Verdict lists ten of the most popular tweets on wealth management in Q3 2020 based on data from GlobalData’s Influencer Platform.
The top tweets were chosen from influencers as tracked by GlobalData’s Influencer Platform, which is based on a scientific process that works on pre-defined parameters. Influencers are selected after a deep analysis of the influencer’s relevance, network strength, engagement, and leading discussions on new and emerging trends.
Top tweets on wealth management in Q3
1. Vishal Khandelwal’s tweet on guide for wealthier life
Vishal Khandelwal, founder of Safal Niveshak, an online website focused on helping investors, shared an article on his pocket guide on personal finance. The pocket guide consists of important points for wealthier life including saving at least 10%-30% of total income, health insurance and term insurance for dependents, and saving emergency funds from eight to12 months expenses.
The guide also details how to maximise tax savings such as EPF, and investing 70% in equity. Investing in SIPs for longer period, and building a compounding mindset were some of the other ways to manage personal finance, according to the guide.
It's here! Personal Finance for Smart People: A Pocket Guide for Wealthier Lifehttps://t.co/qVHvvKOzmA
— safalniveshak.com (@safalniveshak) August 8, 2020
Username: Vishal Khandelwal
Twitter handle: @safalniveshak
2. Nick Maggiulli’s tweet on wealth discipline ratio
Nick Maggiulli, chief operating officer at Ritholtz Wealth Management, an investment advisory firm, shared an article on how to determine an individual’s financial competency. The influencer noted that wealth discipline ratio (WDR), which includes both savings and investments is the best number in personal finance to measure financial skills.
The article further detailed that the ratio is calculated by dividing the net worth by total lifetime income minus basic lifetime spending. Maggiulli suggested that WDR is the most important number, as it provides an insight into what a person is doing with his money and what can be done to reach his financial goal. He noted that there is no ideal WDR ratio.
What is the most important number in personal finance?
How about all of the above?
My latest on the Wealth Discipline Ratio™ and why it is the most important number in personal finance:https://t.co/N9c1vxBn7x
— Nick Maggiulli (@dollarsanddata) August 4, 2020
Username: Nick Maggiulli
Twitter handle: @dollarsanddata
3. Ramit Sethi’s tweet on investment plans
Ramit Sethi, an author, tweeted on how people do not need to make high-risk investments, instead they should focus on the basics. He suggested that people can start investing in mutual funds such as target-date fund and move onto investing more.
He noted that people can also chose an automatic savings plan and save more. People need to have a conscious spending plan in place first and then spend more on what they want, he added stating that alternative investment plans are not the way to go.
Very hard for people to accept they probably don't need high-risk investments. Get the basics right, then repeat
Target-date fund, then invest more
Automatic savings, then save more
Conscious spending plan, then spend more on what you love
Not some stupid alternative investment
— Ramit Sethi (@ramit) September 4, 2020
Username: Ramit Sethi
Twitter handle: @ramit
4. Ben Carlson’s tweet on year to date total returns on bonds and stocks
Ben Carlson, director of institutional asset management at Ritholtz Wealth Management (RWM), an investment advisory firm, tweeted on the performance of bonds and stocks. The influencer detailed a list of bonds and stocks based on their year to date returns performance.
Long bonds and tech stocks stood first in the list with 25% followed by gold, Aggregate bonds and US stocks with 22%, 7% and 2% respectively. International stocks and small cap funds recorded negative returns of 5% and 11% respectively.
Long bonds (TLT) +25%
Tech Stocks (QQQ) +25%
Gold (GLD) +22%
Agg bonds (AGG) +7%
US Stocks (SPY) +2%
Intl Stocks (VXUS) -5%
Small Caps (IWM) -11% pic.twitter.com/uOcSdMV2H0
— Ben Carlson (@awealthofcs) July 22, 2020
Username: Ben Carlson
Twitter handle: @awealthofcs
5. Latha Venkatesh’s tweet on SEBI’s new rules for multi-cap funds
Latha Venkatesh, banking editor at CNBC-TV 18, an online platform focused on business and financial news, tweeted on a circular issued by the Securities and Exchange Board of India (SEBI) on material change in the portfolio structure of multi-cap funds by February 2021.
Latha noted that the SEBI ordered multi-cap funds to invest at least 25% of their portfolio in each large-cap, mid-cap and small-cap stocks. She observed that 70%-85% of multi-cap funds invest in large-cap stocks, which led to expectations that investments in small and mid-cap stocks will increase.
The SEBI later clarified that mutual funds can either purchase small cap stocks to rebalance funds or merge with large cap funds, which may result in fall in small cap stocks. She added that small mutual fund holders may not be aware of these changes.
