Ulivi Wealth Management

By Professor Rick Ulivi, Ph.D.
professor@ulivi.com
Website: www.ulivi.com
How much income can you afford to take out each year from your investments? This is a tough question for retiree’s because withdrawing too quickly leads to overspending and desperation, but not withdrawing enough at the appropriate time will not allow a retiree to enjoy all his/her savings thru retirement.
The right balance requires taking into account many variables, including a portfolio’s size, its expected rate of return, its volatility, inflation, longevity, income needs, and the withdrawal rate.  Researchers estimate that, if you have a portfolio invested with a mix of stocks and bonds, you should be able to withdraw annually about 5%.  This withdrawal rate should allow your income to keep up with inflation. (more…)

Will the value of the dollar drop versus other currencies?  I believe so.  Why?  Let me review the theory behind a currency in order to clarify the reasons why I believe the dollar is likely to drop.  Later I will suggest ways for you to protect yourself against this probable devaluation.
There are three characteristics of money.  It must act as a unit of account, a medium of exchange and as a store of value.  Today, the dollar meets the first two criteria but it is lacking the third characteristic.  It is not a good store of value for the following three reasons: (more…)

When you neighbor loses his job, you consider it a recession.  When you loose your job, you consider it a depression.  When both of you loose your jobs . . . ?  How bad can things get now?  I will present the case for the doom and gloom and for the optimistic outcomes.

Some justifications for the gloom and doom scenario:
Some people were hoping for a V shaped recession.  That is, a sharp drop in economic activity followed by a quick and strong rebound.  Some are saying we can expect a U shaped recession, which is a strong drop in the economy followed by a relatively short recession but then a strong recovery.  Now some people are saying it will be an L recession.  That is, a sharp fall and no recovery!   (more…)

How are you doing financially?
Do you ever wonder whether you are on track to reach your goals?  Or how you are doing financially compared to others?  The best way to answer these questions is to do a thorough analysis of your finances and compare them to pre-established benchmarks or ratios.  This will allow you to identify those areas where you are succeeding and those needing improvement.  Based on this analysis, you can set new and specific goals to improve your finances.  As you know, goal setting is a critical first step in improving anything in life, including finances, so this could be a valuable tool for you. (more…)

If Congress does not approve the $700 billion bailout, will there be an old fashion run on the banks?  Yes.  Could you lose some of your deposits?  Yes.

How serious is the financial crisis?  It is extremely serious.  Let me explain the situation by using a simple example to illustrate the nature of the crisis and its potentially incredible consequences.

Suppose we start a new bank; we’ll call it Ulivi’s Bank.  I and a group of investors chip in $10 as the capital to fund the bank.  Federal regulations allow us to receive deposits equal to 10 times our capital, so let’s assume that we attract $100 in deposits.  Our balance sheet would look like this:  Assets $110; liabilities (the deposits) of $100 and capital or net worth of $10.  Everything is fine and everybody is happy . . . (more…)