Financial Pathway Advisors, LLC
James Kinney is the founder and owner of Financial Pathway Advisors of Bridgewater New Jersey. Financial Pathways also has offices in Flanders and Cranbury New Jersey.
Jim is a Certified Financial Planner and a NAPFA registered fee only financial advisor. Fee only advisors are committed to maintaining a compensation model that eliminates the potential conflicts of interest which may result when parties other than the client are paying for advice. Fee only advisors are not permitted to accept commissions, referral payments, or any other form of compensation from investment firms, insurance companies, or other professionals.
Jim is a strong believer in the power of financial planning, when done with the clients’ best interests in mind, to improve lives, reduce stress, and achieve goals. Both Jim and Luba have analytical backgrounds (both have spent time working in IT, as well as business and finance), which are demonstrated in the care and attention they pay to even the smallest detail in their clients’ financial plans.
In addition to retirement planning and investing, Jim has specialized training in planning for college, while his partner, Luba, is a Certified Divorce Financial Planning Specialist.
Jim believes that investment risk management should be at the core of every financial plan. Again, his analytical approach is on display as the firm carefully creates, for each client, portfolios that are optimally diversified to balance investment risk vs. the need for positive returns. There are no cookie cutter investment solutions at Financial Pathways. Each client’s investment recommendations are unique and based on his or her carefully considered financial plan.
Jim lives in Hillsborough New Jersey with his wife Laura. They have four adult and college age children. Jim earned his bachelors degree in Business Administration from Drexel University in 1984, his MBA from Fairleigh Dickinson University in 1990. Prior to beginning his current career, Jim had been a successful entrepreneur, founding and growing a successful international manufacturing and data management company from 1990 to 2003. He started his financial planning career in 2004, founded Financial Pathways in 2007, and earned his CFP® certification in 2008. Luba Globerman joined his practice in 2009. Jim is a member of the Financial Planning Association (FPA) as well as the National Association of Personal Financial Advisors (NAPFA). He has been an active adult leader in the Boy Scouts of America for 18 years, and enjoys camping, hiking, fishing, running and the outdoors.
BS, Business Administration, Drexel University
MBA, Fairleigh Dickenson University
Financial Pathway Advisors is a Registered Investment Advisor in the State of New Jersey. Advisory services are offered only to residents of the State of New Jersey, except as permitted by applicable state and federal securities regulations.
As others have pointed out, you are barking up the wrong tree if you are looking for protection in a crash.
But don't rush out and buy VIX ETF's instead. Similar to USO for investing in oil, VXX is setup to lose money over time EVEN IF THE UNDERLYING VIX STAYS STEADY. Reason is coplplex, but has to do with time decay on the underlying options, which need to be continually replaced by the fund. These are SHORT TERM TRADING INSTRUMENTS - not long term hedges. If you don't know what you are doing, stay away. There are better ways to diversify a portfolio.
I had a client who thought investing in VXX was a slam dunk when it was at historic lows, and lost $80,000 in a few months. Expensive lesson.
Surprising that there were some who answered "No" - this is incorrect. She CAN use cash income from babysitting as long as she files a tax return and reports the income. There is no requirement for a child to report this level of income, but you may choose to do so just for the purpose of demonstrating income for funding the Roth.
Save your money, unless you plan on working in the field. That being said, coursework in business finance may help you better grasp the larger picture of how stock markets relate to the economy and business world at large. As for books, I strongly suggest you include "A Random Walk Down Wall Street" by Burton Malkeil and "Value Investing" by Benjamin Graham. These are two classic must reads with different perspectives. Graham’s book is a bit dated, but still a worthwhile read, as he was Warren Buffet’s mentor. I am more of a Malkeil guy myself.
You are describing a business with huge costs and very little in sales. But I don't have much of the story. What is the product, what market does it serve, what is its competitive advantage? There has to be more to the story than you are telling me right now if you are going to invest. Where did the $30 million go, what was it used for? Growth of 30% per month is interesting - but what is the market size, and what is the potential market share? As companies get bigger, it becomes harder for many to grow. How fast will expenses scale up with revenue? What are margins? There are many many factors that go into valuing a business. With a startup like this, it is all about POTENTIAL - which is often very subjective. Be wary - is management watching the pennies, are they focused on making the firm profitable? Or are investor dollars just going to pay big salaries? Startups are hugely risky, so putting your life savings into a new firm is a bad idea. But if the business model is sound and management team is strong, maybe you can make some money. Just be cautious.
To me, the difference is largely one of time frame.
Lets offer an example. We have 2 ten year olds with $100.
Amy uses the $100 to buy lemons, sugar, an old table, and some poster board and sets up a lemonade stand on a busy road. Business is brisk, and she reinvests her profits by buying more supplies. By the end of the summer she has turned $100 into $500. Some days (rainy, cool days) business was slow, some days (the hot sunny ones) it was brisk. She was never discouraged. She did not throw up her hands on the first rainy day and say "no one is ever going to buy lemonade again - I'm going to sell my stand". She is an investor.
Johnny on the other hand goes and spends his entire $100 buying lemons, which he hopes to sell to Amy next week at a higher price. He heard the price of lemons will go up because the forecast is calling for record heat and lemonade is popular in the hot weather. Lo and behold, the forecast is wrong, the price of lemons drops, and Johnny is wiped out. Johnny is a speculator.
Speculators are forever trying to be smarter than the market. Investors simply participate in the markets. Speculating is akin to gambling. Investing is like going to work.