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Personal Finance For Newbies

Managing your personal finances involves managing both short- and long-term aspects of your finances. It also refers to an industry that offers products and services to help individuals manage their finances and investments. But, if you’re new to personal finance, all that may not mean much to you. So, let’s explain why personal finance is […] Managing your personal finances involves managing both short- and long-term aspects of your finances. It also refers to an industry that offers products and services to help individuals manage their finances and investments. But, if you’re new to personal finance, all that may not mean much to you. So, let’s explain why personal finance is important, its five areas, and its fundamental principles. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Series in PDF Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2022 hedge fund letters, conferences and more   Why is Personal Finance Important? Financial planning is important for managing your day-to-day needs as well as ensuring your financial security in the future. Generally, people who spend more than they earn or their entire income don’t feel insecure and anxious when their retirement period approaches, but they will feel insecure when they reach retirement. According to a Mind over Money survey by Capital One and The Decision Lab, more than three in four Americans (77%) worry about their financial future. There are a variety of financial concerns, from saving for retirement to paying for a home or education for your child. In terms of financial concerns, Americans are most concerned about not having enough money for retirement (68%), keeping up with the cost of living (56%), and managing debt levels (45%). According to respondents, financial stress impacts all aspects of Americans’ lives, causing fatigue (43%), difficulty concentrating at work (42%), and trouble sleeping (41%). And, about a quarter of respondents (25%) said their relationships were affected by financial stress. The purpose of personal finance planning is to handle your finances effectively and to meet your financial goals while making sure that your future is secure. In personal finance, all aspects of finances are considered, including: Budgeting Debt Estate Planning Insurance Investments Social Security Retirement Risk Management Taxes Wealth Management To live a healthy, happy, and secure life, it is crucial to have basic financial skills. It can make a difference between prosperity or poverty in your life if you understand the fundamentals of budgeting, saving, debt, and investing. What are the Five Areas of Personal Finance? Despite the fact that personal finances cover a wide range of topics, they can all be categorized into five broad categories: income, spending, savings, investing, and protection. After all, developing your financial plan is all about these five things. 1. Income A person’s income refers to the amount of money they receive and use to support themselves and their families. As such, the process of financial planning begins here. There are a variety of income sources, including: Earned income. For most people, this is their primary source of income, aka their day job. People typically rely on this source of income for the majority of their income. Regardless of whether you’re paid hourly or salary, you’re trading your time for money. Business income. You’re a business owner. There are two ways to earn a living: you can make and sell things or you can provide services. Interest income. You earn this income by lending out your money. The money could come from a CD, P2P lending, real estate crowdfunding, fix-and-flip debt deals, or simply a savings account. Dividend income. In this case, it refers to money you receive if you own company shares. Rental income. You own something that you rent out. Renting apartments for monthly payments is probably the most common way to own a rental property. However, you could rent out a room on Airbnb or your vehicle on Turo. Capital gains. The money you earn when you sell an investment, such as stocks, is called capital gains. Royalties/licensing. Someone uses your product, idea, or process. Every time they do, they pay you a small fee. An individual can use each of these sources of income to spend, save, or invest the cash they generate. As such, income can be considered the first step in our personal finance roadmap. 2. Spending Any expense that is related to buying goods and services or anything consumable (e.g., not an investment) can be considered spending. There are two categories of spending: cash (purchased with cash on hand) and credit (purchased with borrowed funds). Typically, spending accounts for a significant portion of most people’s income. According to the U.S. Bureau of Labor Statistics, here are the percentages of what the average American spends each month. Housing — 33.8% Transportation — 16.4% Food — 12.4% Personal insurance and pensions — 11.8% Healthcare — 8.1% Entertainment — 5.3% Cash contributions — 3.6% Apparel and services — 2.6% Education — 1.8% All of these expenses reduce the amount of cash an individual has available for investment and saving. In case of a deficit, an individual has more expenses than income. The key to managing expenses is controlling your discretionary expenses, which are typically easier to control than your income. Overall, for good personal finance management, you need good spending habits. 3. Saving Saving is reserving excess cash for any future investments or consumption. You can save or invest the difference between your income and your spending if you have a surplus. In addition to short-term goals like an emergency fund, savings accounts can also be used to stash away cash for long-term goals like a down payment. The most common types of savings accounts include: Traditional savings accounts. When you think about where to save, you may immediately think of traditional savings accounts. Typically, you can find these accounts at traditional banks and credit unions. High-yield savings accounts. The majority of these can be found at online banks, neobanks, and credit unions. In comparison to regular savings accounts, they offer a higher annual percentage yield. Your money will grow faster with this type of savings account. Money market accounts. A money market account (MMA) combines the features of a savings account and a checking account. They’re available at brick-and-mortar banks, online banks, and credit unions. CD account. Your money stays in the account for a set amount of time with certificates of deposit (CDs). As your money earns interest, you can either withdraw your savings or roll them into another CD when it matures. Due to a time factor, these accounts aren’t like other types of savings accounts. Cash management account. In contrast to other savings accounts, cash management accounts aren’t designed specifically for saving. This type of account lets you hold cash that you may invest in a retirement account or a taxable brokerage account in the future. Specialty savings accounts. Rather than serving as a catch-all for the money you won’t spend, these are designed to help you meet specific savings goals. Sometimes they aren’t intended for savings, but rather for a specific type of person. 4. Investing Investing involves buying assets whose return is expected to be high, with the hope of receiving more money in the future than was initially invested. There’s risk involved with investing, and not all assets produce positive returns. This is where risk and return meet. Investing can take many forms, including: Stocks Bonds Mutual funds Exchange-Traded Funds (ETFs) Retirement Plans, such as 401(k)s and IRAs Annuities Real Estate Private Companies Commodities, like metals or agriculture Art The most complex area of personal finance is investing. So, it’s no surprise that this is where professional advice is most sought. Investments differ greatly in risk and reward, which is why most people seek professional advice. 5. Protection In terms of personal protection, there are a wide variety of products that can be used in order to shield against unexpected and adverse events. Among the most common protection products are: Life Insurance Health Insurance Estate Planning Often, people seek professional advice in this area of personal finance, as it can become quite complex. In order to properly assess an individual’s insurance needs and estate planning needs, a lot of analysis is required. What are the Fundamental Principles of Personal Finance? The Jump$tart Coalition for Personal Financial Literacy is a Washington DC-based organization that promotes teaching personal finance to young people. A long time ago in a galaxy far, far away, Jump$tart Coalition published a list of 12 personal finance principles that anyone can benefit from. Here are a few quick descriptions of each principle: 1. Know Your Take-Home (Net) Pay Consider how much income will be left over after all mandatory deductions before making significant expenditures, such as credit card debt, car loans, or a mortgage. 2. Pay Yourself First Make sure you keep an affordable amount aside every month for long-range goals and unexpected emergencies, rather than paying bills and other obligations every month. 3. Start Saving Young You can increase your savings by both earning interest on savings and saving over a longer period of time. To put it another way, you should begin saving for your future as soon as you can. The more you save, the more interest you’ll earn. 4. Compare Interest Rates Find out what rates are available at different financial services firms, so you can make the most informed decision. The same is true when you take out loans or lines of credit as well. 5. Don’t Borrow What You Can’t Repay You’ll be more likely to be approved for credit if you’re a responsible borrower. With that said, take a look at your total payment obligations and the income you’ll have to cover them before you borrow. 6. Budget Your Money Prepare an annual budget based on your income and expenses. Think of a budget as your roadmap for building your savings and living within your means — as opposed to thinking that budget is a filthy word. 7. Money Doubles By “The Rule of 72″ Divide the interest rate by 72 to find the length of time it will take for your money to double. A 72-year account earning 6% interest, for example, will double in 12 years. 8. High Returns Equal High Risks When you invest in something that has a high return on investment, you’re likely to take on more risk. But, when you diversify your investments, you reduce your investments’ risk. 9. Don’t Expect Something for Nothing Any financial offer that promises free investment returns or a guaranteed return on investment should be avoided. A lot of times, if something sounds too good to be true, it probably is. 10. Map Your Financial Future Prepare a list of both short-term and long-term financial goals. Then create a realistic road map to reach your goals. 11. Your Credit Past Is Your Credit Future You should be aware that credit bureaus maintain credit reports, which record borrowers’ repayment history. If your credit report contains negative information, you may have difficulty borrowing in the future. 12. Stay Insured An illness or accident can wipe you out financially, which is why you should purchase insurance. Every individual should have an insurance plan as part of their financial planning. How to Get Started With Your Personal Finance Education Regardless if you’re in your 20s looking for ways to pay off your student loans or a retiree wanting to stretch your savings, it’s never too late to expand your financial knowledge. Why? Your financial stability will improve and your ability to manage your money will improve. At the same time, the purpose is not to become an expert in this field. Regardless, it’s important to become familiar with a variety of personal finance topics from tax deductions to investing to retirement planning. To help you increase your financial knowledge, here are some suggestions: Read magazines, journals, and online features on financial topics. You can learn a lot about your finances by reading both print and online financial publications. Additionally, they can help you plan for the future by providing insight into long-term financial goals. You can learn how to manage your money by reading books. The right book can give you in-depth information about your finances and provide you with the help you need to adjust the way you perceive and use money. For savvy readers, here are 12 personal finance books you should put on your reading list. Spend time listening to podcasts about finance and money. If you do not have time to read, listening to a podcast is a great option. Additionally, you can cook, exercise, and travel while doing this. Take advantage of financial management tools by downloading them. Newbies may find financial management daunting. You can simplify your finances with the many money tools available today thanks to modern technology, like robo-advisors. Consider taking a financial literacy course. You can ask questions and learn from a teacher while receiving financial instruction in a structured environment. You can find online schools, college courses, and adult education centers that offer these financial programs. Hire a professional to help you plan your finances. A financial plan, in contrast to a budget, sets priorities for achieving long-term goals 10 to 30 years in the future. If you need assistance planning, saving, retiring, or repaying debt, you might consider hiring a professional financial advisor. FAQs How do I make a budget? To begin with, keep track of all of your income and expenses in the coming months. Once you have a complete understanding of your budget, you can make changes accordingly. You can use this information to identify areas where you can save money, cut costs, and eliminate debt. Every once or twice a year, you should revisit your budget. A budget should be updated if income or expenses have significantly changed since last time. Is your emergency fund sufficient? Most experts recommend keeping at least three to six months’ worth of expenses in your emergency fund. However, several factors can affect this, including: Job security and income Your field’s job market Cost of living in your area Your lifestyle The affordability of your health insurance As an example, you should have at least $12,000 to $24,000 in your emergency fund if you spend roughly $4,000 per month on essential living costs. Should I pay off debt or save for retirement? Answering this question requires consideration of your financial situation. But, you might find some inspiration in your budget. If you have the option, start building your retirement savings through your employer’s 401(k) plan. You should then review your budget and find ways to reduce your debt by cutting costs. With the help of a financial planner, you can pay off debt and save for retirement. How can you improve your credit rating? Building your credit is all about paying all your bills on time, every time, over months and years. But, the following things will also help you improve your credit: Check your credit report for errors and correct them Make sure you settle your outstanding balances as soon as possible Ensure that credit utilization is below 30% Limit the number of new credit requests Make sure old accounts are kept open and late payments are resolved Credit rating building is a long-term game, so staying consistent will allow you to reach your goal most effectively Are you ever done saving? In a nutshell, no. Ideally, you should save enough to cover your essentials and periodic expenses, but not unexpected ones. Maintenance on your house and vehicle, vacations, and special gifts all come under this category. Besides regular savings, you should also have enough to pay off credit card debt or replace your car’s tires in case of an emergency. These aren’t true emergencies because you know they’ll happen eventually. Although you can’t always predict when they’ll happen, planning for them is still prudent. Article by John Rampton, Due About The Author John Rampton is an entrepreneur and connector. When he was 23 years old, while attending the University of Utah, he was hurt in a construction accident. His leg was snapped in half. He was told by 13 doctors he would never walk again. Over the next 12 months, he had several surgeries, stem cell injections and learned how to walk again. During this time, he studied and mastered how to make money work for you, not against you. He has since taught thousands through books, courses and written over 5000 articles online about finance, entrepreneurship and productivity. He has been recognized as the Top Online Influencers in the World by Entrepreneur Magazine and Finance Expert by Time. He is the Founder and CEO of Due......»»

