Exchange Traded Funds
March 10, 2010
They call ‘em ETFs.
There are hundreds of them.
The mutual funds don’t want you to find out about them.
Why?
Because they beat the socks off mutual funds in so many categories. The expense ratios of most mutual funds runs about 1.5% and many are much higher. To buy a mutual fund you must wait until the end of the day to find out what price you paid. Many mutual funds have instituted redemption charges should you decide to sell out early. Early is whatever definition they want to apply and could be a year out, maybe more. The fee at this time is about 2% for many funds.
Fund managers tell you it is to discourage overnight trading that adds to their expenses and therefore penalizes shareholders, but that is not true.
The two most popular ETFs are SPY and QQQ. SPY is composed of the stocks in the SP500 Index with 500 stocks and it is priced every few minutes. It can be bought and sold any time during the day. The mutual funds who tell you it is too expensive to price their funds more than once a day are either lying or stupid. ETFs prove that. And that same logic goes for short term trading.
Using Divergences to Keep Out of Bad Trades
February 28, 2010
The American Football season just came to an end with my team getting close to the championship but falling short again. I am a big fan of the Indianapolis Colts and we keep having a groundhog day season year after year but it is still fun to watch. We have one of the better quarterbacks in the league named Peyton Manning who is renowned for his hard work ethic as well as his mental and physical ability on the field.
One of the things he is known for is beginning each play with up to three possible plays to run and trying to switch into the best one at the line of scrimmage based on the formation that the defense of the other team is in prior to the ball being snapped. He will check out the other team and then let his team know what the play will be using different code words and hand signals. This is called an audible for you International readers.
Investing In or Owning Drug Lab Properties
February 18, 2010
Clean Up (includes the insides and the outside of a building)
Air out the building
Removal of contaminated materials: Carpets, carpet pads, Linoleum, drapes and blinds, air-filters, refrigerators, range, water heater, all tenant clothing and their furniture.
Removal needs to be to a site that accepts contaminated product.
All people that remove these items need to be specially trained and certified.
Surfaces: Extensive cleaning and replacement if the cooking occurred on those surfaces. After extensive wash down with bleach and other cleaners, seal walls and floors to seal in any contamination.
Ventilation systems: Furnaces and heaters will either need to be replaced or cleaned throughout all ductwork.
Plumbing: You might need to replace sinks, toilets and other accessible plumbing due to methamphetamine odors since meth residual was most likely deposited down the drains.
Repainting: Make sure the walls, ceilings and closets are cleaned, sealed and then painted.
Windows: Make sure they have been cleaned as well as the tracks. If the unit was especially heavily used, replace all of the windows. Doors in and outside need to be painted and door hardware needs to be washed down.
Five Sure Fire Way to Secure Your Financial Future
February 8, 2010
"You can be poor when you’re young, but you can’t be poor when you’re old." That was the tag line used some years ago in a financial services television commercial.
Truer words were never spoken.
I was relatively poor when I was young. Just about everybody I knew was and it was kind of fun. We lived an almost communal lifestyle, sharing money, accommodation, food, beer, cigarettes and other essentials of post-pubescent life. Would it be as much fun if I had to do it again today? Could I do it again? Not on your life!
Now I’m anything but a financial genius but there are five basic principles that I’ve learned and used to secure our financial future. And while far from wealthy, I have every confidence that I will not have to live in a refrigerator box whenever I quit working and that my wife will be able to comfortably carry on in the event of my premature demise. (You should know I’m at an age where I think eighty-five is a premature death!)
Is building a secure financial future akin to rocket surgery? Absolutely not- you need to do five key things to get started:
Retirement ? Its Sooner Than You Think!! (Honestly)
January 29, 2010
Many people hear “retirement” and think- what? 401K? Roth vs. Traditional IRA? Stocks, bonds, mutual funds? Do they?
Or do many people put money away according to the suggested amount and then simply hope that when retirement comes all will work out?
One report I read estimated that 66 million Americans have put away a Whopping $0 towards retirement.
Many people are still thinking there might be a thing called Social Security around when they retire. Social Security: as of 2004, the average annual Social Security retirement benefit is approximately $11,000. That is not a lot to live on folks. Plus, we all hear the news periodically that there might not be any Social Security around when we get older and need it.
And as a further WAKE UP call, I found a calculator which estimated (without Social Security):
- a couple at 40
- bringing in $90k a year (together)
- with very modest investments
would need to save an additional $2,690,000.00 ( yes 2 million +) in order to retire at 65– OR ? plan on working an additional 29 years!!
Now before you get overwhelmed and click over to another article-lets put our heads together and simply cover a few very very basic start up basics.
