How to Make US Government Spending Habits Work Toward Your Investing Process

How to Make US Government Spending Habits Work Toward Your Investing Process

We are better than most world economies only because we are sinking slower. We are however still going under. I see the direction of the U.S. government as something we, as its citizens better off not fighting but joining.

Here are some musings/observations about our economy that we as investors can use to our benefit.

1. There is no reward for savers anymore. We punish people who do everything right. Savers earn nothing on their bank deposits, and the purchasing power of their savings falls further every day. When the interest rates are lower than the rate of inflation, simply saving or investing in low risk instruments such as treasury or municipal bonds doesn’t work.

2. The Government DOES however reward indebtedness. My financial plan now includes going into as much debt as I can. The Government rewards people who take on more debt than they can manage. I watch people who haven’t made a mortgage payment in years and still live in their house, which never gets foreclosed.

3. The Government devalues our money by printing more whenever it’s convenient to cover its ever increasing debt. Therefore what seems like a large amount of money today will amount to nothing in the future with the inflation of the dollar.

4. Many Americans believe they are entitled to something. The lower income populations feel entitled to Government handouts and the rich are entitled to lower taxes than the rest of us. Middle income people pay the fare and don’t expect rewards.

5. Government insurance of banks assures them they can’t fail, no matter how many bad loans they make. We created a penalty-free environment for stupidity. Use this to your advantage.

You’ll lose when you play against the Government. Don’t play against the Government, play with them. Don’t work hard to pay off debt. If you really want to go all the way, skip a few house payments every year, and invest that money.

Before you start skipping house payments however, be sure to refinance your house and get as much equity out of it as you can. Remember, the Government doesn’t reward you for having equity in your house. You don’t get to deduct anything on your taxes for home equity, but you can deduct a second mortgage interest.

Once you’ve borrowed to the limit at long term and low interest, pay back the loan with as little of the principle as you can manage. If you can get an interest-only loan, all the better. If you can get a thirty year loan at under 3% interest, you’ve got the best of all worlds.

The plan is to pay back as little principle as possible. Emulate your role model, the U.S. Government. After 30 more years of inflation, the annual income of the average household will be $500,000 a year.

If you managed to borrow a half million dollars during that time for example, go ahead and pay it back. It will be like having a $50,000 loan today. It’ll be chump change. Retire the loan and thank the Government for the continued devaluation of the dollar.

You could invest the principle for 30 years and get rich using their policies, while paying practically nothing for the money. This is my retirement plan. Imitation is the sincerest form of flattery.…

5 Necessary Advice for Investors In Stock Trading

5 Necessary Advice for Investors In Stock Trading

Investing in the Internet is a new huge trend and it’s worth to know for beginners some basics. So, I would like you to have a look at the following stock trading advice for the novices.

I need to say, the people who want to be involved in stock trading need to know much. This is the knowledge about different situations on the market, security of types of trades. Of course, nobody is perfect about it. But certainly some tips exist about making the inputs more beneficial

Where Should You Invest

Today so many sites exist for online trading, such as TradeKing, E-Trade, Scottrade. All of them may be used by newbie for advice and they help to find a brokerage firm with attractive rates of commissions. These sites also have free courses and important tips for successful trading. Plus they may offer deals, as free accounts for trading for a special gap of time.

The Investment Advice: Learn the Basics.

The Ropes for novice investors is understanding the utilities and the operations in trades. The basis orders, fro example stop-loss and limit and other more complicated operations are available.

Initial Tools for Stock Trading

Learning the stops and limits are vital for successful trades on the initial stages. Direct purchases and sells or orders they all require permanent watch, however other exchanges let investors to make safe nets for purchases and sells that helps to create better trading. And it doesn’t have to be viewed all the time.

Making Inputs to Learn Trades and Orders

The novices in investment have to practice to use the limit of stop orders and will make fell free to invest. Free trades are available at and at related sites. Though, real trades are to help newbie to understand the importance of trades and real risk.

A good experience may be received through handling small amounts of money. One of the clues to success in trading is the low buying and higher sale that is attained by variability in a security. Novice in investment can use the tools at online companies and it will help them to be good at trading.

