Marge is one of those things that novices find puzzling about the stock market, but the concept is actually quite simple. However, by understanding the basics of using margin accounts, determining the wisdom of using the margin can be quite a mystery.
A margin account is a traditional investment account with margin privileges.
This means that your broker has set representing a line of credit secured by stocks and bonds in your account. Often this margin credit used to buy into the same account more shares. But the bill can be borrowed against to buy real estate, make other types of investments, or just to pay personal accounts. The simple requirement is that sufficient power must be taken to maintain. Some value as collateral for the loan on the account
This is where the problem comes in. It's easy enough to maintain if all is well, that collateral level, but as the economy gets tough and you are strapped for cash, this is often the time that the market may fall. If the market goes down temporarily, your ability value decline, but the value of your debt does not change, you can get a "margin call" encounter when you can least afford it.
A margin call is similar to any other loan is called in. You must pay immediately. If you do not have the money, your stocks and bonds automatically sold to pay your debts. These compounds the problem: you end up selling your shares when they are down, usually the worst possible time. Remember, the idea is to buy when prices are down and sell when they are up. So, in addition to all other problems, the force margin loans to make. Poor investment movements In times of market crashes, a heavily margined account completely lost when the market falls only a negligible amount.
This leads to the idea of leverage, which is what represent margin accounts. Anytime you borrow to invest, you leverage your investment, or buying more than you can afford to have a fractional deposit. Because people buying stocks with borrowed money, or borrow against shares already held, this is the result. Buying a home with a mortgage is a very similar process, but since the bank does not usually call your loan if house prices dip temporarily, many of the problems mentioned above do not occur. Still, a 95% mortgage is a highly leveraged deal, and it's very easy to lose your entire investment with a small change in property prices. Even a typical 80% mortgage can wipe out the entire investment in a bad market.
Despite the many risks associated with margin or other forms of leverage, certainly there are benefits. Sure, we have the ability to lose emphasizes faster money, but you can also make money faster using these tools. If half of your power comes from the margin, you get money. Twice as fast The stock go up, your profit aggravated because you yourself twice as many shares as you would normally afford. Thusly, when the market goes down, you lose twice as fast.
Also, some people can benefit by simply having a margin line of credit is available, without making use of it at all, or by using only to be used for the short-term sales. If used judiciously by a disciplined investor, there is virtually no risk in having access to a margin account. It is the use of the bonds to bear the costs. Imagine a credit card that is never used, but the credit is available in the event of major emergencies.
In the end, Leverage simply means that your gains or losses will be multiplied. Each investor must consider him / herself the acceptable level of risk. But we are convinced that there are other risks that provide better payouts than simple use of leverage. While it is good for most investors have access to margin, it may not be wise to use often. Besides interest costs, the additional risks end up causing more harm than good.
To send comments or to learn more about Scott Pearson's Investment Advisor Services, visit
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Friday 29 November 2013
Wednesday 27 November 2013
Have You Ever Seen A Map of the World Turned Upside Down?
For those accustomed to viewing things in a certain way, it is quite disturbing. It is expected almost to collapse. Ocean from It just seems wrong. Yet the way we see the world is totally random, based largely on the way we have always seen.
When we consider things from a different perspective, it is not difficult to come to different conclusions. Normally, if we have a clear perspective of our traditional viewpoint, it seems pointless to look from a different perspective the world. However, when we see the picture is clouded and obscured, taking a different view is crucial. Otherwise, we guess.
Those who have been following this page in the past few months may have observed the beginning of a turnaround in focus. Events are leading us to a strategy that may seem surprising. A confluence of unexpected events sometimes leads the careful analyst to draw. Unexpected conclusions If you follow the logic of past issues but you can start to see. Germination of these ideas
In recent months we have realized the importance of not following the crowd like lemmings over a cliff covered. We have the rise of emerging markets like India and China discussed. We have the weakening of the dollar and the Washington spending spree with overtones of Keynes inspired false recovery.
As we dive headlong into election season, we all get a chance to hear the economic strategy of the two main candidates. If we put aside our preferences and partisanship for a moment, and just reasons to vote for any candidate, the economic policies of the two leading candidates leaves much to be desired. Neither has a particularly coherent economic policy, and while both pay lip service, nor fully understand the importance of free, unencumbered markets. The result is a leadership that gives no incentive to economic growth, regardless of the outcome of the elections. As long as either Bush or Kerry wins, we have nothing to look forward to.
It's not a great piece to imagine an America adoption of European-style protectionist legislation and increased regulation of business. This will slow down our economy. Semi-permanent Both camps seem to support this. Listening to our two main presidential candidates, and hearing no objection of both congressional delegation, one can only imagine the worst. The "Reagan Revolution" is finally over. The movement toward freedom and away from regulation has come to an end. Positive reforms that have not happened are likely to develop in the current environment.
This pessimistic outlook may be exaggerated, admitted. The U.S. economy has traditionally been able to grow through a rather restrictive regulation. However, a look back at the lackluster growth in the 1970s provides a vivid illustration of how bad a mismanaged economy can be. In any case, we must look to the U.S. in the same way we look at each country of the world. No longer can we invest here simply because it "home". Instead, we need to look globally, and evaluate which countries are most likely to grow.
If we approach this, without regard for the "home team advantage", investing in the U.S. is still worth considering, but it hardly looks like the best place in the world to get our money. In fact, the fastest growth probably true freedom increases, not decreases true freedom.
Where we consider the biggest increase in freedom worldwide. It is clearly not here. With the Patriot Act and similar laws, and not to mention a quiet increase in business regulations, we actually move in the opposite direction. (The Patriot Act, contrary to popular belief, is not just about wiretaps, but also adds tremendously unproductive paperwork and regulatory burdens for financial companies, among others. I encourage all readers to this huge legislative read before your tacit approval. )
Countries like China, where freedom is a relatively new concept, have the greatest chance of improvement, because they are so far behind. The news that China Minmetals plans to buy Noranda, Canada's largest mining company, is evidence of China's growing economic power. China is still problematic as an investment area, however, due to the willingness of the government to crack down on the population, and the lack of a tradition of "rule of law". To crack down on "abuse" of its mobile service by advertisers (under threat of government) the recent efforts of China Mobile is positive proof that free markets are not yet fully penetrated. Threats of invading Taiwan do not inspire confidence. Reducing the risk is high to invest in China, and by extension in Taiwan.
Yet the story is that investing is no longer focused on America, and there are other countries where opportunities are high and risks are not.
The recent elections in Indonesia seems to be a positive sign for the future. We anticipate a more positive environment in that huge country. It can be one of the best places to look in the near future. Also, in the same region, Australia and New Zealand seem to be making more incremental improvements. India has great promise, despite continuing problems with corruption. Turkey's recent provisional admission to
European Union gives them a strong possibility. The ability to jump headlong into a large market will provide a more powerful incentive than the brake on the growth of the restrictions on the free market, which is the cornerstone of EU membership. Thus, the growth in the short term high as Turkey rises to the level of the other members, but will ultimately slow the growth to the level of France and Germany, two of the world's slowest growing economies. Look back to the growth of Spain and Greece in the past when they joined the EU to see what you can expect. For the moment, at least, we see great potential for Turkey.
The main idea to take away is that the wise investor should start looking to find. Beyond the normal limits of the best opportunities This is not to suggest that we ignore. Traditions of free markets and free spirits A culture that supports it, is still crucial. But we see that culture begins to develop in unexpected places, and seeing some decline in house. So the time has come to add to our strategy. A new, more global dimension Opportunities may be better, and lower risks, in unexpected places.
To send comments or to learn more about Scott Pearson's Investment Management Services, visit
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
When we consider things from a different perspective, it is not difficult to come to different conclusions. Normally, if we have a clear perspective of our traditional viewpoint, it seems pointless to look from a different perspective the world. However, when we see the picture is clouded and obscured, taking a different view is crucial. Otherwise, we guess.
Those who have been following this page in the past few months may have observed the beginning of a turnaround in focus. Events are leading us to a strategy that may seem surprising. A confluence of unexpected events sometimes leads the careful analyst to draw. Unexpected conclusions If you follow the logic of past issues but you can start to see. Germination of these ideas
In recent months we have realized the importance of not following the crowd like lemmings over a cliff covered. We have the rise of emerging markets like India and China discussed. We have the weakening of the dollar and the Washington spending spree with overtones of Keynes inspired false recovery.
As we dive headlong into election season, we all get a chance to hear the economic strategy of the two main candidates. If we put aside our preferences and partisanship for a moment, and just reasons to vote for any candidate, the economic policies of the two leading candidates leaves much to be desired. Neither has a particularly coherent economic policy, and while both pay lip service, nor fully understand the importance of free, unencumbered markets. The result is a leadership that gives no incentive to economic growth, regardless of the outcome of the elections. As long as either Bush or Kerry wins, we have nothing to look forward to.
It's not a great piece to imagine an America adoption of European-style protectionist legislation and increased regulation of business. This will slow down our economy. Semi-permanent Both camps seem to support this. Listening to our two main presidential candidates, and hearing no objection of both congressional delegation, one can only imagine the worst. The "Reagan Revolution" is finally over. The movement toward freedom and away from regulation has come to an end. Positive reforms that have not happened are likely to develop in the current environment.
This pessimistic outlook may be exaggerated, admitted. The U.S. economy has traditionally been able to grow through a rather restrictive regulation. However, a look back at the lackluster growth in the 1970s provides a vivid illustration of how bad a mismanaged economy can be. In any case, we must look to the U.S. in the same way we look at each country of the world. No longer can we invest here simply because it "home". Instead, we need to look globally, and evaluate which countries are most likely to grow.
If we approach this, without regard for the "home team advantage", investing in the U.S. is still worth considering, but it hardly looks like the best place in the world to get our money. In fact, the fastest growth probably true freedom increases, not decreases true freedom.
