What If You Were Down 27%?

The Dow Jones industrial average (DJIA) rose 72.37 points, or 0.4%, to 16,576.66 on the last trading day of 2013. For the year, the index of blue-chip stocks was up 26.5% — its best performance since 1995.   The media, can sometimes be our friend or our foe.  Unfortunately, because our lives are so busy we often just get snippets and sound bites of information about our investments and money issues.   When you hear the DJIA had a banner year, your first thought is often “did my investments do as well as the stock market?” Most investors have a very short memory of their original risk tolerance, goals, or objectives when they start analyzing returns on their money.   Without setting proper expectation, banner years in the stock market like 2013 can send you into the depths of unhappiness because you may feel you missed out on a golden opportunity.  However, what happens if you were down 27% or even 33.84% as ...

Read More →

Entrepreneur Series – Lesson 9 – Execution

I remember growing my career in management with a large Fortune 500 company when my Executive Vice President told me something one day.   He said, “Ted, execution is the one thing that separates the good from the great.  Let me put it to you this way.   If you don’t execute, you’ll be executed.”   I guess it’s hard to forget that, but it still rings true in my mind today.   Some of the best leaders and managers in business don’t achieve peak results because they simply don’t execute the plan. If you like to read, I highly recommend that you pick up a book written by Larry Bossidy and Ram Charan called Execution.  There is a wealth of knowledge in this book about execution, and how to be very successful at getting things done.    Here are three mistakes new entrepreneurs make when it comes to execution. Changing the plan too often– One of the sayings I love is that focus beats ...

Read More →

Is It Time To Trigger Your Stock Options?

I worked for a Fortune 100 company for over 15 years.   When you rise through the ranks of management at a large company, they generally stop talking to you about salary and instead use the word Total Economic Package (or Total Compensation Package).   The reason they do this is that you begin to receive every year something called Long Term Incentive Awards.    These can come in the form of stock options, performance unites, restricted stock, or incentive type stock options.  Essentially, all types of compensation linked to the hopeful future growth price of the stock of the company you work for every day.  Unfortunately, most executive who receive this type of compensation do an awful job of construction a smart strategy and game plan on what kinds of options to take if they are offered a choices and how to most effectively build an exit plan from having too much money in their company stock. Types Of Stock Options The ...

Read More →

Five Money Lessons From March Madness

With the first big day of March Madness behind us, day two is sure to give us some other memorable buzzer beaters for the years to come.  While we all get focused on the office pools, March Madness can really teach you some great money lessons to help you make more smart money moves for the rest of your life. Defense is more important than offense – People I have met over the years are often chasing the investment that they believe can give them the greatest return.  This can be a risky stock, a piece of real estate, or some private equity investment. In additional as many people approach retirement, they continue to have the lion’s share of their money in the stock market. Pulling back your risk when you get closer to your goal or when you get older in age are important defensive strategies that can help you win games versus always thinking about offense. Making a ...

Read More →