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My Email Money managers hold stocks and bonds for institutional clients and are on the buy side of Wall Street. Some money managers use the latest sophisticated.

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Presentation on theme: "My Email Money managers hold stocks and bonds for institutional clients and are on the buy side of Wall Street. Some money managers use the latest sophisticated."— Presentation transcript:


2 My Email

3 Money managers hold stocks and bonds for institutional clients and are on the buy side of Wall Street. Some money managers use the latest sophisticated quantitative techniques while others do very well using simple intuition. Many money managers buy and hold fixed income securities including mortgaged-backs, corporate bonds, agency securities and asset-backed securities. Others focus on equities, including small stocks, large caps and emerging market stocks. Good places to start are in bank trust departments, state and local pension funds and in insurance companies. Many people cross over into money management after getting years of experience on the sell side of the business in investment banks. The job requires a combination of intelligence, effort, intuition and discipline to succeed in the long run. Most people lack the proper combination of these traits. Click to View Link on Job Overview

4 Engaging in a late savings plan can prove very detrimental, no matter what salary, bonus plans or incentives are offered. For example, if I were to fail to start saving until 15 or 30 years into my career, rather than begin a savings and investment plan at the onset of my employment, I would need to invest a significantly larger portion of my yearly salary to “catch-up” to the savings dollars I would require to retire successfully and comfortably at the same age. This would cause a financial hardship and require significant negative adjustments to my lifestyle that could have been avoided with early planning. If I started saving 15 years into my employment, then I would have to save $50,530 a year,compared to the original savings of $17,920 a year to reach the same retirement goals. Click Here for More Information

5 If I started saving 30 years into my employment, then I would have to save $210,300 a year, compared to the original savings of $17,920 a year to reach the same retirement goals. This outcome would be nearly impossible to reach even taking salary increases into consideration. Overall, an early savings and annuities plan is critical to my future lifestyle goals and retirement forecast. If my annuity from saving does not match my future value of salary, then I will not have enough money for my planned retirement years. The following chart on the next slide will further explain the problems of saving late. Click Here for More Information

6 To calculate and formulate my financial approach to see if I am saving enough to make it through life and retirement, I use the following equations. First: I would find my annuity by performing the equation of FV=pymnt*[((1+i)^n-1)/i] in Microsoft excel. (i stands for interest rate in this equation and n stands for the number of years you will work. Also FV means future value.) Second: I would calculate my annuity by doing the equation Annuity=FV*[i/(1-(1+i)^-k)] in Microsoft excel as well. (i= interest rate, k= the number of years expected to live after retirement, FV= Future Value.) After Calculating these two formulas using my own planned financial outlook, I come out with a future value of $201,380 and an annuity of 201,480. If I start saving early and save for every year I work, I will have an annuity that equals some what the same as my future value. You can also use the built in functions of excel to calculate these totals and do many other calculations as well. My Excel Example

7 Can I afford to live to 100? Where should my savings be now? Do I have a plan to guard against inflation? My answers to all these questions are yes, because I have a Savings & Annuities Chart, with savings strategies for when and how much to put away to start planning for a successful retirement. Click on Chart For Informational Link

8 First: Decide how many career years you plan on having and how many years after retirement you plan on living. You should save for the same amount of years as you plan on working. Second: By using the inflation rate, your starting salary and the amount of career years you plan on having, calculate your future value. Third: Using your years saving, your savings rate and your annual savings, calculate your future value of savings. Once you’ve found this, you must calculate your annuity by using the payment function with your future value of savings, the amount of years after retirement you plan on living, and your savings rate to calculate your annuity. If your annuity does not come out the same as your future value of salary, then your annual savings is either too high or too low. Click Here For More Information About Saving Efficiently & Effectively

9 Fourth: Make a list of all your expenses for a month and how much their total cost will be. Doing this allows you to find your net income from your monthly income minus your monthly expenses. This allows you to know how much you can save each month with your net income. By Following these steps, which can all be done via Microsoft Excel, you can create a savings plan that will allow you to see how much you need to save annual and how much you need to have saved after retirement to live for your planned retirement years. I followed these exact steps to create my personal retirement savings plan. Click Here For More Information About Saving Efficiently & Effectively

10 First, try to live BELOW your means. Don’t try to compete with “the Jones”, but instead be smart. Don’t spend impulsively or recklessly, and most important of all… don’t spend more than you earn! Don’t get into credit card debt. All a credit card allows you to do is spend money before you’ve earned it. Interest rates on Credit Cards are typically higher than savings rates. It’s a vicious and seductive cycle… don’t fall victim to it. Keep your credit spotless. What more is there to say about this one! Rationalize your spending and consider the opportunity cost. Always think twice about what you are about to spend and if the investment is truly worth the cost. Do you need this item? Will it hold its value? Will your life be more negatively or positively impacted by this purchase? Would the money spent on this item be more usefully put toward an alternative investment or purchase? Understand the time value of money. “A dollar saved today is worth more than a dollar at some time in the future.” By saving and investing today, you make the time value of money work for you. Give it some thought… it makes perfect sense. Link For Additional Information

11 Take advantage of the compounding effect of money and weigh your financial risks. We all know that risks must be taken to make money, but that doesn’t mean that you should enter into them without forethought or consideration. Do your financial homework… otherwise you’ll fail your finals! Save your money. Invest wisely and aggressively. “A penny saved is a penny earned,” still holds true today. Start small and grow big. Devise your financial plan from the first day you begin your employment. Make a savings and annuities chart and stick to it. Remember a dollar saved today is infinitely more important than a dollar saved tomorrow. Diversify your investments and wealth. Spread your investments and wealth across several different asset classes. When your mother long ago told you, “Don’t put all you eggs in one basket,” you were hearing your first sound financial advise for the future. It’s a simple plan to follow. The hardest part is maintaining your discipline. Just remember that although spending is fun in the moment… saving and investing is smart for a lifetime. With my current income and investment plan, by adhering to these simple rules I will realize a net income of $1,754.00. Link For Additional Information

12 Review my current finances and expenditure. Research what financial commitment is needed for my new career plan. Estimate what financial backstop will be needed to tide me over the change. Start to build up the financial resources I’ll need using a range of different tactics. Click Either Image for Informational Link

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