Category: blogSource: valuewalkSep 26th, 2022

Transcript: Edwin Conway

   The transcript from this week’s, MiB: Edwin Conway, BlackRock Alternative Investors, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS:… Read More The post Transcript: Edwin Conway appeared first on The Big Picture.    The transcript from this week’s, MiB: Edwin Conway, BlackRock Alternative Investors, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, man, I have an extra special guest. Edwin Conway runs all of alternatives for BlackRocks. His title is Global Head of Alternative Investors and he covers everything from structured credit to real estate hedge funds to you name it. The group runs over $300 billion and he has been a driving force into making this a substantial portion of Blackrock’s $9 trillion in total assets. The opportunity set that exists for alternatives even for a firm like Blackrock that specializes in public markets is potentially huge and Blackrock wants a big piece of it. I found this conversation to be absolutely fascinating and I think you will also. So with no further ado, my conversation with Blackrock’s Head of Alternatives, Edwin Conway. MALE VOICEOVER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. RITHOLTZ: My extra special guest this week is Edwin Conway. He is the Global Head of Blackrock’s Alternative Investors which runs about $300 billion in assets. He is a team of over 1,100 professionals to help him manage those assets. Blackrock’s Global alternatives include businesses that cover real estate infrastructure, hedge funds private equity, and credit. He is a senior managing director for BlackRock. Edwin Conway, welcome to Bloomberg. EDWIN CONWAY, GLOBAL HEAD OF ALTERNATIVE INVESTORS, BLACKROCK: Barry, thank you for having me. RITHOLTZ: So, you’ve been in the financial services industry for a long time. You were at Credit Suisse and Blackstone and now you’re at BlackRock. Tell us what the process was like breaking into the industry? CONWAY: It’s an interesting on, Barry. I grew up in a very small town in the middle of Ireland. And the breakthrough to the industry was one of more coincident as opposed to purpose. I enjoyed the game of rugby for many years and through an introduction while at the University, in University College Dublin in Ireland, had a chance to play rugby at a quite a – quite a decent level and get to know people that were across the industry. It was really through and internship and the suggestion, I’ve given my focus on business and financing things that the financial services sector may be a great place to traverse and get to know. And literally through rugby connections, been part of a good school, I had an opportunity to really understand what the service sector, in many respects, could provide to clients and became absolutely intrigued with it. And what – was it my primary ambition in life to be in the financial services sector? I can definitively say no, but through the circumstance of a game that I love to play and be part of, I was introduced to, through an internship, and actually fell in love with it. RITHOLTZ: Quite interesting. And alternative investments at Blackrock almost seems like a contradiction in terms. Most of us tend to think of Blackrock as the giant $9 trillion public markets firm best known for ETFs and indices. Alternatives seems to be one of the fastest-growing groups within the firm. This was $50 billion just a few years ago, it’s now over 300 billion. How has this become such a fast-growing part of BlackRock? CONWAY: When you look at the various facets which you introduced at the start, Barry, we’ve actually been an alternatives – will be of 30 years now. Now, the scale, as you know, which you can operate on the beta side of business, far surpasses that on the alpha side. For us, throughout the years, this was very much about how can we deliver investment excellence to our clients and performance? Therefore, going an opportunity somewhere else to explore an alpha opportunity in alternatives. And I think being so connected to our clients understanding, that this pivots was absolutely taking place at only 30 years ago but in a very pronounced way today, you know, we continue to invest in this business to support those ambitions. They’re clearly seeing this as the world of going through a tremendous amount of transformation and with some of the challenges, quite frankly, in the traditional asset classes, being able to leverage at BlackRock, the Blackrock muscle to really explore these alpha opportunities across the various alternative asset classes that in our mind wasn’t imperative. And the imperative, really, is from the firm’s perspective and if you look at our purpose, it’s to serve the client. So the need was coming from them. The necessity to have alternatives and their whole portfolio was very – was very much growing in prominence. And it’s taken us 30 years to build this journey and I think, Barry, quite frankly, we’re far from being done. As you look at the industry, the demand is going to continue to grow. So, I think you could expect to see from us a continued investment in the space because we don’t believe you can live without alternatives in today’s world. RITHOLTZ: That’s really – that’s really interesting. So let’s dive a little deeper into the product strategy for alternatives which you are responsible for at BlackRock. Our audiences is filled with potential investors. Tell them a little bit about what that strategy is. CONWAY: So we’re – I think as you mentioned, we’re in excess of 300 billion today and when we started this business, it was less about building a moat around private equity or real estate. I think Larry Fink’s and Rob Kapito’s vision was how do we build a platform to allow us to be relevant to our clients across the various alternative asset classes but also within the – within the confines of what they are permitted to do on a year-by-year basis. So, to always be relevant irrespective of where they are in their journey from respect of liabilities, demand for liquidity, demand for returns, so we took a different approach. I think, Barry, to most, it was around how do we scale into the business across, like you said, real estate equity and debt, infrastructure equity and debt. I mean, we think of that as the real assets platform of our business. Then you take our private equity capabilities both in primary investing, secondary et cetera, and then you have private credits and a very significant hedge fund platforms. So we think all of these have a real role and depending on clients liquidities and risk appetite, our goal was, to over the years, really build in to this to allow ourselves for this challenging needs that our clients have. I think as an industry, right, and over the many years alternatives have been in existence, this is been about return enhancement initially. I think, fundamentally, the changes around the receptivity to the role of alternatives in a client’s portfolio has really changed. So, we’ve watched it, Barry, from this is we’re in the pursuit of a very total return or absolute return type of an objective to now resilience in our portfolio, yield an income. And so things that probably weren’t perceived as valuable in the past because the traditional asset classes were playing a more profound role, alternatives have stepped up in – in many respects in the need to provide more than just total return. So, we’re taking the approach of how do you have a more holistic approach to this? How do we really build a global multi-alternatives capability and try to partner and I think that’s the important work for us. Try to partner with our clients in a way that we can deliver that outperformance but delivered in a way that probably our clients haven’t been used to in this industry before. Because unfortunately, as we know, it has had its challenges with regard to secrecy, transparency, and so many other aspects. We need to help the industry mature. And really that was our ambition. Put our client’s needs first, build around that and really be relevant in all aspects of what we’re doing or trying to accomplish on behalf of the people that they support and represent. RITHOLTZ: So, we’ll talk a little bit about transparency and secrecy and those sorts of things later. But right now, I have to ask what I guess is kind of an obvious question. This growth that you’ve achieved within Blackrock for nonpublic asset allocation within a portfolio, what is this coming at expense of? Are these dollars that are being moved from public assets into private assets or you just competing with other private investors? CONWAY: It’s really both. What – what you are seeing from our clients – if I take a step back, today, the institutional client community and you think about the – the retirement conundrum we’re all facing around the world. It’s such an awful challenge when you think how ill-prepared people are for that eventual stepping back from the workplace and then you know longevity is your friend, but can also be a very, very difficult thing to obviously live with if you’re not prepared for retirement. The typical pension plan today are allocating about 25 percent to 28 percent in alternatives. Predominantly private market. What they’re telling us is that’s increasing quite substantially going forward. But you know, the funding for that alpha pursue for that diversification and that yield is coming from fixed-income assets. It’s coming from equity assets. So there’s a real rebalancing that’s been taking place over the past number of years. And quite frankly, the evolution, and I think the innovation that’s taken place particularly in the past 10 years, alternatives has been really profound. So the days where you just invest in any global funds still exist. But now you can concentrate your efforts on sector exposure, industry exposures, geographic exposures, and I think the – the menu of things our clients can now have access to has just been so greatly enhanced at and the benefit is that but I think in some – in some respects, Barry, the next question is with all of those choices, how do you build the right portfolio for our client’s needs knowing that each one of our client’s needs are different? So, I would say it absolutely coming from the public side. We’re very thankful. Those that had a multiyear journey with us in the public side are now allocating capital to is now the private side to because I do think the – the industry given that change, given that it evolution and given the complexity of these private assets, our clients are looking to, quite frankly, do more with fewer managers because of the complexion of the industry and complexity that comes with it. RITHOLTZ: Quite – quite interesting. (UNKNOWN): And attention RIA’s. Are your clients asking for crypto? At interactive brokers, advisers can now offer crypto to their clients and you could trade stocks, options, futures currencies, bonds and more from the same platform. Commissions on crypto are just 12-18 basis points with no hidden spreads or markups and there are no ticket charges, custody fees, minimums platform or reporting fees. Learn more at IBKR.com/RIA crypto. RITHOLTZ: And I – it’s pretty easy to see why large institutions might be rotating away from things like treasuries or tips because there’s just no yield there. Are you seeing inflows coming in from the public equity side also? The markets put together a pretty good string of years. CONWAY: Yes. It absolutely has. And many respects, I think, we’ve had a multiyear where there was big questions around the alpha that can be generated, for example, from active equities? The question was active or passive? I think what we’ve all realized is that at times when volatility introduces itself which is frequent even independent of what’s been done from a fiscal and monetary standpoint, that these Alpha speaking strategies on the traditional side still make a lot of sense. And so, as we think about what – what’s happening here, the transition of assets from both passive and active strategies to alternative, it – it’s really to create better balance. It’s not that there’s – there’s a lack of relevance anymore in the public side. It’s just quite frankly the growth of the private asset base has grown so substantially. I moved, Barry, to the U.S. in 1998. And it’s interesting, when you look back at 1998 to today, you start to recognize the equity markets and what was available to invest in. The number of investable opportunities has shrunk by 40 plus percent which that compression is extraordinarily high. But yet you’ve seen, obviously, the equity markets grow in stature and significance and prominence but you’re having more concentration risk with some of the big public entities. The converse is true, though on the – on the private side. There’s this explosion of enterprise and innovation, employment creation, and then I believe opportunities has been real. So, I look at the public side, the investable universe is measured in the thousands and the private side is measured in the millions. RITHOLTZ: Wow. CONWAY: And I think part of the – part of the part of the thing our clients are not struggling with but what we’re really recognizing with – with enterprises staying private for longer, if not forever, and with his growth of the opportunities that open debt and equity in the private market side, you really can’t forgo this opportunity. It has to be part of your going forward concerns and asset allocation. And I think this is why we’re seeing that transformation. And it’s not because equities on fixed income just aren’t relevant anymore. They’re very relevant but they’re relevant now in a total portfolio or a whole portfolio context beside alternatives. RITHOLTZ: So, let’s discuss this opportunity set of alternatives where you guys at Blackrock scene demand what sectors and from what sorts of clients? Is this demand increasing? CONWAY: We’re very fortunate, Barry. Today, there isn’t a single piece of our business within – within Blackrock alternatives that isn’t growing. And quite frankly too, it’s really up to us to deliver on the investment objectives that are set forth for those clients. I think in the back of strong absolute and relative performance, thankfully, our clients look to us to – to help them as – as they think about what they’re doing and as they’re exploring more in the alternatives areas. So, as you know, certainly, the private equity and real estate allocations are quite mature in many of our client’s portfolios but they’ve been around for many decades. I think that the areas where we’re seeing – that’s called an outside demand and opportunity set, just but virtue of the small allocations on a relative basis that exist today is really around infrastructure, Barry, and its around private credits. So, to caveat that, I think all of the areas are certainly growing, and thankfully, for us that’s true. We’re looking at clients who we believe are underinvested, we believe they’re underinvested in those asset classes infrastructure both debt and equity and in private credit. And as you think about why that is, the attributes that they bring to our client is really important and in a world where your correlation and understanding those correlations is important that these are definitely diversifying assets. In a world where you’re seeing trillions of dollars, quite frankly, you’re providing little to no or even there’s negative yield. Those short falls are real and people need yield than need income. These assets tend to provide that. So the diversification, it comes from these assets. The yield can come from these assets and because of the immaturity of the asset classes, independence of the capital is flowing in, we still consider them relatively white space. You’re not crowded out. There’s much room for development in the market and with our client’s portfolios. And to us, that’s exciting because it presents opportunities. So, at the highest level, they’re the areas where I believe are most underdeveloped in our clients. RITHOLTZ: So let’s talk about both of those areas. We’ll talk about structured credit in a few minutes. I think everybody kind of understands what – what that is. What – when you see infrastructure as a sector, how does that show up as an investment are – and obviously, I have infrastructure on the brink because we’re recording this not too long after the giant infrastructure bill has been passed, tell us a little bit about what alternative investments in infrastructure looks like? CONWAY: Yes. It’s really in its infancy and what the underlying investments look like. I think traditionally, you would consider it as – and part of the bill that has just been announced, roads, bridges, airports. Some of these hard assets, some of the core infrastructure investments that have been around for actually some time. The interesting thing is the industry has evolved so much and put the need for infrastructure. It’s so great across both developed and emerging economies. It’s become something that if done the right way, the attributes we just spoke of can really have a very strong effect on our client’s portfolios. So, beyond the core that we just mentioned, well, we’ve seen a tremendous demand as a result of this energy transition. You’re really seeing a spike in activity and the necessity transition industry to cleaner technologies, a movement, not away completely from fossil fuel but integrating new types of clean energy. And as a result, you’ve seen a lot of demand on a global basis for wind and solar. And quite frankly, that’s why even us at BlackRock, albeit, 10-12 years ago, we really established a capability there to help with that transition to think about how do we use these technologies, solar panels, wind farms, to generate clean forms of energy for utilities where in some cases they’re mandated to procure this type of this type of – this type of power. And when you think about pre-contracting with utilities for long duration, that to me spells, Barry, good risk mitigation and management and ability to get access to clean forms of energy that throw off yield that can be very complementary to your traditional asset classes but for very long periods of time. And so, the benefits for us of these – these assets is that they are long in duration, they are yield enhancing, they’re definitely diversifying. And so, for us, where – we’ve got about, let’s call this 280 assets around the world that we’re managing that literally generate this – this clean electricity. I think to give the relevance of how much, I believe today, it’s enough to power the country of Spain. RITHOLTZ: Wow. CONWAY: And that’s really that’s really changing. So you’re seeing governments – so from a policy standpoint, you’re seeing governments really embracing new forms of energy, transitioning out of bunker fuels, for example, you know, burning diesels which really spew omissions into the – into the into the environment. But it’s really around modernizing for the future. So, developed and emerging economies alike, want to retain capital. They want to attract new capital and by having the proper infrastructure to support industry, it’s a really, really important thing. Now, on the back of that too, one things we’ve learned from COVID is that the necessity to really bring e-commerce into how you conduct your business is so important and I think from the theme of digitalization within infrastructure to is a huge part. So, it’s not just the energy transition that you’re seeing, it’s not just roads and bridges, but by allowing businesses to connect to a global consumer, allowing children be educated from home, allowing experiences that expand geographies and boundaries in a digital form is so important not just for commerce but in so many other aspects. And so, you think about cable, fiber optics, if you think about all the other things even outside of power, that enable us to conduct commerce to educate, there are many examples where, Barry, you can build resilience into your portfolio because that need is not measured in years. Actually, the shortfall of capital is measured in the trillions so which means this is – this is a multi-decade opportunity set from our vantage point and one of which our clients should really avail of. RITHOLTZ: Quite interesting. And I mentioned in passing, structured credit, tell us a little bit about what that opportunity looks like. I think of this as a space that is too big for local banks but too small for Wall Street to finance. Is that an oversimplification? What is going on in that space. CONWAY: I probably couldn’t have set it better, Barry. It’s – if we go back to just the even the investable universe, in the tens of thousands of companies, just if we take North America that are private, that have great leadership that really have strategic vision under – at the – in some cases, at the start of their growth lifecycles are even if they maintain, they have a very credible and viable business for the future they still need capital. And you’re absolutely right. With the retreat of the banks from the space to various regulations that have come after the global financial crisis, you’re seeing the asset managers in many respects working behalf of our clients both wealth and institutional becoming the new lenders of choice. And – and when we – when we think about that opportunity set, that is really understanding the client’s desire for risk or something maybe in a lower risk side from middle-market lending or midmarket enterprises where you can support that organization through its growth cycle all the way to some higher-yielding, obviously, with more risk assets on the opportunistic or even the special situations side. But it – it expands many things. And going back of the commentary around the evolution of the space, private credit today and what you can do has changed so profoundly, it expands the liquidity spectrum, it expands the risk spectrum. And the great news is, with the number of companies both here and abroad, the opportunities that is – it’s being enriched every single day. And were certainly seeing, particularly going back to the question are some of these assets coming from the traditional side, the public side. When we think of private credit, you are seeing private credit now been incorporated in fixed-income allocations. This is a – it’s a yelling asset. This is – these are debt instruments, these are structures that we’re creating. We’re trying to flexible and dynamic with these clients. But it really is an area where we think – it really is still at its – at its infancy relevant to where it can potentially be. RITHOLTZ: That’s really quite – quite interesting. (UNKNOWN): It’s Rob Riggle. I’m hosting Season 2 of the iHeart radio podcast, Veterans You Should Know. You may know me as the comedic actor from my work in the Hangover, Stepbrothers or 21 Jump Street. But before Hollywood, I was a United States Marine Corps officer for 23 years. For this Veterans Day, I’ll be sitting down with those who proudly served in the Armed Forces to hear about the lessons they’ve learned, the obstacles they’ve overcome, and the life-changing impact of their service. Through this four-part series, we’ll hear the inspiring journeys of these veterans and how they took those values during their time of service and apply them to transition out of the military and into civilian life. Listen to Veterans You Should Know on the iHeart radio app, Apple Podcast or wherever you get your podcast. RITHOLTZ: Let’s stick with that concept of money rotating away from fixed income. I have to imagine clients are starved for yields. So what are the popular substitutes for this? Is it primarily structured credit? Is it real estate? How do you respond to an institution that says, hey, I’m not getting any sort of realistic coupon on my bonds, I need a substitute? CONWAY: Yes. It’s all of those in many respects. And I think to the role, even around now a time where people have questions around inflation, how do substitute this yield efficiency or certainly make up for that shortfall, how do you think about a world where increasingly seeing inflation, not of the transitory thing it feels certainly quasi-permanent. These are a lot of questions we’re getting. And certainly, real estate is an is important part of how they think about inflation protection, how client think about yield, but quite frankly too, we’ve – we’ve gone through something none of us really had thought about a global pandemic. And as I think about real estate, just how you allocate to the sector, what was very heavily influenced with retail assets, high street, our shopping behaviors and habits have changed. We all occupied offices for obviously many, many years pre the pandemic. The shape of how we operate and how we do that has changed. So, I think some of the underlying investment – investments have changed where you’ve seen heavily weighted towards office space to leisure, travel in the past. Actually, now using a rotation in some respects out of those, just given some of the uncertainties around what the future holds as we come – come through a really difficult time. But the great thing about this sector is between senior living, between student housing, between logistics and so many other parts, there are ways in real estate to capture where there’s – where there’s demand. So still a robust opportunity set and it – and we do think it can absolutely be yield enhancing. We mentioned infrastructure. Even if you think about – and we mention OECD and non-OECD, emerging and developed, when I think about Asia, in particular, just as a subset of the world in which we’re living in, that is a $2.6 trillion alternative market today growing at a 15 percent CAGR. And quite frankly, the old-growth is driven by the large economic growth in the region. So, even from a regional perspective, if we pivot, it houses 57 percent of the world’s population and yet delivers 47 percent of the world’s economic growth. So, think of that and then with regard to infrastructure and goes back to that, this is truly a global phenomenon. So if we just even take that sector, Barry, you’ll realize that the way to maintain that type of growth, to attract capital, to keep capital, it really requires an investment of significant amount of money to be able to sustain that. And when you have 42 million people in a APAC migrating to cities in the year going back to digitalization, that’s an important thing. So, when I say we’re so much at the infancy in infrastructure, I really mean it. It can be water, it can be sewer systems, it can be digital, it can be roads, there’s so much to this. And then even down to the regional perspective, it’s a – it’s a need that doesn’t just exist in the U.S. So, for these assets, this tend to be long in duration. There’s both equity and debt. And on the debt side, quite frankly, very few outside of our insurance clients and their general account are taking advantage of the debt opportunity. And – and as we both know, to finance these projects that are becoming more plentiful every single day, across the world, including like, I said, in APAC in scale, there’s an opportunity in both sides. And I think that’s where the acid mix change happen. It’s recognizing that the attributes of these assets can have a role, the attributes of these assets can potentially replace some of these traditional assets and I think you’re going to see it grow. So, infrastructure to us, it’s really equity and debt. And then on the credit side, like I mentioned, again, too, it’s a very, very big and growing market. And certainly, the biggest area today from our vantage point is middle-market lending from a scale opportunity standpoint. So, we think much more to come in all of those spaces. RITHOLTZ: Really interesting. And let’s just stay with the concept of public versus private. That line is kind of getting blurred and the secondary markets is liquidity coming to, for lack of a better phrase, pre-public equities, tells little bit about that space. Is that an area that is ripe for growth for BlackRock? CONWAY: Yes. We absolutely think it is and you’re absolutely correct. The secondary market is – has grown quite substantial. If you even look at just the private equity secondary market and what will transact this year, I think it will be potentially in excess of 100 billion. And that’s what were clear, not to mention what will be visible and what will be analyzed. And that speaks to me what’s really happening and the innovation that we mentioned earlier. It’s no longer about just primary exposure. It’s secondary exposure. When we see all sort of interest and co-investment opportunities as well, I think the available sources of alpha and the flexibility you can now have, albeit if directed and advised, I believe the right way, Barry, can be very helpful and in the portfolio. So, your pre-IPO, it is a big part of actually what we do and we think about growth equity. There is – it’s a significant amount of capital following that space. Now, from our vantage point, as one of the largest investors in the public equity market and now obviously one of the largest investors and they in the private side, the bridge between – between private to public – there’s a real need. IPOs are not going away. And I think smart, informed capital to help with this journey, this journey is really – is really a necessity and a need. RITHOLTZ: So let’s talk a little bit about this recent restructuring. You are first named Global Head of Blackrock Alternative Investors in April 2019, the entire alternatives business was restructured, tell us a little bit about how that restructuring is going? CONWAY: Continues to go really well, Barry. When you look at the flow of acid from our clients, I think, hopefully, that’s speaks to the performance we’ve been generating. I joined the firm, as you know, albeit, 11 years ago and being very close to the alternative franchise as a critical thing for me and running the institutional platform. To me, when you watched this migration of asset towards alternatives, it was obviously very evident for decades now that this is a critical leg of the stool as our clients are thinking about their portfolios. We’re continuing to innovate. We’re continuing to invest, and thankfully, we’re continuing to deliver strong performance. We’re growing at about high double digits on an annual basis but we’re trying to purposeful too around where that growth is coming from. I think the reality is when you look at the competitive universe, I think the last number I saw, it was about 38,000 alternative asset managers out there today, obviously, coming from hedge funds all the way to private credits and private equity. So, competition is real and I do think the outcomes for our clients are starting to really grow. Unfortunately, some – in some cases, obviously, very good, and in some cases, actually not great. So our focus, Barry, is really much on how can we deliver performance, how can we be a partner? And I think we been rewarded with a trust and the faith our clients have in us because they’re seeing something different, I think, from us. Now, the scale of the business that you mentioned earlier really gives us tentacles into the market that I believe allows us to access what I think is the new alpha which is in many respects, given the heft of competition sourcing and originating new investments is certainly harder but for us, sitting in or having alternative team, sitting in 50 offices around the world, really investing in the markets because that – the market they grew up with and have relationships within, I think this network value that we have is something that’s quite special. And I think in the world that’s becoming increasingly competitive, we’re going to continue to use and harness that network value to pursue opportunities. And thankfully, as a result of the partnership we’ve been pursuing with her clients, like, we’ve – we’re certainly looking for opportunities and investments in our funds. But because of the brand, I think because of the successes, opportunities seeks us as much as we seek opportunity and that has been something that we look at an ongoing basis and feel very privileged to actually have that inbound flow as well. RITHOLTZ: Really quite interesting. There was a quote of yours I found while doing some prep for this conversation that I have to have you expand on. Quote, “The relationship between Blackrock’s alternative capabilities and wealth firms marked a large opportunity for growth in the coming years.” This was back in 2019. So, the first part of the question is, was your expectations correct? Did you – did you see the sort of growth you were hoping for? And more broadly, how large of an opportunity is alternatives, not just for BlackRock but for the entire investment industry? CONWAY: Yes. It’s been very much an institutional opportunity set up until now. And there’s so much to be done, still, to really democratize alternatives and we certainly joke around making alternatives less alternative. Actually, even the nomenclature we use and how we describe it doesn’t kind of make sense anymore. It’s such a core – an important allocation to our clients, Barry, that just calling it alternative seems wrong. Just about the institutional clients. It ranges, I think, as I mentioned on our – some of our more conservative clients which would be pension plans which really have liquidity needs on a monthly basis because of the liabilities they have to think about. At about 25 plus percent in private markets, to endowments, foundations, family offices, going to 50 percent plus. So, it’s a really important part and has been for now many years the institutional client ph communities outcomes. I think the thing that we, as an industry, have to change is alternatives has to be for the many, not for the few. And quite frankly, it’s been for the few. And as we talked about some of the attributes and the important attributes of these asset classes to think that those who have been less fortunate in their careers can’t access, things they can enrich their future retirement outcomes, to me, is a failing. And we have to address that. That comes from regulation changes, it comes from structuring of new products, it comes from education and it comes from this knowledge transmission where clients in the wealth segment can understand the role of alternatives and the context of what can do as they invest in equities and fixed income too. And we think that’s a big shortfall. So, the journey today, just to give you a sense, as we look at her clients in Europe on the wealth side, on average, as you look from what we would call the credited investors all the way through to more ultra-high-net worth individuals, their allocation to alternatives, we believe, stands at around two to three percent of their total portfolio. In the U.S., we believe it stands at three to five. So, most of those intermediaries, we speak to our partners who were more supporting and serving the wealth channel. They have certainly an ambition to help their clients grow that to 20 percent and potentially beyond that. So, when I look at that gap of let’s call it two to three to 20 percent in a market that just given the explosion in wealth around the world, I think the last numbers I saw, this is a $65 trillion market. RITHOLTZ: Wow. CONWAY: That speaks to the shortfall relative to the ambition. And how’s it been going? We have a number of things and capabilities we’ve set up to allow for this market to experience, hopefully, private equity, hedge funds, credit, and an infrastructure in ways they haven’t in the past. We’ve done this in the U.S., we’re doing it now in Europe, but I will say, Barry, this is still very much at the start of the journey. Wealth is a really important part of our future given our business, quite, frankly is 90 plus percent institutional today, but we’re looking to change that by, hopefully, democratizing these asset classes and making it so much more accessible in that of the past. RITHOLTZ: So, we hinted at this before but I’m going to ask the question outright, how significant is interest rates to client’s risk appetites, how much of the current low rate environment are driving people to move chunks of their assets from fixed income to alternatives? CONWAY: It’s really significant, Barry. I think the transition of these portfolios is quite profound, So you – and I think the unfortunate thing in some respects as this transition happens that you’re introducing new variables and new risks. The reason I say it’s unfortunate and that I think as an industry, this goes back to the education around the assets you own, understanding the role, understanding the various outcomes. I think it’s so incredibly important and that this the time where complete transparency is needed. And quite frankly, we’re investing capital that’s not ours. As an industry, we’re investing our client’s assets and they need to know exactly the underlying investments. And in good and bad times, how would those assets behave? So certainly, interest rates are driving a flow of capital away from these traditional assets, fixed-income, and absolutely in towards real estate, infrastructure, private creditors, et cetera, in the pursuit of this – this yield. But I do – I do think one of the things that’s critically important for the institutional channel, not just the wealth which are newer entrants is this transmission of education, of data because that’s how I think you build a better balanced portfolio and that’s a – that’s a real conundrum, I think, that the industry is facing and certainly your clients too. RITHOLTZ: Quite interesting. So let’s talk a little bit about the differences between investing in the private side versus the public markets, the most obvious one has to be the illiquidity. When you buy stocks or bonds, you get a print every microsecond, every tick, but most of these investments are only marked quarterly or annually, what does this illiquidity do when you’re interacting with clients? How do you – how do you discuss this with them in and how do perceive some of the challenges of illiquid investments? CONWAY: Over the – over the past number of decades, I think our clients have largely held too much liquidity in their portfolios. Like, so what we are finding is the ability to take on illiquidity risk. And obviously, in pursuit of that premium above, the traditional markets, I mean, I think the sentiment they are is it an absolute right one. That transition towards private market exposure, we think is an important one just given the return objectives, the majority of our clients’ need but then also again, most importantly now, with geo policy, with uncertainty, with interest rate uncertainty, inflation uncertainty, I mean, the – going back to the resilience point, the characteristics now by introducing these assets into the mix is important. And I think that’s – that point is maybe what I’ll expand on. As were talking to clients, using the Aladdin systems, and as you know, we bought eFront technologies, albeit a couple of years ago, by allowing, I think, great data and technology to help our clients understand these assets and the context of how they should own them relative to other liquidity needs, their risk tolerances, and the return expectations are really trying to use tech and data to provide a better understanding and comprehension of the outcomes. And as we continue to introduce these concepts and these approaches, by the way, that there is, as you know, so used to in the traditional side, it – it gives them more comfort around what they should and can expect. And that, to me, is a really important part of what we’re doing. So, we’ve released recently new technology to the wealth sector because, quite frankly, we mentioned it before, the 60-40 portfolio is a thing of the past. And that introduction of about 20 percent into alternatives, we applaud our partners who are – who are suggesting that to their clients. We think it’s something they have to do. What we’re doing to support that is really bringing thought leadership, education, but also portfolio construction techniques and data to bear in that conversation. And this goes back to – it’s no longer an alternative, right? This is a core allocation so the comprehension of what it is you own, the behavior of the asset in good and bad times is so necessary. And that’s become a very big thing with regard to our activities, Barry, because your clients are looking to understand better when you’re talking about assets that are very complex in their nature. RITHOLTZ: So, 60-40 is now 50-30-20, something along those lines? CONWAY: Yes. RITHOLTZ: Really, really intriguing. So, what are clients really looking for these days? We talked about yield. Are they also looking for downside protection on the equity side or inflation hedges you hinted at? How broad are the demands of clients in the alternative space? CONWAY: Yes. It ranges the gamut. And even – we didn’t speak to even hedge funds, we’ve had differing levels of interest in the hedge fund world for years and I, quite frankly, think some degree of disappointment too, Barry, with regard to the alpha, the returns that were produced relevant to the cost. RITHOLTZ: It’s a tough space to say the very least exactly. CONWAY: Exactly right. But when you start to see volatility introducing itself, you can really see where skill plays a critical factor. So, we are absolutely seeing, in the hedge fund, a resurgence of interest and demand by virtue of those who really have honed in on their scale, who have demonstrated an up-and-down markets and ability to protect and preserve capital, but importantly, in a low uncorrelated way build attractive risk-adjusted returns. We’re starting to see more activity there again too. I think with an alternatives, you’ve really seen a predominant demand coming from privates. These private markets, like a set of growths so extraordinarily fast and the opportunities that is rich, the reality too on the public side which is where our hedge funds operate, they continue to, in large part, do a really good job. The issue with our industry now with these 38,000 managers is how do you distill all the information? How do you think about your needs as a client and pick a manager who can deliver the outcomes? And just to give you a sense, the difference now between a top-performing private equity manager, a top quartile versus the bottom quartile, the difference can be measured in tens of percent. RITHOLTZ: Wow. CONWAY: Whereas if you look at the public equity side, for example, a large cap manager, top quartile versus bottom quartile is measured in hundreds of basis points. So, there is definitely a world that has started where the outcomes our clients will experience can be great as they pursue yield, as they pursue diversification, inflation protection, et cetera. I think the caveat that I would say is outcomes can vary greatly. So manager underwriting and the importance of it now, I think, really is this something to pay attention to because if you do have that bottom performing at the bottom quartile manager, it will affect your outcomes, obviously. And that’s what we collectively have to face. RITHOLTZ: So, let’s talk a little bit about real estate. There are a couple of different areas of investment on the private side. Rent to own was a very large one and we’ve seen some lesser by the flip algo-driven approaches. Tell us what Blackrock is doing in the real estate space and how many different approaches are you bringing to bear on this? CONWAY: Yes, we think it’s both equity and debt. Again, no different to the infrastructure side, these projects need to be financed. But on the – as you think about the sectors in which you can avail of the opportunity, you’ve no doubt heard a lot and I mentioned earlier this demand for logistics facilities. The explosion of shopping online and having, until we obviously have the supply chain disruption, an ability to have nearly immediate satisfaction because the delivery of the good to your home has become so readily available. It’s a very different consumer experience. So the explosion and the need for logistics facilities to support this type of behavior of the consumer is really an area that will continue to be of great interest too. And then you think about the transformation of business and you think about the aging world. Unfortunately, you can look at various economies where our populations are decreasing. And quite frankly, we’re getting older. And so, were you’re thinking of the context of that senior living facilities, it becomes a really important part, not just as part of the healthcare solution that come with it, but also from living as well. So, single-family, multifamily, opportunities continue to be something that the world looks at because there is really the shortfall of available properties for people to live in. And as the communities evolve to support the growing age of the population, tremendous opportunity there too. But we won’t give up on office space. It really isn’t going away. Now, if you even think about our younger generation here in BlackRock, they love being in New York, they love being in London, they love being in Hong Kong. So, the shape and the footprint may change slightly. But the necessity to be in the major financial centers, it still exists. But how we weighed the risks has definitely changed, certainly, for the – for the short-term and medium-term future. But real estate continues to be, Barry, a critical part of how we express our thought around the investment opportunity set. But clients largely do this themselves too. The direct investing from the clients is quite significant because they too see this as still as a rich investment ground, albeit, one that has changed quite a bit as a result of COVID. RITHOLTZ: Well, I’m fascinated by the real estate issue especially having seen some massive construction take place in cities pre-pandemic, look over in Manhattan at Hudson Yards and look at what’s taking place in London, not just the center of London but all – but all around it and I’m forced to admit the future is going to look somewhat different than the past with some hybrid combination of collaborative work in the office and remote work from home when it’s convenient, that sort of suggests that we now have an excess of capacity in office space. Do you see it that way or is this just something that we’re going to grow into and just the nature of working in offices is changing but offices are not going away? CONWAY: Yes. I do think there’s – it’s a very valid point and that in certain cities, you will see access, in others we just don’t, Barry. And quite frankly, as a firm, too, as you know, we have adopted flexibility with our teams that were very fortunate. The technologies in which we created at BlackRock has just become such an amazing enabler, not just to help us as we mention manage the portfolios, help us a better portfolio construction, understand risks, but also to communicate with our clients. I think we’ve all witnessed and experienced a way to have connectivity that allows them to believe that commerce can exist beyond the boundaries of one building. However, I do look at our property portfolios and even the things that we’re doing. Rent collections still being extraordinarily high, occupancy now getting back up to pre-pandemic levels, not in all cities, but in many of the major ones that have reopened. And certainly, the demand for people to just socialize, that the demand for human connectivity is really high. It’s palpable, right? We see it here too. The smiles on people’s faces, they’re back in the office, conversing together, innovating together. When people were feeling unsafe, unquestionably, I think the question marks around the role of office space was really brought to bear. But as were coming through this, as you’ve seen vaccine rates change, as you’ve seen the infection rates fall, as you’ve seen confidence grow, the return to work is really happening and return to work to office work is really happening, albeit, now with degrees of flexibility. So, going back to the – I do believe in certain areas. You’re seeing a surplus. But in many areas you’re absolutely seeing a deficit and the reason I say that, Barry, is we are seeing occupancy in certain building at such a high level. And frankly, the demand for more space being so high, it’s uneven and this goes back to then where do you invest our client’s capital, making sense of those trends, predicting where you will see resilience versus stress and building that into the portfolio of consequences as you – as you better risk manage and mitigate. RITHOLTZ: Very interesting. And so, we are seeing this transition across a lot of different segments of investing, are you seeing any products that were or – or investing styles that was once thought of as primarily institutional that are sort of working their way towards the retail side of things? Meaning going from institutional to accredited to mom-and-pop investors? CONWAY: Well, certainly, in the past, private equity was really an asset class for institutional investors. And I think that’s – that has changed in a very profound way. I mentioned earlier are the regulation has become a more adaptive, but we also have heard, in many respects, in providing this access. And I think the perception of owning and be part of this illiquid investment opportunity set was hard to stomach because many didn’t understand the attributes and what it could bring and I think we’ve been trying to solve for that and what you’re seeing now with – with regulators, understanding that the difference between if we take it quite simply as DD versus DC, the differences between the options you as a participant in a retirement plan are so vastly different that – and I think there’s a broad recognition now that there needs to be more equity with regard to what happens there. And private equity been a really established part of the alternatives marketplace was once, I think, really believed to be an institutional asset class, but albeit now has become much more accessible to wealth. We’ve seen it by structuring activities in Europe working with the regulators. Now, we’re able to provide private equity exposure to clients across the continent and really getting access to what was historically very much an institutional asset class. And I do think the receptivity is extraordinarily high just throughout people’s careers, they have seen wealth been created as a result of engineering a great outcome with great management teams integrate business. And I do believe the receptivity towards private equity is high as an example. In the U.S., too, working with the various intermediaries and being able to wrap now private equity in a ’40 Act fund, for example, is possible. And by being able to deliver that to the many as opposed to the few, we think has been a very good success story. And I think, obviously, appreciated by our clients as well. So, I would look at that were seeing across private equity as well as private credit and quite frankly infrastructure accuracy. You’re seeing now regulation that’s becoming more appreciative of these asset classes, you’re seeing a more – a greater level of openness and willingness to allow for these assets to be part of many people’s experiences across their investment portfolio. And now, with innovation around structures, as an industry, were able to wrap these investments in a way that our clients can really access them. So, think across the board, it probably speaks the innovation that’s happening but I do think that accessibility has changed in a very significant way. But you’ve really seen it happen in private equity first and now that’s expanding across these various other asset classes. RITHOLTZ: Quite intriguing. I know I only have you for a relatively limited period of time, so let’s jump to our favorite questions that we ask all of our guests. Starting with tell us what you’ve been streaming these days. Give us your favorite Netflix or Amazon Prime shows. CONWAY: That is an interesting question, Barry. I don’t a hell of a lot of TV, I got to tell you. I am – I keep busy with three wonderful children and a beautiful wife and between the sports activities. When I do watch TV, I have to tell you I’m addicted to sports and having – I may have mentioned earlier, growing up playing rugby which is not the most common sport in the U.S., I stream nonstop the Six Nations that happens in Europe where Ireland is one of those six nations that compete against each other on an annual basis. Right now, they’re playing a lot of sites that are touring for the southern hemisphere. And to me, the free times I have is either enjoying golf or really enjoying rugby because I think it’s an extraordinary sport. Obviously, very physical, but very enjoyable to watch. And that, that truly is my passion outside of family. RITHOLTZ: Interesting stuff. Tell us a bit about your mentors, who helped to shape your early career? CONWAY: Well, it even goes back to some of the aspects of sports. Playing on a team and being on a field where you’re working together, there’s a strategy involved with that. Now, I used to really appreciate how we approach playing in the All-Ireland League. How we thought about our opponents, how we thought about the structure, how we thought about each individual with on the rugby field and the team having a role. They’re all different but your role. And actually, even starting from an early age, Barry, thinking about, I don’t know, it’s sports but how to build a great team with those various skills, perspective, that can be a really, really powerful combination when done well. And certainly, from an early age, that allowed me to appreciate that – actually, in the work environment, it’s not too different. You surround yourself with just really great people that have high integrity that are empathetic and have a degree of humility that when working together, good things can happen. And I will say, it really started at sports. But I think of today and even in BlackRock, how Larry Fink thinks about the world and I think Larry, truly, is a visionary. And then Rob Kapito who really helps lead the charge across our various businesses. Speaking and conversing with them on a daily basis, getting their perspectives, trying to get inside your head and thinking about the world from their vantage point. To me, it’s a huge thing about my ongoing personal career and development and I really enjoy those moments because I think what you recognize is independent of how much you think you know, there’s so much more to know. And this journey is an ever evolving one where you have to appreciate that you’ll never know everything and you need to be a student every single day. So, I’d probably cite those, Barry, as certainly the two most important mentors in my life today, professionally and personally quite frankly. RITHOLTZ: Really. Very interesting. Let’s talk about what you’re reading these days. Tell us about some of your favorite books and what you’re reading currently? CONWAY: Barry, what I love to read, I love to read history, believe it or not. From a very small country that seems to have exported many, many people, love to understand the history of Ireland. So, there’s so many books. And having three children that have been born in the U.S. and my wife is a New Yorker, trying to help them understand some of their history and what made them what they are. I love delving into Irish history and how the country had moments of greatness and moments of tremendous struggle. Outside of that, I really don’t enjoy science fiction or any of these books. I love reading, you name any paper and any magazine on a daily basis. Unfortunately, I wake at about 4:30, 5 o’clock every day. I spent my first two hours of the day just consuming as much information as possible. I enjoy it. But it’s all – it’s really investment-related magazines, not books. It’s every paper that you could possibly imagine, Barry, and I just – I have a great appreciation for certainly trying to be a student of the world because that’s what we’re operating in an I find it just a very interesting avenue to get an appreciation to for the, not just the opportunities, but the challenges we’re collectively facing as a society but also as a business. RITHOLTZ: I’m with you on that mass consumption of investing-related news. It sounds like you and I have the same a morning routine. Let’s talk about of what sort of advice you would give to a recent college graduate who was interested in a career of alternative investments? CONWAY: Well, the industry has – it’s just gone through such extraordinary growth and the difference, when I’ve started versus today, the career opportunity set has changed so much. And I think I try to remind anyone of our analysts who come into each one of our annual classes, right, as we bring in the new recruits. I think about how talented they are for us, Barry, and how privileged we all are to be in this industry and work for the clients that we do. It’s just such an honor to do that. But I kind of – I try to remind them of that. At the end of the day, whether you’re supporting an institution, that institution is the face of many people in the background and alternatives has really now become such an important part of their experience and we talked about earlier just this challenge of retirement, if we do a good job, these institutions that support the many, they can have, hopefully, a retirement that involves dignity and they can have an ability to do things they so wanted to do as they work so hard over their lives. Getting that that personal connection and allowing for those newbies to understand that that’s the effect that you can have, an alternatives whether it’s private equity, real estate, infrastructure, private credit, hedge funds, all of these now, with the scale at which they’re operating at can allow for a great career. But my advice to them is always don’t forget your career is supporting other people. And that comes directly to how we intersect with wealth channel, it comes indirectly as a result of the institutions. And it’s such a privilege to do that. I didn’t envision when I grew up, as I mentioned, my first job, milking cows and back in a small town in the middle of Ireland that I would be one day leading an alternatives business within BlackRock. I see that as a great privilege. So, for those who are joining afresh, hopefully, try to remind them that it is for all of us and show up with empathy, dignity, compassion, and do the best you can, and hopefully, these people be sure will serve them well. RITHOLTZ: And our final question, what you know about the world of alternative investing today you wish you knew 25 years or so ago when you were first getting started? CONWAY: I think if we had invested much more heavily as an industry in technology, we would not be in the position we are today. And I say that, Barry, from a number of aspects. I mentioned in this shortfall of information our clients are dealing with today. They’re making choices to divest from one asset class to invest in another. To do that and do that effectively, they need great transparency, they needed real-time in many respects, it can’t be just a quarterly line basis. And if we had been better prepared as an industry to provide the technology and the data to help our clients really appreciate what it is they own, how we’re managing the assets on their behalf, I think they would be so much better served. I think we’re very fortunate at this firm to have built a business on the back of technology for albeit 30 plus years and were investing over $1 billion a year in technology as I’m sure you know. But we need to see more of that in the industry. So, the client experience is so important, stop, let’s demystify alternatives. It’s not that alternative. Let’s provide education and data and it’s become so large relative to other asset classes, the need to support, to educate, and transmit information, not data, information, so our client understand it, is at a paramount now. And I think it certainly as an industry, things have to change there. If I knew how big the growth would have been and how prominent these asset classes were becoming, I would oppose so much harder on that front 30 years ago. RITHOLTZ: Thank you, Edwin, for being so generous with your time. We’ve been speaking with Edwin Conway. He is the head of Blackrock Investor Alternatives Group. If you enjoy this conversation, please check out all of our prior discussions. You can find those at iTunes, Spotify, wherever you get your podcast at. We love your comments, feedback and suggestions. Write to us at MIB podcast@Bloomberg.net. You can sign up for my daily reads at ritholtz.com. Check out my weekly column at Bloomberg.com/opinion. Follow me on Twitter, @ritholtz. I would be remiss if I did not thank the crack team that helps put these conversations together each week. Mohammed ph is my audio engineer. Paris Wald is my producer, Michael Batnick is my head of research, Atika Valbrun is our project manager. I’m Barry Ritholtz, you’ve been listening to Masters in Business on Bloomberg Radio.   ~~~   The post Transcript: Edwin Conway appeared first on The Big Picture......»»

