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Business Savings – Choosing the Right Equipment

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If you’re looking to cut costs within your business, you might want to take a look at the equipment you’re using. Did you know that your equipment could be costing you a lot more than it needs to?

Here, you’ll discover how choosing the right equipment can make a big difference to your running costs. You may just be surprised by the amount you could be saving.

How old is your equipment?

The first thing to look into is the age of your current equipment. How long have you had it and when was it last updated? This matters for a number of reasons. Firstly, older equipment is nowhere near as efficient as newer equipment. This means it’s going to cost you more to run it. Say you run a hospitality business for example. Investing in newer equipment form a company like JLA, will significantly reduce your monthly running costs.

Another reason why it matters is because it effects efficiency. Newer equipment is built with the latest technologies. This makes it more efficient, producing much better results. This in turn is going to help you work faster and keep your customers happier. As a direct result, this will also increase your profits.

Ensuring you don’t have more than you need

You’re also going to want to make sure you don’t have more equipment than you actually need. This includes having high-tech equipment you don’t really use. It’s all well and good investing in the latest equipment with an impressive list of features, but do you actually need them? If not, it’s time to sell it and invest in equipment you will make full use out of. After all, why would you pay more than you need to?

Consider leasing

When you’re looking to save money on larger equipment, leasing could be a great option. You’ll get to pay a low monthly fee to benefit from the latest equipment. This is an especially great option for businesses which need to replace or upgrade their large equipment but who don’t have the funds. You may need to pay a little upfront, but it will be a lot more affordable than buying the equipment outright.

There’s a lot of ways you can save your business money. Paying attention to your equipment and making sure you choose the right type for your business is going to really help. It’s surprising just how much money you can save by following the advice above.

Image credit: Pexels.

Stock Market 101: Basics of Investing

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Sometimes I hear people tell me that the stock market is like magic. That’s not the case at all.

Making money in the stock market does not have to be an impossible or difficult feat. Perhaps the biggest obstacle when it comes to investing is making sure time is on your side. Time is maybe the most important factor in investing for two reasons:

– there is longer for your money to compound

– you can make mistakes and learn the basics through trial and error

By reading some of the tips below on how to succeed in the stock market, you should be well on your way to starting an investment portfolio in stocks.

History proves that with time on your side, you can count on the history of the market to know that your investments will pay off. It is a well-known fact that in the long term, stocks have historically outperformed all other types of investments. Over long periods of time, that stock market has averaged around 10 percent.

What About Over Shorter Time Frames?

Quite to the contrary, stock performance over the short term is a much riskier. There are countless examples in history where stocks have plummeted in a single day.  When it comes to stocks, timing the market or day-trading is a skill that takes a lot of time and knowledge, and still is a dangerous pursuit. All in all, stock investments should only be relied on as long term investments unless you want to risk your savings. If so, I’d still recommend a day at the casino over the stock market. You’ll probably lose all of your money there, too, but you’ll certainly have more fun!

Risk/Reward

It’s true that as you increase your risk, you have a greater chance for a nice reward at the end of the rainbow. This is certainly the case when it comes to stocks. To take more risk, focus on sectors that historically have seen more volatility, such as real estate. If you’re hoping to lower your risk while investing, do your due diligence and never invest in something that you have not researched completely. Most investors have problems when they “take a flyer” or “trust their gut.” These are horrible ways to invest.

How To Pick Long Term Winners

Nothing is a better predictor of stock price appreciation over the long term than earnings. Companies with solid earnings sometimes can outspend their profits, but usually if you focus on earnings, you’re headed toward winning companies. When it comes to valuing a stock or determining how risky it is, looking at the historical data on earnings to discover risky or potentially successful the investment will be to you. The company earns little money but shows a profit? That company is downsizing and showing profits through cutting. You can’t do that forever. One huge quarter for earnings? You should ask yourself how the company can duplicate that feat in the future. You can learn a ton from earnings.

While earnings is a great place to start as you’re getting your feet wet, it’s definitely not the only indicator. Remember the whole “Time on your side so you can learn” speech above? This is meant to point you in the right direction. People spend years perfecting their knowledge of more advanced concepts such as price to book and price to earnings ratios.

Stocks Vs. Bonds

When comparing a bad day for a stock to a bad day for a bond, the differences are significant. Bonds tend to bounce back from a bad day much more quickly than a stock would. Historical data shows that a small dip in a stock’s price versus a bond’s price can mean entirely different long term results. A bond may bounce back quickly while a stock may take more than five years to recover. While bonds will rebound (or the company will go bankrupt), you never know with a stock.

