Pension Management

With new classes, students, lesson plans, and school policies, as a new teacher it is not always clear to us where we should start. Thus, we need an entry plan for any new school that we work at so that we don’t feel overwhelmed in our jobs– teaching kids can be hectic enough.

It is important to understand that your approach to teaching might be very different than the approaches of your colleagues; however, there is necessarily a right or wrong answer. Generally speaking, a new teacher must create a classroom environment where lesson plans are created to address the needs of all learners; classroom management is a collaborative effort; and students can take a constructivist approach, learn new things, and apply their knowledge in fun and innovative ways.

First off, a new teacher needs to capitalize on the strengths that they bring to the role of teaching. Some strengths can include: humour, an interest in helping students reach and exceed their potential, an ability to motivate students by showing enthusiasm for learning, an aptitude for helping students develop their strengths, an acceptance for social and scholastic diversity, an understanding of and ability to implement instructional tactics, a positive learning environment, effective management techniques, knowledge of the curriculum, and the ability to present material in a meaningful and innovative way.

A new teacher must have actions they plan to take when they step foot in a school. It is important to dress and act in a professional manner, abide by the school mission statement, keep an eye out for the well-being of students, make yourself available to students who need assistance, show school spirit by attending school events, and plan to assist with the coaching of school teams.

There are also things that a new teacher will want to know about immediately. Emergency procedures are so important to understand. The last thing you want to do is head in the wrong direction when a fire drill is happening, and have the entire school waiting for you. Or worse off, how would it feel to have a student go into anaphylactic shock in your classroom before you have gone through training on how to give an Epinephrine needle.

Being a new teacher you need to get close with the special education programs that exist within the school so you know how to accommodate students in your class. Learn how to access and sign out any technological resources within your school including: computers, laptops, Smart boards, photocopiers etc. Other teachers typically book this equipment early because school resources might be limited, leaving the new teacher out of luck. Also polish up, or have someone show you how to use Mark Book or a program like it so you can keep your marks up to date. Check out any workshops that may be happening at your school or within your board that will give you insights into things that will help your teaching practice.

Being prepared is so important in teaching to keep your stress levels down, so that you don’t come home from work each day, and fall asleep on the couch. You do not want to ware yourself down to a point where you don’t like teaching after being exposed to all the stresses of being a new teacher. New teachers need to take care of themselves in this profession by coming prepared with an entry plan for success, taking a sick day if necessary, and having a good laugh from time to time. A new teacher needs to take these measures so they continue to enjoy teaching for the long term, rather than sticking around jaded, counting down the days for their retirement pension.

Do not forget to check out the link in the resource box below. I’ve got a great free report that details my experiences so you can learn from them.

As a professional options trader, there are two things I will remember most as I look back at this bear market of 2008, and that is; a.) How covered call writing investors are receiving substantial option premiums to take risk and; b.) How the certainty of a “buy and hold” approach of a well diversified, structured portfolio was not spared from the devastating effects of this bear market liquidation.

REIT’s, commodities, large cap, international, emerging markets, convertible bonds, defensive stocks, took severe beatings in 2008. Every company that was considered “too big to fail”, or so conservative that it shouldn’t have failed, did just that. Whoever said “No two bear markets are alike” certainly got that right. Even Warren Buffet’s Berkshire Hathaway stock (Symbol: BRK) experienced a -54% peak-to-trough trading range in since December 2007. There has never more uncertainty among Investors approaching retirement, CFA’s and mathematically minded financial services participants, as the market’s nervous reaction to every “take it to the bank” arbitrage in 2008 became temporarily disconnected.

Author Roger Lowenstein has spent considerable time analyzing those who come to trading by way of the traditional route. In his book, When Genius Failed: The Rise and Fall of Long Term Capital Management1, Lowenstein wrote that “those who are attracted to mathematics and analysis are drawn to fixed income and convertible bond arbitrage because much of what determines their value is readily quantifiable.”

I suspect financial planners and sophisticated investors in general, are a similar breed. The financial planners I know are well educated, mathematically minded, and contemplative. They’re attracted to the certainty of planning, and their vocabularies are peppered with terms like annuity, CAGR, estate planning, efficient frontier, MPT, asset allocation, risk-adjusted return, and diversified portfolio.

On the other hand, those attracted to floor trading, like me are typically emotional, anxious, and highly intuitive. Like hungry street urchins, we rely on quick reflexes and the general belief that it’s more important to be first on a trade than it is to be right. And like any self-respecting trader, we thirst for a little excitement. In fact, we can be described as the liar’s-poker-double-espresso-filled-undiagnosed-ADD-patients-who-trade-triple-beta-ETFs-because–anything-less-than-a-Volatility-Index-level-of-70-is-too-boring orphans of the industry.

