Personal Financier

RSS Feed Homepage

Articles: 1, 2, 3, 4, 5, 6, 7

Investment Basics Carnival #1: Mutual Funds, Investment Psychology and More
2007-11-22 15:49:00
Welcome to the first Investment Basics Carnival . This carnival is my initiative and will hopefully display great articles on investment basics. This first addition received a surprising 22 submission total. The selected entries are separated into categories. If you enjoy this carnival please help promote it on your website.Mutual Funds 1. Larry Russell presents Where?s Waldo? - The illusion of superior professional mutual fund manager performance. posted at THE SKILLED INVESTOR Blog2. Steve Faber presents - How to Find the Best Performing Mutual Funds posted at DebtBlogInvestment Psychology 1. Silicon Valley Blogger presents Taking The Emotion Out Of Stock Investing posted at The Digerati Life2. Mark U Runta presents Breaking Rule # 1 of Investing posted at Smart Investing & Money ManagementTransaction CostsKCLau presents How to Minimize the Upfront Service Charge in Unit Trust Investment posted at KCLau's Money TipsPoetryMarket Poetry presents Ode to All Struggling Value Investo...

Iran's President Ahmadinajad On The US Dollar: "Worthless Piece of Paper"
2007-11-21 22:38:00
Iran's president Mahmud Ahmadinejad said out loud what OPEC members have been discussing in closed doors (with an open mic, by accident). According to Ahmadinejad OPEC should stop selling and pricing oil in dollars as a result of the continuing weakness of the currency. Further more, OPEC members have experienced interest in converting reserves to other currencies.Ahmadinejad's remark actually resulted in increased negative pressure on the American currency. Iran is walking a very tight rope signaling possible retaliations to US imposed sanctions due to its nuclear program.The impact of OPEC converting to the Euro as a working currency is hard to predict. Oil is a commodity as any other. Commodity pricing should not change as a result of changing a currency. However pricing oil in euros combined with a continuing weakness of the US dollar will eventually result in higher oil prices which should up the pressures in the US for alternatives to fossil fuels. Is this a blessing in disg...
More About: Politics , President , Dollar , Paper , Piece

Motivation Through Job Enrichment: What Are The Key Components?
2007-11-19 21:26:00
Motivating employees is always one of every manager?s goals. Motivated employees contribute to productivity thus directly increasing profitability for the organization. Structuring jobs and roles correctly is very important in elevating the motivation of employees.The main stream theory on motivation in general is based on Maslow?s needs hierarchy. Maslow?s constitutes a hierarchy of needs made of: Existence, Security, Social Relations, Esteem/Reputation, Autonomy and Self Realization. Every person strives to progress in the pyramid from existence to self realization. Motivation stems from the next unattained level. Each step forward is accompanied by satisfaction and each step back with frustration.As most employees have realized the basic need in the hierarchy as existence, security and social relations motivation stems from the attempt to attain esteem, autonomy and self realization. Hence efforts to increase motivation should concentrate on providing employees with the proper ch...
More About: Leadership , Components

The Carnival of Personal Finance #127 - Hosted by Moolanomy
2007-11-19 20:06:00
I'd like to take the opportunity and thank Moolanomy for hosting The Carnival of Personal Finance #127 and choosing to include my article on Investing mistakes to avoid. I've personally found the following posts very interesting:1. The Dough Roller presents Slow Motion Retirement (or Retire Early, Retire Often)2. Home Finance Freedom presents Payoff Mortgage v. Invest Stocks: Housing Myths Part 123. Advanced Personal Finance presents The Most Misunderstood Tax - The Estate Tax
More About: The Car

Update of Freelance Writing Income Online
2007-11-18 21:48:00
I've updated my online freelance writing income.I've been quite successful at constant-content and have sold 6 articles for usage licenses. It is really quite profitable as sums of 10$-25$ an article are very hard to get elsewhere.On Helium there hasn't been a lot of personal finance publishers lately and page views have generated very little income so far (about 4.5$).Associated Content's page views update every week so I'm unable to update page view income from AC.My blog has began to generate some traffic (approx. about 20 visitors a day). Hopefully this will enable me to learn which content is more sought after by my readers.
More About: Writing , Freelance , Income , Online , Update

