#every stock loses value when they pay dividends
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Bonds, tranches, blah blah...
A lot of people don't seem to understand these things, even after Margot Robbie explained it in a bathtub (which, in hindsight, is probably why nobody remembers what she said.)
Basically, take a bunch of loans. Or whatever financial instrument that looks like a loan, or a payment plan that you're expecting to be paid for like rent, insurance, dividends, whatever... anything you expect to pay you money. (Paychecks)
You expect a certain number of those income streams to fail, because they're loans, and sometimes people don't pay. Bad things happen, people get sick, people lose their jobs, people get stuck in court over some s* they said on Twotter. You know, w/e.
So you take a bunch of them together, and based on the law of averages, and/or large numbers, you're mathematically guaranteed to have a minimum amount of income.
That's pretty much the business model of banking. It's pretty simple. You expect a certain % of people not to pay, and when they don't, you're not caught with your pants down because you're still making money.
- Let's take a break from that and talk about stocks and dividends.
Not every stock gives out a dividend. Only certain companies that are making profit are able to do so. The value of the stock is priced based on what the last trade was, and is controlled digitally. (Like how hotels charge more for rooms during comic con)
You can put bids for stock lower than the current price and the algorithm will adjust to whomever paid the least for it (like that one guy who put in a bid for Bitcoin at like $5 when it was $50k)
It's that whole "you get what you negotiate for" in play.
- So what?
So these stacks of paychecks, banks will cut into pieces, percentages, they then negotiate with other banks or financial institutions to sell those pieces for immediate cash, and the buyers will buy them expecting a return on investment. *There's a minimum payout of x$'s, there's a chance of a maximum payment of y$'s, but you're guaranteed a steady revenue stream of at least x$*
And that's why other institutions and investment firms will buy them.
But then they repackage their own Bonds which may or may not include these ones that they just bought. And then cut those into pieces, and repeat the cycle.
- WHY WOULD THEY DO THIS?
On a theoretical and statistical level, if they follow the models and no surprises happen. This is a pretty reliable return on investment. Not great, but you avoid taxes and get a steady stream of income, that may include bonuses every now and again.
- Until the Adjustable-Rates kicked in on the sub-prime loans
Subprime, Those shitty mortgages given to people with no or low FICO scores. (And are blamed for their failure *BUT* many forget why those mortgages failed.)
Adjustable-Rate loans were invented to take advantage of inflation. And they were given out tacked onto subprime mortgages.
Because of these adjustable rates, and I'm not sure if it's the adjustables that caused inflation when they kicked in, or they kicked in because of inflation, but what used to be a steady reliable statistical analysis that made dependable bonds, created a monster that made them incredibly undependable.
Because people started defaulting in higher rates after the adjustables kicked in.
Basically, they turned what was pretty a steady, dependable math equation into one guaranteed to fail because the people paying couldn't afford the Adjustable-Rates.
And because they knew they were sub-prime, there's a good chance the writers knew it.
__End.
So here's my questions that haven't been answered:
Were the creators of these loans expecting them to fail, so that they could scoop up housing? Or did they really expect income to be stable through that period?
Why were the effects of Adjustable-Rates just omitted in the calculations of the stability of these bonds? (Trust me, I was already being told to look out for adjustable rates in my contracts by literally everybody I met in 2005, so it's not like we didn't know it was a bad deal.)
How come the buyers of these bonds didn't read the terms of the loans given out? I mean, not the individuals information of every single person, just the terms of the loans given out to the average customer? Seems like an important detail to include in your manual of how the bond operates.
And finally, why did bankers expect people who were barely expected to pay back what their contract was for, why did they expect them to be able to pay *EVEN MORE* at the time the Adjustable-Rates kicked in?
+The creators of the bonds developed a stable financial tool, as long as no surprises happened, but then they didn't calculate the surprise they knew was going to happen.
Something doesn't quite add up there. What do you think the final piece of that puzzle is?
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How to Invest in Stocks with Little Money for Beginners
Hello, fellow explorers of the financial world! I’m excited to discuss a subject that is dear to my heart and has fundamentally altered the course of my financial life. Today, we’re going to talk about stock investing for novices on a tight budget. You heard me correctly, yes. You can begin constructing your own financial castle without a treasure chest! Together, let’s explore the world of stocks, profits, and wise investments.
The Basics of Investing
Okay, let’s get things going by revealing the mystery of stocks. Think of stocks as tiny pieces of corporate ownership. When you own stock in a company, you have a stake in it. And what’s this? You receive a portion of the profits made as that business expands and becomes profitable! Cha-ching!
But not all stocks are created equal. There are various kinds, each with a distinct history and advantages. You have your steadfast blue-chip stocks, which are comparable to the sage old stock market wizards. Then there are growth stocks, which carry some risk but can pay off with big returns. Naturally, everything in between is also present. It’s like creating your own investment fantasy team!
As you know, great power also comes with great responsibility. Like dragons guarding their treasure, stocks occasionally exhibit moodiness. You never know when your investment will lose value, so you need to be ready for anything.
How to Get Started:
Now that we’ve got the stock basics down, it’s time to gear up and start your investment adventure. Here’s your trusty treasure map:
1. Open a Brokerage Account: Your Portal to Profits
Think of a brokerage account as your gateway to the land of stocks. It’s where you buy and sell those coveted shares. Lucky for us, there are some fantastic low-cost brokerage options out there. Personally, I’ve found TD Ameritrade and Fidelity to be user-friendly and perfect for beginners.
2. Picking Your Stock Warriors: A Quest for the Right Stocks
Tips for Making Your Investment Journey Legendary
Venturing into the stock market with a sack of gold coins or a chest of jewels might sound tempting, but remember, even little droplets can create ripples. Here are some golden rules to live by:
Start Small, Dream Big: Don’t feel pressured to invest your entire kingdom right away. Start with what you can comfortably afford to lose. It’s like planting tiny seeds that grow into mighty oaks over time.
The Market: Don’t let anyone convince you they can predict the market’s every move. It’s like trying to tame a wild dragon—nearly impossible. Instead, focus on the long game and ride out the market’s ups and downs.
Play the Long Game: Investing isn’t a sprint; it’s a marathon. The real magic happens when you let your investments simmer and grow over time. Compounding returns are like the elves of the investment world; they work their magic quietly but effectively.
Reap, Repeat, Reward: Remember those profits we talked about earlier? Well, they aren’t just for buying unicorn saddles. Reinvest those dividends back into your investments. It’s like using a phoenix feather to fuel your financial fire!
Bringing It All Together
Alright, brave souls, let’s recap the epic journey we’ve embarked upon:
Stocks are your ticket to owning a slice of a company and sharing in their profits.
Open a brokerage account with low-cost options like Fidelity and TD Ameritrade
Choose stocks from different sectors and industries.
Begin small, keep your eyes on the long-term horizon, and reinvest those magical dividends.
Hidden Treasures:
Feeling hungry for more knowledge? Here are some scrolls and tomes to deepen your understanding of the stock market:
Investopedia: A treasure trove of articles, guides, and market insights.
Seeking Alpha: A legendary tome for beginners, unlocking the secrets of stock market success.
Read more Articles Here
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Top Advice For Investing In Real Estate
Investing in real estate is a common way to become wealthy. You can buy or secure the title to the land, develop the property’s agricultural potential, or build housing for your tenants. These are all common strategies that can help you become successful in the market. The changes in the real estate market are not just limited to where people live. Unlike the stock market, real estate provides investors with better returns. It is also less prone to volatility. The longer you hold on to your property, the more you can benefit from its value. There are some simple steps that will help you become successful in the market.
1. Choose Your Market and Investment Wisely
It’s essential to consider the local market regarding real estate investing. The success of your investment will be influenced by the factors that affect the market in your area. One of the most critical factors you should consider when it comes to investing is avoiding hot calls. Some investors may boast about how their properties have appreciated or risen in value, but they’re still prone to losing money if they buy at the top. The demand for economic profits drives real estate markets in cycles. Every market is different during its housing cycle, and you should only invest in places in the expansion phase. This is when prices rise, sales increase, and construction improves. The exact market conditions that you’re in should also inform your decisions when it comes to investing.
2. Buy Low
Unlike investing in a stock that pays a steady dividend, real estate investing differs from other investments. The return on your money is based on the commodity you bought, but you have to consider the overall return on your investment. Buying a cheap home in an unsafe area may seem like a great idea, but you will get little return.
3. Find The Hidden Market
If you’re a first-time home buyer, consider buying a distressed property instead of a foreclosure auction. This deal is usually more profitable than a foreclosure sale because it allows you to get a lower price. Instead of finding properties in dire need of repairs, look for distressed properties that have yet to be on the market. For instance, if the family that wants to put the house on the market after the death of their mother is going through a divorce, they might be able to sell it for a lower price.
4. Understand Up Front Costs
Before you start investing in real estate, you must understand the costs associated with the purchase. Aside from the property’s price, you’ll also need to pay for repairs and other expenses. Many new investors need to learn how to estimate these costs. If you plan on buying a home, you should avoid doing any repairs on weekends. Doing so may negatively affect the property’s value and prevent it from selling. Some people also need help planning home-buying costs, such as insurance and utility bills
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Is Investing in real estate in Canada a good option?
It is critical to diversify your investment portfolio. If you put all your eggs in one basket, you might lose everything in the blink of an eye. Numerous people will avoid real estate investments since they believe they are risky or require a significant investment.
