Tips to Help Your Aging Clients to Be Healthy All Year Long

Tips to Help Your Aging Clients to Be Healthy All Year Long

It's difficult to believe that a new year has crept up on us again. However, it feels more like it slammed against us with little warning, don't you agree? But for many of us, we may look forward to a fresh start. With every new year, some of us may ask, "Is there anything I can do to help to make my new year healthy and happy?"

You could be on the right track now, but feel you'd like to take it up a notch to make it your best. If you're doing your best now but feel something is missing, check out the following tips that can make a big difference in your life, even though they are small.

Pay attention to attitude


If you maintain a positive attitude, studies confirm that happy people get sick less often. Stress and feelings of "in the dumps" lead to illness, but in the large part, right attitudes protect us from major chronic diseases like heart trouble, diabetes, and potentially cancer as well. Bottom line--put your energy into staying healthy.

Tips to stay healthier
 

  • Laugh more often - research shows that it can lower stress hormones and increase immune cells and infection-fighting antibodies. The results offer an improved resistance to fight illnesses. Laughing triggers endorphins, the body's natural feel-good chemicals which promotes an overall sense of well-being.
  • Eat right - consume more veggies and fruits and increase those rich in fiber. They will reduce the risk of heart disease, obesity, and type 2 diabetes.Visit the doctor and the dentist regularly -- the dentist visits will ensure your mouth is as healthy as possible, while regular exams with your doctor helps identify risk factors and problems before they become severe.
  • Get plenty of sleep - a restful slumber makes you feel better, but its importance goes way beyond boosting the mood. Adequate sleep is part of a healthy lifestyle and can benefit your heart, weight, mind, and more.Go outside and get some sun - sunlight equips the body with vitamin D3 that can last throughout the winter, it boosts the production of vitamin D, which leads to higher serotonin levels.
  • Limit your alcohol intake - cutting back on alcoholic beverages can help your general well-being and you'll notice feeling better in the mornings. And you'll gain more energy as well.
  • Don't over indulge - studies show that a reduction in calorie intake stimulates longevity.
  • Read more - it's good for the brain. Plus, studies show that reading keeps you mentally stimulated and slow the progress or even prevent Alzheimer's and dementia.Stay connected with good friends - friendships Increase your sense of belonging and purpose, boosts happiness, and reduces your stress.
  • Drink more water - it helps keep the body hydrated, which is essential to every cell. The body needs water to function properly.Get exercise - regular fitness decreases the risk of strokes and heart disease. And a stronger heart equals better circulation.
     

Be happy!

The tips should be easy to follow through. Make them a habit, and you'll obtain a higher quality of life.

Carol Marak
Aging
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Carol Marak earned a Fundamentals of Gerontology Certificate from the USC Davis School of Gerontology and advocates on behalf of older adults and family caregivers. She simpli ... Click for full bio

Alternative Beta Strategies: Alpha/Beta Separation Comes to Hedge Funds

Alternative Beta Strategies: Alpha/Beta Separation Comes to Hedge Funds

Written by: Yazann Romahi, Chief Investment Officer of Quantitative Beta Strategies, J.P. Morgan Asset Management

A quiet revolution is taking place in the alternatives world. The idea of alpha/beta separation has finally made its way from traditional to alternative investing. This development brings with it a more transparent, liquid and cost-effective approach to accessing the “alternative beta” component of hedge fund return and a new means for benchmarking hedge fund managers.

The good news for investors is that the separation of hedge fund return into its components—rules-based alternative beta and active manager alpha—has the potential to shift investing as we know it. These advancements could democratize hedge funds and, at long last, make what are essentially hedge fund strategies available to all investors—even those who aren’t willing to hand over the hefty fees often associated with hedge fund investing.

A benchmark for alternatives


With respect to traditional equity investing, we have long accepted the idea that there is a market return, or beta—but this hasn’t always been the case. Investors used to assume that to make money in the stock markets, one needed to buy the right stocks and avoid the wrong ones. The idea of a market return independent of skilled stock selection seemed ridiculous to most market participants. Yet today, we would never invest in an active manager’s strategy without benchmarking it against its respective beta.