Looking for Indicators

There are indicators that can aid the investors to foresee the next move according to the security. But it doesn’t give the whole picture, as there exist different techniques to make an analysis of the presented course within the particular time. The tips here are: days of success or raising/falling tendency of the market.

The above mentioned tips and advice can undoubtedly help newbie in investment to understand the mechanism and tendencies in order to gain a return from that. First, they need to choose a good site, study the orders, search for potential indicators and then practice, of course. That will help a new investor make a notable progress in his online trading.…

Easy Tips to Start Investing Tomorrow

Easy Tips to Start Investing Tomorrow

Most people know that they should invest their money. Over time, well thought out investments can out-perform most simple savings accounts. But the idea of actually starting an investment can be paralyzing.

What should you invest in?

How much money should you invest?

Where do you even start?

First things first – do you have a broker?

A broker is a person or institution which facilitates the sale and purchase of investment vehicles such as equities (stock) or mutual funds. Now, if you’re just starting out, you’re probably not going to get much interest from the big investment firms. Instead, consider using a simple online discount brokerage. The fees are generally smaller and the initial monetary commitment that is required is lower.

After you’ve set yourself up with a broker, you need to transfer money into the brokerage. How much you start with is entirely up to you – but remember, many brokerages will have a minimum amount that is required to open an account. When you first start investing, it’s often easiest to begin with the minimum amount and contribute more as you grow more comfortable.

Next comes the tough part – what do you invest in?

When you’re first starting to invest, there are generally two options that people consider: equities or funds. Equities generally refer to the purchase of stock while funds, such as mutual funds or ETFs, refer to collections of investment vehicles, some of which may be equities. While the choice is yours and you should certainly research it further, most people often find it easiest to start investing in mutual funds or ETFs because it gives them exposure to many companies at once, rather than taking a risk on a single stock pick.

Then – just get started and make a purchase! While some people might feel tempted to wait for the “best” price, in reality, no one can predict what the economy will do with 100 percent accuracy. You might not get the best price, the stock might go down, and it might go up – but as long as you intend on holding it for the long term, you’ll be able to weather the storm. In fact, many people find it advantageous to contribute regularly to their investments. Over the course of a year, this “averages” your purchase cost – at times you’ll pay the best price and at times you’ll pay the worst, but on average, you pay something in the middle.

Finally, always remember that a simple savings account is an investment as well.

It’s a very conservative investment and it won’t make you a huge amount of money, but if you are uncertain of how to proceed, it’s never a bad idea to simply stash that money away in a savings account.…

What Is an Investment?

What Is an “Investment”?

Investing or the making of an investment cannot be confined simply to the world of economics and finance. While it is true that it is most commonly seem in that frame of reference, it is broader and is actually a part of every person’s life.

Investment, as I like to define it, is the act of putting effort into something now in the hopes of getting a return later. It can be almost ANYTHING – time is a very common investment. Take fitness, for example: you put in time at the gym now, so that you end up with a healthier body and better physique later. In a sense, as I write in my blog, you are trading time now for more time later.

There are hundreds of types of investments. From stocks, bonds, and mutual funds (and all of the types in each), to government investment in military or infrastructure. The list is essentially never-ending. But these are not the type that matter most, though I do find them an essential part of financial security and freedom. Examples of investment outside of the markets or government often include investing your time in another person, – much like Multi-Level Marketing (MLM), or the way businesses often use franchises – investing time and effort into cultivating your intellect, or investing money in a toy, movie, book or other item that will bring you some sort of happiness. The reality of the situation is, a large portion of the things we do are technically investments, and the return on investment is simply our incentive. And, as I hope we are all aware, incentives drive the world, and drive 99% of everything you or I do.

So whether it is your goal to lose 60 pounds this year, or whether you want to start your own network of multi-level marketers, remember that you’re making an investment. That knowledge alone will give you an extra incentive to work hard to achieve your goal.

