Business
Understanding Your Financial Net Worth
Published
7 years agoon
BY: FAZAAD BACCHUS
Your assets are referred to as things that you own. These things can be divided basically into two categories, financial assets, and non-financial assets. These two carry a very important distinction as they are directly related to your cash flow and liquidity which we will discuss in the next issue. For now, let’s discuss financial assets; these are mainly your cash and your cash equivalent accounts. Therefore, any savings account or any non-registered accounts will count for cash or cash equivalent. Not all financial assets can be quickly converted into cash without suffering a significant loss. Take for example an RRSP, taxes which have to be paid can take a significant chunk out of it. These would now be referred to as your investment assets. They typically include your TFSA, RRSP, RESP any bonds or stocks, annuities or life insurance cash values, especially on universal life policies.
Now to look at non-financial assets; typically your primary residence albeit your most valuable asset is not a financial asset. Any other real estate, cottage, vehicles, equity held in corporations and even land are categorized as non-financial assets. Personal assets such as jewellery, clothes, paintings, tools and the like are still non-financial. Some non-financial assets are meant to be investment assets as well. Take for example you have a rental property, it is non-financial but it is providing a cash flow.
What are your liabilities? Well, the first places to look at are where you have borrowed money from and whom you owe. Whenever you borrow you incur a debt and this debt needs to be repaid, examples are credit cards, instalment loans, mortgages, furniture loans, vacation loans etc, these are the most common type of liabilities. Some liabilities are tied to investments. For example, someone may borrow ten thousand dollars on a leveraged investment paying 3% interest to the bank while earning 5% at the investment company. Or they may have bought a rental property on a mortgage but are receiving a monthly income that is servicing the loan. So not all liabilities mean bad news, however, if you buy a depreciating asset and you owe more than it is valued, then that is bad news.
To calculate your net worth, simply take all of your assets, list them on one side of the page and take all of your liabilities and list them on the other side of the page and the formula is total assets minus total liabilities equals your net worth. Why is calculating your net worth important you ask, because you ideally should be increasing your net worth year after year. Certainly you would not like to see your bank account drop in value, and so shouldn’t your net worth. What if your net worth is negative? This is a serious position to be in as someone may be responsible for paying off your debts should you become sick, disabled or even die. Financial advisors help you calculate your net worth, analyze your cash flow and calculate your dependent’s income needs. If you haven’t done this exercise as yet, it might be very useful to you as a measure of protecting your family’s well-being and making sure that if something happens to you that you don’t leave your family with too much liability that they couldn’t handle.
Fazaad writes for the finance column at the Toronto Caribbean Newspaper. As a qualified Financial Advisor, he has completed his Masters in Business Administration, earned the designation of a Financial Services Specialist and Life Underwriter Training Council Fellow. Having worked in the Finance Industry for the last 27 years he is passionate about managing clients investment. He writes to bring a level of awareness to our community and to bring financial help to those who need it.
You may like
Technology
Understanding the Risk-Reward Dynamics of Investing in Casino Stocks
Published
3 weeks agoon
December 3, 2024
Casinos have always made for attractive investments, encouraging many with the capability to handle both competitive risks and opportunities of stock markets. Stocks in the gambling industry offer investors a way to profit from upscale casinos and resorts, along with one of these crypto casinos and online gaming sites. However, they also create unique challenges that, therefore, require investors to have a good understanding of the sector and stock market risk.
In this article, you will learn about the risks and potential benefits of casino shares that should help you decide whether they are the right fit for your investment portfolio and make some decisions accordingly in this fun yet edgy sector.
The Attraction of Casino Stock
The changes in the legal structure related to gambling have made investing more easily accessible through online platforms and mobile games. For those who are looking to diversify their investing portfolio and increase their returns can find casino stocks appealing.
-
High growth potential
The gambling industry globally has shown impressive growth potential and expansion. The worldwide gambling sector has seen a resurgence thanks to a rise in travel and tourism as pandemic measures have been relaxed. In addition, online betting platforms are drawing in a new, younger audience, increasing growth opportunities for casinos and creating new possibilities for investing in casino stocks.
-
Growing Acceptance of Gambling
Today, gambling is being accepted by many countries, making it legal, including betting and online gaming. The casino stock investment will expand more as the acceptance will increase widely. This legal expansion of this market will make it easier for investors to try new investment opportunities.
