Business Briefs
Star-Bulletin staff
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FAST FACTS HAWAII
NATION
A mix of old and new in the office
As employers try to keep Baby Boomers working longer, office cultures are morphing into a more age-diverse mix than before. Companies want their older and younger workers to mix well, and have found some new ways to help them do that.
The ClearRock executive coaching and outplacement company said six of 10 companies are using older employees as mentors to younger workers. One-third of companies are sponsoring after-work social functions to get employees of differing ages to get along better.
The survey from ClearRock shows 44 percent of companies saying relations between generations are excellent while 46 percent rated them as good. Just 10 percent said they were fair.
"Younger and older employees can help each other grow professionally," ClearRock Managing Partner Greg Gostanian said. Companies also said improving communication was important, and 15 percent of companies reported they used sensitivity training to help bridge the generation gap.
Allocate your assets within groups
Diversifying your assets among the three major classes -- stocks, bonds and cash equivalents -- is not enough. Investors should also diversify within the classes themselves, according to the Pennsylvania Institute of Certified Public Accountants.
PICPA prompts investors, in a recent newsletter, to use the new year as a time to review how their investments are allocated, especially as the three asset classes react differently to economic events and market conditions. The accountants group reminds investors to rebalance their assets and always take into account their personal capacity for risk.
Timing the market is big mistake
Bryan Olson, vice president of portfolio consulting at the Schwab Center for Investment Research, says the biggest mistake you can make is trying to time the market. Tell that to the day traders.
Olson writes that it is "close to impossible" to time market shifts when trying to find big gains. He said the main reason market timing often doesn't work is that price gains usually come in quick, intense bursts. "Predicting such sudden market turns requires an impossibly high degree of accuracy."
He also cites "the pro's predicament," or the fact that a risk-taking investor has to be right twice, once when you sell and once when you get back in. Olson cites a study of 25 professional investors who use market timing. It found their performance depended equally on their skills and plain luck.
Gift shopping rings up big debt
The flurry of gift shopping near the end of the year leads some down the path of least resistance and into the land of credit card debt. The average household has $10,000 in debt, and the holiday spend-athon no doubt puts pressure on consumers to buy more and boost their personal deficits ever higher.
The Consumer Credit Counseling Service offers five tips to consumers who find themselves having bought more than they had planned.
» Know how much you owe: Add up all your credit card and other bills to get a realistic picture of what is owed.
» Create a spending plan: Decide beforehand what needs to be paid, then put in place a plan for your income.
» Pay off credit card debt: Stop making new charges and pay down what you already owe.
» Build a savings cushion: The goal is to have enough to cover your expenses for three to six months.
» Develop a strategy for a financial future: Monitor your finances on a regular basis. Open a retirement fund and contribute to it regularly.
BUSINESS PULSE