Another good indicator for both the performance of stocks and bonds comes with a look at what interest rates are doing. When interest rates go up, bond prices fall. On the other hand, when interest rates fall, bond prices go up. Similar trends occur with stocks. Knowing these patterns can help you determine when a good time to buy or sell would be. While it is never a good idea to time the market without significant experience in investing, it is wise to know what the economy is doing. In general, the success of your investments will follow the success of the economy.

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Own a Business? Think About Your Plan

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Hey, everyone! I’m back here….it appears OG and I are going to write at FFA once per week. My posts here will be more structured and on-task than my writing at Stacking Benjamins. If you’re looking for more humorous writing, find me there……

 

I just got off the phone with my coach. We have a session three times per month and they’re a powerful use of time. Not only do we focus on business, but on the balance between my business, personal and spiritual life.

This month we’ve begun digging deep. Here’s what we’re working through:

1)   I’ve listed all of my important strategic priorities for the fall.

If I don’t prioritize what’s important to me right now, I find that it gets lost in the shuffle. It’s better to plan my fall now to make sure that those events that are important to my business and family all make the cut.

2)   I took out the calendar and planned my model week. This also included making sure I block out time for family and friends. I don’t want to get buried in my work and forget my priorities.

For me, the Apple calendar works best because I use mostly Apple products. However, you should do something similar and find a good  calendar that will automatically sync with all your devices. That way, whenever you remember something that needs to be added to a calendar, you don’t have to worry about being at your desk.

3)   I reviewed my business accounts. Because I’m starting to build up some money in my business accounts that I’ll be spending later in the year, I’m interested in business savings. By setting up separate accounts, I can make sure my “buckets of money” for different projects don’t inadvertently get spent on other, less important pursuits.

4)   I scheduled creativity.  This is an important one for me. To write entertaining pieces and fun podcasts takes a ton of creative “juice.” Studies have shown that a neatly sewn calendar actually decreases creativity. I’ve scheduled time to read (called R&D) and time to play games with friends. I also schedule time to listen to other podcasts and read other blogs.

5)   I created automation whenever possible. If I could automate it, I’ve scheduled ways to get it done. Much of my twitter and Facebook posting can be prescheduled. Because I’ve found a bank that offers free business banking, I’ve automated much of my financial tasks. Anyone helping me on the back end of the site is given tasks each Monday so that I’m able to concentrate on the reader experience.

 

That’s what I’m doing to plan for the fall. How about you?

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3 Easy Steps to Increasing Investment Returns

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Hello Free Financial Advisor readers! I’m Marvin from Brick By Brick Investing, a blog that focuses on teaching the average joe how to invest in the stock market and grow their wealth in order to achieve financial independence. It’s my pleasure to have you as my audience today. If I could explain one thing to investors it would be this…

Investment returns are not the number one factor in regards to building wealth through the stock market. Now before you strike me down and start to curse my name hear me out. I pride myself in being completely honest with you and if our roles were reversed I would want you to do the same. Here are the three things that you have complete control over that matter most.

 

Earn More Money

 

While some make the noble attempt to educate themselves financially it has been my experience that they prematurely start investing and in return lose a substantial amount of money. I would advise instead of focusing all that energy chasing hot stock tips, attempt to be the best in your field. Strive hard for that promotion at work or for that bonus and when you achieve success allocate your increase in income to your overall portfolio. I would much rather see a safe low risk return of 6-8% on a portfolio of $100k+ than a high risk return of 15-20% on a portfolio of $10k.

Throughout college I worked hard and was able to levy that hard work into a favorable job market where I obtained a very coveted job skill. In return I was able to start making a large sum of money compared to my peers that I graduated with the year before. It wasn’t easy, there was a lot of sacrifice not only from myself but from my family as well. I basically sacrificed three years of my young adult life in order to acquire a nice salary. Now I am able to make low risk trades and investments and compound my wealth.

 

Increase Your Savings Rate

 

Stop trying to keep up with Joneses and stop living above your means. Eliminate your debt and spend less than you earn while investing the rest. I believe a good bit of us have been deployed and lived under basic conditions. Therefore I believe it is safe to say you can do without some of the luxuries that deplete cash from your wallet. I personally recommend that individuals should strive to save 50% of their income AFTER tax.

