|Wealth Building Information|
Does the Moon Have Covers?
Recently, one late winter night, my four-year old son and I counted stars with one another. After a few minutes, he pointed to the bright moon and asked, "Why doesn't the moon have covers?"
"Covers? What do you mean?" I inquired. And in his own boyish terminology, he launched into a long description justifying the moon's requirements for blankets to protect itself against the weather's elements. To me, his ideas were plausible and thoughtful.
As an investor, it may serve you well to consider your portfolio's protection. Have you protected your investments during this year's volatile cold snap and will you have the necessary diversification to enjoy a potential market re-heating? The following may assist you in all types of markets.
For individual stock investors, a defensive posture served them well during the recent bear market. By employing "tight" stop losses, they created downsize protection. Even if the sell price seemed undesirable at that particular time, building a cash position with such proceeds allowed investors a chance to re-enter the market at lower levels. Risk of principal still existed in such scenarios and this strategy will not guarantee you a positive return. For many, this strategy is not proper.
If your portfolio is growth oriented, no income generation necessary, it is important to keep focus on your pre-determined investment philosophy. Even so, you should not ignore the short-term. Pay close attention to market behaviors and stick to your plan. I would speculate investors of Enron had long term goals, but little or no exit strategy. It is better to know and profit, than buy another's high price and blow it!
According to the 2001 book entitled Are You Normal About Money? by Bernice Kanner, seventy-two percent of mutual fund investors never read the accompanying prospectus. I admit the literature can be boring, however it can be extremely insightful as well. Look at the portfolio holdings and determine the primary sector allocations. You will also develop a good idea of the fund's turn-over ratio by reading the prospectus.
You should be aware of the driving forces behind all your funds' returns. Are your funds allocated in strong positions and equally strong sectors? Or, is the money manager hanging onto the dreams and ideas of yesterday, hoping that six-dollar stock will return to eighty by year-end?
It is a good idea to evaluate your portfolio periodically and ask yourself "Why do I own these positions?" Time passes and your goals either change or come to fruition. Seasons change and you should adapt accordingly, why not institute diligent tactics for your savings? The thought you put into such procedures may help protect your net worth.
Wardlaw's belief is that familiar life elements best illustrate practical investment strategies; not typical investment jargon. With that philosophy, the author assists financial planners/advisors, brokerage firms, periodicals, and other investment information syndicates create informative and entertaining articles. For comments and questions, please contact the author at [email protected] or visit http://www.tools2invest.com
A College Degree or an MBA is NOT NEEDED to be Financially Free
Look at Forbes' top 10 United States wealthiest people. Notice the top five "self made" billionaires (excludes the Waltons who's net worth is due to inheritance) are college dropouts. If MBA/college degrees were the answer, this would not be true.
Building Wealth: Its An Inside Job ? Part 1
Whenever we read about building wealth or even attend a seminar for that purpose, we usually begin by assessing our present financial status. We're asked to calculate our assets and liabilities followed by a determination of where we'd like to be in a certain period of time. Being armed with this data along with assessing our present earning and saving power, we then set out to structure our financial goals. Although we try to be realistic, we still want to stretch ourselves a little bit ? after all, that's one of the purposes of setting goals, isn't it? To achieve more than we normally would if we didn't have goals in the first place. And also, goals are supposed to give us direction.
The Mathematical Formula For Making Money
No matter what markets you serve; what products you sell; or what marketing tools you use, in business there's one truth you cannot escape.
Do You Want Money?
Let me ask you a very simple question. Do you want money? Of course you do!
I Dont Need A Financial Coach To Help Me!
You've been thinking that your financial life could probably be better, right? Maybe you think, "If I could just stick to a budget everything will be fine?", or how about "When I get that next raise or promotion, I'll have enough money to pay off my debts and save some money?" You may even be thinking,"I can do this on my own!"
How I made $122,000 and lost $132,000 - A lesson in Assets vs Liabilities
This is a true story from my own experience that illustrates how buying assets for wealth creation works.
Self Improvement and Financial Security for the Future
Any successful person, or any anyone interested in self improvement and making a better life for themselves must be prepared to take responsibility for every aspect of their lives and their future.
One Pipeline Is Worth A Thousand Paychecks
It is with great pleasure of having you here at this hour. Let me get it straight and be honest with you at the very outset. First of all, I'm not going to sell you anything here. And second of all, if you are hoping that you could learn some tricks to earn Quick & easy Money, you are definitely in a wrong place.
What is Your Creative Retirement Plan?
The idle are a peculiar kind of dead that cannot be buried." Oriental proverb
Financial Freedom for Every Employee
You may think you have to be an entrepreneur to achieve your goal of financial freedom, but that is not necessarily true. While it is true that owning your own business is an excellent way to generate passive income, financial freedom is not entirely dependent on business ownership.
Does Money Grow On Trees?
"Money Doesn't Grow On Trees."
Methods Of Raising Instant Cash
The inability to come up with the necessary cash when suddenly presented with a "can't miss" opportunity, is one of the most frustrating experiences anyone ever live through. Yet, there are literally hundreds of ways to raise unlimited amounts of cash in an hour or less! You may not be aware of many of these cash-raising methods we're about to describe for you, but they are all legal and any one of them could be the answer to your money needs the next time you have an opportunity to get in on the ground floor of a sure-fire winner. The important thing is to be aware of the possibilities, and then to position yourself to use them when the need arises.
Learn How to Bank Like a Banker
The business of banking has changed dramatically over the last decade. Because the cost of doing business the old-fashioned way is no longer effective, banks are interested in changing their customers' behavior by encouraging electronic banking alternatives whenever possible. They have done this by charging high fees for services that were once free. If you pay $200 or more in annual fees for banking, it's time to do some competitive shopping.
Residual Income - 3 Ideas for Long Term Profits
A residual income is one that comes in no matter what--even when you are not working (or can't work.) It's something all of us will someday want and possibly need.
Is Accumulating a $1,000,000 Net Worth Easy? Yes and NO
Is accumulating wealth as easy as following a 3-step plan? Yes it is and no it isn't. As with many things in life, accomplishing a goal such as accumulating one million dollars (or even $100,000) depends on your desire, your personal choices and your daily actions.
Lesson 2 - The Commodity Of Kings!
What is "The Commodity of Kings"
The Financial Equation that Will Set You Free!
I have a good friend who works in an area of the US that has more than its share of poverty. He called me the other day with a very broken heart. He was feeling badly for the people around him who simply do not allow themselves to get set free financially. I could feel the pain he was feeling because I too, very often wonder why it is that some people experience financial independence and others do not. It really is a mystery.
High Flying Market Makes Good Buys Hard to Find
AS THE MARKET FLIES HIGHER, GOOD BUYS ARE BECOMING HARDER AND HARDER TO FIND.
Wealth Secrets: Saving Your Way to a Fortune
SCENE 1: Pharaoh has just woken up from a very troubling dream and feels he must know the interpretation. Joseph gets called in and explains that there will be seven years of plenty and seven years of famine. The famine will be so bad that it will be as if there were no seven years of plenty.
The Making Money Obsession - Discover The Real Truth
In most societies, we are raised to believe in the myth that "it's spiritual to be poor". Or we use such phrases as "filthy rich", or "Money is the root of all evil". Our TV and movies present the big businesses as the "bad guys", and programs our minds to believe that being rich is "bad".
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