How to Keep Your Portfolio Recession-Proof

The sign of a smart investor, the saying goes, is one that can stay afloat or even profit during a lean economy. The trick is to recognize the changing landscape and adapt to its conditions. If you can determine where growth will occur even during a recession, you can ensure that your portfolio will not struggle during the slower economic times.

Diversification is an obvious choice during a recession. However, you need to not only diversify, but also look at asset allocation within a variety of situations.

For example, look at the stock market. Stocks make up such an integral part of a standard portfolio, it is impossible to ignore this asset in a troubled economy. However, it pays to play smart during a recession. Look for companies that have lived through the choppy waters before and survived. Which companies have a strong track record for continuing to excel despite recession troubles? These opportunities will give you measured security when you need it.

Typically, credit becomes more difficult to attain in a recession. For this reason, you will see higher interest rates on bonds. Stick with well-known bond companies and think short-term to see better gains in the bond market. You want to look for a company that can withstand paying the higher rates and still position themselves for a strong future growth in the marketplace. These companies will demonstrate a better investment during leaner times.

What should a recession-proof portfolio look like? You want to have stocks of companies that are typically big-name, established organizations who will withstand the troubles. Also, look for the short-term bonds from high-quality debt to give you a better return. However, you must also consider assets unrelated to standard financial choices. What other areas can you consider putting your money that is outside the traditional realm in order to maximize your investment? These areas require a higher amount of research and can be unique to the recession. The real estate market, often cited as a superior conservative investment diversification, has proven to be as volatile as other markets. Keep your eyes open for investments that will place your money in other areas to yield growth.

Finally, be sure to follow one of the biggest rules in investing: think with your brain not with your emotions. Don’t fall victim to the psychology of the day. Chicken Little never helped to create a strong financial portfolio and be remaining calm and researching opportunities, you will see the bright spots being ignored by majority of investors for a smarter return over time.


Ten Things Millionaires Won’t Tell You


This article from Smart Money magazine offers a candid look of the perspective adopted by millionaires. Read the article for tips on how you can get into the millionaire mindset.

photo by: billaday


The Enterprise Software Industry is Changing

A recent Forbes article questions the future of enterprise software. While highly customized applications designed for specific business needs have long been the rule of thought, companies are now forgoing investing in made-to-order software, in favor of solutions with timely execution and cost-saving measures. This shift will most likely lead to the revitalization of the enterprise software industry.

Photo by: magia3e


Compromise Your Clients’ Data? Do Not Pass Go.


Forbes recently chronicled financial advisers as independent third-party users ultimately responsible for their clients’ sensitive financial data. Strict federal regulations require that advisers comply with data security standards or suffer severe consequences. You can read the article here.

Photo by windley


Are We Better Off?

A great MSN Money article from earlier this year discussed whether we are actually better off than we were 10 years ago. There are some intriguing statistics which highlight the economic situation over the past decade and squarely place the middle class in the center of the recession surrounded by lower wages, more debt and uncontrolled spending to achieve the ‘American Dream.’

Photo by: tom-b


Upcoming Financial Events

Please check out these upcoming financial events and conferences:

MMT (Mobile Money Transfer) Americas Conference and Expo
March 08 – 11
Mexico City

Financial Services Technology Summit
March 17 – 19
Amelia Island, Florida

OpRisk USA
March 23 – 25
NYC

FX Invest North America
April 13
Toronto

National Technology In Mortgage Banking Conference & Expo
April 25 – 28
Chicago, Illinois

AICPA Conference on Tax Strategies for the High-Income Individuals
May 3 – 4
Las Vegas, Nevada

Structured Products Americas
May 6 – 7
Miami, Florida

Fair Lending Modeling Symposium
June 6
Orlando, Florida

AICPA Tech + Conference
June 7 – 9
Las Vegas, Nevada

Financial Services Technology Expo
June 22 – 24
NYC

The CIO Forum Financial Services
November 4
NYC


Bankers Reap the Benefits with MyWorthNow

Bankers banking

Photo by kevinpoh

A banker’s hours are devoted to complying with banking regulations and the ever-changing lending requirements created by this economy. By equally focusing on the convenience of the bank and the consumer, MyWorthNow has become the trusted tool of banking institutions for generating comprehensive personal financial statements.

