If you're like 80% of the people in the world you don't have as much in your investment accounts as you did one year ago. Whether you should change Financial Advisors or not, now is a good time to asses the performance of your current advisor and decide if it is time to make a change. I want to make it clear that I am speaking of a Financial Advisor not an Investment Advisor, there are less then 5% of the world's population that should be seeking the services of an Investment Advisor. The investment markets are not a place for most of us to turn to make money; they are a place for us to preserve the capital that we've accumulated and grow that capital at reasonable rates of return. Too many of us lost a sizable amount of our capital in the 2001 Tech Bubble only to loose more in the Sub Prime Bubble because we were working with an Investment Advisor not a Financial Advisor.
The first step in choosing your new Financial Advisor is for you to decide what you want from your advisor. Here are some suggestions:
• Help me preserve the capital I have been able to accumulate and grow it at a conservative rate of return.
• Help me to live within my means and set an investment strategy based on my needs and goals.
• Help me protect my family form the loss of my earning ability or my death.
• Help me and my family achieve our financial goals prior to retirement.
• Help me accumulate enough to enjoy a comfortable retirement.
• Help me assess my need for long term care insurance.
• Help me establish and estate plan.
Once you know what you want from your advisor you'll need to find a qualified provider. As in all professions the first qualification you need to look for is education. Your potential advisors will have a Series 6 or a Series 7 securities license as well as an insurance license and a variable products license. A Series 6 allows them to sell mutual funds and a Series 7 allows then to sell stocks, bonds, options as well as mutual funds. A Series 7 is a more in-depth course of study then the Series 6, so I'd eliminate anyone who doesn't have a Series 7 securities license.
Seventy percent of the people representing themselves as Financial Advisors stop their education beyond their licenses and their required annual continuing education credits. It's the other 30% of the advisors that you are looking for. These are the people with initials behind their names representing professional designations. At the top of this designation pecking order is the CFP (Chartered Financial Advisor) designation. A CFP is comparable to a master's degree in financial planning; it takes three years of study and at least three years of practical experience. To find a CFP in your community go to: (http://www.cfp.net/search) Other designations like the ChFC (Chartered Financial Consultant) and CLU (Chartered Life Underwriter) are focused on specific segments of the financial advisory field. These designations are comparable to Board Certifications in the medical fields, and I personally would not put my finances in the hands of anyone who doesn't take their profession seriously enough to seek all the education that is available. This search can leave you with a list of three to three hundred depending on the size of your community. I suggest that you check www.BestofUS.com, a website that lists the best of ten professions across the United States. This should help you bring your list down to a manageable number of qualified advisors.
Next go to the NASD (National Association of Securities Dealers) website and look up your short list of qualified advisors.
(http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/index.htm) Here you'll be able find out your potential advisors work history, license history and if they have had any legal or disciplinary action brought against them. We've gone through some pretty tough financial times over the past ten years and a lot of good advisors have been sued, so use this information as a means of asking your potential advisors questions. “Can you tell me what these issues are about?” Now Google your short list and see what you find; you'll be surprised what you'll learn.
At this point, you need to sit down with those left on your short list. Here is a list of questions that you should ask.
• What is your approach to financial planning? If they don't address the “Help me” points above their not a Financial Advisor. If they start talking about Managed Accounts, Sector Investing, Momentum, Technical verse Fundamentals, or Option Strategies your talking to and Investment Advisor.
• What was your book of business worth on March 1, 2008 and what is your book of business worth today? Can I see supporting reports? Their going to ask to see your finances, it's fair for you to ask to see theirs and if it's down more then 25% you're in the wrong place.
• How are you paid? There are only three possible answers here; commissions, asset base compensation, or fees. Most will be a combination of the three possibilities; the one that you want to watch out for is commissions. Commissions can create a conflict of interest. Asset based compensation means as your assets grow their compensation grows or as your assets go down so does their compensation. I liked that it results in a common objective. Fees will involve special work like a financial plan or a research project relative to your specific situation, and that's fair.
