| What Are These Kids Thinking?
Here we are in April, which I'm sure you know is National Financial Literacy Month. It's National Grilled Cheese Sandwich Month and National Frog Month, too. I kid you not. And it's also when we get Charles Schwab's (Nasdaq: SCHW) annual survey about kids and their relationship with money. Here are just a few highlights from the Charles Schwab Teens & Money 2007 survey. First, the good news: Fully 93% believe that it's important to know how to live within your means and to have good money habits to be successful in life. Some 84% have some money saved, and the average savings adds up to $1,044, up from $822 in 2006. And 63% of teens say they are knowledgeable about money management, including budgeting, saving, and investing. Now the not-so-good news: Many teens are not very realistic when it comes to what they expect to earn per year in adulthood.
Students present investment plans to BU
More than 70 students proposed strategies to invest $3,000 into various industries in hopes of raising up to $500,000 that will eventually be reinvested in Boston University last night in the School of Management.
Members of the Finance & Investment Club, run through SMG, presented eight proposals detailing how to invest money in the industries of energy, healthcare, consumer, technology, materials, telecommunications, industrials and financial.
Each five- to 10-member group gave a six-minute PowerPoint presentation to BU officials who will choose the best corporate proposal. The groups plan to use money from the club's investment fund, Dyrect Investing, which was donated by BU community members and SMG alumni to invest in the company with the best student presentation.
Why do mutual funds pay dividends?
MUMBAI: Mutual fund schemes declare dividends for two reasons. First, paying dividends increases investor interest and helps boost the assets under management (AUM) of a scheme. This means bigger incomes for the mutual funds, considering they make their money as a certain percentage of the AUMs. Till about a year back, mutual funds used this tactic to great effect. Schemes used to declare dividend months in advance from the record date, giving investors ample time to invest. However, a change in regulation last year made it mandatory for mutual funds to have the record date five days from the day the dividend is declared. Second, every time a dividend is declared, the net asset value (NAV) of the scheme falls. This makes the unit cheaper in the eyes of investors and makes them more likely to invest, leading to improvements in the AUM and earnings.
Lawyer faces court fight over $26 mil investments
Blueblood Valley families and a prominent Phoenix attorney will battle in court Monday over a reputed Ponzi scheme that may have siphoned $26 million from more than 100 investors.
Attorney Robert Rosepink, 56, shopped an entertainment company to wealthy clients that promised to put on mega concerts and generate money for investors, according to the lawsuits filed in Maricopa County Superior Court.
But Rosepink, who specializes in estate planning, didn't tell them that he that was paid roughly $1 million to reel in clients, some victims say. Front man William James Galyon promised mega concerts that included the likes of Garth Brooks. Though there were some shows, they didn't include headliners like Brooks. .
Which type of investor are you?
Ask any property investor what drives them and you are likely to get the same answer - to make money and obtain financial freedom. However whilst most investors would admit to being driven by the same goal, the level of risk they are willing to take is anything but uniform.
If you are a would-be investor, it is worth determining that risk before settling on the right investment for your portfolio. After all, your choice of location will vary massively depending on whether you are a cautious, adventurous or speculative investor. Generally speaking, risk begets reward and low returns are associated with low risk. So before making any rash decisions, take the Risk Test from Invest in Property – a good starting point for any magnate in the making.
1. What timescale are you looking at before seeing a return on your investment?
a) 1 - 5 years
b) 5 - 10 years
c) 10+ years
2.
Mike Ivey: Put Bush tax cuts to good use
As the April 15 tax deadline looms, it's appropriate to celebrate Chuck Collins, the Madison-born great-grandson of a bologna maker Oscar Mayer. Collins grew up as one of many heirs to the wiener company fortune, inheriting some $275,000 when he turned age 21. As a college student in Michigan, Collins watched his invested windfall grow to nearly $500,000 -- proving again that the surest way to get rich is to be born rich. But somewhere during the me-first Reagan 1980s, Collins had a change of heart. He decided to give his money away, an "investment in a better world" was how he explained it at the time. So Collins split his inheritance between several different organizations pursuing social justice and progressive causes in New England and the rest of the U.S.
Check your ROI often
In previous columns, Ive discussed how business owners can use financial ratios to assist in making management decisions.
Another important financial ratio in determining success is the return on investment ratio. Business owners should set an ROI goal and review the ratio regularly.
A business owners desire is to make money. It is expected that the owner will be compensated through owners draw (sole proprietorship) or salary (corporation).
Many businesses are accomplishing this, but owners fail to consider earning an additional return on their monetary investment in the business. A prudent business owner will consider the ROI when preparing a business plan and reviewing year-end financial statements.
What is ROI? Lets say an individual has $5,000 to invest in a business.
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