On an ending note, look for articles or blog posts in the future to learn in detail about each type of investment. And learn to expect that no matter what, if someone is putting time in to something, they want to see something out of it. So maybe, just maybe, learn to be a skeptic and not always trust that a friend or co-worker’s motivation for helping is completely pure. Because, well, it MIGHT not be.…

Reasons and Benefits of Doing Business in Thailand

Reasons and Benefits of Doing Business in Thailand

Known as the Land of Smiles, Thailand is country of exquisite beauty, historical treasures and hospitable people. The incredible natural beauty, the world-class cuisine, tropical climate and relaxed lifestyle are some of the major reasons to start a new business in Thailand. Starting your own business in Thailand is the best way to enjoy the enamored lifestyle and earn a comfortable living in the Kingdom. Thailand is the second largest economy in the 10-nation ASEAN. The nation is rich in natural resources, such as timber, rice and precious stones. Textile, jewelry, tourism and electronic appliances are also some of the bigger players that add to the GDP of the nation. Starting up a business in this country is not a straightforward process. In order to run business successfully in this country, there are several important issues to be taken in consideration.

How to start a business in Thailand:

According to the Foreign Business Act (FBA), Thai government restricts business categories for foreigners. (Except for U.S. citizens who can engage in the business under the same rules as Thai nationals – Thai treaty of Amity). The foreigners are restricted from engaging in some business categories, unless a permit is obtained.

The most common way to initiate a new business venture in the country is by having a partnership with a Thai citizen. The labor, immigration and foreign investment laws are quite complex in Thailand, and hence a foreigner or alien cannot take part in day-to-day activities of business and requires a Thai national partner to run the front part. One can also think of opening a limited company in Thailand, but just remember, the Thai government restricts foreign investment in industries, like banking, transportation and communications. All the company documents are to be filed in Thai language and one may require professional help. The foreign owner shareholders can have only 49% and 51% is given to the Thai shareholder.

Benefits of starting new business in Thailand:

Thailand is considered as one of the region’s most attractive foreign investment destination. Thai government offers many incentives to the foreign investors. Incentives include tax exemptions and other generous concessions, permission to own land and import duty exemptions. However, foreigners are not allowed outright ownership of land.

Foreign Business Act is the main governing body that outlines the types and categories of businesses open to foreigners. It also sets the laws and regulations and restrictions for specific sectors such as insurance business, real estate and financial institutional businesses. To run your business successfully in this country, you require knowledge about the country’s Foreign Business Act, legal system and tax laws.

Unlike most of the other countries where it takes 38 days to start up a business, it takes on an average 33 days to start the business. Manual labor and construction is very affordable here as compared to other nations. The large, adaptable and intelligent workforce increases the potential for development and success of business. This regional center for trade and manufacturing has become an attractive place for doing business.…

How to Plan for Unexpected Expenses When Running a Business

It sounds ironic to plan for the unexpected. But, in business, it could mean the difference between surviving or failing in the event of an unplanned situation.

As a business, you are bound to face unexpected expenses from time to time and it’s necessary to prepare for them. It could be anything from equipment repairs to sudden opportunities that require additional capital you may not have planned.

Whatever the case is, the first step to prepare for the situation is to be in a solid financial state. In this article, we’ll discuss further how you can build an emergency fund.

Protect Your Business From Unexpected Expenses With These Tips

  1. Build up an emergency fund.

An emergency fund is usually a few months of expenses in the bank for your business. It’s like a rainy day fund which you set aside for when emergency expenses occur. These include:

  • Equipment breakdowns
  • Utility problems; and
  • Unprecedented business growth

Having an emergency fund provides a sense of security that you have enough funds to tide you over in lean times. It also means having enough money when the need arises without resorting to other options such as borrowing money with high-interest rates or tapping your personal funds.

  1. Track your expenses

Make it a habit to account for everything you spend.

Start by listing your fixed expenses: lease, taxes, insurance, and payroll. Then look at your financial history in the past year, along with your bank and credit card statements to identify the irregular expenses you have paid.

Tally up the amount and whatever is above your regular expenses, factor it in when calculating your emergency fund.

  1. Cut back expenses where possible

Aside from saving money, also prioritise cutting down your expenses. Review your finances—cancel subscriptions you haven’t used in a while (e.g. SaaS tools you no longer need) and shop around for better rates.