Where we consider the biggest increase in freedom worldwide. It is clearly not here. With the Patriot Act and similar laws, and not to mention a quiet increase in business regulations, we actually move in the opposite direction. (The Patriot Act, contrary to popular belief, is not just about wiretaps, but also adds tremendously unproductive paperwork and regulatory burdens for financial companies, among others. I encourage all readers to this huge legislative read before your tacit approval. )
Countries like China, where freedom is a relatively new concept, have the greatest chance of improvement, because they are so far behind. The news that China Minmetals plans to buy Noranda, Canada's largest mining company, is evidence of China's growing economic power. China is still problematic as an investment area, however, due to the willingness of the government to crack down on the population, and the lack of a tradition of "rule of law". To crack down on "abuse" of its mobile service by advertisers (under threat of government) the recent efforts of China Mobile is positive proof that free markets are not yet fully penetrated. Threats of invading Taiwan do not inspire confidence. Reducing the risk is high to invest in China, and by extension in Taiwan.
Yet the story is that investing is no longer focused on America, and there are other countries where opportunities are high and risks are not.
The recent elections in Indonesia seems to be a positive sign for the future. We anticipate a more positive environment in that huge country. It can be one of the best places to look in the near future. Also, in the same region, Australia and New Zealand seem to be making more incremental improvements. India has great promise, despite continuing problems with corruption. Turkey's recent provisional admission to
European Union gives them a strong possibility. The ability to jump headlong into a large market will provide a more powerful incentive than the brake on the growth of the restrictions on the free market, which is the cornerstone of EU membership. Thus, the growth in the short term high as Turkey rises to the level of the other members, but will ultimately slow the growth to the level of France and Germany, two of the world's slowest growing economies. Look back to the growth of Spain and Greece in the past when they joined the EU to see what you can expect. For the moment, at least, we see great potential for Turkey.
The main idea to take away is that the wise investor should start looking to find. Beyond the normal limits of the best opportunities This is not to suggest that we ignore. Traditions of free markets and free spirits A culture that supports it, is still crucial. But we see that culture begins to develop in unexpected places, and seeing some decline in house. So the time has come to add to our strategy. A new, more global dimension Opportunities may be better, and lower risks, in unexpected places.
To send comments or to learn more about Scott Pearson's Investment Management Services, visit
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Monday 25 November 2013
Real Estate Clubs Hot Among Investors
Six or seven years ago, the stock market was booming, Internet companies that no one had ever heard of were valued at billions of dollars, and anyone and everyone was investing their money in tech stocks. Then, in 2000, the stock market crashed, the Internet companies closed their doors, investors lost billions of dollars, and life went back to normal, more or less. Five years later, tech stocks are nowhere near their 2000 peaks, but investors are salivating again. This time, they put their money in real estate, real estate and they are more successful clubs to help them.
There were investment clubs in the 1990s, where a group of people with common interests invest regularly meet, pooled their money and invested in stocks as a group. A few of them did well enough that they made national news. Now it is the equivalent property club, but in these clubs, it's every man for himself. Rather than bundling money for collective investment, its members to share. Advice, lessons learned and stories of their newest additions It is difficult to say how much real estate clubs exist in the United States, but estimates suggest that there may be thousands of them. Property prices are at record levels, particularly in the East and West coasts, homeowners have record amounts of equity in their homes, and with the stock market still crawling along, people stabbing money in real estate and help each other do.
The typical real estate club has anywhere from a handful to several hundred members, and they usually meet once a month or so to share their experiences. Those who invest all can share what they have learned with newcomers for years - how to invest, how to avoid risks and minimize losses, how the quality characteristics, and how to deal with the legal aspects of finding real estate investing. Many members are interested in learning how to prepare to buy a "fixer-upper" for the market. That specific area of investing has many potential pitfalls, and can easily turn into a money drain for those who are not careful, and stories about what to do and what to avoid are common.
Property clubs are popular across the country, and not only in areas with rapidly rising real estate prices. Those who are interested in meeting with others to learn about real estate speculation may be a local broker to ask for information. Otherwise, type "real estate club" into your favorite internet search engine, and you will undoubtedly find a club in your area.
Copyright © 2005 Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a website dedicated to debt consolidation information and Home Equity Help. net, a site dedicated to information on mortgage loans
There were investment clubs in the 1990s, where a group of people with common interests invest regularly meet, pooled their money and invested in stocks as a group. A few of them did well enough that they made national news. Now it is the equivalent property club, but in these clubs, it's every man for himself. Rather than bundling money for collective investment, its members to share. Advice, lessons learned and stories of their newest additions It is difficult to say how much real estate clubs exist in the United States, but estimates suggest that there may be thousands of them. Property prices are at record levels, particularly in the East and West coasts, homeowners have record amounts of equity in their homes, and with the stock market still crawling along, people stabbing money in real estate and help each other do.
The typical real estate club has anywhere from a handful to several hundred members, and they usually meet once a month or so to share their experiences. Those who invest all can share what they have learned with newcomers for years - how to invest, how to avoid risks and minimize losses, how the quality characteristics, and how to deal with the legal aspects of finding real estate investing. Many members are interested in learning how to prepare to buy a "fixer-upper" for the market. That specific area of investing has many potential pitfalls, and can easily turn into a money drain for those who are not careful, and stories about what to do and what to avoid are common.
Property clubs are popular across the country, and not only in areas with rapidly rising real estate prices. Those who are interested in meeting with others to learn about real estate speculation may be a local broker to ask for information. Otherwise, type "real estate club" into your favorite internet search engine, and you will undoubtedly find a club in your area.
Copyright © 2005 Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a website dedicated to debt consolidation information and Home Equity Help. net, a site dedicated to information on mortgage loans
Saturday 23 November 2013
The American Age of Inflation is Over
"The American era of inflation is complete." That says economist Robert Samuelson in his December 2 Washington Post column.
This type is common refrain. We often hear that this or that is finished - that such things only happen in the past, and that our new, more advanced time is above such mundane things. It is reminiscent of the late investing 90 statements of the end value and the futility of p / e ratio, and (can you believe it?) End of falling markets. Such nonsense is what houses of cards are built on.
It is in fact just such declarations to warn of the impending disaster that awaits us. The easiest way to know when a trend or characteristic may be on the horizon is the cacophony of experts glorify his end. When the columnists and advisors in the late 90s told us that a "new era", and that we should not worry about costly inventories, that was just to make the time.
Today, when we hear economists such as Samuelson announcing the "end" of inflation, it's time to worry. We have already felt the alignment of a number of factors that can lead to the re-emergence of inflation, but the fact that the apologists of government (economists) see the need to talk away only serves as a confirmation that the time is near . Inflation is not only apparently on the road, it's probably the door. The massive spending spree and the resulting dollar devaluation would surely lead us to that conclusion. We were expecting a certain degree of inflation for some time. But, when we start hearing of such defensive attitudes of those who do not want to hear the truth, well, it's time to start planning for it seriously.
In Samuelson's defense, his article focuses on the idea that markets have risen rapidly (since Reagan reduced inflation in 1982) due to the advantage of a lower inflation. Over the past 20 years He states that we will no longer benefit from this improvement. But his mistake is to think that things will now be "flat", and that inflation was a one-time event that will not be reviewed.
He shows a lack of political insight. As long as politicians can take advantage of the printing and publishing other people's money, we will see more inflation.
Of course, the fact that we anticipate inflation in the financial system does not mean that this will have all goods the same consequences. Certainly, our improved trade relations caused prices of some imported goods significantly. However, if the dollar drops in value, our ability will also be reduced, the import buy cheap and now, the prices of imported goods rise from their lows. Since these cheap imports are masking inflation for some time, this possibility the rate of adverse effects. Oil prices are a good example of this phenomenon. This kind of price increase is obviously uncomfortable, but is a natural consequence of the free-floating currency regime that we follow, and it's actually part of a sound mechanism for refocusing our efforts. It is not the price increases that should surprise us, and they themselves are not the problem. This is simply the result of a dollar is plummeting in value. We must realize that it is not the producers of goods to our harm, but the governments that run our currency into the ground. Ultimately, we expect to see prices rise on most goods, including both local products, as well as imports.
The result is important for investors. Rising prices will mean that your savings are worth less, and your retirement accounts to grow just to keep their value. It is many years since this nation has dealt with high inflation, and most of us have forgotten how to deal with it. Since Reagan, Volcker and Greenspan worked for Ford, and Nixon years, beat the wild inflation of the Carter, we have not had to deal with this devastating bugaboo, but today we need to plan for.
Besides the damage to our savings, inflation can make. Our debts less bothersome High inflation will push interest rates higher, however, so only borrowers with fixed rates will benefit. Others will likely experience rising interest rates on their credit cards and struggle to pay them. Never before in American history as much worn as much credit card debt in a period of high inflation. One would expect higher standard levels. Inflation will also increase housing prices without increasing value, and raise profit levels without increasing real assets. The result will be higher taxes and tougher competition. In the end, it will be a worse time for bonds, and as long as the stock will be a better place to be, will be high flying growth companies often disappoint. It is a wonderful time to think as a value investor.
To send comments about this article to learn more about Scott Pearson's Investment Management Services, visit
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
This type is common refrain. We often hear that this or that is finished - that such things only happen in the past, and that our new, more advanced time is above such mundane things. It is reminiscent of the late investing 90 statements of the end value and the futility of p / e ratio, and (can you believe it?) End of falling markets. Such nonsense is what houses of cards are built on.
It is in fact just such declarations to warn of the impending disaster that awaits us. The easiest way to know when a trend or characteristic may be on the horizon is the cacophony of experts glorify his end. When the columnists and advisors in the late 90s told us that a "new era", and that we should not worry about costly inventories, that was just to make the time.
Today, when we hear economists such as Samuelson announcing the "end" of inflation, it's time to worry. We have already felt the alignment of a number of factors that can lead to the re-emergence of inflation, but the fact that the apologists of government (economists) see the need to talk away only serves as a confirmation that the time is near . Inflation is not only apparently on the road, it's probably the door. The massive spending spree and the resulting dollar devaluation would surely lead us to that conclusion. We were expecting a certain degree of inflation for some time. But, when we start hearing of such defensive attitudes of those who do not want to hear the truth, well, it's time to start planning for it seriously.
