Latest news with #financialstrategies
Zawya
7 days ago
- Business
- Zawya
New Bank Leadership, Capital Strategies Drive African Mining Investment Push
Several African multilateral banks and financial institutions have undergone significant leadership transitions this year aimed at aligning financial strategies with the continent's evolving development and industrialization goals. In June, the African Export–Import Bank (Afreximbank) appointed Dr. George Elombi as President and Chairman of the Board of Directors, succeeding Professor Benedict Oramah after nearly a decade of leadership. Under Dr. Elombi, the bank aims to scale into a $250 billion institution and serve as a key enabler of investment in Africa's mining sector. The African Development Bank (AfDB) also elected new leadership in May, appointing Sidi Ould Tah to replace Akinwumi Adesina. The Bank is now expanding its capital base – reaching $318 billion – while pursuing a $25 billion replenishment round and broadening its bond issuance strategy to support infrastructure and industrialization. Leadership changes have also extended to commercial banks. Standard Bank appointed Sim Tshabalala as interim CEO in April, while Absa Group named Kenny Fihla as CEO in March. African Mining Week serves as a premier platform for exploring the full spectrum of mining opportunities across Africa. The event is held alongside the African Energy Week: Invest in African Energies 2025 conference from October 1-3 in Cape Town. Sponsors, exhibitors and delegates can learn more by contacting sales@ At this year's African Mining Week (AMW), a featured panel on The Investor Perspective – Financing Africa's Mineral Industrialization will explore how these and other institutions are adapting financial strategies to meet the continent's infrastructure and beneficiation needs. Recent deals underscore the sector's momentum. In June, Afreximbank signed a $3.8 billion agreement with Gabon to fund manganese and gold trading, energy development and rail infrastructure. It also extended a $25 million facility to Lilium Gold for operations at the Boungou and Wahgnion gold mines in Burkina Faso. Meanwhile, AfDB approved $325 million in financing for Mauritania's state-owned SNIM to upgrade logistics and equipment for its iron-ore corridor. In South Africa, Standard Bank provided $300 million to Northam Platinum for a 140 MW wind power plant, ensuring long-term energy security for mining operations. It is also co-financing a $38.5 million deal with Lotus Resources for the Kayelekera Uranium Project in Malawi. Absa Bank is backing Angola's Longonjo Rare Earth Project – operated by Pensana – with an $80 million facility. The project is expected to supply up to 5% of the world's magnet rare earth elements critical to electric vehicle manufacturing. AMW 2025 will bring together African financial institutions, mining stakeholders and international partners to forge new investment alliances and accelerate mining sector growth. Held alongside African Energy Week: Invest in African Energies 2025, AMW is the premier platform for engaging with the full spectrum of Africa's mining opportunities. Distributed by APO Group on behalf of Energy Capital&Power.
