Quantum Financial Advisors
Senior Managing Director
Mr. Joseph Rinaldi is a registered investment advisor, the Senior Managing Director and President of Quantum Financial Advisors.
Mr. Rinaldi graduated from Hofstra University with a BBA and earned his MBA from Pace University. Mr. Rinaldi has worked in capital markets for nearly three decades for companies such as Dimes Savings Bank, Morgan Stanley, Maryland National Bank (now Bank of America) and The Resolution Trust Corporation. His career has encompassed asset securitization, risk management, and trading. During the S&L debacle he traded over $40 Billion worth of assets from banks he took over for the government. Afterwards, he started his own SEC investment advisory firm that has a successful 19 year track record.
In addition, he teaches "Futures, Options, and Derivatives" at the Robert H. Smith School of Business at the University of Maryland and the Stern School of Business at New York University to both graduate and undergraduate students. He also co-authored, "A Beginning Guide to Alternative Assets" with Dr. Howard Lodge.
BS, Finance, Hofstra Universty
MBA, Finance and Information Systems, Pace University
Assets Under Management:
Yes, but it depends on liquidity. If an investment is not liquid and you can not sell it when you need the money, you may require a lot more than 10% return.
The great part of 401(k) loans are that you can access your pension money that you worked hard for, but do not pay a penalty for early withdrawal or taxes. The added benefit is that the interest you pay to use your own money (typically 4 to 5%) is earnings to your 401(k) plan :)
There are so many different kinds of student loans. I would encourage you to first look at a Home Equity line of credit. The interest is tax deductible up to $100,000 loan. The interest rate can range from 2.50% to 4% depending on your bank relationship. Choice two, is look at a PAL Pledged Asset Line and borrow off your investments. The interest rate is comparable but can also be tax deductible versus your interest income.
After you review these two choices, then look at your standard student loan that has an interest rate less than 4%. Variable rate are ok but caveat emptor---- your interest rate can go up to the low double digit area so read the fine print.
I like baskets of companies because of acts of Gods. ie you can do all the research you want but you can't predict a political event, natural disaster or in some cases fraud. The two investments I like are USO, an ETF, that represents a basket of investments in oil or oil futures and a better "less risky" investment AMLP, which is an ETF that invests into an index of oil and gas pipelines. This ETF is one that I own for clients that pays approximately a 9% dividend, is a basket of 23 companies. These companies have been hurt due to low oil prices, but they act as a toll booth on a highway that always makes money as oil & gas passes its pipeline. In addition, this asset class has 20% upside when oil prices normalize between 60 and 80 per barrel.
Debt coverage ratio of less than 35% is healthy. Debt coverage ration is the total amount of interest payments divided by your total income in a month. Conversely, a debt coverage ration of more than 50% is dangerous. Something between 35 and 50 can be fixed :)