• How often will we meet to review my situation? This needs to be at least twice a year.
• Tell me about yourself. How long have your been in the business? Do your have any professional designations? Have you had any legal or disciplinary action taken against you? What is your employment and education background? Have you written any books or articles that I can read? You know all the answers, just sit back and judge.
If you'll follow this process you'll find the Best Financial Planner for you. You may end up with the person that you've been using, but you now know they are qualified to provide you with the service that you need from your new Financial Advisor.
Choosing a Financial Advisor can be as important as choosing a doctor, so do your homework and then take responsibility for your decision. As in managing your health you have to take an active role in the management of your finances; stay involved and understand everything.
Saturday, March 21, 2009
Saturday, March 7, 2009
If you could manipulate the intelligence of your children; “Would you?”
With our increasing knowledge of genes and how they predetermine who our children will become and where they will fit into society the manipulation of our children’s intelligence as well as physical abilities will become a part of choosing your partner in the future.
Intelligence is the mental capability to reason, solve problems, think abstractly, learn and understand new material, and profit from past experience. Intelligence is the primary element that determines where we fit in to society, how we will make our living, and what you social economic status will be.
History
Intelligence tests date back to the late 19th century; the works of Sir Frances Galton explored the difference in the accomplishments of generations of the English aristocracy. Alfred Binet expanded on Galton's work to develop a test to be administered to French children to assist in predicting their academic success. American psychologist, Lewis Terman modified Binet's test in the early 1900's to make it applicable for adults and establishing standards for performance relative to age. He also developed a scoring system which he called the intelligence quotient or IQ.
Today's IQ tests no longer compute scores using the IQ formula. Today's tests give a score that measures the participant's performance relative to the average performance of others of the same age who have taken the test referred to as “ratio IQ”; others are based on a mathematical transformation of a raw score on the IQ Test based on the rank of that section in a normalization sample referred to a “deviance IQ score”. Under the “deviance method” the average score is arbitrarily set at 100, thus those scoring above the average of 100 are considered more intelligent up to genius and those who score below 100 are considered less intelligent.
The two scoring methods yield similar results near the middle of the bell curve, but the older, “ratio IQs”, yielded far higher scores for the intellectually gifted — which explains how Marilyn vos Saeant achieved a “ratio IQ” score of 228, a score that is unattainable under the “deviance method” of scoring.
Recent Findings
The current consensus is that general human intelligence is based on the volume and location of gray matter tissue in the brain. It is believed that the frontal lobes, specifically the lateral prefrontal cortex, are critical for fluid intelligence. A 2006 study of 307 children which measured the size of their brain then measured verbal and non-verbal skills indicated that there is a relationship between IQ and the structure of the cortex.
Over the past 100 years, IQ scores have increased at an average rate of three IQ points per decade in most parts of the world. This has been explained by better nutrition, smaller families, better education, and heredity. It is believed that 50% to 80% of a childs intelligence is attributable to the childs parents and the genes that they passed on to the child. Studies of twins raised apart substantiate these beliefs. It had been widely believed that through education we can improve upon our intelligence, but this is often not the case. Vocabulary size, for example, is more effected by heredity than by environment even though every word that one knows has to be learned. In our society words are readily available to everyone and the number of words that we learn has more to do with our genetic predisposition to learn then the vocabulary of the people around us.
The genetic effects on intelligence increase as the child ages, starting at 20% contribution in infancy and growing to 80% in adulthood, supporting the theory that genes provide an inherent propensity to learn and and retain.
However, social economic conditions do have an effect on developed IQ. It is believed that the potential is passed within the genes but social economic conditions determine if the inherent potential is reached. Within an impoverished family up to 60% of variance in IQ can be attributed to environment while the contribution of genes is zero. On the other end of the social economic spectrum the opposite is true; family environment has little to do with IQ variance while inherited genes are the primary determining factor of IQ.