All that happened to Equity Mutual Funds this weekend :
First SEBI said all multicap funds must invest min 25% of their funds each in large, midcap & smallcaps. Currently most multicap funds have 70-85% of funds in large caps. So many expected small & midcaps to rise Monday /1
— Latha Venkatesh (@latha_venkatesh) September 13, 2020
Username: Latha Venkatesh
Twitter handle: @latha_venkatesh
6. Cullen Roche’s tweet on 401(k) plans
Cullen Roche, founder of Orcam Financial Group, an investment management firm, tweeted on 401(k) plans stating that they no longer provide the savings and extra returns due to changes in tax laws and high fees. He noted that 401(k) plans were forced by the government as a way for people to save for their retirement, which they would otherwise avoid.
Cullen mentioned that the four benefits that 401(k) plans offered have changed since they were introduced in 1980. The federal income tax rate in 1980 was 43%, while currently it is at 12%. Similarly the capital gains tax rate was 28% in 1980, and currently at 0%, while interest rates were at 15% and currently at 0%.
IMO the biggest benefit of a 401K is the forced saving aspect of it. So many people have retirement savings they otherwise wouldn't have simply because a 401K plan disciplined them to save.
— Cullen Roche (@cullenroche) July 22, 2020
Username: Cullen Roche
Twitter handle: @cullenroche
7. Lawrence McDonald’s tweet on reduction in credit limits by Capital One
Lawrence McDonald, managing director at ACG Analytics, an investment research firm, tweeted on Capital One, the third largest card issuer, lowering its credit card limits. He noted that Capital One is cutting credit limit on some credit cards, just after unemployment aid expired and people struggled amid the pandemic.
Lawrence suggested that the Federal Reserve should backstop Capital One’s credit receivables instead of buying Berkshire and Apple bonds. He noted that this is a simple solution to reducing inequality among the people, which has been exacerbated by the pandemic.
*CAPITAL ONE LOWERS CARD LIMITS AMID U.S. IMPASSE ON JOBLESS AID
Dear Federal Reserve,
Instead of buying Berkshire and Apple bonds, backstop Capital One’s credit card receivables. It’s a very simple inequality solution that you claim to care so much about. https://t.co/SBxTRPsoiB
— Lawrence McDonald (@Convertbond) August 28, 2020
Username: Lawrence McDonald
Twitter handle: @Convertbond
8. Barry Ritholtz’s tweet on holistic wealth management services
Barry Ritholtz, chief investment officer of RWM, shared an article on how the company delivers its holistic wealth management services to customers and their families. He noted that it takes talent, human capital, knowing your clients, caring about their wellbeing and having systems in place to perform as a fiduciary advisor.
The article detailed that more than technology, software and exchange traded funds allocation, caring about the clients is more important, which requires the right human capital.
This is what it takes to deliver holistic wealth management + serve investors + their families as a fiduciary advisor. It takes knowing your clients, caring about their wellbeing and having smart systems in place.
— Barry Ritholtz (@ritholtz) August 12, 2020
Username: Barry Ritholtz
Twitter handle: @ritholtz
9. Rick Ferri’s tweet on simplicity in investment
Rick Ferri, CEO of Core-4 Investing, a financial services firm, tweeted on how simplicity is key when making investment plans. He noted that a simple investment portfolio can gain more returns over a complex portfolio.
Ferri added that this is particularly important when an individual’s spouse is left uninterested in managing a portfolio in case of his/her partner’s death or diminished mental incapacity.
Introducing SIMPLICITY ALPHA
Simplicity is alpha. Your investment return will be higher if you have a simple portfolio over a complex one. This is certainly true for an otherwise uninterested spouse who's left managing a portfolio in the case of your death or mental incapacity.
— Rick Ferri (@Rick_Ferri) July 15, 2020
Username: Rick Ferri
Twitter handle: @Rick_Ferri
10. Deepak Shenoy’s tweet on picking stocks for investment in India
Deepak Shenoy, CEO of Capital Mind, an investment management firm, shared an article on how to choose stocks in India for investing. He noted that the probability of failure of the stocks picked by a person generating higher returns than the savings in his account is more than half.
The article detailed that picking the right asset allocation with a low-cost combination of index funds increases the chances of meeting financial goals. By filtering stocks based on governance and capital structure criteria, chances of losses can be reduced and more realistic returns can be expected.
— Deepak Shenoy (@deepakshenoy) September 8, 2020
Username: Deepak Shenoy
Twitter handle: @deepakshenoy