Real estate is necessary because everyone requires a place to live, and investing in real estate helps solve this problem while securing the future.
Investors looking to diversify
Real estate is an excellent option if you've currently invested in the stock market or other risky assets but wish to broaden. If you invest cash in stocks and some funds in real estate, you will be less affected if one industry fails. If you have all of your investments in the stock market, for example, and it crashes, as we've seen several times, you could lose it all.
However, if you invest in real estate, you may not lose it all and may even compensate for the loss of investment income.
Real Estate Provides Cash Flow
You can earn monthly cash flow if you invest in a buy-and-hold property. The majority of investments do not generate cash flow. At the very least, they may pay dividends, but you only get them quarterly or occasionally annually. Real estate can be a passive investment, depending on how you manage it.
LJ Immobilier Realties can connect you with a property management company if you buy houses for sale through them. It is critical if you plan to invest in long-distance real estate. It means you won't have to do much work while reaping the benefits of monthly passive income and capital improvements when selling the home.
Tax Benefits
Investing in real estate has tax advantages. Numerous expenses associated with owning an investment property can be deducted, including taxation, interest expense, property management fees, property insurance, ongoing maintenance costs, repair costs, and the cash you pay to commercialize your estate to potential renters. If you sell your home for more than you paid, the profit is not taxable as income.
Appreciation of value
Property values always rise over time. If you buy houses in Montreal they may yield a considerable profit when it comes to selling. Rent prices also tend to grow over time, resulting in increased cash flow. It has long been established that the longer you hold onto your real estate, the more cash you will make.
The housing market every time restores bubbles and crises that cause a decline in home appreciation. Even in the most uncertain of times, prices always get back to normal, and appreciation resumes. Property, as a tangible asset, can be used to capitalize on various revenue streams while also enjoying capital appreciation.
Fulfillment and Control
Many investors find it satisfying to be their boss when they own investment in Montreal Real Estate. You can also make a difference in your community by bringing companies to investment properties that will offer much-needed services to their neighbors.
Investing in commercial properties, residential buildings, or single-family homes can yield significant returns if you do your homework. Whether you are still debating whether you should buy a house, how to buy a house, or are prepared to apply and purchase, real estate investments could increase your income.Get in touch with LJ Immobilier Realties for assistance when planning to invest in real estate.
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Advice That Can Help You Understand The Stock Market
Simple techniques can help you conquer any goal. Whether https://hackedpack.com/ want to learn about the stock market or how to invest your money properly, learning as much as you can about how other successful people do it, will lead you to your own success. Read on for some tips from experts in the field, which can help you to better your strategies.
Don't let greed or impatience control your decisions when it comes to investing in the stock market. Buying low and selling high is a common tip because it makes sense to buy a stock when there's a higher chance that it will rise in price, even if you have to wait for a while.
When considering company stocks to invest in, consider any past negative surprises. Similar to the idea that one pest is typically indicative of more pests in your home, one blemish on the company record typically indicates more in the future. Choose businesses with the best reputations to avoid losing money on your stocks.
Don't try and time the markets. Historical data shows that results come from investing the same amount of money repeatedly over long time frames. Figure out how much you can afford to invest on a regular basis. Keep investing within your budget and do not be swayed by losses or big profits.
Do not let the stock market scare you. Even if the swings of the markets and the turbulence reported on the news gives you pause, consider dividend stocks as a conservative safe haven. Their consistent yields are often better than bonds, and companies with a long history of paying out dividends are just as safe an investment as bonds.
If you're confident doing investment research on your own, try using an online brokerage. When it comes to both commissions and trade fees, online brokers are significantly cheaper than ordinary brokers, or even discount ones. Since your objective is to increase profits, minimizing operating costs is in your best interests.
Locate some undervalued stocks. This may be tricky since the entire market appears to be on the decline. Do a full search for those that have a lower price than their expected stock value in the coming future. If that company is solid, and if they show promise with a low stock price, they may be a good choice.
Use a discount brokerage rather than a full service firm for your trading of stocks, bonds and mutual funds, and keep more of your money. Discount brokerages usually charge lower fees and commissions. There is no point in paying unnecessary fees. The only downside is that a discount brokerage will not give you advice about what to buy and sell. You must make those determinations on your own.
Singles stocks do not comprise the entire stock market. Avoid that way of thinking. You don't need to be fooled into thinking any single stock is safe or risky. Even a perfectly good stock can rise even during a downward market, while a poor stock can fall even when the market is on the rise.
Be mindful of your own personality, psychology and beliefs when you invest. In every major decision you make, you will likely have two choices. The first is the decision that makes financial or physical sense, the choice that looks good on paper. The other choice is usually one that lets you sleep at night soundly and with a clear conscience. Choose that one.
Learn the jargon associated with investments and the market. Before you start investing, spend some time immersed in web sites, books, magazines or newspapers that cover the stock market. Knowledge of key terms is essential to understanding chatter, news and rumors about the market that can prove useful to your investment strategy.
Always stay on top of financial news and trends. Not only is this helpful for any stocks you may be invested in already, but this is also helpful for you to choose which stocks to invest in the future. The Wall Street Journal and New York Stock Exchange websites are two great online tools.
There is so much knowledge condensed into this article that you should feel confident that you can now invest your money wisely. As long as you implement the ideas you've read, you should find that your investments return a profit, which is up to par with your benchmarks over time. Good luck with your new-found success!
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Is your investment history peppered with disappointments? Everyone wants to make a buck in the stock market, but there are some strategies that must be learned in order to find investing success. Read this whole article. The more you read, the more you'll learn, and the better your chances are of earning everything you're capable of earning.
Do not blindly follow the recommendations of your investment broker without doing some due diligence of your own. Ensure that the investment is registered with the SEC and find some background information on the way that the investment has performed in the past. There have been instances of fraud whereby the information presented by the broker was fabricated.
Investing in the stock market does not require a degree in business or finance, outstanding intelligence or even familiarity with investments. Being patient and sticking to a plan, making sure to remain flexible and conducting research, will serve you well when playing the stock market. Going against the grain often pays off!
Aim for investing in stocks from companies that are financially sound and have earning growth that are above the market average. There are over 6,000 publicly traded companies in the United States stock markets, available to choose from. However, applying these criteria reduces your target pool of stocks to just around 200 choices to invest in.
Information is vital to having good management and decision-making skills for your stock portfolio. You must be well-versed in current marketing information in order to create a plan that doesn't make you to lose everything you have. Be sure you have immediate access to all of the prices of the bonds, funds, and shares.
Create your own index fund. Choose an index you would like to track, like the NASDAQ or Dow Jones. Buy the individual stocks that are on that index on your own, and you can get the dividends and results of an index mutual fund without paying someone else to manage it. Just be sure to keep your stock list up to date to match the index you track.
Save money by trading online. Search online for firms that offer cheap stock trading. Quite often, their fees are much lower than traditional brokerage firms. A regular broker will usually charge a high commission, just to make a simple stock trade on your behalf. If possible, try to pay between $7 and $10 per trade.
Adjust your margin of safety based on the reputation, profitability, and size of a particular company. While businesses like Google or Johnson & Johnson are hardy and tend to stick around, there are certain companies that may do very well for a while before crashing. Keep this in mind when selecting stocks.
Don't get discouraged if you make a bad trade. Everyone makes bad trades every once in a while. Instead of being upset or discouraged, take the opportunity to learn from your mistake. Why was it a bad trade? How can you learn to spot a similar bad trade in the future? Use it as a learning experience.
Examine your trade confirmations carefully. When you place a trade through a broker, you will get a trade confirmation via mail or email. Examine it carefully, and if you find an error, contact the broker immediately to get it corrected. Also, hold on to your trade confirmations, as they are needed for tax purposes.
Using a constrained strategy is often a good idea. This is seeking out stocks that nobody really wants. Look for companies that are being traded below their value. Companies that everyone knows about sell for very high. So, there is winchester to these. If you find small companies with positive earnings, you can identify a rose in the concrete.
Avoid companies that you don't understand. If you are able to write immediately in one short paragraph what the company does, how it makes its money, who its most essential clienteles are, how good the management is and where the industry is headed over five years, you understand the company. If you do not know these facts right off the top of your head, you have more homework to do.
You will be ready to trade stocks with more confidence and skill once you have fully absorbed the advice presented in this article. Adjust if you need to and start creating the best portfolio imaginable. Start earning those profits and be the best investor.
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Advice That Can Help You Understand The Stock Market
Simple techniques can help you conquer any goal. Whether you want to learn about the stock market or how to invest your money properly, learning as much as you can about how other successful people do it, will lead you to your own success. Read on for some tips from experts in the field, which can help you to better your strategies.
Don't let greed or impatience control your decisions when it comes to investing in the stock market. Buying low and selling high is a common tip because it makes sense to buy a stock when there's a higher chance that it will rise in price, even if you have to wait for a while.
When considering company stocks to invest in, consider any past negative surprises. Similar to the idea that one pest is typically indicative of more pests in your home, one blemish on the company record typically indicates more in the future. Choose businesses with the best reputations to avoid losing money on your stocks.
Don't try and time the markets. سعر صرف الدولار في لبنان لحظة بلحظة shows that results come from investing the same amount of money repeatedly over long time frames. Figure out how much you can afford to invest on a regular basis. Keep investing within your budget and do not be swayed by losses or big profits.