In Samuelson's defense, his article focuses on the idea that markets have risen rapidly (since Reagan reduced inflation in 1982) due to the advantage of a lower inflation. Over the past 20 years He states that we will no longer benefit from this improvement. But his mistake is to think that things will now be "flat", and that inflation was a one-time event that will not be reviewed.
He shows a lack of political insight. As long as politicians can take advantage of the printing and publishing other people's money, we will see more inflation.
Of course, the fact that we anticipate inflation in the financial system does not mean that this will have all goods the same consequences. Certainly, our improved trade relations caused prices of some imported goods significantly. However, if the dollar drops in value, our ability will also be reduced, the import buy cheap and now, the prices of imported goods rise from their lows. Since these cheap imports are masking inflation for some time, this possibility the rate of adverse effects. Oil prices are a good example of this phenomenon. This kind of price increase is obviously uncomfortable, but is a natural consequence of the free-floating currency regime that we follow, and it's actually part of a sound mechanism for refocusing our efforts. It is not the price increases that should surprise us, and they themselves are not the problem. This is simply the result of a dollar is plummeting in value. We must realize that it is not the producers of goods to our harm, but the governments that run our currency into the ground. Ultimately, we expect to see prices rise on most goods, including both local products, as well as imports.
The result is important for investors. Rising prices will mean that your savings are worth less, and your retirement accounts to grow just to keep their value. It is many years since this nation has dealt with high inflation, and most of us have forgotten how to deal with it. Since Reagan, Volcker and Greenspan worked for Ford, and Nixon years, beat the wild inflation of the Carter, we have not had to deal with this devastating bugaboo, but today we need to plan for.
Besides the damage to our savings, inflation can make. Our debts less bothersome High inflation will push interest rates higher, however, so only borrowers with fixed rates will benefit. Others will likely experience rising interest rates on their credit cards and struggle to pay them. Never before in American history as much worn as much credit card debt in a period of high inflation. One would expect higher standard levels. Inflation will also increase housing prices without increasing value, and raise profit levels without increasing real assets. The result will be higher taxes and tougher competition. In the end, it will be a worse time for bonds, and as long as the stock will be a better place to be, will be high flying growth companies often disappoint. It is a wonderful time to think as a value investor.
To send comments about this article to learn more about Scott Pearson's Investment Management Services, visit
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Thursday 21 November 2013
When NOT to Invest
Unfortunately, many investors who have been seduced by the lure of easy money trying to "active" investors before they have the skills, resources or the right frame of mind to do that.
This is not to say that investing in stocks is extremely difficult ... It is not!
However, beating the market on a regular basis is far from simple and requires to bring an investor in the investing process a particular discipline, knowledge, and passion that enabled him to rise above the herd.
Like in any other competition, can not win! Everyone In fact, for any amount of money that the market exceeds people's money is not doing quite as well!
How can you tell if you are ready for an "active" investor to be? Not an investor who buys and sells stocks on a regular basis, but operates in the way the academics say it - someone selects its own shares. It's not like there is a licensing process or whatever. In fact, there is not even a formal course of instruction. Just like parenting, you tend to find out if you really cut out to be after you have made for a fairly substantial bet an investor
In my opinion, you should not invest in stocks:
... If you need the money within two to three years at least.
... If you do not like math.
... If you "play" the word, "gamble," or to use when you describe your investments similar speculation oriented word
... If you think indexes are more important than what companies you own.
... If you are not prepared for the volatility. Many people look at the returns for the stock market just seemed to run at the first loss! If you can not stand to lose money, you do not have the resources ... Period!
... If you think that you only buy stocks that go up. You are not perfect! No system is perfect. No provider of advice is perfect. You can - and will - lose money at some point during your investment career! You can minimize if you do your homework and be careful about the valuation, but money lost is money lost this loss.
... If you believe that the share price movements alone or you only tell something about the underlying quality of the company or the business. Too often people buy low-priced stocks with the idea that they are cheap, only to discover that they are low priced because the underlying business sucks.
... If you are not a list of why you bought and what would you write could sell. If you do not know why you bought a stock in the first place, how can you know when to sell? Bad scene. Avoid.
... If you can not tell the difference between a balance sheet and a profit and loss account. Especially if you do not even know where to find. A copy of either
... If you can make. A rudimentary assessment of the underlying quality of a company
... If you can not define any of the following words: gross margin, operating margin, profit margin, earnings per share, the cost of goods sold, buybacks, sales, receivables, inventories, cash flow estimates, depreciation, investment, market equity capitalization or valuation, shareholder, assets, liabilities, return on equity.
... If you only have one source of information about the company. I do not care if it's your best friend, a message board, or a content provider. If you can not independently check the facts, you are bound to unintentionally get cheated. No one likes to admit that he is wrong. If you are dependent on a source of information, chances are if it finally cough up the conclusion that it will be too late for a bad call
... If you can not remember the name of the main products of a company makes or major competitors of the company.
... If you do not use the Internet. Seriously people, come on! Almost all of the disadvantage that it is an individual investor from the side data was erased by the Internet. If you do not, you are at a great disadvantage to all of the other players.
It's like trying to wrestle without limbs!
Ioannis - Evangelos C. Haramis was born in Greece in 1951 and studied in Greece, the U.S. and Belgium. He has been active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the publisher of
This is not to say that investing in stocks is extremely difficult ... It is not!
However, beating the market on a regular basis is far from simple and requires to bring an investor in the investing process a particular discipline, knowledge, and passion that enabled him to rise above the herd.
Like in any other competition, can not win! Everyone In fact, for any amount of money that the market exceeds people's money is not doing quite as well!
How can you tell if you are ready for an "active" investor to be? Not an investor who buys and sells stocks on a regular basis, but operates in the way the academics say it - someone selects its own shares. It's not like there is a licensing process or whatever. In fact, there is not even a formal course of instruction. Just like parenting, you tend to find out if you really cut out to be after you have made for a fairly substantial bet an investor
In my opinion, you should not invest in stocks:
... If you need the money within two to three years at least.
... If you do not like math.
... If you "play" the word, "gamble," or to use when you describe your investments similar speculation oriented word
... If you think indexes are more important than what companies you own.
... If you are not prepared for the volatility. Many people look at the returns for the stock market just seemed to run at the first loss! If you can not stand to lose money, you do not have the resources ... Period!
... If you think that you only buy stocks that go up. You are not perfect! No system is perfect. No provider of advice is perfect. You can - and will - lose money at some point during your investment career! You can minimize if you do your homework and be careful about the valuation, but money lost is money lost this loss.
... If you believe that the share price movements alone or you only tell something about the underlying quality of the company or the business. Too often people buy low-priced stocks with the idea that they are cheap, only to discover that they are low priced because the underlying business sucks.
... If you are not a list of why you bought and what would you write could sell. If you do not know why you bought a stock in the first place, how can you know when to sell? Bad scene. Avoid.
... If you can not tell the difference between a balance sheet and a profit and loss account. Especially if you do not even know where to find. A copy of either
... If you can make. A rudimentary assessment of the underlying quality of a company
... If you can not define any of the following words: gross margin, operating margin, profit margin, earnings per share, the cost of goods sold, buybacks, sales, receivables, inventories, cash flow estimates, depreciation, investment, market equity capitalization or valuation, shareholder, assets, liabilities, return on equity.
... If you only have one source of information about the company. I do not care if it's your best friend, a message board, or a content provider. If you can not independently check the facts, you are bound to unintentionally get cheated. No one likes to admit that he is wrong. If you are dependent on a source of information, chances are if it finally cough up the conclusion that it will be too late for a bad call
... If you can not remember the name of the main products of a company makes or major competitors of the company.
... If you do not use the Internet. Seriously people, come on! Almost all of the disadvantage that it is an individual investor from the side data was erased by the Internet. If you do not, you are at a great disadvantage to all of the other players.
It's like trying to wrestle without limbs!
Ioannis - Evangelos C. Haramis was born in Greece in 1951 and studied in Greece, the U.S. and Belgium. He has been active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the publisher of
Tuesday 19 November 2013
Makin' The Sauce
Let's face it, you're on a roll. After getting down to the office of your lawyer to sign the new Living Trust and then diligently tracking down your ability to fund the trust should be congratulated. You're one of the responsible ones - 70% of people who die have not even bothered to get a will every year in the United States. Honestly, you're an inspiration to us all. But to the nomination for the Oscars financial close, could use a little work on your investment go a long way to go.
Asset Allocation someone? Does this term familiar? It belongs - financial planners, mutual funds, trust companies and stockbrokers have this drilled into our heads for the last decade or so. It is the latest and greatest. (Actually, Harry Markowitz played around with it back in the 1950s, but until the advent of powerful PCs, Modern Portfolio Theory was used only by the large institutional investors).
For the most part, asset allocation works too. As long as we keep it in perspective and understand that our principal investment objective is our "well-being" and not "optimal portfolio allocation" some asshole's, we'll be fine. Our money is meant to work for us, not vice versa.
Basically, Asset Allocation divides investments in three major asset classes: Growth, Income, and Cash. Such as making spaghetti sauce, combining the ingredients in different proportions will give us different results. Eventually we will continue with the relationship that suits us best. Do not worry about the taste of the neighbors'. They can peel their own garlic. Like any good recipe, though, it helps to have. Few guidelines
Here are three common growth allocations:
1. The Aggressive Growth Portfolio - Growth 100% / 0% Income and Cash.
In the short term, these wallets come with a warning. The volatility is all but the strongest constitutions upset. Historically, this is a long-term strategy. If you want to smooth out the ride, its time horizon of 10 years is often suggested.
Returns over the long term should be equal to the total stock market returns. The pattern of the return will also reflect the various up and down year in the market.
