It's not hard to turn thousands into millions if you'll only step back from the frenzy of the stock market and march to a different drummer. The first thing you have to observe is that most people lose money in the stock market, they don't make money. They lose money through commissions, buying on hunches, selling on emotions, and generally being 'hyperactive'.
Hyperactive investing is not how you get rich. You get rich by learning from the rocket scientists who study the financial markets and help create computer models for the billion dollar hedge funds. What do these PhD. 'quants' have to say?
There are just a few simple rules to follow to create true wealth the low-stress way. First, your returns actually do not depend on picking stocks. Your returns depend on allocating your assets the right way - over 90 percent of investment returns are determined by how investors allocate their wealth, versus picking stocks or timing the market. Asset allocation is how you divide your investment portfolio among three types of investments - stocks, bonds and cash. For example, if you want maximum growth with no increase in risk, allocate 70% to stocks. 20% to bonds and 10% to cash.
Next, now that you've picked your asset allocation, open an account with a low-cost index fund family such as Fidelity, Vanguard or T Rowe. This will keep your costs to the bare minimum, and will avoid falling into the trap of having someone else manage your money in a hyperactive manner. Instead, your money will be in funds that are designed to mimic a major market index such as the S&P 500.
Now it's time to pick your specific investments. Don't get me wrong - you're not going to pick individual stocks. Instead, we're talking about how much of your stock dollars go into domestic funds versus international, or large cap versus small cap. Similarly, you have to decide which type of bond funds you'll pick.
Lastly, rebalance your allocation of funds once every year. Some of your investments will have grown faster than the others and it's time to sell a portion off to bring them back into the target percentage allocations you chose. This way you automatically sell a portion of your winner investments when they are high - capturing the returns and putting them into lower-priced asset categories - whose turn will come in time.
Thursday, March 27, 2008
Finance Planning And Investment Advice
Everyone is trying to give advice on what to do with your money. There are numerous shows, infomercials, etc... Many charge a lot of money and make huge promises and then you find out it was a scam, bad advice, etc... I am going to show you how I averaged 187% returns on all my investments last year and over 500% for the last 3 years. I will tell you how to prosper in 2006 and make it your best year ever. And the best thing is I won't charge you a penny. This is for real and all my advice is easily verified. Make 2006 your best year ever!
1. Fire your commision based financial planner. Get a fee-based financial planner (look them up on Google). Commission based like Prudential, American Express, Allstate, etc... are only going to show you products that give them fat commisions. In otherwords you will not get the help you really need. And a lot or all of your earnings will be negated and squandered on these heavy commissions. You need a non-biased financial planner who will find you the best investments regardles of what company has them. Fire your commission based financial planner.
2. Never ever buy whole life insurance! It is basically a big money maker for the agent (commissioned financial planner) - it is their highest commission product - why do you think they push it so hard? Two words are all you need to remember - TERM LIFE! Buy term for twenty years. You will save a ton and it is dirt cheap! Put your life in gear and you won't have to worry about anything after those twenty years. Remember term life good - whole life bad.
3. Learn to stop impulse buying. If you can't afford to pay cash don't buy it. Tear up your credit cards except for one emergency card. The only purpose of a credit card is to make huge profits for the bank or store that gave you that card. If you have debts get a plan together to get them paid off. A fee based financial advisor can help you with this. Remember, accessories don't make the man, owning your own home and being financially independent does.
4. Take 10% of your disposable income and invest it - pay yourself first - it works. If you can arrange for your employer to take it out of your paycheck or otherwise make it automatic that is best. If you don't see it, you won't miss it. If your employer has a 401K program max it out. Especially if they have a percentage match contribution - thats free money. $50 here and a $100 there may not seem like much, but it will compound fast. And the larger your investments get the more they will make. Ther rich learned that they can only earn so much themselves, but their money can gro to the point where it will earn far more than you could ever earn. Get started saving and investing.
5. Switch your auto insurance to Progressive - Regardless of what the commercials say they are the lowest price, best service, and best deal - period! Do you think your local agent and those paid endorsers work for free - they get paid from your higher fees and commissions (it has to come from somewhere). Remember it adds up - an extra $200 - $800 saved per year from your insurance invested correctly will be worth $20,000 really fast.