Time and time again I hear that this cannot be done but I did it for two years of my life. In fact I use to save 80% of my after tax income before I got married. I will never forget the day my wife discovered that I used shirts on hangers as curtains for my room, her facial expression was priceless. For six months I had nothing more than a mattress, laptop, and gorilla case in my room. These are the things that allowed me to save so much money at a young age. Since then my wife and I have come to happy medium and we save 50% of our after tax income and indulge in some luxuries but if it were up to me we could save a lot more.

 

Choose A Great Financial Advisor

 

While no fault of their own a lot of individuals believe all financial advisors are created equal, but the harsh reality is they are not. It is imperative that you verify potential advisors credentials, fee structure, and capabilities. Some advisors may try to use a broad stroke with all their clients and you need to verify that your potential advisor has a plan for your specific situation. Do not feel that you cannot ask questions. In fact you are interviewing them for a job to manage your investments. Ensure that you leave no questions unasked and make sure you understand the answers that are given to you. Albert Einstein said, “If you can’t explain it simply, then you don’t know it well enough.”

 

Increasing Investment Returns Can Be Simple

 

If you do these three things I guarantee you will outperform 90% of your peers in terms of investing and ensure a successful retirement. These are the things I live, preach, and teach.

Photo: Tony Crider

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5 Ideas That Shaped My Career

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Reading can be the difference between a good career and a great one. How are you taking control?

Last week I went all “Joe Negative” with my 5 pieces of bad advice from investment gurus. The goal with that piece wasn’t to be argumentative…it was to help people realize that no advisor is infallible, and although starting with the guru is good, finishing with your own plan is better.

This week, to prove just how optimistically positive I can be, I thought it’d be great to review the top 5 pieces of career advice I’ve ever read from the popular press. Sure, some of these are from pop self help books, but these lessons have proven their weight during my career:

 

5) The concept of “Move and Fire” – Marine Corps Book of Strategy

While I’ll agree that the concept of business as battle is often overplayed, the idea of “move and fire” is a valuable weapon for a businessperson. Often, I’d want to either respond to a client request or work on improving relationships. By quickening the tempo of my communications with clients, surprising them with data when they didn’t expect it, and advising them on areas where they didn’t realize I was an expert, I was actually able to decrease my overall workload because I wasn’t getting silly requests on client terms. The “battlefield” of my career began to be dictated on my terms.

I also realized that to grow the business I couldn’t be one-faceted. I had to attack from all angles. That’s when my media blitz began and I gathered as many television, radio and print opportunities as possible. By moving and firing, instead of going slowly, I pushed past many people who waited for someone else to throw them a chance.

 

4) “The past doesn’t equal the future” – Tony Robbins (Awaken the Giant Within)

In business, you need to have a short memory or you’re dead. I saw many workers in all of my jobs (from high school through financial planning) who couldn’t get over the time they’d been passed over for a raise, the undeserved reprimand from a boss, or the tongue lashing from a client. Get over it.

I also experienced a phenomenon with young workers who couldn’t grasp concepts and refused to learn about them. I’d recommend listening to podcasts, reading work related blogs and books, or watching videos. Often, I was surprised to hear, “Yeah, I don’t really do that stuff.” Instead, they seemed to think that it was management’s job to teach everything you need to know to have a successful career.

Don’t wait on your manager to make you great. Just because you weren’t a reader yesterday doesn’t mean you aren’t today. Just because you were loud and brash at work doesn’t mean you have to be tomorrow. Just because you don’t dress appropriately for work doesn’t mean you’ll forget the tie tomorrow. The past doesn’t equal the future indeed.

Another related concept that nearly made this list was Tony Robbin’s assertion that success increases as you make decisions faster. While people often avoid decisions for fear of “being wrong,” Robbins pushes readers to click at a faster rate. Your brain will find ways to make your decisions better.

“I’ve failed more often than the average person has tried.” Donald Trump

 

3) Beware “The Monkey” – Ken Blanchard (One Minute Manager Meets the Monkey)

While the whole One Minute Manager series was a little short on great ideas, the concept of “the monkey” helps great people accomplish more without becoming bogged down in irrelevant tasks.

Here’s the monkey: a co-worker walks into your office with a problem….we’ll call the problem “the monkey.” Instead of saying, “I’ve got a problem I need you to help me with,” co-worker says:

“We have a problem.”