This should be obvious, but you should not look for much revenue from this division, because it is not going to be there. Sure, you can go to in principal for state income needs, but growth allocations generally do not like to be tampered with. If you need income, other allocations probably suit you better. This portfolio is best for people with high risk tolerance and time horizon of some duration.
2. The "Classic" Growth Portfolio - 80% growth / 20% Income and Cash.
Like the Aggressive Portfolio, this is a high priority in the long-term investment growth. It just does it, without all the extreme volatility, which of course is achieved by adding some bonds and cash to the mix. The time horizon to enjoy the results are also shortened. There may be some give in overall return, but many people will easily swap exchange for reduced volatility. Income yield usually can approach 1.5%.
This is still not for the meek, yet comes to define regular investing in the United States.
3. The Balanced Growth Portfolio - 60% growth / 40% Income and Cash.
This portfolio seeks both income and long term. Because the optimal time horizon is cut to 7 years or so, it does not demand a lifelong commitment before enjoying the rewards. Again, we continue to trade risk for return, but with an average income yield of just over 2%, we begin to shift from pure growth. The focus
For those following the "prudent person" rule, the division 60/40 is a favorite. Often seen in trusts, this model can serve both income and principal beneficiaries.
Although other models are allocated toward income, the above models can be seen the main assignments in most financial stocks. As guides to compiling your portfolio, you are familiar with how each of these models is active in determining become both risk and return.
Common Sense Investing
By Chip Dahlke, Living Trust Network
Glenn "Chip" Dahlke has 28 years of experience in investing and is one of the most important of Dahlke Financial Group. He maintains a private investment clientele and is also a Senior Fellow at The Living Trust Network and a principal with Dahlke Financial Group. He is licensed to securities transactions with persons who are residents of the following states: CA. CT, FL, GA, IL. MA, MD. ME, MI. NC, NH, NJ, NY.OR, PA, RI, VA, VT, WY.
Asset Allocation someone? Does this term familiar? It belongs - financial planners, mutual funds, trust companies and stockbrokers have this drilled into our heads for the last decade or so. It is the latest and greatest. (Actually, Harry Markowitz played around with it back in the 1950s, but until the advent of powerful PCs, Modern Portfolio Theory was used only by the large institutional investors).
For the most part, asset allocation works too. As long as we keep it in perspective and understand that our principal investment objective is our "well-being" and not "optimal portfolio allocation" some asshole's, we'll be fine. Our money is meant to work for us, not vice versa.
Basically, Asset Allocation divides investments in three major asset classes: Growth, Income, and Cash. Such as making spaghetti sauce, combining the ingredients in different proportions will give us different results. Eventually we will continue with the relationship that suits us best. Do not worry about the taste of the neighbors'. They can peel their own garlic. Like any good recipe, though, it helps to have. Few guidelines
Here are three common growth allocations:
1. The Aggressive Growth Portfolio - Growth 100% / 0% Income and Cash.
In the short term, these wallets come with a warning. The volatility is all but the strongest constitutions upset. Historically, this is a long-term strategy. If you want to smooth out the ride, its time horizon of 10 years is often suggested.
Returns over the long term should be equal to the total stock market returns. The pattern of the return will also reflect the various up and down year in the market.
This should be obvious, but you should not look for much revenue from this division, because it is not going to be there. Sure, you can go to in principal for state income needs, but growth allocations generally do not like to be tampered with. If you need income, other allocations probably suit you better. This portfolio is best for people with high risk tolerance and time horizon of some duration.
2. The "Classic" Growth Portfolio - 80% growth / 20% Income and Cash.
Like the Aggressive Portfolio, this is a high priority in the long-term investment growth. It just does it, without all the extreme volatility, which of course is achieved by adding some bonds and cash to the mix. The time horizon to enjoy the results are also shortened. There may be some give in overall return, but many people will easily swap exchange for reduced volatility. Income yield usually can approach 1.5%.
This is still not for the meek, yet comes to define regular investing in the United States.
3. The Balanced Growth Portfolio - 60% growth / 40% Income and Cash.
This portfolio seeks both income and long term. Because the optimal time horizon is cut to 7 years or so, it does not demand a lifelong commitment before enjoying the rewards. Again, we continue to trade risk for return, but with an average income yield of just over 2%, we begin to shift from pure growth. The focus
For those following the "prudent person" rule, the division 60/40 is a favorite. Often seen in trusts, this model can serve both income and principal beneficiaries.
Although other models are allocated toward income, the above models can be seen the main assignments in most financial stocks. As guides to compiling your portfolio, you are familiar with how each of these models is active in determining become both risk and return.
Common Sense Investing
By Chip Dahlke, Living Trust Network
Glenn "Chip" Dahlke has 28 years of experience in investing and is one of the most important of Dahlke Financial Group. He maintains a private investment clientele and is also a Senior Fellow at The Living Trust Network and a principal with Dahlke Financial Group. He is licensed to securities transactions with persons who are residents of the following states: CA. CT, FL, GA, IL. MA, MD. ME, MI. NC, NH, NJ, NY.OR, PA, RI, VA, VT, WY.
Sunday 17 November 2013
Finding a Broker
"Hey Joe! I need help finding a broker. I find that discount commission rates are almost the same.
So how do I choose? "
Commission is certainly not the most important factor when choosing a broker. The most important thing when choosing a brokerage firm is the slippage per trade, the difference between the stop order price and execution price.
Based on a study I saw a few years back, ten orders with five commission houses. All orders were priced in the same market at the same price, before the market opened. The difference in deviations from best to worst was over $ 800. Skidding a year for Rosenthal Collins commercial one and two contracts of the S & P was more than $ 20,000 per account. The floor broker for the majority of those transactions was Mario De Bartolo. All fills were supposedly legal. An order for 15 contracts was to sell at 45. The market took more than two minutes to fall in steps of one tick to make money even at 00, before an up tick. All 15 contracts were incredibly filled to 00. Slip on the order was $ 3,375. A week later, another order was slipped over $ 2,000, then all accounts were closed. Coffee was once the daily high and low in the opening range. I was full stop on my buy and sell stop at the high and low of the day, 360 points three times. Legalized theft. The broker can both sides of the orders have been taken. New York markets are notorious for their slippage, so the Chicago pork belly market.
Each broker is to prevent on the orders of his client such slippage is not worth as a broker. There are brokers who closely the types of fill to get the floor to their customers. If the fillings are bad, they will dump the bad floor broker and another. Bad floor brokers can be punished that way. They lose the business. A good broker will fight for his / her clients. Therefore we use the broker that we are currently using. If you want a reference, let me know. I'll be glad to give it.
Joe Ross
Trading Educators Inc.
About Joe Ross:
Joe Ross has been trading for over 47 years, and is a well known Master Trader. He has survived the ups and downs of the markets because of his adaptable trading style, low-risk approach that produces consistent profits.
Joe is the creator of the Ross hook, and has set new standards for low-risk trading set with his concept of "The Law of Charts?." Joe was a private trader for most of his life. In the middle of the 80 to shift his focus and he decided to share his knowledge. After his recovery, he founded Trading Educators in 1988 to aspiring traders how to learn. profits using his trading approach he has 12 major books on trading written. All of them have become classics and have been translated into many different languages.
Joe holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles. He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk, VA. Joe still tutors, teaches, writes, and trades regularly. Joe is still an active and integral part of Trading Educators.
So how do I choose? "
Commission is certainly not the most important factor when choosing a broker. The most important thing when choosing a brokerage firm is the slippage per trade, the difference between the stop order price and execution price.
Based on a study I saw a few years back, ten orders with five commission houses. All orders were priced in the same market at the same price, before the market opened. The difference in deviations from best to worst was over $ 800. Skidding a year for Rosenthal Collins commercial one and two contracts of the S & P was more than $ 20,000 per account. The floor broker for the majority of those transactions was Mario De Bartolo. All fills were supposedly legal. An order for 15 contracts was to sell at 45. The market took more than two minutes to fall in steps of one tick to make money even at 00, before an up tick. All 15 contracts were incredibly filled to 00. Slip on the order was $ 3,375. A week later, another order was slipped over $ 2,000, then all accounts were closed. Coffee was once the daily high and low in the opening range. I was full stop on my buy and sell stop at the high and low of the day, 360 points three times. Legalized theft. The broker can both sides of the orders have been taken. New York markets are notorious for their slippage, so the Chicago pork belly market.
Each broker is to prevent on the orders of his client such slippage is not worth as a broker. There are brokers who closely the types of fill to get the floor to their customers. If the fillings are bad, they will dump the bad floor broker and another. Bad floor brokers can be punished that way. They lose the business. A good broker will fight for his / her clients. Therefore we use the broker that we are currently using. If you want a reference, let me know. I'll be glad to give it.
Joe Ross
Trading Educators Inc.
About Joe Ross:
Joe Ross has been trading for over 47 years, and is a well known Master Trader. He has survived the ups and downs of the markets because of his adaptable trading style, low-risk approach that produces consistent profits.
Joe is the creator of the Ross hook, and has set new standards for low-risk trading set with his concept of "The Law of Charts?." Joe was a private trader for most of his life. In the middle of the 80 to shift his focus and he decided to share his knowledge. After his recovery, he founded Trading Educators in 1988 to aspiring traders how to learn. profits using his trading approach he has 12 major books on trading written. All of them have become classics and have been translated into many different languages.
Joe holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles. He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk, VA. Joe still tutors, teaches, writes, and trades regularly. Joe is still an active and integral part of Trading Educators.
