Training Shiny Young Things

The kids keep getting younger, but their role in learning the ropes before they get to their desks is crucial to the bank's operations. July 18, 2024 [WEBSITE]( | [UNSUBSCRIBE]( Training Shiny Young Things SEAN RING Dear Reader, Yours truly speaking to 1,600 new hires at a big bank’s graduate training. While writing the Rude is the most incredible job in the world, to shake things up every summer, I teach banking graduates. What are banking graduates, you ask? So, who exactly are these “banking graduates?” They’re the fresh-faced, eager minds who have just stepped out of university or business school and landed a job at a bank. Every bank conducts its own training, but since the senior staff are already tied up with their own responsibilities, they call on experts like me to show these graduates the ropes. Our mission, as trainers, is to equip these graduates with the necessary skills and knowledge to be 'desk ready '. This banking jargon essentially means they'll be at a level of competence that won’t leave their colleagues regretting the decision to hire them. I love that job, too. If you’ve been reading the Rude for any fraction of time, you’ll know that no one loves the sound of my voice more than I do. When writing the Rude, I hear my subvocalized thoughts as I type. But when I’m teaching, I get to shout to the rooftops. While I’m here, I thought I’d take you through what I do and how I do it during the summers. First Things First You must know I partied through Villanova and had no chance of going through one of these fancy programs myself. Only a few of my college professors were worth listening to; the rest were garbage. I felt the same way about London Business School. I thought my education hurt my career. So when I left my broking job in London, I felt passionate about teaching finance and economics in an exciting and easily digestible way. When I started in March 2007, my teaching colleagues were excellent at their jobs and generous about sharing how they made their classes enjoyable. My firm at the time, 7city Learning, practically ran all the graduate training for the big banks in New York and London, along with CFA training and preparation for the British equivalent of the Series 7 examinations. I got more of an education after I left banking than when I was in the business! And funnily enough, I feel I’ve taken another leap forward working with Jim, Byron, Dan, Zach, Ray, and the rest of my most excellent Paradigm Press colleagues. How do we go about teaching all this stuff? The Course(s) I remember when I got my offer letter from Lehman Brothers in 1997. I was thrilled. My mother told me how proud she was. And then she asked this question: How do banks make all that money? I had no idea. So, the first thing we cover is banking: how it works, why it’s so important, and how banks profit from their clients. We’d be in a bank for three to six weeks in a perfect world. But that’s not reality anymore. But for old time’s sake, let me show you an ideal couple of weeks. After the first day covering banking, we’d move into what I call Trader Macroeconomics. We talk about mathematical economics, so they know what that is. However, it’s mainly focused on the numbers the Bureau of Labor Statistics and other organizations release throughout the month. GDP, inflation, and unemployment are heavily covered, for example. Next, we’d have a day on foreign exchange. Currencies are a pain to understand, so you need a full day. What mainly moves currencies is the macroeconomic outlook of the country where the currency is from and the interest rate differentials between the home currency and the foreign currency. After that come bonds, as interest rates would’ve been introduced in foreign exchange. Since this is the market's largest segment, it needs its own day. For the final day of the week, it’s equities, which is what most of the kids were waiting for, anyway. The following week, we’d kick off with a day of accounting, mainly learning about the big three financial statements. Then, we’d do derivatives over the next two days. On Thursday, we’d do the lifecycle of a client. That deals with how a client evolves through time. Finally, we’d end the course with the lifecycle of a trade, which goes through the operational aspects of trading and clearing. We offer financial and soft skills training. This entails learning to talk to clients, write emails, and build spreadsheets and presentations. Then, the kids would break off into specialist groups, such as investment banking, sales and trading, operations, or private banking. Private Banking I used to train the markets division much more, but they shrunk, thanks to algorithmic trading. Algorithmic trading is when machines buy and sell instead of humans. Because of my experience working with private bankers in Hong Kong, I've mainly taught the private banking curriculum for the past few years. What are the essential parts of that curriculum? Let me explain. Asset protection This answers the question, “How do I protect what I’ve already earned, saved, and invested?” Trusts, foundations, and companies are used as asset wrappers to protect and manage assets. Each structure has its unique features and benefits. Here's an overview of how they can be used: 1. Trusts: A trust is a legal