By Dr. Steve Sjuggerud
Crashing U.S. home prices... a falling dollar... Who's going to save us?
Brits! Brits? Yes, Brits... like Susan Wakefield and Pamela Westhead...
They live in Lytham St. Annes in England, but they're in Orlando, shopping for the holidays. "It's at least half the price of what we pay at home," they told the Orlando Sentinel last week. They're going home with four suitcases full of purchases. It's not just Susan and Pamela, of course...
"It's all U.K., all the time," Jackie Young told the newspaper. Jackie is a director at Prime-Outlets International – a big mall near the Orlando airport and attractions. "The influx we've seen in the last three to four months has been phenomenal," she says.
The mall estimates 80% of its customers now are foreigners. The malls literally have busloads of foreigners dropped off every day, just to take advantage of the weak U.S. dollar.I can attest to it... Last week I was in Orlando, as my dad is currently in the hospital there. I took my mom out to do some Christmas shopping and get her mind off of my dad for a little while. Bad idea...
The parking lots were full. And the shopping aisles were worse than the parking lots. If a shopper didn't have an English accent, he had a Latin one.
The paper ran a photo of Antonio Greige, in town from Venezuela, with six shopping bags in his hands. "The prices are good," he says.
I'm sure they are – even the normally junky Brazilian currency has roughly doubled in value versus the dollar in the last five years.
Brits and Latin Americans aren't just buying "stuff" in Florida. They're buying property, too...
"My things are so cheap here in the States!" a middle-aged Scottish woman told analyst Steve Leuthold. "We're going shopping... and we're looking for a nice, warm winter vacation home," her husband added. "The prices are less than half of those in Spain. And we have a nonstop service from Edinburgh. Our friends just bought a wonderful condo there."
My friend, this is how it works...
What we're seeing is quite normal. It's people acting rationally.
For $400,000, Brits can get an average home back in England. But thanks to the crash in the dollar and falling home prices, $400,000 goes a very long way for Brits in Florida these days. And the condo they really want seems like it's practically free right now – probably less than 100,000 British pounds.
Every time a Brit buys a property in America, or a fancy purse at a mall, the dollar rises a hair and the British pound falls a hair. The amount of change is obviously infinitesimally small. But when you have busloads and busloads of tourists selling their currencies to buy dollars so they can spend them in the U.S. economy, it all adds up.
Okay, maybe the Brits (and Latin Americans, and Europeans) won't save the U.S. economy by buying handbags and condos.
But they will make a difference. (Heck, they probably will save Florida.)
When planeloads of people come to Florida to shop, we should be darn close to a bottom in the U.S. dollar. And as Orlando can tell you, we're definitely seeing that now...
Sunday, December 16, 2007
Friday, November 30, 2007
How Good Is Offshore Banking
By Wain Roy
The concept of establishing a second residence in some other part of the world is fiercely catching on the mass fancies today. It’s often considered a great step and fall-back option for any future unforeseen necessity. Quite in keeping with its pace, offshore banking has made its presence felt among the young and intelligent of 21st century. Many are taking to banking offshore while enjoying changing places at the blink of an eye. But the question remains, how good is that? Does offshore banking really live up to all the promises it bears?
Well, to say the least, offshore banking has immense potential. If you’re one of those who change job or the city quite frequently, then this perhaps fits your bill the best. You can keep your bank constant even if you’re on the move. Wherever you go, you will always have an access to your money and your bank account through offshore banking. If you use any specific bank in one country, you may find it difficult to access your money abroad or may have to unwillingly pay charges on every transaction. You may also not be able to reach your account in some countries. Offshore banking takes care of all these and ensures your money anytime anywhere.
This kind of banking has become popular also because it exempts you from paying high taxes. Moving your money to another bank in another country other than your native place can save you a lot of tax. This is quite a legal way of avoiding taxes, given that you first abide by the tax laws of your own country.
Then there is the benefit of being accessible to the world market through an offshore bank account. You will be able to invest in more number of products and services across the world if you do offshore banking.
Alternatively, you may just use this as a savings account. Although you can use an offshore account to make big investments like buying insurance or loans, you may choose not to go that way and keep it just as a source of readily available cash in any part of the world.
However, this mode of banking is not free of risks, no matter how little they are. You first need to ensure that you are abiding by the tax laws of your country. Take legal advice before you commit to an offshore account or set up an offshore company You will also be required to deposit a big sum to have this account and your money can be at stake if anything goes wrong in that country. So think and analyze carefully before going for it. And when you are cent percent sure, your offshore bank account can do you a lot of good.
Wain Roy is an internet marketing professional expert in various industries like real estate, web design, finance, medical tourism, Canadian pharmacy drug and offshore banking
Article Source: http://EzineArticles.com/?expert=Wain_Roy
The concept of establishing a second residence in some other part of the world is fiercely catching on the mass fancies today. It’s often considered a great step and fall-back option for any future unforeseen necessity. Quite in keeping with its pace, offshore banking has made its presence felt among the young and intelligent of 21st century. Many are taking to banking offshore while enjoying changing places at the blink of an eye. But the question remains, how good is that? Does offshore banking really live up to all the promises it bears?
