Finance




	BELOW IS THE OUTLINE OF MY BOOK TITLED: Making Dollar$ and Sense on Wall Street CHAPTER 1 HOW I ENDED UP ON WALL STREET A biography of the author and the various life events that influenced his career choice to work on Wall Street. CHAPTER 2 SCOTT,S NINE SIMPLE INVESTMENT GUIDELINES There are always exceptions to Wall Street rules, so I decided to use guidelines: Buy low/Sell high Manage risk by asset allocation When the Federal Open Market Committee changes the direction of interest rates it is time to adjust asset allocation If an investment goes up by 40% or down by 15% it’s time to re-evaluate holding it in the portfolio Invest in a company that has products and customers Don’t follow the herd Capital gain taxes are desirable Exclude dysfunctional asset sectors from the portfolio Set up a schedule of routine portfolio reviews CHAPTER 3 MY VIEW ON ASSET ALLOCATION AND MY DYNAMIC ASSET ALLOCATION MODEL My view on asset allocation. What are the major asset classes? My asset allocation model driven by the Federal Open Market Committee (FOMC) management of the Fed Funds interest rate. Almost ever asset allocation model I have seen was built as a static model. Investing is a dynamic process and investors should have a dynamic asset allocation model. Now they do! Three different investor profiles: Long Term, Transitional and Income & Growth. The different goals each investor profile should be investing to reach. CHAPTER 4 APPLING MY ASSET ALLOCATION MODEL TO YOUR SPECIFIC NEEDS Determining your investment goals. How to measure your risk tolerance. A guideline asset allocation for conservative and aggressive investors Asset allocation adjusting in both rising and lower interest rate environments. CHAPTER 5 TIME VALUE OF MONEY Most people don’t understand Wall Street because they have never learned Time Value of Money concepts. Descriptions of: A time line and its parts. Cash Flows Future Value and Present Value formulas. Automobile and home loan scenario. How you can save money on a car loan. CHAPTER 6 MAKING MONEY WITH BONDS This chapter covers the basics of bonds: What are bonds? How do bonds work? The many different types of bonds. A brief history of bonds. Making money with bonds for each different investor profile. The buy and sell signals for bonds. CHAPTER 7 EQUITY INVESTMENTS I like to think investing in equity like menus at progressively more upscale dining establishments. The more money you have to invest the more choices on the menu. Discussion of Exchange Traded Funds (ETFs) and the four that I use in almost all of my portfolios, open and closed end mutual funds, individual equities, international investments and individually managed accounts. The equity asset allocation for the three different types of investors is charted. CHAPTER 8 INVESTING IN YOUR RETIREMENT ACCOUNT This is where I try to get you to take control of your retirement investments. I corrects come common myths about 401k retirement plans. I also present my starting point asset allocation models for retirement accounts. I try to bring all of the information covered in this book to a point where you can now apply that knowledge to your specific needs. CHAPTER 9 DIFFERENT WAYS TO PLACE AN EQUITY BUY OR SELL ORDER The various configurations available to buy or sell equity: long (buy then sell) and short (sell than buy) market order limit order stop-loss good till canceled (GTC). How an order is routed and executed for both the New York Stock Exchange and the NASDAQ. CHAPTER 10 PICKING AND WORKING WITH AN INVESTMENT ADVISOR The various professionals needed in your personal life. The problems that arise when one of these professionals tries to take over the function of another. The open communications needed with your investment person. Questions to ask prospective financial advisors to get a better idea of what this person knows and their investment philosophy. The basic types of financial salespeople available that want to manage your money. A FEW FINAL THOUGHTS