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Hiltzik: Why don’t you have to put your 401k in private equity
Ever looking for opportunities to make new money for the average American, the Trump administration earlier this month paved the way for a 401 (k) plan and similar individual accounts to invest in private equity funds.
According to Labor Secretary Eugene Scalia, this reflects President Trump’s determination, through the May 20 executive order, “to remove obstacles to the largest engine of economic prosperity the world has ever known: innovation, initiative, and encouragement of the American people.”
That’s a chance.
We have seen a number of proposals from private equity funds where the returns are really not calculated in a way that I think is honest.
Warren Buffett, May 2019
Private equity funds, which invest in companies not listed on the stock exchange and therefore do not have to report their finances or operations publicly, are among the riskiest and most opaque investment vehicles designed by Wall Street.
They often overload the acquired companies with large debts, reducing their long-term prospects even when they generate short-term profits for the promoter. And their capital may be tied to illiquid investment which makes it difficult for clients to get their money whenever they want.
Until now, ordinary Americans have been effectively banned from this sector because of the requirements of the Securities and Exchange Commission that they are only open to “Accredited” investors – generally those with income of at least $ 200,000 in recent years or net worth of at least $ 1 million, not including homes.
On June 3, however, The Department of Labor issues guidelines allows sponsors of a 401 (k) style plan to offer investments with “components” of private equity.
The agency does indeed place some restrictions on how the investment should be arranged. Direct investment in private equity companies by ordinary investors is still prohibited. Conversely, the private equity component must be placed in a larger diversified fund that has sufficient liquidity to pay off investors who want to get out immediately.
However, the change is a big advantage for private equity promoters, who have lobbied for years to get their gloves at an estimated $ 6.2 trillion in 401 (k) accounts and $ 2.5 trillion in each retirement account . They might hope that once the door is opened, some of the remaining restrictions will be erased.
Is this sector a good idea for the average owner of 401 (k)? I don’t usually offer investment advice through this column, so let me say: If I tend to invest my 401 (k) money in private equity, I hope my family will arrange to have my head examined.
Scalia certainly didn’t see things like that. In announcing the new June 3 guidelines, he called the rules changing the way to “help saving Americans retire access to alternative investments that often yield strong returns.”
Private equity companies have kept money flowing to politicians in recent years.
(Center for Responsive Politics)
He said the aim was to “equalize ordinary investors … to ensure that ordinary people who invest for retirement have the opportunities they need for safe retirement.”
Watch that word “often.” That is a common weasel word, the subtext of which is “alternative investment” often not provide strong returns.
It is appropriate to observe that Scalia does not distinguish itself as a rank of labor champion, which makes it the perfect choice to lead Trump’s Department of Labor when he was appointed last year.
Only this month, Scalia opposed the Democratic proposal to extend $ 600 in federal unemployment benefits past July 1. At that time, he said, “the circumstances that originally asked for $ 600 plus-ups would change.” That’s debatable, because more than 20 million Americans remain unemployed today.
Private equity funds are known as alternative investments in part because they operate in an alternative reality to traditional investments: They produce limited disclosures, or no useful disclosures at all; there is no generally accepted formula for measuring returns; and they will incur a much higher management fee than conventional stock, bond or money market funds.
No less than experienced investors Warren Buffett warned his own shareholders far from this sector.
“We have seen a number of proposals from private equity funds where the returns are really not counted in a way that I think is honest,” Buffett said at the annual Berkshire Hathaway meeting in May 2019, which holds the company’s investment portfolio. “If I run a pension fund, I will be very careful about what is offered to me.”
Charles Munger, vice chairman of Berkshire and Buffett’s longtime business partner, added his own observation that private equity firms sometimes extract reported returns by parking money in treasury bills but do not report ownership of low returns in their portfolio yields. “All they do is lie a little to make money,” he said.
Claims from the private equity sector to produce higher returns than conventional stocks and bonds have been regularly questioned. Whatever gross returns enjoyed by private equity firms are eliminated by fees collected by their promoters, usually 2% a year of the total value plus 20% of the profits.
As observed by Brett Arends from MarketWatch, by taking the average gross profit from the Standard & Poor’s 500 index at 12% per year (excluding inflation), private equity funds must set aside 17% gross profit per year just to equal the S&P 500. That’s not realistic, to say the least.
Analysis of notes written and posted after changes to the regulations of the Department of Labor by Ludovic Phalippou from Oxford University found that the gross return on private equity funds roughly matches the public stock index, but a disproportionate share of profits goes into the pockets of people in private equity.