 

Terms that an options floor trader may use on any given day are a bit different than those of a typical financial planner and include skew, kurtosis, theoretical edge, risk reversal, I-Wham (Russell 2000 ETF; Symbol: IWM), implied volatility, assignment, dollar-weighted deltas, and slop.

When I started on the trading floor of the CBOE in 1982, I was 22, and the majority of the traders in those days were from blue collar, Irish families who treated day-trading with the same mentality as a plumber who lays pipe or a carpenter who frames a wall: it was a job.

I spent the majority of my years at the CBOE in the OEX pit, where the practice of hiring MBAs was discouraged – even derided. Why? It was believed that you couldn’t teach a business major anything. And that might have been true: they weren’t pliable enough to mentor. Floor traders needed to have an intuitive sense of risk management and quick reflexes to maneuver around short term market moves. With an eye toward disaster, they frequently owned out-of-the-money puts. Countless arguments erupted between the quants, who understood the mathematical impossibility of a 23 standard deviation move during the Crash of 1987 and the floor traders who had no idea what a standard deviation was, but who did know that they would lose their homes if the market dropped substantially.

And they figured – without the aid of a calculator – that their wives would be really, really mad.

Lowenstein cites how Nobel Prize winners Fisher Black, Myron Scholes, and Robert Merton, who created the famous option pricing model known as Black-Scholes, disagreed with the fat tails or steepness of volatility skew that floor traders priced into out-of-the-money put options. To the creators of the Black-Scholes option pricing model, volatility was a constant, log-normal distribution.

“Merton carried the assumption a step further,” Lowenstein says. “He assumed volatility was so constant that prices would trade in continuous time, without any jumps.”

 

Today’s options traders need a firm grasp on the nuances of volatility skew, kurtosis, dollar-weighted deltas, and Vega. Yes, we have high speed computers that process tens of thousands of theoretical values in hundredths of milliseconds and seven billion stock and option quotes per day sent from exchanges.

But can the emotional and often volatile pit trader offer anything to the structured, well educated financial planner? The answer is yes. The truth is that you don’t need anything other than a simple calculator, the right kind of experience, and often, a little out-of-the-box thinking to achieve a terrific rate of return. After all, it is said that some of the best inspirations come from outside the box.

And who is more outside the box than an options trader?

I was struck by a comment made by CFA Adrian Cronje, who was quoted in the Journal of Financial Planning, January, 2009 issue, as saying, “The good news is that for the first time in many years, investors are now being paid to take risks.”2

Investors are being paid to take risks. Imagine that.

Nowhere is that statement truer than in the current environment of options trading and covered call writing. To be more accurate, investors are getting paid handsomely to take less risk. Recent market volatility has created a once-in-a-generation perfect storm, a history making blizzard favoring the individual investor and featuring:

1.  Unprecedentedly high option volatility levels due to the credit crisis

2.  The inability of investment banks to participate in trading due to their de-leveraging

3.  Clearing firms uniformly reducing risk across all market participant

4.  Continued fear of the downside

Cronje, Adrian, Journal of Financial Planning, “Is Markowitz Wrong?” ;(Jan 2009)

 

5.  Massive de-leveraging of hedge funds and 130/30 strategies

6.  Generational low interest rates

7.  Pensions and endowments rumored to be selling assets to meet cash obligations rather than rebalancing strategic allocations

Financial Planners and investors may want to brush up on basic option theory especially covered call writing tactics and read the academic white papers on the higher risk adjusted returns covered call writing provides as the nations 76 million baby boomers will be looking to planners and advisors for help in rebuilding their portfolios and simultaneously converting their “buy and hold” portfolios of growth stocks to a vehicle that delivers substantial retirement income.

Retirees are tired of hearing the endless droning from pundits discussing the benefits of greater asset allocation, cutting monthly expenses or promoting the benefits of being a Wal-Mart greeter.

 

 

 

 

 

 

 

 

 

 

 

 

Endnotes:

Lowenstein, Roger, When Genius Failed: The Rise and Fall of Long Term Capital Management (New York: Random House, 2001), 67-68, 76-77.

