Posts Tagged ‘fund’

“…the world has been binging on debt like never before.

The International Monetary Fund reported last month that total nonfinancial-sector debt has ballooned to an all-time record of $152 trillion… while the global debt-to-GDP ratio has also soared to an all-time high of 225%, up from 200% just 14 years ago.

Worse, we’re seeing record debt at the government level, the corporate level, and the consumer level (via auto and student loans, in particular). The boom in corporate borrowing is especially concerning…

U.S. companies have already borrowed $1.4 trillion this year to date, according to data firm Dealogic. This is on pace to shatter last year’s previous all-time record of $1.5 trillion.

Unfortunately, most are using this money to refinance existing loans… buy back stock and pay dividends… and finance expensive (and often questionable) mergers and acquisitions. This will do little to help the economy. But it greatly increases leverage… and risk.” -Justin Brill

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The investment-advisory industry is a huge, multi-billion dollar business based on hard work, clever thinking, and sophisticated algorithms….  [T]he unfortunate truth is that the financial establishment rarely looks beyond stocks and bonds.  And if you think about it, why would it want to?  It makes its money by ushering you from one ‘hot’ stock or ‘amazing’ fund to the next….  Because they know that you have heard that ‘diversification of assets’ is good, financial advisers give you the illusion of diversification by filling your stock portfolio with businesses that are ‘diversified’….  But at the end of the day, it’s all invested in stocks or stock derivatives.

Asset allocation is the process by which you spread your wealth across different sorts of investments….  Over the years, I have made hundreds of individual financial decisions….  I could see very clearly that it was not particular buy/sell decisions that accounted for this good fortune.  It was the general decisions about asset allocation that paid off.” -Mark Ford

Support Yourself

Posted: August 2, 2016 in Money Matters
Tags: , , , , , ,

“Don’t expect anyone else to support you.  Maybe you have a trust fund.  Maybe you’ll have a wealthy spouse.  But you never know when either one might run out.” -Mary Schmich

Banks are the growth engine of an economy. They make loans to fund new businesses, construction, and consumer spending. And they collect the ‘spread’ between what the short-term rates pay to borrow and the long-term rates they earn when they lend.” -Porter Stansberry

“Rather than inheriting lump sums of money, they’ll inherit an interest in a ‘family fund’.  The purpose of that fund is to help individual family members enrich their lives.  But how they do that must make sense.

Children can borrow from the fund.  But if they do, they must return the borrowed money with interest.  They can use the money to start businesses or pursue educations, but they can’t use it to buy sports cars or yachts.

They should also help the fund grow in value.  That way, when they die, it’s larger than it was—large enough to help their own children.” -Mark Ford

“The purpose of the fund [family fund] is to help individual family members enrich their lives…. Children can borrow from the fund. But if they do, they must return the borrowed money with interest. They can use the money to start businesses or pursue educations, but they can’t use it to buy sports cars or yachts.” -Mark Ford

“What really happens is the financial industry borrows funds at a rate of interest near zero to make mortgage loans. Aided and abetted by Fannie Mae, it is now landlord to 44 million Americans. The poor “homeowner” is turned into a mortgage slave. He is stuck for life – or longer – making payments on a house that cost the financial industry nothing.” -Bill Bonner