“The number of PE millionaires,” he observed, “rose from 3 in 2005 to 22 in 2020, and most were affiliated with large PE companies.”
Private equity companies say that they remain popular among large institutional investors, which means they offer legitimate value.
Phalippou did not buy that argument. He attributed their popularity to conflicts of interest between institutional decision makers, and “low financial literacy between the two actors and even many agents – people who policymakers uniformly classify as” sophisticated investors. “
Private equity companies have stretched into Republicans and the Trump administration through liberal applications of cold money and influence. In 2018, these companies contributed nearly $ 110 million to candidates and political action committees, and this year (so far) around $ 77 million.
These contributions were roughly divided between Republicans and Democrats in the last two election cycles.
But the largest private equity firm, Blackstone Group, has recently sent most of its contribution to conservative and Republican recipients – around $ 18.5 million from $ 21 million in 2019-2020. One of the founders and chair of Blackstone, Stephen A. Schwartzman, is chief adviser to President-elect Trump during the 2016 transition.
Schwartzman made no secret of his desire to get retail investors’ money. “In life you must have dreams,” he said Conference call January 2017 with Wall Street analysts.
“One of his dreams is our desire and the market needs to have more access in retail to alternative asset products. … At the moment many people are not allowed to put them in retirement vehicles and other types. And one of the interesting problems when you have a new government is whether they want to continue with such a ban or not. “
Get the instructions, Mr. President? (Kudos to David Sirota to dig up this invaluable nugget.)
To put Schwartzman’s wishes in perspective, Eileen Appelbaum of the Center for Economic and Policy Research calculated that only 5% of available funds from 401 (k) and Individual Pension Accounts would reach $ 435 billion – “real money even for private equity millionaires and billionaires, “He wrote. “The value proposition for workers, whose retirement income is likely to be depleted by costs for returns that may not be realized, is far less clear.”
He’s right. The median 401 (k) account does not have enough in it to support its owner through a long pension.
That is an argument for maintaining the balance of risks and rewards in their portfolios, not for taking leaflets on high-risk and questionable “alternative investments”.
If the Trump and Scalia Labor Departments really care about the prospect of retirement from rank, they will warn them to stay away from private equity, not to open the door wider.
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Acrylic nails are a popular choice for those looking to add length, strength, and style to their natural nails. Whether you’re new to the world of acrylics or a seasoned nail enthusiast, there are always questions that arise about the application, maintenance, and overall care of these enhancements. This guide will answer all your acrylic nail questions to ensure your next manicure is a complete success.
What Are Acrylic Nails?
Acrylic nails are artificial nail enhancements made from a mixture of liquid monomer and powder polymer. When combined, they form a hard protective layer that can be molded into various shapes and lengths. Once hardened, they provide a durable and long-lasting canvas for nail polish, art, or simply a natural look. For more in-depth information, check out Acrylic Nail FAQs to get all the details you need before your next salon visit.
How Are Acrylic Nails Applied?
The application process of acrylic nails begins with the preparation of your natural nails. The nail technician will clean your nails, file them down, and apply a bonding agent to help the acrylic adhere. The acrylic mixture is then applied in thin layers, sculpted to the desired shape, and allowed to dry. Once set, the nails are filed, shaped, and buffed to a smooth finish.
Acrylic nails can be customized in terms of length and shape, making them a versatile choice for anyone looking to enhance their look.
How Long Do Acrylic Nails Last?
Typically, acrylic nails can last anywhere from two to three weeks before requiring a fill. During a fill, the nail technician will replace any grown-out acrylic and maintain the structure of the nails. With proper care, acrylic nails can be worn for extended periods, but it’s essential to give your natural nails a break occasionally to maintain nail health.
How Do You Care for Acrylic Nails?
Caring for acrylic nails is crucial to ensuring they last as long as possible and that your natural nails remain healthy underneath. Here are some essential tips:
- Avoid excessive water exposure: Prolonged exposure to water can weaken acrylic nails, making them prone to lifting or damage. When washing dishes or cleaning, consider wearing gloves to protect your nails.
- Moisturize cuticles regularly: The acrylic application process can sometimes dry out your cuticles. Regularly apply cuticle oil to keep your cuticles hydrated and prevent hangnails.
- Be gentle with your nails: Acrylics can be strong, but they’re not indestructible. Avoid using your nails as tools to open packages or scrape things, as this can lead to breakage.
- Schedule regular fills: As your natural nails grow, gaps will appear between the acrylic and your cuticles. Regular fills ensure your nails maintain a smooth, polished look and help prevent lifting.