The Baby Boomers are the members of the generation born between 1946 and 1964. At 79 million people, they’re the largest US generation in history. The oldest Boomers will turn 65 in 2011 and many of them may choose head for the exits.
Can you answer these questions about Baby Boomer retirements at your company? The first five are about raw numbers
How many people at your company are eligible to retire in each of the next ten years?
The odds are good that not everyone who is eligible to retire will do so. But it’s a good idea to consider how many people could leave at a moment’s notice and when they’re eligible to do so.
How many of your senior managers are in that group?
Senior managers have mission critical knowledge and experience. When they leave, they take it all with them, unless you’ve created alternatives for them to stay on, or work as a consultant.
Review your succession planning. Identify the less experienced managers that are best qualified to move up. Help them with personal and career development, especially growth assignments, so they’re ready when their time comes.
How many of your key technicians and craft workers are in that group?
We’re talking here about the kind of hands-on technical work that it’s hard to outsource or offshore. Many of the pipelines for technicians and craft workers have been slowly drying up over the last couple of decades. Union apprentice programs have been hit especially hard.
How many of your first line supervisors are in that group?
Your front line bosses have more impact on morale and productivity than any other group of people in your company. Make sure you’re ready to replace retiring supervisors with qualified new supervisors who’ll get the benefit of solid supervisory skills training.
How many of your knowledge connectors are in that group?
Knowledge connectors are vital to your operations, but they don’t have that title on any organizational chart. Knowledge connectors are the people other people call for help because they’re experts or because they know how to find people or knowledge to help solve problems. You can do a social network analysis to find out who they are, or just ask around.
I call the problem the “Boomer Brain Drain” because of the loss of knowledge and experience when Boomers retire. If you’ve answered the questions above, you have an idea how big a threat this is to your company and you can start to work on responses. The next four questions deal with different kinds of responses to the potential Boomer Brain Drain.
What human resources measures are you or will you use to meet the challenges of Boomer Brain Drain?
Human Resources (HR) responses to the challenges of the Boomer Brain Drain include everything you do to modify your recruiting, training, retention and succession planning. They also include changes to policies and procedures and may include union negotiations.
Since Boomers may be starting to flow out the back door, it’s logical to plan on increasing the flow of recruits in the front door. It’s logical, but it’s dangerous.
Generation X is the generation next in line behind the Baby Boom. It’s only about half the size of the Baby Boom generation, so you’ve got a smaller pool to draw from. You can’t count on simply increasing recruiting to fill the spots left by retiring Boomers.
Several companies are investigating tactics such as having people return to work after retirement or stay at work past their official retirement date. There’s some evidence that this will work since studies by financial services companies tell us that Baby Boomers don’t have a lot put back for retirement.
Older workers are great hires in lots of ways. Their turnover rate is lower than that of younger workers. When CVS compared their older workers to younger workers, they found that older workers are far less likely to call in sick.
If you choose some set of retire late/come back after retirement solutions, there are issues to consider. Start with your current pension and retirement policies. Can Boomers continue to work without losing benefits? This may be something you need to have a dialogue with your unions about.
You may also need to modify your policies and procedures for part-time work. Retired Boomers may want a different kind of flextime than younger workers. They might prefer the ability to take more time off, to accommodate medical appointments and visits to children.
Analyze your corporate culture. Do you see older workers as contributing members of the workforce, or do you see them as workers with their eyes on retirement and one foot out the door? Do you provide training to older workers the same as you do to younger one?
You should also think about how you’ll need to change your work processes to make them friendlier to older workers at the same time as you find ways to get more productivity out of fewer workers.
How will you change or adjust your business processes to meet the challenges of Boomer Brain Drain?
Older workers may be great workers, but they tend to have more physical limitations than younger workers. You may have to modify either processes or equipment so they’re older-worker-friendly. You’ll be in good company. Toyota has been doing this for some time.
Make sure, for example, that the gauges on equipment are easy to read. If instructions are conveyed orally in a workplace, make sure they’re loud enough for older workers to hear.
You can also make changes to business processes that make Boomer retirement irrelevant. If you eliminate some specialized equipment or standardize on fewer kinds of equipment, you may be able to increase your scheduling flexibility and handle more equipment with fewer workers. You can also use technology to capture the knowledge of experienced workers so that it’s available to younger workers.
How will you use technology to meet the challenges of Boomer Brain Drain?
Knowledge management technology is often touted as the way to capture Boomer knowledge and put it to use. In reality, most of the knowledge that Boomers, like other workers, have is in their heads and will go out the door with them. But you can still do some things to capture important knowledge if you start now.
Consider job-shadowing as a knowledge transfer tool. Think about investing in people to chart and document processes that do not currently have formal documentation.
Use simple technological tools, such as electronic discussion groups to capture “shoptalk” and the knowledge that only comes with time on the job. Use social network analysis to identify which people get contacted to solve specific problems.
There are three rules to follow in using technology to capture knowledge. The first is that a tool that no one will use, because it’s too complex or time-consuming, is a useless tool. The second is that culture always trumps technology. Rule number three is that technology that adapts to human habits works better than technology that demands that humans change the way they work.
Have you conducted a “Threat Assessment” to give you an idea of where you need to concentrate your efforts?
Before you move on to planning for Boomer retirements, take the time to do an accurate Threat Assessment. It will make your efforts more productive in the long run.
Assess every position in your organization. Determine when the person in that job can retire. Evaluate how important the position is to accomplishing the mission. And assess how prepared you are to replace the incumbent.
These questions are just the start. Your next step will be to develop a strategy for dealing with a potential Boomer Brain Drain. But the sooner you get started, the sooner you’ll see results.

