Russian Billionaires Lost More Than $126 Billion In Wealth Amid Ukraine Invasion

Update: Forbes Real-Time feed updates exchange rates once a day at 9:30 a.m. After factoring in the tumble of the Russian ruble against the U.S. on Thursday, Forbes estimates that Russian billionaires have lost more than $126 billion in wealth since February 16, compared to our initial report of a nearly $90 billion loss. Numbers throughout have been changed to reflect the plunging value of Russia’s currency.

Russian President Vladimir Putin summoned some of the nation’s business leaders today to a meeting at the Kremlin. At the meeting were at least 13 billionaires: Vagit Alekperov, Pyotr Aven, Andrei Bokarev, Andrei Guriev, Mikhail Gutseriev, Suleiman Kerimov, Andrey Melnichenko, Leonid Mikhelson, Alexey Mordashov, Vadim Moshkovich, Vladimir Potanin, Dmitry Pumpyansky and Vladimir Yevtushenkov, according to state-owned news agency TASS.

“What is happening is a necessary measure,” he reportedly told them. “We were simply left with no chance to do otherwise.”

None of the billionaires have apparently commented, some likely too scared of Putin to speak out against the invasion. But they are not immune.

His attack on Ukraine has not only wreaked havoc on Ukraine, it has destabilized markets around the world and hit the fortunes of even his closest allies. Tens of billions of dollars have been wiped from the fortunes of Russia’s billionaire elite as the country’s stock market and the ruble plunged after President Vladimir Putin launched a full-scale invasion of Ukraine.

Russia’s roughly 116 billionaires have lost more than $126 billion since February 16, Forbes calculates. Of that, an estimated $71 billion was wiped out on Thursday, after Russia’s Moex index closed down 33% and the ruble plunged to a record low against the dollar. The threat of sanctions extending beyond the small circle of billionaire oligarchs and businesses already targeted by the United States, United Kingdom, and European Union could bite further into the fortunes of Russia’s richest.

At least five of the billionaires at the Kremlin Thursday – Alekperov, Mikhelson, Mordashov, Potanin and Kerimov – were among the day’s biggest billionaire losers. Altogether at least 11 Russian billionaires lost $1 billion or more each on Thursday.Lukoil’s Vagit Alekperov was the biggest billionaire loser from the Moscow Stock Exchange sell off sparked by President Putin’s order to invade Ukraine.

Alekperov, a former Caspain oil sea rig worker and former Soviet oil minister who set up Lukoil, Russia’s largest independent oil producer, was the biggest loser. He saw $4.2 billion, or around 17.1% of his fortune, disappear as Russian oil and gas stocks plunged. Lukoil shares, which are listed in London and Moscow, are down more than 30% since the start of the military build up to the invasion.

Lukoil was targeted by the U.S. along with other Russian energy companies like state-owned Rosneft in 2014 by financial and technological sanctions over Russia’s seizure of Crimea and could again be targeted by Washington, Brussels and London.

‘Londongrad’ Sanctions

Billionaire Gennady Timchenko, who was targeted this week by British sanctions, was also among those whose fortunes took the biggest hits. Timchenko, who owns stakes in various Russian businesses, including gas company Novatek and petrochemicals producer Sibur, saw around $4.2 billion wiped from his fortune.

Timchenko, who is still worth more than $19 billion, was named as a part of Putin’s “inner circle” in sanctions imposed by the U.S. Treasury after Russia’s annexation of Ukraine’s Crimea peninsula in March 2014. Those sanctions led Timchenko, who claims to have met Putin in the early 1990s, to sell his 43% stake in Gunvor, then the world’s fourth largest oil trading group.

The U.S. had claimed that Putin himself had investments in Gunvor and may have had access to the group’s funds, allegations denied by the Geneva-based trading house. Gunvor has disputed that allegation.VTB Capital has offices in the heart of London’s financial district and today was named in new sanctions imposed after Russia’s invasion of Ukraine.

The British government earlier this week also sanctioned three other super wealthy Russians , including Putin’s former son-in-law (and former billionaire) Kirill Shamalov. Following Russian strikes on Ukraine it also announced an asset freeze of Russia’s banks, and a ban on Russian nationals from holding more than $66,000 (50,000 pounds) in a U.K. bank account.