-
Technological Innovations
Technology has been reshaping all industries, including casinos. Brands are putting efforts into engaging with their prospecting customers through the use of augmented reality and AI in personalizing games, among others. These contribute to better revenue, making gambling stocks popular.
Understanding the Risks of Casino Stocks
Investing in casinos can lead to high rewards, but the stock market risk related to casino stocks should not be ignored. Below are the primary dangers that investors need to take into account:
1. Fluctuations in the Market
Casino shares are known to be very responsive to overall economic situations. During the time of economic decline or recessions, there is a general reduction in the money spent on entertainment stocks or gambling stocks. This can reduce the revenue generated by the casino firms, thus impacting the prices of shares. This fluctuation can pose a risk to investors.
2. Regulatory Risks
Heavy regulations are imposed on the gambling industry, and these regulations vary considerably between countries. For casino stocks, changes in regulations, for example, changes in tax policies, stricter laws on advertising, or changes in minimum age limits, can affect its profitability.
For example, nations that previously embraced casinos may opt to enforce limitations because of worries regarding problem gambling or other societal consequences. Therefore, individuals investing in casino stocks must carefully observe regulatory updates at local and global scales.
3. Intense Competition
As new players emerge day by day, this industry has become highly competitive. New start-ups joining the industry can impact the profitability of major players by attracting their customer base. Thus, investors must analyze the competitive position of each casino company in terms of sustainability and market share expansion.
4. High-Risk Investments
These stocks might look riskier as an investment option because they are volatile and rely on the spending patterns of consumers. However, having a good knowledge and risk tolerance capacity can make it easy to invest in these stocks. On the other side, this industry generates one of the highest investment returns for investors.
The Rewards of Investing in Casino Stocks
Despite the risks, there are significant rewards of investing in casinos. Understanding these benefits is essential for investors looking to balance their portfolios with high-return assets.
1. High Returns During Economic Growth
During economic reforms, the consumer spends more on casino stocks, which boosts casino revenue. The introduction of new players and advanced technological advancements are also driving the enthusiasm of investors. For investors willing to weather potential downturns, the casino stock performance during economic expansion can result in substantial growth.
2. Potential for Dividends
Certain established casino firms pay out dividends to investors, offering a consistent stream of earnings along with the possibility of increasing capital value. Investors who like consistent income but also want to benefit from stock growth find casino stocks attractive due to dividends.
3. The Resilience of the Gambling Industry
The gambling sector has shown strength despite economic hardships, in part because it maintains a loyal clientele. This ability to recover results in consistent performance over an extended period for certain casino stocks. Investors who purchase investments when they are cheap and hold onto them as the market bounces back may see significant profits.
4. The Appeal of Long-Term Investment
For people with long-term investment plans, casino stocks can be a profitable asset. Those who keep gambling stocks for a longer period can reach larger benefits due to changing trends like online gaming and wider acceptability.
Analyzing Casino Stock Investment Performance: Key Metrics
Before delving into investing in casino stocks, it is crucial to evaluate their performance using important financial metrics and market indicators. Here is a brief comparison of several important metrics and their significance:
Metric | Description | Why It Matters |
Earnings Per Share (EPS) | Reflects the profitability per share of a company. To calculate EPS, divide net income by outstanding shares. | Higher EPS indicates stronger profitability, making the stock potentially more attractive. |
Price-to-Earnings (P/E) Ratio | The company’s stock price is compared to per earning share. | A lower P/E suggests the stock is undervalued, while a high P/E may indicate growth potential and higher risk. |
Revenue Growth | Measures the increase in revenue over time, often shown as a percentage growth rate. | Consistent growth signals a healthy business and is essential in competitive sectors like casinos. |
Dividend Yield | Shows the annual dividend as a percentage of the stock price. | Indicates potential income from the investment, which can appeal to income-focused investors |
Debt-to-Equity Ratio | Assesses the company’s leverage by comparing total liabilities to shareholders’ equity. | A lower ratio indicates less reliance on debt, which can reduce risk, especially in case of market volatility. |
Free Cash Flow (FCF) | Cash is available after operating expenses and capital expenditures are paid. | Positive FCF suggests the company has flexibility for growth or to return capital to shareholders. |
Market Share | The company’s portion of the overall market within the industry | A strong market share can indicate stability and competitive advantage, which is important in a crowded market like casinos. |
By utilizing these measurements, investors can assess the possibilities of casino stocks and determine if the financial status of the company meets their investment objectives.
