Know Your Net Worth | Financial Literacy

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“What gets measured gets managed.” Peter Drucker

This principle of ‘what gets measured gets managed’ means that examining or quantifying an activity, such as personal finance and net worth, will change the activity and its result by forcing you to pay attention to it.

This principle said another way…’you manage what you measure‘ is pertinent to personal finance. The principle can be applied to help us manage our personal finances and to permit us to get our hands around our personal net worth. Creating a net worth statement, and updating it each year, will help you monitor your financial progress and meet financial goals.

As you prepare to invest, you’ll need to know your net worth. And, it’s simple to calculate. You simply add up what assets you own and subtract what liabilities you owe.

Creating a net worth statement, and updating it each year, will help you monitor your financial progress and meet financial goals. It will also enable you to calculate how much you have (or don’t have) to invest.

www.finra.org/investors/personal-finance/know-your-net-worth

Artificial Intelligence (AI) 101

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“What all of us have to do is to make sure we are using AI in a way that is for the benefit of humanity, not to the detriment of humanity.” –Tim Cook

AI refers to computing hardware being able to essentially think for itself, and make decisions based on the data it is being fed. AI systems are often hugely complex and powerful, with the ability to process unfathomable depths of information in an extremely quick time in order to come to an effective conclusion.

AI infrastructure and machine learning (ML) can process instantaneously vast amounts of data. Thanks to detailed algorithms, AI systems are now able to perform mammoth computing tasks much faster and more efficiently than human minds. It is leading to big strides in the areas of research and development.

AI is being used to transform many areas of everyday life, from healthcare to traffic problems.Narrow Artificial Intelligence (AI) is what we see all around us in computers today.

These intelligent systems such as self-driving vehicles, smart speakers or virtual assistance have been taught or learned how to carry out specific tasks without being explicitly programmed how to do so. Systems programmed with narrow AI can only learn or be taught how to do specific tasks.

General Artificial Intelligence is very different, and is the type of adaptable intellect found in humans, a flexible form of intelligence capable of learning how to carry out vastly different tasks or to reason about a wide variety of topics based on its accumulated experience. This is the sort of AI more commonly seen in movies, but which doesn’t exist today.

Machine learning is where a computer system is fed large amounts of data, which it then uses to learn how to carry out a specific task, such as understanding speech or captioning a photograph. One of the most visible manifestations of AI can be observed with the rise of virtual assistants.

The rise of artificial intelligence (AI) and 5G will be game changers. 5G networks are the next generation of mobile wireless connectivity, offering faster speeds and more reliable connections on smartphones and other intelligent devices. While AI works by combining large amounts of data with fast, iterative processing and intelligent algorithms, allowing the software to learn automatically from patterns or features in the data. Together, the technologies will usher in autonomous systems and potentially solve many of societal problems.

Artificial intelligence (AI) makes it possible for machines to learn from experience, adjust to new inputs and perform human-like tasks. Most of today’s AI examples rely on deep learning and natural language processing. Using these technologies, computers can be trained to accomplish specific tasks by processing large amounts of data and recognizing patterns in the data.

Many Americans are feeling these 3 big financial stresses – MarketWatch

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If you look only at the nation’s low, 3.7% unemployment rate, it would be easy to assume that the economy’s humming and that Americans are feeling great about their finances. But after reviewing five recent notable surveys, I believe many people are actually feeling three big financial pain points now.

Overall, according to the Bank of America Workplace Benefits Report of 996 retirement-plan participants, just 55% of employees rate their financial wellness as good or excellent, down from 61% a year ago. “That’s something to keep a close eye on,” says Lisa Margeson, head of Retirement Client Experience and Communications at Bank of America.

— Read on www.marketwatch.com/story/many-americans-are-feeling-these-3-big-financial-stresses-2019-10-02

The 5 Step Guide to Avoid Making Investment Mistakes

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“The only man who never makes a mistake is the man who never does anything.”

If you apply this famous quote by Theodore Roosevelt to investing, the easiest way to avoid mistakes while investing is by not investing at all. But, that is the biggest investment mistake one can make.

Investing is important to build wealth in the long term. However, just investing is not enough as investing right is equally important.
— Read on www.entrepreneur.com/article/343454

Stocks Have Outperform Other Asset Classes

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For the next decade, which asset class among stocks, bonds, real estate, cash, gold/metals, or bitcoin/cryptocurrency, would be the best vehicle to invest money for the highest long-term total returns?