Do not let the stock market scare you. Even if the swings of the markets and the turbulence reported on the news gives you pause, consider dividend stocks as a conservative safe haven. Their consistent yields are often better than bonds, and companies with a long history of paying out dividends are just as safe an investment as bonds.
If you're confident doing investment research on your own, try using an online brokerage. When it comes to both commissions and trade fees, online brokers are significantly cheaper than ordinary brokers, or even discount ones. Since your objective is to increase profits, minimizing operating costs is in your best interests.
Locate some undervalued stocks. This may be tricky since the entire market appears to be on the decline. Do a full search for those that have a lower price than their expected stock value in the coming future. If that company is solid, and if they show promise with a low stock price, they may be a good choice.
Use a discount brokerage rather than a full service firm for your trading of stocks, bonds and mutual funds, and keep more of your money. Discount brokerages usually charge lower fees and commissions. There is no point in paying unnecessary fees. The only downside is that a discount brokerage will not give you advice about what to buy and sell. You must make those determinations on your own.
Singles stocks do not comprise the entire stock market. Avoid that way of thinking. You don't need to be fooled into thinking any single stock is safe or risky. Even a perfectly good stock can rise even during a downward market, while a poor stock can fall even when the market is on the rise.
Be mindful of your own personality, psychology and beliefs when you invest. In every major decision you make, you will likely have two choices. The first is the decision that makes financial or physical sense, the choice that looks good on paper. The other choice is usually one that lets you sleep at night soundly and with a clear conscience. Choose that one.
Learn the jargon associated with investments and the market. Before you start investing, spend some time immersed in web sites, books, magazines or newspapers that cover the stock market. Knowledge of key terms is essential to understanding chatter, news and rumors about the market that can prove useful to your investment strategy.
Always stay on top of financial news and trends. Not only is this helpful for any stocks you may be invested in already, but this is also helpful for you to choose which stocks to invest in the future. The Wall Street Journal and New York Stock Exchange websites are two great online tools.
There is so much knowledge condensed into this article that you should feel confident that you can now invest your money wisely. As long as you implement the ideas you've read, you should find that your investments return a profit, which is up to par with your benchmarks over time. Good luck with your new-found success!
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Investing in the stock market can bring lucrative rewards. However, it can also bring frustration and failure if the market is not approached correctly. To avoid the possibility of this, investors must have a good understanding of investment and how the market works. The following advice will help you avoid making the worst investment mistakes.
Don't expect too much too soon from the stock market. If you think that you will make a mountain of money immediately, you are mistaken! The only way to make a significant return on your money is to take on a very risky stock. While there's a chance you may be successful, more likely than not you will end up losing some or all of your money.
Do 국내주식 follow the recommendations of your investment broker without doing some due diligence of your own. Ensure that the investment is registered with the SEC and find some background information on the way that the investment has performed in the past. There have been instances of fraud whereby the information presented by the broker was fabricated.
Keep in mind that the value of a stock involves much more than simply its price. It is definitely possible for an expensive stock to be undervalued, and for a stock that is worth pennies to be severely overvalued. When deciding whether or not to invest in a particular stock, there are several other factors to consider that are more important. The price of a stock should be only one small part of the decision.
Like a lot of things in life, there is a risk involved with investing in the stock market. However, if you first invest your time in educating yourself about stock investments, you can minimize that risk. The first step in minimizing risks is to acknowledge that risks are involved. With education and research, it is possible it realize an annual return of 10 to 15 percent on your investment with very minimal risk.
If it seems too good to be true it probably is. If a return is being guaranteed, there's a good chance that fraud is involved. There is no way to take part in investing without some risk and any broker that tells you otherwise is lying. This is not a person that you want to place your money with.
Make sure that your investments regularly have the opportunity to grow by setting up an automatic payment from your daily account to your investment account. Set up an automatic transfer to occur on payday so that you are effectively paying yourself like any other bill. And then watch your investments monies grow.
When choosing dividend stocks as a small investor, many people fail to select wisely and properly. They position themselves in only small-cap stocks that pay a good yield. This is because they do not feel that they have enough money to purchase blue-chip stocks. However, buying three shares of a blue chip stock at a 7.5 percent yield is better than having 100 shares of a small-cap stock for the same amount of money at a 6.5 percent yield.
Investing in stocks is great, but it shouldn't be your only option. Among the investments that you should keep your eye on are bonds, real estate, mutual funds, and sometimes art and gold are very lucrative. You should always consider alternatives to investing in one particular area and if you are thinking of investing large sums of money, consider a diversified portfolio to help minimize risk.
Before even buying your first stock, make sure you know your current total financial portfolio. What are your debts and income? Do you have six months reserve fund saved up? This should be done before buying a single share. Once it is accomplished, how much of your income can you put towards investing? Once you know this, then determine your stock portfolio and automate it.
Now that you have a collection of advice on investing, you should be able to safely invest in the stock market, while easily avoiding the dangerous investment pitfalls that plague many investors every day. You will be able to stay successful in the market, in order to reap the rewards of your efforts.
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Is Real Estate The Best Way To Make Money or Build Wealth? - Charles Stephens
When you earn money from real estate, you can reduce the risk and earn the most profit from your investment, but this comes with an education and expertise. You could be fixing or flipping homes. You might be buying repair-and-fixer-uppers, fixing them, and then renting them out. You could also be purchasing property rentals with tenants and know that you can increase cash flow by removing tenants who are not paying rent and adding features which allow you to increase the rent.
It doesn't matter what strategy you choose so long as you choose one you are comfortable with and have mastered it. You must learn numerous aspects and understand the dangers involved prior to purchasing the first property you invest in. It is important to choose the right location to ensure an investment that is successful in real estate. It will improve your chances of selling your property more.
Real estate is among the most profitable investments that can earn a substantial amount of cash, as long as you purchase properties with solid basic foundations. It is among the few areas that banks are willing to lend money to you however, banks are able to reject nearly half the business loan. Real estate usually grows at a faster rate than inflation. The rate of appreciation for property has been between 3 and 5 percent per year over the last 30 years.
It's necessary for a massive decline like that of those of Great Depression or the Great Recession between 2007 and 2012 to devastate real estate values all over the world. Remember the fact that property is local. As such, local market conditions can deteriorate due to a lack of demand or massive over-building even as the market in the nation is growing steadily. One of the arguments that real estate has to offer is that it's an actual asset. A company can go under and lose any value it has in its stock. It may be slapped with an enormous lawsuit and the dividends they paid goes away.
If you have a quality property, its value will not fall unless the region as a whole is deemed undesirable. If you do not have to sell it in an accelerated manner, you will receive the cash back. That's the reason private mortgage insurance ceases to be a requirement after you have reached 20% equity in the property. This is why investing in real estate is more secure than stock market investments. You can invest in real estate to make capital gains. buying condos with the intention of flipping them to make an income is one instance.
The idea of buying land and then selling it to developers is a different. But, real estate can provide substantial cash flow. It is possible to rent condominiums, apartments as well as single-family homes as well as commercial spaces. This can result in a an annual flow of cash flow for the property owner. Cash flow is supplemented by tax-deductible expenses such as repairs, maintenance costs, tax on property and insurance. There are many methods of calculating the return on investment of rental real property. If you employ the formula for calculating cap rates, an acceptable ROI is 10 percent and 12 percent is thought to be good.
Cap rate commonly employed because the formula is simple. (NOI = purchase price 100 percent). It is important to note that these figures are based on the rent you receive with every rent payment. The appreciation of the property is an investment that you do not get unless you decide to sell your property. If your investments are in the real estate sector, you can attain a million dollars or more net worth since the homes you manage have increased in value over time.
Most of us don't have the cash to buy the property for sale. This is the reason many make an amount of money down for the property prior to repairing it. Then they can lease it out or sell it. Renting it out can generate an income that is steady and has legal protection because you are able to generally remove tenants who are not paying. The cash-on-cash returns take the mortgage of an investment property and it is easy to achieve a double-digit ROI with this calculation.
Flipping the property, or selling it after you've bought it and restored it can yield an income. However, this strategy is more risky than renting real property. It is a loss every month you keep the property, and you have to pay for charges for carrying it, such as mortgages. If you decide to sell the property at a price lower than its value you can lose hundreds of thousands. However when you purchase real estate and then rent it to others, you'll receive higher prices from investors as it is a property with the possibility of earning income for the tenant that is already in place.
#real estate#real estate agents#real estate investors#florida real estate#real estate companies#Real estate brokers#how to become a real estate agent#real estate broker salary tampa#selling tampa cast salary#real estate agent salary florida
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Submission On Monetary Abuse National Plan To Minimize Back Home Violence
Understanding how these companies work and if they’re efficient can lead you to a better choice. It may also assist you to perceive the best choice when pursuing a debt payment solution. Have Credit Card Debt, Collection Accounts, Payday Loans, or Medical Bills?
This company does provide an internet consumer portal, which might help you retain observe of your debt payoff progress any time of the day or night. The portal lets you print stories, send safe messages to your debt advocates, view payments to your creditors, and extra. Debt Reduction Services provides free credit counseling and budgeting help, and you may access this help without any sort of financial dedication.
Contractors should consider using non-public firm accounting alternate options to simplify their financial reporting and scale back their bills. But if you’re considering a number of of those options, consult your CPA to judge the potential impression on loan covenants and different business relationships. Also, run it by your lenders and surety to make sure an alternate accounting methodology is suitable to them.
