Keans, Robert Cluide Jaffe Mistakes - Chuck Jaffe |