Building Wealth

For the first 30 or so years of working, saving and investing, you’ll be first in the mode of getting out of the hole (paying down debt), and then building your net worth (that’s wealth accumulation.). But don’t forget, wealth accumulation isn’t the ultimate goal. Decumulation is! (a separate category here at the Hub).

24 Expert tips on how Networking can grow your Career

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By Ellie Williams

Special to the Financial Independence Hub

Meeting people through networking has a huge impact on you in more ways than you think. By connecting with people in your field or with colleagues in vastly different industries at networking events, you can benefit from a multitude of tools and skills that will help further your career. As a professional, it’s essential that you take advantage of networking opportunities so you can maximize your career growth. Here are some ways that networking can help you advance your career.

Make Long Lasting Professional Relationships

“Networking is an important part of being an entrepreneur, but it’s not always easy. It can be awkward to be at a networking event where everyone is hovering above the hors d’oeuvres or clutching their cocktails. However, networking can help you create long-lasting professional relationships. Networking events are a great way to meet like-minded people with the same interests, passions and goals as you. These connections can become essential for your career growth and can help you climb the professional ladder. Sometimes these relationships can turn into real friendships!” – Rich Rudzinski, Founder and CEO of Tragic Media, Oversight.co, and Drivey.com

More Opportunities

“While networking is great for building verbal skills and branding yourself as a worker, it can also open the door to tons of opportunities that you would’ve never had access to before. The more people you connect with, the more opportunities you’ll be exposed to, such as an inside scoop about a job that hasn’t been posted about yet or someone who wants to mentor you. Knowing people at different professional levels is beneficial when it comes to different job opportunities, so it’s best to make sure you’re taking the time to build relationships with everyone. People will appreciate you going out of your way to talk to them so it’s always smart to push yourself and connect with new people – you never know what may come out of it!”  – Jim Williams, Outreach Manager for Ziebart

Build Interpersonal Skills

“While it can be a little daunting and even quite scary walking into a room when you don’t know anyone, it may prove to be the best thing you have done yet. Networking to grow your career is also a great way of building your interpersonal skills while getting to know someone. People want to work with those who are easily approachable and personable. By showing your true character and letting your personality shine, you can garner more interest from those alike. In doing so, it’ll become easier to build connections and network with others. It’ll also make you feel comfortable talking about yourself, your achievements and your career goals moving forward. This may also lead to potential business partnerships, especially if your goals align with those of other people you end up networking with. “ – Gregg Dean, Co-Founder and CEO of Layla Sleep

Help get your Face Noticed

“The best thing about networking is that you are able to get your face out there, so that you are easily noticed the next time you attend another networking event. Sometimes getting noticed in a room full of people is half the battle. Once you make your presence known, it could work to your favor by attracting more people to you and getting to know them better. In addition to this, you can learn how to build a rapport with those you are networking with as well as learn to listen attentively in order to ask more follow-up questions. So, don’t be afraid to put yourself out there.” – Kate Lipman, Sales & Marketing Consultant of embrace Scar Therapy

Find a Mentor

“Working with a mentor is life-changing because it helps you understand who you are and what you want to become. Networking can help you choose a mentor who will give you the best insight into your current phase of life or career level. Once they understand your skills and abilities, they may put you to work on a specific task to see how well you perform. The relationship between a mentor and a mentee must be built upon trust, honesty, and transparency. When you need someone that you can trust, having a mentor as an objective third party is a great resource. After you’ve experienced life with them, you may want to share your experiences with others too, which helps you become a better leader yourself and provides you with a new perspective on life.” – Megan Jones, Community Outreach Manager for NutraSweet Natural

Hidden Job Opportunities

“You’ll want to build aspiring relationships for potential opportunities, especially for a small business. Whether it’s through family, friends, an acquaintance, or small talk at the store, this is one of the best ways to stand out from others. If you have a genuine interest in getting to know someone’s career that you know of or recently met, ask them for coffee or if they have time for a quick chat to learn more about what they do. Even if there are no current job openings for the position, one might open later down the road and they might remember you over someone else.” – Chris Hunter, Co-Founder & CEO of Koia

Build up your Confidence

“Everyone knows how it feels to attend their first career fair, job interview, or any business event. The training you gain from networking events helps you boost your self-confidence and promote self-esteem. 

