It is our desire and intent to educate clients about how capital markets work and to provide them with the information necessary for their financial well-being.
The advice to follow an evidence-based approach to investing is significantly different from most of the advice heard on Wall Street and in the financial media. It also is different from the strategy followed by the typical individual investor. Therefore, we believe it is extremely important to be aware of the academic research demonstrating that markets are generally highly efficient.
A large number of studies (below) have shown that it is highly unlikely investors will be able to exploit market inefficiencies after accounting for the expenses of the effort. It is essential to know how a well-diversified portfolio can help manage risk, a message that often bears repeating as asset classes come in and out of favor over time. The same sentiment applies to understanding how attempts to time the market — either in terms of individual securities or asset classes — typically lead to realizing lower returns than those available from a buy, hold and rebalance strategy.
Because our investment approach is different from the average investment advisor, it is crucial for you to understand why we recommend it. Put simply, knowledge is the key to discipline. For example, in the late 1990s, when the growth asset class outperformed the value asset class, it became tempting to pour everything into that single asset class. Those who do not possess a basic understanding of evidence-based investing are more likely to quickly become dissatisfied when their portfolio underperforms the latest hot asset class.
Seth Allen, Dean of Admissions and Financial Aid, Pomona College, Claremont, Calif.
College essays carry far more weight than they have in previous decades. With a record number of students applying for college, admissions offices have become highly selective when considering student applications. While each school has its own criteria, schools typically look for students who demonstrate a high level of creativity and innovation. They want students who can express themselves and present interesting viewpoints on issues. Schools also seek out students who have the potential to take on leadership roles in some shape or form. One place they look for these differentiators is in the college essay.
These practical tips can help students stand out when writing college essays:
It's OK to talk about yourself — The college essay is your opportunity to share great achievements and describe your talents and skills. Talk about things for which you are passionate and knowledgeable.
See the glass as half full, not half empty — The college essay portion of an application is not "one more thing to fill out." It's a chance to define your interests and goals while sharing some insights into who you are. Admissions counselors cannot meet every applicant, so they look forward to reading college essays to learn more about how a student thinks about an experience or an issue. In lieu of having one-on-one conversations with every student, the college essay is one way for an admissions office to determine whether the student would be a good fit.
Consider the questions before you start writing your answers — It's important to think through: 1) what you plan to write about and 2) what you want readers to know about you from what you have written. Schools look closely at these answers for clues to discover what that student is all about.
Be yourself — One of the most important takeaways is to represent yourself truthfully. If you do not enjoy community service, then you shouldn't feel obliged to talk about how you help others. Instead of trying to guess what you think would impress the admissions office, be yourself and tell your personal story with pride.
It's the little things — What you write about doesn't have to be the province of Nobel laureates or astronauts. Instead, it can be something ordinary, or it can be about a treasured experience that speaks volumes about you, your values, your interests or your talents.
There is no right answer to the question of what makes a college essay stand out. Like a thumbprint or DNA, each essay is unique, so stretch your self-actualization muscles and have fun with this part of the application.
Note: More than 3 million applications were submitted to colleges and universities in 2012 and 2013 through The Common Application . Through The Common Application, students can save a personal profile and submit an application to any of the hundreds of participating schools across the United States.
About Seth Allen
Seth Allen is vice president and dean of admissions and financial aid at Pomona College in Claremont, Calif. Allen has been quoted extensively by members of the national media, including NBC's Today show, CNN, The New York Times and The Wall Street Journal. Allen has served on a number of national admissions committees, and he is a former president of the board of directors of The Common Application. Prior to Pomona College, Allen held leadership positions at Grinnell College in Grinnell, Iowa; Dickinson College in Carlisle, Pa.; and Johns Hopkins University in Baltimore. Allen earned both his undergraduate and graduate degrees from Johns Hopkins University.