Chapter thirteen permits people with a gentle revenue to keep property, like a mortgaged house or a automobile, that they could otherwise lose via the chapter process. In Chapter 13, the court docket approves a repayment plan that allows you to use your future income to pay off your money owed throughout three to five years, quite than surrender any property. After you make all the payments underneath the plan, you receive a discharge of your money owed. If you do business with a debt settlement company, you could have to put cash in a devoted bank account, which shall be administered by an impartial third party.
Rationalization Of Financial Institution Reconciliation
– Now, you have to be certain that all your expenses match up with a withdrawal listed on your financial institution statement. There could additionally be a variety of the reason why your bills aren’t listed in your account, similar to funds not clearing in time or being produced from a different account. – Next, you want to examine that each one your withdrawals are recorded in your books. This should embody the obvious expenses, such as rent and payroll, in addition to things you may not but have accounted for, corresponding to bank charges. – Every entry in your books should match up with a deposit in your bank statement.
A financial institution reconciliation will also catch any fraudulent transactions in your checking account since they won’t be recorded in your QuickBooks. The objective of account reconciliation for steadiness sheet accounts is to guarantee that financial statements are materially correct and inside management is working to prevent fraud and errors. Account reconciliation is taken into account part of the complete accounting cycle course of. After reviewing the financial institution statement and account balances, Frank is ready to update his basic ledger. This is where it may possibly get tricky, it’s time to make changes within the type of debits and credit to the general ledger.
Alternatively, companies with a subject sales group should reconcile the value of worker bills payable with the individual balances of submitted expense reports. There is extra more likely to be distinction when reconciling if part of the expenses process is performed manually. For example, companies which sell goods will want to conduct a stock take to ensure that the inventory worth within the steadiness sheet accurately reflects the value of products held in storage. This requires an individual having to bodily count the number of items held. The procedure compares the booked value of what is owed/owned by one company with the balance of its counterpart. These are sometimes cash transactions (i.e. one company lending funds to another) however another widespread example is one firm declaring to dividends to a different in the group.
Once caught up you presumably can observe the steps beneath to assist in completing your bank reconciliation. There are two sides to a bank reconciliation - the bank aspect and the guide aspect. Preparing monetary statements, regulatory filings and different reviews for the interval. And with account reconciliation done proper, the outcomes ought to be based on 100 percent reliable numbers. The extra reliable your numbers are, the more confident your inner and exterior stakeholders will be.
Accounting, Tax Preparation, Bookkeeping, And Payroll Providers
We can help your company’s management staff develop long-term aims and specific strategies to facilitate your business’ future development and success. During our years of experience dealing with many taxing authorities, we've achieved a level of competence that can ensure our purchasers they are being properly represented earlier than the assorted federal and state tax agencies. Donald W. Wilson CPA, PA can help you with the organization and day-to-day tasks of bookkeeping so as to focus on your core business.
We spend time growing personal relationships in order that we can provide a service that is tailored to you and your small business. For a nominal fee, we'll include union reports, certified payroll, workers’ compensation stories and far more. Our skilled workers permit you to focus on the core competencies of your business. We are accounting professionals–you get the specialists working for you and with you.
David A. 會計師事務所 , CPA employs cautious analysis and due diligence to find out a fair asking price, pinpoint essentially the most favorable tax structures, consider monetary and money circulate impression, and assess appropriate enterprise capabilities and techniques. From your company's inception via its progress and growth, David A. Glucksman, CPA can advise you on selecting an entity kind and later restructuring if advantageous. Timely, efficient bookkeeping companies can be found for businesses of all sizes. We help all main accounting packages together with Quickbooks and Peachtree. Burds Reed & Mercer, PC employs careful analysis and due diligence to determine a fair asking worth, pinpoint the most favorable tax buildings, consider financial and cash circulate influence, and assess suitable business functions and techniques.
Donald W. Wilson CPA, PA can audit your system competencies and gauge improve needs in addition to provide assist in selecting and implementing new hardware or community methods. Donald W. Wilson CPA, PA's financial statement companies comprise all three ranges of assurance relying in your company's needs. Honeycutt & Grady, CPA's can audit your system competencies and gauge improve needs as well as provide support in selecting and implementing new hardware or community systems. Honeycutt & Grady, CPA's's financial statement services comprise all three ranges of assurance relying in your company's wants. Glass & Shuffett Ltd can audit your system competencies and gauge upgrade wants in addition to present assist in selecting and implementing new hardware or community methods. Compilations are often requested for inside purposes and are primarily based upon information provided by a company's administration.
General Ledger Account Reconciliation Pointers
I would then record all of my revenue entries and reconcile our deferred income by customer report in opposition to the general ledger. Once again, I found myself pulling data from a quantity of sources, cobbling together a reconciliation, and creating vital audit threat. I discovered myself pouring by way of multiple sources of information and operating many stories to determine this out every month, which was a huge threat from an audit perspective. We aren't addressing two fundamental audit assertions – completeness and existence.
It’s additionally known as an “input error” as a result of, although the number is right, it’s recorded in the wrong account. Accounting errors are usually unintentional mistakes made when recording journal entries. This makes the steadiness sheet reconciliation a crucial part of a company’s financial close. Through trendy accounting technology, the way people work has changed and the stability sheet reconciliation process has become extra automated, built-in, and steady. Income statements are thought-about temporary accounts and are closed at the finish of the accounting 12 months.
If you’re not using accounting software, you’ll have to prepare a reconciliation form, which can be as easy or detailed as you want. The type needs to provide you with enough area to add any outstanding gadgets that may resolve any discrepancies between the two balances. The general journal and general ledger still exist within the fashionable era of accounting, just not in an analog format.
Facilitating workflow automation throughout the process of identification, remediation and reconciliation. Gone are the times when finance and accounting functions existed in silos; now, they feed each other to study from previous efficiency, optimize current efficiency and maximize efficiency sooner or later. Consistency and continuity of processes, guaranteeing that they are maintained across departments and over time. Failure to pay suppliers is bad for enterprise as being behind on funds may find yourself in a loss of service or items from key exterior stakeholders.
Distinction Between Accounting And Auditing With Comparability Chart
The Auditing Standards Board points tips and rule pronouncements that certified public accountants should adhere to in audits and attestations. Accounting is crucial within the preparation of the financial statements of the organization. It is an auditing exercise carried out by in-house or outsourced professionals who assist to verify the interior management measures of the accounting strategy of the enterprise group.
Internal service funds are excluded from the most important fund reporting necessities. Fiduciary fund data is introduced by sort of fund rather than by major funds. Another example is the United Nations, which has been using social accounting since 1946.
Accounting is thousands of years old; the earliest accounting records, which date back more than 7,000 years, have been found in Mesopotamia . Accountancy is the method of communicating financial details about a business entity to customers corresponding to shareholders and managers. The internal audit exercise should evaluate the potential for the prevalence of fraud and the way the group manages fraud danger. 7Although restricted, this isn't meant to preclude distribution of the report to the persevering with accountant. Internal Audit is an audit conducted by staff inside a corporation to analyze its business operations to disclosure weaknesses and assess threat for noncompliance with applicable laws and rules.
Accountants present financial statements representing the various results of money-related enterprise exercise. Auditors create audit stories that they classify as “unqualified” or “qualified.” If the accountant doesn't provide sufficient information, an auditor will inform the corporate that there isn't a report obtainable and advise what next steps are needed. When accounting process ends, auditing begins, for the aim of determining the true and honest picture of books of accounts. It is an activity of report maintaining and preparation & presentation of the financial statement.
Balance Sheets
Receivables are reported net of the allowance for doubtful accounts. Liabilities anticipated to be settled or paid inside one yr or one working cycle of the business, whichever is larger, are categorised as present liabilities. Liabilities not anticipated to be settled or paid inside one yr or one working cycle of the enterprise, whichever is larger, are categorised as non-current liabilities. Assets expected to be liquidated or used up inside one yr or one operating cycle of the enterprise, whichever is greater, are classified as present assets. Assets not expected to be liquidated or used up within one year or one working cycle of the business, whichever is bigger, are categorised as non-current property. An understanding of the steadiness sheet allows an analyst to gauge the liquidity, solvency, and general financial place of a company.
Analyzing the leverage ratios, debt ranges, and general risk of the corporate gives collectors an excellent understanding of the chance involving in loaning an organization cash. These are the monetary obligations that an organization owes different entities. They are categorized into two, present and long-term liabilities.
The owner’s equity refers to your complete funding in property minus any investment you have made. Also known as the “Acid Test”, the Debt to Equity ratio measures the flexibility of the company to use its current property to retire current liabilities. A excessive outcome indicates that an organization is financing a big proportion of its assets with debt, not a good thing. $2.04As you can see, Acme Manufacturing’s liquidity exhibits over $2.00 available in current assets for each dollar of quick term debt – that is acceptable. First, carry out a comparative evaluation by trying at the balance sheets from two or extra accounting periods. For instance, if there's a important p.c lower in the firm's money, it could probably be experiencing financial problems, and it might not be sensible to invest in the enterprise.
EquityShareholder’s fairness is the residual interest of the shareholders in the company and is calculated because the difference between Assets and Liabilities. The Shareholders' Equity Statement on the steadiness sheet details the change within the value of shareholder's equity from the beginning to the tip of an accounting interval. Usually, traders and lenders pay close consideration to the operating part of the earnings assertion to point whether or not a company is generating a revenue or loss for the interval. Not solely does it provide useful information, but it additionally reveals the effectivity of the company’s management and its performance compared to industry peers. These items are typically positioned so as of liquidity, that means the property that can be most easily transformed into cash are placed at the high of the list.