Category: blogSource: TheBigPictureNov 22nd, 2021

Improve Mental Health Next Year By Breaking 17 Financial Rules

If financial rules affect your mental health, they may need to be broken. However, this doesn’t mean making bad decisions just for the sake of having fun. Instead, this is giving yourself permission to take a break from all the strict must-dos and figure out a healthier alternative. Furthermore, depriving yourself entirely just to save […] If financial rules affect your mental health, they may need to be broken. However, this doesn’t mean making bad decisions just for the sake of having fun. Instead, this is giving yourself permission to take a break from all the strict must-dos and figure out a healthier alternative. Furthermore, depriving yourself entirely just to save money may be detrimental to your health. A little money spent on something you enjoy is an essential component of wellness. So, with that in mind, take advantage of these 17 financial rules to better care of yourself. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2022 hedge fund letters, conferences and more   Find A Qualified Financial Advisor Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals, get started now. Invest and save for retirement only after you are debt-free. It’s a generally good rule. But there are a few exceptions. To start with, personal finance isn’t all or nothing. Your financial plan needs to be balanced and tailored to your situation. For example, in cases where your debt has a low-interest rate, you might benefit from paying it back more slowly so you can save money first, such as in retirement. Also, you’ll have to invest less money overall if you invest early in life because compound interest is so valuable. Additionally, if your company matches 401(k) contributions, saving for retirement almost always makes sense — even if you’re in debt. While it’s tempting to skip 401(k) contributions when money’s tight, you’d be risking your future financial security if you did. Your tax refund can also go towards your debt if you contribute to a retirement plan. Finally, if you wait until you’re totally debt-free, you might never invest. There are a lot of reasons why people can’t get out of debt. Perhaps you’re low on income and have high expenses, or maybe you’ve lost your job or had big medical bills. In this case, it’s best to start saving now and balance debt payments with investments. Budget: Spend no more than half of your income on living expenses, keep discretionary items to 30%, and save the rest. Elizabeth Warren, then a Harvard professor, presented the 50/30/20 rule in her 2005 book, All Your Worth: The Ultimate Lifetime Money Plan. “Under this rule, you allot 50% of your take-home pay to “must haves,” 30% to “wants,” and 20% to savings,” explains Patricia Mertz Esswein for Kiplinger. Among the must-haves are housing, utilities, medical care, insurance, transportation, child care, and paying minimums on any legal obligations, such as student loans, child support, or anything else that’s a long-term commitment. Where does the 50% come from? “Warren says it’s sustainable, leaving you with plenty of money for the rest of your life, including fun and the future,” says Esswein. “When things go wrong, you may be able to cover the basics with an unemployment or disability check or, if you’re married, live on one paycheck for a while.” You are directly debited from your paycheck for the 20% for savings-not a last-minute decision. Put the funds to use building an emergency fund, paying off debt, and saving for retirement. As a result, you can avoid the cycle of binge shopping and crash-diet budgeting by leaving 30% of your budget for your wants (including charitable giving). This is the first category you cut if something goes wrong. The problem with this rule. According to credit expert Gerri Detweiler, 50/30/20 is a good guideline, but you need to be flexible as well. “If you live in a high-cost area, spending more than 50% of your paycheck on living expenses may be unavoidable, given the cost of housing, child care and health care,” adds Esswein. “Similarly, if staying within the threshold means buying a home that comes with a three-hour-a-day commute, you may choose to stretch beyond the limit to live closer to work and have more free time.” Detweiler recommends paying off the high-cost, unsecured debt within three years to avoid digging yourself deeper into debt. To meet the savings goal, she recommends putting a portion of the 20% designated for savings toward debt repayment and reducing living expenses and discretionary spending. “It’s also important to reevaluate your budget periodically as your life changes,” suggests Esswein. “For example, downsizing or moving to a lower-cost area could allow you to cut your living expenses below 50% and save more for retirement.” Cancel your Netflix, Hulu, and Spotify accounts to save money. What is the average monthly cost of all your subscriptions? That’s rhetorical. What’s more important than a dollar amount is how much joy you get from your subscriptions. Most likely, a lot. Think about the escape that Tiger King” provided us during the pandemic. What’s more watching nostalgia has psychological benefits. “When people are stressed, or anxious, or feeling out of control, nostalgia helps calm them down. It’s comforting. It’s analogous to a hug from your mom or dad or being cuddled,” Krystine Batcho, a licensed psychologist and a professor at Le Moyne College in Syracuse told TODAY. Rather than saying “no” when Netflix asks if you’re still watching, find other places to save money. For example, you could cancel that expensive gym membership you never use or buy used clothing instead of new. Another idea would be to compare car insurance rates using tools like EverQuote. Set aside 10% of your income for savings. Most financial advisors tell you to save 10% of your income for retirement. However, it might not be a wise choice. If people set aside 10% of their earnings, they will end up with too little investment for retirement. They are especially at risk if they don’t make much money or invest conservatively. Setting investment goals and determining how much you should invest each month is a better approach than following this blanket rule. Adhere to the 4% rule. Retirement planning experts often recommend a withdrawal rate of 4% as a guideline for retirees, clarifies Catherine Collins Alford in a previous Due article. The idea is that 4% of an individual’s savings should be withdrawn in the first year of retirement. After that, they can adjust this amount to account for inflation every year. Based on the assumption that the retiree will receive ongoing distributions from investments, the rule assumes the retiree has a diversified portfolio. Despite the fact that the 4% Rule may not work in all situations, retirees who wish to protect their savings can find it a useful tool. “Many people mistakenly think the 4% rule refers to withdrawing 4% of their retirement savings each year,” she explains. The reality is, however, quite different. “The rule refers to withdrawing a certain percentage of your total savings in the first year of retirement.” In subsequent years, this percentage would be adjusted for inflation. “Another common mistake is assuming that the rule applies to all retirees,” adds Catherine. “However, the rule is actually based on historical data and market returns.” As a result, not everyone may benefit from it. Pay off your mortgage before you save for retirement. Mortgages are usually the biggest debt you’ll ever have. Wouldn’t it be great if you could pay off that debt early? In some cases, paying off your mortgage slowly isn’t the best option, especially if you intend to move out soon. If you’re planning to stay in your home for five years or more after the debt’s retired, then that’s awesome. Otherwise, keep that money for yourself and invest it in your 401(k) or other growth assets. According to The Tax Cuts and Jobs Act, enacted in 2017, homeowners who purchased their homes after Dec. 15, 2017, can deduct mortgage interest paid on up to $750,000 in mortgage debt from their taxes. It’s even more important to invest that money somewhere else for those living in expensive housing markets. Rather than adding an extra mortgage payment, you should pay off other high-interest debt first, such as credit card debt. Identify your financial goals and prioritize them. For example, decide whether paying off the mortgage or investing for your retirement is more important for you, or if you would like to save for your children’s future. You can use that money in other ways if you can take advantage of the tax benefits or plan to move within five years. Save money by making all your food from scratch. You may think you’re saving money when you bake your parent’s birthday cake and make your own baby food. And, to be fair, this may be the case on occasion. You could be spending time with your partner or reading a good book instead of spending hours making pasta, potstickers, or croissants from scratch. Do you really think it’s worth saving a couple of bucks? Taking half an hour back every day is worth it to you, so pick up some pre-chopped onions and carrot puree in jars. I think you deserve it Also, you deserve a return on your investment. The free Fetch Rewards app, for instance, rewards you for shopping at the grocery store. Be sure to max out your 401(k). If you can, definitely max out your 401(k). However, following this rule might lead to less retirement money in the long run for some. Your 401(k) contribution should always be at least as high as your employer’s match to maximize your earnings. After all, it’s free money when your employer matches your contribution. You may want to consider putting money into another account, such as an IRA, once you’ve done that. In addition to 401(k)s, other retirement accounts may offer a broader range of investment options, such as IRAs. Instead of simply maxing out these workplace retirement plans, look into them when deciding where to invest your money. Only use credit cards for emergencies. You probably heard your parents warn you about credit card debt when you were a young adult. In fact, I was told that plastic was typically reserved for emergencies only. However, credit cards have become an effective and diverse tool in today’s world. With them, you can keep track of all your spending in one place, protect your personal information, and even earn cash-back rewards. As a result, it makes more financial sense to use a credit card instead of cash to make purchases. However, you shouldn’t swipe recklessly. In order to avoid paying interest charges on your credit card balance, set up a monthly payment from your checking account. Save money by buying in bulk. Some people might be surprised to find out that buying in bulk can be expensive. And more importantly, extremely wasteful when it comes to perishable items. In some cases, buying a jumbo size makes sense, but not always. Make sure you only buy things you will use or eat. As a result of scrimping and scrounging, making every meal becomes a chore that frustrates you over time. Additionally, buying large quantities of the stuff in advance can be very expensive. Overall, if your budget is tight, skip bulk purchases. Avoid wasting your money on non-essentials. It’s often said that spending money on nonessentials is a waste. So, it’s no surprise that most financial experts advise against it. Despite this, few people can stick to a spending plan that robs them of all their fun. As long as you spend responsibly, there’s no reason to deprive yourself. Decide which splurges are most important to you and enlist that as part of your budget rather than avoiding them. You should have six months’ worth of expenses in your emergency fund. While this is a sound rule of thumb, you might not find it suitable for your situation. In the event of an emergency, calculate what you would have to pay. Depending on various factors, such as the quality of your insurance and level of regular cash expenditures, you may determine whether you need more or less. Calculate your perfect investment allocation by subtracting your age from 100. To calculate how much of your portfolio should be stocks, subtract your age from 100. The rule says you should keep 75% of your portfolio in stocks and the rest in bonds and other relatively safer investments when you’re 25. If you’re 75, you should invest 25% of your money in stocks. As you age, you should gradually reduce your investment risk since you don’t have as much time to wait for the market to bounce back. Allocating investments based on 100-minus age is a good way to get started, but it’s not perfect. In part, this is due to Americans living longer and retiring later. Despite the drop in life expectancy following the pandemic, a baby born in the US in 2021 can expect to live to about 76 years old. As a result, retirement savings strategies should be adjusted in response to the need for a higher nest egg, the potential for the money to grow more, and the possibility of recovering from a market decline. Rather than focusing only on market performance, rebalance your investment portfolio annually. You should also consider your target retirement age, your plans for using the funds at retirement, and your risk tolerance. As a starting point for calculating your stock exposure, use 110 (or even 120) instead of 100 if you feel more comfortable with risk. It’s a waste of money to rent. Renting is often considered wasteful since you pay for a home without building equity. However, renting can be a better option in certain circumstances. If renting is cheaper than buying and you rent and invest the difference, this could be the case. You may want to rent if you’re not in a position to purchase a home or won’t be staying there for a long time. You are not throwing money away if you have to rent. Instead, you are using your money wisely to get housing in whatever way works for you. Get rid of all your unwanted housewares, clothes, and toys. It’s likely that you’ve acquired a lot of stuff during your lifetime. You’ve probably got piles of stuff you don’t need whenever you do a deep cleaning. Purging gives you a sense of relief, but selling it all to make money quickly ruins it. How do you begin? A garage sale, Poshmark, Facebook Marketplace, OfferUp, or Craigslist? If something isn’t truly valuable, you shouldn’t sell it. Right now, you might not need the stress of listing everything, arranging meetups, or figuring out shipping costs. So, if you want to adopt a more minimalist lifestyle, donate it. Donate it all to your local donation center, post it on your Facebook Buy Nothing group, or even hold a free yard sale. As an added perk, you’ll also get a tax credit. Another idea? Rent these items out to make some extra cash. For example, you can rent out your clothes on Style Lend or everything from your favorite camera to your favorite sports equipment on Fat Llama. Pay off your debt ASAP. There is a good chance you have heard you should repay your debt as soon as possible. However, depending on the type of debt you have, you might want to break this rule. Although you should pay down high-interest debt aggressively, you may not want to pay extra on certain low-interest loans like your mortgage. If you invest your money in other ways rather than paying off cheap debt early, you can usually get a better return. Get a side hustle. Many people don’t have the capacity or flexibility to hustle on the side. If you are already overburdened with work, adding a second job may exhaust you, outweighing the benefits. Aside from that, if you work all the time, how can you enjoy the money that you earn? The gig may also come with additional costs. Are you responsible for childcare or transportation? If you earn extra money, these things may significantly reduce it. FAQs What is a budget? Do I need one? Basically, a budget tells you how much you make versus how much you spend. It’s good to budget, but remember that budgets come in all shapes and sizes. Budgeting can be as strict or as lax as you want. For instance, automating a certain amount of your earnings into your savings account is technically a budget. You can also follow the rule of 50/20/30. In addition, you can have multiple savings and checking accounts based on your spending habits and goals. In general, budgeting tends to help people feel more in control of their finances. It’s also a good idea to revisit your budget every once or twice a year, especially if your income or expenses have changed significantly. Should I have an emergency fund? The purpose of an emergency fund is to help you in the event of an unexpected event. An emergency fund will help you through tough times, such as when you lose a job or receive a large bill. What is the recommended amount to save in an emergency fund? An emergency fund should cover your expenses for three to six months, according to some financial professionals, while others suggest covering expenses for a year. At the end of the day, it is up to you after you have taken care of the necessary expenses and what you are able to set aside. It is better to have some amount available when something unexpected occurs than to have none at all. Should I pay down my debts or save for retirement? In order to answer this question, you must consider your financial situation. It is possible to gain insight from your budget. However, it’s a good idea to start building retirement savings through your employer’s 401(k) if you can. Then, examine your budget to find areas where you can make some savings so you can also pay down your debt. For retirement savings and debt repayment, you may want to work with a financial professional. How much should I save each month for retirement? Financial professionals can help you create a plan that fits your budget here as well. Your savings strategy should take into account your current budget, retirement date, and retirement goals. You’ll want to think about retirement expenses, plus health insurance and long-term care costs as well. What is good debt? Depending on your situation, the answer varies. When it comes to assessing what debts are worth it, there are some general, personal questions you can ask yourself, but only you know what’s worth it. For example, student loan debt should propel you into a career that pays more money. However, racking up $20,000 in personal credit card debt for jet skis won’t. Article by Deanna Ritchie, Due About the Author Deanna Ritchie is a financial editor at Due. She has a degree in English Literature. She has written 1000+ articles on getting out of debt and mastering your finances. She has edited over 40,000 articles in her life. She has a passion for helping writers inspire others through their words. Deanna has also been an editor at Entrepreneur Magazine and ReadWrite......»»