6. Invest in DRIPs - Direct Reinvestment Plans. Many of the top companies have these and it allows you to invest for very low or no trading fees (some even give you a discount so it actually ends up paying you just to invest - I like that). Exxon Mobil (XOM) and Cross Timbers Oil Co. (XTO) are hot oil DRIP's. XTO has experienced a more than 1200% growth in the past 3 years. Buy it. You need to have a good, solid play in the oil, energy sector. They don't have the best dividends, but with their growth who cares? I also recommend buying natural gas - Piedmont Natural Gas (PNY) is the steadiest, safest player in this field. Great dividends and rock solid - it won't give you the gains of XTO but will average out some of the peaks and lows. Buy it. Remember to get diversified so find a financial DRIP like Banco Popular (BPOP) - a great spanish bank ripe for a takeover that pays great dividends.
7. For instant diversification, steady growth and solid dividends use an ETF (Exchange Traded Fund). Unlike mutual funds, etf's can be traded throughout the day just like stocks. Choose an ETF that tracks a major or minor stock index (for better diversification). I recommend IJR - it provides the best growth and dividend return of the ETF's. Buy IJR. Remember do not put more than 20% of your investment portfolio under any one stock or ETF - diversification is the key to amassing great wealth.
8. Learn that no matter how hard you work for someone else you will never be paid what you are worth. You will only be paid what you are worth when you realize this and decide to go into business for yourself. Do your homework first and pick something you like that can be turned into a moneymaker. Remember 70% of new small businesses fail mostly due to poor planning. You will make mistakes, we all do, but its how you interpret those mistakes and what you learn from them that makes the difference.
9. Whatever your religion, pray and read your bible. If you trust and have faith in God you will be provided with what you need. The steps above will provide you with financial freedom and wealth. If you let him, God will provide you with understanding, happiness, meaning to life and less stress. Studies have shown that people who pray and have faith are healthier and live longer. What good does all that money do if you can't enjoy it and help others with it? Volunteer. Be a Big Brother. Help others out. Once you have become successful please help others to do the same. Pray, read your bible and volunteer.
There you have it - if you follow this advice you will undoubtedly be well on your way to financial freedom and happiness. And there's more easily proven and helpful advice here than in all those infomercials and books you see on TV like no money down realestate, the greatest vitamin, paytrading, etc... Fire your commissioned investment advisor. Stay away from Whole Life and only purchase Term Life - you will save tons.Learn to pray and read your bible. Do yourself a favor and print this out. If you care about your friends give it to them. Put it in your email lists. If you believe in helping others and making the world a better place then pass it on to everyone you can. These ideas and stock tips will provide you and everyone else with solid gains for years and a greater chance at financial freedom. The best thing is it didn't cost you a cent.
1. Fire your commision based financial planner. Get a fee-based financial planner (look them up on Google). Commission based like Prudential, American Express, Allstate, etc... are only going to show you products that give them fat commisions. In otherwords you will not get the help you really need. And a lot or all of your earnings will be negated and squandered on these heavy commissions. You need a non-biased financial planner who will find you the best investments regardles of what company has them. Fire your commission based financial planner.
2. Never ever buy whole life insurance! It is basically a big money maker for the agent (commissioned financial planner) - it is their highest commission product - why do you think they push it so hard? Two words are all you need to remember - TERM LIFE! Buy term for twenty years. You will save a ton and it is dirt cheap! Put your life in gear and you won't have to worry about anything after those twenty years. Remember term life good - whole life bad.
3. Learn to stop impulse buying. If you can't afford to pay cash don't buy it. Tear up your credit cards except for one emergency card. The only purpose of a credit card is to make huge profits for the bank or store that gave you that card. If you have debts get a plan together to get them paid off. A fee based financial advisor can help you with this. Remember, accessories don't make the man, owning your own home and being financially independent does.
4. Take 10% of your disposable income and invest it - pay yourself first - it works. If you can arrange for your employer to take it out of your paycheck or otherwise make it automatic that is best. If you don't see it, you won't miss it. If your employer has a 401K program max it out. Especially if they have a percentage match contribution - thats free money. $50 here and a $100 there may not seem like much, but it will compound fast. And the larger your investments get the more they will make. Ther rich learned that they can only earn so much themselves, but their money can gro to the point where it will earn far more than you could ever earn. Get started saving and investing.
5. Switch your auto insurance to Progressive - Regardless of what the commercials say they are the lowest price, best service, and best deal - period! Do you think your local agent and those paid endorsers work for free - they get paid from your higher fees and commissions (it has to come from somewhere). Remember it adds up - an extra $200 - $800 saved per year from your insurance invested correctly will be worth $20,000 really fast.