Investment Strategies for Casino Stocks
Creating a solid investment plan is crucial for navigating the risk-reward dynamic in casino stock investment. Below are a few tactics that have shown to be successful:
1. Long-Term Investment Approach
Because of the instability linked with the stock market for gambling companies, adopting long-term investment strategies can be advantageous. This approach enables investors to endure temporary price fluctuations and capitalize on long-term industry expansion. It also allows investors to benefit from the compounding effects of reinvested dividends.
2. Portfolio Diversification
Spreading out your investments by including both casino stocks and other industries in your portfolio can mitigate the consequences of one stock underperforming. Investors can achieve a better risk management strategy by balancing their casino investments with stable industries, all while still aiming for potential growth.
3. Risk Management Tactics
To manage risk, certain strategies like modifying asset allocation and continuously analyzing investment performance. Investors can avoid their losses by utilizing stop-loss orders in case a stock price falls below the set level.
Long-Term Growth Potential in Casino Stocks
Purchasing shares in casino companies provides a thrilling chance for individuals looking for substantial gains, yet it comes with substantial risks as well. A comprehensive investment knowledge of market conditions, regulatory shifts, and economic influences is essential to grasp the risk-reward dynamics in this industry.
By utilizing carefully studied, extended-term investment strategies, investors can take advantage of the gambling industry stock expansion while reducing the stock market risk. Investing in casino stocks can offer a distinctive combination of risk and opportunity for those looking to diversify their portfolio, as long as they grasp the potential consequences.
Business
Chibie Louis-Okoye – Unapologetically sharing the African experience
Published
5 months agoon
August 8, 2024By Sydnee Walcott
In an industry where there are not too many people of colour, one empowered woman is taking the correct steps toward standing out. Chibie Louis-Okoye is a thought-provoking Nigerian Canadian film producer who has received many accolades throughout her career.
Born and raised in Nigeria, Louis-Okoye’s upbringing had its good and bad moments, but she was happy for the most part and provided with everything she needed. Her parents encouraged her and her siblings to go to school and take on a professional path that would lead to a career with a stable income and go on to have a family.
“My parents worked very hard to take us to the best schools they could take us to,” said Louis-Okoye, whose parents wanted both her and her siblings to become something great in the future. Louis-Okoye studied at the University of Windsor as an international student, where she received a Degree in Communication. Afterward, she went to Queen’s University, where she studied innovation and entrepreneurship.
Her inspiration to be a film producer came from wanting to take back the power to create worlds and stories that can influence pop culture and people’s perspectives on how they see things on subjects they don’t know. With a gap in the content of African stories, Louis-Okoye realized the industry needs producers and storytellers to help close the gap. “Producing is all about honing the business side of the creative,” said Louis-Okoye, whose goal is to centre the African diaspora on the world stage through her company COLO Studios.
What Louis-Okoye enjoys the most about producing is the transformation of raw ideas into materialized content. Yes of course there are other elements of her work that she enjoys (hiring a team, and raising funds), but her heart remains with the creative process. She describes it as making a dream come true. “I believe a film is a tool for activism,” said Louis-Okoye. Activism, politics, spirituality, the monarchy, and the impact of colonialism are some of the thought-provoking content people can find in films and television series produced by Louis-Okoye.
Her latest film, KOFA, is inspired by how the world has moved on after kidnappings in Nigeria and surrounding areas. The film also focuses on how it remains precarious in Nigeria. KOFA (Louis-Okoye’s favourite project to date) is a psychological thriller that deals with people being locked in a room and waking up nude with no memories.
From the beginning, the plot beckons the watcher to question every character, understand motive, and question what will happen next. With elements of betrayal and finger pointing the film keeps viewers intrigued as they watch the group try to figure out how they ended up where they were. Throughout their drama, a male character continuously enters the room and takes them out one by one. Scared for their lives, the group tries to piece together their memories.
Louis-Okoye loves those topics, because she feels the viewers can put themselves in the character’s shoes and feel their emotions and what’s at stake for them. She describes this as a human condition, because sometimes people may feel trapped. It may not feel like a physical trap in a room, but it can be a physical trap in a career they don’t love and are only doing for economic purposes. “People can feel trapped mentally as well.” Louis-Okoye shared.