How Do You Remove Acrylic Nails Safely?
Proper removal is crucial to avoid damaging your natural nails. It’s highly recommended to have acrylics removed by a professional at the salon. However, if you prefer to remove them at home, follow these steps:
- Soak in acetone: Start by soaking a cotton ball in acetone, then place it on each nail. Wrap your fingers in aluminum foil and allow the acetone to work for about 20 minutes.
- Gently scrape off the acrylic: After soaking, use a cuticle pusher or an orange stick to gently scrape off the softened acrylic. Be patient and avoid forcing the acrylic off, as this can damage your natural nails.
- Buff and moisturize: Once the acrylic is completely removed, buff your natural nails to smooth out any rough spots and apply cuticle oil to restore moisture.
Are Acrylic Nails Safe for Your Natural Nails?
When applied and removed properly, acrylic nails should not cause significant damage to your natural nails. However, improper removal or overuse without giving your nails time to breathe can lead to thinning, weakening, or breakage of your natural nails.
If you plan on wearing acrylic nails long-term, it’s a good idea to take breaks between applications and ensure you’re nourishing your nails with oils and treatments.
What Are the Best Acrylic Nail Shapes?
Choosing the right nail shape is essential for creating a look that complements your hands. Some of the most popular acrylic nail shapes include:
– Square: A straight-edged, classic look perfect for shorter nails.
– Oval: A soft, rounded shape that elongates the fingers.
– Coffin: Also known as ballerina shape, this trendy look features a tapered edge with a flat tip.
– Stiletto: A dramatic, pointy shape ideal for those who want a bold statement.
Each shape offers a unique aesthetic and can be tailored to suit your personal style.
Are There Any Alternatives to Acrylic Nails?
If you’re looking for a different type of nail enhancement, consider these alternatives:
– Gel nails: Gel nails offer a glossy finish and are cured under UV or LED light. They’re less rigid than acrylics and can feel more natural.
– Dip powder: This method involves dipping the nails into a colored powder and sealing them with a clear coat. It provides a similar look to acrylics but is generally less damaging to the natural nails.
Conclusion
Acrylic nails are a versatile and durable option for achieving customized, beautiful nails. By understanding the application process, knowing how to care for them, and safely removing them, you can enjoy long-lasting manicures that enhance your style. With the ability to choose from a variety of shapes and designs, acrylic nails offer endless possibilities for self-expression. Remember to take care of your natural nails in between applications to keep them healthy and strong. Whether you’re a first-time user or a seasoned pro, acrylic nails can be a fantastic way to express your personality and keep your nails looking flawless for weeks.
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When sanctions were imposed on Russia for its war against Ukraine, their objectives were twofold: to reduce Russian military capacity by limiting modern weapons and to lower Russian revenue streams. While in the beginning, the sanctions indeed weakened the Russian economy, they have fallen short of their initial objectives – mostly because Russia has found ways to circumvent many of them. The Kremlin has exploited international corruption, relied on foreign third parties, and utilized loopholes in trade restrictions. One such individual who allegedly provides services to Russian-linked companies is Jacqueline Troost Omvlee, a Geneva-based Dutch citizen.
Jacqueline Troost Omvlee is married to Niels Troost, an oil trader sanctioned by the United Kingdom. He and his company, Paramount Energy & Commodities SA, are among the 50 individuals and organizations blacklisted in response to the business connections with Russia. His wife, Jacqueline, helps to facilitate financial transactions for Niles Troost and Russian oligarchs including Gennady Timchenko, a Russian billionaire oil trader and Putin`s close associate.
Gennady Timchenko and his family have been sanctioned in many countries for backing the Kremlin’s war machine. However, with the help of Jacqueline Troost Omvlee, he seems to find ways to evade sanctions and continue his financial operations. In these illegal schemes, individuals like Jacqueline often serve as a front person for sanctioned oligarchs and their business assets. Russian-linked companies set up subsidiaries around the world, often registering new entities in offshore havens or countries where regulations are relatively lax or non-existent. To obfuscate the arrangements, the daughter companies spawn offspring in the form of subsidiaries, as the chain of concealment stretches on and on. The result is like a giant Matryoshka doll.
Jacqueline’s involvement in financial transactions that potentially support Timchenko’s interests raises significant concerns about the efficacy of Western sanctions. The fact that Jacqueline Troost Omvlee continues to operate without facing sanctions herself highlights a significant loophole in the enforcement mechanism. Various shady schemes and tactics designed to circumvent sanctions often hide the activity of individuals such as Jacqueline, making it difficult for authorities to detect and punish them for their involvement.