The second that you agree that “we” have a problem, one of the monkey’s arms is around your shoulder. When you say, “I’ll take care of it,” the friend leaves your office and you now own a monkey while the friend is free of the problem.

Once I began to recognize “the monkey” and learned to say, “Let me help YOU with YOUR problem,” my life became much simpler because I never took “the monkey” on my shoulders. I could work on my own monkeys without inadvertently taking on everyone elses’…a common problem for achievers.

 

2) Remember “the Goal” (The Goal)

While the One Minute Manager didn’t wow me, The Goal by Eliyahu Goldratt completely bowled me over. I can explain the concept here in a couple of sentences, but I won’t be able to convey the magnitude of how much this change in perspective increased my ability to achieve.  In essence: many people measure results in areas other than the one that matters: throughput. If I can increase the speed of something that doesn’t reach the customer, why do I care? The only job that matters: finding the bottleneck and working on increasing the output through that area of the process.

I often worked with managers and clients who’d complain about a certain department or facet of their plan that wasn’t performing well or workers who didn’t seem to be working as hard as they could. When processes are measured, though, many times these weren’t the areas the manager should be worried about. A manager should worry first about the area which is the bottleneck decreasing throughput. It seems obvious and not really a big deal, doesn’t it? This is #2 on my list because once I read the book (and the follow up, “It’s Not Luck”) my business changed dramatically.

 

1)   The best battle is the one that’s never fought – Sun Tzu (The Art of War)

Sorry about two “war” books in the same piece, but this one was easily my favorite piece of advice. When I’m at odds with someone I’ve learned that instead of bringing on the fight, are there ways that I can still “win” without fighting at all.

With Sun Tzu’s help I became more proactive. If I could answer potential questions or concerns my clients had BEFORE they occurred, I’d avoid a problem later. I’d also think of any way that my competitors might try to steal my business and make sure that my clients were iron-clad mine. In setting up financial plans I’d imagine all the ways the plan would be tested and raise defenses against them.

Sun Tzu can be found all over my financial planning tips. It’s:

–       the reason I’m a stickler on the emergency fund, regardless of the interest rate.

–       the single biggest reason my budget for married people focuses on communication, not spreadsheets.

–       The reason I start with problems that might occur rather than insurance when dealing with “what if” scenarios.

There they are…my top 5. I’m excited to read your best career advice in the comments below. What should have made my list?

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Five Money-Saving Tasks That’ll Help You Cha-Ching! in the 4th Quarter

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I love the sound of the cash register ringing, don’t you?

If you’re going to be successful in your financial life, treat it as if it’s a business and you’re trying to hear that awesome cash register sound. If you don’t, you’ll always prioritize yourself behind more “important” activities like your job (nevermind that the job is there to help your net worth…that’s probably the subject of another post).

Every business has a mandatory list of activities that can’t be ignored. So does your financial life.

Here are five items that MUST be on that list this quarter:

1) Mutual fund capital gains. Even if you don’t have mutual funds outside of an IRA now, you should learn how these rules work. When the manager (or system, for an index fund) trades stocks or bonds inside of the fund a capital gain is generated. Someone has to pay it, and there’s no real fair method, so the mutual fund company declares a date and divides the gain among shareholders of record. Even if you didn’t sell the fund, you’re responsible for your portion of the manager’s buying and selling.

With results so far in 2012 looking up, there’s a good chance you might get hit with a tax bill this year. Avoiding this tax is legal and easy. Find the dates the fund declares capital gains and transfer your money to a different fund in the same family. This avoids fees for switching and the manager’s capital gains tax.

Grab a calculator before you move any money. You’ll still be on the hook for capital gains taxes you generate by selling as well. The cost of switching might outweigh the savings you’ll realize from avoiding any taxes created by the fund manager.

2) The lemon drop. Hoping to skim off some of that skyrocketing Apple stock? Cover a portion of your capital gain by also selling your brother in law’s “can’t lose” loser. There’s no time like now to weed your portfolio of positions that aren’t going anywhere. Although you’re only allowed to show $3k in net capital losses each year, leftovers can be carried over to deduct in future years.

3) Charitable giving. Hopefully you’ve given to your favorite community non-profits throughout the year, but if not (and especially if you itemize), you’ll want to make cash and in-kind donations in before December 31. Keep receipts for your gifts. The IRS has tightened charitable giving laws in recent years.