A recent study, April 2008, at the University of Michigan and Bern suggests that intelligence can be marginally altered and changed over time through the use of challenging activities thus producing changes in gene expression patterns of the brain. Musical study at a young age tends to increase the potential for full achievement of IQ potential. If this proves to be true it would be contrary to prior held beliefs about the development of intelligence.
Studies conducted in Scotland of 11,282 individuals between the 1950's and 1960's support the belief that people with higher IQ's live longer, tend to not suffer from sever depression, schizophrenia or Post-Traumatic Stress Disorder. More recent studies, 2004, show that tests of lower cognitive ability at a young age can serve as an early predictor of a propensity for the development of Alzheimer's and dementia in a persons later years.
Putting this all together would indicate that a childs intelligence level is primarily determined by the intelligence levels of his or her mother and father and grandparents. From that point on the child will benefit from being part of a small affluent family that feeds them well and places them in a challenging educational environment.
Once IQ is developed to its fullest potential it becomes a good predictor of success in acidemic pursuits and some career paths. IQ does have substantial influence on academic achievement, while academic achievement has little influence on future IQ scores. IQ relates well to auditory,linguistic, memory, and academic achievement levels, but is less relevant when body speed, eye-hand coordination, and hard work are needed for job performance.
IQ Scores as a predictor of future income is highly debated. It is not difficult to point to and individual or group of individuals with low IQ's yet earning extremely high incomes. This can usually be explained by some other inheritable trait that they have nourished thus maximizing that traits potential. With few exceptions it is generally agreed that it is important to have an above average IQ score to achieve above average income but highest IQ scores do not necessarily come with higher income levels. Below you'll find the average earnings of some of the career paths that might be considered and the level of education required to make entry into the career field. The incomes shown represent the average income with a deviation of 40% plus or minus for highest in the field to the lowest in the field.
Career Degree Needed Average Earningsdiv>
Banking Masters $180,000
Dentist DDS $125,000
Dermatoligest MD $225,000
Heart Surgeon MD $365,000
Orthopedic Surgeon MD $405,000
Plastic Sergeon MD $325,000
University Dean Masters $135,000
College President Masters $200,000
Attorney Intelectial Property LD $200,000
Judge LD $150,000
Areospace Engineer Bachelors $110,000
Actor Performer None $50,000
Professional Athelete None $30,000
Director of Government Affears Bachelors $115,000
Plant Manager None $125,000
Software Engineer Bachelors $110,000
Geophysicist Bachelors $145,000
Petroleum Geologist Bachelors $145,000
Airline Pilot Bachelors $110,000
Nerosurgeon MD $467,000
Small Business Owner None $258,000
Intelligence is the mental capability to reason, solve problems, think abstractly, learn and understand new material, and profit from past experience. Intelligence is the primary element that determines where we fit in to society, how we will make our living, and what you social economic status will be.
History
Intelligence tests date back to the late 19th century; the works of Sir Frances Galton explored the difference in the accomplishments of generations of the English aristocracy. Alfred Binet expanded on Galton's work to develop a test to be administered to French children to assist in predicting their academic success. American psychologist, Lewis Terman modified Binet's test in the early 1900's to make it applicable for adults and establishing standards for performance relative to age. He also developed a scoring system which he called the intelligence quotient or IQ.
Today's IQ tests no longer compute scores using the IQ formula. Today's tests give a score that measures the participant's performance relative to the average performance of others of the same age who have taken the test referred to as “ratio IQ”; others are based on a mathematical transformation of a raw score on the IQ Test based on the rank of that section in a normalization sample referred to a “deviance IQ score”. Under the “deviance method” the average score is arbitrarily set at 100, thus those scoring above the average of 100 are considered more intelligent up to genius and those who score below 100 are considered less intelligent.
The two scoring methods yield similar results near the middle of the bell curve, but the older, “ratio IQs”, yielded far higher scores for the intellectually gifted — which explains how Marilyn vos Saeant achieved a “ratio IQ” score of 228, a score that is unattainable under the “deviance method” of scoring.