Well, to say the least, offshore banking has immense potential. If you’re one of those who change job or the city quite frequently, then this perhaps fits your bill the best. You can keep your bank constant even if you’re on the move. Wherever you go, you will always have an access to your money and your bank account through offshore banking. If you use any specific bank in one country, you may find it difficult to access your money abroad or may have to unwillingly pay charges on every transaction. You may also not be able to reach your account in some countries. Offshore banking takes care of all these and ensures your money anytime anywhere.
This kind of banking has become popular also because it exempts you from paying high taxes. Moving your money to another bank in another country other than your native place can save you a lot of tax. This is quite a legal way of avoiding taxes, given that you first abide by the tax laws of your own country.
Then there is the benefit of being accessible to the world market through an offshore bank account. You will be able to invest in more number of products and services across the world if you do offshore banking.
Alternatively, you may just use this as a savings account. Although you can use an offshore account to make big investments like buying insurance or loans, you may choose not to go that way and keep it just as a source of readily available cash in any part of the world.
However, this mode of banking is not free of risks, no matter how little they are. You first need to ensure that you are abiding by the tax laws of your country. Take legal advice before you commit to an offshore account or set up an offshore company You will also be required to deposit a big sum to have this account and your money can be at stake if anything goes wrong in that country. So think and analyze carefully before going for it. And when you are cent percent sure, your offshore bank account can do you a lot of good.
Wain Roy is an internet marketing professional expert in various industries like real estate, web design, finance, medical tourism, Canadian pharmacy drug and offshore banking
Article Source: http://EzineArticles.com/?expert=Wain_Roy
Tuesday, October 16, 2007
How an Unemployed Phoenix Man got the Gov't to pay for his Palm Beach Mansion...
A penthouse on the French Riviera...
And a multi-million dollar investment account
The amazing secret you can use – beginning today – revealed in the brief below...
Dear Reader,
I live and work in San Jose, Costa Rica. And I'm writing today to introduce you to one of the most unusual – and richest – men you will ever meet.
His name is Chris Weber. If you walked by him on the street, you would never guess he is a multi-millionaire...
You see, Chris is about average height, with dark-brown hair. He doesn't wear fancy clothes. And he spends more time in the library than boutiques or fancy restaurants.
Chris, in short, leads a very simple life. He reads more books in a year than I've read in my lifetime (and he's seen more movies than anyone I know).
His only "luxury" is travel. You see, Chris spends much of every year traveling the world. In the last year alone, he's spent time in Thailand, Malaysia, Japan, Korea, France, Andorra, Italy, England, Switzerland, Turkey, Greece, Nicaragua, and a high-speed boat trip to the island of Crete.
That may not seem unusual for a multi-millionaire...
But what is unusual about Chris Weber is this: He started his fortune at age 16 – with just $650 he saved from his paper route.
In fact, that paper route is the only "real job" he's ever had.
By the time I met Chris, in 1980, he was a 23-year-old millionaire. Since then, he's grown his wealth many, many times over...
So how, exactly, does an ordinary-looking guy from the suburbs of Phoenix build a multimillion dollar bank account – without a job, a business, an inheritance, or lottery winnings?
And how does he plan to add even more to his bank account this year?
That's the amazing secret I'm going to reveal in this letter...
And you'll also discover how I believe you can do the same, beginning right away...
How the rich get richer – thanks to the government
Most people think that the stock market is the best way to make a lot of money in America...
But the truth is, governments around the world – including the U.S. – will basically hand out huge sums of money... to those who are savvy enough to know about the right programs.
You see, Chris learned early on how the rich really get richer: That government self-interest creates the market's safest and most profitable opportunities.
At any given time, for example, governments around the world make economic moves for any number of reasons: To attract more money into their economies... to make their exports cheaper to buy... to prevent inflation... or simply boost their stock markets.
In other words, all you have to do is follow what governments do with their interest rates... with their currencies... and their economies...
And if you buy the right investment vehicle, you can make a lot of money, safely, almost every time you invest.
That's what Chris Weber has been doing for the past 35 years...
What's amazing to me is that Chris is willing to show you exactly how he does it.
You can do the exact same thing Chris is doing, at the exact same time... and on a percentage basis, make the exact same gains.
Let me show you an example of what I mean...
But the truth is, governments around the world – including the U.S. – will basically hand out huge sums of money... to those who are savvy enough to know about the right programs.
You see, Chris learned early on how the rich really get richer: That government self-interest creates the market's safest and most profitable opportunities.
At any given time, for example, governments around the world make economic moves for any number of reasons: To attract more money into their economies... to make their exports cheaper to buy... to prevent inflation... or simply boost their stock markets.
In other words, all you have to do is follow what governments do with their interest rates... with their currencies... and their economies...
And if you buy the right investment vehicle, you can make a lot of money, safely, almost every time you invest.
That's what Chris Weber has been doing for the past 35 years...
What's amazing to me is that Chris is willing to show you exactly how he does it.
You can do the exact same thing Chris is doing, at the exact same time... and on a percentage basis, make the exact same gains.
Let me show you an example of what I mean...
How a government-backed savings account can make you 1,700%
Chris discovered one super-safe government-backed investment idea in the 1970s, right after high school...
And he's been using it to grow his fortune every year since.
It is one of the simplest and safest ways you will ever see to make double-digit gains on your cash every year...