6. Invest in DRIPs - Direct Reinvestment Plans. Many of the top companies have these and it allows you to invest for very low or no trading fees (some even give you a discount so it actually ends up paying you just to invest - I like that). Exxon Mobil (XOM) and Cross Timbers Oil Co. (XTO) are hot oil DRIP's. XTO has experienced a more than 1200% growth in the past 3 years. Buy it. You need to have a good, solid play in the oil, energy sector. They don't have the best dividends, but with their growth who cares? I also recommend buying natural gas - Piedmont Natural Gas (PNY) is the steadiest, safest player in this field. Great dividends and rock solid - it won't give you the gains of XTO but will average out some of the peaks and lows. Buy it. Remember to get diversified so find a financial DRIP like Banco Popular (BPOP) - a great spanish bank ripe for a takeover that pays great dividends.
7. For instant diversification, steady growth and solid dividends use an ETF (Exchange Traded Fund). Unlike mutual funds, etf's can be traded throughout the day just like stocks. Choose an ETF that tracks a major or minor stock index (for better diversification). I recommend IJR - it provides the best growth and dividend return of the ETF's. Buy IJR. Remember do not put more than 20% of your investment portfolio under any one stock or ETF - diversification is the key to amassing great wealth.
8. Learn that no matter how hard you work for someone else you will never be paid what you are worth. You will only be paid what you are worth when you realize this and decide to go into business for yourself. Do your homework first and pick something you like that can be turned into a moneymaker. Remember 70% of new small businesses fail mostly due to poor planning. You will make mistakes, we all do, but its how you interpret those mistakes and what you learn from them that makes the difference.
9. Whatever your religion, pray and read your bible. If you trust and have faith in God you will be provided with what you need. The steps above will provide you with financial freedom and wealth. If you let him, God will provide you with understanding, happiness, meaning to life and less stress. Studies have shown that people who pray and have faith are healthier and live longer. What good does all that money do if you can't enjoy it and help others with it? Volunteer. Be a Big Brother. Help others out. Once you have become successful please help others to do the same. Pray, read your bible and volunteer.
There you have it - if you follow this advice you will undoubtedly be well on your way to financial freedom and happiness. And there's more easily proven and helpful advice here than in all those infomercials and books you see on TV like no money down realestate, the greatest vitamin, paytrading, etc... Fire your commissioned investment advisor. Stay away from Whole Life and only purchase Term Life - you will save tons.Learn to pray and read your bible. Do yourself a favor and print this out. If you care about your friends give it to them. Put it in your email lists. If you believe in helping others and making the world a better place then pass it on to everyone you can. These ideas and stock tips will provide you and everyone else with solid gains for years and a greater chance at financial freedom. The best thing is it didn't cost you a cent.
Tuesday, March 25, 2008
Investor Relations
The first time I came across the phrase ‘Investor Relations’ I was not too sure what it meant. Did the company only ever accept investment from relatives? Or were relatives of the investors being catered to in some way? Or maybe it simply was a case of making your investors your relatives and the money within the family! Seriously. Try as I might, I could not get to the bottom of the investor relations phrase.
It was only later that a friend in the communications business, and financial communications at that, who told me what investor relations really meant. In short, investor relations was about maintaining good relations with your investors. If you are a mega brand with thousands of employees and hundreds of offices, you might not realize the importance of investor relations. But ask any small company with a handful of investors. And they will tell you the true worth of investor relations.
It is a well known fact that investor relations can make or break a company. Not just small ones, even bigger ones. Remember Enron? Well, that surely wasn’t a small company. Yet, when news of the non compliance within the finances of the company hit the street, the investors were among the first ones to try and pull out. Now a good investor relations division would have handled the situation better. While there is little they could have done to manage the mismanagement in the first place, there is in fact a whole lot they could have done to communicate this information to the investors.
Effective investor relations can add much more to a company than it takes from it. For one thing, it can smoothen the cash flows of a company without making it hinge on the moods and idiosyncrasies of the investors. Many companies in their first few years of having investors assume that as long as the investors get their share of the profits, they will all be happy and everything will be hunky dory. But the important thing they forget, and which every investor relations professional is trained to remember, is that investors want to feel loved and respected and want the company to be grateful to them for having invested in the company.
And if this basic need of theirs is not met, they might not really care about the financial repercussions. They might just pull the plug on their investments. Only one thing can stem such actions and that is effective investor relations.
It was only later that a friend in the communications business, and financial communications at that, who told me what investor relations really meant. In short, investor relations was about maintaining good relations with your investors. If you are a mega brand with thousands of employees and hundreds of offices, you might not realize the importance of investor relations. But ask any small company with a handful of investors. And they will tell you the true worth of investor relations.