Recent Findings
The current consensus is that general human intelligence is based on the volume and location of gray matter tissue in the brain. It is believed that the frontal lobes, specifically the lateral prefrontal cortex, are critical for fluid intelligence. A 2006 study of 307 children which measured the size of their brain then measured verbal and non-verbal skills indicated that there is a relationship between IQ and the structure of the cortex.
Over the past 100 years, IQ scores have increased at an average rate of three IQ points per decade in most parts of the world. This has been explained by better nutrition, smaller families, better education, and heredity. It is believed that 50% to 80% of a childs intelligence is attributable to the childs parents and the genes that they passed on to the child. Studies of twins raised apart substantiate these beliefs. It had been widely believed that through education we can improve upon our intelligence, but this is often not the case. Vocabulary size, for example, is more effected by heredity than by environment even though every word that one knows has to be learned. In our society words are readily available to everyone and the number of words that we learn has more to do with our genetic predisposition to learn then the vocabulary of the people around us.
The genetic effects on intelligence increase as the child ages, starting at 20% contribution in infancy and growing to 80% in adulthood, supporting the theory that genes provide an inherent propensity to learn and and retain.
However, social economic conditions do have an effect on developed IQ. It is believed that the potential is passed within the genes but social economic conditions determine if the inherent potential is reached. Within an impoverished family up to 60% of variance in IQ can be attributed to environment while the contribution of genes is zero. On the other end of the social economic spectrum the opposite is true; family environment has little to do with IQ variance while inherited genes are the primary determining factor of IQ.
A recent study, April 2008, at the University of Michigan and Bern suggests that intelligence can be marginally altered and changed over time through the use of challenging activities thus producing changes in gene expression patterns of the brain. Musical study at a young age tends to increase the potential for full achievement of IQ potential. If this proves to be true it would be contrary to prior held beliefs about the development of intelligence.
Studies conducted in Scotland of 11,282 individuals between the 1950's and 1960's support the belief that people with higher IQ's live longer, tend to not suffer from sever depression, schizophrenia or Post-Traumatic Stress Disorder. More recent studies, 2004, show that tests of lower cognitive ability at a young age can serve as an early predictor of a propensity for the development of Alzheimer's and dementia in a persons later years.
Putting this all together would indicate that a childs intelligence level is primarily determined by the intelligence levels of his or her mother and father and grandparents. From that point on the child will benefit from being part of a small affluent family that feeds them well and places them in a challenging educational environment.
Once IQ is developed to its fullest potential it becomes a good predictor of success in acidemic pursuits and some career paths. IQ does have substantial influence on academic achievement, while academic achievement has little influence on future IQ scores. IQ relates well to auditory,linguistic, memory, and academic achievement levels, but is less relevant when body speed, eye-hand coordination, and hard work are needed for job performance.
IQ Scores as a predictor of future income is highly debated. It is not difficult to point to and individual or group of individuals with low IQ's yet earning extremely high incomes. This can usually be explained by some other inheritable trait that they have nourished thus maximizing that traits potential. With few exceptions it is generally agreed that it is important to have an above average IQ score to achieve above average income but highest IQ scores do not necessarily come with higher income levels. Below you'll find the average earnings of some of the career paths that might be considered and the level of education required to make entry into the career field. The incomes shown represent the average income with a deviation of 40% plus or minus for highest in the field to the lowest in the field.