Friday 15 November 2013
The Three Legged Stool
My paternal grandparents were born near Lake Como, Italy. My grandfather learned how to farm, and he did so until his death chopping wood at the age of 88. As a boy, I would walk into the barn where I watched him milking cows. Never mastered, but I liked hearing the ping of fresh milk in the galvanized bucket. To get where he needed to reach Popper would sit on a three-legged stool. This wooden stool reminds me of three legs investment for any household or business endeavor. As you know, many things come in sequence or synergy of three, even. Sneezes
First stage: investment
Although debate continues about asset allocation, no one denies the impact and the importance of diversification. Also, all investors are aware of investment risks, although many will not talk about it. Assets distributed among a diverse group of assets contributes further safety when money is exposed to the unexpected. We allowed ourselves within the matrix of large or macro-economic changes. Observing the oil price, the weakened value of the dollar, and the rise of China recommends broad asset class participation. Robert Kreitler in his book, Getting Started in Global Investing writes: "Investors focused exclusively on Wall Street are ignoring the global turnaround in the global."
Noticed the manic behavior or the volatility of the markets? Volatility is equal to investor uncertainty. Since institutions account for the majority of the stock and bond trading, even the "big boys and girls find the markets" uncertain ". Implementation of hedging strategies seeks to reduce and take advantage of the volatility. Uncertainty Hedging your bets' recognizes that when one is running up, the other is down Special trusts are commodities, currencies and real estate investment choices possible Consider Roger Gibson's Asset Allocation:.. Balancing Financial Risk
Second stage: Real Estate
My maternal grandfather never trusted the stock market. Lumber, mortar, land, mortgages represented that mattered to him. Admittedly, it worked for him. My wife tells me of a local couple who have used their home equity to purchase a "fixer-upper" that they hope to "flip" for a profit. Real estate is a net value creator for some. All investments have "boom and bust" cycles. Landlords, tenants lost to low mortgage rates. Now, the cycle change, and multi-unit housing can have positive cash flow and capital gains to provide the long term. Though finding property where you lives makes logistical sense, finding a home in places like New Bern, North Carolina and a retirement income can provide. Scott Frank tells his strategy in Buy Low, Rent Smart, Sell High
Third leg: Cash Flow
One of our children job recently changed. It was all about the cash flow. In our community, on fixed income frustrated by increasing property taxes, it's all about the cash flow. Finding a constant stream of income, even in small steps, validates the effort. From hobby to websites, entrepreneurial instincts work for many. Ask Martha Stewart or Kevin Bidwell. Each succeeds with an idea that serves users while providing potential life-time streams of income. Not many of us, such as multi-level marketing, but multi-billion dollar companies exist because many believe it. A call from a successful colleague living in India yesterday confirms this interest internationally. E-commerce transactions over $ 3 trillion in North America in 2004, and all ideas are not discovered. Want some guidelines for testing your ideas? Read The Wall Street Journal, Monday, May 9, 2005, "you have a great idea. Now what?" by Wendy Bounds.
"... A cord of three strands is not quickly broken." - Ecclesiastes 4:12 NIV (New International Version)
First stage: investment
Although debate continues about asset allocation, no one denies the impact and the importance of diversification. Also, all investors are aware of investment risks, although many will not talk about it. Assets distributed among a diverse group of assets contributes further safety when money is exposed to the unexpected. We allowed ourselves within the matrix of large or macro-economic changes. Observing the oil price, the weakened value of the dollar, and the rise of China recommends broad asset class participation. Robert Kreitler in his book, Getting Started in Global Investing writes: "Investors focused exclusively on Wall Street are ignoring the global turnaround in the global."
Noticed the manic behavior or the volatility of the markets? Volatility is equal to investor uncertainty. Since institutions account for the majority of the stock and bond trading, even the "big boys and girls find the markets" uncertain ". Implementation of hedging strategies seeks to reduce and take advantage of the volatility. Uncertainty Hedging your bets' recognizes that when one is running up, the other is down Special trusts are commodities, currencies and real estate investment choices possible Consider Roger Gibson's Asset Allocation:.. Balancing Financial Risk
Second stage: Real Estate
My maternal grandfather never trusted the stock market. Lumber, mortar, land, mortgages represented that mattered to him. Admittedly, it worked for him. My wife tells me of a local couple who have used their home equity to purchase a "fixer-upper" that they hope to "flip" for a profit. Real estate is a net value creator for some. All investments have "boom and bust" cycles. Landlords, tenants lost to low mortgage rates. Now, the cycle change, and multi-unit housing can have positive cash flow and capital gains to provide the long term. Though finding property where you lives makes logistical sense, finding a home in places like New Bern, North Carolina and a retirement income can provide. Scott Frank tells his strategy in Buy Low, Rent Smart, Sell High
Third leg: Cash Flow
One of our children job recently changed. It was all about the cash flow. In our community, on fixed income frustrated by increasing property taxes, it's all about the cash flow. Finding a constant stream of income, even in small steps, validates the effort. From hobby to websites, entrepreneurial instincts work for many. Ask Martha Stewart or Kevin Bidwell. Each succeeds with an idea that serves users while providing potential life-time streams of income. Not many of us, such as multi-level marketing, but multi-billion dollar companies exist because many believe it. A call from a successful colleague living in India yesterday confirms this interest internationally. E-commerce transactions over $ 3 trillion in North America in 2004, and all ideas are not discovered. Want some guidelines for testing your ideas? Read The Wall Street Journal, Monday, May 9, 2005, "you have a great idea. Now what?" by Wendy Bounds.
"... A cord of three strands is not quickly broken." - Ecclesiastes 4:12 NIV (New International Version)
Wednesday 13 November 2013
Going Offshore For Asset Protection
There are several important reasons why individuals and businesses consider going offshore for asset protection purposes.
Asset protection advantages the offshore world offers extend the protection of a business opening for wealth and asset enrichment switch doors through the use of offshore investment opportunities. Against excessive taxation
Until recently, creating and running a business offshore was something only done by the super rich or large companies, but today the establishment of an offshore company could not be easier and more and more people begin to see the personal benefits operating their business in this way.
Not only are there many cost-effective offshore business solutions available nowadays, but it is possible to have a fully functioning and of the shelf company to buy in countries with low or no taxes and unrestrictive legal reporting requirements and start your company trading on the same day!
The result of making the world more accessible offshore is that many more ordinary people find that they can run their businesses in an offshore location and protect that way and to benefit themselves and their assets legally.
Ideally, the primary asset protection benefits of running a business from an international position result in higher profits and security and the benefits are: -
Tax relief
Tax eats into tax assets and therefore the number of people trying to gain an advantage by going offshore.
An offshore company or trust scheme if properly structured can significantly reduce the level of an individual or business tax "and thus protect the underlying assets against eaten away by excessive and restrictive taxes.
Straight Asset Protection
Placing business or personal assets beyond the reach of an opponent or potential creditor protection straight asset. By making assets unattractive or legally unfeasible by third parties can reach straight asset protection.
Due to the nature of today's society where litigation is par for the course, many more business professionals are at greater risk of legal action against them, and many more individuals face losses in bitter divorce battles - so protect one's ability offshore -can be guarantee. a very effective way to long-term security asset
Offshore Investment Opportunities
There are many more potentially high returning investment opportunities for the coast than in their own country. Also, as many of the stocks traded outside your country of residence in the world would be a significant advantage to trade for the coast.
Greater Privacy
Developed countries are increasing the levels of supervision we are all placed under, as a result, many more people are concerned about their growing lack of privacy grow. By moving operations and assets offshore can directly help increase the privacy and confidentiality of business and financial transactions.
Of course, it goes without saying that privacy is not available people who are involved in serious criminal activities will protect.
Estate and Inheritance Tax Planning
We are all at risk of losing a significant amount of our income and estate taxes when we die. With carefully structured and well-managed offshore solutions such as trusts, it is possible for some people to reduce the obligations of their estate and thus pass to their heirs with minimal tax and liability issues. The assets of the estate
These are just the five main reasons why people want to exploit the world of offshore capabilities for asset protection purposes, there are many more potential benefits to go offshore, but they all depend on the personal situation and needs of an individual. It is essential to seek advice before considering going offshore and this article is not intended as advice to that effect professional advice.
Rhiannon Williamson is the publisher of - the online source for offshore, expatriates and international investors.
Asset protection advantages the offshore world offers extend the protection of a business opening for wealth and asset enrichment switch doors through the use of offshore investment opportunities. Against excessive taxation
Until recently, creating and running a business offshore was something only done by the super rich or large companies, but today the establishment of an offshore company could not be easier and more and more people begin to see the personal benefits operating their business in this way.
Not only are there many cost-effective offshore business solutions available nowadays, but it is possible to have a fully functioning and of the shelf company to buy in countries with low or no taxes and unrestrictive legal reporting requirements and start your company trading on the same day!
The result of making the world more accessible offshore is that many more ordinary people find that they can run their businesses in an offshore location and protect that way and to benefit themselves and their assets legally.
Ideally, the primary asset protection benefits of running a business from an international position result in higher profits and security and the benefits are: -
Tax relief
Tax eats into tax assets and therefore the number of people trying to gain an advantage by going offshore.
An offshore company or trust scheme if properly structured can significantly reduce the level of an individual or business tax "and thus protect the underlying assets against eaten away by excessive and restrictive taxes.
Straight Asset Protection
Placing business or personal assets beyond the reach of an opponent or potential creditor protection straight asset. By making assets unattractive or legally unfeasible by third parties can reach straight asset protection.
Due to the nature of today's society where litigation is par for the course, many more business professionals are at greater risk of legal action against them, and many more individuals face losses in bitter divorce battles - so protect one's ability offshore -can be guarantee. a very effective way to long-term security asset
Offshore Investment Opportunities
There are many more potentially high returning investment opportunities for the coast than in their own country. Also, as many of the stocks traded outside your country of residence in the world would be a significant advantage to trade for the coast.
Greater Privacy
Developed countries are increasing the levels of supervision we are all placed under, as a result, many more people are concerned about their growing lack of privacy grow. By moving operations and assets offshore can directly help increase the privacy and confidentiality of business and financial transactions.
Of course, it goes without saying that privacy is not available people who are involved in serious criminal activities will protect.