Prime Minister Boris Johnson has also reportedly pushed Western leaders to go further and eject Russia from the SWIFT international payments system, one of the main pipelines for international finance and banking. Czech President Milos Zeman, once one of Putin’s keenest supporters in Europe, also called for Russia to be cut out from SWIFT for a “crime against peace” despite hesitance from some European leaders over the economic fallout for all parties of locking Russian businesses and energy companies out of the payments system.

British opposition lawmakers called for Prime Minister Boris Johnson to go further and seize the assets of the Russian billionaire Roman Abramovich. The billionaire owner of Premier League soccer team Chelsea FC, who made his fortune in Russia’s oil industry after the fall of the Soviet Union, has repeatedly become caught in the long-running diplomatic tensions between London and Moscow.

“We have more individuals on our list, who we are ready to sanction,” U.K. Foreign Secretary Liz Truss told LBC radio on Wednesday when questioned if Abramovich was a target for sanctions. “Nobody is off the table.”

Abramovich, who had more than $1 billion wiped from his fortune this week, is reportedly without a British visa after his entrepreneur visa reportedly expired in 2018, but has been able to visit his soccer team thanks to newly acquired,  Portuguese citizenships. Any moves the British government makes towards his ownership of his beloved soccer team could be threatened by a $2 billion loan he made to Chelsea. Sports fans and many others will be watching.

Russia’s Big Losers  (measures Thursday’s one day drop)Leonid Mikhelson

Down $4.5 billion, – 16.5%

Major shareholder of gas producer Novatek.

Vagit Alekperov

Down $4.2 billion, – 17.1%

Former Caspian oil sea rig worker and former Soviet oil minister is chairman of Russia’s largest independent oil company, Lukoil.

Alexey Mordashov

Down $4.2 billion, – 14.4%

Majority shareholder in steel company Severstal, which he ran for 19 years as CEO.

Gennady Timchenko

Down $4.2 billion, -18.1%

Timchenko was hit with sanctions on Tuesday after Putin deployed forces to the two regions in eastern Ukraine.

Vladimir Lisin

Down $4.1 billion, – 13.5%

Chairman of NLMK Group, a leading manufacturer of steel products.

 Suleiman Kerimov

Down $3.2 billion, – 22.7%

A trained economist, Kerimov made a career investing in distressed companies in Russia. Most of his fortune now comes from his family’s stake in Russia’s biggest gold producer, Polyus.

Vladimir Potanin

Down $3 billion, – 10.7%

Named as a close associate of the Russian president by the U.S. Treasury in 2018, most of his fortune is held in mining giant Norilsk Nickel.

Oleg Tinkov

Down $2 billion, – 52.2%

The founder of Russian bank, Tinkoff, was sentenced last year for filing a false tax return and agree to pay more than half a billion to the U.S. government. .

Mikhail Shelkov

Down $1.7 billion, – 38.9%

Former head of the investment division of state-owned Rostec, which controlled military contractors in Russia, he now gets most of his fortune from his stake in VSMPO-AVISMA, the world’s largest titanium producer for the aerospace industry.

Leonid Fedun

Down $1.4 billion, – 14.2%

Former military man-turned-financial whiz is Alekperov’s right hand man at Lukoil.

Roman Abramovich

Down $1.2 billion, – 8.4%

British opposition lawmakers have demanded the seizure of Abramovich’s assets including Chelsea football club. It won’t be so easy.

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I joined Forbes as the Europe News Editor and will be working with the London newsroom to define our coverage of emerging businesses and leaders across the UK and Europe. Prior to joining Forbes, I worked for the news agency Storyful as its Asia Editor working from its Hong Kong bureau, and as a Senior Editor in London, where I reported on breaking news stories from around the world, with a special focus on how misinformation and disinformation spreads on social media platforms. I started my career in London as a financial journalist with Citywire and my work has appeared in the BBC, Sunday Times, and many more UK publications. Email me story ideas, or tips, to iain.martin@forbes.com, or Twitter @_iainmartin.

Source: Russian Billionaires Lost More Than $126 Billion In Wealth Amid Ukraine Invasion

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Critics:

The fortunes of Russia’s super-rich have tumbled $32 billion this year, with the escalating conflict in Ukraine poised to make that wealth destruction much larger.