Could You Tell If You Were Just A Brain In A Vat?
2007-11-18 21:36:00
Movies like ?Total Recall?, ?Vanilla Sky? and of course ?The Matrix? have already posed that question. In these movies a hero is trapped in a virtual reality so real he could not know the difference between being and being a brain wired to receive stimulations that create an identical alternative reality.Being movies, they all ended happily for our prospected ?brain in a vat? whether it is Kiano Reeves, Tom Cruise or Arnold Schwarzenegger. Schwarzenegger could tell it was no dream, Tom cruise chose to leave his lucid dream and Reeves, of course, took the blue pill.But could one really know the difference between being and being a brain in vat? The concept of brain in a vat is a known philosophical thought experiment. In this experiment a brain sits in a lab, wired to a computer of sorts, and receives electrical pulses which stimulate the brains neurons to create a virtual reality full of feelings, smells, sights and sounds. The brain?s previous owner is oblivious to its current exi...
More About: Brain , Were

The Causes of Organizational Commitment: How to Create the Suitable Environ
2007-11-18 18:41:00
Organizational commitment is very influenced by organizational design. In order to create commitment in the organization managers must create a suitable environment for it to evolve.In principal manager who wish to create a suitable environment for commitment must strive to adopt characteristics of an organizational design which reduces class identity and increases company identity.There are several, independent, ways to achieve higher levels of company Identity. In this article I will discuss some of the most common and effective ones.1. Fine hierarchy ? The opposite of manager/ employee hierarchy is a type of hierarchy which is understated. A message of self efficacy should be relayed: ?Everyone can become a manager?. As every message this message should be composed of three elements: The source, the message and the target audience. For example, in order to create a finer hierarchy, managers might adopt a more collective decision process such as consulting with a team. This does n...
More About: Leadership , Commitment , Create , Suit , Envi

Outsourcing: Why Outsource? Potential Benefits and Risks
2007-11-15 23:04:00
Outsourcing has quickly become a commonly used tool in organizations. What has made outsourcing so popular? The popularity of outsourcing is well justified as it generates significant advantages. However, outsourcing has some inherent risks which should be identified and dealt with preemptively.Why Outsource then? Organizations make use of outsourcing when a certain function has a potential to become more economic with little strategic cost to the organization. Outsourcing is usually used if one of the following applies to the specific function required:1. Special skills are required and it is unwise to invest in their development within the organization ? It is wise to outsource if it is not economically sound to invest in developing a set of skills. Another consideration should be the quality of skills developed in comparison to those available outside the organization.2. Not a core-competence of the organization ? If a specific function required to an organization is not a part o...
More About: Outsourcing , Benefits , Decision making

The Carnival of Personal Finance #126 - Hosted by Million Dollar Journey
2007-11-15 17:06:00
I'd like to take the opportunity and thank Million Dollar Journey for hosting The Carnival of Personal Finance #126 and choosing to include my article on Investing mistakes to avoid.Excellent articles have been chosen to appear in the carnival and I urge you to take the time and visit.
More About: Personal Finance

How to Measure a Blog Posts Popularity - A Novel Idea
2007-11-14 18:34:00
I've been posting quite a few about content sites. I've recently thought about an interesting idea of how to measure which topics are more interesting to readers.I've been posting on Associated Content and Helium for about a month now. It occurred to me that Associated Content's Page Views or Helium article earnings can be used to measure the popularity of certain topics or issues. This can only be achieved, of course, if you have enough articles with relatively constant quality on various subjects.In my case I found the following results which surprised me quite a bit:1. 2 out of 25 articles, both dealing with managing employees, generated 33% of page views. 2. Further down the list 16 investment related articles generated another 50% of page views2. Last came other personal finance issues like credit cards and mortgages with 7 articles for 18% of page views.This astounds me as the two articles on managing employees where of the same relative quality as the others.This finding...
More About: Blog , Idea , Posts , Popularity , Pula

