Individual vs. Institutional Investors

THE MARKETS

A difference of opinion.

Broadly speaking, there are two types of investors: individual investors and institutional investors.

Individual investors invest to grow their personal wealth. This group of investors often works with financial advisors as they pursue their financial goals. Individual investors on average tend to invest smaller amounts of money than institutional investors do.

Institutional investors are large investors, such as banks, mutual funds, exchange-traded funds, college endowments, state pensions, insurance companies, and other organizations that buy and sell investments, usually in very large volumes, to meet the goals of the group for whom they’re investing.

If you are looking for income, I have many options that are paying over 5% which have adjustable rates and are completely liquid. Review your checking accounts and see if you are holding too much cash and not getting paid on it.

LET’S TALK ABOUT THE WEATHER

Last week, many parts of the United States set new records for low temperatures as an arctic blast swept across the country. Antelope Creek, North Dakota, saw 45 degrees below zero, which made the low in Austin, Texas (29 degrees) seem downright balmy.

In many areas, schools closed — not because of snow, but because of the bitter cold. Meanwhile, up in Alaska, the Iditarod dog sled race moved north from Anchorage to Fairbanks due to a lack of snow and unobligingly warm temperatures.

See what you know about historical weather events in the United States by taking this brief quiz:

1. What was the coldest temperature ever recorded in the United States?
   • A) 80 degrees below zero in Prospect Creek, Alaska
   • B) 70 degrees below zero in Rogers Pass, Montana
   • C) 60 degrees below zero in Tower, Minnesota
   • D) 45 degrees below zero in Minot, North Dakota
2. In 1974, the U.S. experienced the Super Tornado Outbreak. During the outbreak, two F5 tornadoes struck Tanner, Alabama, in the same 24-hour period. How many tornadoes occurred across the United States during the Outbreak?
   • A) 47 across 7 states
   • B) 98 across 25 states
   • C) 148 across 13 states
   • D) 247 across 21 states
3. Approximately, how much do Super Bowl tickets cost this year?
   • A) Ohio River
   • B) Mississippi River
   • C) Colorado River
   • D) Platte River
4. In 2011, a massive dust storm encompassed Phoenix, Arizona. The 6,000-foot-high wall of dust stretched more than 100 miles long and traveled 150 miles, reported Gabe Trujillo of Channel 12 News. What are these enormous dust storms called?
   • A) Derechos
   • B) Lizard stranglers
   • C) Haboobs
   • D) Drouths

By the end of last week, temperatures were warming. In some places, temperature swings of 90 degrees or more were anticipated. That’s sure to inspire thoughts of spring blooming!

Focus – Think About It

IMPORTANT REMINDER: We have an income fund that adjusts its rate on a regular basis that can keep you ahead of inflation and is paying 6.75% on a monthly basis. This would be tax-free in your IRA accounts. Let me know if you have an interest in a possible placement.