First, start with your physical appearance. Dress well, groom yourself, and learn to walk and talk like a confident person. Now, focus on your personality and how you conversate. Confidence grows with your success in life and these networking events are key to help you excel in your self-esteem. It is a trait that comes with experience. Over time, you will get better at everything you do. This happens to everybody, even the people who are confident. These business events and networking will eventually become a breeze and you will feel confident, comfortable and optimistic. Keep putting yourself out there and you will only continue to grow!” – Adrian Pereira, Founder and Ceo of ecopeaco.com

Find Additions to your Team

“You never know who you’ll come across; you may meet a great addition to the team you’re building or managing. Whether you’re building a real estate team or are a gym owner looking for personal trainers, it’s beneficial to network whenever you have the opportunity. Getting to know someone personally, shaking their hand, and listening to their stories/experiences can be more beneficial than traditional interviews. You’ll likely get to speak to them and get open and honest responses, whereas in an office interview, they may say what they think you want to hear.” -Kevin Mako, Founder of Mako Design + Invent

Boost Collaboration

“Developing new professional contacts is always a beneficial way to advance your career.  Aside from increasing your potential job opportunities, networking can also lead to new and innovative ideas.  For example, if you establish a professional relationship with someone from a completely different industry, they can help you think outside of your usual parameters. By expanding your network with a diverse group of individuals, you can learn different ways of viewing problems, creating solutions, and even generating creative ideas.  Thus, networking can help you become a  more well-rounded and valuable professional.” – Lev Berlin, Founder of Recipal

Gain Valuable Knowledge

“Listening is an art, and it’s a pivotal part of networking. Not only can you gain trust and create genuine connections by taking a break and listening to what people are saying, but you can also gain valuable business knowledge. A good listener does not impose their thoughts and opinions when someone else is speaking to them because they’re focused on what they can learn from the interaction. If you want to learn as much as you can about your specific industry – or business in general – you must be a good listener.”  – Hilary Kozak, VP of Marketing for LivSmooth

Amplify Clarity

“All connections that you create will have an impact in one way or another. Connecting and sharing with others allows you to gain a new perspective and gives you the opportunity to gain clarity about your career goals. To amplify your networking and career, it can be great to network with weaker connections, or acquaintances that lie outside of your immediate social group or circle. By stepping out of your comfort zone and expanding your reach, you can increase your social skills and build your knowledge base which will advance your career. Leverage networking to find clarity in your current situation and a roadmap for getting ahead.” – Bill Lyons, CEO of Griffin Funding

Stay up to date with Industry Trends

“A great way to grow your career with networking is by gaining valuable insight on trends! When networking with people in your field in-person or on social media platforms, you will become aware of new trends and the latest industry developments through sharing, during meetings, while having small talk with co-worker, while going through LinkedIn, and more. The digital world will be a huge ally in this aspect as most new industry news will be posted on social media. Therefore, networking puts you and your business at the front of the competition when it comes to new ideas and trends you can utilize in your social media and marketing campaigns. ” – Himanshu Agarwal, Senior VP of Solutions for WorkBoard

Create an Interpersonal Brand 

“Networking becomes a major part of creating a personal brand because as an individual all of your professional interactions play a part in your brand identity. Not all of us work at a small company where we all know each other, but oftentimes you’ll get put on a project where your reputation and personal brand will be discussed. Each time you interact with a client, or another professional outside of your job, you don’t know the potential these interactions have. It is from these weak networking ties that your confidence in yourself and personal branding will matter. Creating a personal brand for how you want to be perceived and what your values will give you a sense of self which will be evident while networking.  – David Ring, Senior Marketing Manager at MCT Trading