U.S. President Joe Biden on Tuesday unleashed sanctions targeting Russia’s sale of sovereign debt abroad and the country’s elites, and said he’s sending an unspecified number of additional U.S. troops to the Baltics in a defensive move to defend NATO countries.

Gennady Timchenko heads the list of Russian who have seen their fortunes drop, with almost a third of his wealth disappearing this year, according to the Bloomberg Index, a listing of the world’s 500 richest people.

Timchenko, 69, the son of a Soviet military officer who met and befriended Russian Federation President during the early 1990s, now has a fortune of about $16 billion, with the bulk of his wealth derived from a stake in Russia gas producer Novatek, according to Bloomberg’s wealth index.

ALSO READ: West preps more sanctions if Russia launches full-scale Ukraine invasion

Fellow Novatek shareholder Leonid Mikhelson’s fortune has tumbled $6.2 billion this year, while Lukoil Chairman Vagit Alekperov’s net worth has declined about $3.5 billion in the same period as the energy company’s stock has slid almost 17%.

The country’s 23 currently have a net worth of $343 billion, according to the wealth list, down from $375 billion at year-end.

Markets slumped further this week after Putin recognized two separatist republics in Ukraine, leading to Germany halting an energy project with Russia and the U.K. imposing sanctions on five of the country’s banks and three of its wealthy individuals, including Timchenko.

Also on the U.K.’s sanctions list are Boris Rotenberg, 65, and his nephew, Igor, 48, whose families made their fortune through gas-pipeline construction firm Stroygazmontazh.

Igor’s father, Arkady, one of Putin’s former judo sparring partners, sold the pipeline firm in 2019 for about $1.3 billion. He purchased a minority stake from his younger brother Boris five years earlier when both siblings and Timchenko were hit with U.S. sanctions over Russia’s annexation of Crimea.

Additionally, U.S. Secretary of State Antony Blinken said Tuesday he wouldn’t meet with Russian Foreign Minister Sergei Lavrov this week because it “does not make sense” given Russia’s moves in Ukraine.

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Decentralized Finance Is on The Rise What You Need To Know in 2021

Few had heard much about decentralized finance (DeFi) in its early days in late 2017 and late 2019, beyond murmurs about Bitcoin and a mysterious new digital technology called blockchain

But a pandemic can change everything. 

Since May of this year, the total value locked (TVL)—the amount of any currency locked into tokens, the vehicle of holding and moving assets on blockchain, in smart contracts on a blockchain ecosystem—in decentralized finance projects rose a whopping 2,000 percent, according to DeFi Pulse. Many investors would be hard-pressed to find such an astronomical rise of any assets or expansion of any financial ecosystem, but DeFi app developers seemed to find success. So what’s the rage, and why does it matter going into the new year? 

What is DeFi?

DeFi, many fintech leaders argue, is the world’s answer to the 2008 financial crisis. Thanks to poor decision making and a lack of proper financial regulation, legacy financial institutions brought the world’s economy to its knees in the most major financial crisis since the Great Depression. The knee-jerk reaction was to create an ecosystem dependent on every link in the chain, rather than centralized authorities—hence the term “decentralized finance.”

The concept of blockchain, a decentralized ledger, was designed to ensure financial transactions would be transparent. Moreover, transaction approval would come from network individuals incentivized to approve them by solving complex mathematical equations or by network consensus voting. 

Later, the idea of operating a decentralized financial system on a decentralized ledger, independent of legacy institutions, grew into a thriving, albeit relatively small, ecosystem. Now, users can find financial services on the distributed ledger for loans, insurance, margin trading, exchanges, and yield farming (yielding rewards from staking digital assets on a network to help facilitate network liquidity).

But there is still a way to go. Not enough consumers are comfortable with DeFi quite yet, because platform accessibility and blockchain tribalism remain a problem. Nevertheless, now the world is experiencing another economic crisis brought on by the COVID-19 pandemic, and DeFi is finally getting its day in the sun.

Related: Getting Drawn Into DeFi? Here Are Three Major Considerations

E-wallets are leveling up

For companies and individuals already active in the space, navigating the ecosystem remains impeded by technical limitations. In order to access certain markets and execute transactions on the blockchain—whether it’s borrowing or lending, staking assets in liquidity pools, or trading on an exchange—users need to own an e-wallet that’s properly connected to the ecosystem. 