It is a well known fact that investor relations can make or break a company. Not just small ones, even bigger ones. Remember Enron? Well, that surely wasn’t a small company. Yet, when news of the non compliance within the finances of the company hit the street, the investors were among the first ones to try and pull out. Now a good investor relations division would have handled the situation better. While there is little they could have done to manage the mismanagement in the first place, there is in fact a whole lot they could have done to communicate this information to the investors.
Effective investor relations can add much more to a company than it takes from it. For one thing, it can smoothen the cash flows of a company without making it hinge on the moods and idiosyncrasies of the investors. Many companies in their first few years of having investors assume that as long as the investors get their share of the profits, they will all be happy and everything will be hunky dory. But the important thing they forget, and which every investor relations professional is trained to remember, is that investors want to feel loved and respected and want the company to be grateful to them for having invested in the company.
And if this basic need of theirs is not met, they might not really care about the financial repercussions. They might just pull the plug on their investments. Only one thing can stem such actions and that is effective investor relations.
Extra income
Extra income
Nowadays, with inflation costs increasing and gas prices being uncertain, it is more common to come across someone who is looking for some sort of extra income. Perhaps they are looking to simply pay their bills or maybe they want to purchase an investment property for extra income. Either way, making an extra income is not always an easy task or choice.
If you are simply looking for an extra income to help make your daily survival a bit more bearable, you are not alone. The average American is looking to do that as well. While there are lots of ways to earn an extra income, not all of them are welcomed or easy. Hopefully you choose to make earn your extra income in an honest fashion and not be doing illegal activities that could find you in more distress than when you began.
There are lots of ways to get your hands on some extra income. If you're not working - get a job. If you are working, find a part-time job for any spare time that you may have. There are lots of people that manage to work full-time, raise a family and have part-time jobs as well. It may seem impossible but there are lots of people who find it necessary to survive like that and are successful in doing so. It may not be a lifestyle that you desire but hopefully, it is not a permanent situation.
Lessening your monthly bills or expenses each month could free up some money and act as an extra income for you. Cut back on things that you don't need. Is there any way to decrease your phone bill or cable costs? Can you eliminate premium channels or long distance calling? Can you use more coupons for grocery shopping? Do you really need to eat lunch out at work or can you take a lunch along and save some money each week? By keeping track of what you do spend your money on, even tiny things like a cup of coffee, can help you see where your money is going and if it is possible to cut back expenses. If you are able to do that, you may find yourself with an extra hundred dollars of extra income every month.
Clean your house. Get rid of things that you are holding onto for no reason at all. Have a yard sale and sell those clothes that you have outgrown or no longer want. Sell some things that clutter up your house and use that extra income to your advantage. Most likely, having a yard sale won't provide much extra income but at least you will be de-clutterng your house as well. Some people sell things on ebay and earn a nice living by doing that. Ask around - is there anything that friends or family wants to sell and will let you take care of for them? Be creative - earn some extra income by doing things that you enjoy and are good at.
Nowadays, with inflation costs increasing and gas prices being uncertain, it is more common to come across someone who is looking for some sort of extra income. Perhaps they are looking to simply pay their bills or maybe they want to purchase an investment property for extra income. Either way, making an extra income is not always an easy task or choice.
If you are simply looking for an extra income to help make your daily survival a bit more bearable, you are not alone. The average American is looking to do that as well. While there are lots of ways to earn an extra income, not all of them are welcomed or easy. Hopefully you choose to make earn your extra income in an honest fashion and not be doing illegal activities that could find you in more distress than when you began.
There are lots of ways to get your hands on some extra income. If you're not working - get a job. If you are working, find a part-time job for any spare time that you may have. There are lots of people that manage to work full-time, raise a family and have part-time jobs as well. It may seem impossible but there are lots of people who find it necessary to survive like that and are successful in doing so. It may not be a lifestyle that you desire but hopefully, it is not a permanent situation.
Lessening your monthly bills or expenses each month could free up some money and act as an extra income for you. Cut back on things that you don't need. Is there any way to decrease your phone bill or cable costs? Can you eliminate premium channels or long distance calling? Can you use more coupons for grocery shopping? Do you really need to eat lunch out at work or can you take a lunch along and save some money each week? By keeping track of what you do spend your money on, even tiny things like a cup of coffee, can help you see where your money is going and if it is possible to cut back expenses. If you are able to do that, you may find yourself with an extra hundred dollars of extra income every month.
