One Door to Financial Freedom
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Now lets look at INVESTMENTS as the second of of
three vehicles you can take to financial freedom.
INVESTMENTS Essentially there are four
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
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