Reciprocal Assistance

“Reciprocity is a virtue, and this extends to professional networking as well. The more you help others, the more you prove yourself to be a trustworthy and reliable partner in times of need, which is an asset that everyone desires. As your professional network grows your positive reputation will reach farther in turn. This can become a great boon when you need assistance with or a fresh perspective on a new project that’s coming up. We tend to help others who have helped us, so by expanding your network as far as possible and being courteous and helpful along the way you bring on many more potential hands who can assist you. This is a powerful tool and can quickly turn a daunting task into child’s play due to the expertise from people willing to assist you.” – Adrien Dissous, Global SVP of Marketing at Babo Botanicals

Find New Clients 

“One of the best ways networking can help grow your career is by finding new business clients. Networking events are filled with opportunities that could prove fruitful for business-client relationships. Especially for small or personal businesses, great networking can establish long term relationships. Building strong business relationships relies on trust and credibility which can be established through communication and raport. Once you have made the connection, be sure to continually maintain the relationship. Not only does this help increase business for your company and personal business, but it can show upper management that you are commited to the overall success of the company which can contribute to the success of your career.”  – Jeffery Pitrak, Marketing and Account Manager at Transient Specialists

Continue Reading…

How Inflation-fighting ETFs have fared

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By Dale Roberts, cutthecrapinvesting

Special to the Financial Independence Hub

Last Summer, Rob Carrick at the Globe and Mail asked a few major ETF providers to offer up some inflation protection. In a recent post Rob delivered the inflation-fighting ETF scorecard. There are a couple of obvious winners and a few head-scratching ETFs offered up as inflation-fighters. Here’s the inflation-fighting scorecard, plus the Sunday Reads.

Here’s the post (paywall) on the Globe & Mail.

And let’s get straight to the goods. It is no suprise that oil and gas stocks led the way. That is the only sector that provides consistent inflation coverage. Also, base metals are doing their thing. Gold is solid. Vanguard offered up a balanced portfolio (insert WTF emoji face) as an inflation fighter. And they do that after ignoring their own research on inflation and assets.

Drum roll … and the results Continue Reading…

Identifying Opportunities through Infrastructure

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Image Franklin Templeton/iStock

By Shane Hurst

Managing Director, Portfolio Manager,

ClearBridge Investments, part of Franklin Templeton

(Sponsor Content)

Last month, I wrote in Financial Independence Hub about infrastructure as an asset class and the opportunities it can provide for both retail and institutional investors.

I would like to follow up on this by explaining the process we use at ClearBridge Investments, and specifically the approach we take with the Franklin ClearBridge Sustainable Global Infrastructure Income strategy.

Our Global Infrastructure Income team is based In Sydney, Australia and manages funds in the U.S., U.K, Australia, Europe and Canada. Having launched in 2010, the strategy has built assets under management of US$4 billion.1

With inflation at multi-decade highs, war in Ukraine, not to mention the ongoing pandemic, risk management is front of mind for many investors. Adding infrastructure to a balanced portfolio of global equities and fixed income is designed to increase returns while decreasing risk.

Expertise in Infrastructure

Years of experience in the infrastructure space has allowed the ClearBridge team to develop the expertise required to select companies that are best placed to prosper over the long run.

With backgrounds in M&A and unlisted infrastructure, debt and equity financing, buy and sell trading, as well as government and regulation, the team constructs a portfolio of 30–60 listed companies where excess return, yield quality and risk assessment drive position sizing. Given that this is a sustainable fund, ESG integration is another crucial element, as it is for the firm overall: ClearBridge Investments was an early signatory to the UN Principles for Responsible Investment back in 2008.

Companies positioned to Succeed

In building the portfolio, the investment team scans the globe for high-quality, listed companies that are positioned to meet the strategy’s income and growth goals. Nextera Energy is one such firm. The largest renewable energy producer in the U.S., Nextera is made up of the parent company Nextera Inc., which owns a regulated utilities company in Florida, as well as Nextera Energy Partners, a yield-oriented renewables vehicle.