It is also where prioritising preventive maintenance and repairs matters. When detected early, you can address issues quickly, for the less amount you would pay for emergency repairs. It shows that while paying for maintenance may seem counterintuitive, it sure can keep your equipment and utilities in good shape, saving you a lot of money and headaches in the long run.

  1. Plan Ahead

Concerning the above point, it makes sense to plan for the events that are bound to happen in your business. You cannot accurately consider an equipment breakdown as an emergency expense when maintaining it to prevent such serious issues is one of the responsibilities of running a business.

Protecting your business from unexpected expenses mostly boils down to planning for things that could go wrong. Anticipate them and build up a decent emergency fund—you should be fine.

  1. Build Your Credit Score

Even with an emergency fund, there will come a time when you will have to borrow money to get started.

Having a high credit score can do several things, the most important of which is proving to the bank that your company has good financial records and is trustworthy. The interest rate on your loans could also be lower. Some of the ways to improve your credit score are as follows:

  • Pay your bills on time
  • Pay off your debt and keep your credit card balances low
  • Do not close unused credit cards
  • Apply for a new credit account only as needed


Running a business can catch you off-guard when things don’t go as planned. But, don’t let unforeseen expenses get in the way of your success.

Find a financial modelling company that offers consulting services and financial forecasts and projections to help you create a budget that accounts for unexpected expenses. They can also assist you in implementing strategies to reduce your expenses and further fuel your growth.

Get professional advice on unexpected business costs today.


The Frenzy Behind Online Stock Trading

The Frenzy Behind Online Stock Trading

Markets dealing in shares and stocks are considered as liquid, supporting and driving the viscosity and density probability factors at a given period of time. Therefore, an investor runs the risk of incurring loss in trading if he/she is not updated with the ongoing market dynamics.

Online trading is an exciting new way of trading in the stock markets in India, and the rest of the market in the world for that matter. Online trading exposes the user to numerous options that leads to efficient and effective result of the investor’s trade. This is the way to ensure better market access, high-speed transactions, etc.

There are number of strategies that are meant for online stock trading in India. The main benefit of online trading is easy money. Another attractive points of online trading is that trader can trade in each and every type of security such as IPOs, bonds and mutual funds.

Thanks to online platform, an investor can keep himself/herself informed by way of collecting the required information on all the topics associated with stock analysis and research. Other than that, an investor or trader is also able to get help by seeking expert views that are again based on stock market and the desired shares. Other than that, traders receive real time information for carrying out trades, something which is unavailable while conducting live trade. This information includes market watch on particular stocks, stock graphs and charts, etc. Orders can also be placed via phones even if you are offline.

Indian stock market is considered as one of the biggest stock trading markets in the continent of Asia. With the help of a consistently high GDP as well as a dynamic and buoyant economy, India is continually outgrowing other economies in this region. And with the advent of online stock trading, the trading in Indian market has become all the more convenient.

In India, for carrying out online stock trading or any online investment, you need to open an online trading and demat account. For all those who are not informed about demat account, it refers to dematerialization account. It is meant for holding the securities electronically instead of holding it physically. The functioning of a Demat account resembles that of a bank account. All the buying and selling of shares are also adjusted in this account.

However, in case you wish to carry out online trading of stocks and that too in a cost-effective manner, you are expected to have clean credit track record, a pre-requisite of opening an online trading and demat account. Other than that, it is advisable to rope in a financial adviser while figuring out a trading or investment pattern, something which is important for efficient channelization of your money.…

Characteristics of a Victorious Real Estate Investor

Characteristics of a Victorious Real Estate Investor

To become a successful real estate investor one must have the capability to identify good real estate deals and invest in them. You should also be able to assess the true value of properties based on when you expect to sell. Your purchase must be made at a reasonably low price to allow for a profitable sale at a later date.

Real estate investing is a strange type of profession that has no accepted curriculum of formal training. The only way to learn the art of successful art of investing in real estate answer is for you to find a mentor who can teach you the secret formula. You must become an adept at appraising and finding out the true value of a property as this information is critical to make an informed investment decisions. Realtors, appraisers, and banks determine what a property is worth by studying recent comparable sales in the same neighborhood. You must be able to do the same.