KOFA won the Best Feature Film at the African International Film Festival, and received two African Magic Viewer Choice Awards nominations. The film’s trailer also received an award for the best trailer in the African region at the 2023 World Trailer Awards in Portugal.
Louis-Okoye’s current project is a television series called The Third Coming, and she’s having the time of her life on the project. The series centres around what can happen if colonialism and imperialism were to come back to Africa in the present and how that would look.
Louis-Okoye would like to see her career take her back to Africa, where she can continue to tell stories relatable to Africans and have the world look at things through that lens. She also wants to collaborate with others to help tell those stories and provide a technical process for creating a film and television series. She also wants to collaborate with the greats in Hollywood and take some of their lessons and experiences. Her dream is to have COLO Studios maintain its vision of centring the African experiences on the world stage.
As Africans living in the diaspora, we have a strong, and notable impact on this planet, and creatives like Louis-Okoye are the ones who will stamp our impact in the minds of people for generations to come.
By Simone J Smith
“There is the old way, and the new way. You have two choices: get into it, or get left behind.”
Well now!
The stage has been set for this edition’s Woman Empowered. Over the years, the Toronto Caribbean Newspaper has been sharing the stories of African-Caribbean Women; their struggles and their triumphs, and as we move into the future, it is time to evolve into a way of life that at one point, was only thought of as a movie script…
The digital age, also known as the information age or the computer age, is a period in human history characterized by the widespread use and integration of digital technologies into everyday life.
What exactly are we talking about here? Well, this includes the use of: computers, smartphones, the internet, and other digital technologies to communicate, access information, conduct business, and more. The digital age has brought about significant changes in the way we live, work, and interact with each other, and has had a profound impact on several aspects of society: education, healthcare, and entertainment are the three that come to mind.
Here is where I bring in the importance of Bridgette Daley to the Caribbean Diaspora. She has tapped into the importance of over standing the digital age, and what it is going to bring.
In her own words, Bridgette Daley is a “Socially Savvy Mission Driven Marketer!” She creates proven digital marketing and online advertising strategies for: small businesses, non-profit organizations and B corps. With her ever-evolving experience with A.I., Bridgette demonstrates to her clients how to effectively use AI and Automation in order to: connect with their most engaged fans, efficiently monetize their brands and own their audience data.
As Chief Visionary Officer at b.Digital Consulting, Bridgette Daley has taken the time to deep dive into the digital unknown, and for good reason. Her experiences have shown her that if we as a people do not get “In the KNow,” the consequences could be displacing…
“I was born and raised in Kingston, Jamaica, and lived there until I was 15 years old. I am an Excelsior Graduate through and through; I attended both elementary and high school at Excelsior. I started high school when I was only 10 years old, finished high school at 16 years old, and followed it up with one year of college. This was a standard for all of us. In my family, the focus was always on education. “
This focus on education was nurtured in two ways: her dad taught her work ethic, and her mom demonstrated tenacity. Bridgette shared that her mom was heavy on education because she wasn’t able to go to school. This remained with Bridgette, and she continued to excel.
Then, Hurricane Gilbert hit.
“We lost everything, and what was most powerful about the experience was that we built it back together, as a community. It was about love, laughter and family. It was a big turning point in my life.”
It was time to leave… Bridgette left Jamaica in 1992 for Canada, Mississauga.
I was in Canada for a year living with my sister. My parents had separated, and my mom had left for America. My brothers left with her. They left before I finished high school, and this is why my sister brought me up. She gave me a way to transition until I had an opportunity to join my mom and brothers in America.
I was never exposed to other cultures, and when I came to Canada, non-Black people would comment on my features a lot. I lived on a majority minority street, so I didn’t really feel the impact of racism in Canada.
In America is when I was exposed to true racism. We were kicked out of a mall once because we were speaking patois, and the security guard thought we were swearing.”
At this point, Bridgette was around 17, 18 years old. She had always had a career ambition, and for her, it was the right time to pursue this ambition.
“I didn’t really know the system, and I wanted to go to school, but that takes money, so I had to get a job.