Yahoo
17-07-2025
- Business
- Yahoo
Maridea Expands Midwest Presence With Strategic Acquisition of Pinnacle Wealth Management
BROOKLYN, N.Y., July 17, 2025--(BUSINESS WIRE)--Maridea Wealth Management ("Maridea") is pleased to announce its acquisition of Pinnacle Wealth Management ("Pinnacle"), a client-focused and high-growth advisory firm founded in 1994 and headquartered in Chicago, IL. Led by veteran advisor Brian Sheehy, Pinnacle has built a strong reputation for delivering personalized financial strategies and forward-thinking wealth solutions to high-net-worth individuals and families. Previously affiliated with LPL Financial, Pinnacle will transition to Maridea's independent RIA platform. This strategic move strengthens Maridea's presence in the Midwest and expands its portfolio of services for clients and advisors alike. "Brian's philosophy of transparent client guidance and customized wealth solutions aligns perfectly with our values at Maridea," said Mier Wang, Founder and Chief Executive Officer of Maridea. "The Pinnacle team's deep commitment to client success and strong reputation in the Midwest make them an ideal partner as we continue building a premier wealth management platform." With nearly three decades of experience serving clients, Brian Sheehy will join Maridea as a Senior Investment Advisor, helping to lead and expand the firm's growing Chicago office. "Leaving LPL was not a decision I took lightly, but the opportunity to join Maridea felt like the right next step," said Sheehy. "I'm thrilled to help grow Maridea's presence in Chicago and to be part of a firm that combines the strength of a national platform with the agility of an entrepreneurial culture. The collaborative spirit, depth of resources, and caliber of the executive leadership — including an impressive institutional board — give me full confidence that we're in the ideal environment to grow and serve our clients at the highest level." Green Sail Capital Partners acted as the exclusive sell-side advisor to Pinnacle. "We're proud to have advised Brian on a transaction that will enhance Pinnacle's client experience and provide the Pinnacle team resources to capture untapped growth opportunities as Maridea's first platform in the Chicago market," said Ryan Kaminski, Co-Founder of Green Sail Capital Partners. About Maridea Wealth Management Incorporated in 2023, Maridea Wealth Management is an SEC-registered investment advisor that provides comprehensive wealth management services to high-net-worth individuals and families. Maridea has professionals across the country, from New York to California, and employs a team of +30 advisors and professionals to be ring industry-leading services to its clients. To learn more please visit View source version on Contacts Mier
Forbes
09-07-2025
- Business
- Forbes
How To Diversify Financially As A Small Business Owner
Statistics show 80% of business owners have the majority of their wealth tied up in their business. ... More Here are 3 financial diversification strategies for the small business owner. Diversification poses a real challenge for the small business owner. The reality is, the average entrepreneur has far too much of their wealth tied up in the business, which poses a great risk financially. Although total diversification is likely improbable and unrealistic for an active entrepreneur, there are ways to reduce your concentration. Here are three financial diversification strategies for the small business owner. Top 2 Reasons Why Business Owners Need To Diversify According to the 2023 National State of Owner Readiness Report by the Exit Planning Institute: To further illustrate the importance of diversifying, just consider how the valuation might change for a small business manufacturing facemasks in early 2019 versus one or two years later. On the other hand, imagine what the DOGE cuts might mean for a consulting company whose sole client is the federal government. It is so important to focus on what you can control, as uncontrollable factors can happen at any time and work for or against you. Like real estate, a business is an illiquid asset. Having a high savings rate, a plan in place, and outside liquidity can greatly reduce risk. 3 Practical Strategies On How to Diversify As A Business Owner Until (or unless) you sell your business, full diversification is unlikely. But some diversification is achievable, and for the majority of business owners, it's a worthwhile endeavor. It is important to note that not all businesses, or entrepreneurs, are alike. Some small businesses, particularly services businesses built around the skills or reputation of the primary owner may not be salable. In those cases, it is less about managing risk until a major sudden wealth event when the business is sold. Instead, the focus is more towards utilizing profits and managing expenses to maximize liquid assets along the way. Diversify Around Your Business As a business owner, you already have a concentrated stock position in your own company. Since this asset is 100% equity, entrepreneurs planning to exit their business at some point may want to consider adjusting the rest of their portfolio around their major holding. Consider tailoring the allocation of your investment accounts depending on the relative value of the business versus your other assets, your risk tolerance, etc. In some situations, it may make sense to overweight or exclusively hold less risky investments (e.g. bonds versus stocks) in brokerage or retirement accounts. United States Treasury securities are considered the safest investments. The bond market is deep, so investors may also want to consider diversifying their fixed income portfolio, for example using investment grade corporate bonds or municipal bonds. Another way for small business owners to diversify around their business