28 July 2018 FT — Articles to Read

28 July 2018


Question: According to CNBC what are the 5 things to do if you hit the $512m Mega Millions jackpot?


Twitter figures rattle Wall Street – Pg. 1

          The social networks have been dented by concerns over the limits of their users’ attention and the fallout from cleaning up their acts after scandals

          Twitter’s stock dropped 19%, a day after Facebook’s shares shed 19% in the biggest one-day loss of value in US stock market history (Prof Note: I have never sent nor received a “Tweet” nor do I have a FaceBook page.  However, Cat Ghaut has one and we have five friends! J)


Statistics review shows Americans saving more than thought – Pg. 4

          The data show the average savings rate at 7% between 2013 and 2017, up from the previous figure of 5%

          The bureau also revised down GDP growth for 2017 from 2.3 to 2.2%, with much of the reduction falling in the second half of the year

          The personal savings rate in the US has been on a long decline since the 1970s, a trend that began to reverse after the financial crisis.  The figure is calculated by comparing the difference between disposable incomes and personal expenditures


BoJ steps in for second time this week after benchmark bond yield hits 18-month high – Pg. 13

          Japan’s central bank has made its second intervention in a week to support the domestic bond market after the yield on 10-year government debt hit its highest in 18 months

          The BoJ yesterday launched a special bond-buying operation to suppress yield, which moves inversely to price, back below 0.1%

          In a rare move, the BoJ offered to buy unlimited amounts of the 10-year notes at a yield of 0.1%, 1 bp lower than its operation on Monday at 0.11%.  The yield on the 10-year note closed a basis point higher at 0.09%

          Japan’s central bank faces pressure to rein in its ultra-loose monetary policy, which has failed to boost inflation to tis targeted level, while weighing heavily on bank profits

          The yield curve control policy was introduced in late 2016 in part as a measure to offset some of the pain of the negative interest rate policy that it introduced earlier that year


Answer: (1) Chill (Prof Note: I have some clients with whom that I work that go through a business and/or entity sale.  My first piece of advice is to take things slowly and calmly.  Find the team and hire them.  Also, depending upon the size of the sale, consider two teams for opposing advice…..yes, I do this with attorneys all the time); (2) Protect your ticket; (3) Keep quiet (Prof Note: When the world believes you have money, it is like having a giant target on your back.  Remain anonymous.); (4) Weight the payment options (Prof Note: Lump sum or payment over time.  Review options with tax accounting AND financial advisor.  You may not want to be a creditor if the entity paying you does not work out); (5) Take a deep breath (Prof Note: I generally advise one (1) toy!  Right now I am working with a person and the toy is a watch!)