Economies of Content: Should you Post your articles to a personal Blog or t
2007-11-13 22:11:00
This blog started out as a series of articles written for Helium. I discovered Helium by mistake and immediately discovered the joys of writing. After posting several personal finance articles to Helium an obvious thought occurred to me. Why not take these articles and start my own personal finance blog?Having set up my blog I continued writing at Helium and also began posting the articles I?ve written to my blog. A couple of weeks later I found associated content and Constant-content and began to ponder the wisdom of posting to content sites vs. posting to your own blog.Obviously the following tradeoffs need to be considered:1. Exposure ? Starting your own blog is easy. Getting exposure is the hard part. Post s to content sites gain exposure quite rapidly (depending on quality of course). Getting regular readers for you blog is another matter entirely which requires to put in extra time and marketing efforts.2. Profitability ? If you are posting for additional income a careful consi...
More About: Personal , Articles , Strategy , Blog

Associated Content's Clout Index and Helium Stars: Brilliant Motivators
2007-11-12 21:46:00
I've been posting articles to Helium and Associated Content for a while now. While this might lack complete economic reason the joys of writing are many. However, I've recently began to reflect upon AC's Clout Index and Helium's Stars as marketing tools.It is fairly obvious content sites must have a way of distinguishing authors of quality. Helium awards stars as a function of ranking and quantity and AC has their clout index to indicate how many view an author has received. The simple ingeniousness behind establishing these indicators is creating another motivation for authors, other then money to posting quantity and quality.If you've been posting to Helium or AC stop and think about it. Haven't you been trying ranking and writing for more stars for the sake of the stars themselves? Haven't you been posting to AC like crazy to receive recognition in the form of a little Saturn like dots? Haven't these indicators became a goal in themselves?As humans I believe we constantly...
More About: Brilliant

Valuation Methods ? Discounting Cash Flows vs. Using Multiples
2007-11-12 16:58:00
Discounting cash flows (DCF) is the preferred way to valuating a firm?s worth but is a lengthy process which requires skill and expertise. Using multiples for valuations is convenient and straightforward but it can also be very misleading. And that is an understatement.In DCF a firm?s future cash flows are used to determine its current value by adjusting for risk and time. Multiples such as profit, capital, assets and sales are used to determine values of companies by comparing similar companies to one another and by direct multiplying. Multiples are also used to compare various companies in terms of profitability, effectiveness and more. The most common use of profit multiples, for example, is in comparing valuations of similar companies in the same industry.For a better understanding of valuation techniques and the appropriate use them a look into the pros and cons of each valuation technique is required. Obviously the shortfalls of one technique are the other?s advantages. Here a...
More About: Concepts , Compare , Cash , Methods , Method

Israel to Support New Electric Car Initative
2007-11-11 16:28:00
The Israel i government has announced its support of an electric car initiative named "Project Better Place". The initiative is headed by Shay Agasi, a former senior VP in the software giant SAP. The initiative has already raised approximately 200 million dollars from strategic investors.The innovative strategy adopted by the company is to create a business model very much the same as the one used by cellular companies. The company will deploy a vast network of charging stations across countries which will enable it to sell cars cheaply with binding, long term, recharging contracts.This strategy will be complemented by its implementation in small, island like countries such as: Japan, Denmark, Hong Kong and Israel.In my opinion this will be a very interesting initiative, well worth observing. The potential benefits of this initiative are obvious to everyone - reducing green house gas emissions and, of course, reducing global dependency on fossil fuels and the countries that produce t...
More About: Support , Electric , Electric Car

Content Sites Compared: Helium, Associated Content and Constant Content
2007-11-10 12:44:00
This blog started out as a series of articles written for Helium . I discovered Helium by mistake and immediately discovered the joys of writing. After posting several personal finance articles to Helium and after starting my own blog I found associated content and Constant-content. The following is a summary of the comparison of these content publishing sites: Constant Content Constant Content strategy simplified is selling quality articles for publishers for either usage, unique of full rights use.Constant Content has high quality standards and examines every article submitted. Authors name their price for either usage, unique or full rights use and get paid when publishers buy their articles. Prices for 500 word article vary for usage (7$-15$), unique (50$-70$) or full rights (70$-90$). Authors are paid 65% of the price. Constant Content is more suitable for competent established authors which have the ability to produce quality content.HeliumHelium?s strategy simplified is generat...
More About: Sites , Associated Content , Associate

