The first ETF to offer investors with exposure to hedge funds recently celebrated its third anniversary, according to a statement released by custom investment solutions provider IndexIQ.

IndexIQ created the financial instrument with the intention of providing retail investors with access to investment strategies utilized by hedge funds.

The ETF has the investment objective of the tracking the IQ® Hedge Multi-Strategy Index, before fees and expenses. The security provides users with exposure to hedge funds that utilize a wide range of asset management styles – including emerging markets, long/short equity, fixed income arbitrage, global macro and event-driven.

The fund also provides market participants with an option that is highly illiquid and transparent.

"We launched the IQ Hedge Multi-Strategy Tracker ETF in 2009 with the goal of making a whole new asset class available to the average investor," Adam Patti, chief executive officer of IndexIQ, said in the statement. "Before the launch of QAI, hedge fund investing was generally limited to institutions and high net worth individuals."
ETF provider Global X recently submitted a prospectus to the SEC, which outlined information related to four proposed funds that would track the performance of hedge funds, according to ETF Trends. The four proposed funds would be based on indices created by custom investment solutions provider Structured Solutions AG.

The Global X Top Activist Investor Holdings ETF will be based on the Solactive Top Activist Investor Holdings Index, and will provide market participants with the ability to gain exposure to investment strategies executed by activist investors.

IndexIQ is also seeking approval for a fund named Global X Top Hedge Fund Equity Holdings ETF, which has the objective of duplicating the performance of the Solactive Top Hedge Fund Equity Holdings Index before fees and expenses.

The Global X Top Value Guru Holdings ETF, which is based on the underlying Solactive Top Value Guru Holdings Index, seeks to provide investors with exposure to returns generated by specific value investors.

The Global X Listed Hedge Funds ETF will be based on asset managers listed in the Solactive Listed Hedge Funds Index, and will put funds into shares and global depository receipts of hedge funds that are publicly traded.

ETFs should be of particular interest to young investors, as they offer exposure to a wide range of assets with a small initial capital outlay.

The Pet Rock came about in the 1970s, developed by advertising executive Gary Dahl from California. It was presented as not needing to be fed, watered, or walked, and of course, being a rock it would not need anything, ever. Mr. Dahl bought a load of various stones and rocks, packaged them up for resale at around four dollars, and then, he marketed them, as if they were actual pets. This idea turned Gary Dahl into a millionaire.

Another strange idea is called Holy Ink. Father Bernard McCoy and other brothers for the monastery of Cistercian Abbey in Monroe City, Missouri, decided to open a business that refilled empty ink canister for printers. One day after exhausting his supply of printer ink, he searched the internet and discovered that there were no businesses devoted to refilling ink in printer cartridges. His idea has made Cistercian Abbey millions of dollars.

Capitalizing on the Christmas spirit, a group with a postal address registered at The North Pole, Alaska, decided to charge parents ten dollars to send those parents’ children a letter, masqueraded as Saint Nick, himself. This business idea made around two million dollars, after over two hundred thousand parent requested that the fake Santa Clause team in Alaska send their children letters.

Many other people have gotten their entrepreneurial start on the internet, such as Nick Lindauer, a bona fide hot sauce lover. His online store Sweat N’ Spice was launched in 2001, where he marketed and sold a number of different types of hot sauces. Initially, he did everything by hand, from the packaging to the mailing. His business was quite slow at first; today, however, he sells thousands of products and earns himself hundreds of thousands of dollars every year.

Lastly, there is Sean Belnick, who came up with the idea to buy cheap office chairs made in China and sell them for higher prices in the United States. At an age of only fourteen when starting his business, Belnick’s company, BizChair.com, now earns somewhere in the range of fifty million dollars every year, and it has exclusive retail right to the products of a number of companies.

These are just a few examples of unusual ideas that made some people quite rich, but there are many others out there.

The depreciation experienced across many asset classes during the most recent recession exemplifies how investments can follow each other during a down market. As the market crash was system-wide, participants responded by pushing the value of various assets to lower values.

Finance experts have repeatedly touted the strategy of portfolio diversification, which involves holding assets that follow each other in value as little as possible. For example, gold's strong appreciation of 10 percent in 2011 displayed a low correlation to the S&P 500 Index, which was virtually unchanged from the beginning of the volatile year to the end.

Assets display higher correlation during bear markets, as the poor sentiment of investors causes them to engage in broad selloffs of many different investments, causing them to fall in value at the same time.
Young investors can overcome these challenges by waiting out down markets and focusing on long-term financial planning. These market participants need to look at the appreciation that their assets will enjoy in the long run.

People who will not need to take money out of their investments for many years can simply ride out the down market conditions.

One major temptation that many investors will face is following the rest of the market and selling their assets when they have dropped in value in an attempt to prevent further losses. People planning for long-term financial goals should resist "jumping on the bandwagon" with other investors and unloading their assets when the market is performing poorly.

Data provided by various studies recently conducted by market experts indicate that many individuals are facing challenges in planning for their retirements, so young investors who are just starting out can benefit from studying basic principles that will help their long-term financial planning efforts.