Category: blogSource: valuewalkDec 4th, 2022

Roubini Warns "The Mother Of All Economic Crises Looms"

Roubini Warns "The Mother Of All Economic Crises Looms" Authored by Nouriel Roubini via Project Syndicate, After years of ultra-loose fiscal, monetary, and credit policies and the onset of major negative supply shocks, stagflationary pressures are now putting the squeeze on a massive mountain of public- and private-sector debt. The mother of all economic crises looms, and there will be little that policymakers can do about it. The world economy is lurching toward an unprecedented confluence of economic, financial, and debt crises, following the explosion of deficits, borrowing, and leverage in recent decades. In the private sector, the mountain of debt includes that of households (such as mortgages, credit cards, auto loans, student loans, personal loans), businesses and corporations (bank loans, bond debt, and private debt), and the financial sector (liabilities of bank and nonbank institutions). In the public sector, it includes central, provincial, and local government bonds and other formal liabilities, as well as implicit debts such as unfunded liabilities from pay-as-you-go pension schemes and health-care systems – all of which will continue to grow as societies age. Just looking at explicit debts, the figures are staggering. Globally, total private- and public-sector debt as a share of GDP rose from 200% in 1999 to 350% in 2021. The ratio is now 420% across advanced economies, and 330% in China. In the United States, it is 420%, which is higher than during the Great Depression and after World War II. Of course, debt can boost economic activity if borrowers invest in new capital (machinery, homes, public infrastructure) that yields returns higher than the cost of borrowing. But much borrowing goes simply to finance consumption spending above one’s income on a persistent basis – and that is a recipe for bankruptcy. Moreover, investments in “capital” can also be risky, whether the borrower is a household buying a home at an artificially inflated price, a corporation seeking to expand too quickly regardless of returns, or a government that is spending the money on “white elephants” (extravagant but useless infrastructure projects). Such over-borrowing has been going on for decades, for various reasons. The democratization of finance has allowed income-strapped households to finance consumption with debt. Center-right governments have persistently cut taxes without also cutting spending, while center-left governments have spent generously on social programs that aren’t fully funded with sufficient higher taxes. And tax policies that favor debt over equity, abetted by central banks’ ultra-loose monetary and credit policies, has fueled a spike in borrowing in both the private and public sectors. Years of quantitative easing (QE) and credit easing kept borrowing costs near zero, and in some cases even negative (as in Europe and Japan until recently). By 2020, negative-yielding dollar-equivalent public debt was $17 trillion, and in some Nordic countries, even mortgages had negative nominal interest rates. The explosion of unsustainable debt ratios implied that many borrowers – households, corporations, banks, shadow banks, governments, and even entire countries – were insolvent “zombies” that were being propped up by low interest rates (which kept their debt-servicing costs manageable). During both the 2008 global financial crisis and the COVID-19 crisis, many insolvent agents that would have gone bankrupt were rescued by zero- or negative-interest-rate policies, QE, and outright fiscal bailouts. But now, inflation – fed by the same ultra-loose fiscal, monetary, and credit policies – has ended this financial Dawn of the Dead. With central banks forced to increase interest rates in an effort to restore price stability, zombies are experiencing sharp increases in their debt-servicing costs. For many, this represents a triple whammy, because inflation is also eroding real household income and reducing the value of household assets, such as homes and stocks. The same goes for fragile and over-leveraged corporations, financial institutions, and governments: they face sharply rising borrowing costs, falling incomes and revenues, and declining asset values all at the same time. Worse, these developments are coinciding with the return of stagflation (high inflation alongside weak growth). The last time advanced economies experienced such conditions was in the 1970s. But at least back then, debt ratios were very low. Today, we are facing the worst aspects of the 1970s (stagflationary shocks) alongside the worst aspects of the global financial crisis. And this time, we cannot simply cut interest rates to stimulate demand. After all, the global economy is being battered by persistent short- and medium-term negative supply shocks that are reducing growth and increasing prices and production costs. These include the pandemic’s disruptions to the supply of labor and goods; the impact of Russia’s war in Ukraine on commodity prices; China’s increasingly disastrous zero-COVID policy; and a dozen other medium-term shocks – from climate change to geopolitical developments – that will create additional stagflationary pressures. Unlike in the 2008 financial crisis and the early months of COVID-19, simply bailing out private and public agents with loose macro policies would pour more gasoline on the inflationary fire. That means there will be a hard landing – a deep, protracted recession – on top of a severe financial crisis. As asset bubbles burst, debt-servicing ratios spike, and inflation-adjusted incomes fall across households, corporations, and governments, the economic crisis and the financial crash will feed on each other. To be sure, advanced economies that borrow in their own currency can use a bout of unexpected inflation to reduce the real value of some nominal long-term fixed-rate debt. With governments unwilling to raise taxes or cut spending to reduce their deficits, central-bank deficit monetization will once again be seen as the path of least resistance. But you cannot fool all of the people all of the time. Once the inflation genie gets out of the bottle – which is what will happen when central banks abandon the fight in the face of the looming economic and financial crash – nominal and real borrowing costs will surge. The mother of all stagflationary debt crises can be postponed, not avoided. Tyler Durden Sat, 12/03/2022 - 10:30.....»»

Category: blogSource: zerohedgeDec 3rd, 2022

Personal Finance Daily: Here’s how to rent a sustainable Christmas tree for the greenest holiday ever and what retail and warehousing jobs falling in November reveals about the typical holiday shopper

Friday's top personal finance stories......»»

Category: topSource: marketwatchDec 2nd, 2022

"Donald Trump knew exactly what was going on" in Trump Org. tax fraud, Manhattan prosecutor says in summations

In blistering closings in the Trump Org. tax-fraud trial, a Manhattan prosecutor told jurors that Trump knew his executives ran a tax-fraud scheme. Former President Donald Trump, left, and the exterior of Trump Tower, where the Trump Organization is headquartered.Justin Sullivan/Getty Images, left. Nicolas Economou/Getty Images, right. Closings in the Trump Organization's Manhattan tax-fraud trial will conclude on Friday. Late Thursday, a prosecutor told jurors Trump "knew exactly" how his top executives dodged taxes.  Trump's real-estate empire is trying to beat a tax-fraud rap by arguing Trump was in the dark. "Donald Trump knew exactly what was going on with his top executives," a Manhattan prosecutor told jurors in blistering closing arguments Thursday, as the Trump Organization tax fraud trial neared its homestretch.The prosecutor's bombshell assertion — yet to be elaborated on — directly opposes defense claims that Trump was in the dark about a personal tax-dodge scheme enjoyed for more than a decade by top executives working just down the hall from his desk on the 26th floor of Trump Tower.The "Trump was in on it" pronouncement, made in summations by prosecutor Joshua Steinglass, prompted strong opposition from defense lawyers after jurors left the courtroom for the day.One defense lawyer, Alan Futerfas, objected that Steinglass violated an agreement not to speculate to jurors about what Trump knew or didn't know."You all shouldn't have opened the door" during your own summations earlier Thursday, Steinglass shot back to the defense table, "by arguing Donald Trump didn't know" about the scheme."It was your defense that invoked the name," the trial judge agreed, allowing Steinglass to continue the "Trump was in on it" line of argument when his summations conclude Friday.  "It's only fair," the judge, state Supreme Court Justice Juan Merchan, told the defense team, "your having done that, for Mr. Steinglass to do that as well."  Two subsidiaries of Trump's real-estate and golf-resort empire — the Trump Corporation and the Trump Payroll Corporation, both doing business as the Trump Organization — have been on trial for six weeks in New York state Supreme Court in Manhattan.Prosecutors say the company must be held liable for a 13-year tax-dodge scheme admittedly masterminded by Trump's then-finance chief Allen Weisselberg.The scheme let Weisselberg and other second-tier executives pocket hundreds of thousands of dollars in annual salary in the form of tax-free perks, including free cars and free Trump-branded apartments.The perks were logged as compensation in internal corporate records, both Weisselberg and Trump's top payroll executive, Jeffrey McConney, told jurors as part of the prosecution case. But the perks were never claimed on company W-2 wage and tax statements, the two executives admitted.But for the two Trump Organization subsidiaries to be criminally liable for their executives' actions, it is not enough that prosecutors prove that Weisselberg and/or McConney lined their own pockets and left it at that.Prosecutors must additionally prove that the executives acted, at least to some degree, "in behalf of" the company, meaning they intended that the company enjoy some benefit from the scheme, a make-or-break requirement under New York's corporate liability law.Defense lawyers spent much of their summations earlier Thursday reminding jurors that Weisselberg and McConney, Trump insiders who are the prosecution's star witnesses, both denied on the witness stand that they had any intent to benefit the company. They were only in it for themselves, the two top money men had testified repeatedly.Stranded without direct evidence of this all-important intent to benefit the company, Steinglass, the prosecutor, must convince jurors of a circumstantial case for intent when he continues his summations on Friday.Until then, jurors were left with just the first hour of Steinglass's promised five hours of closing arguments, time the prosecutor spent almost entirely trash-talking the credibility of Weisselberg and McConney, his own side's star witnesses.Steinglass especially mocked the defense narrative that Weisselberg feels great shame over keeping the Trump family in the dark about his tax-fraud scheme. Weisselberg nearly burst into tears on the witness stand in mid-November, recounting how he'd "betrayed" the Trump family.Despite this so-called betrayal, Trump is continuing to pay Weisselberg $1.1 million this year, even as they've placed him on leave — rewarding him with "a raise and a no-show job," Steinglass cracked. The defense, meanwhile, has argued that Weisselberg's continued salary has nothing to do with how helpful the ex-CFO's testimony has been, especially the parts where he repeatedly denied any intent to benefit the company.No, one defense lawyer told jurors six weeks ago back in opening statements, Trump is paying his betrayer, Weisselberg, a seven-figure salary because the ex-CFO, who started working for family patriarch Fred Trump in the early 1970s, is family — a "prodigal son.""The first problem of the 'prodigal son' narrative," Steinglass told jurors Thursday, "is he didn't steal from the company. He stole with the company. The Trump Organization isn't the victim. The tax authorities are the victims," the prosecutor said."The scheme to defraud wasn't done as a betrayal of the Trump Corporation," Steinglass added. "It was done in cahoots with the Trump Corporation." Jurors may begin deliberations in the case as early as Friday afternoon. The two Trump Organization subsidiaries face a maximum $1.6 million in penalties if convicted of conspiracy, scheme to defraud, and tax fraud.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderDec 1st, 2022

25 Ways To Improve Your Financial Situation In 1 Hour

Money is a complex topic, with thousands of books, websites, and podcasts dedicated to covering some aspect of the subject. It can also evoke a strong emotional response. Feelings of embarrassment, shame, frustration, anger, and more can keep people from addressing their financial situation. One solution is to carve up financial strategies into small, simple […] Money is a complex topic, with thousands of books, websites, and podcasts dedicated to covering some aspect of the subject. It can also evoke a strong emotional response. Feelings of embarrassment, shame, frustration, anger, and more can keep people from addressing their financial situation. One solution is to carve up financial strategies into small, simple tasks. The following 25 tasks can all be implemented and completed within an hour, which means they’re non-threatening and easy to do. Crossing a few off your list will help you feel more confident and save some money. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2022 hedge fund letters, conferences and more   Find A Qualified Financial Advisor Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals, get started now. Create a simple budget A simple budget can help you identify not only how you currently spend your money but also ways in which you can change those spending habits and practices for better financial results. Budgeting your money and allocating funds to existing expenses helps you keep more of your money in your pocket or account. Adhering to that budget helps ensure you don’t run out of money by the end of the week. Download a budget app Given the practicalities of modern daily life, it’s usually more convenient to use an app to create, maintain, check, and adhere to your budget, as opposed to pencil and paper. Some of the top-rated budgeting apps for Android and iOS devices include Mint, YNAB (You Need a Budget), EveryDollar, and PocketGuard. Still, you should definitely take a look at independent reviews with app screenshots to find the one that best meets your needs and preferences. Review your budget Budgets should be flexible, living documents that change as your life and work evolve. Take some time to review your budget and update it to make sure it still aligns with your goals and to ensure you’re living within your means. Negotiate a higher salary How long has it been since you got a raise at work? Resolve to negotiate for higher pay within the next 30 days. Start by creating a short script you can use to begin negotiations with your current employer. List out your accomplishments and supporting data, and practice delivering that request in a confident, straightforward manner. Create or update your estate plan Nobody wants to think about death and dying, but it’s a part of life. Don’t leave your family and loved ones in a precarious financial position. Ensure your wishes are carried out by making sure you’ve got an updated will and estate plan. If you need some help, make an appointment with a local trusts and estates lawyer who can talk you through your options and make sure your documents comply with applicable laws in your state. Learn something new Invest in yourself by taking a class or reading a book on a personal finance topic. What don’t you know? What are you curious about? If you’re not sure what the stock market is, or if you want to learn more about cryptocurrency and blockchain, find a great resource to teach you. Start an emergency fund Ideally, we should all have anywhere from three to six months’ worth of living expenses, but you can start more simply. Open a new account and put a few dollars in, then make a plan to add to it over time to cover unexpected costs. Resolve not to touch it outside a true emergency, such as an unanticipated medical expense or car repair bill that would take more money than you currently have on hand. Automate your finances You may have already enrolled in direct deposit. If not, contact your employer’s finance or HR department to make that change. Then talk to your bank about ways you can automate a contribution to your savings account from each paycheck. You can also look for bills that will let you sign up for automatic monthly payments. That way, you’ll know your financial situation well and won’t have to wonder if you’re late with a bill. Save on your credit card payments Making credit card adjustments can be an easy way to improve your financial situation. Credit cards are notorious for high-interest rates, but even if you think you’re getting a good deal, it pays to double-check. Call your card issuer and ask for a lower interest rate on your account, or shop around for better deals. That way, you’ll be paying less each month for your purchases. Create a savings plan If you’re not already regularly putting some money aside on a regular basis, give some thought to doing this now. Look at your budget and figure out how much you can afford to put aside. Then open up a savings account at your bank and pledge to put aside a certain percentage of every paycheck (or client payment, if you’re a freelancer) into that account. Review your insurance policies It’s easy over the years to get talked into buying too much insurance, but it’s also equally simple to not carry enough insurance. For home, auto, health, and other policies check your coverage and usage and make sure they’re appropriate for your circumstances. Read the fine print. You might also want to look for less expensive alternatives. Cancel subscriptions A quick and easy way to improve your financial situation is to eliminate subscriptions. Netflix, Hulu, subscription boxes, personal care membership programs, and more can easily put a sizable dent in your disposable income. The individual payments seem so inconsequential and small, but together they can really add up. Look through your subscriptions and memberships, then cancel any that you no longer use or that you can live without. Look for better loans Whether it’s a mortgage, car loan, personal loan, or another type of loan, maybe you can do better. Take some time to research your options and shop around for lower rates. If you have a solid credit rating and payment history, you might be able to qualify for a much better deal. Renegotiate your cell plan Cell phone plans can quickly become bloated with unanticipated fees and extras. Call your mobile carrier and attempt to negotiate a better deal on your cell phone plan. If that doesn’t work, shop for a better deal from a different carrier, then port your existing number over to the new account. Sell your stuff Almost everyone has unused clothing, toys, books, and more, taking up space. Why not list these items for sale on an auction site? Alternatively, set them aside and pick a date for a garage sale. Place an ad for a roommate Whether you’re renting or purchasing your home, housing expenses likely take up a large percentage of your monthly income. So it stands to reason that anything that can reduce your mortgage or rent payment each month would save you a substantial amount of money each year. With rents rising across the nation, lots of folks are looking for more affordable accommodations. If you have an extra bedroom or another room that can be turned into a habitable living space, why not look for someone who needs a place to live and who can pay a reasonable amount of rent? Swap out your light bulbs Utility payments can easily impact your financial situation. And with inflation driving up costs across almost all financial sectors, including electricity, it’s smart to think of ways to reduce your monthly bill. You can always turn off lights in rooms you’re not occupying and unplug appliances and products when not in use. Additionally, if you’re using standard light bulbs, replace them with LED bulbs to save on your electricity bill. LED light bulbs are about 75% more efficient, and they last up to 25 times longer than standard bulbs. Start a side gig What specific skills have you accumulated over your life? Chances are, at least one of them could earn you some extra money and boost your financial situation. Freelance content writing, social media management, graphics, podcast editing, affiliate marketing, and more can all be the basis for your side hustle. Check other websites and digital opportunities to create additional revenue streams if you’re not interested in formally launching a full-time business. Trim your grocery bill Inflation is making almost everything we buy more expensive. Look at your usual weekly shopping list and then try to identify places where you can choose more economical options. Consider using these tactics: Shop for store brands and other less expensive options. Choose less expensive cuts of meat. Plan vegetarian or vegan meals a few nights a week to save on meat. Resolve to leave less leftover food and use everything you buy to cut down on waste. Pay attention to serving sizes. Clip coupons. Look for help with overspending If overspending is a problem for you, the first step in conquering it is to admit the problem exists. The next step is to look for resources that can help you get your compulsive shopping under control. There are books available, as well as mental health counseling services through sites like Better Help. Bump up your retirement savings to improve your long-term financial situation Arrange with your employer’s benefits manager to increase your retirement savings contributions by 1%. If you don’t already have a retirement savings vehicle, begin the process of starting one by researching your options. If you’re self-employed, look into options like the SEP IRA and the solo 401(k). Open a 529 plan for your child If you have children, consider opening a 529 plan to help fund college or other educational expenses. It’s a great savings vehicle for families as it offers tax-free growth and withdrawals, as long as the withdrawals are for qualifying educational expenses. Check your credit reports Every US citizen gets one free copy of their credit reports from each of the three major reporting agencies—TransUnion, Experian, and Equifax. Don’t be swayed by commercial services and online ads; make sure you use the official US website, AnnualCreditReport.com. Dispute credit report errors Creditors make mistakes sometimes, and when those mistakes find their way onto your credit report, the negative impacts can be serious and substantial. That’s why it’s so important to carefully check your reports on a regular basis. If you find an error, dispute it with the credit reporting agency. Look for unclaimed money Old tax refunds, pension accounts, life insurance proceeds, and more can all mean free money for you. Whether due to a move, a name change, or some other life change (or just a simple mistake on the part of the issuer), you may have unclaimed funds out there waiting for you. Small Steps Can Yield Big Improvements Improving your finances doesn’t need to be a huge, scary monster lurking in your closet. Choosing simple, straightforward tasks that you can complete in an hour or so will help you achieve a sense of accomplishment and control over your finances. That can, in turn, help fuel other financial improvement strategies in the future. Article by John Boitnott, Due About the Author John Boitnott graduated from UC Santa Barbara with a Masters Degree in Education. He worked for 14 years as a broadcast news writer for ABC, NBC, and CBS News where he covered finance, business and real estate. He covered financial news for SAP for four years. Boitnott is now working as a columnist for The Motley Fool where he covers personal financial and investing strategies......»»