I got a job as a part-time teller. To me this was a BIG deal, because bankers are prestigious in Jamaica. I researched the bank’s benefits, and I found out if I went to school and got a C, they would pay for school. I couldn’t believe how low the standard was so I did that. I went on to complete my degree in Business Management and Communication.
The bank policy was if I got a degree, they would promote you. Interestingly enough, any position I applied for, I didn’t get it. I was told I walk around with a chip on my shoulder. I walked around with my head held high, and I don’t think they like that. I was not going to dim my light to make anyone feel comfortable.”
And so began Bridgette’s experience in the financial industry.
“I worked in retail for a while, but life was not happening in New York, so I moved to Florida. My goal was to become a Bank Manager. I had 1.94 in my bank account when I got my job at the Bank of America. They put me in the ghetto-banking centre, and we took that banking centre team to the top 5% of the banking industry. We called ourselves the Southwind Superstars.
During the credit crisis of 2008, I discovered that the banks were making the most money from minorities. However, we were the 2nd least deposit base, but generated the most fees.”
She started off as Banking Manager at the Bank of America, and moved on to becoming the VP; Sr. Business Continuity Specialist.
From there, she moved on to being SVP Regional Sales Leader/ Sr Branch Leader/Business Development at Bank United. She then became Director of Business Development for the Southeast Region (NC, SC, GA, FL, AL, MS, LA, TX) at the National Energy Improvement Fund LLC
“They took away my power to help my people, and this is one of the reasons why I had to leave Bank of America. I eventually went into another area of banking as a regional sales manager. After a couple years the same thing happened. I was making White men richer. My soul wasn’t being nourished.
In 2017, I wanted to see how money was being made online. I realized I wanted to understand the in’s and out’s. It was like opening Pandora’s box.
One piece of wisdom I would like to pass on is that it is not about knowing everything, but about being around people who know different things. This is how I met my business partner.”
Every time she heard no, she kept pushing. Now, Bridgette works with the government of Jamaica.
“I want the Caribbean community to truly understand that there is so much money to be made in the tech industry,” Bridgette tells me. “I figure, it is up to us to know better, so let me learn and share.
We as Black women need to take up space. We need to own our power. Surround yourself with the right people, and stop letting perfection be the enemy of the good. Step out, and go toe to toe with everyone else.
Faith it till you make it!”
Urban Alliance on Race Relations celebrates and highlights Racial Justice Award recipients
West Indies memorable triumph over England: A valuable learning experience
How are current trends shaping our world? Foreshadowing 2025
AI can be a helpful tool, but it can’t replace the special qualities that make human storytelling unique
What is it about those short videos that keep us captivated? Oh! Yes! Our short attention span
Anger!
YOGA: Surya Namaskar (Sun Salutation) for sufferers of hypertension or heart disease
Kemtek Development launches new exclusive gated community in Jamaica!
Tourism-Related Live Streaming – The Manifold Ways it Can Create a Buzz for a Destination
Ravi’s West Indian Grocery – Fresh Products Weekly Straight from Guyana!
Send groceries to Jamaica in a flash, how? GroceryList Jamaica
ASA Meats & West Indian Groceries – Serving Freshness & Quality to the Community
Nadine Sutherland – A woman who continues to reinvent herself
Knia Singh – Light Up The Darkness
Spragga Benz – Light Up The Darkness
Kyle Kemper – Light Up The Darkness
David Icke – Light Up The Darkness
Ohio’s Bill 248 and Dr. Sherri Tenpenny’s compelling testimony
Trending
-
Community News5 days ago
Can AI truly grasp the nuances of culture, history, and the unique spirit of a country?
-
Community News5 days ago
Digital Double-Edged – We cannot allow a fragile digital system to control when and how you can travel
-
Community News5 days ago
To navigate complex challenges: Caribbean governments, corporations, and organizations need innovative solutions
-
Community News2 weeks ago
Mister International Canada crowns its 2024 Winner
-
Community News2 weeks ago
The Future of work is here, and it’s a four-day week
-
Community News5 days ago
Patrick Parson remembered for his: Legacy, impact and influence in the artistic community in Toronto
-
Community News5 days ago
Lights Out! United Boxing Promotions shocks fans with unstoppable knockouts!
-
Community News5 days ago
Ownership Matters with ACBN, “Just Like Family” Providing essential home care services for seniors