Copyright © 2014, The BAM ALLIANCE. This material and any opinions contained are derived from sources believed to be reliable, but its accuracy and the opinions based thereon are not guaranteed. The content of this publication is for general information only and is not intended to serve as specific financial, accounting or tax advice. To be distributed only by a Registered Investment Advisor firm. Information regarding references to third-party sites: Referenced third-party sites are not under our control, and we are not responsible for the contents of any linked site or any link contained in a linked site, or any changes or updates to such sites. Any link provided to you is only as a convenience, and the inclusion of any link does not imply our endorsement of the site.
When you were a child, did you ever play the board game Life? In the very beginning of the game, each player has a decision to make: Do they enroll in college, or head off into the work world? Heading into the work world meant making money right away, however, college meant student loans and debt. As a child, what was your choice? Did you stay away from college because it seemed alarming to go into debt, so early on in the game?
Even as children, we learn the importance of money, however, it is also necessary to learn the significance of managing money. Debt is not an awful implementation if it is controlled, which is something that college students need to understand. College is an investment, a life investment. However, for some families, college is no longer an automatic decision because like a child sees losing the game of Life as a difficulty, an adult sees going into debt as a risk.
Your parent didn’t take off your training wheels until they were satisfied that you were confident in yourself. They knew you understood that you may fall down a few times, but if you could accept that, so could they. Your parents may seem like they are constantly on your back about college, when really they just want to have confidence in you. To gain their trust and an optimistic outlook, it is important to communicate with your parents. If you are determined to go to college, tell them. Tell them you understand that you will be in debt and that you may fall off your bike a few times along the way, but that is life (the real life, not the board game).
Riding a bike is a team effort in the beginning. Your parent has to hold onto your bike until you are ready. Make the college-selection process a team effort. Ask your parents to research the financing of college costs and loans while you research items like the student population, meal plans, dorm life, etc. Make a list of your dream schools. Even if one or two may seem impossible, put them down anyway, it is never bad to have goals. Consult with your parents once you have all completed your research. The more you work as a team, the more willing they will be to let go as you ride for the first time without training wheels.
It is also important to match your major or career goal to your college search and the cost of the degree. Look at the payback that a job in your career field can provide, especially being able to repay student loans.
Parents also need to be encouraging and supportive. Even if your child’s dream seems financially out of the picture, don’t completely shut it down. Instead work around the obstacle, and see if together you are able to find a happy medium. Complete the FASFA form, regardless of your family’s financial situation, this is the first step for schools in determining financial aid. Other financial areas to explore include work-study, scholarships, grants and the schools financial aid package (to determine if the loans are federal or private as an alternative).
Today, the average college graduate has $29,400 in student loans, according to the Project on Student Debt at The Institute for College Access & Success. Assuming private loans with an interest rate of 8 percent paying back in 10 years (most students would be 32 years old), the monthly payment on this debt would be $356.70, or $42,804 total repayment.
It is important for prospective students to realize that the obligation of repaying this debt limits their financial independence. Financial independence is the ability to make financial decisions within personal constraints. For a graduate with monthly loan payments of $357, this may mean purchasing a less expensive car, renting a place to live longer than intended, or reducing the ability for travel and/or entertainment.
You took a chance riding a bike without training wheels and trusting your parents when they let go. When you played the game of Life you were already aware that going to college put you at a financial setback, but had the potential to get you a high paying job. The decision to go to college means understanding the setbacks and having self-confidence. Believe in yourself and prepare as best as you can.
About the Authors
Brian Zdrowak, CPA, CFP® is an investment advisor for Dopkins Wealth Management, LLC, an independent member of the BAM ALLIANCE.
Brian joined Dopkins in 2005. He provides financial solutions to individuals, trusts, small business owners and employee benefit plans. Prior to joining Dopkins, Brian worked for 17 years with a Fortune 500 national marketer and distributor of food service products.
Brian and his wife Debbie have three children. On the weekends, Brian and Debbie enjoy renovating their 1870
Brian holds a master’s degree from
Jessie Zdrowak is a full-time student at SUNY Cortland and an ROTC cadet.
Copyright © 2014, The BAM