And it is literally as easy as opening a savings account.
Chris calls this strategy Max Yield. In his words:
And he's been using it to grow his fortune every year since.
It is one of the simplest and safest ways you will ever see to make double-digit gains on your cash every year...
And it is literally as easy as opening a savings account.
Chris calls this strategy Max Yield. In his words:
"Max Yield can help you grow a $50,000 initial investment in cash into more than $220,000 almost 10 times faster than if you placed your capital into super-safe one year U.S CD (at today's rates).
"Best of all, this strategy has averaged a double-digit return on cash for 33 years, and it has done so with all of the safety and security of having your money in the bank."
That's right... no stocks, no mutual funds, no real estate – just bank savings accounts that pay you double-digit returns, year after year.
Here's how Chris' Max Yield strategy works:
Every year, on New Year's Day, Chris looks around at the world's major governments... and finds the one paying the highest interest rate on their currency. Then, through a simple bank savings account, he deposits money into that government's currency, for one year.
It may sound hard to believe that you can make so much money in a savings account...
But starting with just $10,000, Chris made 10% on his cash his first year using Max Yield.
By Year 2, he was up 32%...
By Year 5, Chris' initial $10,000 was up 94%... and a decade and a half later, the Max Yield strategy had made Chris 1,700% profits.
His original $10,000 was now worth more than $182,000 – all from keeping his money in the bank.
When you use Chris' Max Yield strategy, you can profit in two ways:
Here's how Chris' Max Yield strategy works:
Every year, on New Year's Day, Chris looks around at the world's major governments... and finds the one paying the highest interest rate on their currency. Then, through a simple bank savings account, he deposits money into that government's currency, for one year.
It may sound hard to believe that you can make so much money in a savings account...
But starting with just $10,000, Chris made 10% on his cash his first year using Max Yield.
By Year 2, he was up 32%...
By Year 5, Chris' initial $10,000 was up 94%... and a decade and a half later, the Max Yield strategy had made Chris 1,700% profits.
His original $10,000 was now worth more than $182,000 – all from keeping his money in the bank.
When you use Chris' Max Yield strategy, you can profit in two ways:
1. You earn far higher-than-U.S. savings interest rates...
2. When you convert your pounds, euros, francs, yen (or whatever currency you're in that year) back into American money, you will often find that you've made an additional 25% to 50%...
That's how, using the Max Yield strategy, Chris has made per-year gains of 32.3%... 31.3%... 29.6%... 27.8%... and 24%... all from a simple bank account.
The best part about this strategy?
No matter where you live – in the U.S. or abroad – you can use this strategy. And you can open a Max Yield savings account from anywhere in the world.
You don't need a lot of money to start using Max Yield, either... all you need to know is what currency to buy.
You'll see how easy it is to open a Max Yield savings account with a single phone call... and the currency Chris recommends you deposit your money in right now.
Of course, this isn't the only way Chris has made a fortune from government moves over the years...
So before I tell you how you can start a Max Yield savings account yourself, let me share another way Chris is taking advantage of interest rates in the U.S. right now...
It's one of the most profitable things you can do with your cash. And it's easy to do, too...
Don't worry – you don't need to know a thing about how interest rates work to make a lot of money here...
How to make 200% gains, without buying stocks
For the last 26 years, bonds around the world have been in a bull market... not just in the U.S.
The reason? When interest rates go down, bonds do extremely well.
Over the last two-and-a-half decades, that's exactly what's been happening...
For instance:
Chris saw a 200% return on the British government's high-yield bonds – in just two years time...
He saw a 100% return from New Zealand government bonds...
54% from Germany's bond program...
49% in Switzerland government bonds...
And he's made around 40% gains in Iceland bonds...
As Chris says:
"In my U.S. bonds, profits of 25%-50% were the usual... my overall profits must have been around 300%. Bonds have been the centerpiece of my portfolio for years. The interest they kept paying made it possible for me to have the freedom to make speculations in other things..."
But lately – after 26 years – the government interest rate picture has changed.
So Chris has taken a new approach... one that should be equally profitable.
By taking advantage of the new trend in government interest rates, you could make an easy 30% in just a years' time... and quite possibly double your money in the next few years.
How can you get in on it? Let me explain...
100% gains from rising rate opportunities
The unique investment Chris recommends you buy has started to move in the last few months, up 10%.
Not coincidentally, interest rates have started rising, as CBS MarketWatch recently noted:
"Don't look now – but a sleeping market giant is waking up and wreaking havoc. Traders are throwing in the towel on their long-held belief that the Fed will cut rates. Rising rates are serious stuff for investors..."
Instead, Chris has found an investment – he calls it the New Rising Rate Opportunity – which can make you a lot of money when government interest rates rise.
But don't worry...
As I said, you don't need to understand how interest rates work – or how to predict what they're going to do next – to profit from this investment.
It's very simple: When U.S. interest rates rise, the New Rising Rate Opportunity does, too.
And you can get in on this simple investment with a single phone call to Ohio, where this investment originates.
If you get in now, you could make around 30% or more in a year... and if you let your money sit in this investment for just a few years – with the compounding interest you'll be making – you could see potential returns of 100% or more.