Since 1890, the S&P 500 (or its predecessor indexes) has outpaced inflation at a 6.3% annualized rate (when including dividends). Long-term U.S. Treasury Bonds have produced an annualized inflation-adjusted total return of 2.7%. Finally, U.S. real estate has produced an annualized return above inflation of just 0.4%, as judged by the Case-Shiller U.S. National Home Price Index and the consumer-price index.

Yet, the U.S. stock and bond markets are currently overvalued, and it is plausible that real estate will do better than either stocks and bonds over the next decade.

According to almost all standard valuation metrics, U.S. equity stocks currently are somewhere between overvalued overvalued. Furthermore, you can only partially explain away this overvaluation because of low interest rates.

Given stocks’ overvaluation, it’s entirely possible that stocks will over the next decade have the potential to fall short of their historical averages.

To the contrary, real estate has been relatively undervalued and historically less volatile than the stock market—a lot less as measured by the standard deviation of annual returns.

As a result, real estate has proven to be less riskier than equities. Yet, the misperception that real estate is riskier has been derived from the leverage typically used when purchasing real estate adds inherent risk to investing in real estate. Essentially, the risk for real estate comes from the leverage, not real estate inherently.

If there is a major stock bear market in the next decade, real estate might be the better investment just because of it’s lower risk and relatively undervalued.

Sources:

  1. https://www.marketwatch.com/story/the-single-best-investment-for-the-next-decade-2019-08-08
  2. https://www.marketwatch.com/story/stock-bulls-are-telling-themselves-a-lot-of-lies-about-this-market-2019-06-04

Why many Americans don’t have brokerage accounts | Yahoo Finance

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A new survey from JPMorgan Chase revealed that 21% of Americans don’t have brokerage accounts, or have any other way to invest other than their company 401K or pension plan.

Even a few hundred dollars a month put in a brokerage account, invested in the stock market and allowed to grow over multiple decades can make a difference in the long term.

Please go to: finance.yahoo.com/video/why-many-americans-don-t-142910567.html

CES 2020 Concept Vehicles

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This gallery contains 10 photos.

Concept, self driving and electric vehicles at #CES2020 in Las Vegas Above, Mercedes-Benz VISION AVTR (ADVANCED VEHICLE TRANSFORMATION) is a groundbreaking concept vehicle developed in close collaboration with the AVATAR team. This concept vehicle embodies the vision of Mercedes-Benz designers, … Continue reading →

Retirees: Don’t Make Mistakes Before a Correction | Kiplinger

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Take some lessons from the mistakes many retirees made during the downturn that socked stocks in 2008. By adjusting accordingly, you don’t have to fear outliving your retirement portfolio, even if you’re about to retire.

How can someone who’s approaching retirement, or is already retired, better handle the next financial crisis?

Although many might say the economy is going through a healthy pullback, there is no doubt that another financial crisis will come at some point. Be sure to avoid making the same mistakes so many retirees did in 2008.

— Read on www.kiplinger.com/article/investing/T047-C032-S014-retirees-don-t-make-mistakes-before-a-correction.html

CES 2020 | Las Vegas

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Updated: January 15, 2020′ 1:35 PM

Friday, January 10, 2020 | 2020 Consumer Electronic Show ( #CES ) in Las Vegas. ( #CES2020 )

#CES brought together manufacturers, retailers, media and market leaders from across the globe. It offers outstanding network opportunities for the 170K plus attendees, and it showcased the future of consumer technologies and innovation. Furthermore, CES has evolved from a show about consumer electronics to a “showcase of technology and innovation” that influences every aspect of people’s lives.

Below are a few lessons learned and observations over four days attending #CES2020 in Las Vegas from January 7 – 10, 2020:

• Lyft deployed 100 robo taxis to operate during #CES2020 on the congested streets of Las Vegas using Qualcomm technology to safely navigate the street and deliver passengers to their destination. The taxis can be scheduled using the Lyft app after accepting an user’s agreement. As per the user’s agreement, there are non-robots safety observers riding along in the robo-taxis with passengers.

• Hyundai and other manufacturers unveiled flying air passenger vehicle concepts at #CES2020. Hyundai’s displayed a Uber air taxi tilt rotor concept capable of carrying four passengers plus pilot with top cruise speed of 150 mph and max speed of 180 mph. The Hyundai PAV “S-A1” is expected to be operational as early as 2030. #CES2020hyundaisa1

• 5G is the next generation of wireless network technology. It is projected to have greater bandwidth capacity, significantly faster mobile data speeds (to around 1Gbps according to Qualcomm’s CEO) and lower latency. It is expected to usher in intelligence cities and to allow vehicle-to-vehicle communications which is critical to self-driving cars. While 3G and 4G technology brought increased speeds and higher capacity to the wireless network, one CES2020 speaker described 5G as an use case technology; that it will enhance everything we do. 5G is expected to deliver faster download speeds, real-time responses, and enhanced connectivity permitting improved mobile streaming and and gaming experiences.