is by tailoring their equity portfolio to overweight sectors or regions that are uncorrelated with the nature of the business or exclude firms in the same sector. Cash Management Diversification is all about reducing risk. With cash, the biggest risk is typically the loss of purchasing power over time, as interest rates may not keep pace with inflation. For small business owners, having liquidity to get through a rough patch is an essential part of staying in business. Business owners need to keep more cash than W-2 employees. Figuring out what that number is can be quite challenging as the issue is twofold: the company's cash needs and your own personal reserves, which are separate. Business cash As entrepreneurs know, managing cash flow using only a profit and loss statement will lead to trouble. As with many things in life, timing is everything. Keeping a spreadsheet or model to forecast income and expenses, updated with actuals, can help tremendously. Don't forget to include distributions not directly related to business expenses, such as withdrawals to pay personal quarterly tax payments or K-1 distributions, particularly if you have partners. Every business will need a different cash buffer beyond working capital, depending on volatility of income and costs, fixed expenses, seasonality, margins, and so forth. Short-term cash reserves should be held in a interest-bearing checking or money market account. For ongoing rainy day funds or matching significant longer-term liabilities, consider other options such as the fixed income securities mentioned above or even just a high-yielding money market fund. Personal cash As with everything in personal finance, exactly how much cash you need is personal. Consider factors like your assets, current liquidity, household income, etc. Having enough liquidity can help business owners diversify financially and reduce the risk that short-term hurdles become real problems. As a general rule-of-thumb, consider keeping at least one year of necessary personal expenses in cash. One-income households or businesses that don't have adequate cash reserves yet may require the business owner to stash more cash. Diversify By Adding To Your Outside Assets Whether or not you expect a large windfall from selling your business, one of the best ways for small business owners to diversify financially is by having a high savings rate and ongoing dedication to investing outside of the company. Remember, a lot can happen before a successful exit. There are several ways to add to your outside assets and diversify as a business owner: The business will grow at a different rate than your personal assets. If you expect to sell at a big multiple, it is likely that your outside assets won't ever eclipse the value of the business pre-sale. But through ongoing diversification efforts, business owners can improve their liquidity and build their contingency retirement plan, just in case. Work On - And In - The Business Most entrepreneurs are so consumed keeping up with the day-to-day that they lack the time for strategic planning. This includes defining their business goals, current value of the firm, ways to diversify the company's revenue streams, and other key performance indicators (KPIs). Busy operators should consider working with business consultants that can help advise on growth, operations, and exit strategies, as well as help with ongoing accountability to ensure plans are implemented. The word is spreading. The Exit Planning Institute's study reports that 62% of respondents in 2023 completed a formal pretransition value enhancement or due diligence project in the last two years. Megan Kearney, Partner at Exit Factor in Lexington, MA, regularly helps coach and support business owners in these areas. She notes that "without strategic preparation, a business is statistically unlikely to sell successfully." Most businesses lack a dedicated business advisor, leaving a sizable advisory gap in a typical professional team which includes legal and accounting/tax on the corporate side and a wealth advisor, estate planner, and tax advisor on the personal side. Although there's often 'creep' from the personal side to the business, the personal advisors are not going deep or wide into the firm's operations, profitability, workflows, and so forth. Building a team with a shared mission can make all the difference. Kearney notes, "Diversification is critical, building value beyond the day-to-day operations can not only expand exit options but also safeguard owners' future wealth." Other Considerations Aside from diversifying, there are a number of other planning items that entrepreneurs must consider as it relates to their company and personal situation, though a complete discussion of these issues is outside the scope of this article. It is easy to push these items to the bottom of the to-do list. But the reality is, exit is top of mind for most business owners. The 2023 survey reported 49% of respondents want to exit within the next five years and 75% with in 10 years. Entrepreneurs seeking to transition within five years may want to consider attending this upcoming webinar on exit planning. Final Word On Financial Diversification For Small Business Owners The focus of this article has been on how to diversify financially as a small business owner while running the company. But it is worth repeating the statistic on how many entrepreneurs plan to sell their business, and how few are able to. The best way to combat this risk is to start planning your exit, transition, or succession plan early. Get a valuation done, understand the market and what metrics can improve the sale price, and meet with business brokers. This will help inform your perspective on what risks you face and what approach to diversifying makes the most sense for you and your business.