Category: blogSource: valuewalkDec 1st, 2022

Trump Org defense closings feature a clueless Donald Trump and a big little loophole

The Trump Org. hopes to beat a corporate tax-fraud rap by invoking a three-word legal loophole and convincing jurors the Trump family knew nothing. Donald Trump speaking at the Minden Tahoe Airport in Minden, Nevada, on October 8, 2022, left, and the exterior of Trump Tower, home of the Trump Organization headquarters, in July of 2021, right.José Luis Villegas/AP, left; Ted Shaffrey/AP, right. Trump Org. tax-fraud defense closings happened Thursday in a Manhattan criminal courtroom. The Trump family was in the dark about rampant executive tax fraud, the defense says the trial showed. The defense is also leaning on a three-word loophole that limits company liability for executives' crimes. Donald Trump, Donald Trump Jr., and Eric Trump — the top-tier leadership of the Trump Organization — had no idea that a decade-long, personal tax-fraud scheme was being run by finance executives just one rung down the company ladder, defense lawyers told a Manhattan jury in closing arguments Thursday."Donald Trump was running a multi-billion-dollar corporate entity," one lawyer, Susan Necheles, told jurors of the Trump Organization's far-too-busy-for-fraud owner."He had a long running television show. He was building buildings all over the place," she continued. "He had casinos." So Trump delegated "all of the accounting functions" of his real-estate and golf-resort empire to his trusted chief financial officer, Allen Weisselberg, the tax-dodge scheme's admitted mastermind, she argued.But Weisselberg, she told jurors, hid his self-serving crimes from the Trumps, a family he'd worked for for more than 30 years."No member of the Trump family knew about his ongoing efforts to evade taxes," Necheles argued of the scheme, which ran from 2005 until 2018."He was ashamed of what he was doing," she added of the now ex-CFO, a star prosecution witness whose testimony may wind up helping his employers more than their prosecutors. Weisselberg remains on the Trump payroll, making $1.15 million this year on paid leave."You saw him on the witness stand almost crying" over betraying the Trump family, Necheles told jurors of the former finance chief, repeating for emphasis, "He was ashamed.""Weisselberg did it for Weisselberg," another defense lawyer, Michael van der Veen, said in beginning a separate summation.McConney, like Weisselberg, also remains on the Trump payroll; he testified he's earning $450,000 this year.Both McConney and Weisselberg also testified they met with defense lawyers in preparing for their turns on the witness stand. Jurors could find the pair's big Trump salaries and collaboration with defense lawyers added a pro-Trump slant to their testimony.But both top money men had strong incentive to tell jurors the truth, the defense argued, because each had a figurative prosecutorial gun to his head — or, as van der Veen said of Weisselberg, "the prosecutors had him by the balls."McConney had to testify truthfully or risk losing the immunity from prosecution he won by cooperating with a Manhattan grand jury.Weisselberg's August guilty plea requires his truthful trial testimony as a condition of his serving only 100 days jail for his admitted tax frauds. "You know he's telling the truth" about never intending to benefit the company, "even if it's not what the prosecutors want to hear," van der Veer told jurors."The pressure of going to jail is like a truth serum," he added. Two subsidiaries — the Trump Corporation and the Trump Payroll Corporation, both doing business as the Trump Organization — have been on trial in New York Supreme Court since late October.No Trumps, and no other individuals — only the two Trump Org subsidiaries — are on trial, fighting a possible $1.6 million in penalties and the black eye of a felony conviction.Prosecutors say the two subsidiaries must be held responsible for crimes admittedly committed by Weisselberg and the organization's top payroll executive, Jeffrey McConney: conspiracy, scheme to defraud, and tax fraud. But the defense labored hard on Thursday, as they have throughout the trial, to deflect all blame away from the Trump family, though claiming ignorance as a defense may prove tricky given the amount of Trump-signed evidence in the case.Prosecutors are certain to point out in their own closings later Thursday that the signatures of Donald Trump, Eric Trump, and Donald Trump Jr., are on a decade's worth of memos, leases, and invoices at the center of the scheme, showing their approval for a bounty of tax-free personal cars, apartments, and even private-school tuition. The defense has tried to argue that Trump was just being generous, not condoning a tax-dodge scheme, when he approved executive perks and has also worked throughout the trial to throw out three little words as a giant barrier against the company's guilt.These three words "in behalf of" came roaring to the forefront on Thursday since an executive's crimes must be committed "in behalf of" a company for that company to be legally liable. At one point Thursday morning they literally loomed over the proceeding on two overhead projectors, giant displays showing the wording that the presiding judge, state Supreme Court Justice Juan Merchan, has said he will use to instruct jurors on corporate liability law.Mechan has said he will interpret acting "in behalf of" to mean acting with at least some intent to benefit the company."I ask you to remember that language," Necheles told the jury, reading it aloud. "And what does that phrase 'in behalf of mean?" she continued. "It's not 'on behalf of.' It's 'in behalf.' And that peculiar phrase has a very particular meaning," she said.Prosecutors, she said, must prove beyond a reasonable doubt that Weisselberg and/or McConney intended to help the company, not just their own bottom lines, through the tax scheme.That's something, however, both top money men have strenuously denied. "The prosecution has been trying to convince you that Mr. Weisselberg's actions were done 'in behalf of' the company," Necheles said. "But Mr. Weisselberg has told you repeatedly. They were done solely to benefit himself." Necheles and van der Veen also used the overhead screen to show jurors repeated points in the trial transcript where Weisselberg and McConney said their only concern in running the tax-dodge scheme was to line their own pockets."That," Necheles said, "is the core of the case."Read the original article on Business Insider.....»»

Category: topSource: businessinsiderDec 1st, 2022

Personal Finance Daily: Turns out a real estate guru peddling the ‘deal of a lifetime’ was really a fraud and hurricane season’s late start made for an average year but a big insurance bill

Thursday's top personal finance stories......»»

Category: topSource: marketwatchDec 1st, 2022

6 of the 10 worst cities in the world for expats to live in are in Europe — see the list

While Valencia, Spain, was named the best city for expats, Johannesburg in South Africa was voted the worst city for expat living. Rome, Italy.querbeet/Getty Images Networking site InterNations released its annual ranking of the best and worst cities for expats. More than half of the 10 worst cities for expats in the world are in Europe. South Africa's Johannesburg was voted the worst city overall for expats. Networking site InterNations has released its latest ranking of best and worst cities for expats, and Europe accounts for some of the best cities — and some of the worst.Сarrer de les Barques, Valencia, Spain.Alexander Spatari/Getty ImagesInterNations surveyed almost 12,000 expats living in 181 countries from February 1 to February 28. Expats surveyed included foreign assignees, international hires, and individuals who relocated to other countries to look for work. The survey was first conducted in 2014. This year, the InterNations survey ranked 52 destinations around the world, which were evaluated on overall livability, as well as quality of life, ease of settling in, working abroad, personal finance, and expat essentials.Valencia, a port city in Spain, was voted the top city for expat living. InterNations said what stood out to the expats surveyed was the affordability of public transportation and how safe they felt in the city.However, six out of 10 of the lowest-ranked cities were also in Europe. There were also two cities in Asia, one in North America, and one in Africa. Keep reading to see the list of the worst cities in the world for expats to live in. Entrants are ranked in descending order.10. Rome, ItalyRome, Italy.querbeet/Getty ImagesRome, the capital of Italy, is one of two Italian cities to make InterNations' worst-rated list.According to InterNations' survey, 73% of respondents said dealing with local authorities is difficult, and 50% of those surveyed said they perceive the online administrative and government services negatively.Over 30% also said they are concerned with the Italian economy. "While the red tape in Italy can be aggravating, the government bureaucracy does have some advantages," InterNations wrote in its city guide. "Most expats living in Rome with a valid visa, residence permit, and/or residence certificate are entitled to the same public healthcare as Italian citizens."9. Tokyo, JapanJackyenjoyphotography/ Getty ImagesTokyo, the capital of Japan, is one of the most popular expat destinations. But some expats feel the city isn't the best when it comes to working conditions. Of those surveyed, 25% indicated they were unsatisfied with their working hours; 30% said they were unhappy with the work-life balance; and over 60% said the local business culture stifled creativity.One US expat told InterNations that Japan's work culture was "a bit closed off to new ideas." Another expat from Indonesia said the local work ethic was "very uptight and inflexible."8. Vancouver, CanadaVancouver, British Columbia, Canadamffoto/ShutterstockVancouver, one of Canada's biggest cities, is the only North American city on the worst-rated list.According to InterNations' survey, 69% of expats said the cost of living was too high, and more than 50% said their household income was not enough to live comfortably. Almost 40% are unhappy with their social life in the city. "It can be hard to enter a social circle which is already established," one expat from New Zealand told InterNations.7. Milan, ItalyMilan Piazza Del Duomo.Comezora/Getty ImagesMilan is the second Italian city on the worst-rated list.According to InterNations' survey, more than 50% of expats said they were unhappy with the city's air quality and 66% of respondents said they find the local bureaucracy difficult to deal with.Around 30% of expats also indicated that they feel that they are underpaid for their work. According to the data site Salary Expert, the average annual salary in Milan is 41,593 euros, or around $43,000."Finding a job is so hard, and the salaries are so low," an Iranian expat told InterNations.6. Hamburg, GermanyStuart Franklin/Getty ImagesHamburg, a city in northern Germany, is another European city making the worst-rated list — and it might be because expats have a difficult time fitting in.Some 81% of survey respondents indicated that they find hard to make friends in the city. "It takes very long to be accepted as a 'friend' of any order," one Australian expat told InterNations.5. Hong KongVictoria harbour, Hong KongFei Yang/Getty ImagesHong Kong, a special autonomous region in southeastern China, is one of two Asian cities in the bottom 10.Some 46% of respondents said the city offers no room for creativity in the local business culture, and more than half said they felt stifled — 56% indicated they could not openly express their opinions.There's also the matter of money: 68% of expats surveyed indicated that the cost of living is too high. An apartment that's smaller than 200 square feet costs around 25,512 Hong Kong dollars, or $3,270 to rent for a month, according to the South China Morning Post, citing Midland Realty's data."Accommodation, healthcare, and international schooling­ — all contribute to the elevated costs," InterNations wrote in its city guide. "It is considered to be one of the most expensive places for expatriates to live in," it added.4. Istanbul, TurkeyIstanbul, Turkey.Getty ImagesIstanbul, the capital city of Turkey, is just one of several European cities rated badly by expats.According to InterNations' survey, some 57% indicated that they perceived the Turkish economy negatively, and only 45% believe they are paid fair salaries. "Finding a job here is very difficult," one Cameroonian survey respondent told InterNations, adding that the work conditions are poor especially when the pay is put into consideration.3. Paris, FranceThe Paris skyline at sunset.Getty ImagesThe majority of expats surveyed indicated that it's simply too expensive to live in the capital of France: Some 62% said the cost of living is too high. In addition, 58% of respondents indicated they find it hard to make local friends, and some 23% feel unsafe in the city. On the upside, expats feel that it's a great city for experience culture and nightlife."Life in Paris is romantic, and exciting, but it is also expensive," InterNations wrote in its city guide. "Daily amenities, and housing carry a heavy price tag in France's most populous city."2. Frankfurt, GermanyDavid C Tomlinson/ Getty ImagesFrankfurt, a major financial hub in Germany, was ranked the second-worst city for expat living.Some 70% of expats surveyed indicated that expensive housing and high cost of living were some of the factors that makes living in Frankfurt a bad choice. According to the survey, the city is also the worst when it comes to affordable public transportation, ranking last among 50 destinations. A public transportation ticket that's valid for a month costs 97.10 euros, or around $138, according to RMV, Germany's transport association.1. Johannesburg, South AfricaCityscape of Johannesburg, South Africa on February 18, 2010.ReutersAccording to InterNations' survey, Johannesburg, the largest city in South Africa, is the worst city for expats.Some 25% of respondents said they were unhappy with how unaffordable living the city is, and 39% indicated public transportation was an issue.Safety appeared to be an issue for expats too — 62% of those surveyed said they felt unsafe. "Johannesburg can be a dangerous place, even by South African standards," InterNations wrote on its expat guide to the city. "You will surely not be under constant threat at all times, but you should be aware of the potential dangers," the guide read.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 30th, 2022

How Inflation Changes Culture

How Inflation Changes Culture Authored by Jeffrey Tucker via DailyReckoning.com, The midterm elections are over (no Red Wave), but nothing has changed. In fact, the Biden regime will probably become even more emboldened to pursue destructive economic policies because it will interpret the lack of a Red Wave as some kind of mandate. Every day seems to be a day of spin, with every regime apologist assuring the public that inflation is getting better. Just look at the wonderful trend line! They point to the latest inflation numbers, which were down a bit from the month prior. The regime insists that yes, inflation will vex us for a bit more time but will settle down in a few months. Plus, the president is working to fix this! And we know the American people are on board with him since no Red Wave materialized. But in the footnotes, you’ll find the truth: it was a tiny drop and mostly for technical reasons and the main reason for the drop has already disappeared from the price trends. Has any political propaganda on this topic ever been this ineffective? It’s truly a joke. Where’s the Relief Coming From? The producer price index that came out recently paints a clearer picture. It’s grim. It reveals no softening at all. In fact, it shows that there are plenty of coming price increases. Here is the index by commodities from 2013 to the present. Remember how last year many people finally came to the conclusion that we had to learn to live with COVID? That was a smart choice because there was no way that the China-style suppression method could work. Well, here we are now with a preventable inflation pandemic and the realization that we have to learn to live with inflation. Soon we’ll realize that we have to live with recession at the same time. But what does this mean? The impact will be felt not just in terms of economics but in culture. Inflation causes a society-wide shortening of time horizons. True Prosperity Let’s review some basics. All societies are born desperately poor, fated to live off foraging and just getting by. Prosperity is built through the construction of capital, which is the institution that embodies forward thinking. To make capital requires the deferral of consumption: you have to give up some today in order to make tools that enable more consumption tomorrow. This means discipline and a future orientation. And it means, above all, savings that can be invested in productive projects. Only through that path can societies grow rich. A key component of this concerns the stability of the medium of exchange. And not just stability: a currency that rises in value over time incentivizes saving and thus investing for the long term. The late 19th century provided a good example of this. Under the gold standard, money grew more valuable over time, thus rewarding long-term thinking and instilling that outlook in the culture at large. Live for Today Inflation has the opposite effect. It punishes saving. It forces a penalty on economic behavior that is future-oriented. That means also discouraging investment in long-term projects, which is the whole key to building a complex division of labor and causing wealth to emerge from the muck of the state of nature. Every bit of inflation trims back that future orientation. Hyperinflation utterly wrecks it. Living for the day becomes the theme. Taking what you can get now is the method and the theme. Grasping and spending. You might as well because the money is only going down in value and goods are in ever shorter supply. Better to live hard and short and forget the future. Go into debt if possible. Let the devaluation itself pay the price. The Seeds of Destruction Once this attitude becomes instilled in a prosperous society, what we call civilization gradually devolves. If inflation persists, this kind of short-term thinking can wreck everything. This is why inflation is not just about rising prices. It’s about declining prosperity, the punishing of thrift, the discouragement of financial responsibility, and a culture that gradually falls apart. Another factor in reducing time horizons is legal instability. This was my first concern when the lockdowns began. Why would anyone start a business if governments can just shut it down on a whim? Why plan for the future when that future can be wrecked by the stroke of a pen? Many people had assumed that this new path would be short-lived. Surely the politicians would wise up and stop the madness. Surely! Tragically, it got worse and worse. The spending and printing began and ramped up over time. It was a perfect storm of sheer madness, and now we are paying the highest possible price. The Hinge of History We need to speak frankly about what’s happening to the global economy. It’s not just about supply chain breakages. Those can be repaired. It’s not just about inflation affecting every country. We are living amidst a fundamental upheaval in the whole world. The most significant single danger to global prosperity now comes in the form of a devastating and deeply tragic wreckage of the country that was set to lead the world in finance and technology: China. The WSJ summarizes the current pain: China in 2021 accounted for 18.1% of global gross domestic product, according to International Monetary Fund data, behind the U.S. at 23.9% but ahead of the 27 members of the European Union at 17.8%. It accounts for almost a third of global manufacturing output, according to United Nations data from 2020. China’s economy expanded modestly at the beginning of the year but data for March and April point to a sharp slowdown. The trouble there traces to the top. When Xi Jinping locked down Wuhan, the world celebrated him for achieving what no other leader in history had achieved: the eradication of a virus in one country. Even now, he gets accolades for this. The rest of the world followed, and elites in all countries said that this path was the future. Going Backwards Now the virus is on the loose all over the country, and the eradication methods are intensifying. This is crushing economic growth and now threatening genuine economic depression in the country that only a few years ago was seen as the greatest economic engine of the world. It’s truly the case that Xi Jinping has put his personal pride above the well-being of all people in China. The scientists in the country know that he is wrong about this but no one is in a position to tell him. We cannot really trust the data coming out of China but officially the rate of infection in that country is one of the lowest in the world. Billions more people need to get the bug and recover in order to have anything close to herd immunity. This means that lockdowns are the way for years to come so long as the present regime remains in power. American prosperity for decades has relied on: relatively low inflation, fairly stable rules of the game, and widening trade with the world and China in particular. All three are at an end. Yes, it is heartbreaking to watch it all unfold. I’m not defending China’s human rights abuses. Far from it. But the best way to end these abuses is through engagement, not estrangement. We all need hope right now but it’s very difficult to find, since we are on a course that is not likely to be fixed for a very long time. Tyler Durden Wed, 11/30/2022 - 19:05.....»»

Category: blogSource: zerohedgeNov 30th, 2022

Build Your Quality Of Life By Investing In Your Lifestyle

Money is tight for many individuals and businesses right now, with inflation at historic highs and pressures on the economy coming from several directions at once, from the lingering effects of the pandemic to shipping hangups and the Ukraine war. In spite of the challenges, there’s good news: it’s possible to make your money and […] Money is tight for many individuals and businesses right now, with inflation at historic highs and pressures on the economy coming from several directions at once, from the lingering effects of the pandemic to shipping hangups and the Ukraine war. In spite of the challenges, there’s good news: it’s possible to make your money and resources work for you. Even if your budget is tight. .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2022 hedge fund letters, conferences and more   Find A Qualified Financial Advisor Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals, get started now. Money can be a powerful tool whether it’s coming your way in a flood or a trickle. Quality is superior to quantity when it comes to how you direct that flow. Think of a garden hose: even a modest stream can be turned into an arcing spray and reach much farther if you place your thumb in just the right spot over the nozzle. When things are more challenging financially, you have the opportunity to carefully evaluate what works and what doesn’t – to adjust your approach and apply pressure where it’s needed to maximize the power of your cashflow. This is true for personal finance as well as for business. And the hard work you do now can continue to benefit you even after things improve. There are several steps you can take to ensure you are maximizing the quality of your personal and/or business life, often simply by making adjustments. Take The Time To Evaluate How Your Money Is Working Before you begin adjusting your cashflow or making significant changes to your financial strategy, it’s important to take time to put together a comprehensive financial picture. Whether you are assessing business or personal finances, the first step in making your money work for you is to get a clear sense of what it is already doing. Is it running into a financial drain instead of nurturing growth in your life? The answer to that question could look very different for different individuals or companies. We don’t all share the same goals and values. Once we identify the answers relative to our situation, it’s important to evaluate how to make adjustments to change outcomes that need changing. As LifestyleInvestor, Justin Donald says, “Whatever you do – take action. If it’s the wrong thing, pivot and do something else, but don’t just do nothing.” It is frighteningly easy to let inertia get the better of financial health. This is why periodic audits can be helpful: they illuminate drains so that we can take action to stop them. Try to schedule the into your annual or monthly routine: good habits can lead to health and wealth. Here Are A Few Areas To Consider For Possible Savings When Doing A Financial-Evaluation: Subscription Services Have you ever realized you haven’t used your streaming subscription in months? Take some time to decide what volume of use for a streaming or magazine subscription makes the cost worthwhile, and then evaluate how much time you spend actually reading those articles or watching your favorite shows. If you have stacks of unread issues on one corner of your table or haven’t tuned into a show in weeks, it might be time to consider ending your subscription. Software And Advertising Spending This is slightly more applicable to businesses than to individuals, but even an individual budget can be hit hard by an unnecessary Adobe Cloud subscription you got to complete a project last year and then forgot about. As a business owner, you can periodically evaluate SaaS products to determine if the cost is justified by time savings and increased productivity. If not, you might want to consider alternatives. It’s also wise to have your marketing team assess where your advertising dollars are going. Are you taking out regular ads in newspapers with reduced readership, or on websites with firewalls that might prevent impressions? Maybe it’s time to redirect those funds to more effective alternatives. Interest Rates Are interest rates working for you or against you? Take a look at your investments and your debts to decide whether there’s room for improvement. With debts like loans and credit cards, check rates periodically to see whether yours have gone up. With credit cards, your best bet is paying off your balance in full each month and avoiding interest charges entirely, but if you ever need to finance an emergency purchase, it’s important to know how much it will cost you ahead of time. Similarly, if you’re already carrying a balance, you might find a lower-interest loan or balance transfer card that could save you significant amounts of money. Now might not be the time to refinance a mortgage, but if you have other loans – like small business loans or private student loans – you might consider shopping around for a better deal. Just be sure to read the fine print to avoid hidden fees. You can do the same with your investments. If you have more than $1,000 in a savings account, it might be time to find a home with higher earnings potential for that cash. That’s a somewhat extreme example, but do keep an eye on your investments and look for higher-growth opportunities (depending on your tolerance for risk) periodically. Just be sure not to make panic-based decisions. This is where a good financial advisor can help. Cutting Corners Part of your financial health assessment should include a list of needs vs. wants. Your ten-person team may not need an enterprise edition of project management or email software. You might not need the most expensive version of Zoom or Dropbox. Are there alternatives to some of these more costly programs that your team can get by on? If so, the dollars you save can support your team or raise production. You can use a similar strategy for personal finance as well. Maybe you enjoy a glass of red wine each night for dinner. Finding a good quality $10 bottle instead of your usual $50 wine could add up to enormous savings over time. You might be a cinephile. Instead of a $15 movie ticket at the theater, you could find something to rent online for $5. You could put the dollars you save each month into a vacation fund or an investment portfolio. When You Trim The Fat, Don’t Throw Away The Muscle Too Evaluating your finances and looking for ways to adjust your spending to save money is a critical aspect of improving your financial well-being. But you can take it too far. Economy, even in a business, is not always about a simple equation of dollars and cents. Sometimes spending a little extra in the right sphere, while painful at the moment, will lead to increased wealth down the road. Most of us are familiar with this principle. We know if we buy the cheap hiking boots, we’re going to end up with blisters, and we’ll likely walk the soles off after just a few outings. And then we’re back to buying hiking boots and ultimately spending more than we would have if we had done some research, saved up, and purchased the more expensive, well-made product. This can be less obvious in business. Frequently when cutting corners, we begin to eye employee salary and benefits packages and start by laying off personnel. Sometimes, this is necessary. But it can also lead to unintended consequences. Employees are more than business elements, and they can add value in unexpected ways – particularly when they feel valued by and committed to their employer. They hold institutional knowledge and build relationships for your business. It is worth the extra time to evaluate other types of spending before laying off people. Overhead high? Consider ditching the office and going fully remote, or working out a hybrid schedule to reduce heating and cooling costs. Invest in team members with solid skills, and continue to invest in them through training and wellbeing programs. They will in turn contribute to the well-being of your company and can mean the difference between feast or famine in hard times. Remember that some forms of productivity are difficult to measure and don’t translate to spreadsheets and charts. Some Tips For Improving Your Business And Personal Financial Literacy And Lifestyle: Purchase durable, high-quality items when you can, and check warranties and whether a company stands behind the product it produces Try not to make purchases with revolving credit. Save before buying, or find a way to make an investment that yields enough interest to make your payments Consider passive income options like real estate investments to give yourself a financial cushion Educate yourself on investments, the products you buy, and about the economy — your economy — and make financial decisions carefully rather than impulsively Invest in people. Treat your employees well with the understanding that their value goes beyond simple task-based productivity On a personal level, cultivate friendships with people who are smart with money When you think about how you spend money, think of quality, not quantity. Invest in the best quality you can, when you can. Look at warranties and upgrade capabilities: try to buy once and enjoy items for years. Do your homework, and do periodic evaluations. Note what was a great decision last year and admit if a great decision last year is not a wise choice for you today. Don’t impulse buy, and don’t make impulsive investment decisions. Reflect your values in your work, your life, and your business — and these choices will begin to pay you back in spades. Spending a little extra time and a little extra cash upfront can make all the difference for your financial well-being and your lifestyle. Article by Peter Daisyme, Due About the Author Peter Daisyme is the co-founder of Palo Alto, California-based Hostt, specializing in helping businesses with hosting their website for free, for life. Previously he was the co-founder of Pixloo, a company that helped people sell their homes online, that was acquired in 2012......»»