Taking advantage of the economic moves governments make – like interest rates – is why Chris has never needed a "real" job...
It's why today he's got millions safely compounding interest in the bank...
And how he can afford to live in a luxury penthouse on the French Riviera in Monaco, just steps away from the Mediterranean Sea.
It's actually very simple to profit from the moves governments make in their own self-interest, such as when interest rates rise... all you have to do is know where to stand to collect the money.
If you're interested, Chris will show you exactly how to do it...
Friday, October 5, 2007
7 Steps to Build Your Personalized Investment Plan
Selecting securities isn't the first thing investors do; choosing investments is just one of many elements in the process. To bulletproof your investing, you need to complete many tasks. The following checklist outlines how you can build a successful investment plan that meets your individual needs and goals:
#1 Determine where you stand. Gain a good understanding of what your financial commitments are now and in the future. Make certain that you have an emergency fund and a savings plan.
#2 Clearly state your financial goals. How much do you need? When do you need it? How much risk can you tolerate? If you lost the principal of an investment, could you mentally recover and invest again?
#3 Determine the appropriate allocation of your personal assets for your age (young adult, middle-aged, retiree, and so on). Develop a regular investing program and stick to it regardless of market volatility.
#4 Select the investments that meet your financial goals and risk-tolerance level. How much time do you have (in years) to invest? Should you be an active trader and invest often during the day or a passive investor with a buy-and-hold policy?
#5 Analyze your investment candidates. Before you call your online broker, make certain that you can tell a child in two minutes or less why you want to own a particular investment. Determine how long you plan to hold the security and decide at what price you will sell (and take your profits or cut your losses).
#6 Select an online broker that suits your needs. Avoid mutual fund loads (a sales charge added to the purchase or sale of a mutual fund) and high fees. Use automatic investment plans, dividend reinvestment programs, investment clubs, and other programs to reduce brokerage commissions.
#7 Monitor your portfolio and reevaluate your goals on a regular basis. Rank the performance of your investments and make the appropriate changes. You can expect that changes in general market conditions, new products that are introduced, and new technology will change how established businesses operate. Use this information to gain an understanding of when to hold and when to fold.
Just remember. Every successful investor starts with a financial plan. The plan includes clearly stating your financial objectives, saving a certain amount of money each month, developing investment asset allocation strategies, and so on.
Monitoring your portfolio in a volatile market is very important. You can select the best investments, but if you don't have a way to track your gains and losses, you can lose time and money.
Good record keeping is invaluable for calculating your taxes, preparing for retirement, estate planning, and taking advantage of opportunities to increase your personal wealth.
Sources on the Internet can assist you in keeping careful records of every stock, mutual fund, bond, and money market security that you own. Setup time can be as little as ten minutes. You can update and monitor your portfolio once a week or once a month.
Your investments can be in one portfolio (for example, your retirement fund) or many (say, your retirement fund, an emergency fund, and your children's college fund). You can also track investments that you wish you owned or that you're considering for investment.
Author Resource:- Adrien Brody (http://forex-trading-tutorial.com/) is a full-time investor. He has been researching investment strategies and make his own living. You can learn more about his techniques at http://forex-trading-tutorial.com/.
Article From Article Friendly
#1 Determine where you stand. Gain a good understanding of what your financial commitments are now and in the future. Make certain that you have an emergency fund and a savings plan.
#2 Clearly state your financial goals. How much do you need? When do you need it? How much risk can you tolerate? If you lost the principal of an investment, could you mentally recover and invest again?
#3 Determine the appropriate allocation of your personal assets for your age (young adult, middle-aged, retiree, and so on). Develop a regular investing program and stick to it regardless of market volatility.
#4 Select the investments that meet your financial goals and risk-tolerance level. How much time do you have (in years) to invest? Should you be an active trader and invest often during the day or a passive investor with a buy-and-hold policy?
#5 Analyze your investment candidates. Before you call your online broker, make certain that you can tell a child in two minutes or less why you want to own a particular investment. Determine how long you plan to hold the security and decide at what price you will sell (and take your profits or cut your losses).
#6 Select an online broker that suits your needs. Avoid mutual fund loads (a sales charge added to the purchase or sale of a mutual fund) and high fees. Use automatic investment plans, dividend reinvestment programs, investment clubs, and other programs to reduce brokerage commissions.
#7 Monitor your portfolio and reevaluate your goals on a regular basis. Rank the performance of your investments and make the appropriate changes. You can expect that changes in general market conditions, new products that are introduced, and new technology will change how established businesses operate. Use this information to gain an understanding of when to hold and when to fold.
Just remember. Every successful investor starts with a financial plan. The plan includes clearly stating your financial objectives, saving a certain amount of money each month, developing investment asset allocation strategies, and so on.
Monitoring your portfolio in a volatile market is very important. You can select the best investments, but if you don't have a way to track your gains and losses, you can lose time and money.
Good record keeping is invaluable for calculating your taxes, preparing for retirement, estate planning, and taking advantage of opportunities to increase your personal wealth.
Sources on the Internet can assist you in keeping careful records of every stock, mutual fund, bond, and money market security that you own. Setup time can be as little as ten minutes. You can update and monitor your portfolio once a week or once a month.