Yahoo
03-07-2025
- Business
- Yahoo
From 401(k) Loans to Side Hustles: The Extreme Measures Parents Take to Avoid Student Debt
As the cost of college in the U.S. continues to surge, many parents are resorting to drastic financial strategies—including pausing retirement contributions, liquidating investments, and taking second jobs—to spare their children from taking on student debt. In a survey commissioned by Citizens Bank and conducted by Researchscape, 61% of parents said they need to go beyond traditional college financing options, such as 529 savings plans and federal loans, to bridge the financial gap. Of the 1,000 respondents surveyed, 19% reported taking on a second job, 30% had borrowed against their 401(k) or withdrawn personal funds, and 26% paused investing altogether. Some said they cut back on vacations or major purchases. Meanwhile, 62% of parents said they expect to delay their retirement to help cover their children's college education costs. Don't Miss: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Maximize saving for your retirement and cut down on taxes: The Education Data Initiative reports that the average annual tuition at a public four-year college has risen 40 times since 1963. Between 2010 and 2023, tuition at four-year public universities jumped over 36%. Another EDI report estimates the average annual cost of college—including tuition, room and board, fees, and supplies—at about $38,000. "Compared to just a few years ago, the pressure has increased due to rising tuition, inflation, and greater uncertainty around future costs," Tony Durkan, vice president and head of 529 college savings at Fidelity, told Fortune. "Many families are still underprepared, often relying on rough estimates rather than clear savings goals." Pam Krueger, investment advisor and founder of Wealthramp, told Fortune that she's seen a growing number of parents refinancing homes, pulling money from retirement, or juggling extra jobs to manage college expenses. "It's coming from a place of love and a desire to protect their kids from the burden of student debt—but it's also very risky," Krueger said. "These choices can set parents back in a way that's really hard to recover from." Trending: Tired of Grid Failures and Charging Deserts? This Startup Has a Solar Fix and $25M+ in Sales — Krueger added that many families make college decisions based on acceptance letters—not finances. Citizens Bank's survey results support this, showing that 20% of parents focused solely on getting their child into college without thinking about how to pay for it. The topic also remains sensitive: nearly half of the parents surveyed said they'd rather talk to their child about drugs or alcohol than college costs. Durkan told Fortune that starting early with a 529 plan can provide significant long-term benefits. These tax-advantaged accounts allow for tuition savings and can be reassigned to other family members if unused. "The earlier you begin saving, the more time your money has to grow through compounding," Durkan said. "Even small, regular contributions can add up significantly over time." Krueger recommends open conversations with children—particularly in high school—about what's realistic, including considering schools with strong merit aid programs and transparent pricing. "Sometimes the 'big name' school isn't the best financial fit—and that's okay," Krueger told Planning Experts CEO Brian Safdari told Fortune that late-starting families should focus on applying for aid, reallocating investments, and estimating true out-of-pocket costs. "Even private colleges with sticker prices over $95,000 per year may offer enough aid to cost less than a public school," Safdari said. But he also emphasized that gaps will likely remain. "The expected cost minus savings minus free money will likely still leave a gap," Safdari said. "Once we have that number, we can start figuring out how to fund it over four years, while minimizing student debt and leaving enough money to retire." Read Next: Many are using retirement income calculators to check if they're on pace — Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report This article From 401(k) Loans to Side Hustles: The Extreme Measures Parents Take to Avoid Student Debt originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Globe and Mail
02-07-2025
- Business
- Globe and Mail
Do covered call strategies shine in ‘flat markets'? The answer may surprise you