4) Estimate your taxes and decide when to pay property taxes. If you own a home winter taxes are deductible either in December or January, your choice. Did you receive a big bonus this year? Take the extra deduction now to help lower your tax due. If you make too much, it might be a better idea to wait until next year. High income earners aren’t allowed to claim all of their itemized deductions (ask your accountant about whether you’re subject to phaseouts).

5) Goal evaluation and setting. The 4th quarter is the perfect time to begin thinking about your short and long term goals. Did you hit your benchmark in 2012? If not, what are you going to change in 2013?

While people generally talk a good game about benchmarking, most of my clients were surprised when I pulled the actual number out of their plan to see if they’d hit the mark during a year. By sticking with actual data and avoiding the “Yeah, it feels like I had a good year” you’ll be able to make the necessary course corrections to save the right amount of money in the upcoming year.

I’ll be addressing each of these areas in more detail during the course of the quarter, but do yourself a favor and schedule these tasks now. These are five activities that you don’t want to miss!

What other events are on your 4th quarter financial calendar?

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Running and Your Career

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My friend Stacey ran the Boston Marathon a few weeks ago. It was inspirational at best, and depressing at worst. When a good friend accomplishes a big goal while I’m grabbing the next doughnut it can make me feel a little self pity.

For the uninitiated, the Boston Marathon is unlike most others: you have to qualify for the race to even be allowed to enter a lottery to run in the race.

So, to review:

a) be one of the fastest runners in the world; and

b) be lucky enough to get into the race.

I’m a runner. I’ve run five marathons and three half marathons in 400 days (two of the half marathons were the day before a marathon). Sometimes, like today, I’m staring out the window, thinking I should be slugging through another run, but I’m sitting at the keyboard instead. My friend Stacey ran Boston because she wouldn’t have made the same choice. She ran it because there was no doubt in her mind that it was the right thing to do.

Business is the same way. We’re a product of our choices. In my time working with executives it’s been interesting to see what’s successful and what fails. Often, the person wasn’t able to see the failure until it was pointed out to them. It took a coach or good friend, or sometimes a poor review to set them on the right path.

Here are similarities in my mind between running and your career:

1) Better preparation creates better race results.

I don’t like speed workouts. They don’t feel good. Because of that, I’m often left as the slow guy when the run heats up. It’s the same with business. Early in my career, I’d “wing it” because I was good on my feet. Only

2) Don’t get overly emotional.

Business is a marathon. When I run a 5k, I play pump up music on my iPod to bring me through the three miles. In business, that’s like getting all fired up about a single staff meeting. Sure, it’ll help in that meeting, but business is a marathon.

For longer races, I’ll intersperse mellow tunes to actually keep my adrenaline down. In business it’s easy to get on an emotional roller coaster. “Is the customer going to buy? Will they call me back? Is that supplier going to come through?” By keeping your emotions in check you’ll make better decisions instead of the in-the-moment expediting one.

 

3) Focus on your attack, not on the pain.

When a run gets down to the final miles, it’s painful. I’ve coached enough runners that succumbed to the pain to know: working through pain ain’t easy. Everyone wants to find a way to win, and to do so, you have to be able to control your mental state. Job one: constantly worry about your priorities and overall strategy. This keeps out the pain of the moment.

 

4) Remember Jens Voigt

I often think about cyclists when I’m in the middle of a long, boring workout. My favorite rider in the Tour de France is a guy that many casual fans haven’t heard of named Jens Voigt. The biggest group of riders (called the peleton) ride behind someone who works as a windbreaker. This person sets the tone and pace. The mental and physical exertion of a rider in the front far exceeds that of riders who follow.

Jans Voigt is 40 years old and is often found at the front. He doesn’t win races, he helps others win. Everyone wants Jens on his team because he can ride for long distances pulling the load.

Often in mind-numbing business situations I remember Jens Voigt. I have to pull through the boring parts successfully to get to the satisfying finish. It isn’t the final few steps that matter…it’s those little steps in between that create a championship race. I call those Jens Voigt moments.

I’m not the only one who likes Voigt. Here’s a Wall Street Journal article about why Jens Voigt is a role model for so many: Nobody Suffers Like Jens Voigt.

 

5) Nutrition is Your Key to Success

In Jim Loehr and Tony Schwartz’s book The Power of Full Engagement: Managing Energy, Not Time, is the Key to High Performance and Personal Renewal, they compare athletes to business people. In a race, you should stretch beforehand, manage your pace so you can finish, and continually feed your body water and nutrients to make it to the end of the marathon.