Outsourced Accounting Companies Course Of
For instance, while a bookkeeper handles information entry, a CPA can communicate in your behalf to the IRS and provide financial recommendation. Financial suppliers could be particular person contractors, employees or full-service firms. Our enterprise accounting companies are priced in packages and can be custom-made to fit your service wants.
Curious about how the AccountingDepartment.com virtual accounting process works? We have a 7-step setup plan that's designed to be simple whereas we information you alongside via each motion item. The Sarbanes-Oxley Act of 2002set new corporate accounting standards and imposed extreme legal penalties for financial fraud. Internal auditing allows an organization to find and root out these points as properly. You have to do a point of accounting to run a business, no matter what.
No hiring or training hassles, no price of infrastructure, whereas nonetheless delivering professional services. We’re a result-driven Blended Shore Outsourced Accounting Firm that caters to small companies throughout multiple industries. We convey an impactful change at the intersection of individuals, processes & know-how. BKD annually prepares hundreds of tax returns for individuals, various kinds of companies, trusts, and tax-exempt entities. Improvement Implementation – We right historic accounting, implement new software program tools, enhance existing procedures, automate, combine, doc all routine processes.
12 Branches Of Accounting
Once they’ve found a tax resolution that may help them achieve their objectives, they’ll be in a position to begin tackling the other day-to-day tasks and questions of operating a enterprise. When hiring, accounting companies are like many companies and are in search of a combination of credentials, experience, and the flexibility to carry out the required duties. However, in an more and more aggressive hiring market, many companies are beginning to take a look at soft expertise as useful for brand new hires. However, even though there isn’t a standard payment, most accounting firms are shifting away from an hourly fee structure and choosing to institute to a fixed payment model that enables for higher value for shoppers, a more manageable business plan, and finally an increase in earnings. Starting an accounting agency is like beginning any small enterprise – it requires lots of work. However, industry and consulting companies listing accounting companies as one of the single most worthwhile small companies an individual can begin proper now.
This section accommodates the requirements and steerage associated to engagements to arrange monetary statements. Organizations in particular person countries might issue accounting standards distinctive to the international locations. For instance, in the United States the Financial Accounting Standards Board issues the Statements of Financial Accounting Standards, which type the premise of US GAAP, and in the United Kingdom the Financial Reporting Council sets accounting requirements.
Artificial Intelligence is producing constructive ends in the accounting business. It permits analyzing giant volumes of information at high pace, as nicely as growing productivity and producing more correct data at a reduced value. The significance of AI in accounting is rising extra steadily because it optimizes administrative duties and accounting processes that result in varied structural adjustments.
The staff has received a number of requests to accept characterizations of business mixtures as "unitings of interests" regardless of IAS 22's clear intention that uniting of interest accounting be used only in uncommon and limited circumstances. In addition, the SEC workers, based mostly on its review of filings involving foreign personal issuers utilizing IASC standards, has recognized a number of situations involving not only inconsistent software of the standards but also misapplication of the requirements. 31 In these circumstances, the SEC employees has required adjustments to the financial statements so as to adjust to IASC requirements.
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people praising ronaldo bc he made coca cola lose value in thr stock market. alright none of ya'll know how this works apparantly and no one cares enough to google it, nice
#it was just coca cola paid their dividends to investors that day#every stock loses value when they pay dividends#no one actually lost any money or value bc it was expected
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When Bosses Shared the Profits
After the bruising crises we’re now going through, it would be wonderful if we could somehow emerge a fairer nation. One possibility is to revive an old idea: sharing the profits.
The original idea for businesses to share profits with workers emerged from the tumultuous period when America shifted from farm to factory. In December 1916, the Bureau of Labor Statistics issued a report on profit-sharing, suggesting it as a way to reduce the “frequent and often violent disputes” between employers and workers, thereby “fostering the development of a larger spirit of harmony and cooperation, and resulting, incidentally, in greater efficiency and larger gains.”
That same year, Sears, Roebuck and Co., one of America’s largest corporations, with 30,000 to 40,000 employees, announced a major experiment in profit-sharing. The company would contribute 5 percent of net earnings, without deduction of dividends to shareholders, into a profit-sharing fund. (Eventually the company earmarked 10 percent of pretax earnings for the plan.) Employees who wished to participate would contribute 5 percent of their salaries. All would be invested in shares of Sears stock. The plan’s purpose, according to The New York Times, was to “to engender loyalty and harmony between employer and employee.” In reviewing its first three years, The Times noted that 92 percent of Sears’s employees had joined up and that “the participating employee not only found an ever-increasing sum of money to his credit, but eventually discovered he was a shareholder in the corporation, with a steadily growing amount of stock to his name.”
Sears’s plan was admirably egalitarian. Distributions of shares were based on years of service, not rank, and the longest-serving workers received nearly $3 for every dollar they contributed. By the 1950s, Sears workers owned a quarter of the company. By 1968, the typical Sears salesman could retire with a nest egg worth well over $1 million in today’s dollars. Other companies that joined the profit-sharing movement included Procter & Gamble, Pillsbury, Kodak, S.C. Johnson, Hallmark Cards and U.S. Steel — some because it seemed morally right, others because it seemed a means to higher productivity.
Profit-sharing did give workers an incentive to be more productive. It also reduced the need for layoffs during recessions, because payroll costs dropped as profits did. But it subjected workers to the risk that when profits were down, their paychecks would shrink. And if a company went bankrupt, they’d lose all their investments in it. (Sears phased out its profit-sharing plan in the 1970s and filed for bankruptcy protection in 2018.) The best profit-sharing plans came in the form of cash bonuses that employees could invest however they wished, on top of predictable base wages.
Profit-sharing fit perfectly with the evolution of the American corporation. By the 1950s, most employees of large companies had spent their entire working lives with the company. Companies and their employees were rooted in the same communities. C.E.O.s typically worked their way up, and once at the top rarely earned more than 20 times the average wage of their employees (now they’re often paid more than 300 times more). Over a third of private-sector workers were unionized. In 1958 the United Auto Workers demanded that the nation’s automakers share their profits with their workers.
Some remnants of profit-sharing remain today. Both Steelcase Inc., an office-furniture maker in Grand Rapids, Mich., and the Lincoln Electric Company, a Cleveland-based manufacturer of welding equipment, tie major portions of annual wages to profits. Publix Super Markets, which operates in the Southeast, and W.L. Gore, the maker of Gore-Tex, are owned by employee stock ownership plans. America still harbors small worker cooperatives owned and operated by their employees, such as the Cheese Board Collective in my hometown Berkeley, Calif.
But since the 1980s, profit-sharing has almost disappeared from large corporations. That’s largely because of a change in the American corporation that began with a wave of hostile takeovers and corporate restructurings in the 1980s. Raiders like Carl Icahn, Ivan Boesky and Michael Milken targeted companies they thought could deliver higher returns if their costs were cut. Since payrolls were the highest cost, raiders set about firing workers, cutting pay, automating as many jobs as possible, fighting unions, moving jobs to states with lower labor costs and outsourcing jobs abroad. To prevent being taken over, C.E.O.s began doing the same.
This marked the end of most profit-sharing with workers. Paradoxically, it was the beginning of profit-sharing with top executives and “talent.” Big Wall Street banks, hedge funds and private-equity funds began doling out bonuses, stock and stock options to lure and keep the people they wanted. They were soon followed by high-tech companies, movie studios and start-ups of all kinds.
Even before tens of millions of Americans lost their jobs and incomes in the current pandemic, the pay of the typical worker had barely risen since the mid-1970s, adjusted for inflation. Meanwhile, ever-greater wealth continues to concentrate at the very top.
Since 2000, the portion of total national income going to American workers has dropped farther than in other rich nations. A steadily larger portion has gone into corporate profits, which have been reflected in higher share prices. But a buoyant stock market doesn’t help most Americans. The richest 1 percent now own half the value of all shares of stock; the richest 10 percent, 92 percent.
Those higher share prices have come out of the pockets of workers. Daniel Greenwald at M.I.T.’s Sloan School of Management, Martin Lettau at the University of California’s Haas School of Business and Sydney Ludvigson at N.Y.U. found that from 1952 to 1988, economic growth accounted for all the rise in stock values, but from 1989 to 2017, growth accounted for just 24 percent. Most came from “reallocated rents to shareholders and away from labor compensation” — that is, from workers.
Jeff Bezos, who now owns 11.1 percent of Amazon’s shares of stock, is worth $165 billion overall. Other top Amazon executives hold hundreds of millions of dollars of Amazon shares. But most of Amazon’s employees, including warehouse workers, don’t share in the same bounty.
If Amazon’s 840,000 employees owned the same proportion of their employer’s stock as Sears workers did in the 1950s — a quarter of the company — each would now own shares worth an average of about $386,904.
There are many ways to encourage profit-sharing. During this pandemic, for example, Congress should prohibit the Treasury or the Federal Reserve from bailing out any corporation that doesn’t share its profits with its employees.
It’s impossible to predict what kind of America will emerge from the crises we’re now experiencing, but the four-decade trend toward higher profits and lower wages is unsustainable, economically and politically. Sharing the profits with all workers is a logical and necessary first step to making capitalism work for the many, not the few.
