Spotted this on Yahoo, from the Wall Street Journal, and thought it might be helpful in these troubled and troubling times.
Category: Money
Banking Crisis
Here is an interesting article on the banking crisis
http://news.yahoo.com/s/ap/20080918/ap_on_bi_ge/banking_turmoil
Performance related pay for all CEOs
In light of the numerous financial debacles in the past year, and the total Wall Street meltdown this week, I would argue that CEOs should no longer get huge salaries and ‘golden parachutes’ in case they screw up.
Instead, they should get a regular salary like everyone else, and performance related, commission based extras. If the company does well, they do well. If not, well, they know where the door is.
It is a disgrace that the Freddie Mac and Fannie Mae executives’ golden parachute is supposed to total $24 million dollars, and it would be a scandal to give it to them, when the taxpayer is the one footing the bill at the end of the day.
Similarly, sports stars should get performance related pay, a base salary, and a share of the profits. Again, it is the ordinary person paying through the nose for season tickets and the food at the concession stands. Why? Because the wage bills are so huge.
We understand that injury can mar a season, and would protect them with a base salary in line with what most other Americans have to make do with. But millions a year for just sitting on the bench is unacceptable.
Finally, we need to reward better the jobs that really do count, teaching, nursing, emergency services. They benefit thousands of people every year, yet are paid less than CEOs.
The greed in this country has led us to this financial carnage, and it has to not only stop, it has to be seen to be stopped in a significant way.
Lessons in Asset management
Asset management is a concept that people are oftentimes wary of. Although they do want their hard earned money to beget huge yields and interests, people are not always comfortable with the idea of other people managing their money. Add to these doubts the number of stories circulating of investors losing their money because of companies that have folded during the dot.com boom.
But asset management need not be something that you have to be afraid of. In fact, it can be pretty rewarding financially as you are able to spread your money across different investment products. This is better than putting your money in banks where the yield is not even enough to combat the inflation rates of the currency and the rising costs of living. When done the right way, your money can serve you until your retirement. The trick is to find the right asset investment manager and to get involved in the investing.
Below are some lessons on how to start and survive asset management. Read on before you get into the program.
1. Choose your manager wisely
When hiring an asset management person make sure that you know him or her. If you donít know anybody who can do it for you, ask for people to recommend managers that are good. Start asking your families and friends as they will give you more personalized choices. When asking for recommendations and referrals, do a little background check first. Ask how many years the person is working for the one who made the recommendation. Ask for his accomplishment and his track record over the years. A good performance for one person may not be good for another.
Do not just be contented with one referral. Get a lot and then compare each one to the other. That way, you can select the person that you feel is the best among the best. When evaluating their expertise, look both on the paper and in person. Remember that these people are very good with charming their clients. So itís good to base your decisions also on something that is really concrete.
2. Have a say
A common mistake of most people who hire asset management people is once they get someone, they wash their hands of the entire thing. Donít. Show the guy or gal that you want to take an active part in managing your assets. This will prevent any hanky-panky because they know that you are monitoring your money.
Do not give the full control to the manager when it comes to making investment decisions. The final say should always be yours. So before investing in something, the person you hire should first present you with the background of the investment and if possible show other possible investments that are similar to it so that you will have the chance to compare.
Set a general guideline for all investing. An expample of this would be, “I can’t afford to get into anything that has share prices that can vary. Steady income with no risk to my principle is a must.” There is a big difference, for instance, between investing in Bonds and getting into a Bond Fund. The Bond will have a predictable return with no risk to your principle. A Bond Fund will have shares with share prices that can go up or down. In an actual case with such a Bond Fund the interest was $1000 per month and there was a quarterly capital gain of $1000, but the share prices were dropping and the actual value of the fund was static. No actual gain was being made.
3. Learn the biz
It is not enough that you know what the goings on of the asset management are. You also need to understand it. Some people may not give full control to their managers but will sign anything that these managers give them without really understanding what the papers are saying.
Remember that although you have worked with the same person for years or a friend of yours knows him personally, he or she can still rob you of your money. A common occurrance is, the manager needs money for some reason. An unexpected expense, a new house or car, etc. So they call clients and try to get them to move investments from one family of funds to another, getting commissions for each move. Asset management is a risky and cruel business. Make sure that you are prepared to stand guard over your investments.
Great article on 401ks
How little things can become budget busters
You may think you are keeping a tight rein on your spending in these tough economic times.
But you might be surprised to learn that the little things are often the ones that all add up to blow your budget. Budget Busters.
Learn more about Internet Marketing
The Insider Secrets Corp. website has loads of free information if you want to learn more about Internet Marketing:
If you dream of being able to earn money online, get started today.