E-wallets are the backbone of transactions on blockchain. Just as the digital assets they help transact and store, these wallets are secure, transparent, and easily accessible to users. At least, that’s the idea behind them, though there are various degrees of security and transparency. For DeFi to attract more users, the wallets must be compatible with multiple blockchains running financial dApps (decentralized apps that operate on a blockchain system). One of the first wallets, created by Ethereum and called “MyEtherWallet” (MEW), lacked a user-friendly interface and was challenging to grasp for people outside the hardcore crypto crowd.

Since then, a number of blockchain developers have created alternative e-wallet solutions. Most recently, Spielworks, a blockchain gaming startup, reached an agreement with Equilibrium and DeFiBox to integrate its e-wallet “Wombat,” which is currently available on the Telos and EOS blockchain mainnet (a blockchain network that is fully developed, deployed, and operational).

The Wombat wallet provides users with access to several DeFi platforms that offer token exchanges, yield farming, borrowing, and lending. Wombat recently also integrated with Bitfinex’s new EOS exchange, Eosfinex, as well as 8 other DeFi networks. Rather impressively, the wallet also offers free and fast account creation, automatic key backup, and free blockchain resources. 

Related: Cryptocurrency Innovators Need to Simplify User Experience

Developments in blockchain wallets, such as Wombat’s, will be pivotal in the next few years in the growth of DeFi applications and the movement of users toward decentralized finance and away from traditional finance. While wallets are important, so are the underlying mechanisms to piece the entire ecosystem together, because one a DeFi ecosystem is not enough if confined to just one blockchain mainnet.

Piecing it all together

“A house divided against itself cannot stand.” President Lincoln’s famous quote referred to the Civil War that ravaged the United States at the time, but his historically renowned words can apply very well to the blockchain community today. 

For DeFi to reach its maximum potential, as a decentralized ecosystem that doesn’t answer to a central authority, blockchain platforms must stand united and interoperate. Could anyone imagine if payment transfers between regular banks were not possible? How could an economy function? This is the sort of technical problem plaguing the DeFi world: Each blockchain platform has its own benefits, but each remains largely separated from the others in its own silo. The root of the problem is attitude, the other part is technical limitations.

Related: 15 Crazy and Surprising Ways People Are Using Blockchain

Ethereum and EOS are primary examples of this sort of rivalry, both of which have their own technical benefits for dApp developers. If the two ecosystems could be connected to one another, EOS-based and Ethereum-based developers alike, for example, could benefit from each other’s platform’s strengths. Users could also benefit, via financial opportunities without having to sacrifice shifting their base from one blockchain to another.

This is precisely what LiquidApps’s latest development—its DAPP Network bridging—has solved. LiquidApps’s technology provides the technical mechanisms to connect separate blockchain mainnets and recently provided its tools to EOS-based developers to successfully deploy a bridge between EOS and Ethereum.

This was shortly followed by decentralized social media app Yup’s deployment that demonstrated the possibility of moving tokens easily between different once-separate blockchain mainnets. It still remains to be seen how long it will take before blockchain platforms themselves integrate built-in cross-chain technologies, but LiquidApps is starting the next crucial step to DeFi development.

Whether it’s cross-chain technology or the e-wallets that grant access to dApps, tech developments and attitudes in the DeFi space over the next few years will determine its success. The latest developments suggest the future of DeFi looks promising. Time to go decentralized.

By: Ariel Shapira Entrepreneur Leadership Network Contributor

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Paris Fintech Forum

by O. Bussmann, CEO, Bussmann Advisory (CH) Speakers *M. Froehler, CEO, Morpher (AT) *H. Gebbing, Managing Director, Finoa (DE) *U. Shtybel, Vice president, HighCastle (UK) *N. Filali, Head of Blockchain Program, Caisse des Dépôts (FR) more on http://www.parisfintechforum.com/videos2020