Estate and Inheritance Tax Planning
We are all at risk of losing a significant amount of our income and estate taxes when we die. With carefully structured and well-managed offshore solutions such as trusts, it is possible for some people to reduce the obligations of their estate and thus pass to their heirs with minimal tax and liability issues. The assets of the estate
These are just the five main reasons why people want to exploit the world of offshore capabilities for asset protection purposes, there are many more potential benefits to go offshore, but they all depend on the personal situation and needs of an individual. It is essential to seek advice before considering going offshore and this article is not intended as advice to that effect professional advice.
Rhiannon Williamson is the publisher of - the online source for offshore, expatriates and international investors.
Monday 11 November 2013
Franchise Opportunity Sellers Beware; franchise buyers lie on forms?
It seems completely absurd that franchise buyers lie about their financial position, available cash resources and capabilities to purchase a franchise. After spending 8 years setting up franchises around the nation and fielding questions, I am appalled at the lack of integrity of the average business buyer. If you are wondering why franchisors make franchise buyers fill out forms and ask lots of questions, it is because 75% or more of any franchise demand for a franchise business is misrepresentative of their reality. A franchise opportunity seller should beware of franchise buyers lying on forms.
Why do we need laws for franchise companies and yet nothing for franchise buyers or investors? It is appalling lack of integrity of the average American investor or in this case a franchise. Some of these liars wasting our precious time as the fraudulent forms a lie picture of their financial ability and business acumen. They should be thrown in prison.
Well, I think I really went off on the franchise buyers. At the time of this statement in 1999 I had just hung up on four franchise buyers that week, feeling hopeless to further conversations with someone inquiring. Was not all franchise candidates or potential buyers were true, many were competitors and even some believe it or not worked for the government as entrapment phone solicitors. A later we met was a 26 year old gay lawyer working for the Federal Trade Commission, after my visit to the FTC office in Washington DC, starred at my backside all the time?
We work very hard and franchisors can usually help a franchisee in a very small business of their own position, but we need clear answers, as their true financial picture. If we make a song and dance about how much money they have, and then we can begin the process only to discover that they really do not have as much as they said we have a franchisee who just can fail due to the lower capitalized.
The most common reason small businesses fail questioned repeatedly by the SBA, Small Business Administration and other groups is the fact that the company was under captialized. If we franchise buyers who want colorful brochures, great, but close to us. Tell us you just want someone to tell you, you're amazing and you just want someone to yell at due to your personal frustrations. If you have little money, that is, there might be a plan to help you along. Then after that is over we are serious about winning market share and having all game plan carefully can be constructed. I doubt that the U.S. military wants to fight a war with generals not bad information, pilots who do not follow orders, Navy Seal Teams that untrained, an intelligence that is lying or allies who are actually hostile and full of misinformation. To win a war you have in franchising mostly on the same team, from the beginning. It is necessary that each one understands each other targets in order to win.
Franchise buyers who want to be compared to their future business partner to finish vent fury of their previous company downsizing and tyrant boss should wait until they have better understanding of their current situation and ready to assess why they are where they are, before argumentative they are trying to buy a franchise. A franchisor who put up with such nonsense has no business franchising, because that franchisor is clearly only for the money and that short-term attitude will in the long term win-win partnership needed to dominate kill the market. A franchisor may not like that in the franchise business. Franchisees who do not lie from the beginning are good team and when that bond is broken integrity can not be more confident. Advice, if you are going to buy a franchise are upfront and honest with your future business partners, idiot. Think about it.
Why do we need laws for franchise companies and yet nothing for franchise buyers or investors? It is appalling lack of integrity of the average American investor or in this case a franchise. Some of these liars wasting our precious time as the fraudulent forms a lie picture of their financial ability and business acumen. They should be thrown in prison.
Well, I think I really went off on the franchise buyers. At the time of this statement in 1999 I had just hung up on four franchise buyers that week, feeling hopeless to further conversations with someone inquiring. Was not all franchise candidates or potential buyers were true, many were competitors and even some believe it or not worked for the government as entrapment phone solicitors. A later we met was a 26 year old gay lawyer working for the Federal Trade Commission, after my visit to the FTC office in Washington DC, starred at my backside all the time?
We work very hard and franchisors can usually help a franchisee in a very small business of their own position, but we need clear answers, as their true financial picture. If we make a song and dance about how much money they have, and then we can begin the process only to discover that they really do not have as much as they said we have a franchisee who just can fail due to the lower capitalized.
The most common reason small businesses fail questioned repeatedly by the SBA, Small Business Administration and other groups is the fact that the company was under captialized. If we franchise buyers who want colorful brochures, great, but close to us. Tell us you just want someone to tell you, you're amazing and you just want someone to yell at due to your personal frustrations. If you have little money, that is, there might be a plan to help you along. Then after that is over we are serious about winning market share and having all game plan carefully can be constructed. I doubt that the U.S. military wants to fight a war with generals not bad information, pilots who do not follow orders, Navy Seal Teams that untrained, an intelligence that is lying or allies who are actually hostile and full of misinformation. To win a war you have in franchising mostly on the same team, from the beginning. It is necessary that each one understands each other targets in order to win.
Franchise buyers who want to be compared to their future business partner to finish vent fury of their previous company downsizing and tyrant boss should wait until they have better understanding of their current situation and ready to assess why they are where they are, before argumentative they are trying to buy a franchise. A franchisor who put up with such nonsense has no business franchising, because that franchisor is clearly only for the money and that short-term attitude will in the long term win-win partnership needed to dominate kill the market. A franchisor may not like that in the franchise business. Franchisees who do not lie from the beginning are good team and when that bond is broken integrity can not be more confident. Advice, if you are going to buy a franchise are upfront and honest with your future business partners, idiot. Think about it.
Saturday 9 November 2013
Buying a Home - Your BIGGEST Investment
This column is often focused on intangible investments like stocks that a young investor might hold in their portfolios. Although this is one of the main components of an investment is not the dominant for most people. His life even for some that much further down the road of life, stocks and bonds often pale in comparison to the role a home plays in their investment.
Buying a home is a huge investment. It is easy to change the size of the overlook, because the down-payment required is relatively small. Yet we all realize that we invest the entire purchase price. However, most people do not give the investment aspect of their home a second thought, thinking of their home as nothing more than a place to hang their hats on. Since this may be the biggest investment in the first half of a person's life it would be wise to look at it less as a burden, and more like a financial decision. There is saving thousands in your retirement account if you are going to miss out on tens of thousands on your home. No point in scrambling
This leads to a series of questions about district choice, price ranges, over-extending themselves, and the trade-offs between immediate comfort and long-term wealth. There are more questions that can be covered here, so let's focus on a few key points that can help most people get an extra ten or twenty thousand dollars or more.
First, any good broker tell you that neighborhoods are crucial. What is the meaning? The three most important factors are location, location and location. But, let's expand what we learned about stocks to open door. We know that we want to buy low and sell high. So, if you want to make your home buying in a neighborhood that is improving a profit. Not only look at the current state of the district. As an investor, the trend of the district is much more important. Look for signs of deterioration or repairs to take place. Repairs of older homes can mean a neighborhood on an upswing, while homes can left in a nice neighborhood to show un-repaired. Beginning of a recession
The tax legislation relating to home ownership also offer some incredible incentives. In the past decade, the opportunities for homeowners improved, and this is especially true for those lucky enough to see their home value increase. Under current law, the profit on most single-family homes sold at a profit are completely tax, as long as you've lived in the house for two of the last five years. The tax-free amount of up to $ 250,000 (or $ 500,000 for a couple). Many people still believe that these profits are rolled in their next home, but that was the old law. Today is the time to your home to take profits because they are tax-free. My approach is to take the profits when I can, because you never know when that tax laws may change again.
For many young couples struggling to make ends meet, can this relatively new law to be a windfall and it is especially popular among those who are handy doing small repairs. Many have bought fixer-uppers, added a little paint and wallpaper, and come a few years later with a hefty profit. Let's say you've decided it's time to buy a house. If you plan to buy a $ 150,000 home would be better off with a traditional suburban home in perfect condition, or a mansion in a fashionable district near the center, paint and upgrade should take? Consider: after two years, and maybe $ 20,000 in repairs, can bring that big old house $ 350,000, netting our home entrepreneurs a cool $ 180,000 in profits, all completely tax free. On the other hand, our suburbanites luck selling for $ 180,000. Of course, even they are better off than the tenants who have moved their investment to other people's pocket.
Obviously, it's not as easy as it sounds. There are problems with building codes, neighbors, maintenance, higher heating costs, and contractor disputes. Let us not believe that money comes without any worries. Still, worth $ 180,000 is a lot of headaches, and it would take to make it right. Many part-time job Remember, this is tax-free money. How many years do you work at your regular job to make $ 180,000 after taxes? That's like $ 300,000 before taxes for many people.
Finally, the real key to success in this (or any) investment is to buy at the right price. No matter how well you fix it, and regardless of how advantageous the tax rules, a bad starting price limit your potential profit. My rule of thumb is to never pay more than half of what I think something is worth. That means I end up walking a lot of good deals away, but I also think I protected against just about any disaster that may strike. Even if you are under Murphy's Law, you will find yourself still a good chance to come out a winner.
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Buying a home is a huge investment. It is easy to change the size of the overlook, because the down-payment required is relatively small. Yet we all realize that we invest the entire purchase price. However, most people do not give the investment aspect of their home a second thought, thinking of their home as nothing more than a place to hang their hats on. Since this may be the biggest investment in the first half of a person's life it would be wise to look at it less as a burden, and more like a financial decision. There is saving thousands in your retirement account if you are going to miss out on tens of thousands on your home. No point in scrambling
This leads to a series of questions about district choice, price ranges, over-extending themselves, and the trade-offs between immediate comfort and long-term wealth. There are more questions that can be covered here, so let's focus on a few key points that can help most people get an extra ten or twenty thousand dollars or more.
