Kalani Lautele/ Class 9: Financial Literacy

by Kalani Lautele

223. How would you gauge your level of financial literacy today?

For the past two years I have been doing my own self studies on the financial markets.  I have a good idea for how these markets functions.  Being that I aspire to be a day or swing trader, I continue to stay current and learn more about the world of finance

224. To what extent would you suppose that financial literacy relates to your probability for success upon release?

The financial literatures I read and study will be accountable for majority of my goals and success.

225. What opportunities exist for prisoners to improve their financial literacy?

There’s a lot a prisoner can do to improve their financial literacy.  A prisoner can begin by improving on his reading, writing, and math skills by reviewing the GED books.  Every prison offers GED programs so it shouldn’t be a problem getting those books.  Some of the ways I learned about the financial world was reading books, the Wall Street Journal, the Investors Business Daily, Fortune 500, watching CNBC or MSNBC.

226. How would you summarize the total costs of your imprisonment?

I’ve heard the cost to imprison a person in our country is about $30,000 a year.

227. Describe ways in which in an understanding of the stock market may help you value investment opportunities.

If you know how to value a company and do diligent fundamental analysis, you would know whether or not to purchase shares of a company.  If you discovered the company’s under valued, you’d go long or buy shares of the company in anticipation of share prices rising and the market correcting itself.

228. How would improving skills to analyze the fundamentals of a particular stock lead to becoming a better small businessman?

A businessman can use fundamental analysis to gauge the health of his company.  By doing so he can manage the company more diligently and make managing adjustments accordingly.

229. Describe the level of thought you are giving to your financial future.

I’ve thought a lot about my financial future.  It’s one of the main reasons I choose to use my time in prison to study and prepare for life after prison.  I not only thought about my children’s and my  financial future but if I’m blessed to be a grandfather someday, I’d want my grandchildren to be financially secured too.

230. Describe the level of preparations you are making to prepare for retirement.

As I learned about trading the financial markets and the type of businesses I’d own, I also looked into putting profits aside for retirement.  I have plans to put a percentage of my profits into a Roth IRA and build a municipal or treasury bond ladder for retirement.

231. In what ways would an understanding of the U.S. tax code contribute to your preparations for release?

Understanding the U.S. tax codes is relevant to investing, business, and trading.  In the financial world, any short term capital gains, meaning stocks or any derivatives held for less than a year and a day, are taxed at a higher percent.  60% of the overall short term gains are taxed at 15% while the other 40% gets taxed at 35% or vice versa.  Long term capital gains, stocks or derivatives held longer than a year and a day, are taxed at 15%.  When purchasing bonds, all gains from government bonds are tax exempt but corporate bonds are not.

232. What is your understanding of entrepreneurship?

My understanding of entrepreneurship is turning ideas into a profitable business.  Before putting those ideas into action, I must educate myself on the subjects that will support and benefit those plans.

233. What would you attribute as a primary reason for business failures in the United States, and why?

There could be many reason why a business can fail.  It could be a lack of diligence about their market or poor management.

234. If you were going to run your life as a business, how would you describe your preparation to succeed?

I would need to set goals and think out what relevant steps I can take to achieve them.  I’d also have a back up plan in case of any temporary set backs, similar to having insurance for a house or automobile.  Just as most successful businesses do, assessing myself from time to time will give me a clear picture of the direction I’m heading, whether I’m progressing according to plan and avoid having a distinct future.

235. What resources do you have available to you now?

I have my family’s love and support.  Other than that I have no financial resources awaiting my release.  I’ll leave prison with the clothes on my back and the knowledge I’ve gained while incarcerated to succeed in society.

236. What potential markets exist for you?

The automotive, financial, skilled labor, and food industry markets are potential fields I can transition into due to my experience and knowledge.

237. What level of resources do you anticipate having on the day of your release?

I’ll have at least $60.00 on me and the knowledge I gained from prison.

238. What level of earnings do you project during your first three years after your release?

During my first year after release, I project to earn enough to have purchased a vehicle.  In my second year, my earnings should be double of the previous year.  I expect my trading to account for that.  In my third year I should have bought a house and a rental property to produce passive income.

239. What level of earnings do you project during your first decade after your release?

After a decade in society from my release, my goal is to produce about $75,000.00 of income, at the minimum, each year and my net worth should be in the millions.

240. What action steps can you begin taking to increase your financial literacy?

I read the Wall Street Journal paper and review financial books I’ve read in the past.

241. What relationship do academic credentials have to enhancing financial literacy?

It wouldn’t make sense to enhance financial literacy when you lack the basic math skills.  It’s like building a house on a weak foundation.

242. In what ways would fluency with mathematical concepts and equations enhance your potential earning power or opportunities upon release?

Math is relevant skill for all businesses.  Mastering math skills can lead to numerous opportunities upon release.

243. In what ways would developing your skill with regard to reading, writing, and speaking enhance your potential earning power or opportunities upon release?

Reading and writing skills can help comprehend the business and finance worlds.  Speaking skills will be needed during moments of opportunities.

244. Describe the types of books that might broaden your financial literacy and thus help you prepare for success upon release?

Reading Futures & Options For Dummies, Commodities For Dummies, Technical Analysis For Dummies, and having a Finance Dictionary has all broaden my financial literacy.

245. What resources will you rely upon to make financial decisions in your future?

I have a plan on how I will make my financial decisions.  This plan will not jeopardize my values or financial stability.

246. To what extent do you anticipate investment decisions having a role in your future?

I know when I begin to produce income in society, a percentage of my net salary will be put into a Roth IRA and ladder of municipal bonds for 20 years.  This should accumulate to having a comfortable and early retirement.

247. Describe the resources you anticipate relying upon as you advance in age.

I will rely upon my knowledge on the financial markets, my trading skills, and businesses I plan to establish over the years.

248. What role will these resources play in sustaining your life?

My trading and business revenues will not only fund my retirement accounts and provide income to sustain a comfortable living but it will pay for my children’s college tuitions, allow me to go to college, and have a possible early retirement.

249. How will you adjust your tolerance for risk as you age?

I’m 29 years old right now so I can afford to loosen my tolerance for risk.  As I age, I will gradually lessen any exposure to high risk.

250. What influence would another problem with the criminal justice system have upon your financial stability?

I can not see myself throwing away everything I worked so hard for by having another run in with the criminal justice system.


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