99Bitcoins

Start trading Bitcoin and cryptocurrency here: http://bit.ly/2Vptr2X DeFi applications – https://defipulse.com/defi-list/ DeFi is becoming more and more popular as the main use case for cryptocurrencies. This video explains in detail what DeFi is and what you should know about before getting involved. 0:38 Bitcoin and Our Financial System 1:24 Our Centralized Financial System 1:59 What is DeFi? 2:22 DeFi Components 4:16 – DAI explained 5:51 – DEXs explained 6:33 – Decentralized money markets 8:06 Money Legos 8:56 DeFi Advantages and Risks 10:02 Conclusion For the complete text guide visit: https://bit.ly/2R35g6Z Join our 7-day Bitcoin crash course absolutely free: http://bit.ly/2pB4X5B Learn ANYTHING about Bitcoin and cryptocurrencies on our YouTube channel: http://bit.ly/2BVbxeF Get the latest news and prices on your phone: iOS – https://apple.co/2yf02LJ Android – http://bit.ly/2NrMVw2

Your Financial Year-End Checklist

2020 is over, and for many of you, it can’t end soon enough. There will be plenty of time to celebrate the end of one year and to hope for better days in the one ahead. But before we get to that, take these steps to get financially ready for 2021.

1) Review your goals: The end of the year is a great time to review the goals you made at the beginning of the year and set new ones for 2021. How did you do this year? Is there anything you’re proud of accomplishing? I like to start with bright spots because they can guide you toward success as you set new goals. But let’s be realistic, too; 2020 threw us a lot of curveballs.

Was there anything you wish you could have done better? You can also learn from any potential stumbling blocks and figure out how to use them as stepping-stones next year. You may also want to take time now to review your net worth. That’s one way to gauge the progress you’ve made in your financial health this year.

2) Update your budget: Did you save the money that you wanted to? Pay off the debt that you needed to? The end of the year gives you a solid end point to assess whether met the goals you set at the outset of 2020. What if you didn’t have a budget or financial goals? You’ve got a blank slate ahead. Why not create a budget that works? 

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3) Create a holiday bucket: Holidays can be budget breakers, so why not incorporate them into your spending goals right from the start? Christmas may look a lot different this year. But you can still create a separate bucket for holiday spending and when that money is gone, stop spending. You’ll thank yourself in January when you don’t have an unusually large credit card bill.

4) Use it or lose it: Some of your benefits—like vacation days or a medical or dependent care flexible spending account (FSA)—expire at the end of the year. Take stock of what you have left and use these benefits to your advantage. MORE FOR YOUPPP Loan Forgiveness Application Guidance For The Self-Employed, Freelancers And ContractorsSBA Approving Economic Injury Disaster Loans (EIDLs): What You Need To KnowWhat You Can Do Now To Maximize Paycheck Protection Loan Forgiveness

5) Make any last charitable contributions: December 31st is the last day your charitable contributions can be deducted on your 2020 tax return. If giving to charity is a part of your spending plan, you can use these questions to help make the most of your charitable giving.

6) Pump up your 529: Just like charitable contributions, contributions to your 529 college savings plan must be made by December 31st to count for this tax year. Find out if your state is one of over 30 that allow you to deduct your contribution. You can find the specific deduction here. If your state is one of the four that allow an unlimited deduction, keep in mind the yearly gift-tax and super-funding rules.

7) Max out your 401k: While you have until April to make contributions to your traditional IRA, Roth IRA and HSA, you can only contribute to your 401k through December 31st. So, if you have extra cash and are looking to boost your savings, consider contributing your last couple of checks entirely to your 401k. Business owners can do the same with the employee portion of your Solo 401k contributions.

8) Find your tax return: You’ll be doing your taxes before you know it, so use this time to get prepared. Review last year’s return and make a mental list of records you’ll need to assemble. Year-end is also a good time to decide whether a Roth conversion makes sense for you.

9) Review your business structure: Evaluate your business structure and the QBI deduction to identify any changes you need to make to your business. You might want to set up a solo 401k, for instance, and if so, you’ll have to act before December 31st (although you can make employer/profit sharing contributions up to the business tax filing deadline).

10) Defer income and incur expenses: If you’re a business owner, you may also want to look at ways to defer income into 2021 or pay for business expenses you anticipate for early next year. This is any easy way to reduce your tax liability for 2020. However, remember not to spend money on business expenses that you wouldn’t otherwise incur just for a tax deduction. Spending a $1 to save 24 cents still costs you 76 cents.