Jacqueline Troost Omvlee’s role in her husband’s financial dealings as well as her alleged ties to Russian business schemes, emphasizes the need for stronger international sanctions. Her actions not only aid in sanctions evasion but also diminish the overall effectiveness of the measures designed to isolate and pressure those supporting the Russian regime. Therefore, sanctioning Jacqueline Troost Omvlee is not only a matter of addressing her individual actions but also a necessary step to reinforce the credibility and effectiveness of the sanctions regime. By targeting individuals who play a key role in evading sanctions, authorities can send a strong message that efforts to undermine international sanctions will not go unpunished. This measure is crucial for maintaining the integrity of the sanctions system and ensuring that it achieves its intended goal of isolating and restraining those who support destabilizing activities.
European countries and the US need to expand their sanctions-tracking and investigative actions to improve the monitoring of sanctions compliance and to introduce new measures against systematic violators of law. The sanctioning states have the resources and capacity for this, and need to take action now.
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Ensuring a long and healthy life for your Hermann’s Tortoise requires a combination of proper care, nutrition, and habitat management. Hermann’s Tortoises, known for their charming personalities and distinctive shells, can live for several decades with the right conditions. Understanding their needs and providing a suitable environment is key to helping them thrive. Here’s how you can support your Hermann’s Tortoise in living a long, happy life.
Creating an Optimal Habitat
One of the most critical factors in promoting the longevity of your Hermann’s Tortoise is the creation of a suitable habitat. Providing an environment that mimics their natural surroundings is essential for their overall health. An appropriate habitat helps prevent stress and supports their well-being. For detailed guidance on setting up an ideal habitat, including specific requirements for outdoor enclosures, visit this comprehensive guide on Habitat for Hermann’s Tortoise.
- Outdoor Enclosure: Hermann’s Tortoises thrive in outdoor enclosures that provide ample space to roam, bask, and forage. An outdoor setup should include a secure, predator-proof area with access to natural sunlight. Incorporate areas for basking and shade to allow the tortoise to regulate its body temperature. Additionally, include plants, rocks, and hiding spots to simulate their natural habitat and encourage natural behaviors.
- Indoor Habitat: If an outdoor enclosure is not feasible, an indoor habitat can also support a long lifespan if set up correctly. Use a large, well-ventilated enclosure with appropriate heating and UVB lighting. Provide a substrate that allows for burrowing and offer various hiding spots and enrichment items.
Diet and Nutrition
A balanced diet is vital for maintaining the health and longevity of your Hermann’s Tortoise. They are primarily herbivores, and their diet should reflect their natural feeding habits.
- Leafy Greens: Offer a variety of leafy greens such as kale, collard greens, and dandelion greens. These vegetables provide essential vitamins and minerals that support overall health.
- Vegetables and Fruits: Supplement their diet with other vegetables like carrots, squash, and bell peppers. Fruits should be given in moderation due to their high sugar content.
- Calcium and Supplements: Provide a calcium supplement to support shell and bone health. A cuttlebone or powdered calcium can be added to their food. Ensure that they also have access to fresh, clean water at all times.
Regular Health Checks
Routine health checks are essential for early detection of potential health issues. Regular veterinary visits help ensure your tortoise remains in optimal condition and addresses any health concerns promptly.
- Observation: Monitor your tortoise’s behavior and physical condition regularly. Changes in appetite, weight, or activity level can indicate health problems.
- Preventative Care: Schedule annual check-ups with a veterinarian experienced in reptile care. Regular exams help catch any issues early and keep vaccinations and other preventative treatments up to date.
Environmental Enrichment
Providing environmental enrichment helps keep your Hermann’s Tortoise mentally stimulated and active. Enrichment can reduce stress and prevent boredom, contributing to a better quality of life.
- Foraging Opportunities: Hide food items around the enclosure to encourage natural foraging behavior. This not only provides mental stimulation but also mimics their natural hunting practices.
- Variety: Change the layout of their enclosure periodically and introduce new objects or plants to keep their environment interesting and engaging.
Conclusion
By focusing on creating the right habitat, providing a balanced diet, ensuring regular health checks, and offering environmental enrichment, you can significantly enhance the lifespan and well-being of your Hermann’s Tortoise. For further details on creating an ideal habitat, including tips for designing an outdoor enclosure, refer to this helpful guide on Habitat for Hermann’s Tortoise. Implementing these practices will help ensure that your tortoise enjoys a long, healthy life.
Proud web evangelist. Travel ninja. Creator. Freelance food nerd. Passionate bacon fanatic.
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