Emigrating to Canada and receiving status there as a permanent resident entitles you to live, work and study there for as long as you like.

Canadian permanent residents have almost all the same rights as a Canadian citizen who was born there. The rights you’ll be entitled to include:

Canadian immigration restrictions

Unlike many other countries, the Canadian Government’s policies promote immigration and as such, rather than having an immigration limit, Canada has immigration targets. For example, in 2009 Canada hopes to admit up to 265,000 permanent residents.

Immigrants can move to Canada from any country in the world.

Applying for permanent residence in Canada

It is possible for whole families to move to Canada and you can apply for yourself, your spouse and any children at the same time.

 You can also be sponsored to move there by anyone who is Canadian or has permanent residence.

The first stage for applying for permanent residence in Canada is to work out the category that’s best for you.

The available categories are:

Canadian citizenship

Once you’ve been a permanent resident in Canada for three years, you can apply for citizenship and if accepted you’ll be eligible for a Canadian passport. You will still be able to keep your passport from your country of origin too because Canada recognises dual citizenship.

A good friend of mine worked as a computer programmer for one of the big New York based banks. She has been jobless for almost a year, having lost her well-paid position after a decade of loyal service.

The first lesson she learnt the hard way that there was no personal loyalty from the management. It was all about the numbers.

So when it came to handing out pink slips there was little consideration of the personality and skills of the individuals themselves. Managers were simply told they had to get rid of a certain number of people.

To rub salt in the wound my friend had been working alongside imported Indian workers. In a system known as “knowledge transfer” the US based staff were ordered to teach the Indians how to do their jobs – so that eventually they could return to India, and their reluctant American teachers could prepare to lose their jobs to their  Asian pupils who were being paid a fraction of their US counterparts.

So what’s the outcome? The bank saves money on paper, although the “skill transfer” operation has not exactly been regarded as a huge success. There have been a number of deficiencies.

The second outcome of course is the US taxpayer now has to financially support my friend until she finds a replacement job.

The third outcome is that it is highly likely that it will take her years (if ever) to acquire the same decent wage and benefits. The result is that her living standard declines, and she spends less – affecting the businesses she would traditionally buy from.

The fourth outcome is that she is now no longer covered by her company medical program, so if she falls ill it will be the state picking up the bill.

Increasingly firms are cutting back on benefit and pension provisions, so later in life there is now also a very real expectation that the state will have to pay for her retirement care. The list goes on and on but the starting point was that a bank that was making lots of money wanted to make even more.

As I studied a recent list of bank charges one stuck out – an inactivity charge. Yes the banks can even financially punish you when you don’t spend. So they’ve really got you every which way.

A constant moan in my part of the world is about the credit card companies (who of course we were forced to save from financial armageddon) stiffing their customers at every opportunity.

Now their outrageous interest rates are nothing new, but their deviousness and tricks know no limitations.

Fiddling with the number of days in a payment cycle, altering interest rates without telling the customer, and seemingly randomly applying new reduced spending limits seems to be becoming something of the norm.

I have no objection to them (finally after all these years) trying to control the amount of money they lend, it’s more about the way that they apply their new systems. The words “manners” and customer courtesy” are apparently less important these days.

The collapse of large financial institutions has of course had many in the financial world rubbing their hands with glee. There have been some stunning profits as there are now less players in the game. It seems like a cartel where you simply can’t lose.

And there almost seems like a desperate rush to max out every last dodge and trick before some new regulation is introduced to try and control and protect the ordinary man in the street from the chaos created by the relatively greedy few.

At a time of mass unemployment does it make sense to allow companies to continue exporting thousands of jobs abroad? At the very least I believe they should have to pay a tax levy on every job lost this way, which would take into account the potential costs now awaiting the US taxpayer in supporting the pink-slipped worker.

I do though have some hope that people power will have an impact. As I stated in a previous article you can exploit people and get away with it for so long, but eventually it will catch up with you and there will be a hefty price to be paid.

By way of illustration most people I know now have a very different outlook on money than they did a couple of years ago. Now there is a real desire to clear the credit card debt once and for all.