Straddle Strategies in Option Trading
January 18, 2010
The straddle strategy is an option strategy that’s based on buying both a call and put of a stock. Note that there are various forms of straddles, but we will only be covering the basic straddle strategy. To initiate a Straddle, we would buy a Call and Put of a stock with the same expiration date and strike price. For example, we would initiate a Straddle for company ABC by buying a June $20 Call as well as a June $20 Put.
Now why would we want to buy both a Call and a Put? Calls are for when you expect the stock to go up, and Puts are for when you expect the stock to go down, right?
In an ideal world, we would like to be able to clearly predict the direction of a stock. However, in the real world, it’s quite difficult. On the other hand, it’s relatively easier to predict whether a stock is going to move (without knowing whether the move is up or down). One method of predicting volatility is by using the Technical Indicator called Bollinger Bands.
Why You Need To Buy and Sell Gold Coins (Part 5)
January 9, 2010
Grading coins
The condition of a coin is commonly summarized by a grade. Because the value of collectible coins often varies dramatically with grade and overly generous grading is not uncommon, reasonable grading proficiency is an important skill for collectors. The material presented here is intended only as an introduction to the subject. Grading is a skill that can only be developed over time through referrals to grading guides, consultation with experienced collectors and dealers, and lots of practice.
Published standards set objective criteria for grading, yet some amount of subjectivity is inevitable — even expert graders will often assign slightly different grades to the same coin. While you can often ask an experienced grader for an opinion, being able to make your own reasonable assessment of grade is your best protection.
An overview of American Numismatic Association standards follows. ANA standards are widely used in the U.S. but are not the only system used. Much of the rest of the world uses the grades Fair, Fine, Very Fine, Extremely Fine, Uncirculated and Fleur-de-coin.
Numerals used in coin grades have been taken from the Sheldon scale (see Glossary).
Uncirculated Coins
The Differences Betweeen the Wealthy and Everyone Else
December 29, 2009
I recently received an e-mail from a young lady who had doubts about the principles of wealth found in “Rich Dad, Poor Dad”. She mentioned a couple of past failed investments, and wanted to know what I thought about investing and financial freedom - whether it was just a myth, or whether it could be acquired. I thought I’d share it here for the benefit of those who have struggled with investing, or perhaps from ventures that didn’t quite pan out. Here’s what I wrote back to her:
“Dear ________,
I want to address your point below - because I think you make a very interesting point about money. I do believe that most people have a great opportunity to put Rich Dad’s principles into practice to create wealth for themselves. You said “the rich get richer”…but remember, many who are rich did not start that way (many who have a large inheritance don’t stay rich for long). In fact, they started very poor, with little to no money, and worked their way to freedom. HERE ARE THE DIFFERENCES between those who achieve financial freedom and those who don’t:
Why You Need To Buy and Sell Gold Coins (Part 2)
December 20, 2009
How to Collect Rare Coins For Fun and Profit
Time has proven that collectors tend to make the most money in rare coins because they search out “undervalued coins” and buy during market lulls. Buying in today’s market climate offers you superb upside profit potential.
PUT IN PERSPECTIVE ? Rare coins have an extremely limited, fixed supply which has historically increased in value when demand overwhelms availability. This fact is documented in the enclosed “Dow-to-Gold Report.” It clearly shows how rare coins go up as well as down in price with varying market cycles. We believe the most successful Rare Coin portfolios were built in down markets by systematically assembling a variety of choice, rare, and desirable coins, with a three to five year, or longer, holding period in mind.
HAVE A PRECISE FOCUS ? Thousands of coins have been issued over the past 200 years. Very few collectors are experts on more than a few types of coins. For that reason alone, it’s important to build a relationship with a firm that employs a team of knowledgeable Rare Coin Specialists and Numismatic Experts that are recognized as pillars of authority throughout the industry. Together, we can help you define your areas of interest, your investment goals, and our team of specialists can then guide you to a specific area of U.S. Coins designed to be both profitable and extremely enjoyable.
Find a Methodology and Minimize Investment Madness
December 10, 2009
There are many reasons to be investing these days, and too much opportunity to not have your money working for you.
However, I believe the majority of people dread having to deal with investment matters, and tend to jump into purchases and then hold their breath hoping for the best. After a long day at work and taking care of the family, it’s hard to get excited about reading up on your 401(k) options, Morningstar ratings and fund performances.
If this sounds like you, there are basically 3 choices.
You can have your investments professionally managed, you can continue as you have in the past & keep your fingers crossed, or you can find a methodology that objectifies the investing process (that’s buying and selling investments) and helps you maximize your long-term results.
To determine if you need help managing your investments(and this doesn’t necessarily mean having to pay for advice) you might want to ask yourself these questions:
=> Do I really have the time and interest to follow the market closely on a daily basis?
=> Have I done well in the past managing my own investments?