arrangement where a person or entity (the trustee) holds and manages assets to benefit another person or group of people (the beneficiaries). Trusts provide a high level of control, flexibility, and privacy. Here's how they work: - The settlor: The person who creates the trust and transfers assets into it. - Trustee: The person or entity responsible for managing the trust assets and ensuring they are used for the beneficiaries’ benefit. - Beneficiaries: Individuals or groups who will receive the benefits or assets from the trust. Benefits of using trusts: - Asset protection: Trusts can shield assets from creditors or legal claims, as the trust, not the individual, legally owns the assets. - Estate planning: Trusts allow for the efficient transfer of assets upon the settlor's death, potentially minimizing estate taxes and avoiding probate. - Privacy: Trusts provide confidentiality, as they aren’t publicly disclosed. - Control: Trust documents specify how the assets should be managed and distributed, giving the settlor control over them even after they are transferred. 2. Foundations: Foundations are legal entities established for charitable, philanthropic, or social purposes. They are typically funded by a donation or endowment and operated for the benefit of a specific cause or group. Here's how foundations are used as asset wrappers: - Founder: This person or entity establishes the foundation and provides the initial endowment. - Board of Directors: Individuals responsible for managing the foundation's activities and ensuring compliance with its mission. - Beneficiaries: The recipients of the foundation's charitable activities or support. Benefits of using foundations: - Philanthropy: Foundations provide a structured approach to supporting charitable causes and positively impacting society. - Asset protection: Assets transferred to a foundation are legally separate from the founder's assets, protecting them from personal liabilities. - Tax benefits: Depending on the jurisdiction, foundations may enjoy tax advantages, such as exemptions or deductions for charitable donations. 3. Companies: Companies, also known as corporations or business entities, are widely used for commercial purposes. While their primary function is not typically asset protection, they can be utilized as asset wrappers in certain situations. Here's how companies can be used: - Shareholders: Individuals or entities who own shares in the company, representing their ownership interest. - Directors: Individuals responsible for managing the company's affairs and making operational decisions. - Officers: Executives appointed to oversee specific functions within the company, such as CEO, CFO, etc. Benefits of using companies: - Limited liability: A company's shareholders generally have limited liability, meaning their personal assets are separate from the company's liabilities. - Business operations: Companies can be used to conduct business activities, generate income, and accumulate assets. - Investment management: Companies can hold and manage investments on behalf of their shareholders, providing a layer of separation between the individual and the assets. It's important to note that the specific rules and regulations governing trusts, foundations, and companies can vary significantly between jurisdictions. Always consult with legal and financial professionals familiar with the laws in your jurisdiction to determine the most appropriate asset wrapper for your needs. [ SELL-OFF WARNING ]( [The stock market is entering a cycle of HISTORIC manipulation.]( Prices have surged recently… But when this trend reverses – and trends always do… Millions of investors could be on the wrong side of [a historic “pump-and-dump”.]( That’s exactly what I believe is happening behind the scenes – Wall Street is propping the market up. And within the next week or two… I believe we are going to see a historic selloff. [Click Here To Learn Why]( Portfolio management This answers the question, “Where do I put all my money?” Portfolio management in private banking refers to the professional management of investment portfolios for high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). Private banks offer specialized services to clients with substantial financial resources, aiming to preserve and grow their wealth over time. You can do the same without the bells and whistles. Here's a quick overview of portfolio management: - Client Assessment - Investment Strategy - Investment Selection - Ongoing Monitoring and Reporting The key here is to put your wealth in investments that don’t keep you up at night. Minimizing tax liability This answers the question, “How do I keep my wealth in my children’s hands and not the government’s?” Minimizing tax liability involves employing legitimate strategies and taking advantage of available deductions, exemptions, credits, and incentives to reduce the overall tax burden. Here are some general approaches to minimizing tax liability: - Optimize Deductions and Credits - Maximize Retirement Contributions - Consider Tax-Advantaged Investments - Timing of Income and Expenses - Capital Gains and Losses - Tax-efficient Asset Allocation - Consider Tax Treaties and International Tax Planning: - Charitable Giving (see below) Why give your money to the government, which redistributes