Interestingly, hedge fund managers have been held to a different standard. Investors have been much more willing to accept the notion that hedge fund strategy returns are pure alpha, and that their investment returns are based entirely on the skill of the fund manager. That notion explains why investors have been willing to accept a “two and twenty” fee structure just to access what has been perceived as one of the most sophisticated and powerful investment vehicles available.

In thinking about the concept of beta, consider its precise definition—the return achievable by taking on a systematic exposure to an economically compensated risk. In traditional long only equity investing, the traditional market beta has been further refined as a number of other risks have been identified that are commonly referred to as “strategic beta.” These include factors such as value, momentum, quality and size. But no one ever said that these risk factors must be long-only.

Over the past decade, as more hedge fund data became available, academics began to disaggregate hedge fund return into two components: compensation for a systematic exposure to a long/short type of risk (alternative beta), and an unexplained “manager alpha.” What they found is that a significant portion of hedge fund return can be attributed to alternative beta. That fact has turned the tables on how we look at hedge fund return. With the introduction of the alternative beta concept, hedge fund managers will have to state their results, not just in terms of total return, but also as excess return over an alternative beta benchmark.

Merger arbitrage—an alternative beta example


The merger arbitrage hedge fund style can be used to illustrate the alternative beta concept. In the case of merger arbitrage, the beta strategy would be the systematic process of going long every target company, while shorting its acquirer. There is an inherent return to this strategy because the target stock price typically does not immediately rise to the offer price upon the deal’s announcement. This creates an opportunity to purchase the stock at a discount prior to the deal’s completion. The premium that remains is compensation to the investor for bearing the risk that the deal may fail.

Active merger arbitrage managers can add value by choosing to invest in some deals while avoiding others. Therefore, their benchmark should be the “enter every deal” strategy, not cash. In fact, the beta strategy explains the majority of the return to the average merger arbitrage hedge fund. And it doesn’t stop there. Other hedge fund styles that can be explained using alternative beta include equity long/short, global macro, and event driven. Note that the beta strategy invests in the same securities, using the same long/short techniques as the hedge fund strategy. The difference is that the beta strategy is a rules-based version that can become the benchmark for the hedge fund strategy. After all, if a hedge fund strategy cannot beat its respective rules-based benchmark (net of fees), an investor may be wiser to stick to the beta strategy.

Implications for investors


What does all this mean for the end investor? Hedge funds have traditionally been the domain of sophisticated investors willing to pay high fees and sacrifice liquidity. Alpha/beta separation in the hedge fund world means that investors can finally choose whether to buy the active version of the hedge fund strategy or opt for the passive (beta) version. Hedge fund strategies can be effective portfolio diversifiers. Now, through alternative beta, virtually all investors can access what are essentially hedge fund strategies in a low cost, liquid, and fully transparent form. For investors who haven’t had prior access to hedge funds, this could be welcome news. Not only can investors look at an active hedge fund manager’s strategy and determine how it has done compared to the systematic beta equivalent, they can also invest in ETFs that encapsulate these systematic strategies.

When looking at one’s traditional balanced portfolio today, there are plenty of questions around whether the fixed income portion will achieve the same level of diversification it has provided in the past. After all, with yields still low, there is little income return. Additionally, the capital gains that came from interest rate declines are likely to reverse. With fixed income unlikely to adequately fulfill its traditional role in portfolios, there is a need to find an alternative source of diversification. This is where alternative strategies may help. For investors seeking to access diversifying strategies in liquid and low-cost vehicles, alternative beta strategies in ETF form are one option.

Looking for an alternative to enhance diversification in your portfolio?


For investors looking to further diversify their overall portfolio, JPMorgan Diversified Alternatives ETF (JPHF) seeks to increase diversification and reduce overall portfolio volatility through direct, diversified exposure to hedge fund strategies using a bottom-up, rules-based approach.

Learn more about JPHF and J.P. Morgan’s suite of ETFs here

DISCLOSURE

Call 1-844-4JPM-ETF or visit www.jpmorganetfs.com to obtain a prospectus. Carefully consider the investment objectives and risks as well as charges and expenses of the ETF before investing. The summary and full prospectuses contain this and other information about the ETF. Read them carefully before investing.
J.P. Morgan Asset Management
Empowering Better Decisions
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See how ETFs differ from other investment vehicles, learn how to evaluate them, and discover how ETFs can be used effectively to achieve a diversity of investment strategies. ... Click for full bio