Investments
One Door to Financial Freedom
click
a door
Now
lets look at INVESTMENTS as the second of
of three vehicles you can take to financial freedom.
INVESTMENTS
Essentially there are four strategies
a)-Long
Term -Stocks Buy and Hold . We know that if
we pick good stocks using strong fundamentals that
over time despite the market whims that they will
increase in value over the long term. But what are
those fundamentals? Some basic premises:
b)-Long
Term -High Flying Mutual Funds:
Based
on historical records it is relatively easy using
the Internet to evaluate the performance of mutual
funds. Although as they say in the business past
performance is not indicative of future performance
it is an indication of how well managed different
funds are. Rather than just look at last year’s
performance, which may be skewed by a particular
strategy, tied to particular conditions. Look at
the track record of the top funds over the past
5-10 years. A conservative prescriptive approach:
More
c)-Short
Term -Stock Options:
Traditionally
stock options are thought of as high-risk ventures
and they are if you don't know what you are doing.
Yet
as in real estate you have the benefit of leverage
whereby a small sum of money controls a lot of net
worth.
But
As the Kenny Rogers said in the Gambler, "you have
to know when to hold and when to fold". Essentially
you need to learn about cycles and patterns and
second generation curves like the MACD's and Scholastics
which indicate momentum whether it is accelerating
or decelerating. Take the guesswork out and establish
specific entry and exit positions.
The
only way to play this game is to follow a system
that works so that your gains always exceed your
loses. You need a system to keep the odds in your
favor and to keep in check those constant emotions
of fear and greed.
d)-High
Risk -Large returns -Offshore
It
may not be generally known but the investments available
to the rest of the world are greatly in excess to
that available in North America and returns of 20
or more percent are not that uncommon. When you
realize that a bank depending on its jurisdiction
may lend out many times the amount it has on deposit
(10x-40x and more) the return on their (your) money
is easily in excess of 100%.
Consequently
there are opportunities offshore for you to get
a substantial return for your investment, 20% is
a minimum expectation.
It
is estimated in the United States that 20 million
people the population of Canada are investing offshore.
Be fore warned that, this has the IRS quite concerned
that a vast amount of taxable earning are outside
of their reach and they and their counterparts in
Canada are putting mechanisms in place to make it
more and more difficult. Needless to say there are
strategies or investment vehicles that allow you
to legally accumulate wealth outside the country.
Check out UofMoney.com.
You
may wish to explore what type of opportunities are
available to you. While not recommended because
of the high risk involved, your money is not as
well protected as it is in North America by government
regulations -the modus operandi here is preservation
of capital.
Ask
me for four strategies of preserving capital
offshore.
Next:
Door No. 3 - The Internet