Category: blogSource: valuewalkNov 30th, 2022

Personal Finance Daily: To pay off $127,000 in debt faster, this couple moved in with a parent after their wedding and home prices will continue to rise in 2023, despite a cooling housing market

Wednesday's top personal finance stories......»»

Category: topSource: marketwatchNov 30th, 2022

NFTs Guide For Newbies

NFTs are one of the most exciting things that have come out of the crypto community in recent years. These non-fungible tokens (NFTs) can be used to represent any type of asset, including art, real estate, and collectibles. NFTs guide for newbies is essential if you want to learn more about this exciting new technology […] NFTs are one of the most exciting things that have come out of the crypto community in recent years. These non-fungible tokens (NFTs) can be used to represent any type of asset, including art, real estate, and collectibles. NFTs guide for newbies is essential if you want to learn more about this exciting new technology that’s revolutionizing the way we interact with each other online. NFTs Explained NFTs are a type of crypto asset that represents a unique digital asset. They can be anything from collectibles to art, games and even real estate. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2022 hedge fund letters, conferences and more   NFTs are usually created on the Ethereum blockchain but they can also be created by other blockchains such as NEO or EOS. The NFTs are then stored in wallets which have been created specifically to hold them (like an account) so that they're easily accessible when needed. Once someone has purchased an NFT they can use it as if it were any other type of digital currency like Bitcoin or Ethereum itself - you won't need to keep track of its value since there's no way for anyone else besides yourself see how much it costs! What Is NFT? A non fungible token is a digital asset that can be used to represent another item or concept. For example, you may have heard of Bitcoin, but what about Ethereum? Well, Ethereum is actually a blockchain platform that lets you create your own cryptocurrency on it. The most famous example of this type of token is probably Kickstarter’s Cofounder Coin (CFC), which was created for fundraising purposes and sold for $15 million USD in 2017! The reason why NFTs are so popular right now has to do with their ability to create unique assets using blockchain technology without having any physical aspect at all—and not just limited by paintings or sculptures either! What Is NFT Art? NFT art is a digital asset that is unique and cannot be replicated. It can be traded, collected and even used as collateral. NFT art is stored on a blockchain network, which means that it’s impossible to counterfeit or tamper with the item once it has been issued. Benefits Of NFT Art NFT art is a new way to own art. NFT art is a new way to invest in art. NFT art is a new way to curate art. NFT artists are creating their own NFTs and selling them on the blockchain, providing them with an opportunity for financial independence, whereas traditional galleries charge high fees and have little control over their artists' work. Since they don't own the copyright or original material itself; this can lead to unfair contracts between both parties (e.,g., artist-gallery) which doesn't benefit either party in any way because it's all about money for both sides! What Are Tthe Functions Of An NFT Marketplace? NFTs are used as a form of digital scarcity. A NFT can be used to represent ownership of a physical object, or it can be used to represent ownership of an asset (such as cryptocurrency). For example, if you own the rights to produce and sell your own brand of vodka for $10 per bottle, then you could sell that right on an NFT market. The same applies for other types of assets like artworks or real estate properties—they all have value because humans have created them from nothing! NFTs can also be used in other ways besides just being traded as commodities: they can also be traded as services (like payment channels) or even just as collectibles (as with rare coins). How To Sell An NFT? To sell an NFT, you must first create an account on the NFT marketplace the-bit-index-ai.com. You can do this by signing up with your email address and creating a password. Once you’ve created an account, go to the “Buy NFTs” tab and search for the asset type that matches your needs. Once you find that particular item, click on it and then add more information about yourself (your name). This will allow other users looking at their own sales histories to see who is buying what they want! Before you jump into the world of NFT, it's important that you understand what non-fungible tokens are and how they work. Primarily, non-fungible tokens (NFTs) are cryptographic tokens on a blockchain network that represent unique digital assets. They're also one of the most popular crypto assets of 2021. While cryptocurrencies like bitcoin, ether, and litecoin are fungible, meaning that two or more units of them with exactly the same value can be traded against each other without any difference between them (they're all worth exactly $100), non-fungible tokens exist independently on their own blockchain network like Ethereum. Conclusion In short, an NFT is a digital asset that has its own unique rules and characteristics, but it can still be traded like any other currency. The main difference is that it doesn't use fungibility as a standard feature of the blockchain transaction system like Ethereum or bitcoin does. This means that every NFT has different properties from one another such as scarcity or unique properties (like being made from LEGO bricks). Of course, this makes them ideal for games where players can create items with their own personal preferences without having to worry about whether everyone else has the same thing! Takeaway: If you're new to the world of non-fungible tokens (NFTs), there are many things you should know before getting started. First off, they're not just limited to online games! There's also potential for them in areas such as esports betting where players need something uniquely theirs so they don't have generic player characters running around - like skins on League of Legends champions.) Finally we'll cover how people are using these cryptocurrencies both on Ethereum and other networks like Bitcoin Cash (BCH), Litecoin (LTC) or Dash which make up part of what's known as Altcoins.).....»»

Category: blogSource: valuewalkNov 30th, 2022

Personal finance links: what other people think

Wednesdays are all about personal finance here at Abnormal Returns. You can check out last week’s links including a look at why... PodcastsKenny Malone and Greg Rosalsky talk with Yale economist James Choi about his paper "Popular Personal Financial Advice Versus The Professors." (npr.org)Michael Klein talks with Laura Gee at Tufts University about the state of charitable giving in the U.S. (econofact.org)AgingMore Americans are living alone as they reach retirement age. (nytimes.com)Why you should talk to your parents about their money. (marketwatch.com)More Americans are working into their 80s. (thebasispoint.com)IdentityWhen you step off the treadmill, your identity is going to take a hit. (whitecoatinvestor.com)How to deal with a sudden influx of wealth. (wsj.com)What does success with money mean to you? (humbledollar.com)Personal financeTony Isola, "Overcoming obstacles and not getting distracted by all that glitters is vital to wealth creation." (tonyisola.com)How to remove single points of failure in your life. (ofdollarsanddata.com)There's not much new under the personal finance sun. (whitecoatinvestor.com)Factors to consider when looking at long term care insurance. (kindnessfp.com)Nine money lessons for a 17 year-old including 'Save more as you earn more.' (dariusforoux.com)The student loan payment holiday has been extended. (cnbc.com)Getting vs. staying wealthy, an except from "The Psychology of Money" by Morgan Housel. (collabfund.com).....»»

Category: blogSource: abnormalreturnsNov 30th, 2022

Personal Finance Daily: Here are 7 tips to maximize your charitable donations on Giving Tuesday and can moving to a different neighborhood improve your chances in life?

Tuesday's top personal finance stories......»»

Category: topSource: marketwatchNov 29th, 2022

TurboTax maker Intuit lowers revenue guidance for the year

Shares of Intuit Inc. fell 2% in the extended session Tuesday after the maker of tax-preparing software TurboTax and other business and personal-finance products beat Wall Street expectations for its fiscal first quarter but lowered its fiscal 2023 revenue guidance, saying it remained worried about its Credit Karma personal-finance brand. Intuit said it earned $40 million, or 14 cents a share, in the quarter, compared with $228 million, or 82 cents a share, in the year-ago period. Adjusted for one-time items, Intuit earned $1.66 a share. Revenue rose 29% to $2.6 billion. Analysts polled by FactSet expected adjusted earnings of $1.19 a share on revenue of $2.5 billion. "While we are pleased with first-quarter results, we shared earlier this month that Credit Karma experienced continuing deterioration across all verticals in the last few weeks of the first quarter," Chief Financial Officer Michelle Clatterbuck said in a statement. Intuit guided for fiscal 2023 revenue between $14.035 billion and $14.250 billion, representing growth of about 10% to 12%, down from a previous guidance of growth of about 14% to 16%. The analysts surveyed by FactSet expect revenue around $14.5 billion. Shares of Intuit ended the regular trading day down 1.5%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatchNov 29th, 2022

Dollar Dig Review The Best Cash Back Website For Frugal Shoppers

In June, inflation hit a new high of 9.1%. We’re all feeling squeezed by rising prices and are looking to save money wherever we can. That’s where Dollar Dig comes in. It’s a rebate website that gives you cash back on the everyday essentials you’re already buying. Unlike some cash back credit cards, Dollar Dig […] In June, inflation hit a new high of 9.1%. We’re all feeling squeezed by rising prices and are looking to save money wherever we can. That’s where Dollar Dig comes in. It’s a rebate website that gives you cash back on the everyday essentials you’re already buying. Unlike some cash back credit cards, Dollar Dig doesn’t charge any annual fees and is completely free to use, which is why it’s a great tool for frugal shoppers. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Series in PDF Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2022 hedge fund letters, conferences and more   Dollar Dig also has some of the highest reward rates of any rebate website, helping you earn more cash back. I recently earned 4% cash back on a hardware item from Walmart that rarely goes on sale, and the process was easy. All I had to do was click Walmart’s link on Dollar Dig’s website and watch the savings roll in. Keep reading if you want to learn how to start earning rewards through Dollar Dig and find out why many users are calling it the best cash back site on the web. How Does Dollar Dig Work? You may be wondering, how can Dollar Dig afford to offer cash back to all of its users for free? Dollar Dig has links to hundreds of retailers on its website, such as Ace Hardware and Macy's. Whenever you click on one of those links and make a purchase, Dollar Dig earns a commission on the sale. Some of that commission is passed on to you in the form of cash back. To start earning rewards, sign up for a Dollar Dig account. Then find the link to your favorite store using the search bar. Dollar Dig partners with hundreds of retailers such as Green Chef, Home Depot, 1-800 Contacts, and Chewy. With so many shopping options, you'll be able to earn cash back on all the things your family needs. How Long Does It Take For Pending To Clear? Once you've found the store you're looking for, simply click on the link and shop as you normally would. After you check out, the cash back you earned will show up as pending in your account. This usually happens within 24 hours, but can take up to 10 days depending on the retailer. Your cash back will show as pending until your reward is fully processed, which takes about 90 days. Once you’ve earned $25 in cash back through Dollar Dig, you can withdraw your earnings via PayPal or Dwolla. If you live in the US, you can also receive your cash back as a gift card or check. The fact that Dollar Dig offers so many redemption options is a big plus. How Much Can You Earn? Since each store has a different cash back percentage, your Dollar Dig earnings will depend on where you shop. With that being said, it’s common for Dollar Dig users to score up to 10% cash back or more on their purchases. Since Dollar Dig gives you a percentage of your purchase amount in cash back, your earnings will also vary based on how much you spend. But try not to spend more than you planned just because you find a great cash back deal. It's best to use Dollar Dig to purchase things you would have bought anyway to maximize your savings and stick to your budget. Speaking of maximizing your savings, Dollar Dig also offers exclusive coupons to help you save even more money! Most of the coupons give you free shipping or a discount at popular stores like Old Navy, Life Is Good, and QVC. Dollar Dig Pros and Cons Pros One of the major pros of Dollar Dig is that it offers bigger rebates than other cash back sites in many cases. For example, Dollar Dig currently gives users up to 4% cash back at Walmart, whereas TopCashback only offers 2% on most Walmart purchases (except books, which have a rewards rate of 7%). Rakuten gives users even less cash back at Walmart than TopCashback—just 1%. I was excited to learn that I could earn more rewards at my favorite stores including Walmart, Kohl’s, Old Navy, and Chewy just by making the switch from Rakuten to Dollar Dig. Another plus is that Dollar Dig is very reliable when it comes to crediting cash back. Blogger Stephen Pepper has used Dollar Dig nearly 70 times. He received his cash back without problems on all but one occasion, so you won’t have to worry about missing cash back. But if you do run into any problems, the customer care team is very responsive and will get your issue sorted out promptly. Cons The only downside of Dollar Dig compared to competitors is that it doesn’t have an app. Rakuten and TopCashback both have mobile apps that make it easier to shop from your smartphone. But you can still use Dollar Dig on a regular mobile browser—I tried it out and it worked well. The fact that Dollar Dig doesn't spend money on app maintenance is probably why they can afford to offer a higher cash back rate than competitors. At the end of the day, I’d rather have more cash back in my pocket than a fancy mobile app! Dollar Dig Reviews Overall, Dollar Dig has very positive reviews. The website earned 4.4 stars on Trustpilot and a rating of excellent. Several reviewers praised the company’s top-notch customer service and said any issues they had were resolved quickly. One person even said the customer care team is the best one they’ve ever interacted with. Other reviewers stated that the site is hassle-free and trustworthy, has the highest rebates, and is overall the best cash back site on the web. There were only one or two reviews from people who had trouble getting their cash back, which received quick responses from the customer care team. So rest assured that if something goes wrong with your cash back, you’ll get the help you need. My Experience With Dollar Dig My experience with Dollar Dig has also been positive. The website is user-friendly and easy to navigate. There are plenty of stores to choose from, including all my favorite big-box retailers and fun specialty stores like gourmet tea shops. I love the wide variety of redemption options and the fact that there are multiple ways to save with coupons, rebates, and free shipping offers. The only problem I ran into was a minor technical issue when I tried to sign up for an account on my computer. Dollar Dig said it detected a VPN and prompted me to disable it even though I don’t use one. I didn’t see anyone else mention this issue, so it was likely a user error on my part. I signed up on my phone and made my purchase in a mobile browser instead, which worked perfectly. I bought a $24 router bit from Walmart and earned 4% cash back on it. Hardware rarely goes on sale, so I was thrilled to get a discount on a tool I would’ve purchased anyway. I’m eagerly awaiting my cash back, which is already pending, and plan to use Dollar Dig for more online purchases in the future! Who Should Use Dollar Dig? After trying out Dollar Dig, I think everyone should use it! It’s a simple, straightforward way to earn cash back on the everyday essentials you’re already buying. However, if you prefer to shop in person, Dollar Dig may not be right for you because it requires you to buy your items online. Rakuten gives you the option to link your credit card to your account so you can earn rewards on in-store purchases, so you may want to explore that option instead. Alternatively, you could scope out the items you want to buy in person and then place your order online through Dollar Dig. Dollar Dig: A Great Way to Save Money All in all, using Dollar Dig is a great way to save money—as long as you use it to purchase things you already planned on buying. You shouldn’t impulse buy items you don’t really need just because Dollar Dig is offering a high rewards rate on them. If cash back apps cause you to overspend, then they aren’t really saving you money. But if you can practice restraint and only use Dollar Dig to purchase necessities you’ve budgeted for, then it’s a great tool to add to your personal finance arsenal. Saving up to 10% or more on everyday essentials can make a big difference in your budget, especially as costs continue to rise due to inflation. Plus, Dollar Dig is free to use, which you can’t say about other money-saving methods like rewards credit cards. Rewards credit cards often require you to pay an annual fee and charge you a high APR if you carry a balance. Dollar Dig gives you just as much cash back as most rewards credit cards and doesn’t cost you a thing. So what are you waiting for? Sign up today using the link below! Have you ever used Dollar Dig before? If you have, be sure to share your experience in the comments section! Read More: Why I Don’t Spend Money on Time-Saving Services How I Save Money By Regifting 20 Great Places to Escape the Heat Come back to what you love! Dollardig.com is the most reliable cash-back site on the web. Just sign up, click, shop, and get full cashback! Article by Vicky Monroe, SavingAdvice.com.....»»

Category: blogSource: valuewalkNov 29th, 2022

Cyberthieves stole $186,000 from a Republican member of Congress as fraud epidemic plagues political committees

Harshbarger, a freshman Republican congresswoman from Tennessee, recouped the money stolen from her campaign account. But others haven't been so fortunate. Rep. Diana Harshbarger, a Republican who represents Tennessee's 1st Congressional District, is among a growing group of politicians and political actors to experience theft from their federal campaign accounts.Anna Moneymaker/Getty Images Cyberthieves stole more than $186,000 from Rep. Diana Harshbarger's campaign committee, federal records show. The Republican from Tennessee recouped the lost funds. But others haven't been so lucky as a theft epidemic strikes political committees. Republican Rep. Diana Harshbarger of Tennessee is the latest victim in a string of financial crimes against federal-level political committees that's quickly reaching epidemic levels.A cyber thief known only as "Vix" stole more than $186,000 from Harshbarger's campaign account in an "unauthorized fraudulent wire transfer" on July 8, according to records filed with the Federal Election Commission. The Harshbarger campaign told the FEC that the bank in which the stolen funds were deposited "froze the funds and returned all the money in question," meaning the freshman congresswoman didn't lose the money for long — in contrast to other prominent political committees that have together lost millions of dollars in recent years."Our internal controls caught a fraudulent invoice, and steps were taken immediately to rectify the situation, and we recovered the full amount," Zac Rutherford, Harshbarger's congressional chief of staff and senior campaign advisor, said in a statement to Insider. "We reported the crime (or matter) to the FBI and consulted the FEC on how to report this unauthorized expenditure."A report from Rep. Diana Harshbarger's congressional campaign committee to the Federal Election Commission, indicating theft from the committee's account.Federal Election CommissionHarshbarger's campaign did not elaborate on how, precisely, the money was stolen. But a person familiar with the theft described it as a sophisticated effort with the thief ultimately depositing the Harshbarger campaign's money in a Wells Fargo bank account.Robert Sumner, spokesperson for Wells Fargo's government relations and public policy team, declined to comment.In a statement to Insider, the FBI said its "standard practice is to neither confirm nor deny the existence of any investigation, or comment on information we may receive from the public."FEC spokesperson Judith Ingram said her agency "cannot comment on individual candidates or committees." Ingram noted that the FEC provides detailed guidance to political committees about defending against theft and instructions about what to do if money is stolen from a campaign account. The 2020 presidential campaign of now-President Joe Biden is among various political committees to experience theft during the past several years.Mark Makela/Corbis via Getty ImagesEpidemic of political theftDozens of political committees of all kinds and sizes have lost money at the hands of thieves and embezzlers, according to an Insider analysis of federal campaign finance records.Among them: President Joe Biden's 2020 presidential campaign, the Republican National Committee, and a host of corporate, union, and ideological PACs. Even a bank's PAC has been struck.More recently, the American Hospital Association's political action committee and Kanye West's 2020 presidential campaign committee have fallen victim to financial fraudsters.While most of the thefts are relatively small by political campaign standards — in the hundreds or thousands of dollars — others, such as the one that struck Harshbarger's campaign, reach into the five-, six- or seven-figure range.Cybertheft methods such as phishing are preferred methods among perpetrators. But more old-school techniques, such as stealing or falsifying paper checks, is also common.Political committees are enticing targets for cybercriminals, said James E. Lee, chief operating officer of the Identity Theft Resource Center, a nonprofit organization that helps consumers, businesses, and government entities avoid and recover from cybercrime."Campaigns often lack the training, awareness, and tools to fight against the well-organized, highly skilled, and relentless cybercrime groups that specialize in phishing attacks," Lee told Insider. "Campaigns also have two things that financially motivated identity criminals want — cash and the personal information of donors. Nation/state threat actors may also be interested in the donor information, depending on the candidate and office the candidate is seeking."Political committees should take several steps to secure their operations against cyber-threats, Lee said, including:Training staff members, vendors, and key volunteers with access to the campaign's computer systems to "spot phishing and social engineering attacks."Using a third-party cybersecurity service to "ensure the campaign's network, databases, and applications are secure and kept up-to-date."Using multi-factor authentication to access campaign accounts.Requiring campaign vendors to "meet or exceed the same security standards" as the campaign committee itself.Practicing "good data minimization protocols." In other words: "Don't collect information you don't need. Don't keep informational longer than you need it. Secure information you do keep."Harshbarger, who easily won a second term in Congress earlier this month, "would be open" to supporting legislation in the next Congress that "helps boost cybersecurity for everyone affected by financial crimes," Rutherford said.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 29th, 2022