Data generated by a recent Wells Fargo study indicates that three-quarters of respondents, who were earning an annual income between $25,000 and $100,000 and aged between 20 and 70, said that they planned on working during years that have traditionally been used for retirement, according to Reuters. 

Job seekers who are either currently employed or who have been jobless long enough to count as being long-term unemployed are likely to encounter more questions than other candidates, according to Forbes.

Market experts have established that hiring managers are only trying to determine three things when interviewing applicants, Forbes reports. People interviewing these candidates want to know if the person is able to do the job, if they will truly enjoy the position and if they will fit in well with the other people in the office and the corporate culture.

In addition to these basic questions, hiring managers might ask more specific questions in hopes of uncovering additional information that could disqualify the candidate, according to Forbes.

Young professionals who are currently employed and looking at other job opportunities might be asked how they can find time to go on interviews while working, the media outlet reports.

"The real question is whether you are lying to and short-changing your current employer while looking for other work," job search expert Joyce Lain Kennedy told the news source.

Hiring managers asking this question may worry that if the candidate is "cheating" by interviewing for another role, he might do the same to their next employer, according to the media outlet.
Applicants who have been job searching for a long period of time after being laid off might be asked how long they have been unemployed, and how many other people were let go at the same time, the news source reports. This question could be easily followed by "why were you laid off?" Kennedy told the media outlet that this question is designed to uncover why the applicant was laid off in the first place.

The hiring manager could be making an effort to determine if the previous employer perceived the worker as underperforming and therefore let him go, according to the news source. The job search expert recommends providing a response along the lines of "I don’t know the reason. I was an excellent employee who gave more than a day’s work for a day’s pay."

Hiring managers have many other questions they could ask, but the aforementioned ones are tailored to candidates who are either working currently or who have been jobless for a while. 

Data that was recently compiled by the Employee Benefit Research Institute (EBRI) indicates that only 0.2 percent of individuals who are saving for their retirements have accumulated more than $1 million in their 401(k)s, according to SmartMoney.

EBRI research director Jack VanDerhei told the news source that only 2 percent of people who are 55 or older and have been putting money into the same 401(k) plan for 20 years have accumulated more than $1 million in their retirement plan.

The equity markets have displayed substantial volatility over the last few years, but investing in the stock market still provides better average annual returns in the long run than putting the same funds into "safe" assets such as cash, bonds and cash equivalents.

Substantial evidence suggests that active management generally provides lower returns than employing buy and hold strategies. Investors have historically done a poor job of timing the market. People always reiterate the traditional wisdom of "buy low, sell high," but the reverse frequently happens.

Investors frequently succumb to periods of "irrational exuberance," believing that asset values that have been following a steadily-rising trend will continue to appreciate. People often buy stocks because they are "hot," which often means "overvalued" in the long run.

Once a bear market hits, fear triggers a selloff in many assets and stocks decline in value. Many investors respond to these falling values by unloading their stocks, and in doing so "selling low" instead of their desired outcome of selling high.

Young investors who are planning for their retirements need to realize that they will not need to stop working and begin living off their savings for many years. As a result, they will have a long investment horizon. This longer period of time can provide them with greater certainty, as equity markets fluctuate substantially in the short term but offer strong average returns over longer periods.

Different studies have provided different ages when people think they will retire, but most individuals plan on working at least into their 60s. A person who is 22 years old and plans on working until the age of 62 has 40 years to save for retirement, and this window of time will allow him to experience various booms and busts in asset markets. 

ETFs are financial instruments that invest into a bundle of assets and trade like stocks. One major benefit that they provide investors is exposure to assets and risk management strategies that previously required much larger initial outlays.

For example, an investor can purchase a share of a gold ETF for less than $200, compared to the thousands of dollars required to create a commodities account. Alternatively, a market participant can gain easier diversification by purchasing ETFs that invest in the S&P 500 Index and therefore offer exposure to a basket of blue-chip stocks.

Market experts have repeatedly promoted diversification as a means of reducing portfolio volatility. The strategy becomes less effective in down markets, as widespread fear and pessimism help to drive selloffs in financial assets that pushes them down together.

Investors can use inverse ETFs to short plunging indices during down markets to obtain returns when many other market participants are being forced to accept losses. 

One major benefit of setting up a corporation is separating the personal and business assets of an entrepreneur, which reduces the liability of business owners in case issues occur with vendors or lawsuits are filed. Another benefit that can be derived from establishing a corporation is easier access to funding in the form of equity or debt.

Some business owners opt to form C Corporations, which provide the benefit of having an easier time issuing shares and the ability to hold an initial public offering when that option is desired. However, this business entity comes along with various requirements and the detriment of double taxation.

C Corporations need to pay both federal and state taxes, and any remaining profits that are paid out to shareholders are once again taxed. Business owners who want to operate these legal entities will need to fill various requirements including filing annual reports and establishing a board of directors. Owners of C Corporations will need to deal with more compliance and other documentation as well.

S Corporations have the same requirements, but the owners must first incorporate as C Corporations and then file a form under subchapter S to create the business entity. S Corporations can have up to 100 shareholders, and one class of stock. Shareholders need to be either U.S. citizens or permanent residents of the country.

