Inflation occurs when prices increase. Put another way, the value of the currency declines. So, if the price of an apple rises from 25 cents to 50 cents, we have inflation, as the value of a dollar declines from four apples to two. Inflation “debases” a currency; the dollar buys less. Deflation occurs when the prices of goods and services…
“Capital” is one of the most multi-functional and important words in the world of finance. Here, are its most common usages: Capitalism is an economic system in which companies and individuals privately own the means of production. In socialism, the government owns the plant, property and equipment. A capitalist is an individual who invests in companies and their assets to…
If you borrow money, the lender will likely require collateral. Collateral is any asset that can, if the lender agrees, serve as security for the loan. In pledging collateral, the borrower agrees that the lender may legally seize the asset in the event of default (i.e., the borrower fails to repay the loan). Collateral is motivating for both a lender…
SUCCESS IS GETTING WHAT YOU WANT. HAPPINESS IS WANTING WHAT YOU GET. — Dale Carnegie Imagine for a moment that you are in a large room filled with financial planners. They are not like your Uncle Harry or Cousin Sally, who pride themselves on being financially savvy, periodically giving you hot stock tips and advice on managing your credit cards….
Lyle Sussman, PhD David Dubofsky, PhD, CFA THE BEST WAY TO PREDICT THE FUTURE IS TO CREATE IT Peter Drucker INTRODUCTION The way you treat clients today will determine your success tomorrow. You could be facing a future where one or more clients fire you or a future where clients happily refer you, even without asking. This quiz…
With Lyle Sussman Ph.D. & David Dubofsky Ph.D. | CFA BIO: Lyle Sussman Ph.D. Lyle is the former Chairman and Professor of Management, College of Business, University of Louisville. He received his BS and MS from the University of Wisconsin-Milwaukee and his Ph.D. from Purdue. Aside from 60 scholarly articles, he is a bestselling business author with more than 1,000,000…
David Dubofsky PhD, CFA Lyle Sussman PhD How important is it for financial advisors to understand the economic and societal impact of the Great Resignation? The significance of this tumultuous labor force disruption is validated by its 2021 entry in Wikipedia, and the ten million Google hits for that phrase. Over 40 million Americans quit their jobs in 2021. Some…
Many Americans lack financial literacy. Moreover, regardless of their financial wealth, many Americans are also not as happy as they could be … lacking what one of our reviewers defined as “life literacy.” We wrote Your Total Wealth: The Heart and Soul of Financial Literacy because of these two reasons. To address the lack of financial literacy, we define what…