I believe millions are trying to do just that across America and elsewhere in the world, with a determination that we’ve not seen before. The lesson has been learnt that these companies are not really there to help you – they are there to help themselves.

Michael Moore may be a controversial film maker, but the message of his new epic concerning capitalism and how it is failing people is irrefutable.

How can the USA, the leader of the free world, allow millions of its citizens to have no medical coverage, to disallow people with medical conditions from taking out health insurance, and end up in the bizarre situation that where the banks are handed impossibly large sums of money that we all have to pay for – and receive nothing back for it. Sure the Government might eventually make some money, but the citizens will never see a penny of it.

Instead our taxes will increase to pay for the bail out, and more jobs and homes will be lost as the knock-on effects of the banking scam continue.

Hardly anyone faced any form of punishment for what happened. Most regulators who sat and did nothing continue to sit and talk about doing things, although I suspect that when the big financial lobbies have done their work any change will be watered down, allowing a near return to “normal” business of exploitation, greed, and massive financial inducement to generate ever more cash at whatever cost.

It can’t go on. Look at what happened with oil. The cartels bumped the cost of a barrel up 100 per cent in just a year. The world allowed it to happen but the price was unsustainable. The most immediate impact was that people stopped driving for leisure. Car sales slumped, people refused to fly because it was now too expensive, businesses cut back on their electricity. The politicians allowed it to happen, and as of right now it could happen again tomorrow. Speculators continue to try and manipulate the price with impunity.

This is the short term thinking at his craziest. Look what happened to Russia. It’s economy driven by oil and gas went from profit to loss nearly overnight.

In the UK the British National Party has been on the rise. As an organization it has been heavily criticized for it’s white supremacist overtones. But that’s not why people have been electing their representatives as members of parliament or to the European parliament.

No the real reason they have been gaining power is because they have said they they are prepared to take radical and effective steps to bring about change.

They have been talking about taboo subjects such as protecting the rights of the indiginous  population – i.e. those who have lived in the UK all their life. They don’t think it’s right that someone newly arrived from another country gets more support from the state, and is allowed to jump waiting lists because they are from an ethnic minority. Yes they need help and support – but it should be on an equal basis.

The BNP also don’t think that allowing completely unrestricted immigration into the UK has proved a resounding success as certain communities have found themselves swamped by new arrivals. I’ve touched on British politics purely as another example of how eventually the power of the people can force politicians to at least rethink their policies.

Change is needed. Is there anybody in a position of power listening? I hope so.

With the present state of the economy will your children be able to live and prosper in the future economy? Have you learned the value of precious metals? Do you recognize opportunities when you see them.? Have you learned the art of making money?

Any one time activity that produces predictable regular income is a passive income activity. This income can take many forms. The most common traditional form has been to participate in multi level or network marketing activities. For individuals who are not comfortable with the aforementioned programs, there are systematic investments that provide exponential growth from a single investment. At the far end of this spectrum could be purchasing a metal detector to find wealth.

Relearn the art of making money. If not for yourself then for your loved ones. It isn’t about good luck, but rather good planning. Live long and prosper.

Do you have an urgency to become financially independent? If the answer is yes, then continue reading. The shrinking purchasing power of the dollar means you have to spend more today than you did last year to acquire the very same goods and services. With the problems associated with the recent stock market crash, the loss of pensions and other paper wealth, hyperinflation, and continuing unemployment, what can you do to protect not only yourself but your children.

The responsibility is on you to manage your wealth and their wealth. If you are existing on a monthly shoestring budget don’t fret. You can still take charge to positively ensure your financial independence.

How?

Create a record of expenditures to track where your money goes.

Determine your monthly cash flow.

Determine your monthly savings.

Look for ways to redirect the value of your existing budget expenditures.

Be aware of and avoid ego related purchases.

Ask yourself if you really need the most current consumer offering, or do you just want it?

Purchase items in larger quantities today to avoid paying higher prices later.

Buy generic off brand merchandise.

Barter your goods and services for other goods and services, whether professional or not.

Acquire assets that put money in your pocket.

When you successfully apply the aforementioned techniques you can reestablish your savings process, investment techniques and objectives. This should simultaneously enable you to create additional income that was previously mismanaged. What you have really done is create profits that you can put elsewhere.

Conventional wisdom would have your put your money in what have been known as traditional financial vehicles. However, the rules of managing your money have changed. The old rules of money were to go to school, get a secure job, buy a house, stay out of debt and diversify investments. Those concepts have changed with the new world economy. Additionally, these actions are manifested as linear financial realities. The problem is that one input of work produces one output of wealth. What is needed are passive forms of income. Better still are passive income sources mixed with exponential income sources.