Scotiabank reports fourth quarter and 2022 results

Scotiabank's 2022 audited annual consolidated financial statements and accompanying Management's Discussion & Analysis (MD&A) are available at www.scotiabank.com along with the supplementary financial information and regulatory capital disclosure reports, which include fourth quarter financial information. All amounts are in Canadian dollars and are based on our audited annual consolidated financial statements and accompanying MD&A for the year ended October 31, 2022 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted.   Additional information related to the Bank, including the Bank's Annual Information Form, can be found on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov. Fiscal 2022 Highlights on a Reported Basis (versus Fiscal 2021)  Fourth Quarter 2022 Highlights on a Reported Basis (versus Q4, 2021) •  Net income of $10,174 million, compared to $9,955 million          •  Net income of $2,093 million, compared to $2,559 million •  Earnings per share (diluted) of $8.02, compared to $7.70 •  Earnings per share (diluted) of $1.63, compared to $1.97 •  Return on equity(1) of 14.8%, compared to 14.7% •  Return on equity of 11.9%, compared to 14.8% Fiscal 2022 Highlights on an Adjusted Basis(2) (versus Fiscal 2021) Fourth Quarter 2022 Highlights on an Adjusted Basis(2) (versus Q4, 2021) •  Net income of $10,749 million, compared to $10,169 million •  Net income of $2,615 million, compared to $2,716 million •  Earnings per share (diluted) of $8.50, compared to $7.87 •  Earnings per share (diluted) of $2.06, compared to $2.10 •  Return on equity of 15.6%, compared to 15.0% •  Return on equity of 15.0%, compared to 15.6% Fiscal 2022 Performance versus Medium-Term Objectives The following table provides a summary of our 2022 performance against our medium-term financial objectives: Medium-Term Objectives Fiscal 2022 Results Reported Adjusted(2) Diluted earnings per share growth of 7%+                                                        4.2 % 8.0 % Return on equity of 14%+ 14.8 % 15.6 % Achieve positive operating leverage Negative 2.4% Negative 1.1% Maintain strong capital ratios CET1 capital ratio(3) of 11.5%     N/A TORONTO, Nov. 29, 2022 /CNW/ - Scotiabank reported net income of $10,174 million for the fiscal year 2022, compared with net income of $9,955 million in 2021. Diluted earnings per share (EPS) were $8.02, compared to $7.70 in the previous year. Return on equity was 14.8%, compared to 14.7% in the previous year. Reported net income for the fourth quarter ended October 31, 2022 was $2,093 million compared to $2,559 million in the same period last year. Diluted earnings per share were $1.63, compared to $1.97 in the same period a year ago. This quarter's net income included adjusting items of $504 million after tax. These consisted of a $66 million restructuring charge relating to the realignment of certain Global Banking and Markets businesses in Asia and an on-going technology modernization, $98 million of committed support costs relating to the expansion of our Scene+ loyalty program and a $340 million loss resulting from the sale of investment in associates in Venezuela and Thailand, as well as the wind down of operations in India and Malaysia mainly currency related. Adjusted net income(2) was $10,749 million, up from $10,169 million in the previous year, and adjusted EPS was $8.50 versus $7.87 in the previous year. Adjusted net income(2) for the fourth quarter ended October 31, 2022 was $2,615 million and adjusted EPS was $2.06, compared to $2.10 last year. Adjusted return on equity was 15.0% compared to 15.6% a year ago. "This year, the Bank remained focused on leading through sound advice and delivering value to our customers, including launching the enhanced Scene+ loyalty program, which has since grown by more than one million new members and was further expanded with the addition of Empire Company Limited to the partnership. Our commitment to our customers has resulted in a number of prestigious recognitions, including Bank of the Year for Canada for the third year in a row from The Banker, Investment Bank of the Year for the Americas from The Banker, and Best Bank in Canada from Euromoney," said Brian Porter, President and CEO of Scotiabank. Despite the uncertain and volatile operating environment, each of the four business lines contributed strongly to our consolidated fiscal year performance reflecting the diversified earnings power of the Bank. Canadian Banking generated adjusted earnings of $4,779 million in 2022, an increase of 15% compared to the prior year. The increase was due primarily to higher revenues driven by strong growth of 14% in residential mortgages and a 21% increase in business banking loans, as well as lower provision for credit losses. Non-interest income grew 6%.  Global Wealth Management reported adjusted earnings of $1,583 million in 2022. Challenging market conditions drove declines in assets under management, impacting fee income, partly offset by strong growth in the advisory business and continued prudent expense management. Global Banking and Markets generated earnings of $1,911 million, reflecting solid business banking performance, including strong loan growth momentum, while capital markets faced challenging market conditions. Provision for credit losses rose this year due to lower reversals, and expenses grew to support continued business investment. International Banking delivered a strong rebound in adjusted earnings in 2022. Adjusted earnings of $2,446 million represented a 32% increase compared to the prior year. This was driven by strong commercial and residential mortgage loan growth, prudent expense management and lower provision for credit losses. For fiscal 2022, the Bank exceeded its medium-term profitability targets on an adjusted basis, in terms of earnings per share growth and return on equity metrics. With a Common Equity Tier 1 capital ratio of 11.5%, the Bank remains well capitalized to support its strategic growth plans and return capital to shareholders. The quarterly dividend remains unchanged at $1.03 per common share. This year, the Bank released its inaugural Net-Zero Pathways Report, which includes sector-specific decarbonization baselines and targets. The Bank has made significant progress in achieving its climate-related financing target, having mobilized a total of $96 billion in climate-related finance, up from $58 billion last year. In 2022, the Bank released its inaugural ScotiaRISE Impact Report, which highlights the program's first-year results, from the Bank's $500 million, 10-year community investment commitment. Since the launch of ScotiaRISE, the Bank has partnered with more than 200 community organizations and invested more than $60 million in communities across Scotiabank's footprint. "I am exceedingly proud of what our team of 90,000 Scotiabankers has accomplished over the past 10 years. We have made strategic investments to refocus and strengthen our footprint and position the Bank for continued success over the long term. The Bank is stronger, more diverse, and more inclusive than it has ever been. Simply put, our Bank is a different bank today—one well-placed to deliver consistent long-term growth, and to cultivate our world-class culture, now and into the future," continued Mr. Porter. "It has been the privilege of my life to serve as the CEO of this storied institution. At 190 years old, Scotiabank is older than the country of Canada itself and as we look ahead to 2023, I have every confidence that the Bank's best days are yet to come." _________________________________________ (1) Refer to page 133 of the Management's Discussion & Analysis in the Bank's 2022 Annual Report, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto. (2) Refer to Non-GAAP Measures section starting on page 22. (3) This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018). Financial Highlights As at and for the three months ended As at and for the year ended October 31 July 31 October 31  October 31 October 31  2022 2022 2021 2022 2021 Operating results ($ millions) Net interest income 4,622 4,676 4,217 18,115 16,961 Non-interest income 3,004 3,123 3,470 13,301 14,291 Total revenue 7,626 7,799 7,687 31,416 31,252 Provision for credit losses 529 412 168 1,382 1,808 Non-interest expenses 4,529 4,191 4,271 17,102 16,618 Income tax expense 475 602 689 2,758 2,871 Net income 2,093 2,594 2,559 10,174 9,955 Net income attributable to common shareholders of the Bank 1,949 2,504 2,411 9,656 9,391 Operating performance Basic earnings per share ($) 1.64 2.10 1.98 8.05 7.74 Diluted earnings per share ($) 1.63 2.09 1.97 8.02 7.70 Return on equity (%)(1) 11.9 15.3 14.8 14.8 14.7 Return on tangible common equity (%)(2) 15.0 19.2 18.7 18.6 18.7 Productivity ratio (%)(1) 59.4 53.7 55.6 54.4 53.2 Operating leverage (%)(1) (2.4) 1.1 Net interest margin (%)(2) 2.18 2.22 2.17 2.20 2.23 Financial position information ($ millions) Cash and deposits with financial institutions 65,895 67,715 86,323 Trading assets 113,154 118,605 146,312 Loans 744,987 713,378 636,986 Total assets 1,349,418 1,292,102 1,184,844 Deposits 916,181 879,582 797,259 Common equity 65,150 65,043 64,750 Preferred shares and other equity instruments 8,075 7,052 6,052 Assets under administration(1) 641,636 630,087 652,924 Assets under management(1) 311,099 319,612 345,762 Capital and liquidity measures Common Equity Tier 1 (CET1) capital ratio (%)(3) 11.5 11.4 12.3 Tier 1 capital ratio (%)(3) 13.2 13.0 13.9 Total capital ratio (%)(3) 15.3 15.0 15.9 Total loss absorbing capacity (TLAC) ratio (%)(4) 27.4 28.4 27.8 Leverage ratio (%)(5) 4.2 4.2 4.8 TLAC Leverage ratio (%)(4) 8.8 9.3 9.6 Risk-weighted assets ($ millions)(3) 462,448 452,800 416,105 Liquidity coverage ratio (LCR) (%)(6) 119 122 124 Net stable funding ratio (NSFR) (%)(7) 111 109 110 Credit quality Net impaired loans ($ millions) 3,151 2,695 2,801 Allowance for credit losses ($ millions)(8) 5,499 5,295 5,731 Gross impaired loans as a % of loans and acceptances(1) 0.62 0.58 0.67 Net impaired loans as a % of loans and acceptances(1) 0.41 0.36 0.42 Provision for credit losses as a % of average net loans and acceptances(1)(9) 0.28 0.22 0.10 0.19 0.29 Provision for credit losses on impaired loans as a % of average net loans and acceptances(1)(9) 0.26 0.21 0.31 0.24 0.53 Net write-offs as a % of average net loans and acceptances(1) 0.24 0.21 0.34 0.24 0.54 Adjusted results(2) Adjusted net income ($ millions) 2,615 2,611 2,716 10,749 10,169 Adjusted diluted earnings per share ($) 2.06 2.10 2.10 8.50 7.87 Adjusted return on equity (%) 15.0 15.4 15.6 15.6 15.0 Adjusted return on tangible common equity (%) 18.7 19.2 19.6 19.5 19.0 Adjusted productivity ratio (%) 53.7 53.4 52.8 52.8 52.2 Adjusted operating leverage (%) (1.1) 1.5 Common share information Closing share price ($) (TSX) 65.85 78.01 81.14 Shares outstanding (millions) Average – Basic 1,192 1,195 1,215 1,199 1,214 Average – Diluted 1,199 1,203 1,224 1,208 1,225 End of period 1,191 1,193 1,215 Dividends paid per share ($) 1.03 1.03 0.90 4.06 3.60 Dividend yield (%)(1) 5.7 5.2 4.5 5.1 5.2 Market capitalization ($ millions) (TSX) 78,452 93,059 98,612 Book value per common share ($)(1) 54.68 54.52 53.28 Market value to book value multiple(1) 1.2 1.4 1.5 Price to earnings multiple (trailing 4 quarters)(1) 8.2 9.3 10.5 Other information Employees (full-time equivalent) 90,979 90,978 89,488 Branches and offices 2,384 2,392 2,518 (1) Refer to page 133 of the Management's Discussion & Analysis in the Bank's 2022 Annual Report, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto. (2) Refer to Non-GAAP Measures section starting on page 22. (3) This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018). (4) This measure has been disclosed in this document in accordance with OSFI Guideline - Total Loss Absorbing Capacity (September 2018). (5) This measure has been disclosed in this document in accordance with OSFI Guideline - Leverage Requirements (November 2018). (6) This measure has been disclosed in this document in accordance with OSFI Guideline – Public Disclosure Requirements for Domestic Systemically Important Banks on Liquidity Coverage Ratio (April 2015). (7) This measure has been disclosed in this document in accordance with OSFI Guideline – Public Disclosure Requirements for Domestic Systemically Important Banks on Liquidity Net Stable Funding Ratio Disclosure Requirements (January 2021). (8) Includes allowance for credit losses on all financial assets - loans, acceptances, off-balance sheet exposures, debt securities, and deposits with financial institutions. (9) Includes provision for credit losses on certain financial assets - loans, acceptances, and off-balance sheet exposures. Impact of Foreign Currency Translation Average exchange rate % Change October 31 July 31 October 31 October 31, 2022  October 31, 2022  For the three months ended 2022 2022 2021 vs. July 31, 2022 vs. October 31, 2021  U.S. Dollar/Canadian Dollar 0.752 0.778 0.796 (3.3) % (5.6) % Mexican Peso/Canadian Dollar 15.072 15.678 16.065 (3.9) % (6.2) % Peruvian Sol/Canadian Dollar 2.942 2.957 3.239 (0.5) % (9.2) % Colombian Peso/Canadian Dollar 3,381 3,200 3,043 5.7 % 11.1 % Chilean Peso/Canadian Dollar 696.481 690.164 631.752 0.9 % 10.2 % Average exchange rate % Change October 31 October 31 October 31, 2022  For the year ended 2022 2021 vs. October 31, 2021  U.S. Dollar/Canadian Dollar 0.777 0.795 (2.3) % Mexican Peso/Canadian Dollar 15.799 16.035 (1.5) % Peruvian Sol/Canadian Dollar 3.002 3.032 (1.0) % Colombian Peso/Canadian Dollar 3,187 2,929 8.8 % Chilean Peso/Canadian Dollar 669.905 593.123 12.9 % For the three months ended For the year ended Impact on net income(1) ($ millions except EPS) October 31, 2022  October 31, 2022 October 31, 2022  vs. October 31, 2021  vs. July 31, 2022 vs. October 31, 2021  Net interest income $ 45 $ 36 $ (158) Non-interest income(2) (38) (46) (109) Non-interest expenses (35) (29) 92 Other items (net of tax) 10 10 72 Net income $ (18) $ (29) $ (103) Earnings per share (diluted) $ (0.02) $ (0.02) $ (0.09) Impact by business line ($ millions) Canadian Banking $ 2 $ - $ 3 International Banking(2) 4 (7) (97) Global Wealth Management 3 2 - Global Banking and Markets 22 14 27 Other(2) (49) (38) (36) Net income $ (18) $ (29) $ (103) (1) Includes impact of all currencies. (2) Includes the impact of foreign currency hedges. Group Financial Performance Net income Q4 2022 vs Q4 2021 Net income was $2,093 million compared to $2,559 million, a decrease of 18%. The impact on net income of adjusting items for the current quarter was $522 million after-tax ($603 million pre-tax) (refer to the Non-GAAP measures section starting on page 22 for a reconciliation). The Bank recorded a net loss of $340 million ($361 million pre-tax) in relation to the divesture of investments in associates in Venezuela and Thailand, and the wind-down of operations in India and Malaysia, mostly relating to the reclassification of cumulative foreign currency translation losses net of hedges, from accumulated other comprehensive income to non-interest income in the Consolidated Statement of Income. The Bank recognized costs of $98 million ($133 million pre-tax) to support the expansion of the Scene+ loyalty program to include Empire Company Limited as a partner. The Bank recorded a restructuring charge of $66 million ($85 million pre-tax) primarily related to the strategic decision to realign the Global Banking and Markets business in Asia Pacific to focus on select banking and capital markets activities in the region. The charge also included reductions in Canadian and international technology employees, driven by ongoing technology modernization and digital transformation. Other adjusting items in the current quarter included amortization of acquisition-related intangible assets of $18 million ($24 million pre-tax). The impact of the adjustments on diluted earnings per share was $0.43 and on Basel III Common Equity Tier 1 (CET1) ratio was two basis points. The adjustments in the prior year were $157 million after-tax ($213 million pre-tax) which included restructuring and other provisions of $139 million after-tax ($188 million pre-tax), and amortization of acquisition-related intangible assets of $18 million ($25 million pre-tax). Adjusted net income was $2,615 million compared to $2,716 million, a decrease of 4%, due mainly to lower non-interest income, higher non-interest expenses and higher provision for credit losses, partly offset by higher net interest income and lower provision for income taxes. Q4 2022 vs Q3 2022 Net income was $2,093 million compared to $2,594 million, a decrease of 19%. This quarter included adjusting items of $522 million compared to $17 million in the prior quarter [refer to the Non-GAAP measures section on page 22]. Adjusted net income was $2,615 million compared to $2,611 million, an increase of $4 million. The increase was due mainly to higher non-interest income and lower provision for income taxes, partly offset by higher provision for credit losses and non-interest expenses. Total revenue Q4 2022 vs Q4 2021 Revenues were $7,626 million compared to $7,687 million, a decrease of 1%, including adjusting items of $361 million this quarter. Adjusted revenues were $7,987 million compared to $7,687 million, an increase of 4%, due mainly to higher net interest income, partly offset by lower non-interest income. Q4 2022 vs Q3 2022 Revenues were $7,626 million compared to $7,799 million, a decrease of 2%, including adjusting items of $361 million this quarter. Adjusted revenues were $7,987 million compared to $7,799 million, an increase of 2%, due mainly to higher non-interest income, partly offset by lower net interest income. Net interest income Q4 2022 vs Q4 2021 Net interest income was $4,622 million, an increase of $405 million or 10%, due primarily to strong asset growth across all business lines. Net interest margin was up 1 basis point to 2.18%, driven primarily by higher margins across all business lines, which benefited from central bank rate increases, partly offset by a lower contribution from asset/liability management activities related to higher funding costs and increased levels of high quality, lower-margin liquid assets. Q4 2022 vs Q3 2022 Net interest income decreased $54 million or 1%. Loan growth across all business lines was more than offset by lower net interest margins. Net interest margin of 2.18% was down 4 basis points driven by a lower contribution from asset/liability management activities related to higher funding costs, as well as a lower Canadian Banking margin, partly offset by a higher International Banking margin, as well as decreased levels of high quality, lower-margin liquid assets. Non-interest income Q4 2022 vs Q4 2021 Non-interest income was $3,004 million, down $466 million or 13% including adjusting items of $361 million this quarter (refer to Non-GAAP Measures starting on page 22). Adjusted non-interest income was down $105 million or 3%. The decrease was due mainly to lower wealth management revenues, unrealized losses on non-trading derivatives, and lower income from associated corporations. These were partly offset by higher banking revenues, other fees and commission revenues, and non-trading foreign exchange fees. Q4 2022 vs Q3 2022 Non-interest income was down $119 million or 4% including adjusting items of $361 million this quarter (refer to Non-GAAP Measures starting on page 22). Adjusted non-interest income was up $242 million or 8%, due primarily to higher trading revenues, banking revenues, other fees and commission revenues, as well as underwriting and advisory fees, partly offset by lower wealth management revenues. Provision for credit losses Q4 2022 vs Q4 2021 The provision for credit losses was $529 million, compared to $168 million, an increase of $361 million. The provision for credit losses ratio increased 18 basis points to 28 basis points. The provision for credit losses on performing loans was $35 million, compared to a net reversal of $343 million. The provision this period was driven by portfolio growth and the less favourable macroeconomic forecast, partly offset by improved credit quality expectations mainly in Canadian retail and improved credit quality in Global Banking and Markets. Higher provision reversals last year were due mainly to the more favourable credit and macroeconomic outlook as well as credit migration to impaired loans across most markets. The provision for credit losses on impaired loans was $494 million, compared to $511 million, a decrease of $17 million or 3% due primarily to lower provisions in the International retail portfolio driven by lower formations partly offset by higher formations in the Canadian retail portfolio. The provision for credit losses ratio on impaired loans was 26 basis points, a decrease of five basis points. Q4 2022 vs Q3 2022 The provision for credit losses was $529 million, compared to $412 million, an increase of $117 million or 28%. The provision for credit losses ratio increased six basis points to 28 basis points. The provision for credit losses on performing loans was $35 million, compared to $23 million last quarter, driven by the less favourable macroeconomic forecast and portfolio growth, partly offset by improved credit quality expectations mainly in Canadian retail. The provision for credit losses on impaired loans was $494 million, compared to $389 million, an increase of $105 million or 27%, due to higher corporate and commercial provisions and retail formations across markets. The provision for credit losses ratio on impaired loans was 26 basis points, an increase of five basis points. Non-interest expenses Q4 2022 vs Q4 2021 Non-interest expenses were $4,529 million, up $258 million or 6%, including adjusting items of $242 million versus $213 million in the prior year (refer to Non-GAAP Measures starting on page 22). Adjusted non-interest expenses were $4,287 million, up $229 million or 6%, driven by higher personnel costs, performance-based compensation, advertising and technology-related costs, business and capital taxes and the negative impact of foreign currency translation. The productivity ratio was 59.4% compared to 55.6%. The adjusted productivity ratio was 53.7% compared to 52.8%. Q4 2022 vs Q3 2022 Non-interest expenses were up $338 million or 8% including adjusting items of $242 million versus $24 million in the prior quarter (refer to Non-GAAP Measures starting on page 22).  