First up, how you should factor in your personal financial situation when creating an Investor Profile.
As the old joke goes, it is easier to build $2 million in wealth in 10 years if you begin your journey with $1 million versus nothing at all. And even easier to reach $2 million if you start with $3 million.
A joke, but quite accurate. Your current and anticipated financial situation and earnings is a huge driver in your ability to accumulate wealth over time, and achieve your objectives.
What type of financial statements should you create?
What are some key aspects people forget to include?
Why you need to consider your future prospects and costs?
How to look for growth opportunities and areas to cut costs when assessing your financial situation?
In episode 9 on the Wilson Wealth Management YouTube channel, we look at how to compare different investment returns. With so many return calculations available, what are the differences between measures? Which investment returns provide the best information for investor analysis?
How do gross returns compare with net returns? Realized versus unrealized? Base versus local currency?
Why is it important to differentiate?
What is the difference between arithmetic mean and median returns? When should each be utilized in analysis? What are the advantages and disadvantages of each measure?
Can geometric (time weighted) or dollar weighted (internal rate) mean calculations address the limitations of arithmetic mean? Thereby helping investors make better decisions.
What investment return time periods are commonly presented to investors? Why is it important to differentiate by time when assessing asset performance?
What is the difference between nominal and expected returns? How does investment risk (i.e., standard deviation) play a part in this comparison?
How do I know if my investment performance is good or bad? What other return types are there to assist in evaluating my investment results?
In episode 7 on the Wilson Wealth Management YouTube channel, we look at systematic risk and its impact on your investment analysis and portfolio.
Systematic risk is the complement to nonsystematic risk, which we reviewed in episode 6. Together, they are components in assessing investment risk and creating strong standard deviation risk measures.
What is systematic risk? Also known as market or non-diversifiable risk.
How does it differ from nonsystematic risk?
What are the key systematic risks?
Why is it important for investors, and businesses, to understand these risks and their potential impact on portfolio assets?
How do businesses and investors manage systematic and nonsystematic risks?