Basic Human Rules for Creating World Wide Movements
2007-11-10 12:17:00
Tim Castree has recently created a difference. Mr. Castree is the CEO of Leo Brent Australia and has successfully turned the lights off at Sidney Australia for one hour ? ?Earth hour?. 2.2 Million People participated in this initiative that resulted in a decrease of 10.2% in Sidney carbon emissions.According to Castree there are seven basic human rules for creating world wide movements such as facebook or Earth hour which are first and foremost about marketing:1. The need to be a part of something ? People are imprinted with a strong urge to belong and follow.2. Identifying with successful people ? Recruiting celebrities for people to identify with.3. Self expression ? People need and want self expression. Creating a buzz and excitement is necessary. An issue should be made accessible to people.4. Work is not divided equally ? Game theory describes how people tend to do less in larger groups. The wisdom is letting passionate people lead and others to join.5. Motivation and inspirati...
More About: World , Human , Wide , Rules

Make yourself a Desired Employee
2007-11-08 22:44:00
I doubt there is such a thing as an ideal employee as everything in life is context related. There are however key characteristics of employees which are most desirable by organizations.Positioning and branding one self as having these characteristics is a right step on the way to success:1. Professionalism ? First and foremost an employee is hired to perform a task or service. Professionalism is the very fundamental requirement from any desirable employee.2. Curiosity ? An employee should be curious of his job and his surroundings. Employee and organizational evolution stems from employee curiosity and the drive to explore processes and methodologies.3. Solution oriented ? A solution oriented employee is an asset. Most people tend to focus on the problem and to seek guidance and counsel. Some, if mentored, can understand and adopt solution oriented behavior which requires self-confidence and assertiveness. When given an assignment or issue to address a solution oriented employee ac...
More About: Career , Make

Make yourself a Desired Employee
2007-11-08 22:44:00
I doubt there is such a thing as an ideal employee as everything in life is context related. There are however key characteristics of employees which are most desirable by organizations.Positioning and branding one self as having these characteristics is a right step on the way to success:1. Professionalism – First and foremost an employee is hired to perform a task or service. Professionalism is the very fundamental requirement from any desirable employee.2. Curiosity – An employee should be curious of his job and his surroundings. Employee and organizational evolution stems from employee curiosity and the drive to explore processes and methodologies.3. Solution oriented – A solution oriented employee is an asset. Most people tend to focus on the problem and to seek guidance and counsel. Some, if mentored, can understand and adopt solution oriented behavior which requires self-confidence and assertiveness. When given an assignment or issue to address a solution oriented emplo...
More About: Make

Using Multiples for Valuations: Pros and Cons
2007-11-04 19:58:00
Using multiples for evaluations is convenient and straightforward but it can also be very misleading. And that is an understatement.Various multiples such as profit, capital, assets and sales multiples are used to compare various companies in terms of profitability, valuation, effectiveness and more. The most common use of profit multiples, for example, is in comparing valuations of similar companies in the same industry.The advantages of using multiples are obvious:1. Simplicity - Extrapolating data is easy and multiplying is very basic math.2. Informative - Using multiples often yield significant data in a short time.3. Does not require forecasts - Unlike other methods of valuations multiples use existing date (which is, of course, their Achilles heel).However, one must also pay careful attention to the shortfalls of using multiples:1. Sensitivity to various accounting choices and alternatives - A different method of revenue recognition adopted by a company might distort a profit ...
More About: Investment , Cons , Valuation

Understanding the difference bewtween investing and gambling
2007-11-03 17:20:00
While this title sounds intuitive many so called investors are in fact gamblers. In order to substantiate the difference between the two we need to a closer look in to the basics of investing.When we invest money in a financial asset we are basically risking a sum of money for potential future return. Financial assets vary by risk and return. The latter two are tightly bound in a reverse relationship the higher the risk the higher the potential return. For example, some of the least risky financial assets (or risks free) are cash deposits and government bonds where the chances of losing your investment are slim and returns are known at the time of investment. At the other hand we have options and derivatives which offer high risks with high potential returns.Now, what exactly is risk of a financial asset? Think about any raffle or draw. A financial asset is very like one. A coin toss for example has a 50% chance to land on tails or heads. Buying a specific financial asset holds the ...
More About: Stocks , Investment , Concepts , Investing , Gambling