The firm’s renewables deployment is expected to increase by more than 50% over the next three years, so it is well placed to benefit from the move towards net-zero carbon emissions across the global economy. Nextera’s strong market position also provides competitive advantages that are driving equity returns that are well above the cost of capital, while its long-term contracts are supporting attractive dividend yield and dividend growth. As a leader in renewable energy, it’s not surprising that the company scores highly in the ‘E’ part of ESG, but it also excels in social and governance metrics too, with strong employee safety standards and excellent management and succession planning. Continue Reading…

Greed, Fear and Amnesia: The importance of Cycles

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Image courtesy Outcome and positivemoney.org.

By Noah Solomon

Special to the Financial Independence Hub

Investment guru Howard Marks is the founder and co-chairman of Oaktree Capital Management, the world’s largest investor in distressed securities. Since launching Oaktree in 1995, his funds have produced long-term annualized returns of 19%. According to Warren Buffett, “When I see memos from Howard Marks in my mail, they’re the first thing I open and read. I always learn something.”

As indicated by the title of his book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, Marks believes that “the most important thing is being attentive to cycles.” In particular, he discusses the importance of knowing where we stand in various cycles. He contends that most great investors have an exceptional sense for how cycles work and where in the cycle markets stand at any given time. Lastly, Marks insists that investors who disregard cycles are bound to suffer serious consequences.

We live in a World of Relativism

There is a great saying about being chased by a bear, which states “You don’t have to run faster than the bear to get away. You just have to run faster than the guy next to you.”

In the context of investing, outperformance does not necessitate perfection. Success doesn’t come from always being right, but rather from being right more often than others (or from being wrong less often). Whether picking individual stocks or tilting your portfolio more aggressively or defensively, you don’t need to be right 100% of the time; you just need to be right more than others, which by definition leads to outperformance over the long-term. To this end, we have outlined some of our favorite concepts and themes which serve as guideposts for achieving this goal.

It’s all about Fear and Greed: Valuation just goes along for the Ride

The factors that drive bull and bear markets, bubbles and busts are too plentiful to enumerate. The simple fact is that more than any other factor, it is the ups and downs of human psychology that are responsible for changes in the investment environment. Most excesses on the upside and the inevitable reactions to the downside are caused by exaggerated swings in psychology.

Many investors fail to reach appropriate conclusions due to their tendencies to assess the world with emotion rather than objectivity. Sometimes they only pay attention to positive events while ignoring negative ones, and sometimes the opposite is true. It is also common for investors to switch from viewing the very same events in a positive light to a negative one within the span of only a few days (or vice-versa). Perhaps most importantly, their perceptions are rarely balanced.

One of the most time-honored market adages states that markets fluctuate between greed and fear. Marks adds an important nuance to this notion, asserting that “It didn’t take long for me to realize that often the market is driven by greed or fear. Either the fearful or greedy predominate, and they move the market dramatically.” He adds:

Investor psychology seems to spend much more time at the extremes than it does at a happy medium. In the real world, things generally fluctuate between pretty good and not so hot. But in the world of investing, perception often swings from flawless to hopeless. In good times, we hear most people say, “Risk? What risk? I don’t see much that could go wrong: look how well things have been going. And anyway, risk is my friend – the more risk I take, the more money I’m likely to make.” Then, in bad times, they switch to something simpler: “I don’t care if I never make another penny in the market; I just don’t want to lose any more. Get me out!” Buy before you miss out gets replaced by sell before it goes to zero.

Without a doubt, valuations matter. Historically, when valuations have stood at nosebleed levels, it has been only a matter of time before misery ensued. Conversely, when assets have declined to the point where valuations were compelling, strong returns soon followed. But it is important to distinguish cause from effect. Extreme valuations (either cheap or rich) that portend bull and bear markets are themselves the result of extremes in investor psychology. Importantly, human emotions are both fickle and impossible to precisely measure. Noted physicist and Nobel Prize winner Richard Feynman articulately encapsulated this fact, stating “Imagine how much harder physics would be if electrons had feelings!”