DaimlerChrysler, the world’s second largest producer of luxury cars and manufacturer of high quality Mercedes window motors has announced recently that the first quarter profit that they obtain is more than doubled and Mercedes has helped a lot in offsetting the loss at the US Chrysler Group which is being sold.

The net income of DaimlerChrysler has increase to 1.97 billion euros ($2.67 billion), or 1.89 euros a share from 781 million euros or 77 cents explained Chief Financial Officer Bodo Uebber at a recently held conference call. Revenue also decline by 6 percent to 35.4 billion euros. The company gain from the sale of stake in the parent of Airbus SAS.

Chief Executive Officer Dieter Zetche is further attempting to reduce the risk to profit growth by finally selling Chrysler AG to Cerberus Capital Management LLC. Zetsche is expecting for more than 7 percent profit increase for this year at Mercedes, which has introduced new and expensive vehicles like the S-class sedan. DaimlerChrysler is also expecting to keep the truck unit profitable.

The shares increase by 1.84 euros or 3 percent to 63.54 euros valuing the company at 65.5 billion euros. The stock has also increased by 29 percent since February 14 when Zetsche said that “all options’ were open for Chrysler.

The Separation

DaimlerChrysler has finally announced that it would be ending its nine-year ownership of the money losing Chrysler and would be handing control to Cerberus including the $19 billion retirement liabilities for US employees. Ron Gettelfinger, the President of the United Auto Workers have welcomed the deal and promised to help in the recovery of the ailing US carmaker.

It can be remembered that Chrysler has posted a loss in the quarter amounting to 1.49 billion euros from a profit of 641 million euros. The loss includes reorganization expenses of 941 million euros. DaimlerChrysler also shared 120 million euros to assist “troubled suppliers” and added 54 million euros to cut administration and management jobs.

In addition, existing projects with Mercedes-Benz will also continue, providing opportunities to share development costs. There will also be a joint council consisting of management board representatives that be formed to discuss business projects. The deal is expected to be completed in the third quarter. The Pension as well as the health-care costs associated with Chrysler will be taken over by the new company.

Why sell Chrysler?

The merger was not working from the very beginning as a matter of fact DaimlerChrysler’s stock peaked five months after the merger and never recovered since then. Chrysler lost $680 million last year and surrendered market share to Toyota and was relying too much on the sluggish North American market. Zetsche has failed to keep Chrysler profitable after the reorganization which he himself has started.

Since 1998 Chrysler has posted annual profits of only $5 billion while its losses escalate infuriating investors further. The latest recorded loss by Chrysler marks a third descent into losses since the last time that Lee Iacocca saved the automaker from bankruptcy 25 years ago. To keep itself afloat Chrysler has reduced its workforce by 13,000 and closed one of its factories. It has also unveiled new models in the hope to offset the decline in sales last 2006.

Chrysler CEO Tom LaSorda has again vowed to get Chrysler back to profitability since now he has all the time to really focus on the recovery of the automaker without the distractions from analysts and the need to submit quarterly reports, according to Cerberus Chairman John Snow in an interview just recently.

The buck stops here

Uwe Treckman, an equity strategist at Dresdner Bank said, “Once Chrysler has been sold the cash-flow to sales-ratio will improve significantly.”

The Mercedes Car Group will also implement a profit recovery plan that will include Smart, Mercedes-Benz and Maybach brands especially now that Chrysler will finally separate from them. The growing demand for heavy trucks in Europe and Asia are also helping to offset the loss Chrysler. Mercedes-Benz earnings before interest and tax were 792 million euros in the quarter from a loss of 735 million euros a year earlier.

For the first quarter, Mercedes-Benz Car Group sales declined by 2.8 percent trailing behind larger rivals like the Bayerische Motoren Werke AG and Volkswagen AG’s Audi luxury car business. Despite the decline, Mercedes-Benz is still able to come up with remarkable sales figures for its most expensive vehicles like the S-Class full-sized sedan and the GL-Class large sport utility vehicle which has given the brand more profit compared to its other models.

Financial Security is a false concept that developed in American society based on the idea that security comes from the perceived reliability of a regular or planned paycheck. Many people, believing in the commitment of their corporations to their well-being, have found themselves downsized, layed-off, outsourced, transferred, or, in some cases, even fired. The immediate reality becomes harshly apparent and sadly disappointing.