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419 You Can't Eat Gold
https://moneyripples.com/2020/09/03/419-you-cant-eat-gold/
I want to talk about gold in this episode and the basic concept behind it. Where it’s good and where it’s far off the mark. It’s about buying real assets.
But here’s the thing, you can’t eat gold, silver, and even property. And this is the key thing that we are going to focus on in this video.
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Listen to our Podcast here:
https://www.blogtalkradio.com/moneyripples/2020/07/22/419--you-cant-eat-gold
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Hello, my fellow Ripplers! This is Chris Miles. Your Cash Flow Expert and Anti-Financial Advisor. And I want to welcome you out for a wonderful show. Show that is for you and it’s about you. Those of you that work so hard for your money, and you’re ready for your money to start working harder for you. Now! You want to be able to work because you want to not because you have to. You want to create that freedom. That cash flow. That prosperity. Today! Not 30 or 40 years from now, but right now. So you can have all that freedom to do what you want. To be with those that you love. Doing what you love, right? But on top of that, it’s so much more than creating your own freedom for yourself and be able to live and consume and buy hot, you know, hot cars and airplanes and all that kind of stuff, right?
It’s about living a life of meaning and purpose. About creating a ripple effect through the lives of others. And that’s what it means to be a Rippler. Is that you’re here to make the planet a better place by you being on it by being a creator, not a consumer. By means, someone who actually creates something more than just your life of own consumption. And so guys, welcome to the show. Thank you so much for bingeing for sharing this with others and making this show bigger and bigger all the time. And that’s in large part due to you guys. So thank you so much for being here.
As a reminder, check out our website, MoneyRipples.com There’s great blogs on there. You can actually watch videos of these same podcasts. As well as on YouTube. And of course you can check out that free e-book Beyond Rice and Beans, Seven Secrets to Free Up Cash Today. Where you can be able to find more money, to be able to put it to use. Getting it working for you now. So check it out!
So today I want to talk about a concept. Really, this is probably going to be a long podcast. This might be one of my shorter ones, for sure. But I want to talk about, you know, gold, silver, and those kinds of things, and really the basic concept behind it and where it’s good and where people that talk about it. Even the people that seem to be smart about investing could be far off the Mark here. So, you know, I actually just saw a video recently with my wife. She showed it to me where Kiyosaki in an interview last May. He said, Hey, you know what, right now I think buying gold, silver, you know, oil, you know, that kind of stuff is great. You know, buying real assets, which I 100% agree with. I think you should buy real assets, not the paper versions of them. Right?
Now, I’m not talking about buying like the, oil, you know, the oil ETF and things like that, right. Or gold or silver ETFs and things like that. Don’t buy mutual fund versions of these things. This is not what we’re talking about here. He’s talking about buying real assets, including real estate, right? Things of that nature. And which I definitely agree with. Now, I don’t always agree with Kiyosaki at every aspect. And that’s fine. He’s got his opinions and I’ve got mine and he could be right and I could be wrong and I could be right and he could be wrong. And it doesn’t matter. Right? What really matters is that I like to always go back to the core principles of wealth. The core principles of what really makes money work. Now, he mentioned that gold and silver would be great. He actually mentioned that silver would be better than in gold.
And he’s been saying this for years and I’ve been saying something similar too. It’s interesting because gold up until recently looked like it was doing way better than silver, you know, because when people are running away from the markets, right? A lot of times, especially they see money being printed like crazy. They start running off to gold and silver and I’ve had clients ask me this. They’ve been asking me this for months. And I’m like Chris, with all this money being printed by the feds and allowing the government to start pumping cash out to the people, do you think gold and silver is the place to be? My answer is this. Is that, do not bank on buying gold and silver. You know, now, again, I’m not giving investment advice or anything like that, but if you’re trying to play and ride the markets, this could be a very risky venture.
Plus, you got to understand that these things do not create income, passive income. To me, that’s where there’s real financial freedom. And it doesn’t mean that gold silver couldn’t be good. Right? He even mentioned Bitcoin, by the way. He mentioned Bitcoin as well. Hey, I’ve even done some stuff with Bitcoin and made some money off of it. Right? You know, which is funny because two and a half years ago, I said, don’t buy it well after it crashed, that’s what I did. I said, Hey, I’ll put a little bit of money in, but very tiny amount of money. This is like money that if it disappeared, I wouldn’t even know it’s gone. Right? I actually made some money off of it. Cause the Bitcoin did go up from where I thought it was a low and I was right.
But here’s the thing, is that, you cannot eat Bitcoin. You cannot eat gold. You cannot eat silver. You can’t even eat a property for that matter. Although at least to the income coming off of it can help. The truth is, is that you can only eat food, right? And this is the key thing I want to focus on because so many people think, Oh, gold and silver, that’s the place to be, especially as a, as a good hedge. I totally agree. When I buy gold and silver, I actually look at it as an inflation hedge. I look at it as Jerome Powell, insurance, right? When the feds keep printing more and more money, I look at it as like an insurance policy. I buy as a protection against me. Now I’m going to put all my money there. No way, no way. This is like a small teeny piece of my portfolio. Really. It’s actually a piece of my savings.
If you remember, I had just a few weeks back, did a show called how to diversify your savings. Right? I mentioned gold and silver a little bit there. You know, I do diversify and put a tiny amount of that money in gold, silver as an inflation hedge in case the dollars gets wasted. Now I’ve got my life insurance that also does do well in addition to that. So I’m not so worried about all my money becoming worthless, right? But definitely I don’t believe in being very heavy, like very, very cash heavy where it’s just sitting in cash, earning point, nothing percent in the bank, you know, I’ll keep some money there, but I’ve got moneys elsewhere. You know, that’s why I have the life insurance to help pay me much better. Tax-free dividends. I’ve also got some gold and silver, you know, for that reason, it’s almost like this insurance policy to protect it.
I look at as the same investment strategy as this. If you guys know who Mark Cuban is, he was on the TV show. Shark tank. Well, still is. I should say. Owner of the Dallas Mavericks, you know, very outspoken guy. It’s interesting because when he sold his company off, right, he sold it to Yahoo. Back in, right around Y2K. And when he sold it, they paid him in Yahoo stock. They didn’t pay him cash. They paid him in Yahoo stock. Now 2005 comes around. Google hits the scene, right? Google started becoming the big monster of choice where Yahoo just disappears into nothing. That’s a little bit. Well, their stock tanks while Google’s is going up from 2005 on that’s when Google stock came out. Well, you know, what’s interesting is you think Mark Cuban would have lost money. And technically he did at the same time, he didn’t. Because what he also did with that stock, that Yahoo stock, he also bought of his own money.
Put options. Put options for those you don’t know, it’s essentially you’re gambling on that stock going down. You’re betting against that stock. So he bought a put option where it makes money. If the market goes down and when you buy an option, an option has much bigger volatility, more influx, than you would get with a stock. So if the stock goes up, then the put option goes down big time. If the stock goes down, the put option goes, goes up big time. So you make money when the market, when the stock drops. And this is something I tell you when I was teaching people how to trade stocks and options is, Hey, buy a put option against this stock to protect yourself. So it was kind of this married put strategy. Well, that’s what he did. He did a married put about the stock, where he had the stock ownership and he bought the put option against it.
So when Yahoo tanked, his put option made a lot more money, or at least pretty good close to the amount of money he was losing in the Yahoo stock. Which allowed him to have more cash which allowed him to still have money there. That is exactly how I see gold and silver. Gold and silver is the same thing. Essentially, when the, you know, the dollar is tanking was losing value. Usually, usually. Not all the time. Gold and silver goes up in value, right? When that, because people go running to flee to those areas to go buy more and that drives the price up. Well, cool. When it does that, that means the price of your cash goes up essentially, right? Again, I don’t like to be heavy in those metals because the truth is you can’t eat it and there’s no real utility without the ability to exchange it. It doesn’t matter.
So I’m thinking like doomsday. Right? Okay. So I always like to go to the doomsday part because I want to expect the best, but prepare for the worst. So when I look at it, I think of, okay, I’m going to buy physical gold and silver I’ll even buy 10 of ounces. That’s easier to trade because we ever got the point where the dollar say worst case collapses. No one wants to even use the dollar anymore. But gold and silver still has intrinsic value, which over history it has. Great. I can use it to exchange. Here’s a key point though. What happens if people are starving? And we saw this when COVID first started, you remember the toilet paper shortage. It didn’t matter how much gold and silver you had. You couldn’t buy toilet paper because it wasn’t there. Right? This is true.
Even with like certain meats. I mean, we couldn’t even find chicken. You know, like the type of chicken we buy, it was gone at all the grocery stores. What do you do then? See, understand that just because you have money or just because you have gold, silver Bitcoin, doesn’t matter just because you have those things. It doesn’t mean you get the very necessities of life. And this is what I mean by you cannot eat gold. You can’t eat this stuff. Now. I’m not saying you don’t have it. I’m not saying it’s not a good inflation hedge, but I’m not buying it as like the way to bank and essentially have my own money. Even Bitcoin. I’m not even using it as a way to exchange money digitally. The truth is by the way, the U S is probably gonna create their own digital currency in the next few years. Anyways.