it to complete strangers, when you can ensure your children’s futures? Estate planning This answers the question, “How do I know things will be ok after I shuffle off my mortal coil?” Succession planning involves creating a comprehensive strategy to address the transition of both financial and non-financial assets. Here are key steps and considerations involved in succession planning: - Define Objectives and Goals - Identify Successors and Roles - Estate Planning and Wealth Transfer - Business Succession Planning - Family Governance and Communication - Philanthropic Planning - Tax Planning and Professional Advice - Periodic Review and Updating The trick here is to make sure the smart kids get the company to run. The slow ones will still get the dividends to reap, but keep them away from the machine. Philanthropy When a high-net-worth individual (HNWI) or ultra-high-net-worth individual (UHNWI) engages in philanthropy, several key considerations should be considered to ensure effective and impactful charitable giving. Here are the primary considerations: - Mission and Values - Impact and Outcomes - Strategic Approach - Due Diligence - Sustainability and Scalability - Engaging Stakeholders - Collaboration and Partnerships - Measurement and Evaluation - Professional Expertise - Ethical Considerations One of my buddies loves elephants. He donates pallets of cash to elephant charities. To each his own. Wrap Up I hope you enjoyed the little trip around what I do over the summers. It should give you a clue about what you need to do, in case you missed anything. All the best, Sean Ring Editor, Rude Awakening X (formerly Twitter): [@seaniechaos]( Rate this email Like Dislike Thanks for rating this content! Looks like something went wrong. Please try to rate again. In Case You Missed It… These Stocks Made So Much Money! SEAN RING Dear Reader, This will be a short edition of the Rude. That’s because [I want you to watch this critical video on Paradigm Press’ YouTube Channel](. I sat with my good friend, tech expert, and retirement savior, Ray Blanco. Ray’s picks this year have been breathtakingly good. When you measure a stockpicker’s returns, it’s essential to remember two legendary investor takes. The first take is from George Soros, the greatest trader ever, before he started doing his Ernst Stavros Blofeld impersonation. Soros once said, “It’s not whether you’re right or wrong, but how much money you make when you’re right and how much you lose when you’re wrong.” Ray has shot the lights out with his winning picks and the ones that haven’t cost little capital. The second is Charlie Munger, who once said, “It’s remarkable how much long-term advantage people like us [Warren Buffett and Munger] have gained by consistently avoiding stupidity rather than trying to be overly intelligent.” You do NOT need to understand the science behind tech and biotech stocks to profit from them. Leave that to Ray. You can see how lost I am in this video when Ray enthusiastically spews his incredible inventory of scientific knowledge. I’ve got no idea what he’s talking about. As the Aussies say, “I’ve got a face like a beaten favorite.” It’s ok. Ray’s got us. I’ve listed the four stocks below, with their charts, so you can follow along with the video. VKTX Ray recommended VKTX when it was trading at around $11. I bought it then and watched it rocket to $99 before falling off the pace. I eventually sold my position at about $78. That’s a seven-bagger, or a 600% return! Ray’s pick changed the landscape of my retirement, and I’ll forever be grateful. And who knows, this stock may have more to offer in the future. We might just get back in at a later date. IBRX ImmunityBio was another great pick of Ray’s. I doubled my money in this stock. [“I traveled over 1,000 miles to show you this strange device…”]( He traveled 1,000 miles away from home… To show you this strange device on a farm in rural Virginia. You won’t know by looking at it, but a secret company behind this strange device could hold the potential to make you rich over the coming years. [Click Here To Find Out How]( ASTS Disclosure: I still own ASTS and have no intention of selling anytime soon. Ray told me about this stock when it was trading at $2.50, and I waited for it to move. Unfortunately, it moved so quickly in eight days that my buy price was $9.45! Despite my awful entry price, I’m currently up over 45%. I’m targeting a $35 price for this stock, though I think it can run into the triple digits in the next 18 months. NNE Disclosure: I still own this stock and have no intention of selling it anytime soon. The world needs nuclear energy, and this stock has it. Again, I got in well after Ray recommended the stock ($13.10), yet I’m still up 72.24%! This could be another multi-bagger winner. Wrap Up So,[watch this entertaining and informative video on YouTube.]( And if you believe in the potential of Ray’s Catalyst Trader, take the next step and sign up on Paradigm Press' webpage. The future of your investments could be brighter than you think. Ray changed the face of my retirement. I know he can do the same for you. All the best, Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2024 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@rudeawakening.info. 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