 11) Will and trust review: The end of the year is a good time to take stock of changes in your life—like getting married or divorced, having children, starting a business or retiring.  Your estate plan should reflect these changes. Get out your will, documentation for trusts you’ve established and powers of attorney and make sure they match your current situation.

12) Insurance documents: Insurance documents also need to cover your current situation. Take a look at your life and disability insurance policies to make sure they protect your current income and those dependent on it. Your renters or homeowners insurance should cover any additional big purchases you made during the year. And lastly, you should review your health insurance policy for any upcoming changes for 2020. For those of you enrolling in the Market Place, you have until December 15th to pick your plan.

genesis-2-1

My last bonus task is to enjoy this holiday season. I love the holidays because you can reflect and appreciate what you have. We’ve been tested a lot this year, living our lives through a pandemic, racial unrest and a contentious election. I hope the end of the year brings you comfort and peace. Follow me on Twitter or LinkedIn. Check out my website

Brian Thompson

Brian Thompson

As both a tax attorney and a CERTIFIED FINANCIAL PLANNER™, I provide comprehensive financial planning to LGBTQ entrepreneurs who run mission-driven businesses. I hold a special place in my heart for small-business owners. I spent a decade defending them against the IRS as a tax attorney and have become one as a financial advisor. It’s a position filled with hope and opportunity. It gives you the most flexibility to create the life that you want. I also understand the added stresses of running a business while being a person of color and a part of the LGBTQ community. You may feel like you don’t have access to the knowledge that others do. I’m here to help lift some of that weight from your shoulders.

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Critics:

A personal budget or home budget is a finance plan that allocates future personal income towards expenses, savings and debt repayment. Past spending and personal debt are considered when creating a personal budget. There are several methods and tools available for creating, using and adjusting a personal budget. For example, jobs are an income source, while bills and rent payments are expenses.

Contents

Financial Advisors: Here’s How Market Volatility Impacts Investor Psychology

Market volatility is a stressful reality for any investor. But when market turbulence strikes, financial advisors are in a unique position to help their clients anticipate and manage their anxiety around money. All it takes is understanding a little psychology.

And while it’s true that stock markets have improved since the recession in 2008, surveys show that investors and financial advisors still expect volatility to return throughout the next few cycles.

In fact, according to the Eaton Vance Spring 2019 ATOMIX survey, financial advisors consider managing their clients’ relationship to volatility to be one of their major concerns this year.

So what is an advisor to do? To better understand how a client might react to a volatile trend, it might help to think about their deep-rooted feelings about money and how they view their personal control of events.

Research shows that the wealthiest investors — those who make up the richest “one percent” — have a different relationship to investments than the less wealthy: They have what’s known as a heightened internal locus of control.

For the most part, humans either think that they’re in charge of what happens in their life, or they believe that life happens to them (those who believe they’re in control of their life and its outcomes have an internal locus of control).

Having an internal locus of control is associated with higher wealth, and because these people are more likely to take responsibility for the outcomes in their life, the top one-percenters are also more likely to believe in their own abilities to solve problems and achieve goals, make better investment decisions and react more calmly when volatility strikes.

Having an external locus, however, is associated with self-destructive financial behaviors.

Financial advisors can help clients move to a more centered approach by asking thoughtful questions about past financial decisions, and can assist in determining where a client’s locus of control lies.

Dr. Brad T. Klontz, an associate professor of practice in financial psychology at Creighton University Heider College of Business and the cofounder of the Financial Psychology Institute, uses what he calls “money scripts” to help understand investor behavior.

Money scripts are unconscious beliefs about money, which are developed in childhood, and drive financial behaviors as adults. Klontz considers there to be four groups: money avoidance, money status, money worship and money vigilance — and the first three are associated with lower levels of net worth, lower income and higher amounts of revolving credit.

Klontz offers questions that you can ask to determine a client’s unique script makeup.

What’s also encouraging is that, while volatility can be stressful for any investor, recent research shows that volatility can indeed lead to increased adaptability. Yale researchers found that primate brains are more actively learning when a situation is unpredictable than when the situation is easier to predict. This suggests that our brains become more engaged when facing a high-risk-high-return situation, because this is when we absorb new information and adapt for future outcomes with preferred results.

Watch our video above to see how you can leverage your clients’ psychological background to inform and build an investment strategy to help meet their goals.