• IBM Watson in partnership with ESPN Fantasy Football have an initiative leveraging artificial intelligence (AI) to project player performance weekly for fantasy football. The initiative has been operational for three years and the results according to the IBM rep had been positive.  Watson AI is able to consume and analyze tens of thousands of documents, including news articles, blog posts, videos and podcasts every week during the football season. This analysis yield insight that’s presented to users through the ESPN Fantasy Football app and website. It projects how likely a given player, such as Seahawk’s QB Russell Wilson, would score on the high or low end of their ESPN-predicted points range. Watson provided to users the probability of a player scoring more than their projected point total (“boom”) or less than their projected point total (“bust”).

• Diversity, inclusion and belonging for women and people of color in the technology industry have been thoroughly discussed during this year’s conference and previous conferences. Although the topic has been a point of discussion for more than two decades, corporate executives continue to site the perennial excuses of unconscious bias and lack of diverse talent in the pipeline for reasons the problem continues to persist. Submit that the more likely actual reasons are that executives are not being held accountable and there is little dedicated effort on the part of boards and executives to solve the problem.

• American Express sponsored a lounge during  #CES2020 located in the North Hall of LVCC.  The lounge offered #AMEX Business card holders a place to relax, recharge mobile phones, obtain a hot cup of coffee and enjoy a reprieve from the hectic pace of #CES.  Overall, the lounge proved quite popular with show attendees and lines continuously queued at the entrance to take advantage of the many amenities offered by the hosts.

• Global video gaming and esports are booming and their presence at #CES2020 reflected their meteoric rise in popularity. In the LVCC Central Hall, several dozen original equipment manufacturers of gaming systems and periphery equipment were on display. The periphery equipment ranged from items that would enhanced the gaming experience to the weird / unnecessary items that hope to attract the gullible few. Gaming appears to be in the gold rush fever stage phase of its growth. One gaming expert commented during a session that video gaming and esports tournaments have awarded more than $500 million in prize money.

• Delta Airlines made a spectacular first-time appearance at #CES2020 showing off its technology to improve the passenger’s flying experience. The company revealed it app that will queue passengers for boarding, provide real time tracking of baggage and update fliers on traffic conditions on their route to the airport using information provided by their partnership with Lyft. Additionally, Delta displayed a robotic exoskeleton that their employees would don to aid in lifting heavy equipment and in baggage handling.

• The proverbial ‘elephant in the room’ omitted during #CES2020 was related to the technology sins of intellectual property (IP) theft, forced technology transfers and hacking by China. We can only assume that the technology sins have had a negative impact on domestic and non-Chinese foreign companies exhibiting at the the Show. Cognizant of the consequences the NBA and its players experienced in 2019 for commenting on Chinese bad behavior, it is somewhat understandable why (CES desires to maintain its favorable relationship with China) serious discussions regarding Chinese technology sins have been omitted during #CES2020.

• It appeared that every television original equipment manufacturer brand (Samsung, LG, Sony, TCL, Sharp, Haier, Hisense, etc.) unveiled an 8K television during #CES2020. The 8K televisions displayed impressive resolution, amazing picture quality and definition. The displays were simply astonishing. And, most unveiled an 128-inch display that made observers feel integrated or actually present with the virtual image. As a result of advent of 8K, 4K HD television costs to consumers have fallen dramatically.

Think Income Inequality Is Bad? Retirement Inequality May Be Worse

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The Urban Institute’s Signe-Mary McKernan says that savings and wealth discrepancies are more critical than often-cited income inequality. By one measure, she found racial wealth inequality, or assets minus debts, to be three times worse than income inequality. Disadvantaged groups are less likely to own homes. Many aren’t offered retirement plans through employers, or they participate less frequently.

Inadequate retirement savings carry serious long-term implications for governments as well as citizens. They create an expanding cohort of residents who have to rely on government services or who might, for instance, miss property tax payments because they can’t pay other bills. “It matters not only for families and individuals, but for their cities and communities,” McKernan says.
— Read on www.governing.com/topics/mgmt/gov-retirement-inequality-savings-gap.html