First, any good broker tell you that neighborhoods are crucial. What is the meaning? The three most important factors are location, location and location. But, let's expand what we learned about stocks to open door. We know that we want to buy low and sell high. So, if you want to make your home buying in a neighborhood that is improving a profit. Not only look at the current state of the district. As an investor, the trend of the district is much more important. Look for signs of deterioration or repairs to take place. Repairs of older homes can mean a neighborhood on an upswing, while homes can left in a nice neighborhood to show un-repaired. Beginning of a recession
The tax legislation relating to home ownership also offer some incredible incentives. In the past decade, the opportunities for homeowners improved, and this is especially true for those lucky enough to see their home value increase. Under current law, the profit on most single-family homes sold at a profit are completely tax, as long as you've lived in the house for two of the last five years. The tax-free amount of up to $ 250,000 (or $ 500,000 for a couple). Many people still believe that these profits are rolled in their next home, but that was the old law. Today is the time to your home to take profits because they are tax-free. My approach is to take the profits when I can, because you never know when that tax laws may change again.
For many young couples struggling to make ends meet, can this relatively new law to be a windfall and it is especially popular among those who are handy doing small repairs. Many have bought fixer-uppers, added a little paint and wallpaper, and come a few years later with a hefty profit. Let's say you've decided it's time to buy a house. If you plan to buy a $ 150,000 home would be better off with a traditional suburban home in perfect condition, or a mansion in a fashionable district near the center, paint and upgrade should take? Consider: after two years, and maybe $ 20,000 in repairs, can bring that big old house $ 350,000, netting our home entrepreneurs a cool $ 180,000 in profits, all completely tax free. On the other hand, our suburbanites luck selling for $ 180,000. Of course, even they are better off than the tenants who have moved their investment to other people's pocket.
Obviously, it's not as easy as it sounds. There are problems with building codes, neighbors, maintenance, higher heating costs, and contractor disputes. Let us not believe that money comes without any worries. Still, worth $ 180,000 is a lot of headaches, and it would take to make it right. Many part-time job Remember, this is tax-free money. How many years do you work at your regular job to make $ 180,000 after taxes? That's like $ 300,000 before taxes for many people.
Finally, the real key to success in this (or any) investment is to buy at the right price. No matter how well you fix it, and regardless of how advantageous the tax rules, a bad starting price limit your potential profit. My rule of thumb is to never pay more than half of what I think something is worth. That means I end up walking a lot of good deals away, but I also think I protected against just about any disaster that may strike. Even if you are under Murphy's Law, you will find yourself still a good chance to come out a winner.
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Thursday 7 November 2013
How to Invest Overseas - Intelligently!
In recent months, many advisors talked a lot about the wisdom of investing abroad, but most have not really addressed the way to do that. For new investors, investing in the U.S. is challenging enough, but investing across borders is often even more daunting.
Many important issues need to be addressed, but the first step is to decide how to buy and sell. Here are some possibilities:
1. Direct purchase in foreign markets. The easiest way to invest in foreign markets by buying shares directly in the regional or national markets. This approach has some drawbacks, however. Firstly you need to buy one through an account with a broker that is registered in that country. For Canadian stocks, this is relatively simple, because connecting many U.S. brokers the exchange of Toronto. But beyond that zone leaves us with little, and expensive choices. Plus, many shares on foreign exchanges are not subject to the same reporting requirements as those on the NYSE or NASDAQ. So we can not be available to learn in this way. Enough about the financial status of many international companies Also, because they sell in foreign currency, the shares must we calculate all the rates.
2. ADR. ADRs are foreign shares (actually, certificates representing such shares) to sell in the U.S. markets. As such, they are required to provide all reporting requirements and U.S. securities laws, and thus to fulfill. Much more transparent Plus, the shares are priced in dollars, to simplify the purchase process. ADRs are the most common method for American investors to invest in foreign stocks, and include some of the names that I have recommended in the past, including Unilever, Telefonos de Mexico, America Movil, Korea Electric, Canon, Nokia, and Bancolombia , among others.
3. U.S. multinationals. An even easier way to play foreign markets to invest in U.S. companies doing business abroad. Companies like Apple, Coca-Cola, Procter & Gamble and do business around the world almost as much as they do here in the U.S.
4. International investment funds. Mutual funds simplify the process of investing abroad. A buyer may hold a fund dozens of different stocks that fund managers have examined can purchase.
5. International index funds, Exchange Traded Funds, such as iShares (formerly known as webs), the benchmark indexes of foreign markets. Buying an index makes it possible to win a broad market rather than trying to study individual stocks.
6. Closed-end Country Funds. Like index funds above country funds focus on a particular market. The difference is that these funds are actively managed, and can often be available at a discount to the value of their shares. If watches carefully, you can sometimes get great deals in these shares, which trade like stocks. Some examples are the Swiss Helvetia Fund, the Fund Brazil, or New Ireland Fund. Closed-end funds may also be available that invest across borders, such as the Emerging Markets Telecommunications Fund, the Templeton Dragon Fund, or the Latin American Discovery Fund.
In the end, there are many ways to invest internationally. Use common sense, but make sure to take advantage of the opportunity to diversify across borders. One thing is certain: there is no longer any excuse for keeping all your eggs in a (national) basket.
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Many important issues need to be addressed, but the first step is to decide how to buy and sell. Here are some possibilities:
1. Direct purchase in foreign markets. The easiest way to invest in foreign markets by buying shares directly in the regional or national markets. This approach has some drawbacks, however. Firstly you need to buy one through an account with a broker that is registered in that country. For Canadian stocks, this is relatively simple, because connecting many U.S. brokers the exchange of Toronto. But beyond that zone leaves us with little, and expensive choices. Plus, many shares on foreign exchanges are not subject to the same reporting requirements as those on the NYSE or NASDAQ. So we can not be available to learn in this way. Enough about the financial status of many international companies Also, because they sell in foreign currency, the shares must we calculate all the rates.
2. ADR. ADRs are foreign shares (actually, certificates representing such shares) to sell in the U.S. markets. As such, they are required to provide all reporting requirements and U.S. securities laws, and thus to fulfill. Much more transparent Plus, the shares are priced in dollars, to simplify the purchase process. ADRs are the most common method for American investors to invest in foreign stocks, and include some of the names that I have recommended in the past, including Unilever, Telefonos de Mexico, America Movil, Korea Electric, Canon, Nokia, and Bancolombia , among others.
3. U.S. multinationals. An even easier way to play foreign markets to invest in U.S. companies doing business abroad. Companies like Apple, Coca-Cola, Procter & Gamble and do business around the world almost as much as they do here in the U.S.
4. International investment funds. Mutual funds simplify the process of investing abroad. A buyer may hold a fund dozens of different stocks that fund managers have examined can purchase.
5. International index funds, Exchange Traded Funds, such as iShares (formerly known as webs), the benchmark indexes of foreign markets. Buying an index makes it possible to win a broad market rather than trying to study individual stocks.
6. Closed-end Country Funds. Like index funds above country funds focus on a particular market. The difference is that these funds are actively managed, and can often be available at a discount to the value of their shares. If watches carefully, you can sometimes get great deals in these shares, which trade like stocks. Some examples are the Swiss Helvetia Fund, the Fund Brazil, or New Ireland Fund. Closed-end funds may also be available that invest across borders, such as the Emerging Markets Telecommunications Fund, the Templeton Dragon Fund, or the Latin American Discovery Fund.
In the end, there are many ways to invest internationally. Use common sense, but make sure to take advantage of the opportunity to diversify across borders. One thing is certain: there is no longer any excuse for keeping all your eggs in a (national) basket.
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Tuesday 5 November 2013
It's Never too Early to Start Investing!
Remember the old adage, "never too late to start"? Well, try this on for size: when it comes to investing, it's never too early to start. Time really is of the essence here. Those of us who find ourselves between the ages of twenty and forty have to invest for retirement on our list of things to do. An important priority
Your average, middle-aged, two-income American family living paycheck-to-paycheck. And, increase his life expectancy. So how do you expect to be prepared for a pension that could span twenty, maybe thirty years? How do you keep your well being in mind the welfare of your family, especially that of your children, when choosing your investment (s)?
Ladies and gentlemen, may we present the Roth IRA account.
Sure, it's easy to think: that's nice, but the economy is in the pits. I have a hard time dealing with the present as it is. And now you want me think of investing for retirement or for my children?
Fair enough. But let out Personal Budget Crisis-mode for a moment and consider: only $ 2,000 invested in a Roth IRA for a child when he / she is born is a value of about 2 to 3 million dollars when that child reaches the age of 65 achieved year! And you do not add to the principal! Cents to another to Astounding, you say, how is that possible? That, my dear Watson, is the beauty of compound interest at work. Roth IRA's are a perfect investment tool for this situation.
Imagine the results if the resources are added on the same number of years.
Depending on your income, age and tax bracket, the Roth IRA is now proposing an initial investment of $ 4,000, and the additional investment of up to $ 4,000 per year. And, profits can be absolutely tax-free if you took 59 ½ years young! The potential for yield blows away the idea to keep in a savings account or a traditional bank Certificate of Deposit (CD). Simply money
At the risk of sounding like a bad infomercial, DO NOT WAIT ... INVEST NOW! But before you ignore us, we understand that you may have as I do not have time, or I do not know how. Problems
In fact, everything is takes is a 15-minute conversation. Talk to someone at a brokerage firm, or your financial advisor, to set up a Roth IRA account for yourself and your children. A good financial advisor will explain your options without the need for a "Investment-to-English" dictionary. Take advantage of this basic service. Surely you can spare 15 minutes, especially when it comes to $ 2,000 into 2 or 3 million dollars!
Still in college, or recently graduated and warding off student loans? Believe it or not, it is possible to save a little money and invest for the future. A university professor heard the true story of a janitor who earned about $ 15,000 a year working at a school for underprivileged children. In the 1970s the concierge who never graduated high school, has $ 1 million to the school. Deeply inspired, the professor followed investment example of the concierge and donated $ 8,000,000 at a university ... the salary of a professor.