Career Degree Needed Average Earningsdiv>
Banking Masters $180,000
Dentist DDS $125,000
Dermatoligest MD $225,000
Heart Surgeon MD $365,000
Orthopedic Surgeon MD $405,000
Plastic Sergeon MD $325,000
University Dean Masters $135,000
College President Masters $200,000
Attorney Intelectial Property LD $200,000
Judge LD $150,000
Areospace Engineer Bachelors $110,000
Actor Performer None $50,000
Professional Athelete None $30,000
Director of Government Affears Bachelors $115,000
Plant Manager None $125,000
Software Engineer Bachelors $110,000
Geophysicist Bachelors $145,000
Petroleum Geologist Bachelors $145,000
Airline Pilot Bachelors $110,000
Nerosurgeon MD $467,000
Small Business Owner None $258,000
Sunday, March 1, 2009
Taking An Active Role in Molding An Intelligent Generation
Intelligence is the mental capability to reason, solve problems, think abstractly, learn and understand new material, and profit from past experience. In tomorrows world intelligence will be increasingly important in determining where our children and grandchildren will find their place in our global society. For the past century we have measured intelligence in IQ, or Intelligence coefficient. As parents and grandparents we need to take an active role in shaping the intelligence of our current and future children and grandchildren. It is currently believed that IQ is affected by two factors; inherited genes and family environment.
History of Measuring Intelligence
Intelligence tests date back to the late 19th century; the works of Sir Frances Galton explored the difference in the accomplishments of generations of the English aristocracy. Alfred Binet expanded on Galton's work to develop a test to be administered to French children to assist in predicting their academic success. American psychologist, Lewis Terman modified Binet's test in the early 1900's to make it applicable for adults and establishing standards for performance relative to age. He also developed a scoring system which he called the intelligence quotient or
IQ.
Today's IQ tests no longer compute scores using the IQ formula. Today's tests give a score that measures the participant's performance relative to the average performance of others of the same age who have taken the test referred to as “ratio IQ” others are based on a mathematical transformation of a raw score on the IQ Test based on the rank of that section in a normalization sample referred to a “deviance IQ score”. Under the “deviance method” the average score is arbitrarily set at 100, thus those scoring above the average of 100 are considered more intelligent up to genius and those who score below 100 are considered less intelligent.
The two scoring methods yield similar results near the middle of the bell curve, but the older, “ratio IQs”, yielded far higher scores for the intellectually gifted — which explains how Marilyn vos Saeant achieved a “ratio IQ” score of 228, a score that is unattainable under the “deviance method” of scoring.
Recent Findings on Influancing Intelligence
Over the past 100 years, IQ scores have increased at an average rate of three IQ points per decade in most parts of the world. This has been explained by better nutrition, smaller families, better education, and heredity. It is believed that 50% to 70% of a childs intelligence is attributable to the childs parents and the genes that they passed on to the child. Studies of twins raise apart substantiate these beliefs.
Vocabulary size, for example, is more effected by heredity than by environment even though every word that one knows has to be learned. In our society words are readily available to everyone and the number of words that we learn has more to do with our genetic predisposition to learn then the vocabulary of the people around us.
However, social economic conditions do have an effect on developed IQ. Within an impoverished family up to 60% of variance in IQ can be attributed to environment while the contribution of genes is zero. On the other end of the social economic spectrum the opposite is true; family environment has little to do with IQ variance while inherited genes are the primary determining factor of IQ.
A recent study, April 2008, at the University of Michigan and Bern suggests that intelligence can be altered and changed over time through the use of challenging activities thus producing changes in gene expression patterns of the brain. If this proves to be true it would be contrary to prior held beliefs about the development of intelligence.
Studies conducted in Scotland of 11,282 individuals between 1950 and 1960 support the belief that people with higher IQ's live longer, tend to not suffer from sever depression, schizophrenia or Post-Traumatic Stress Disorder. More recent studies, 2004, show that tests of lower cognitive ability at a young age can serve as an early predictor of a propensity for the development of Alzheimer's and dementia in a persons later years.
The current consensus is that general human intelligence is based on the volume and location of gray matter tissue in the brain. It is believed that the frontal lobes, specifically the lateral prefrontal cortex, are critical for fluid intelligence. A 2006 study of 307 children which measured the size of their brain then measured verbal and non-verbal skills indicated that there is a relationship between IQ and the structure of the cortex.
