Posted in Pursuit of Excellence

February 22, 2017

https://www.bloomberg.com/news/articles/2017-02-16/norway-central-bank-chief-warns-of-sharp-drop-in-wealth-fund

Norway’s central bank governor sharpened his warning on rising spending of oil revenue as he drew up scenarios for a 50 percent loss of capital over the next 10 years for the world’s biggest sovereign wealth fund. Governor Oystein Olsen said that the continued rise in oil cash spending, which now accounts for about 20 percent of the budget and 8 percent of gross domestic product, must now be halted to protect the $900 billion fund, the world’s largest sovereign pool of cash. “With a high level of oil revenue spending, there’s a risk of a sharp reduction in the fund’s capital,” Olsen said in the traditional Annual Address in Oslo Thursday. “This could, for example, happen if a global recession triggers both a decline in oil revenue and low or negative returns on the fund’s capital.”  This conservative government was forced to dip into this fund for the first-time to cover its budget and protect the economy amid plunging oil prices. The Norway central bank oversees the fund, and has been able to have outflows without selling assets, however there are worst case scenarios. For example, it sees a 1 percent chance of a 50 percent decline over 10 years if spending is kept at the current level of about 3 percent of the fund. If spending is raised to 4 percent that probability rises to about 5 percent. If the fund’s allocation to stocks is boosted to 75 percent from 60 percent, which is currently being discussed, the probabilities rise even further to about 2 percent and 6 percent, respectively. The government had come up with various strategies to replenish the fund such as increasing the stock portion in the fund. In the end, it’s a combination of monetary policy and fiscal spending which has saved Norway’s economy. “It must be recognized, however, that the longer-term challenges facing the Norwegian economy can’t be resolved by spending more oil revenue and keeping interest rates low,” he said in the speech, arguing the Norwegian economy needs more legs to stand on. My concern is the effect of our aging generations globally. As our baby boomers reach the retirement age, I believe there will be a shift in the stock markets, and this shift will affect pension plans, and a lot of the wealth funds globally. The question is how will these countries find ways to continue to increase their gross domestic product? How will the coming change from oil to electric affect established industries? Just as important, how will the changes in the next decade affect you?

http://www.business2community.com/social-media/social-video-dynamic-duo-marketing-2017-01777615#XkuWiUK8RxE1hB7I.97

The boundaries of social media are endless and the number of people you can reach through it is limitless. The impact social media has on our society can pose many disadvantages, but it presents many advantages for companies. Businesses can build an advantage over their competitors and reach a wider market than ever before by adopting creative ways to brand themselves. Traditional marketing tactics like direct mailing, and telemarketing have all gone downwards. With advancements like ad block technologies, the world’s simply gone numb to conventional strategies businesses used to market their brand. What’s a compelling way to win over your audience in today’s digital world? By creating unique and interesting content, of course. And what epitomizes unique and interesting content more than video? Video is undoubtedly the most effective form of visual content in regards to driving brand engagement. The world’s riding the wave of digital transformation so it’s necessary marketers do so as well. The author suggests five simple tips to integrate video into your social media strategy: create killer content, engage with everyone, live stream, partner with influencers, and move fast. When creating content, it’s important to ensure that it is relevant, that you’re knowledgeable, and credible. Another important factor is being able to inject humor and to keep it lighthearted. If your audience is for a specific target market, then adjust your content as necessary. Listening to your audience and replying is important in showing that you’re paying attention to your audience. Live streaming is an important tool to build your audience too, because it allows your audience to get a personal glimpse behind how you operate, and makes the audience feel a part of the process. Influencer marketing is soaring and this is the optimal time to hop on the bandwagon. Influencers are masters of their craft who have a loyal following, regardless of how big it is. A big segment of successful influencer marketing is achieved through video. Just go on YouTube, the holy land of influencers (and where influencer and brand partnering can easily go unnoticed) and you will see a sea of this marketing strategy. You can significantly increase reach by partnering with the right influencers and are likely to reach more authentic leads and potential customers than traditional marketing. Finally, topics and trends are constantly changing so it is important to stay relevant, however do not sacrifice your good quality content by trying to stay current. Video and social are the cool kids on the block in 2017 and beyond. Leverage your social strategy with the powers of video today. Video is a forceful tool in driving social engagement and interaction. Capitalize on these powerful tools to boost your brand’s value and ultimately your bottom-line. Note: This in-depth guide by MarketPro may help you start your in-house video production initiative for as low as $200. Download free. If you are going to build your digital brand, then it’s important to not try to do it alone. Find a mentor, and learn from the person. If you want to be wise then walk with wise people, and remember a companion with fools will suffer a lot of harm. I often encourage the members of my small group to consider creating a YouTube channel, or some form of social media to get their presence out into the world. If you’re already using social media as a consumer, then why not use it and be a producer. Even if you don’t make a monetary return on your investment, you as an individual have a lifetime of experiences which some one of this world may see as valuable. Your life is your legacy.
Items in italics are direct quotes from the articles above

If you need are interested in creating a budget, then contact me for a financial checkup in the contact me section. Also, learn more about Mustard Seed in the mustard seed section.