That’s why they’re hiring. That’s what they’re recruiting people out of these types of digital currency companies to help them do this. Like it’s already written on the wall. You can already kind of see it happening. We’re going to go the digital currency at some point. Anyways, we’ve got a coin shortage for that matter. I mean, come on. How do we get a coin shortage? Seriously? So there’s something going on, right? This is why, again, I don’t trust on just banking on things. You know, things don’t matter. It’s about what you can exchange it for. If I were to give you any good investment advice. And I don’t say this often, I’m saying you’re gonna invest in anything. Buy food. Buy food that could be sustainable. You know, you might buy food that could be considered a luxury. You know, my wife even talk about buying chocolate, you know, she’d have the stores of chocolate saying, Hey, you know what people, if they’re at the point where they’re starving, chocolate could be like a delicacy at that point. Which is true, you know, so, okay, cool.
That’s, I’m not saying you buy chocolate. I’m just saying, if anything, guys make sure that as part of your reserves, right? Not just your investments, but part of your reserves. Gold and silver is fine or whatever. You want to have a little inflation hedge on your money. But I would say first and foremost, build up your food storage. Maybe a few or ways to be able to have few and take care of your needs. Essentially emergency prep, right? I’m not saying you go totally extreme. I’m not saying guns and ammo and all that kind of stuff too. Although that might not be a bad idea either. That’s stuff that we definitely look at buying as well, but I’m talking about like actual food. By the way, inflation hedge wise. Guess what usually goes up and costs first when there’s inflation. Food. So if there’s a shortage on food, then there’s definitely a price hike.
But even regardless. Even if there’s not a shortage on food, food goes up with inflation. So at least you got something like that. Now I’m not talking about buying junk that expires tomorrow. And you could do like what we do, where we rotate through the food. Cause sometimes the expiration dates on good foods might be less than a year or two, you know? So you might have to rotate it. Like keep that storage of the food up. Keep storage of water. You know, if you’ve watched the movie Dune, right? If you remember Dune back from the eighties, that was gold. Was water because it was a precious resource. If there’s a drought, we need water. Right? And that’s a basic necessity of life.
So guys, when I’m talking about this, I’m really talking about having your basic necessities met. Money can’t always give you everything you need in life. In fact, there are many times when money doesn’t matter. People, if they can’t eat gold, they can’t drink silver. You know, but you can’t drink silver. But if you can’t have those things, you cannot survive. People will go for their basic necessities. Make sure that’s there first. Make sure you have your basic necessities. Don’t go hoarding. And I’m not saying like, just stuff your house full. And then you can walk for it. Do everything with proper wisdom in order, right? But I’m telling you if you’re looking for a good investment to invest in, great buy a little gold and silver, if you want, but go towards food and water first. Go for those basic necessities first, because if anything happens, power goes out and you can’t get to the ATMs. Hey, people may not be using gold and silver. They may not care. You want to go for something that people value and necessities of life are part of that value.
So, anyways, guys, that’s kinda my thing here today. That’s something that’s been on my mind for months. I’ve been wanting to share with you guys, but you know, Hey, it’s always good to play good offense, but make sure you have a good defense too, right? And no team can win with only a good offense and that we’re not win easily with a good offense. You’ve got to have both. You’ve got both. You have peace of mind. You have security and you have confidence. And when you have that confidence, you move forward differently. You make better financial decisions and you make more money. It’s just like, love begets love. Hate begets hate. Well money begets money. When you have those things in place and you have confidence in place, more will come, more security will come and everything that you need is there. So guys, I hope you make it a wonderful and prosperous week. And we’ll see you later.
#Chris Miles#Anti-financial Advisor#Cash flow#Cash flow Expert#Debts#Entrepreneur#Financial Freedom#Money Ripples
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The How: Companies, Research, and Strategy. (Part 1 of 3)
A story of Sea Limited, Invitae, and Fastly
Ask an athlete how they got where they are now, and you’ll get a very generic “hard work and determination” response. This is not a bad thing, because the answer is someone’s life story. Each athlete got where they were in a unique way and each athlete’s way there was not better or worse than others… Many roads lead to the same place.
So, when I get asked about my approach to growth investing (not an expert < 1 year), I typically give a generic response. Usually not to hide any secrets, but because no one truly wants to see what goes into that. They usually just want a, “I look at blank and blank and invest in it until blank or….”, so I provide that and move on.
But if I am wrong, here’s three examples that illustrate my approach….
My new year’s resolution was to truly grab a path to financial freedom. I kicked around many ideas to make this a reality but settles on the stock market. So, I kept my 401(k) on autopilot and completely forgot about it. I wanted to open a brokerage account that could beat that retirement plan and eventually get to $1,000,00.00 before I retire from the military in 10 years. Bold plan, but I worked on mapping everything out… calculators, formulas, investment approaches, books, YouTube, etc. I was so certain this was possible, but I needed to budget heavily and make sure I could stick to my funding goals.
At the beginning of the year, I thought that focusing on dividend paying stocks would be solid. I would just use those quarterly dividends to buy more shares and over time those dividends would be larger and larger and at 4% average dividends per year, you would passively make $40k a year once a million is hit. I certainly could live with that, so I stacked the top performing dividend yielding stocks. It was a fine approach and once I get to that point dividend investing would be great. I learned quickly that dividend investing keeps you rich, while growth investing makes you rich (yes, debatable… blah blah).
The third week of January I sold every stock I had purchased, which was fine because it was essentially a break even and I would expect partial dividends at the end of the quarter. Now I was on the search to find the next Apple, Google, and Amazon, before anyone else.
January 16, 2020 – Fastly (FSLY) - 24.17 a share
In my search of the next big thing, I wanted to focus on the fastest growth stories I could find. I wanted a strictly technology company that was going to change the world. What I found was… Well, a shit ton of those companies. Like really… It was too simple… I thought I was missing something. With limited money though, I also needed a way to really focus on choosing the best of these companies. I needed rules to follow, to multiply my money, the quickest way possible. It was in this moment I knew that I made the right choice and though this wasn’t going to be a get rich quick scheme, it certainly could be a get rich quicker plan.
My January “Matt’s Investing Rules” I created during many lunch hours in our conference room at work:
1. Relatively newer SaaS companies that focused on growth over earnings.
I wanted companies that focused on subscription-based customers. I wanted all money from these companies going into growing the company, instead of sitting on cash. I don’t care if a company is profitable if this is the reason.
2. I wanted a small market cap company.
I like to look at every company as potentially growing ten times. If I can find a great company at $1 Billion market cap, I can assume that getting to $10B would be more likely than investing in Apple and thinking it will get to become 20 Trillion-dollar company. I felt Apple, Google, Amazon, and Microsoft was too easy. They are all amazing and will keep growing and making you money, but I wanted to get the next wave of companies.
3. I simply had to believe in a future with them being important.
This is probably the most important and the reason I developed so many great skills in researching companies. It forced me to watch hours upon hours of videos and presentations of companies (granted 1.5x speed settings) I was interested in. I learned as much as I could about the company and the people in charge of it, for I really liked investing in companies that are founder led. Skin in the game was appealing to me.
With these rules set in place, on January 16th, I found Fastly, Datadog, Zoom, Livongo Health, and Crowdstrike. These have all multiplied many times since then, but I don’t think that’s going to stop anytime soon. With that said, Fastly was the first company that I truly felt connected to… you know, in a weird investing way.
I found these companies, specifically Fastly, by searching for most recent IPOs (Initial Public Offering) and searching for companies that met my three basic rules. Focusing on Fastly alone—
Fastly appeared to me as a gem. A golden ticket, winning lottery number, and a double rainbow all rolled into one stock symbol: FSLY.
I knew little about what the hell they did, besides them being a less than $2 Billion dollar SaaS company, that made the internet run faster. Therefore, rule number three was crucial in developing a bond with each company I invested in. I went to The Motley Fool to read their free articles. Investopedia, Seeking Alpha, and so many other sites. I wanted to know more about this company, but it really seemed like no one really knew what they did. I remember getting exciting and losing sleep, thinking I was some genius and all I wanted was to learn more. I didn’t want to think I was seeing something people were missing to later find out I was the one missing something and lose all my money.
To learn more, I took a very interesting approach. Kidding. I just went their webpage, YouTube account, and Twitter. And out of these three, YouTube was all I needed to validate my belief in this company. Their founder and at the time CEO, Artur Berman was unlike any CEO I’ve ever seen before. Take the time and watch this sub 4-minute video of him years ago talking about how SSDs are important…
https://www.youtube.com/watch?v=H7PJ1oeEyGg
He did not come across as someone who wanted to just grow rich from owning a mediocre company. PowerPoint slides littered with swearing and a total lack of professionalism. He certainly didn’t fit the CEO mold either when it came to looks. He reminded me (still does) of Jobs and Woz combined as one person. I was sold already, foolishly, but I wanted more so I searched all videos featuring the company and Artur.
Artur Bergman IPO Day CNBC on Cloud Computing and Competition:
https://www.youtube.com/watch?v=M57NtJeDKLU
Why Fastly?
https://www.youtube.com/watch?v=O0wbl9GlG-E
Obviously, I watched at least 10 more hours of videos from conferences and use cases of their company, but this is just laying out my process--
I could not see how a company that seemed so authentic was so undervalued, though, I had no idea at the time how to value a company. I just knew at the time Snapchat was considered a $13B company and Fastly basically made everything run faster. I felt the use case of Fastly, though underappreciated, was worth far more than the sub $2B market valuation.