An Active Role in Our Future Generations
For centuries in Eastern and Middle Eastern societies parents and grandparents have taken an active role in choosing their children's mates. In most cases this practice was followed to maintain or improve social-economic position. With our increasing understanding of the development of intelligence choosing a mate based on intelligence may become a more widespread practice in the future. In Western societies we have tended to marry those that we attend school with, work with and socialize with. We have chosen our mates based on looks, common interests , sexual attraction and compatibility. It would be wise to add IQ score to this list.
History of Measuring Intelligence
Intelligence tests date back to the late 19th century; the works of Sir Frances Galton explored the difference in the accomplishments of generations of the English aristocracy. Alfred Binet expanded on Galton's work to develop a test to be administered to French children to assist in predicting their academic success. American psychologist, Lewis Terman modified Binet's test in the early 1900's to make it applicable for adults and establishing standards for performance relative to age. He also developed a scoring system which he called the intelligence quotient or
IQ.
Today's IQ tests no longer compute scores using the IQ formula. Today's tests give a score that measures the participant's performance relative to the average performance of others of the same age who have taken the test referred to as “ratio IQ” others are based on a mathematical transformation of a raw score on the IQ Test based on the rank of that section in a normalization sample referred to a “deviance IQ score”. Under the “deviance method” the average score is arbitrarily set at 100, thus those scoring above the average of 100 are considered more intelligent up to genius and those who score below 100 are considered less intelligent.
The two scoring methods yield similar results near the middle of the bell curve, but the older, “ratio IQs”, yielded far higher scores for the intellectually gifted — which explains how Marilyn vos Saeant achieved a “ratio IQ” score of 228, a score that is unattainable under the “deviance method” of scoring.
Recent Findings on Influancing Intelligence
Over the past 100 years, IQ scores have increased at an average rate of three IQ points per decade in most parts of the world. This has been explained by better nutrition, smaller families, better education, and heredity. It is believed that 50% to 70% of a childs intelligence is attributable to the childs parents and the genes that they passed on to the child. Studies of twins raise apart substantiate these beliefs.
Vocabulary size, for example, is more effected by heredity than by environment even though every word that one knows has to be learned. In our society words are readily available to everyone and the number of words that we learn has more to do with our genetic predisposition to learn then the vocabulary of the people around us.
However, social economic conditions do have an effect on developed IQ. Within an impoverished family up to 60% of variance in IQ can be attributed to environment while the contribution of genes is zero. On the other end of the social economic spectrum the opposite is true; family environment has little to do with IQ variance while inherited genes are the primary determining factor of IQ.
A recent study, April 2008, at the University of Michigan and Bern suggests that intelligence can be altered and changed over time through the use of challenging activities thus producing changes in gene expression patterns of the brain. If this proves to be true it would be contrary to prior held beliefs about the development of intelligence.
Studies conducted in Scotland of 11,282 individuals between 1950 and 1960 support the belief that people with higher IQ's live longer, tend to not suffer from sever depression, schizophrenia or Post-Traumatic Stress Disorder. More recent studies, 2004, show that tests of lower cognitive ability at a young age can serve as an early predictor of a propensity for the development of Alzheimer's and dementia in a persons later years.
The current consensus is that general human intelligence is based on the volume and location of gray matter tissue in the brain. It is believed that the frontal lobes, specifically the lateral prefrontal cortex, are critical for fluid intelligence. A 2006 study of 307 children which measured the size of their brain then measured verbal and non-verbal skills indicated that there is a relationship between IQ and the structure of the cortex.
An Active Role in Our Future Generations
For centuries in Eastern and Middle Eastern societies parents and grandparents have taken an active role in choosing their children's mates. In most cases this practice was followed to maintain or improve social-economic position. With our increasing understanding of the development of intelligence choosing a mate based on intelligence may become a more widespread practice in the future. In Western societies we have tended to marry those that we attend school with, work with and socialize with. We have chosen our mates based on looks, common interests , sexual attraction and compatibility. It would be wise to add IQ score to this list.
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