Finance Focus Video: How Does Inflation Affect Financial Goals?

Today’s topic is Inflation and how does it affect your financial goals. Inflation is represented by the Consumer Price Index (CPI) which measures current and past prices of a sample “market basket” of goods from several categories such as housing, food, transportation and clothing and other discretionary and non-discretionary goods.   Inflation (rising prices) affects […]

Finance Focus Video: Market Capitalization & Enterprise Value

Today’s topic is market capitalization and enterprise value. Market capitalization (market-cap) is the market value of a publicly traded company’s outstanding shares. It is calculated by multiplying number of shares outstanding by the current share price.   Enterprise value adds the outstanding debt to the market cap. Why is it important? Because it can show […]

Finance Focus Video: How does compound interest benefit you?

Today’s topic is compound interest. When you deposit funds in your bank saving account, you earn intereston your principal. The bank pays interest each month on the original principal and on the interest from the prior month. Compound interes tis the result of reinvesting interest, rather than paying it out, so that interest compounds upon […]

Finance Focus Video: What is your Risk Profile?

Today’s topic is risk profiling for your portfolio.This is a very personal component of your investment experience. Your risk preferences are likely different than mine, or your neighbors, your colleagues, or your spouse.It’s really like a fingerprint for your investment process. So let’s focus on the three risk components of risk: Risk capacity: can you […]

Finance Focus Video: Real Estate Investment Options

We have a lot of clients with real estate interests and ask which is better-real estate in REIT form, real estate in private equity, or direct real estate ownership. Each has pluses and minuses-direct real estate ownership allows: Different ownership structures, tax flexibility and depreciation and passive activity losses in the year of sale, leverage. […]