As a child, I sat too close to the TV, cracked my knuckles, and swallowed more than a few pieces of gum. If all of the legends I heard in childhood were true, I would now be a visually-impaired, middle-aged man with arthritis and tummy full of undigested gum. I cannot escape aging, but thankfully, those other things proved to be myths. Life is full of myths and misconceptions – and the investing world is no exception. Covered call writing strategies are the subject of some of the most persistent investor misunderstandings. Promoters of covered calls writing strategies argue that the strategy excels in flat or range-bound markets. The argument goes something like this: While selling call options gives away upside, the strategy's premium cash flow should fuel outperformance in 'flat' markets or periods when stock prices just plod along in a narrow range. This claim is best split into two parts – the nature of flat markets and performance during these periods. Definition and nature of 'flat markets' When people speak of flat markets, they are referring to a meaningful time period – e.g., at least a few years – where stock markets end close to where they began. Such periods have historically been marked by steep declines followed by sharp recoveries. In other words, so-called flat markets are almost always very volatile. Using more than a century of U.S. stock market monthly total returns, I isolated flat market periods – which I defined as total returns ranging from -1% and +1% per year over five- or ten- year periods. The tables below summarize annualized total returns and volatility for the flat market periods identified. While flat markets can boast lower-than-usual volatility, seven of the nine time periods in the above tables experienced above-median volatility. The chart below breaks down one such period, which is one of the least volatile. U.S. stock returns clocked in at just 0.5% per year for the decade ending on September 30, 1974. This period sported increasingly strong bull market runs, each followed by punishing declines – ending the period barely above the level from ten years earlier on a total return basis. From the table above, this flat market featured volatility close to the historical median for past overlapping 120-month periods. Virtually every other period in the above tables was more volatile than this. There is nothing flat about 'flat markets' – but rather a series of wild up and down swings in market value. Performance in flat markets and over time To address the question of performance, I examined the performance of two US-based exchange traded funds (ETFs). The Invesco S&P 500 BuyWrite ETF (PBP), launched in December 2007, buys the stocks in the S&P 500 Index and sells options on about ninety percent of its holdings. Its seventeen-year history includes one flat market period. I selected the SPDR S&P 500 ETF Trust (SPY) as its benchmark because it holds the same index stocks but without the covered call writing (or any other option strategy). The table below summarizes selected performance statistics for these two ETFs. Invesco's covered call ETF (PBP) has underperformed State Street's SPY (a simple S&P 500 Index ETF) by a mile over more than seventeen years – by nearly six percentage points per year. During the period closest to the flat market identified in the first set of tables above, Invesco's covered call ETF slightly lagged SPY's pure stock exposure. It was not all bad for PBP (the covered call ETF). From its inception through March 9, 2009, SPY's pure stock exposure resulted in a 52% decline. The cash flow from PBP's option selling meaningfully cushioned the loss, resulting in a 39% fall. I noted the downside protection in my May 2023 article on covered call strategies. But I also highlighted in that article that investors give up a lot of upside. From March 9, 2009, through October 2012, PBP significantly lagged its simpler counterpart SPY. The upside that covered calls gave up was much larger than the downside cushion on the way down. The result: slight underperformance in what is supposed to be an ideal market environment for PBP and other similar funds. The table below summarizes these decline and recovery statistics. Since five- and ten- year periods are not the only meaningful time frames, I also looked at SPY's total returns over one- to four- year periods using daily data to spot a greater number of flat markets. I found a dozen or so different time periods during which SPY was flat. PBP's covered call strategy underperformed two-thirds of the time – with an average underperformance of more than 1% per year across all periods measured. Calculations by author using monthly total returns for U.S. stocks from a variety of sources (Dr. Robert Schiller, CRSP, Corp, Morningstar, iShares) for Feb-1871 through Dec-2024. Total Returns and Volatility shown in the table are average annualized figures. Medians are calculated on 'rolling' (i.e., overlapping) five- and ten- year periods included in the measurement period. Volatility is measured by calculating an annualized standard deviation for the stated time periods. Standard Deviation measures how far each monthly return deviates from its average over the specified period. Dan Hallett is vice-president, Research and Principal, for Highview Financial Group