For this week, I’ve included VETERAN MINDSET – Military Motivation (ft. Jocko Willink) from the RedFrost Motivation YouTube channel.

“If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.” Proverbs 28:26 MSG

Posted in Pursuit of Excellence

November 9, 2016

http://www.investopedia.com/advisor-network/articles/110316/7-ways-grow-your-account-balances/

One of the common top concerns that I hear from individuals is how they’re not able to save. A consistent savings plan helps you build a solid financial foundation. But where do you begin? Here are seven ways to help you grow your account balances. Your strategy starts with your spending plan. (For more, see: 3 Smart Ways to Update Your Investment Plan.) The seven ways are: create a budget, set up a savings plan, considering opening a CD, consider opening an online FDIC-insured savings account, maximize your contributions, consolidate your retirement accounts, and invest early and often. I believe creating a budget is the first and most important step in not just saving money, but money management period. How do you know how much you can save when you don’t know how much you have after all your bills are paid? Your budget should have enough room to save money. There are four steps in my process, and if you’d like to learn about it, you can reach me at the contact me section. The author states that a savings plan should include three to six months of expenses. In my opinion, you should set aside income instead of expenses. The reason is you are more likely to earn more than you spend. Setting aside three or six months’ worth of income will create an additional buffer for unforeseen large expenses. A CD will give you a higher yield vs your savings account, but it will often require a higher amount to open. In regards to savings accounts, your online savings accounts will have a higher annual percentage yield (APY) vs a standard savings account you’d get at your local bank. Personally, I use Ally Bank, but I recommend you use websites such as www.nerdwallet.com or www.bankrate.com to check your rates. Three ways you can maximize your 401K is by maximizing your contributions, consolidating retirement accounts if you’ve moved between jobs, and finally to invest as often as you can early in life. In my opinion, you should invest enough to ensure that your company is matching your contribution. Be sure to check with your HR department to find out how high they will match your contribution. I recommend that you increase your financial knowledge to invest in not just paper assets, but in assets that will produce income. One day you will retire, and it’s better to have multiple streams of income.


https://www.entrepreneur.com/article/278848

Nearly all marketers agree on the importance of social media marketing for business growth. And considering that 33 percent of millennials today say social media is one of their preferred channels for communicating with businesses, I expect it will become even more important over time. That said, a lot of brands still don’t know how to use social media to engage audiences and help their own bottom line. There is, however, a right — and wrong — way businesses can share their content on social media. Since there is a lot of valuable content in this article there will be a lot of quotes, and I highly recommend that you read this article. The right way is having a business share its content on the platforms where its target audience spends the most time. The author recommends that the business do research into the demographics of different platforms. It’s best to have two focused social accounts to build your business vs. having multiple unused accounts. Even if you have the same end-goal for your content across social media, you should optimize it for each platform’s characteristics and strengths. For example: Videos tend to outperform images on Facebook. Twitter posts, while no more than 140 characters, should be even shorter if you’re including an image. (Luckily, that should be changing soon.) LinkedIn doesn’t support hashtags, so don’t use them. For Twitter and Instagram, hashtags are a necessity. Using visuals can help when you post on any platform, so be sure to use imagery. The author does also state that it is wrong to not vary your content. With the rise of paid social options, it’s no surprise that organic reach has become more difficult for brands. But you can still get the most out of your organic posts by sharing them at optimum times, which tend to vary by platform. Finally, the wrong thing to do when using social media is to spam newsfeeds. Keep in mind having an online presence doesn’t give you a presence in just your local community, with the right infrastructure you could have a global presence. Think differently, and think how you can create an income producing asset. Think about how to increase cash flow, and how to preserve assets. Always keep in mind wealth is a measure of how long your riches will last you. If your income from your assets is greater than your expenses, then you can quit your job and retire rich.

If you need a financial checkup you can reach me in the contact me section.

For this week, I’ve included How to be successful – the success cycle (Tony Robbins) from The Internet Marketer YouTube channel.

“If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.” Proverbs 28:26 MSG‬‬‬‬‬‬‬‬‬‬‬‬‬‬