MyWorthNow makes adhering to the rules and restrictions easier. Previously, the process of creating personal financial statements was a drain on resources, but the MyWorthNow application has streamlined and simplified the entire process.

MyWorthNow technology provides the ideal solution for bankers because it increases efficiency and reduces personnel costs and time. In just minutes, bankers are able to process as many financial statements as they require.

This innovative tool creates time on banker’s hours so they can make a statement.


Will the Move Your Money Project Influence Reform?

Bloggers Arianna Huffington and Rob Johnson made a New Year’s resolution to rehabilitate the American financial system. Conceived during a dinner conversation, the Move Your Money Movement was launched as a financial protest against the risky behavior that landed us in our present financial climate of restricted lending practices.

In their original Move Your Money Project post , they try to convince Americans to move their funds to local, community banks and credit unions. By encouraging people to pull their money from big banks entangled with billion-dollar bailouts, the Movement seeks to help out the small, community banks struggling to compete.

It is interesting to note that the Move Your Money Movement places financial reform squarely in the hands of the public. The site MoveYourMoney.info urges people to support their local financial system by putting their money in small banks. Everything nowadays is reverting back to strengthening local connections, and this Movements allows consumers to directly invest in their community.

Check out the short film below made by filmmaker/author Eugene Jarecki created to further highlight the contrast between the practices of big banks and community banks.

The original post makes a good point – FDIC deposit insurance protects your money at small, local banks the exact same way it does at big banks, so whether consumers chose to participate in the Movement, they do so at no risk. (The National Credit Union Administration insures the deposits at credit unions in much the same way.)

As part of the Movement’s efforts make it simple for American consumers to transfer their funds, the Institutional Risk Analytics database has been integrated into the Move Your Money site so supporters can easily enter their ZIP code to get a list of community banks in their area.

According to the original post, if “enough” people move their money into smaller community banks, it will positively advance our financial system toward economic growth and stability. My question is this – Will moving your money actually help your community? How much participation is needed to achieve the Movement’s goal of financial reform?

It appears that people are paying attention and actively contributing to the Move Your Money campaign as it becomes a viral movement. With nearly 30,000 Fans, the Move Your Money Project is engaging with their audience through Facebook. The Movement is also using Twitter at @MoveYourMoney to reach out to their online community of supporters. Do a quick Twitter search for #MoveYourMoney and you will quickly understand that the message is spreading.

You can visit www.MoveYourMoney.info to learn more about this movement. Do you think that the potential impact outweigh your invested effort in moving your money? I look forward to seeing your thoughts on this.


Time is Money: MyWorthNow Saves CPAs Time and Frustration

CPA accountant personal financial statement

Photo by psd

MyWorthNow is an excellent, time-saving tool for certified public accountants (CPAs). In just minutes, CPAs can access and create customized personal financial statements for their clients.

In the past, CPAs had to spend countless hours compiling the necessary information for and preparing personal financial statements on behalf of their clients. Now, with the help of the innovative MyWorthNow application, the entire process of updating and storing financial information is a breeze. For a reasonable membership fee, their clients can sign up for their own MyWorthNow account, update their financial information and assign their CPA to be a delegate user of their account.

As delegate users, CPAs can easily prepare custom financial statements. The application provides CPAs with an easy-to-download PDF file saving them the time and sparing them the frustration previously spent on personal financial statements. Accounting professionals are given back valuable time to use as they see fit – whether it allows them to take on more clients and grow their business or spend some quality time with their family.

Tell me how you would use the time that the MyWorthNow technology would give you. What would you do with your time?


MyWorthNow Time Saving Feature: Delegates

One of the unrivaled features of the MyWorthNow application is the ability to share your account access and information with someone known as a “delegate.”

CPA Handshake

Our innovative delegate feature enables a third-party to assist you during your personal financial statement process. For example, you can assign your delegate to be your personal banker or your CPA. Your delegate will have their own unique login and password that grants them restricted access to your account. You decide how much control they have over your MyWorthNow account with customized settings. With your permission, a delegate can access your financial data to update and create personal financial statements on your behalf.We hope you enjoy the extra time you now have because you assigned a delegate. The MyWorthNow delegate feature is just one of the many innovative features we’ve developed to make your life easier.