The bottom line is that Corporate America will always be focused on the bottom line. As a dependent corporate employee, you are subject to the whims of the corporation. You have absolutely no control over how much you earn, where you work, the longevity and reliability of your income, or your position. You are simply a number. At any given moment, some nameless pencil-pushing number-cruncher, can deem that you are no longer an asset to the company and, rather, have become a liability. At any given moment, it can be deemed that you no longer factor into the profitability of the corporation – and you’re OUT. They don’t care if you have a mortgage to pay, 3 kids in college or a new shiny car with a hefty payment. They don’t care that you’ve come in early for the last 9 years or given 20 years of your life to them. The bottom line is that you don’t affect the bottom line in a positive way…so you’re OUT.

Corporations no longer hold value in employee commitment or dedication. Each day, companies are choosing to cut costs by outsourcing to less expensive countries with cheaper labor, downsize, and reduce costs by eliminating cost of living increases, benefits and retirement guarantees. Recently, the media has been focusing on the deliberate actions of corporations that cost employees each year. The Christian Science Monitor, on November 7th, 2005, featured an article, “Workers Face Paycheck Pinch”. In the article, the author, Mark Trumbell, details the lag of Corporate America to maintain pay increases with inflation:

“For all its strength, the current economic expansion is not boosting the American worker’s paycheck. Wages have been rising nominally: Average pay rose 8 cents last month to $16.27 an hour, according to a government report Friday. That’s not fast enough to counter inflation.

By one common measure, average pay for an hour’s work has less purchasing power than it had four years ago – when the current growth cycle began. It’s a pattern of weak wage growth that’s now several years old, but the trend has worsened in recent months. Wages for the most recent quarter were 2.3 percent lower, after inflation, than workers received a year before”

Time Magazine recently featured an article entitled “Broken Promises”

“It was part of the American Dream, a pledge made by corporations to their workers: for your decades of toil, you will be assured retirement benefits like a pension and health care. Now more and more companies are walking away from that promise, leaving millions of Americans at risk of an impoverished retirement.”

“Corporate promises are often not worth the paper they’re printed on. Businesses in one industry after another are revoking long-standing commitments to workers.” (Bartlett and Steele, October 31, 2005, p. 32-33)

So, how do you achieve Financial Security in this changing global economy? Employers aren’t even keeping up with inflation and are doing everything in their power to reduce benefits and retirement income. The days of being rewarded for loyalty to corporations are long gone – it’s now every person for themselves. In addition, loop holes in corporate law enable companies to restructure, file bankruptcy and maneuver their way out of promises to employers to provide benefits.

In reality, true Financial Security is belief in yourself and your ability to instinctively create income for yourself at anytime, anywhere. Entrepreneurs understand true Financial Security. They’re self-reliant, creative, and independent and solution focused. We know that at any given time, regardless of the economy, trends, timing, etc. that we have the skills, know-how, and guts to create our life. Entrepreneurs refuse to be dependent on or subject to the whims or decisions of corporate America, rather establishing themselves as corporations, producing their own incomes through commitment, service and sheer motivation. We are responsible for our own retirements and count on the promises of no one. Entrepreneurs ARE financial security and as such we reap the rewards.

There are many opportunities for people to become successful entrepreneurs. Thousands of people have made fortunes on the internet alone. Decide what type of business you want, what your ultimate goal is (time, money, leisure, etc) and go from there. A common misconception is that businesses take thousands of dollars to start. It is true of some, but there are many lucrative opportunities available for nominal start-up costs. Once you make the decision to be self-employed, do your research, find the right business for you and move forward from there.

Is Live-In Home Care Right for Your Loved One In New Jersey?

Live- in home care offers many advantages to other types of homecare. Most seniors, when asked, would prefer to remain in their own homes as long as possible. Live-in home health care offers an affordable alternative to nursing homes and assisted living facilities. Many people believe that live-in care is too expensive. In fact, a live-in home care aide is often times the most cost effective option, usually comparable in price to paying hourly for 8 hours of care daily.

For many people, deciding on and finding appropriate care for a parent or elderly relative can be a daunting task. Your loved on may be in the middle of a health crisis or perhaps you are trying to anticipate future needs. But you may ask yourself, “What is the best option?” For many, live-in home health care is the answer.

For family members, knowing their loved one has an additional person in the house can be comforting and in many cases, vital to the seniors staying in their own homes.

Having one caregiver in the home around the rather than several caretakers hourly also offers the opportunity for continuity of care, allowing the home health aide to get to know your loved one and his or her personal preferences.

Knowing when it’s time for a live-in caregiver is difficult for many caregivers. Most people wait too long. Some indicators that it may “be time” for 24 hour care is when:

-your loved one needs 8 hours or more care daily

-living with family is not an option

-nursing home or assisted living is not desired

-your loved one needs help with activities of daily living (ADLs) such as:

*toileting

*bathing

*dressing

*moving around

*eating

*managing medications

Additionally, if you answer YES to any or all of the following questions, a live-in may be the right option for you loved one:

-Are you uncomfortable leaving your loved one alone for a period of time?

