Content about Financial economics

CHICAGO — If you’re one of the millions of Americans who own stocks and bonds, it’s a good bet that you maintain those investments in a brokerage account. Keeping physical possession of stock or bond certificates in this digital age makes about as much sense as stuffing cash under the mattress.

But opening a brokerage account was only your first decision. These days, you must also decide whether to go with a so-called full-service broker or a discount broker, and it’s important to understand the difference.

Discount brokers such as TD Ameritrade, E*TRADE, Charles Schwab and others typically charge between $2 and $20 for individual online trades; full-service brokers such as Merrill Lynch, Morgan Stanley and others charge as much as 10 to 15 times that much. While competition has caused many full-service brokers to reduce commissions lately, on average, you'll still pay $100-$150 for an average trade done through the typical full-service (translation: full-price) broker. And it doesn’t stop there.

CHICAGO — When it comes to investing your money, there’s more than enough pessimism to go around, and nowhere is it easier to find than in today’s municipal bond market. Many state and local municipalities are facing the toughest budget problems they have ever seen. California, Illinois and New Jersey are among the states wrestling with money woes. Major cities such as Philadelphia, Atlanta, and Columbus, Ohio, are on a long list of municipalities looking at major tax increases and/or cutting of services and personnel as a last resort for rising above an enveloping debt crisis.

Marilyn Cohen, president and CEO of Envision Capital Management, describes the current bond market as “the biggest slow-motion train wreck I've ever seen.”

CHICAGO — This is a difficult time for anyone trying to build a portfolio of savings and investments capable of providing a financially secure retirement. According to the Center for Retirement Research, more than half of the Baby Boomer generation will not be financially prepared for retirement even if they work until age 65.

With corporate pension plans now largely just a memory, it’s up to individuals to design their own financial plans for retirement, and that calls for making some tough decisions.

I can’t remember a time when the economy has seemed more uncertain and fluid. Are interest rates for savings set to rise after a long period of stagnation, or will they continue to remain mired abysmally low? Is it time to start investing in the stock market again, or is it better to wait? How about real estate? Is this a good time to buy or sell a house? These and other questions about our economic future are never easy to answer, but they seem especially problematic in mid-2011.

Many plant owners are starting to plan for retirement, or at least winding down on responsibilities. Because this brings up a host of challenges, it’s never too soon to start the process.

Part 1 of this story discussed initial considerations for making the transition, along with all-cash sales and buyouts. Another type of transition is the earnout.

THE EARNOUT

BERKLEY, Mich. — Inc. magazine has named the Certified Restoration Drycleaning Network (CRDN) to its list of the 5,000 fastest-growing private companies in the U.S. for the third year in a row.

CRDN specializes in restoring garments and other fabric items damaged by smoke, fire, water, mold or other contaminants. The company reported growth of 72.1%, which it claims is the result of the ongoing education of the insurance industry about the cost-effectiveness of restoring damaged textiles rather than replacing them.

RONKONKOMA, N.Y. — Irving Weber Associates (IWA) announced it will pay its 58th consecutive dividend to active participants of the IWA/Great Central Fabricare Industry Workers’ Compensation Safety Group.

When it comes to investing money, human nature likes to play tricks on us. When the stock market is reaching new highs, we can’t wait to jump in. When it stumbles and falls, we stop investing — or worse, start selling.

As a result, the typical investor tends to buy “high” and sell “low” — the opposite of a profitable investment strategy. But in spite of the lessons of the past, that inner voice keeps urging us to follow the crowd.

SAN FRANCISCO — It’s a seller’s market for drycleaning stores, although there are indications of trouble on the horizon, according to BizBuySell, an online business-for-sale marketplace.

BizBuySell recently completed its Insight Report, an economic indicator that tracks the health of the U.S. small-business economy, for the third quarter. Each quarter, the company analyzes the sales and listing prices of small businesses across the United States based on more than 50,000 businesses for sale and those recently sold.

BERKLEY, Mich. — Inc. magazine has named the Certified Restoration Drycleaning Network (CRDN) one of the fastest-growing private companies in the United States for the second year in a row.