One benefit of these corporations is that they are pass-through entities, meaning that they are not taxed at the corporate level. Any profits are passed on to shareholders, who file their own taxes.

LLCs offer business owners the tax benefits of S Corporations, but have fewer requirements and also more options. LLCs can offer their shareholders both common and preferred stock. Whereas profits and losses must be distributed equally among the shareholders, the owners of a LLC can make arrangements to divide the earnings and losses unequally.

For example, if four owners decide they want to set up a LLC and then later on, one of them wants to get a full-time job and still contribute to the business venture on a part-time basis, the shareholders could decide to allocate a smaller portion of the profits and losses to this individual. 

There are various practices that young entrepreneurs can engage in to save money that may simply seem like common sense. These market participants should be sure to do their due diligence related to researching topics related to money management and finance. One book that has been promoted repeatedly is Rich Dad, Poor Dad.

Learning the art of being frugal is crucial for business owners who are newer to the world of entrepreneurship. These people should consider what their business entities really need, and avoid extraneous costs.

Entrepreneurs should save their excess money in case they run into a crisis or an unexpected financial problem.
Aside from studying basic finances, one good way for small businesses to save money is paring down the amount of money they spend on labor, according to Entrepreneur Magazine. Business owners can save money by hiring independent contractors. Unlike employees, hiring contractors does not entail the expenditure associated with payroll taxes. Before working with a person in this manner, an entrepreneur needs to make sure that the contractor fits the definition provided by the Internal Revenue Service. Failing to do so could result in penalties.

Businesses can also save money by working with unpaid interns. Utilizing this strategy can reduce labor costs and also provide the interns with valuable experience that can benefit their careers.

Entrepreneurs can also contribute to lower labor costs by working with commission-only sales representatives, the media outlet reports. Using this method to compensate people for making sales can help a business owner avoid paying the costs of a salary, benefits, training, vacation and expenses. Getting this strategy to work by actually yielding sales can be challenging, as proven representatives will often refuse to work without a base salary.

Working with independent sales agents who have substantial industry experience and a wealth of contacts can help entrepreneurs to achieve the objectives of keeping costs down and generating results, as these people can reach out to prospects who they think might be a good fit instead of spending hours a day cold calling from a list of leads. Their training needs will be less, as they have a stronger wealth of industry experience to draw upon.

These are a few of the strategies that young entrepreneurs can use to keep their business costs down and make their dream more likely to survive. 

People who are just starting to put money away for their retirement may want to gather the info they need on Roth IRAs as well as traditional IRAs as the age that most people expect to retire seems to keep increasing.

Data provided by a survey conducted by consulting firm Towers Watson indicated that 39 percent of respondents stated they plan to delay retiring, according to CNBC. The study indicated that the majority of the people who stated they would push back their retirement said they would wait for another three years.

"68 is definitely the new 65!," Stacy Francis, a certified financial planner in New York City, told the media outlet. "Delaying retirement leaves a worker with fewer years of retirement to finance, more time to save and earn returns, and higher Social Security benefits if they delay taking them."

Wells Fargo conducted a study of 1,500 participants aged 20 to 79 earning at least $25,000 but less than $100,000, which revealed that 75 percent of respondents plan to work during years typically reserved for retirement, in addition 25 percent plan to work until they are at least 80 years old, Reuters reports.

Wells Fargo director of Institutional Retirement and Trust Joe Ready told the media outlet that of the respondents who plan to work in retirement, "47 percent said that they are going to continue in the same job or a similar job of similar responsibility."

He added that the figure "raises a lot of social and economic implications. Will they have the physical ability to work, the mental capacity? What does that mean for the younger work force in terms of coming through and looking to get ahead?"

Amid these challenges, people planning for their golden years should be careful about what retirement accounts they utilize.

Roth IRAs can benefit investors by allowing contributions made to grow tax deferred and also take distributions tax-free. In order to attain these tax benefits, people need to make contributions to these retirement accounts out of after-tax income.

Alternatively, traditional IRAs involve pre-tax contributions and distributions that are taxed. Essentially, using a Roth IRA instead of a traditional IRA means choosing to be taxed now instead of choosing to be taxed in retirement. Data provided by the Center on Budget and Policy Priorities indicates that many Americans are paying income taxes that are either equal or close to historical lows.

Young investors can take capitalize on these advantageous tax policies by making contributions to Roth IRAs. 

“Obama said his administration is addressing the issue of college affordability by increasing federal student aid. He called for Congress to stop the interest rates on student loans from rising, extend the tuition tax cut and double work-study jobs in the next five years. ”

And according to the Michigan Daily, there’s a chance that Michigan’s state funding for higher education in the coming year might be tied to performance metrics like graduation and retention rates.

But critics of Race To The Top say it would hurt higher education the same way it’s hurt elementary education. Nina Chacker, a teacher in Detroit Public Schools and member of Occupy Detroit’s Direct Action committee, said policies that tie school funding to performance only “widen the achievement gap.”

Read the entire story here.

Video: Obama Decries Rising Cost of College Education: MyFoxCHICAGO.com