Your investments can be in one portfolio (for example, your retirement fund) or many (say, your retirement fund, an emergency fund, and your children's college fund). You can also track investments that you wish you owned or that you're considering for investment.
Author Resource:- Adrien Brody (http://forex-trading-tutorial.com/) is a full-time investor. He has been researching investment strategies and make his own living. You can learn more about his techniques at http://forex-trading-tutorial.com/.
Article From Article Friendly
Saturday, September 15, 2007
Be A Responsible Investor!
By : Max Ng Submitted 2007-02-08 17:05:19
According to the Cashflow quadrants by Robert Kiyosaki, I will need to switch to either a business owner or an investor to become wealthy. If I were to choose the path as an investor, I realized that there are certain responsibilities that I need to fulfill. What are the responsibilities? To answer this question, let use the example of investing in mutual funds. As we all know, fund managers managed mutual funds. They are expert and more qualified than the average investor in stock investment. Thus they are in a better position to make money from the stock market. Another advantage of mutual funds is that there is diversification to reduce risk. The amount of money is pooled to invest in different stocks, thus achieving diversification. These are the two selling points of investing in mutual funds. When I initially started to invest in mutual funds, I never do any detailed research. Like most people, I simply invest in a mutual fund that I think it will make money. The decision is usually purely based on the information presented by the sale persons. Happily, I invested and forget about it. I felt that since the expert fund manager is managing my investment, I had nothing to worry about. And I never really monitor the performance of the mutual funds. This did not just happen to mutual funds investment. I did that to other kind of investments as well. I felt that I wanted to spend as little time as possible and leave everything to the experts. I was lazy to learn and manage my own investments actively. Later, I learned from the Rich Dad's series by Robert Kiyosaki that financial education is essential. Since I always desire to be wealthy, I have decided to gain financial literacy. After studying for a few years, I have learned a lot of things and that really open my open eyes. As an investor, I am responsible for the outcome of my investments. No one else is responsible for the result of my investments. This is the part where most people missed out. They thought that they could leave things to the expert and do nothing. Firstly, I have the responsibility of selecting the expert to manage my investments. I need to select expert based on their track records. In the case of mutual funds investment, I need to select the fund manager who has track records to increase my odds of winning. Secondly, I have the responsibility of monitoring my investments regularly. If things are not in order, I should consider cutting loss and get out of the investments. In the case of mutual funds investment, if I have invested in a particular sector, I need to check that there are no bad news regarding the sector that may affect my investments. If the sector is expected to perform badly for the next few years, then my mutual funds investment will definitely perform badly. Then, I should consider cutting loss. Thirdly, I have the responsibility of choosing the correct investment company. If an investment company has financial problems, then I face the risk of losing money if the company were to liquidate. In the case of mutual funds investment, if the fund house had financial woes, I would be asking for trouble by investing my money with them. Next, I have the responsibility of choosing the right investment product. If I choose the wrong investment products, I am almost guaranteed to loss money. In case of mutual funds investment, if I had chosen a dotcom fund just after the dotcom bubble had burst, I would definitely be losing money. Then, I have the responsibility of getting the cheapest investment cost. If I have choose an investment with high investment cost, then it simply means that my investment return needs to perform better than the high investment cost before I can make money. In the case of mutual funds investment, I should look out for ways to reduce sales charge, expensive ratio, fund management fees and so on. Lastly, I have the responsibility of planning for my investment. Like what I have learned from the Rich Dad's series by Robert Kiyosaki, investment is a plan. In the case of mutual funds investment, I should time my entry and my exit properly. The performance of the mutual funds goes up and down over the years. If I had not set any profit target for my mutual funds investment, then I would be holding on to the funds indefinitely. I would end up not selling my mutual funds when there is a reasonable profit. If I needed my money when the market had dropped, then I would be losing money by cashing out at the wrong time. The above are just some responsibilities as an investor. They are by no means complete. I believe when I learn more, the list of responsibilities will grow. In short, one need to be responsible for one's investments. * DISCLAIMER * The author only provides the material and information as a layperson's views about an important subject. The materials and information are from sources believed to be reliable and from his own personal experience, but he neither implies nor intends any guarantee of accuracy. All the materials, information and procedure in this book are only the author's personal opinion. You must consult your own professional advisor and other reputable sources on any matter that concerns you or others. The author, publishers and distributors are not competent and do not profess to give legal, accounting, medical or any other type of professional advice. The reader must always seek those services from competent professionals who can review your own particular circumstances. The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
Author Resource:- Max Ng helps people who desire success to learn from his mistakes and realizations by sharing his personal struggle for success at http://www.richdadsecrets4me.com. He is the author of "Your Greatest Gift! Why Waste It?" at http://www.yourgreatestgift.com
Article From Article Friendly