Creating and managing effective teams in the workplace
2007-11-03 13:18:00
Teams have the potential of exponentially empowering an organization as every member completes the other and in turn creates synergy. Creating and managing effective teams is a challenge worth taking on as the benefits of synergy are a great reward.This article will offer tools and thoughts on how to create and manage effective teams in the workplace.Management theory identifies a team as 3 or more members with the opportunity to create hierarchies and interactions amongst them (therefore a large group of people is not a team).There are three distinct types of teams:1. Organic teams - Teams which are supported by an organizational structure.2. Project teams - Teams which are assembled for a specific project.3. Non-organic teams - Teams which are assembled in an organization for a specific process or task or multi-disciplinary teams.In every team the manager plays a role in which professional as well as procedural guidance holds an extremely important place.Effectiveness of teams can...
More About: Business , Workplace , Leadership , Teams

How to manage change in business
2007-11-02 11:33:00
Many potentially good initiatives fail due to a lack of strategy and misunderstanding. How should change be managed?While the purpose of the initiative is often clear the way to implement it is shrouded in mist. Many organizational change initiatives often fail at implementation. While the benefits of the process are usually very clear and understandable it is a whole other matter getting the organization to willingly adopt the change.As any process organizational change must begin with a strategy. What is the purpose of the change process but also: How to market it, how to introduce it to the organization and how to ensure employees and co-workers will willingly adopt it?A few common mistakes in managing change have been mentioned in Laurent Keller Johnson?s article for Harvard Business Monday Morning (Leading Change and Succeeding). The following are common mistakes of poorly managed change processes:1. Take the time to study organizational cultureChange will not happen on its mer...
More About: Politics , Strategy , Leadership

Common sense advice for credit card use
2007-11-02 10:49:00
The use of credit cards is very convenient but without a good level of consumer awareness might become a highway into financial distress.Credit cards are a very efficient payment method as you can keep track of all your purchases, make use of promotions and of course do without cash and checks and the logistics involved. However, for the unwary, credit cards are also means of encouraging higher consumption which is not always needed.Educated consuming is always recommended and is strongly advised in the case of credit cards as well.A couple of do?s and don?ts for a more efficient use of credit cards:DON?TS 1. Do not pay on installmentsPaying on installments often helps buy that desired item today instead of in a couple of months. But paying on installments also has a few major disadvantages. Paying on installments creates an illusion of extra funds which, in turn, can be used to purchase another item, on installments of course. This method of purchase quickly leads to lose of contro...
More About: Advice , Sense , Card , Common

Key psychological factors in stock market success
2007-10-14 22:52:00
Much has been written on the part of psychology in stock market success. This lesson is probably the easiest to learn and hardest to implement. Psychology is everywhere in the stock market and effects all from the novice to the most professional (aside for computers).Many investors make the same mistakes over and over again. Mistakes such as: selling profitable stocks too soon, holding on to losing stocks forever or lacking the discipline to stay in the market and avoid frequent buying and selling are all a result of poor understanding of key psychological factors required to succeed in the stock market. Common psychological factors at play in the stock market are:AnchoringAnchoring is a psychological phenomenon in which one judges data (a stock price or exchange rate) by comparing it to a certain anchored similar data. Is 1 euro for 1.4 $ expansive? Since it has been cheaper we tend to think it is more expansive now, but is it? Just because market prices are high it does not mean t...
More About: Stocks , Stock Market , Market , Strategy , Investment

Some rules for speculating
2007-10-14 22:19:00
If you're afraid to lose a significant share of your investment do not read on. If you're tempted by the potential of speculative investment and have the money to back it up by all means, read on. In order to achieve highly abnormal returns we need to take highly abnormal risks.Please note speculative investing is very similar to gambling (if not the same). A speculator does just that: Speculates. This article should be read carefully and by no means be used a guide for investing soundly. If you are going for speculative investment following some of the following rules might help you along your dangerous journey.Invest in trendy sectorsCommodities of Ecology have proved very profitable these last few years. Try and locate the more trendy sectors earlier on and invest in leading companies in those sectors. It is difficult to locate these sectors but by keeping up to date and with a little luck you might just invest wisely.Buy OTM optionsWhile more often then not buying out of money...
More About: Stocks , Strategy , Rules , Some