Why is it that we don’t do the same for business? Why do we think that we can eat a cheeseburger and mess of fries for lunch and perform in the afternoon? Why don’t we stretch out and get the blood pumping before big meetings? We take all of this research that athletes have learned over the years and dump it. Instead, bosses tell workers to sit longer and “get more done.” I’d suggest that those two ideas don’t work well together.

 

Photos: Women Running: Infomatique;

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The Worst of the Free Financial Advisor: Episode #11–Julie Clow, Author of The Work Revolution, Freedom and Excellence for All

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What a great show! We’re fired up about this interview…if you’re passionate about workplace improvement and efficiency, this is the interview for you.

Not familiar with podcasts and how they work? Here’s a link to the Apple page on podcasts: Apple – iTunes – Podcasts

Hoping to subscribe to our show so this goodness is waiting on iTunes every week? Try this link to subscribe: Worst of the Free Financial Advisor iTunes page.

<Open> Quick show agenda & OG not here.

<> Author Julie Clow interview

The book: The Work Revolution: Freedom & Excellence for All

<23:25> Fractional Sense w/ PK from DQYDJ.net. Topic: Risk Modeling

<27:44> Roundtable: Ford employees are being offered retirement packages soon…what should people retiring think about that they may have overlooked?

Around the Blogosphere:

Dr. Dean @ the Millionaire Nurse blog: Retirement Investing: We’ve Got It All Wrong!

Dominique @ Your Finances Simplified: A Guide to Broke Fancy: How To Fake It Until You Make It

Len @ Len Penzo dot Com: 100 Words On: Why I Hate Slow Drivers Who Cruise in the Left Lane

Carrie @ Careful Cents: May Debt Goal Update (Auto Loan): I’m Debt Free!

<57:38> Our Giveaway! One easy step to enter….

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Facebook and Morgan Stanley: Who is To Blame?

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Whose responsibility is it when your investment in Facebook or Morgan Stanley declines in value? The company? A broker?

Certainly you’re not to blame.

The current proliferation of lawsuits against these companies makes me ask a straightforward question. Should there be lawsuits against Facebook and Morgan Stanley? (See these articles for more information if you don’t know what I’m talking about: Forbes: Facebook Lawsuits Piling Up.)

I’m reminded of society’s lack of personal responsibility each and every time I drive up the highway to see my mom.  I haven’t added all the advertisements up, but there is a certain personal injury lawyer in our town who advertises everywhere.  I don’t know this lawyer intimately, but my wife works in the same office building and sees the people who come in and out of the front door.  There are all sorts of people trying to sue for anything under the sun.  Instead of trying to take over the world, they’ll just take it from someone else, because somehow, they’re “owed” something.

One of my favorite books is The Road Less Traveled by M. Scott Peck, M.D.  That book contains my favorite quote from any book:

We cannot solve life’s problems except by solving them. This statement may seem idiotically tautological or self-evident, yet it is seemingly beyond the comprehension of much of the human race. This is because we must accept responsibility for a problem before we can solve it. We cannot solve a problem by saying “It’s not my problem.” We cannot solve a problem by hoping that someone else will solve it for us. I can solve a problem only when I say “This is my problem and it’s up to me to solve it.”  But many, so many, seek to avoid the pain of their problems by saying to themselves: “This problem was caused me by other people, or social circumstances beyond my control, and therefore it is up to other people or society to solve this problem for me. It is not really my personal problem.”

This is as true in the investment world as anywhere. As an investor, you must accept responsibility for your own investing decisions.  You cannot blame others for your decisions (or indecisions).  You won’t help your cause with a “I’m mad I made a bad decision in investing so I wanna sue everyone” mentality.  Recent lawsuits against Facebook and Morgan Stanley make me crazy – I don’t believe for a second that if some magical prospectus would’ve fallen from the sky that all these people wouldn’t have bought Facebook stock.  There’s all this talk about how Morgan Stanley screwed everyone and how Facebook lied — why didn’t these people do their own research?  Take some personal responsibility!  I’m pretty sure that had Facebook stock gone from $38 to $75 in one day, Morgan Stanley would not have called all the new shareholders and said “Oops, we priced this incorrectly so we need to sue you to find a more correct price.”

As an investor, you and you alone are responsible for the actions and outcomes of your investing decisions.  Whether you have an advisor, a consultant, or are a DIY’er, remember one thing: it’s your money.

Be accountable for it.

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