I invested in this, along with those other gems found on the 16th of January. Over time, Fastly hardly moved, it was not performing at all. I was expecting quick money and grew frustrated with Fastly. I had seen the likes of Crowdstrike and Zoom grow in share price and for a brief period in time thought I was going to just sell Fastly and put all the money into Zoom at like 75 dollars a share (now obviously above $408 a share now lol). I decided against selling my shares and focused on the long-term goal. What I thought this company could be was still possible. Everything was going according to plan, aside from the price skyrocketing. Fastly taught me patience.-
February 27th, I told a close friend that Fastly would essentially make him rich… then the stock market collapsed.
March happened and for some reason the crash made Fastly’s stock price collapse. I remember one day it was at or close to $8 dollars a share. Clearly, I was not going to sell the shares at this much of a loss. Instead, I doubled downed. This company had enough cash on hand to make it through a year of expenses. They were a SaaS company so most of their customers had already paid for the year in January. I kept thinking, more like reassuring myself, that Fastly should benefit from work at home. The more people had to rely on the internet, the more Fastly profits. So, at $11 a share, or more than a 50% discount, I purchased 50 more shares. Now I just needed to wait…During the year, Artur Bergman stepped aside from being the CEO of Fastly. He remains with the company but stepped down to focus on the technology and growing the best company. He made the CFO the CEO and it worked out as planned.
Fastly hit $116 dollars a share in August, which made it, at that time, my fist 10x stock. It now sits are $82 dollars a share, which I can live with.
The company is still under $10B dollars of market capitalization. I will continue to hold on and wait for the next 10x… oh and I will be consistently buying more shares.
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Hi guys! I I'm an ENXP and I was looking for some advice about knowing myself better. I saw the mods are ENPs and maybe you guys could help me. I recently noticed a pattern regarding my own actions that is basically ruining my life. I seem to rely too much on my Ne, specially about my future and my career. I'm ruled by a need of pursuing anything that catches my attention in a determined moment. I obsess over it for a while and then move on. I've changed my major 4 times now. Every activity I do is temporary. And if I don't find something I can obsess over I get depressed and bored. Anyways, I think this has led me to not trust myself anymore, since I can't commit to anything because I lose interest in everything and I'm always looking for new possibilities. I have reached a point where I can't allow myself to pursue everything I want and I have to make decisions and commit. But I'm too scared to become trapped and take responsibility for my own decisions. I think this would be easier if I knew myself better, but I don't think I know who I am besides my own random interests, which is weird I guess. How can I develop my own Fi? Or Ti? How do you guys deal with your dominant Ne? How do you commit to things? I'm 23 by the way. Shouldn't I have developed some Fi or Ti or something by now? I turned to mbti because I wanted to gain a better understanding of myself but holy shit this is hard. I could only recognize my dominant Ne. All this self analysis seems useless if I don't really know myself, I realized I'm not self aware at all. So anyways, as fellows Ne doms how did you guys developed your auxiliary functions? Any advice will be amazing! Thank you guys for everything you do here!
The first thing you need to do is recognize is you are an Enneagram 7 and all of this is ‘normal’ for them in lower health levels. To overcome this, you have to ‘grow up’ as a 7 and stop allowing fear of commitment or quick loss of focus from dominating your life. You have control over yourself, you are not utterly helpless to your whims (said the Fi user who has a moral tone of ‘you make your own choices and messes and you have to get out of them’ ;).
7s have to learn to be open to the scary idea of commitment to reap the dividends of hard work.
Read the 7 profile and see how allowing yourself to ‘run away’ from commitment (which includes not finishing or devoting yourself to any project) can hinder your life. Once you recognize WHAT you are doing, and WHY you are doing it, you can develop the power to STOP YOURSELF from doing it, or from allowing ‘excuses’ or fear to run you away from good things.
ENTP Mod. : Charity is right. Here is also where the judging functions come into play. With Fi, you can eventually weed out that which you aren't personally passionate about/ those goals which don't align with your personal values. With Ti, you can see a chain reaction of the patterns in your life, and determine the most effective path to help yourself using logic to streamline your processes, make it more elegant.
Slow the hell down. Force yourself to stop running toward the future and live right now. Repeat the mantra of ‘right now is all that matters today’ a 100 times an hour if you have to. Be present. Be invested. Bring yourself into ‘now.’
My co-mod is a 7w6 ENTP who suffers from a lot of the same issues; I will nudge her to offer her two cents to this post, in regards as to what she is currently doing about it. Basically, she had to talk herself into getting a permanent job rather than talking herself out of it. Once she got into it, she realized it didn’t suck as much as she feared. Her brain is her own worst enemy.
I had to talk myself into this job. I gave myself lots of reasons why I would love it. It might sound a little unrealistic going in with pre set expectations but at least you will not go in blind. Making a pros cons list is always a good idea. It helps to sift through your multiple ideas, and narrow down the ones which can really work. Test out the feasibility of your ideas, opportunities before hand. Talk to people, do your research. Just remember that things will never be as bad or boring as you think them to be. This is a cliche but something which helps me in the mornings when I know I have boring work to do is "Get up, dress up, show up. Never give up." Also it helps to live from day to day. Don't worry too far into the future, you never know what variables might upset your plans.
Work-wise, a 7 needs to travel, get the ‘high’ of meeting new people, and not to be involved in sheer detail-driven grunt work. They need challenges to work toward and obstacles to overcome. Pick a career that offers you all of that. If you do not, you will have a string of 6 months at ___ jobs that do not look good on your resume. Find a career in something that you feel passionate about, that offers some kind of mental stimulation.
ENTP 7 co-mod is an attorney who loves to find ways to ‘get around things’ in the law.
ENTP Mod. note: Always try to remember the root of your passion when you feel like defecting from one option to another. If you must leave, leverage what you have learned in one place and how you can dress that up to make your hopping about look good. That's what I did, and it worked for me. Some of the reasons I love my job are the constant intellectual stimulation, creative aspects of it, my love for criminology pays off, meeting interesting people. Sure there are sucky days when you have to deal with the bureaucratic demons. But that won't be every day. Unless your role requires you to do something like it. In which case I would suggest that you avoid picking up detail heavy, low Si or adherence related work which will make you feel miserable and frustrated. Try to pick something that plays to your strengths, improve your weaknesses. Compete with nobody but yourself. Every day you are better than you were, yesterday. Even with a little effort. It is important to not give up. It is so hard for 7s but we have the gift of rationalizing. So instead of using it as a mechanism to justify dropping things, use it to tell yourself why you should stick around. You as a 7 can make most things fun. So find little tricks and ways to make the work day fun. Whether it is achieving small, impactful targets or making games out of small, low stakes things. Also, having money and being able to live nicely is fun. Nobody is gonna pay you if they think that their money will be wasted on training you if your pattern is just leaving jobs. It took me a long time to develop this perspective but I am glad I did.
I (ENFP 6w5 sp/so) chose a career in magazine editing, because it gives me time to do what I actually love, which is write novels. I’m afraid I can’t give you advice from my own life that would work for you, because a 6w5 sp/so is far more focused and driven to finish their projects than a 7w6, which means I push through ‘the boring, tedious bits’ of projects regardless of how ‘excited’ I am. It’s not fun to edit a book 7 times, but I still do it. I force myself to show up to work, to sit there for 3 or 4 hours, and commit to X amount of words, pages, etc.
Do you think it’s “fun” for me always to keep this queue stocked, or to type up characters at the end of a long day because the queue is low? Or go back and update old profiles and move them from this blog onto wordpress? No. I hate it sometimes. It’s boring as hell. But I committed to it, I will see it through, even though looking into my “to update” folder makes me want to scream. I tackle huge projects one step at a time. I’m disciplined but I can procrastinate at work, rather than doing whatever needs doing.
Which really is the bottom line. You want to finish things? Just do them. Force yourself to show up and do the work, even if it’s “boring.” Most of life isn’t fun. Paying the bills isn’t fun. You do boring stuff to make a living, so you can have the money to do fun things. If you do not learn to do it, whether or not it is fun, you will wind up ‘stuck at home this month, because I have no money.’
That frustrates a 7 even more than being bored at work.
Accept that your fear of commitment is a fear-driven lie.
You are not going to get trapped by committing to something or someone. Head types massively over-think things and allow fear – in the 7’s case of “missing out” on better things – to dominate their life. Admit it’s fear. Admit that allowing fear to ruin your entire life is stupid. Then do something against the fear. Do the thing fear tells you not to: commit and work at it. Fight the urge every day to leave. Stick it out, and prove you ‘can’ to yourself.
Middle functions. You’re in college so you should be seeing either some Ti analyzing or Te “buckle down and set goals and get this schoolwork finished by the deadline” kicking in. Are you more inclined to self-doubt and beat yourself up like a young FiTe user after ‘failing’ to organize your time efficiently or to make excuses and blame external circumstances like a young TiFe user?
My Fi has always been strongly evident, though I didn’t know what it was at the time. Things that set off a NOPE response in me vs. the ‘rest of everything, which I don’t care about.’ The intense sensitivity as a child. The compassion for other people and especially for small animals. The understanding of emotional dynamics and how people ‘feel.’ The constant angst between caring too much about people’s feelings and being low Te blunt or rude when I’m having an off day. The ‘going away from everyone’ to deal with my feelings in private. I have always fiercely, Fi-ishly known what I like and do not like, and have no ability to ‘tolerate’ things that I do not like. Once, I didn’t like half the people seated at my table at a public event, so I shut down completely and did not say a word to anyone at the table for two hours. My Fe friend also hated them, but smiled and charmed them all. Lucky girl. She can fake her feelings. I can’t.
- ENFP Mod
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