Clean your house. Get rid of things that you are holding onto for no reason at all. Have a yard sale and sell those clothes that you have outgrown or no longer want. Sell some things that clutter up your house and use that extra income to your advantage. Most likely, having a yard sale won't provide much extra income but at least you will be de-clutterng your house as well. Some people sell things on ebay and earn a nice living by doing that. Ask around - is there anything that friends or family wants to sell and will let you take care of for them? Be creative - earn some extra income by doing things that you enjoy and are good at.
Tuesday, March 4, 2008
Business Growth And Development Through Investment
A section of my e-zine is entitled the Behest to Invest where I recommend tools for business growth and development. It is included because I believe striving to learn and become more is a good thing - and it is definitely good for business. There is a difference between an expense and an investment and it is very important to understand that difference.
For many people, the first thing that pops to mind when they think of the word investment is retirement funds or real estate. Those are certainly types of investments but I encourage you to adopt a much broader view. Consider this definition; "time or money spent to generate growth."
An expense is an exchange - spend money, get something. An investment is an expense that delivers a return of much greater value than the price tag. Every investment includes an expense but not every expense is an investment.
The worth of an investment is measured in ROI - a catchy buzz 'word' swarming through conversations these days. It stands for return on investment: how much you get back on an investment over and above the cost of acquisition and how long it takes for that to happen. The goal is to realize the biggest possible return in the shortest possible time frame.
ROI is an important measure of results - but not just financial results. What about the non-financial realm? What about investing to generate things like intellectual, personal or spiritual growth?
Choosing to invest in these areas is as important as striving to build a nest egg. In fact, it might be more important because such development will often result in the ability to make wiser financial and business decisions.
When it comes time to decide which classes, workshops or seminars to attend; which books, CDs or educational programs to purchase, discernment is the key.
You'll want to be sure that you are investing your time and money in things that will help you move closer to your goals by either solving a problem, teaching you something faster than it would take to learn otherwise or connecting you with people who can become success allies. When trying to decide if an expense is just an expense or if it is actually an investment, ask yourself questions like these:
- In what ways will the dollars spent help me generate revenue?
- What is the likelihood that the revenue generated will surpass the dollars invested and how long will it take for that to happen?
- What problem(s) will this help me solve?
- What will this teach me?
- And will I learn it faster than I could if I tried to figure it out on my own?
- Does the information come from a trusted and reliable source?
- Can I afford not to invest in this? In other words, would it be detrimental to me or my business to choose not to spend on this?
- Will it connect me with people and resources that will help my reach my goals faster?
One person's expense is another person's investment, so in each circumstance you'll have to decide for yourself.
When it comes to investing in your personal or business growth, ultimately, you are in charge of the ROI. Because what you know is not nearly as important as what you do with what you know.
Financial Planner And Investment Club
Ask any experienced investor and the first thing you would hear from them is that high yield investment programs are scams. Do not utter the name of the company you are talking about, the reaction will be the same.
Just think about yourself; won't you warn your friends with the same word - scam!
Just think twice - how big is big enough and still realizable?
Look around and you will definitely find some real high yield investment program where the parameter of being high is determined within the limitations of reality.
Anyone who is willing continue the same lifestyle after retirement cannot count only on company sponsored retirement plans. They must invest their money wisely so that the invested amount works as hard as they do to yield a better figure after retirement.
Survey says the more than 50% of all Americans have an IRA. And most of them are making such high yield investments mainly to lead the same lifestyle or a secured life after retirement. They do not want to depend on the company sponsored pension plan and social security to lead their retired life.
People of America had always been conscious about their retired life and for last 10 or twelve years they are taking a few extra steps to invest their money. However, a lot of people still do not understand how to plan for retirement.
Here is a regular retirement guide that is used by some average people - those who do not know the potential of gradually saved amount.
It all depends on how many years do you have until you plan for a glorious retirement? If your present age is 25 and you want to retire at 65, you have 40 years to invest on your retirement plan.
Now find out the disposable amount you have every month - something that you can save. At the same time make an estimate of how much of liquid cash you want to have after retirement. Now use any retirement calculator to find out how much you need to save every month to get that amount.
This is good enough for those who are ready to live within a fixed income throughout their retired life. In this process you need to almost diminish your optional expenses. However, you are sure to run in this process, invest on creating some assets (for example real estate) other than pension amount so that you have something to rely on in future.
However, did you notice one thing! In this process you get almost the amount you have saved for 40 years as your retirement amount. They simply yielded some gross interest and did not work up to their full potential. There could be a huge difference if only you walked a few steps to talk to a financial planner or joined an investment club to find out a better way to use your savings.
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