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Informative Articles

Equity Discount Real Estate Investing
Consider these parameters for a real estate deal: Property Value: $250,000 Purchase Price: $160,000 Repairs: $2,500 If you analyze the numbers, you see that the equity available in this deal is $87,500 (Property Value minus Purchase Price minus...
Investing In Son's Business Could Cause A Real Family Feud
Q: My youngest son wants to borrow $5,000 to start his own business. My wife is afraid to tell him no. She thinks we should just give him the money and not expect anything in return. I disagree. He doesn't have a very good track record with money,...
Offshore investing - Leveraging overseas trading
In today’s climate of a falling dollar and emerging economies all over the world, offshore investing can be an attractive option. Before looking at investing overseas, however, you should understand your financial goals, the potential pitfalls of...
Small Cap and Big Cap Investing
To be honest, it doesn't matter what type of stocks we invest in. Common stock with small capitalization (defined as having market capitalization of $ 500 Million or less) and big capitalization (market capitalization of $ 5 Billion or more) can...
The Big Four Reasons for Investing in Real Estate
The 4 BIG benefits of investing in real estate are: 1) Cash Flow - This is your spendable income after deducting all operating expenses and mortgage payments from rental income received. 2) Loan Amortization - With each mortgage payment you make,...
 
It's Not All About the Money, But It Has Alot To Do With Investing

Sin and sorrow everywhere
People dying in despair
Happy Birthday to you; Happy Birthday to you.

When a kid, my grandfather gave me a crisp dollar bill for my birthday. It wasn't about the money; it was about him. As a kid, I also heard theological and monetary snipes at the church, "All the church wants is my money". This week, we are reminded that it is not all about the money; it is about the man.

Theological jargon ("sin") may not be germane to your conversations. However, sorrow always evokes loss, stirs questions about what matters, and tears become our vocabulary. So, what does this have to do with the stock market? Funny you should ask.

Every corporation (profit or nonprofit) portrays its leadership. Corporate boards and officers may hide for a while behind press releases and balance sheets, but revelation ultimately casts beams of light on the board room, the office suite, and the sacristy.

Forbes magazine maintains a "Corporate Scandal Sheet" It lists twenty-two New York Stock Exchange corporations under current indictment for accounting "imbroglios".

The sorrow? Abject disappointment for investors, pension recipients, company employees (mail room clerks, janitors), children, and tax payers. It is about the money.

Proxy season busies me with reading and voting on behalf of clients. Proxy votes give authorization to the directors to "elect", "approve", and "ratify". Shareholders submit proxy votes with confidence that the Board of Directors will act with integrity. Many don't.

During 2003, under John Paul II's direction, the Pope's charity authorized $69 million dollars in expenditures to help allay the "grave difficulties caused by tensions and conflicts" around the world. Congregants give with confidence that the Pope's Charity will act with integrity. He did.

About The Author

Ray Randall serves clients as a registered investment advisor with his firm, Ethos Advisory Services, Essex, Massachusetts http://www.ethosadvisory.com. He has wide experience within the financial services industry, writes a weekly newsletter for Ethos Advisory Services, and coordinates the developments at Echievements . Ray holds a Masters Degree from Gordon-Conwell Theological Seminary, Hamilton, MA. You may email him or call (877-895-3756).

rayrandall@ethosasdvisory.com