Un Millennium development goals - Analysis and observation using Gapminder
2007-10-09 21:51:00
Not many people are aware of the UN's humanitarian work. The image of the UN is most often that of the general assembly or Security Council unable to make progress or act on various global issues.Even less are aware the UN has set explicit millennium development goals.I've stumbled upon a very interesting tool available on the UN MDG (Millennium development goals) site. It's called Gapminder and it clearly visualizes the MDG over time, geography and income levels for each primary and secondary goals. It is a most important tool to learn of the world we are living in. For Gapminder follow this link.The UN's millennium development goals are:1. Eradicate extreme poverty and hungera. Reduce by half the proportion of people living on less than a dollar a dayb. Reduce by half the proportion of people who suffer from hunger2. Achieve universal primary education - Ensure that all boys and girls complete a full course of primary schooling3. Promote gender equality and empower women - Eli...
More About: Analysis , Development , Goals , Anal

Switching to CFL (compact fluorescent lamp)
2007-10-08 22:30:00
According to Wikipedia: "A compact fluorescent lamp (CFL), also known as a compact fluorescent light bulb is a type of fluorescent lamp designed to replace an incandescent lamp. Many CFLs can fit in the existing incandescent light fixtures."An interesting article I read today mentioned the following facts:1. CFL's take up to 70%-80% less electricity compared to incandescent lamps.2. CFL's living span is up to 6 to 10 times that of an incandescent lamp.3. 11w of CFL power is equal to 60w of incandescent lamp power.4. Changing 10 lamps to CFL's will result in a yearly saving of up to 150$.5. Most of the power in an incandescent lamp is wasted on heat not light.6. California will soon ban the use of incandescent lamps. In Europe a similar law is currently drafted and in Australia the use of these lamps will be banned by 2010.A classic win win situation in my opinion.
More About: Lamp , Compact , Switching , Fluorescent , Witch

How to tell if a mutual fund is well managed
2007-10-08 20:43:00
The only way to tell if a mutual fund is well managed is to benchmark its performance against the performance of similar mutual funds in the same time frame and against the return achieved by the index or financial asset in which it specializes. Similar mutual funds for this matter are funds invested in the same financial assets whether it's bonds, stocks or any other financial asset such as derivatives.If we wish to determine if a certain mutual funds which invests in NASDAQ stocks is well managed we should first and foremost compare it to other mutual funds invested in NASDAQ stocks.When trying to determine if a mutual fund is well managed we should ask the following questions:Did the fund beat the market? Mutual fund s charge management fees. As a result we expect them to beat the return achieved by the specific index in which the fund specializes. Otherwise we should invest in the index directly by ETF's for example.What is the relation between market return (and other mutual f...
More About: Strategy , Mutual Funds , Fund

Investing mistakes to avoid
2007-10-07 23:13:00
Surprisingly, investors often make the same mistakes. It is even more surprising to find out even veteran investors often repeat the same mistakes over and over again. It is hard to resist our human nature but one must overcome one?s urges in order to become a successful investors. Here are the top 10 mistakes to avoid in my opinion:1) Investing in stocks for terms shorter then 5 years ? A thumb rule of investing is the relation between term of investment and the percentage of the portfolio invested in stocks. Usually, the share of your portfolio invested in stock should be around 100% minus your age (for long term only).2) Thinking you can outsmart the market ? Look for long term return on investment.3) Acting on the latest fad ? Do not take shortcuts. Check for fundamentals. If the talk of the day is the stock market, keep away.4) Frequent Trading ? Constantly buying or selling does not improve returns and is costly in terms of commissions.5) Constantly checking portfolio performa...
More About: Stocks , Strategy , Investment , Avoid

Pros and cons of reverse mortgages
2007-10-04 13:33:00
The significant advantage of reverse mortgages is clear. This financial tool enables seniors to make use of their home equity in order to increase their standards of living in their senior years which are often characterized by a shortage of liquidated financial resources. This is especially valuable when other family members are unable or refuse to aid the senior with his financial situation.A reverse mortgage requires no guarantees on the side of the borrower aside from the property itself.Another advantage of reverse mortgages is that it enables seniors to support other family members today instead of as an heirloom. It enables seniors to decide how and when to aid the potential heirs and is especially valuable when seniors still support their families.A reverse mortgage might also assist financing required payments for health care or nursing and also help finance the move to a retirement home.Last but not least a reverse mortgage is a great solution to avoid taxes on payments ma...
More About: Mortgages , Cons , Mort , Ages