According to the Cashflow quadrants by Robert Kiyosaki, I will need to switch to either a business owner or an investor to become wealthy. If I were to choose the path as an investor, I realized that there are certain responsibilities that I need to fulfill. What are the responsibilities? To answer this question, let use the example of investing in mutual funds. As we all know, fund managers managed mutual funds. They are expert and more qualified than the average investor in stock investment. Thus they are in a better position to make money from the stock market. Another advantage of mutual funds is that there is diversification to reduce risk. The amount of money is pooled to invest in different stocks, thus achieving diversification. These are the two selling points of investing in mutual funds. When I initially started to invest in mutual funds, I never do any detailed research. Like most people, I simply invest in a mutual fund that I think it will make money. The decision is usually purely based on the information presented by the sale persons. Happily, I invested and forget about it. I felt that since the expert fund manager is managing my investment, I had nothing to worry about. And I never really monitor the performance of the mutual funds. This did not just happen to mutual funds investment. I did that to other kind of investments as well. I felt that I wanted to spend as little time as possible and leave everything to the experts. I was lazy to learn and manage my own investments actively. Later, I learned from the Rich Dad's series by Robert Kiyosaki that financial education is essential. Since I always desire to be wealthy, I have decided to gain financial literacy. After studying for a few years, I have learned a lot of things and that really open my open eyes. As an investor, I am responsible for the outcome of my investments. No one else is responsible for the result of my investments. This is the part where most people missed out. They thought that they could leave things to the expert and do nothing. Firstly, I have the responsibility of selecting the expert to manage my investments. I need to select expert based on their track records. In the case of mutual funds investment, I need to select the fund manager who has track records to increase my odds of winning. Secondly, I have the responsibility of monitoring my investments regularly. If things are not in order, I should consider cutting loss and get out of the investments. In the case of mutual funds investment, if I have invested in a particular sector, I need to check that there are no bad news regarding the sector that may affect my investments. If the sector is expected to perform badly for the next few years, then my mutual funds investment will definitely perform badly. Then, I should consider cutting loss. Thirdly, I have the responsibility of choosing the correct investment company. If an investment company has financial problems, then I face the risk of losing money if the company were to liquidate. In the case of mutual funds investment, if the fund house had financial woes, I would be asking for trouble by investing my money with them. Next, I have the responsibility of choosing the right investment product. If I choose the wrong investment products, I am almost guaranteed to loss money. In case of mutual funds investment, if I had chosen a dotcom fund just after the dotcom bubble had burst, I would definitely be losing money. Then, I have the responsibility of getting the cheapest investment cost. If I have choose an investment with high investment cost, then it simply means that my investment return needs to perform better than the high investment cost before I can make money. In the case of mutual funds investment, I should look out for ways to reduce sales charge, expensive ratio, fund management fees and so on. Lastly, I have the responsibility of planning for my investment. Like what I have learned from the Rich Dad's series by Robert Kiyosaki, investment is a plan. In the case of mutual funds investment, I should time my entry and my exit properly. The performance of the mutual funds goes up and down over the years. If I had not set any profit target for my mutual funds investment, then I would be holding on to the funds indefinitely. I would end up not selling my mutual funds when there is a reasonable profit. If I needed my money when the market had dropped, then I would be losing money by cashing out at the wrong time. The above are just some responsibilities as an investor. They are by no means complete. I believe when I learn more, the list of responsibilities will grow. In short, one need to be responsible for one's investments. * DISCLAIMER * The author only provides the material and information as a layperson's views about an important subject. The materials and information are from sources believed to be reliable and from his own personal experience, but he neither implies nor intends any guarantee of accuracy. All the materials, information and procedure in this book are only the author's personal opinion. You must consult your own professional advisor and other reputable sources on any matter that concerns you or others. The author, publishers and distributors are not competent and do not profess to give legal, accounting, medical or any other type of professional advice. The reader must always seek those services from competent professionals who can review your own particular circumstances. The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
Author Resource:- Max Ng helps people who desire success to learn from his mistakes and realizations by sharing his personal struggle for success at http://www.richdadsecrets4me.com. He is the author of "Your Greatest Gift! Why Waste It?" at http://www.yourgreatestgift.com
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Sunday, September 9, 2007
Forex As an Asset Class and Financial Instrument
By : Jason Uvios Submitted 2007-03-02 07:24:08
Forex has always been classified as an asset and an instrument of financial transaction including both the spot and futures market. By one argument, the forex market makes a pretty much bigger turn over on a daily basis than the commodities and services trade although conceptually forex is there to facilitate the latter two. Need any more evidence for forex's status as financial instrument and an asset class of its own right? Sequentially, the logic goes that any financial instrument can be thought of as fit to be an asset class. So What Is A Financial Instrument? Any document, either virtual or real, which is assigned some monetary value and legally tradeable in the market as a package of an asset, is a financial instrument. The most traded one amongst all financial instruments is the equity based one. Plain vanilla is an example of simplest financial instruments which has a simple strike price and expiration date. This option is devoid of advanced features but optionally there can be what is known as a knock-in option which activates the instrument only if the underlying stocks strike a preset price. But coming back to the discussion of forex as an asset class, the overall foreign exchange traded daily has jumped by 38% between April 2005 and April 2006 and has more than doubled since 2001. One significant reason that can be attributed to this is growing acceptance of forex as asset class strongly backed up by the fund management assets such as hedge funds and pension funds. On the same breath, one can not negate the advent of easier internet based retail trading platforms which pitched into attract large volumes. We have said that forex is an asset class. The asset class is basically categorized as debt based and equity based depending on whether the investor gets to own the asset or not. For example, debt asset is when an investor extends a loan to the owner of asset and the equity based asset reflects the ownership of the investor. What Does It Mean To A Retail Investor? The categorized forex asset class is a wise investment opportunity for a retailer. You can systematically acquire and hold a foreign currency, such as euro or pound sterling till it appreciates sufficiently over time. Speculative forex trading is another avenue but it is ridden with significant risk factors. Transnational executives hold a considerable amount of forex in their kitty.