Moral of the story: do not determine what you've been through what you deserve, but what you save. Both men understood the power of investing only a small part of his income. The results were remarkable donations seriously unobtrusive incomes.
Every day, take advantage of this great system, young investors and plans for their future. Think of a good reason why you should not do the same for yourself and for your family. Go ahead, we dare you.
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Your average, middle-aged, two-income American family living paycheck-to-paycheck. And, increase his life expectancy. So how do you expect to be prepared for a pension that could span twenty, maybe thirty years? How do you keep your well being in mind the welfare of your family, especially that of your children, when choosing your investment (s)?
Ladies and gentlemen, may we present the Roth IRA account.
Sure, it's easy to think: that's nice, but the economy is in the pits. I have a hard time dealing with the present as it is. And now you want me think of investing for retirement or for my children?
Fair enough. But let out Personal Budget Crisis-mode for a moment and consider: only $ 2,000 invested in a Roth IRA for a child when he / she is born is a value of about 2 to 3 million dollars when that child reaches the age of 65 achieved year! And you do not add to the principal! Cents to another to Astounding, you say, how is that possible? That, my dear Watson, is the beauty of compound interest at work. Roth IRA's are a perfect investment tool for this situation.
Imagine the results if the resources are added on the same number of years.
Depending on your income, age and tax bracket, the Roth IRA is now proposing an initial investment of $ 4,000, and the additional investment of up to $ 4,000 per year. And, profits can be absolutely tax-free if you took 59 ½ years young! The potential for yield blows away the idea to keep in a savings account or a traditional bank Certificate of Deposit (CD). Simply money
At the risk of sounding like a bad infomercial, DO NOT WAIT ... INVEST NOW! But before you ignore us, we understand that you may have as I do not have time, or I do not know how. Problems
In fact, everything is takes is a 15-minute conversation. Talk to someone at a brokerage firm, or your financial advisor, to set up a Roth IRA account for yourself and your children. A good financial advisor will explain your options without the need for a "Investment-to-English" dictionary. Take advantage of this basic service. Surely you can spare 15 minutes, especially when it comes to $ 2,000 into 2 or 3 million dollars!
Still in college, or recently graduated and warding off student loans? Believe it or not, it is possible to save a little money and invest for the future. A university professor heard the true story of a janitor who earned about $ 15,000 a year working at a school for underprivileged children. In the 1970s the concierge who never graduated high school, has $ 1 million to the school. Deeply inspired, the professor followed investment example of the concierge and donated $ 8,000,000 at a university ... the salary of a professor.
Moral of the story: do not determine what you've been through what you deserve, but what you save. Both men understood the power of investing only a small part of his income. The results were remarkable donations seriously unobtrusive incomes.
Every day, take advantage of this great system, young investors and plans for their future. Think of a good reason why you should not do the same for yourself and for your family. Go ahead, we dare you.
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S.
Sunday 3 November 2013
The Real Cost of a Bad Habit
What is the value of a good habit? Think of some daily habits, like brushing your teeth, or buckling a seat belt or blush. All of these habits important value to be a part of the life. Not to follow through on some habits can lead to some nasty results and those results could cost us our lives.
Now, transfer the idea of financial habits, such as saving a little money each month, or regularly adding to your 401k or IRA. You will realize that the financial value of good habits can be quite high. On the other hand, if we do not develop good financial habits, the cost can really build up over time. Most people do not even count to invest. The cost of their own bad habits Sure, we get a quick bit of excitement, but not only we will we will pay more for the same result in the long run our own lives. Difficult,
Forget the ads. And what the man in the street (you know, the one with the attitude and bling-bling) wants you to believe, no one has ever "enough" money. It is basic economics people: Remember supply and demand? We always want more bling, we always have a way to find our money we get more bling based on our borders. Of course, if we are not the limits, then we must do something to increase our borders do: better paying job, better investment career as a bank robber (just kidding), etc.
Saving more and spending less are unpopular ideas in American culture these days. Apparently, people are more concerned with how they look than with having control over their own future. But you will see that most rich people are actually very economical, that's how they got rich in the first place. Those who do not generally economical unwealthy again very soon. And believe it or not, income is not the primary success factor in achieving your goals. Many high-income people spend recklessly, that's why we always hear about previously known musicians, actors and athletes who do not have a dime to their names.
Wealth is a matter of discipline and good habits. This applies to both us and our children. In our society children get almost anything they want. But who is to give children what they need, like good habits necessary for a happy, self-managed life? Junior grows up without a sense of reality, he can not manage his life and can not live within the boundaries. What a surprise ... or is it?
Living within limits. Resources are not unlimited and this first good habit is the best. Although we should always try to expand and broaden our horizons, it makes no sense to fool ourselves into thinking the limits do not exist. Our borders Denial is our next steps more difficult, and dig the hole deeper and deeper.
Develop the right financial habits. Adding small decisions. Think: drinking two sodas, or smoking a pack of cigarettes a day can easily provide the difference between to retire when we want, and having to work until we drop. All soft drinks and cigarettes, over time up to hundreds of thousands of dollars at retirement!
Now, practicing good habits does not mean never spending more. Determine what your limits are, make a plan and spend within your own plan. You will find yourself much happier if you do - and you can still see the bling!
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S
Now, transfer the idea of financial habits, such as saving a little money each month, or regularly adding to your 401k or IRA. You will realize that the financial value of good habits can be quite high. On the other hand, if we do not develop good financial habits, the cost can really build up over time. Most people do not even count to invest. The cost of their own bad habits Sure, we get a quick bit of excitement, but not only we will we will pay more for the same result in the long run our own lives. Difficult,
Forget the ads. And what the man in the street (you know, the one with the attitude and bling-bling) wants you to believe, no one has ever "enough" money. It is basic economics people: Remember supply and demand? We always want more bling, we always have a way to find our money we get more bling based on our borders. Of course, if we are not the limits, then we must do something to increase our borders do: better paying job, better investment career as a bank robber (just kidding), etc.
Saving more and spending less are unpopular ideas in American culture these days. Apparently, people are more concerned with how they look than with having control over their own future. But you will see that most rich people are actually very economical, that's how they got rich in the first place. Those who do not generally economical unwealthy again very soon. And believe it or not, income is not the primary success factor in achieving your goals. Many high-income people spend recklessly, that's why we always hear about previously known musicians, actors and athletes who do not have a dime to their names.
Wealth is a matter of discipline and good habits. This applies to both us and our children. In our society children get almost anything they want. But who is to give children what they need, like good habits necessary for a happy, self-managed life? Junior grows up without a sense of reality, he can not manage his life and can not live within the boundaries. What a surprise ... or is it?
Living within limits. Resources are not unlimited and this first good habit is the best. Although we should always try to expand and broaden our horizons, it makes no sense to fool ourselves into thinking the limits do not exist. Our borders Denial is our next steps more difficult, and dig the hole deeper and deeper.
Develop the right financial habits. Adding small decisions. Think: drinking two sodas, or smoking a pack of cigarettes a day can easily provide the difference between to retire when we want, and having to work until we drop. All soft drinks and cigarettes, over time up to hundreds of thousands of dollars at retirement!
Now, practicing good habits does not mean never spending more. Determine what your limits are, make a plan and spend within your own plan. You will find yourself much happier if you do - and you can still see the bling!
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S
Saturday 2 November 2013
Investing in World Markets
There are many different ways to invest in world markets: stocks, bonds, mutual funds, options, commodities or currencies. Sometimes these options as investment instruments (or method of investment). Some of these vehicles can fit your personal characteristics or lifestyle better than others. The point is that no matter the method you choose to invest, the goal is always to get your money to work so it earns you a profit. Even though this is a simple idea, it is the main idea that you must understand.
Second important idea that you need to understand is that investing is not about gambling or betting. It's about money management, compounding and psychology. Investing in the world, of course, worth learning. The rewards will far outweigh the effort required.
It is impossible to provide all information about investing in a site like this would lead to a huge library of tens of millions of pages in the accumulate. Heyou to books to read, find video courses to watch for your personal financial education
Typical faults to be avoided
1. You should not allow banks or investment professionals to push in the direction that you do not understand your money. Nobody knows better than you what is best for you and your money.
2. Many investors fail because they invest "on the fly", without the benefit of a predetermined trading plan. It is essential to a complete, well thought plan of action before you start investing.
3. Trade against a trend. Trend is your friend. Investors who ignore evolution when trying peaks and bottoms of a stock pick are rarely successful.
4. Not adhering to a money management. Remember, money management and asset allocation strategy has significant impact on your investment success.
5. Lack of discipline. It is essential to have a list of rules that must be strictly followed.
Written by Helen Peshkova,
is one of the first business oriented education portals. It is the leading online business information network for millionaires. The purpose of RichTrack.com is to present business content in a professional, useful and practical format that helps you rich.
Second important idea that you need to understand is that investing is not about gambling or betting. It's about money management, compounding and psychology. Investing in the world, of course, worth learning. The rewards will far outweigh the effort required.
It is impossible to provide all information about investing in a site like this would lead to a huge library of tens of millions of pages in the accumulate. Heyou to books to read, find video courses to watch for your personal financial education
Typical faults to be avoided
1. You should not allow banks or investment professionals to push in the direction that you do not understand your money. Nobody knows better than you what is best for you and your money.
2. Many investors fail because they invest "on the fly", without the benefit of a predetermined trading plan. It is essential to a complete, well thought plan of action before you start investing.
3. Trade against a trend. Trend is your friend. Investors who ignore evolution when trying peaks and bottoms of a stock pick are rarely successful.
4. Not adhering to a money management. Remember, money management and asset allocation strategy has significant impact on your investment success.
5. Lack of discipline. It is essential to have a list of rules that must be strictly followed.
Written by Helen Peshkova,
is one of the first business oriented education portals. It is the leading online business information network for millionaires. The purpose of RichTrack.com is to present business content in a professional, useful and practical format that helps you rich.
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