From iShares:

Championing investor progress has been at the heart of BlackRock iShares’ mission from the very beginning, relentlessly pursuing better ways to invest. That’s why iShares by BlackRock is bringing you Macro Mindset, a series that equips financial advisors with psychological knowledge to enlighten their clients about the myriad factors that come into play when in tricky investment situations. To learn more about why ETFs should be considered in building a strong strategy, visit iShares.com.

Important information about iShares ETFs:

Visit www.ishares.com to view a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal.

Investing involves risk, including possible loss of principal.

Diversification and asset allocation may not protect against market risk or loss of principal.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

Source: Financial Advisors: Here’s How Market Volatility Impacts Investor Psychology

131K subscribers
What is Volatility? -The magnitude of the change -It is independent of direction, it refers to the change of ups and downs Why is it Important? -The more volatile the market is, the crazier it gets -Trends are harder to spot when they are more volatile -Swing trading becomes riskier -It is better to stick to day trading during high volatility days or months because you want to lower your risk on those days What to do on High Volatility Days: -Inverse ETFs (e.g. BGZ, SKF, TZA, FAZ) -They are opposite of the market -They are more stable than one specific stock. -Can trade off of 15 minute or 5 minutes charts (day trading charts) #marketvolatility #tradingvolatiledays #volatiledays #understandmarket #stockmarket Posted at: https://tradersfly.com/blog/understan… 🔥 GET MY FREEBIES https://tradersfly.com/go/freebies/ 🎤 SUBMIT A VOICE QUESTION https://tradersfly.com/go/ask 👀 START HERE: FOR NEW TRADERS https://tradersfly.com/go/start/ 🎉 START HERE: OPTION TRADERS https://tradersfly.com/go/start-options/ 📈 MY CHARTING TOOLS + BROKERS https://tradersfly.com/go/tools/ 💻 MY COMPUTER EQUIPMENT https://backstageincome.com/go/comput… 💌 GET THE NEWSLETTER https://tradersfly.com/go/tube/ 🔒 SEE OUR MEMBERSHIP PLANS https://tradersfly.com/go/members/ 📺 STOCK TRADING COURSES https://tradersfly.com/go/courses/ 📚 STOCK TRADING BOOKS: https://tradersfly.com/go/books/ ⚽ GET PRIVATE COACHING https://tradersfly.com/go/coaching/ 🌐 WEBSITES: https://tradersfly.com https://rise2learn.com https://backstageincome.com https://mylittlenestegg.com https://sashaevdakov.com 💌 SOCIAL MEDIA: https://tradersfly.com/go/twitter/ https://tradersfly.com/go/facebook/ ⚡ SUBSCRIBE TO OUR YOUTUBE CHANNEL https://tradersfly.com/go/sub/ 💖 MY YOUTUBE CHANNELS: TradersFly: https://backstageincome.com/go/youtub… BackstageIncome: https://backstageincome.com/go/youtub… 📑 ABOUT TRADERSFLY TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing. Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better. Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!

Here’s Why This 44-Year-Old’s Happiness Grew After She Abandoned Early Retirement

When Lisa first learned about the financial independence, retire early (FIRE) movement she was stunned that so many people, often younger than her, could possibly save enough to retire. Reading the blogs and first-person stories invigorated her. She wanted to follow suit. It changed the way she and her husband spent money. They cut out restaurants, wore old clothes and avoided coffee shops, funneling all the extra cash into paying down debt and building retirement funds.

“It really did motivate us,” Lisa said.

But as someone who has worked in the pharmaceutical industry for a number of years, she never had a huge problem with her job. The more Lisa saved, though, the more she felt annoyed at going to work. The more she saved, the more she wanted to watch HGTV before bed. The more she saved, the more she couldn’t understand why she should walk around in a coat with holes in it simply to prove that she was good with money.

The whole effort “made me unhappy,” said Lisa, who asked to only use her first name since she’s still working full-time. That’s why, four years after starting her FIRE goal of retiring young, Lisa and her husband decided to abandon the ‘retire early’ portion of their savings plan. Instead, she’s decided to focus on financial independence, but also not worry if they want to eat out on a Friday night.