Amnesia: The Great Enabler of Market Cycles

Another contributor to irrational investment decisions, and by extension market cycles, is the seemingly inevitable tendency of investors to engage in Groundhog Day-like behavior, forgetting the lessons of the past and suffering the inevitable consequences as a result. According to famed economist John Kenneth Galbraith, “Extreme brevity of financial memory” keeps market participants from recognizing the recurring nature of cycles, and thus their inevitability. In his book, A Short History of Financial Euphoria, he states:

When the same or closely similar circumstances occur again, sometimes in only a few years, they are hailed by a new, often youthful, and always supremely self-confident generation as a brilliantly innovative discovery in the financial and larger economic world. There can be few fields of human endeavor in which history counts for so little as the world of finance. Past experience, to the extent that it is part of memory at all, is dismissed as the primitive refuge of those who do not have the insight to appreciate the incredible wonders of the present.

Average and Normal: Not the same thing

In many ways markets resemble the swinging pendulum of a clock, which on average lies at its midpoint yet spends very little time there. Rather, it spends the vast majority of the time at varying distances to either the right or left of center. In a similar vein, most people would be surprised by both the frequency and magnitude by which stocks can deviate from their average performance, as indicated by the table below.

S&P 500 Index: Deviation from Long-Term Average (1972-2021)

Over the past 50 years, the average annual return of the S&P 500 Index has been 12.6%. The Index fell within +/- 2% of this number in only three of these years, within +/- 5% in only nine, and within +/- 10% in 22 (still less than half the time). Lastly, the index posted a calendar year return of +/- 20% of its long-term average return in nine of the past 50 years (18% of the time).

Also, when a pendulum swings back from the far left or right, it never stops at the midpoint, but continues to the opposite extreme.  Similarly, markets rarely shift from being either overpriced or underpriced to fairly priced. Instead, they typically touch equilibrium only briefly before snowballing sentiment and resulting momentum cause a progression to the opposite extreme. Continue Reading…

Zoomer Magazine: my column on investing in Crypto

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Zoomer Magazine has just published a column by me on investing in cryptocurrencies. Contained in the June/July 2022 issue, the headline is The Crypto Conundrum.

There is an online version but it is not yet available: when it is, I will update with a clickable link. Alternatively, you can subscribe to the print edition and/or the digital edition, by clicking here.

As the adjacent artwork shows, “this notoriously volatile investment is not for the faint of heart” and I therefore “advise caution.”

As Murphy’s Law would have it, between the time the article was written and edited, crypto crashed, with Bitcoin plunging below US$30,000. In fact, this weekend was a brutal correction for crypto in general: see this Reuters report on Bitcoin touching an 18-month low of US$23,476 over the weekend.

The article does of course stress the volatility of this asset class and it goes without saying that if you’re a long-term believer in crypto — a so-called HODLer (for Hold On for Dear Life) — then you’re much better off investing in Bitcoin closer to $30,000 than the near $60,000 it reached late in 2021.

The article arose when a Zoomer editor was intrigued by a MoneySense column I wrote early in 2021 about my own personal experience with investing in Cryptos. You can find it by clicking on this highlighted headline: How to invest in Cryptocurrencies(without losing your shirt.

The gist of both articles is that I suggest investors restrict themselves initially to just Bitcoin and Ethereum, which I regard as the “Big 2” of crypto. I also suggest using ETFs in registered portfolios, and taking profits if and when they materialize: by selling half on any double, you can do what Mad Money’s Jim Cramer calls “playing with the house’s money.”

The other guideline I offer is to restrict total crypto investments to 1 or 2% of your total wealth: a range recommended by billionaires like Paul Tudor Jones or Stanley Druckenmiller. 

Start small and try to play with the house’s money as soon as you can

 If you find you lucked out and the 1% becomes 3% or the 2% becomes 5%, then sell about half so that you’re back to your original target.

The article notes that as reported here, as of January 2022, Fidelity has 2% in its balanced and 3% in its more aggressive asset allocation ETFs. FBAL has 59% stocks, 39% bonds, and 2% crypto while its growthier FGRO is 82% stocks, 15% bonds and 3% crypto. These seem to me prudent allocations for investors wanting a sliver of crypto. Continue Reading…