Author Resource:- Jason Uvios writes about "Forex As an Asset Class and Financial Instrument" to visit: foreign pharmacy, foreign currency and foreign currency exchange rates.
Article From Article Friendly
Forex has always been classified as an asset and an instrument of financial transaction including both the spot and futures market. By one argument, the forex market makes a pretty much bigger turn over on a daily basis than the commodities and services trade although conceptually forex is there to facilitate the latter two. Need any more evidence for forex's status as financial instrument and an asset class of its own right? Sequentially, the logic goes that any financial instrument can be thought of as fit to be an asset class. So What Is A Financial Instrument? Any document, either virtual or real, which is assigned some monetary value and legally tradeable in the market as a package of an asset, is a financial instrument. The most traded one amongst all financial instruments is the equity based one. Plain vanilla is an example of simplest financial instruments which has a simple strike price and expiration date. This option is devoid of advanced features but optionally there can be what is known as a knock-in option which activates the instrument only if the underlying stocks strike a preset price. But coming back to the discussion of forex as an asset class, the overall foreign exchange traded daily has jumped by 38% between April 2005 and April 2006 and has more than doubled since 2001. One significant reason that can be attributed to this is growing acceptance of forex as asset class strongly backed up by the fund management assets such as hedge funds and pension funds. On the same breath, one can not negate the advent of easier internet based retail trading platforms which pitched into attract large volumes. We have said that forex is an asset class. The asset class is basically categorized as debt based and equity based depending on whether the investor gets to own the asset or not. For example, debt asset is when an investor extends a loan to the owner of asset and the equity based asset reflects the ownership of the investor. What Does It Mean To A Retail Investor? The categorized forex asset class is a wise investment opportunity for a retailer. You can systematically acquire and hold a foreign currency, such as euro or pound sterling till it appreciates sufficiently over time. Speculative forex trading is another avenue but it is ridden with significant risk factors. Transnational executives hold a considerable amount of forex in their kitty.
Author Resource:- Jason Uvios writes about "Forex As an Asset Class and Financial Instrument" to visit: foreign pharmacy, foreign currency and foreign currency exchange rates.
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Retirement Income Opportunity
By : Adrian Monterosso Submitted 2006-12-19 13:30:02
Just because you have now retired or retiring in 10 or 20 years, you should not stop investing. It's now time to build on your nest egg and revise your retirement plan. You can still be conservative and make money at the same time. Many people start there stock investing careers when they retire as a hobby or a money making venture. The Stock Market is a great Retirement Income opportunity that needs to be learned properly. Stock investing at retirement can be learned without too many pressures, therefore with the right education you could be making $500 per month pocket money or money that contributes towards a more elaborate lifestyle. Or if you just want to utilize the services of someone who helps you pick your stocks and then learn off them you can do this also. These stock picking services have helped many people make extraordinary incomes. Another way you can learn about the Stock Market is by going to classes and learning the market by studying in a group, this way you can also meet new friends and develop some relationships with like minded people. Staying active and stimulating the mind is important and will keep you feeling and acting younger. You can retain that sharpness you had when you were working, by starting with a retirement plan that can change your whole retirement outlook. Most successful investors consider earning money to be important even after retirement. The money you earn money from investments can be passive and contribute towards paying the bills and other expenses eating into the lump sum amount saved over your life time. Following are some tips to developing a Retirement Income Opportunity; 1. If you have not retired yet, do not wait until retirement before you start saving. Start at an early age and use a savings plan to save every pay day. Some banks and fund management companies have good rates which, in the long term, will possibly even double the money you have invested in a number of years. A retirement plan should start now, no matter what your age. 2. Stocks are a great option and have grown more than any other asset class over the last 50 years. Most large capitalized (high assets in company) companies have grown due to business growth in recent times. 3. Purchasing real estate is also a good option but has its disadvantages. Once you invest, if you need the money you can't get the money unless you sell and this could take months. Although, the advantage is that the price of properties go up over long term and they are less volatile than stocks. 4. You can also start a business as a hobby. The working experience you have gained over your life time can branch into other ideas. Some people invest for a hobby into the stock market or property. The stock market allows you to start with a minimal amount and you can grow this amount to a substantial amount with the right guidance. See the bottom of this article for more information. 5. You can also get an investment retirement account or managed fund account. You can find out more about these from a financial planner. There are many ways where a little money in the beginning can explode into lots of money and become a very successful retirement income opportunity. Days of relying on the government to provide us security when we retire are over. The retirement income provided by the government are not worth the wait and that is why you need to develop your own retirement income opportunity. By taking action and using some simple yet effective investment techniques you can profit like the other 5% who retire comfortably.