-Are you afraid of your loved one falling?

-Are you afraid of your loved one forgetting to take medications?

-Is your loved one forgetful to the point where you are concerned they might leave the stove on or leave doors unlocked?

-Does your own schedule prevent you from doing the things your loved ones needs?

-Do you feel having around the clock care would be helpful but more expensive than you can afford?

-Did your loved one’s doctor prescribe in-home care?

Well informed home care services along with professionals such as elder law attorneys and geriatric care managers and can often help answer questions not only about the live-in process but also about various ways to pay for it. Certain insurance policies such as long term care insurance and benefit plans such as VA pension plans often pay for this type of care. Contacting a reputable home care company in your area can answer any additional questions that you may have and alleviate your concerns, therefore, clearing the path keeping your loved one safe and happy.

Murphy Ortiz is the manager of Family Choice Home Care. Family Choice is a senior approved referral agency specializing in Live-In caregivers throughout New Jersey and Philadelphia. For more information, go to www.familychoicecares.com or call 856-273-7700 in New Jersey or 610-616-5140 in Pennsylvania

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So Just how important is an Automated System to the Forex trading system?

Before we answer that question, let us first determine how large Forex trading market is. From there, we will know the importance of automated systems for the Forex market.

It is true that the Forex market is the largest market around the world not just in terms of average daily turnover and average revenue per trader. It is also the largest market in terms of participants.

You name it, we’ve got it. Take a look at the following:

BANKS – they are not just for saving money and lending capital to entrepreneurs, but they are one of the major players in Forex market. Banks cater both to large quantity of speculative trading and daily commercial turnover. Well-established banks can trade billions of dollars worth of foreign currencies everyday. Some of the trades are undertaken on behalf of their clients, but most are through proprietary desks.

COMMERCIAL COMPANIES – these commercial companies trade small quantities of foreign currencies compared to larger banks and their trades produce small and short-term impact on the market rates. However, the trade flows from transactions made by commercial companies are essential factors with regards to the long-term direction of the exchange rate of a certain currency.

CENTRAL BANKS – central banks play an important function in the Forex market. They have the control over the supply of different currency, inflation, and interest rate. In addition, they have also official target rates for the currencies that they are handling. They are responsible for stabilizing the Forex market through the use of foreign exchange reserves. Their intervention in the market is enough to stabilize a certain currency.

INVESTMENT MANAGEMENT FIRMS – these firms commonly manage huge accounts on behalf of their clients such as endowments and pension funds. They are using the Forex market to facilitate transactions, specifically in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases.

RETAIL FX BROKERS – they handle a fraction of the total volume of Forex market. A single retail Forex broker estimates retail volume of between 25 to 50 billion dollars each day, which is estimated to be at 2% of the total market volume.

SPECULATORS – these are individuals who purchase and sell foreign currencies and profit through fluctuations on its price as opposed to popular methods such as interest and dividends. They perform the important role of transferring the risk to individuals who do not wish to bear it.

In Forex market alone, there are already six major players partaking on the $1.8 trillion worth of daily turnover. With a large number of Forex players, there is really a need in switching from manual to automated Forex trading system.

Among the aforementioned major Forex players, the automated trading system is of great advantage to the speculators. Since they focus on the price fluctuations of various foreign currencies in order to profit, the real time data analysis will help them determine trades that will give advantage to them.

There are several automated Forex trading systems available in the market. There are also Automated Forex Systems that are offered for free or as part of their trading account acquired from their Forex brokers or agents. Such complimentary system packages are typically elementary trading system. Thus, if you are looking for more features, you can avail of it through additional payments.

There are two types of automated Forex trading system. These are discussed in the following:

Desktop-based system – all Forex-related data are stored on your desktop’s hard drive. This system is unpopular to Forex traders because all data are susceptible to computer virus contamination and other security problems. Worse, when the computer malfunctions, all essential information might be lost and cannot be retrieved (unless you have some back-up files of your own). However, it is little expensive compared to the other types of automated trading system.

Web-based system- the security of your Forex account and other data are provided by your web-based provider. These are hosted on secured servers. It is also convenient in the sense that there will be no software required and it is universally compatible with your Internet browser.

You may also try different automated trading system demos first so that you will be able to determine the automated Forex trading system that suits your personal preference and needs.

Even if you are just a small-time Forex player, it will be to your advantage if you will use an automated Forex trading system for your future trades.