Finance Faculty Featured in
Local Supplement on Money Matters
Department of Finance faculty were busy in January commenting for
an annual supplement to the Champaign-Urbana
News-Gazette entitled "Money Matters."
Waspi, a lecturer, was featured in the personal investment strategies
story. Waspi noted that his investment approach tends not to vary
much from year to year. "I like to own stocks for the long
term," he commented. "I think one of the ways a person
builds wealth over time is by owning things, and one of the easiest
ways to own things is to own shares of companies."
Weisbenner, an assistant professor, was interviewed for an article
on international investments. He counseled a balanced approach,
making international investments only part of a portfolio. "When
you're investing in the overseas funds, you're also investing in
the currency," he said.
Whitford, associate professor, explained the general impact
of a depreciating dollar on international investments. "It
works exactly the opposite of tourism," he said.
Pennacchi, professor of finance, and Jeffrey
Brown, assistant professor of finance, commented for an article
on pension plans. Pennacchi advised readers to contribute the maximum
amount to their retirement funds or to work their way up to the
maximum as soon as possible. Brown counseled retirement diversification
by not owning too much company stock.
team -- Scott Weisbenner, an assistant professor, and David
Ikenberry, professor and department chair -- contributed to
an article with general investment advice. Ikenberry cautioned that
investors should not expect returns that were seen in the recent
past. "Forty-five to 47 percent returns just don't happen on
a regular basis," he commented. Weisbenner recommended an annual
review of your portfolio, wise advise that is frequently ignored
according to a recent study. He agreed with Brown about limiting
owneship of company stock.
also commented for an article on investing in mutual funds. He suggested
a four-part strategy for mutual fund investors:
funds on various websites that compare funds (Yahoo Financial,
- read about
different funds in business libraries or talk to a financial adviser
your personal risk (younger investors generally can invest in
more risky assets than an older investor)
- learn about
the fee structure and determine potential returns with the fees
supplement is not available online.