The term instrument might suggest a trumpet or a scalpel rather than a stock or a bond. Similarly product is more likely to make you think of vegetables or running shoes than of currency. But the terms are used frequently and often interchangeably to refer to both specific investments and to investment vehicles, or mediums for investing, such as unit trusts and mutual funds. Asset class is a category or type of investment, such as stocks or bonds. All investments in the same class share characteristics that differentiate them from another asset class. Each class typically has a number of subclasses of investments whose similarities are even more narrowly defined. For example, small-company stocks are a subclass of stocks. There are nine traditional asset classes, each of which behaves differently enough from the others to merit its own category, and a number of nontraditional classes. Cash Equivalents US Equities Non- Dollar Equities Mortgage Backed Securities Short Term Debt Long Term Debt Non- Dollar Debt Real Estate Precious Metals  Other assets are harder to assign to conventional asset classes, often because they behave differently than their names would suggest. That’s the result, in many cases, of actually straddling two classes. Contributions   Read more…

Like most people, you’re probably investing to achieve some specific financial goals. Your list may include some, though probably not all, of the common objectives that many people share: Enjoying a comfortable retirement requires a vision of your golden years and the lifestyle you’ll lead, as you grow older. Paying for your children’s college education is expensive but can provide a career advantage for your progeny, perhaps for generations to come. Buying a home (or a vacation home) is a primary goal with a down payment and good credit. Building a business cost money. Financing your entrepreneurial spirit may require your own money in the game. Traveling around the world is an exciting prospect for entertainment and self-education. It can be a meaningful opportunity for your family as well. Endowing a chair at your alma mater or donating to your favorite charity Providing financial security for your parents with long term care assistance and eldercare oversight. Enriching your heirs is at the heart of leaving a legacy. Often the impact can be felt for generations. The bottom line is that most people can’t afford to pay for everything they want to accomplish with the income they earn. That’s why investment   Read more…

Stochastic modeling, sometimes known as Monte Carlo simulation, is a statistical process that uses probability and random variables to predict a range of probable performances, such as traffic flows or investment portfolio returns. The term stochastic comes from the Greek word meaning skillful in aiming. An investment asset is something of value that you can use to help meet your financial goals. For example, if you buy stock in a corporation, your stock is an asset. If the stock increases in value over time, you can either sell it for more than you paid for it, or you can hold it in your portfolio to increase your net worth. If the stock pays dividends, you can either spend the money or use it to make more investments, whether in the same stock or in something else. Of course, assets don’t always behave the way you expect. Stocks may cut their dividends rather than raise them, especially in tough economic times. And some stocks lose rather than gain value, either in the short term or over the long haul. Besides stocks, there are many asset categories, called asset classes, which produce gains and losses in different ways and react differently to   Read more…

 In the competitive world of recruiting, standard benefits like matching 401(k)s, Health Insurance with HSA Accounts and disability benefits may not be enough to secure the talent necessary to take your business to the next level. Professional head hunters seem to agree that unconventional perks like performance bonuses, deferred compensation packages and supplemental retirement plans are necessary to land a big fish for your firm. Even offering extras to maintain the key employees you have may also be necessary to keep them from leaving for a better opportunity. Business owners and other employers understand the value of unconventional benefits, but cash flow may hinder them from hiring major league players. That’s where leverage comes in. That’s where bank loans can fund mid term cash value life insurance policies that can be repaid through the cash values that are accumulating over a ten year period. The cash value life insurance policy collateralizes the loan, while the business pays the annual loan interest. Over a ten-year period the odds favor the likelihood of positive policy performance to pay back the loan and fund the extra benefits, generally a supplemental retirement plan. Many banking institutions are now aware of cash value life insurance   Read more…