Author Resource:- The developers of Stock Market Option Trading have been actively involved in stock trading and investing for nearly 10 years. Click here to obtain access to a free exclusive E-Book the get your free copy
Article From Article Friendly
Just because you have now retired or retiring in 10 or 20 years, you should not stop investing. It's now time to build on your nest egg and revise your retirement plan. You can still be conservative and make money at the same time. Many people start there stock investing careers when they retire as a hobby or a money making venture. The Stock Market is a great Retirement Income opportunity that needs to be learned properly. Stock investing at retirement can be learned without too many pressures, therefore with the right education you could be making $500 per month pocket money or money that contributes towards a more elaborate lifestyle. Or if you just want to utilize the services of someone who helps you pick your stocks and then learn off them you can do this also. These stock picking services have helped many people make extraordinary incomes. Another way you can learn about the Stock Market is by going to classes and learning the market by studying in a group, this way you can also meet new friends and develop some relationships with like minded people. Staying active and stimulating the mind is important and will keep you feeling and acting younger. You can retain that sharpness you had when you were working, by starting with a retirement plan that can change your whole retirement outlook. Most successful investors consider earning money to be important even after retirement. The money you earn money from investments can be passive and contribute towards paying the bills and other expenses eating into the lump sum amount saved over your life time. Following are some tips to developing a Retirement Income Opportunity; 1. If you have not retired yet, do not wait until retirement before you start saving. Start at an early age and use a savings plan to save every pay day. Some banks and fund management companies have good rates which, in the long term, will possibly even double the money you have invested in a number of years. A retirement plan should start now, no matter what your age. 2. Stocks are a great option and have grown more than any other asset class over the last 50 years. Most large capitalized (high assets in company) companies have grown due to business growth in recent times. 3. Purchasing real estate is also a good option but has its disadvantages. Once you invest, if you need the money you can't get the money unless you sell and this could take months. Although, the advantage is that the price of properties go up over long term and they are less volatile than stocks. 4. You can also start a business as a hobby. The working experience you have gained over your life time can branch into other ideas. Some people invest for a hobby into the stock market or property. The stock market allows you to start with a minimal amount and you can grow this amount to a substantial amount with the right guidance. See the bottom of this article for more information. 5. You can also get an investment retirement account or managed fund account. You can find out more about these from a financial planner. There are many ways where a little money in the beginning can explode into lots of money and become a very successful retirement income opportunity. Days of relying on the government to provide us security when we retire are over. The retirement income provided by the government are not worth the wait and that is why you need to develop your own retirement income opportunity. By taking action and using some simple yet effective investment techniques you can profit like the other 5% who retire comfortably.
Author Resource:- The developers of Stock Market Option Trading have been actively involved in stock trading and investing for nearly 10 years. Click here to obtain access to a free exclusive E-Book the get your free copy
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Safe And Reliable - Unit Trust
I am very sure that you know that you can increase your wealth from investment. When you hear the word investment, are you thinking about stocks and shares? People get skeptical about shares thinking that one will definitely lose money from shares because of the risk level. However, if someone tells you that there are investments that have little or no risk; do you think its bond?
Personally, I am not a fan of bonds or fixed income securities. Investing in bonds is a waste of time and sometimes, money. However, the best investment that I truly love because of the transparency and returns are unit trust. Another term for unit trust is mutual funds.
A unit trust is a legal trust that holds investments and other assets for the benefit of the unit holder that share similar investment objective. The investment portfolio is managed by a professional fund management firm that strives to meet investment goals of the unit holders.
The unit trust is divided into equal portions called units. Investors buy and sell these units from the manager of the unit trust. A unit trust is constituted by a trust deed.
There are advantages and disadvantages of investing in unit trust. In fact in any kind of investment, there are advantages and disadvantages. Unit trust serves investors who do not have much financial knowledge on investment. As unit trust is handled by a professional fund management, people who spend time and money to study about investment, I am sure your money is in the safe hands.
Advantages for unit trust are affordability, professional investment expertise, diversification, liquidity, security, convenience and compatibility. Where else disadvantages for unit trust are risk (all investments have risk), level of attention and high cost base.
There are other factors to consider too when investing in unit trust but these are some of the features that can be considered the next time you want to invest.
Article Source: http://EzineArticles.com/?expert=Nurazrin_Suhadi
Personally, I am not a fan of bonds or fixed income securities. Investing in bonds is a waste of time and sometimes, money. However, the best investment that I truly love because of the transparency and returns are unit trust. Another term for unit trust is mutual funds.
A unit trust is a legal trust that holds investments and other assets for the benefit of the unit holder that share similar investment objective. The investment portfolio is managed by a professional fund management firm that strives to meet investment goals of the unit holders.
The unit trust is divided into equal portions called units. Investors buy and sell these units from the manager of the unit trust. A unit trust is constituted by a trust deed.
There are advantages and disadvantages of investing in unit trust. In fact in any kind of investment, there are advantages and disadvantages. Unit trust serves investors who do not have much financial knowledge on investment. As unit trust is handled by a professional fund management, people who spend time and money to study about investment, I am sure your money is in the safe hands.
Advantages for unit trust are affordability, professional investment expertise, diversification, liquidity, security, convenience and compatibility. Where else disadvantages for unit trust are risk (all investments have risk), level of attention and high cost base.
There are other factors to consider too when investing in unit trust but these are some of the features that can be considered the next time you want to invest.
Article Source: http://EzineArticles.com/?expert=Nurazrin_Suhadi
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