Adjusted non-interest expenses were up $120 million or 3%. The increase was due to higher professional fees, performance-based compensation, advertising and technology-related costs, and the negative impact of foreign currency translation. Partly offsetting were other employee benefits and share-based compensation expenses. The productivity ratio was 59.4% compared to 53.7%. The adjusted productivity ratio was 53.7% compared to 53.4%. Provision for income taxes Q4 2022 vs Q4 2021 The effective tax rate was 18.5% compared to 21.2%. The adjusted effective tax rate was 17.6% compared to 21.5% due primarily to higher income from lower tax rate jurisdictions and higher tax-exempt income in the quarter. Q4 2022 vs Q3 2022 The effective tax rate was 18.5% compared to 18.8% in the previous quarter. The adjusted effective tax rate was 17.6% compared to 18.8% in the previous quarter due primarily to higher tax-exempt income. Capital Ratios The Bank continues to maintain strong, high quality capital levels which position it well for future business growth and opportunities. The CET1 ratio as at October 31, 2022 was 11.5%, a decrease of approximately 80 basis points from the prior year as solid internal capital generation during the year was more than offset by strong organic growth in risk-weighted assets across all business lines, common share buybacks under the Bank's Normal Course Issuer Bid, changes in the valuation of investment securities, and the Bank's increased ownership in Scotiabank Chile. The Bank's Tier 1 capital ratio was 13.2% as at October 31, 2022, a decrease of approximately 70 basis points from the prior year, due primarily to the above noted impacts to the CET1 ratio, the phase-out impact of approximately $650 million of non-qualifying additional tier 1 instruments, and the Bank's redemption of $500 million of NVCC preferred shares, partly offset by issuances of $1.5 billion and USD $750 million of Limited Recourse Capital Notes (LRCNs). The Bank's Total capital ratio was 15.3% as at October 31, 2022, a decrease of approximately 60 basis points from 2021, due primarily to the above noted impacts to the Tier 1 capital ratio, the redemption of $1.25 billion of NVCC subordinated debentures, amortization of approximately $325 million of NVCC Tier 2 instruments and the phase-out impact of approximately $250 million of non-qualifying subordinated debentures, partly offset by issuances of $1.75 billion and USD $1.25 billion of NVCC subordinated debentures. The TLAC ratio was 27.4% as at October 31, 2022, a decrease of 40 basis points from the prior year, mainly from strong growth in risk-weighted assets during the year. The Leverage ratio was 4.2%, a decrease of approximately 60 basis points from the prior year due primarily to OSFI's discontinuance of the temporary exclusion of sovereign-issued securities from its leverage exposures measure, combined with strong growth in the Bank's on and off-balance sheet assets. The TLAC Leverage ratio was 8.8%, a decrease of approximately 80 basis points from 2021, due primarily to strong growth in the Bank's on and off-balance sheet assets. The Bank's capital ratios continue to be in excess of OSFI's minimum capital ratio requirements for 2022 for CET1, Tier 1 and Total Capital. The Bank was well above the OSFI minimum Leverage ratio as at October 31, 2022. Business Segment Review Canadian Banking For the three months ended For the year ended (Unaudited)($ millions) October 31  July 31  October 31  October 31  October 31  (Taxable equivalent basis)(1) 2022 2022 2021 2022 2021 Reported Results Net interest income $ 2,363 $ 2,361 $ 2,082 $ 9,001 $ 8,030 Non-interest income(2) 771 758 749 3,029 2,868 Total revenue 3,134 3,119 2,831 12,030 10,898 Provision for credit losses 163 93 (96) 209 333 Non-interest expenses 1,397 1,385 1,251 5,388 4,951 Income tax expense 404 428 438 1,670 1,459 Net income $ 1,170 $ 1,213 $ 1,238 $ 4,763 $ 4,155 Net income attributable to equity holders of the Bank $ 1,170 $ 1,213 $ 1,238 $ 4,763 $ 4,155 Other measures Return on equity(3) 24.7 % 26.1 % 29.4 % 26.3 % 25.2 % Net interest margin(3) 2.26 % 2.29 % 2.20 % 2.24 % 2.23 % Average assets ($ billions) $ 446 $ 437 $ 398 $ 430 $ 381 Average liabilities ($ billions) $ 347 $ 337 $ 318 $ 332 $ 313 (1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2022 Annual Report to Shareholders. (2) Includes net income from investments in associated corporations for the three months ended October 31, 2022 - $23 (July 31, 2022 - $15; October 31, 2021 - $18) and for the year ended October 31, 2022 - $64 (October 31, 2021 - $87). (3) Refer to Non-GAAP measures starting on page 22.   For the three months ended For the year ended (Unaudited)($ millions) October 31  July 31  October 31  October 31  October 31  (Taxable equivalent basis) 2022 2022 2021 2022 2021 Adjusted Results(1) Net interest income $ 2,363 $ 2,361 $ 2,082 $ 9,001 $ 8,030 Non-interest income 771 758 749 3,029 2,868 Total revenue 3,134 3,119 2,831 12,030 10,898 Provision for credit losses 163 93 (96) 209 333 Non-interest expenses(2) 1,391 1,380 1,245 5,366 4,929 Income tax expense 406 429 440 1,676 1,465 Net income $ 1,174 $ 1,217 $ 1,242 $ 4,779 $ 4,171 (1) Refer to Non-GAAP Measures starting on page 22 for the reconciliation of reported and adjusted results. (2) Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended October 31, 2022 – $6 (July 31, 2022 – $5; October 31, 2021 – $6) and for the year ended October 31, 2022 – $22 (October 31, 2021 – $22). Net income Q4 2022 vs Q4 2021 Net income attributable to equity holders was $1,170 million, compared to $1,238 million. Adjusted net income attributable to equity holders was $1,174 million, a decrease of $68 million or 5%. The decline was due primarily to higher provision for credit losses. Q4 2022 vs Q3 2022 Net income attributable to equity holders declined $43 million or 4%. The decline was due primarily to higher provision for credit losses. Total revenue Q4 2022 vs Q4 2021 Revenues were $3,134 million, up $303 million or 11%, due to higher net interest income and non-interest income. Q4 2022 vs Q3 2022 Revenues increased $15 million due primarily to higher non-interest income. Net interest income Q4 2022 vs Q4 2021 Net interest income of $2,363 million increased $281 million or 13%, due primarily to strong loan and deposit growth, as well as margin expansion. The net interest margin increased six basis points to 2.26%, due primarily to higher deposit spreads and the impact of the Bank of Canada rate increases, partly offset by lower loan spreads. Q4 2022 vs Q3 2022 Net interest income was in line with prior quarter. Strong loan and deposit growth were offset by margin compression.  The net interest margin decreased three basis points to 2.26%, due primarily to lower mortgage prepayment fees and lower spreads on variable rate mortgages, partly offset by higher deposit spreads. Non-interest income Q4 2022 vs Q4 2021 Non-interest income of $771 million increased $22 million or 3%. The increase was due primarily to higher banking revenue and foreign exchange fees, partly offset by lower mutual fund distribution fees. Q4 2022 vs Q3 2022 Non-interest income increased $13 million or 2%. The increase was due primarily to higher banking revenue and income from associated corporations. Provision for credit losses Q4 2022 vs Q4 2021 The provision for credit losses was $163 million, compared to a net reversal of $96 million.  The provision for credit losses ratio increased 25 basis points to 15 basis points. Provision for credit losses on performing loans was $10 million, compared to a net reversal of $195 million. The provision this period was driven primarily by the less favourable macroeconomic forecast and portfolio growth partly offset by improved retail portfolio credit quality. Provision for credit losses on impaired loans was $153 million, compared to $99 million, an increase of $54 million due primarily to higher retail provisions driven by higher formations. The provision for credit losses ratio on impaired loans was 14 basis points, an increase of four basis points. Q4 2022 vs Q3 2022 The provision for credit losses was $163 million, compared to $93 million, an increase of $70 million. The provision for credit losses ratio increased six basis points to 15 basis points. Provision for credit losses on performing loans was $10 million, compared to a net reversal of $50 million last quarter. The provision this period was driven primarily by the less favourable macroeconomic forecast and portfolio growth, partly offset by improved retail portfolio credit quality expectations. Provision for credit losses on impaired loans was $153 million, compared to $143 million, an increase of $10 million or 7% due primarily to higher commercial provisions driven by higher formations, partly offset by lower retail provisions. The provision for credit losses ratio on impaired loans was 14 basis points, an increase of one basis point. Non-interest expenses Q4 2022 vs Q4 2021 Non-interest expenses were $1,397 million, up $146 million or 12%, due primarily to higher technology and personnel costs to support business growth. Q4 2022 vs Q3 2022 Non-interest expenses were up $12 million or 1%, due primarily to higher technology costs to support business growth. Provision for income taxes The effective tax rate was 25.7% for the quarter, compared to 26.2% in the prior year and 26.1% in the prior quarter. Average assets Q4 2022 vs Q4 2021 Average assets increased $48 billion or 12% to $446 billion. The growth included $27 billion or 11% in residential mortgages, $16 billion or 25% in business loans and acceptances, $3 billion or 4% in personal loans, and $1 billion or 11% in credit card loans. Q4 2022 vs Q3 2022 Average assets increased $9 billion or 2%. The growth included $4 billion or 1% in residential mortgages, $3 billion or 4% in business loans and acceptances, and $1 billion or 1% in personal loans. Average liabilities Q4 2022 vs Q4 2021 Average liabilities increased $29 billion or 9% to $347 billion. The growth included $15 billion or 8% in personal deposits and $6 billion or 6% in non-personal deposits. Q4 2022 vs Q3 2022 Average liabilities increased $10 billion or 3%. The growth included $8 billion or 4% in personal deposits and $1 billion or 1% in non-personal deposits. International Banking For the three months ended For the year ended (Unaudited)($ millions) October 31  July 31  October 31  October 31  October 31  (Taxable equivalent basis)(1) 2022 2022 2021 2022 2021 Reported Results Net interest income $ 1,806 $ 1,759 $ 1,589 $ 6,900 $ 6,625 Non-interest income(2) 698 660 728 2,827 2,993 Total revenue 2,504 2,419 2,317 9,727 9,618 Provision for credit losses 355 325 314 1,230 1,574 Non-interest expenses 1,364 1,295 1,259 5,212 5,254 Income tax expense 106 122 137 618 635 Net income $ 679 $ 677 $ 607 $ 2,667 $ 2,155 Net income attributable to non-controlling interests in subsidiaries 36 52 79 249 332 Net income attributable to equity holders of the Bank $ 643 $ 625 $ 528 $ 2,418 $ 1,823 Other measures Return on equity(3) 13.1 % 13.0 % 12.0 % 12.9 % 10.4 % Net interest margin(4) 4.08 % 3.95 % 3.78 % 3.96 % 3.95 % Average assets ($ billions) $ 217 $ 209 $ 192 $ 207 $ 194 Average liabilities ($ billions) $ 160 $ 155 $ 146 $ 152 $ 149 (1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2022 Annual Report to Shareholders. (2) Includes net income from investments in associated corporations for the three months ended October 31, 2022 - $51 (July 31, 2022 - $54; October 31, 2021 - $52) and for the year ended October 31, 2022 - $250 (October 31, 2021 - $206). (3) Refer to Non-GAAP Measures starting on page 22. (4) Prior period has been restated to reflect the deduction of non-interest bearing deposits with financial institutions, to align with the Bank's definition.    For the three months ended For the year ended (Unaudited)($ millions) October 31  July 31  October 31  October 31  October 31  (Taxable equivalent basis) 2022 2022 2021 2022 2021 Adjusted Results(1) Net interest income $ 1,806 $ 1,759 $ 1,589 $ 6,900 $ 6,625 Non-interest income 698 660 728 2,827 2,993 Total revenue 2,504 2,419 2,317 9,727 9,618 Provision for credit losses 355 325 314 1,230 1,574 Non-interest expenses(2) 1,355 1,285 1,249 5,173 5,209 Income tax expense 108 126 140 629 648 Net income $ 686 $ 683 $ 614 $ 2,695 $ 2,187 Net income attributable to non-controlling interests in subsidiaries 36 52 79 249 332 Net income attributable to equity holders of the Bank $ 650 $ 631 $ 535 $ 2,446 $ 1,855 (1) Refer to Non-GAAP Measures starting on page 22 for the reconciliation of reported and adjusted results. (2) Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended October 31, 2022 – $9 (July 31, 2022 – $10; October 31, 2021 – $10) and for the year ended October 31, 2022 – $39 (October 31, 2021 – $45). Net income Q4 2022 vs Q4 2021 Net income attributable to equity holders was $643 million, compared to $528 million, up $115 million or 22%. Adjusted net income attributable to equity holders was $650 million, an increase of $115 million or 21%. This increase was driven by higher net interest income and lower provision for income taxes, partly offset by higher non-interest expenses, higher provision for credit losses and lower non-interest income.   Q4 2022 vs Q3 2022 Net income attributable to equity holders increased by $18 million or 3% from $625 million. Adjusted net income attributable to equity holders increased by $19 million or 3%, compared to $631 million last quarter. This increase was driven by higher net interest income, and non-interest income and lower provision for income taxes, partly offset by higher non-interest expenses and higher provision for credit losses. Financial Performance on a Constant Dollar Basis International Banking business segment results are analyzed on a constant dollar basis which is a non-GAAP measure (refer to Non-GAAP Measures starting on page 22). Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported, adjusted and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers to understand business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. The tables below are computed on a basis that is different than the "Impact of foreign currency translation" table on page 4. Ratios are on a reported basis. The discussion below on the results of operations is on a constant dollar basis. Reported results on a constant dollar basis For the three months ended For the year ended (Unaudited)($ millions) October 31  July 31  October 31  October 31  October 31  (Taxable equivalent basis) 2022 2022 2021 2022 2021 Net interest income $ 1,806 $ 1,786 $ 1,622 $ 6,900 $ 6,478 Non-interest income 698 640 700 2,827 2,874 Total revenue 2,504 2,426 2,322 9,727 9,352 Provision for credit losses 355 328 323 1,230 1,534 Non-interest expenses 1,364 1,311 1,278 5,212 5,149 Income tax expense 106 114 130 618 605 Net income $ 679 $ 673 $ 591 $ 2,667 $ 2,064 Net income attributable to non-controlling interests in subsidiaries 36 52 76 249 308 Net income attributable to equity holders of the Bank $ 643 $ 621 $ 515 $ 2,418 $ 1,756 Other Measures Average assets ($ billions) $ 217 $ 213 $ 195 $ 207 $ 190 Average liabilities($ billions) $ 160 $ 158 $ 147 $ 152 $ 144 Adjusted results on a constant dollar basis For the three months ended For the year ended (Unaudited)($ millions) October 31  July 31  October 31  October 31  October 31  (Taxable equivalent basis) 2022 2022 2021 2022 2021 Net interest income $ 1,806 $ 1,786 $ 1,622 $ 6,900 $ 6,478 Non-interest income 698 640 700 2,827 2,874 Total revenue 2,504 2,426 2,322 9,727 9,352 Provision for credit losses 355 328 323 1,230 1,534 Non-interest expenses 1,355 1,302 1,268 5,173 5,107 Income tax expense 108 117 134 629 616 Net income $ 686 $ 679 $ 597 $ 2,695 $ 2,095 Net income attributable to non-controlling interests in subsidiaries 36 51 76 249 309 Net income attributable to equity holders of the Bank $ 650 $ 628 $ 521 $ 2,446 $ 1,786 Net income Q4 2022 vs Q4 2021 Net income attributable to equity holders was $643 million, compared to $515 million. Adjusted net income attributable to equity holders was $650 million, an increase of $129 million or 22%. This increase was driven by higher net interest income and lower provision for income taxes, partly offset by higher non-interest expenses, and higher provision for credit losses.   Q4 2022 vs Q3 2022 Net income attributable to equity holders increased by $22 million or 4% from $621 million. Adjusted net income attributable to equity holders increased by $22 million or 4%, compared to $628 million last quarter. This increase was driven by higher non-interest income, net interest income, and lower provision for income taxes.  This was partly offset by higher non-interest expenses and higher provision for credit losses. Total revenue Q4 2022 vs Q4 2021 Revenues were $2,504 million, an increase of $182 million or 8%, driven by higher net interest income. Q4 2022 vs Q3 2022 Revenues increased by $78 million, or 3%, driven by higher non-interest income and net interest income. Net interest income Q4 2022 vs Q4 2021 Net interest income of $1,806 million was up 11%, driven by growth in commercial loans and residential mortgages, as well as margin expansion. Net interest margin increased by 30 basis points to 4.08%, due mainly to higher central bank rates, and inflationary adjustments, partly offset by higher funding costs and changes in deposits mix. Q4 2022 vs Q3 2022 Net interest income increased by $20 million, or 1%, driven by growth in commercial loans and residential mortgages, and margin expansion. Net interest margin increased by 13 basis points to 4.08%.  Non-interest income Q4 2022 vs Q4 2021 Non-interest income was $698 million, in line with previous year, with net fees and commissions growing 6%.  This was offset by lower capital market revenues and gains on investment securities compared to last year. Q4 2022 vs Q3 2022 Non-interest income increased by $58 million or 9%, driven by net fees and commissions and capital markets revenues. Provision for credit losses Q4 2022 vs Q4 2021 The provision for credit losses was $355 million, compared to $323 million, an increase of $32 million or 10%. The provision for credit losses ratio decreased two basis points to 89 basis points. Provision for credit losses on performing loans was $35 million, compared to a net reversal of $97 million. The increase this period related to higher retail and commercial provisions, due mainly to the less favourable macroeconomic forecast, as well as growth in the retail portfolio. Provision for credit losses on impaired loans was $320 million compared to $420 million, a decrease of $100 million or 24%.  This was due mainly to lower retail provisions driven by lower formations primarily in Peru and Colombia. The provision for credit losses ratio on impaired loans was 81 basis points, a decrease of 37 basis points. Q4 2022 vs Q3 2022 The provision for credit losses was $355 million, compared to $328 million, an increase of $27 million or 8%. The provision for credit losses ratio increased five basis points to 89 basis points. Provision for credit losses on performing loans was $35 million, compared to $62 million last quarter, a decrease of $27 million due primarily to lower retail provisions as prior period included a higher impact of the unfavourable macroeconomic forecast. Provision for credit losses on impaired loans was $320 million compared to $266 million, an increase of $54 million or 21% due primarily to higher retail provisions driven by higher formations across markets. The provision for credit losses ratio on impaired loans increased 13 basis points to 81 basis points. Non-interest expenses Q4 2022 vs Q4 2021 Non-interest expenses were $1,364 million, up 7%. Adjusted non-interest expenses were $1,355 million, up 7%, driven by business growth and inflationary impacts, partly offset by the benefit of efficiency initiatives. Q4 2022 vs Q3 2022 Non-interest expenses were $1,364 million compared to $1,311 million, an increase of 4%. Adjusted non-interest expenses increased by $53 million or 4% from $1,302 million last quarter, driven by business growth, inflationary impacts, partly offset by the benefit of efficiency initiatives. Provision for income taxes Q4 2022 vs Q4 2021 The effective tax rate was 13.5%, compared to 18.4%. On an adjusted basis, the effective tax rate was 13.6% compared to 18.6%, primarily due to higher inflationary adjustments in Mexico and Chile, and changes in the earnings mix. Q4 2022 vs Q3 2022 The effective tax rate was 13.5%, compared to 15.4%. On an adjusted basis, the effective tax rate was 13.6% compared to 15.5% due primarily to a prior period tax recovery and higher inflationary adjustments in Mexico and Chile. Average assets Q4 2022 vs Q4 2021 Average assets were $217 billion, an increase of $22 billion. Total loan growth of 12% was driven by a 16% increase in residential mortgages, a 12% increase in commercial loans, and a 9% increase in personal loans and credit card balances. Q4 2022 vs Q3 2022 Average assets increased by $4 billion. Loans grew by 2%, driven by a 4% increase in residential mortgages, a 2% increase in commercial loans and a 2% increase in personal loans and credit card balances. Average liabilities Q4 2022 vs Q4 2021 Average liabilities of $160 billion were up $13 billion. Total deposits increased 8%, driven by a 12% increase in non-personal deposits and a 1% increase in personal deposits. Q4 2022 vs Q3 2022 Average liabilities were up $2 billion. Total deposits increased by 2%, driven by a 2% increase in non-personal deposits and a 1% increase in personal deposits. Global Wealth Management For the three months ended For the year ended (Unaudited)($ millions) October 31  July 31  October 31  October 31  October 31  (Taxable equivalent basis)(1) 2022 2022 2021 2022 2021 Reported Results Net interest income $ 206 $ 200 $ 161 $ 764 $ 628 Non-interest income 1,083 1,112 1,186 4,617 4,752 Total revenue 1,289 1,312 1,347 5,381 5,380 Provision for credit losses 1 5 1 6 2 Non-interest expenses 798 796 824 3,259 3,255 Income tax expense 127 133 135 551 549 Net income $ 363 $ 378 $ 387 $ 1,565 $ 1,574 Net income attributable to non-controlling interests in subsidiaries 2 2 2 9 9 Net income attributable to equity holders of the Bank $ 361 $ 376 $ 385 $ 1,556 $ 1,565 Other measures Return on equity(2) 14.8 % 15.5 % 16.3 % 16.2 % 16.7 % Assets under administration ($ billions) $ 580 $ 581 $ 597 $ 580 $ 597 Assets under management ($ billions) $ 311 $ 320 $ 346 $ 311 $ 346 (1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2022 Annual Report to Shareholders. (2) Refer to Non-GAAP Measures starting on page 22.   For the three months ended For the year ended (Unaudited)($ millions) October 31  July 31  October 31  October 31  October 31  (Taxable equivalent basis) 2022 2022 2021 2022 2021 Adjusted Results(1) Net interest income $ 206 $ 200 $ 161 $ 764 $ 628 Non-interest income 1,083 1,112 1,186 4,617 4,752 Total revenue 1,289 1,312 1,347 5,381 5,380 Provision for credit losses 1 5 1 6 2 Non-interest expenses(2) 789 787 815 3,223 3,219 Income tax expense 129 135 137 560 558 Net income $ 370 $ 385 $ 394 $ 1,592 $ 1,601 Net income attributable to non-controlling interests in subsidiaries 2 2 2 9 9 Net income attributable to equity holders of the Bank $ 368 $ 383 $ 392 $ 1,583 $ 1,592 (1) Refer to Non-GAAP Measures starting on page 22 for the reconciliation of reported and adjusted results. (2) Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended October 31, 2022 – $9 (July 31, 2022 – $9; October 31, 2021 – $9) and for the year ended October 31, 2022 – $36 (October 31, 2021 – $36). Net income Q4 2022 vs Q4 2021 Net income attributable to equity holders was $361 million, a decrease of $24 million or 6%, due primarily to lower fee income, partly offset by higher net interest income and lower volume-related expenses. Q4 2022 vs Q3 2022 Net income attributable to equity holders decreased $15 million or 4%, from lower fee income, partly offset by higher net interest income. Total revenue Q4 2022 vs Q4 2021 Revenues were $1,289 million, down $58 million or 4% due primarily to lower fee income driven by lower AUM and trading volumes, partly offset by higher net interest income driven by strong loan growth and improved margins. Q4 2022 vs Q3 2022 Revenues were down $23 million or 2% due primarily to lower fee income driven by lower AUM reflecting current market conditions. Provision for credit losses Q4 2022 vs Q4 2021 The provision for credit losses was $1 million, unchanged from last year. Q4 2022 vs Q3 2022 The provision for credit losses was $1 million, a decrease of $4 million. The provision for credit losses ratio was two basis points. Non-interest expenses Q4 2022 vs Q4 2021 Non-interest expenses of $798 million were down $26 million or 3%, driven largely by lower volume-related expenses. Q4 2022 vs Q3 2022 Non-interest expenses were in line with last quarter as lower volume-related expenses were largely offset by technology costs to support business initiatives. Provision for income taxes The effective tax rate was 25.8% compared to 25.9% in the prior year and 26.1% in the prior quarter. Assets under management (AUM) and assets under administration (AUA) Q4 2022 vs Q4 2021 Assets under management of $311 billion decreased $35 billion or 10% driven by market depreciation. Assets under administration of $580 billion decreased $17 billion or 3% due primarily to market depreciation, partly offset by higher net sales. Q4 2022 vs Q3 2022 Assets under management decreased $9 billion or 3%, and assets under administration decreased by $1 billion, due primarily to market depreciation. Global Banking and Markets For the three months ended For the year ended (Unaudited)($ millions) October 31  July 31  October 31  October 31  October 31  (Taxable equivalent basis)(1) 2022 2022 2021.....»»

Category: earningsSource: benzingaNov 29th, 2022

Personal Finance Daily: This workplace trend ‘can only help’ retailers hoping for big Cyber Monday profits and why GM dealers are quietly repairing Teslas

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Category: topSource: marketwatchNov 28th, 2022