Setti Warren Welcomes Panel of ‘Money’ Magazine Editors to BC
Published: Wednesday, November 16, 2011
Updated: Wednesday, January 9, 2013 18:01
"Transparency, honesty, and making smart, tough decisions—this is why the city of Newton is so financially successful," said Newton Mayor Setti Warren as he welcomed students and local citizens to Money magazine's "Take Charge Live!" event yesterday evening. Hosted in the Murray Room at Yawkey Center, Money magazine subscribers and Boston College students gathered to hear some of the magazine's editors provide investment and money management tips.
"So I went out for a run, came back, and the stock market was down 160 points," joked Craig Matters, managing editor of Money magazine. Matters and his team of editors voiced their personal opinions on the wild volatility of the market, as well as their advice on smart investing in the turbulent economy.
"If volatility is the basis of pulling out of investments, then no investments would exist. Volatility is the price all investors have to pay," said Paul Lim, senior editor at Money. Lim warned of the daring, persistent attitude one must possess when riding the crazy rollercoaster that is the stock market.
Matters described the world of stocks as "a ride that will make you nauseous but take you nowhere [in the short run]." The conversation transitioned into building portfolios, and how age plays a key role in determining one's aggressiveness in the buying of stocks relative to bonds. Lim recommended a 70-30 ratio of stocks to bonds upon reaching 40 years of age.
"Money magazine aims to help people take charge of their finances. We want the content of the magazine to exit and become part of the real world," said Brendan Ripp, publisher of Money. The "Take Charge!" event has been on the road for two years, giving advice and pronouncing financial concerns across cities that have made it into the magazine's "100 Best Places to Live" list. (Newton is considered one of the most "live-able" cities in the country.)
"Tonight, Money's advice will hit key life triggers. It is important for people of all ages to recognize the planning that goes into things like buying a house, paying loans, and buying a car," said Greg Bowerman, South Eastern executive director. Both Bowerman and Ripp expressed their desire for the audience to depart the event knowing that their fiscal futures are their responsibilities. Despite the gloomy market conditions, there are still plans to be made—people should never stop planning their futures.
Lim touched upon the significance of handling your own money.
"This is not the age where we remember the names of hedge-fund managers," he said.
In modern times, the individual should "take charge" of his money and his life, and not rely on anyone else. When asked about the importance of a college student being able to manage his finances, Ripp said, "The concept of early budgeting is vital. Once the four years are over, you are on your own—paying your own bills and buying your own food all on a starter salary."