Deva Panambur, CFA®, CFP® is the founder of Sarsi, LLC. Sarsi, LLC is an independent, fee only, Registered Investment Advisor, serving individuals and institutions. We primarily provide the following services: 1.Financial Planning: Overall financial situation of the client including cash flow, debt management, risk management/insurance, estate planning and tax planning. 2. Investment strategy 3. Asset allocation and risk management 4. Manager/Investment product selection 5. Investment monitoring and reporting.
Prior to founding Sarsi, LLC in 2010, Deva was a Senior Vice President/Partner at Executive Monetary Management (EMM), a wealth advisor with over $2Bn in assets that was a part of Neuberger Berman, before being spun off into an independent firm in 2009. At EMM, Deva led manager selection and due diligence and had joint responsibility for economic analysis, strategy analysis, portfolio management and risk management pertaining to investments of ultra high net worth clients and institutions.
Prior to joining EMM, he was a portfolio manager at the alternative strategies group of Merrill Lynch; a research analyst at Chesapeake Capital Corporation- a hedge fund; and a risk and business analyst at Deutsche Bank Asset Management where he supported various investment groups. He began his career at International Seaports Pte. Ltd. in international project finance in the Far East and the United States.
Deva earned a Bachelor of Technology from the Indian Institute of Technology, India, a Master in International Management from the Indian Institute of Foreign Trade, India, and an MBA from Thunderbird School of Global Management, Glendale, AZ. He has been awarded the Chartered Financial Analyst designation and is a CFP® professional.
He regularly provides expert advisory services to top consulting firms and asset management companies regarding the business and investment aspects of the investment industry. He is an Adjunct Professor of Personal Finance at Montclair State University in New Jersey and in his spare time trains candidates appearing for the CFA exam.
MBA, Finance, Thunderbird (Arizona State University)
BTech, Metallurgy, Indian Institute of Technology
Fee only. Asset based and/or fixed.
Sarsi LLC (“Sarsi”) is a Registered Investment Advisory Firm regulated by the State of New Jersey in accordance and compliance with applicable securities laws and regulations. Sarsi does not render or offer to render personalized investment advice through this newsletter. The information provided herein is for informational purposes only and does not constitute financial, investment or legal advice. Investment advice can only be rendered after delivery of the Firm’s disclosure statement (Form ADV Part II) and execution of an investment advisory agreement between the client and Sarsi.
Sarsi, LLC Introduction
This is a good question. In my opinion, it is difficult to time the market and impossible to do it in a consistent manner. The advantage of an automatic investment strategy such as the one you have in place is that you are making periodic investments irrespective of what is happening in the market and you are dollar cost averaging over time. With this strategy, the disadvantage of buying when the market is up is to some extent balanced by the advantage of buying when the market is down.
So, why not buy when the market is down and not buy when the market is up? The problem with this strategy is that nobody knows if a particular up day will be followed by a down or up day and if a down day will be followed by a up or down day. What we do know is that over time markets exhibit significant momentum (ie up days follow up days and down days follow down days) AND markets are up more often than they are down. So, if you wait for a down day and have a threshold of how much down it must be before you invest, then you will be missing out many up days and once you get in after a down day, on average your down day is likely to be followed by more down days. We have run the numbers on this- please send me an e-mail and I can share the analysis with you.
Of course, I am assuming that you are only considering market movement and are not considering any other fundamental or macro-economic factors when making your decisions.
This is a good question- and the answer seems to surprise many credit card holders. The minimum payment on a credit card balance is usually one of the following: a fixed amount, your balance (if you owe a very small amount) or a percentage of your outstanding balance. Credit card companies require you to at least make the minimum payment due or they will fine you and your credit score could also take a hit. After making the minimum payment, your balance will continue accruing interest (Credit card interest rates are relatively high and are compounded daily) so if you are able to pay off more than the minimum amount due, you should- you will pay off the credit card debt faster, your interest expense will be lower and it could also improve your credit score (Credit scores are impacted adversely if you use a large percentage of your credit limit, paying down debt to a lower percentage of your credit limit improves your credit score)
Yes, you can roll it over to an IRA or if you find another job you can roll it over to your new company's retirement plan if it allows it. You can also keep it in your current 403B (ie you don't have to roll over) If you decide to roll it over to an IRA- a trustee to trustee rollover is the best option- it is seamless, and will not result in a tax consequence.
Dividends are a significant part of stock returns. According to a study by a large investment firm, 42% of the returns of the S&P 500 between 1930 and 2012 were because of dividends. Another way to look at the contributions of dividends is to compare S&P 500 price return versus total return (ie price plus dividends). Over the last thirty years, S&P 500 total returns have been almost double the price return. This should not be surprising, since usually high quality companies pay dividends and consistently increase them irrespective of what is happening to the stock price. So while price returns can be negative during a specified period of time, dividend returns are almost always positive (and theoretically cannot be negative).
However, on the other hand, I know some investors who invest in stocks simply because they pay dividends. That can be a mistake if the stock is too expensive and the stock price drops so much that it erases the dividend returns (Could erase years worth of dividend returns).
The bottom line; If you are investing for the long term, can select appropriate dividend paying stocks or are investing in a diversified ETF, are not chasing returns and/or investing just because of the dividend yield, you should do alright. In this case, dividends is an added bonus.
I am assuming you have a 403B or something similar. If so, yes as long as your plan allows it. (Plans can but are not required to offer loans to participants).
Here is the IRS link to the terms of the loans https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-loans