Today In: Money

There’s a fine line between frugality and feeling guilty over every dime that you spend in order to save a little bit more. Those that enter FIRE often ignore that line during the accumulation phase, saving as much as possible without regard to how it makes them feel today while sometimes sacrificing their health or well being. But it’s not a feat for everyone. For Lisa, this excessive frugality only became a hindrance to life.

It doesn’t mean she’s giving up saving. Or now, suddenly, going to rack up credit card debt. Instead, Lisa, who blogs about her experience at Mad Money Monster, is reevaluating her life again, figuring out what to keep and what to ignore when it comes to her financial independence (FI) strategy.

Abandoning Her Great Health Care Wasn’t An Option

As they saved, one factor that grew increasingly concerning was the health and welfare of her mom. “My mother depends on us for help for basic living expenses,” Lisa said. She expects to care for her mother as she grows older. While Lisa was making strides paying back debt under the FIRE plan, she had to spend $2,000 on her mother’s dental expenses.

Usually that cost comes out of pocket, and they expect to have to do the same with vision care and some other wellness needs.

This unknown complicated their financial picture. But also Lisa sees her mom’s situation, and then recognizes her luck with her current health care plan, which she describes as “really good.” The idea that she would walk away from that plan, simply so she could retire early – she’s about 60% of the way to her original FIRE mark – she now views as “selfish.” And she’s not comfortable with some of the other options out there for health care coverage, including the public markets or health shares.

“For me to walk away from that [healthcare] would be kind of dumb,” Lisa added.

Keeping A High Savings Rate

Despite rejecting the idea of early retirement at this point in her mid-40s, she’s made great strides in reshaping her financial situation.

When she learned about FIRE, her and her husband had just walked away from buying a large, expensive home that would have put them in a tricky financial predicament. They thought they needed the big house because that’s what people did after getting married. Instead of getting the house, she’s paid off her student loans, two cars and some credit card debt. The family has also invested in two single-family hoes, which they rent out, covering the mortgages.

At the peak of their saving they stashed away about 70% of their income. Now it’s closer to 50%. Still a strong level, but not with early retirement as the goal.

Lisa’s realization that there’s little desire to retire before traditional age has given her the freedom to build wealth for other purposes. She has the financial knowledge now and she’s using it to provide a large inheritance for her daughter one day.

“I want to build legacy wealth for my family,” she said. She has no problem staying at her job to grow that wealth.

But she’s also in a much more secure position, whenever her job does go away.

She’s Not Deprived Of Time

Often when people say they want to retire in their 30s or 40s they have dreams of traveling across the world, seeing new sights and meeting new people. That’s not the case for Lisa. “I’m so content with and entrenched in the adult family life,” she said.

She doesn’t demand much more travel than the summer vacation her family already goes on. Meanwhile, her husband, who works in the film industry, never wants to retire because he’s already found a job he would do even if he didn’t have to work.

“I feel like [we’re] not being deprived of time,” said Lisa.

And now that she has clarified her goals, it makes going into work much easier.

Follow me on LinkedIn. Check out my website.

I’ve written about personal finance for Fortune, MONEY, CNBC and many others. I also authored The Everything Guide to Investing in Cryptocurrencies.

Source: Here’s Why This 44-Year-Old’s Happiness Grew After She Abandoned Early Retirement

21.4M subscribers
‘Time poor’ is the catch-cry of our era, and yet end-of-life retirement means we have an average of two decades of feeling time rich to look forward to… when we’re old. In this talk, Lacey shares how combining financial independence and mini-retirements is one way to bring that time rich feeling into our youth.  Lacey Filipich started her entrepreneurial journey with a hair wrap stall at 10 years old. Today, she is the co-founder and director of two successful businesses; Money School and Maker Kids Club. Between hair wraps and start-ups, Lacey graduated as valedictorian from the The University of Queensland with an Honours degree in Chemical Engineering. She moved to Australia’s ‘wild west’ to begin her career in mining, rising quickly through the ranks. A health scare and her sister’s suicide opened Lacey’s eyes to the world beyond work, leading her to redesign her life and take five mini-retirements in the next five years. This was achievable because of Lacey’s financial position: she started investing at 19 and now earns a passive income. Lacey considers herself time rich: able to choose if, when, where, how, on what and with whom she works. Her story is one of many in the Financially Independent Retiring Early (FIRE) movement supporting the idea that end-of-life retirement is optional. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx
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