Leveraging is key factor for investors in real estate because the less cash you part with on each transaction, the more properties you can buy with your total available money. If you are long-term investor, leveraging will work in your favor if the markets in which you invest appreciate in the long run and your income from the properties can pay for most of your monthly debt.

Exit strategies are also equally crucial to successful investing. As a real estate investor you must know exactly when to sell the property even as you buy. You must completely study the market and your work out your plan even before you invest. Real estate investors can help you interpret market indicators such as the average length of time houses have been on the market. This information it will help you make better investment decisions.

Successful investors make it a point to review their portfolios at least once a quarter and work aggressively to get rid of the losing properties before they can seriously erode the profits from their winners. Bestow enough attention to protect your properties from creditors, plaintiffs, and the taxman. It is no doubt complicated, and time consuming – but yet every successful investor takes the time to do it, thus assuring that their hard-earned money is not imperiled.

To succeed in real estate investing, you must cultivate the art of moving with people as the business is built around people – sellers, tenants, contractors, agents, financiers etc. Since there is no written code of ethics for investors, it is up to each investor to decide how he will deal with customers, tenants, sellers, workers etc.

Do your market research thoroughly and look at houses that are priced lower than comparable properties in the neighborhood. Purchase the property with the lowest possible cash down-payment and get the seller to carry back a second mortgage or deed of trust for the property. If you can get a low enough price and generous terms you can make almost any property into a successful investment.

Finally, one last important rule for investing in real estate is – do not become sentimental about a property that you are purchasing for investment. Always look at the property from the viewpoint of a critical purchaser and a businesslike investor.…

How Stock Market Trading Happens

How Stock Market Trading Happens

The stock market has puzzled many people over the years with its behavior. Not many so called analysts have been able to make predictions that are always right and that is because price movement of stocks are dependent on a variety of factors like political developments, economic news, company performance of the stock, influence of foreign institutional buying and so on. In short, it is just another market that behaves as per the demand and supply existing at a particular point in time. It can be compared to a big super mall where people are either buying or selling stocks. For every buyer, there is a seller and vice versa.

This transaction of buying and selling of stocks is facilitated by a stock exchange. The New York Stock Exchange is one such example. As compared to earlier times, when you had to be physically present at the exchange to trade stocks, modern trading is done through online trading portals that are owned by brokers and many people have been able to do so from the comfort of their homes.

Let us look at one example of how a stock trade happens.

You first need to open a trading account with a broker and also a deposit amount with which you can trade in a specific quantity of shares depending on the price of the stock you wish to trade in. You then place an order to buy a particular stock at a particular price and the quantity could be say 100. The trading platform will communicate to all networks that somebody wants to buy 100 shares of a particular company and this immediately results in an interested seller of that stock to make available 100 shares at the price you wanted and the transaction is done online. Hundred shares get transferred from the seller’s account to your account.

Several such trades keep happening through the working hours of the stock exchange on a daily basis and the relevant brokerage fee; taxes to the government and so on are all adjusted online in the trade that is executed.

Now the decision of what stock to buy is based on valuation of the stock and that is determined by the profits the company is generating, the future potential of the company or the industry and the time the buyer is willing to remain invested in that stock. Those are aspects that merit discussion separately.…

Property Management Tips For Investment Property Owners

Property Management Tips For Investment Property Owners

Property management knowledge and experience is very important when it comes to managing the properties that are in your portfolio. The care and attention that a property manager takes with an investment property can make a huge difference to the success of an investment property.

If a property manager is careless with the management there are several things that can happen, some of which are listed below:

1. Rents will start to accrue and will be difficult to recover, even to the point where there may have to be legal proceedings

2. Tenants damage the property

3. Maintenance is not kept up to date and over time what would have been ‘repairs’ become ‘replacements’ which is a much more expensive exercise

4. Rents are not achieving full potential because the property is not as attractive and competitive as others on the market due to it looking ‘tired’

5. There is major damage to the property and tenants are not removed promptly

So to ensure that your property will be managed properly here are some tips:

1. Research the area and find out where the good property management teams are. Speak to them and interview them to find out exactly what services they offer and what charges they make.

2. Check that they send you monthly reports on the property and three monthly inspection reports. In this day and age there is no excuse that they cannot take dated photos to send to you.

3. Tell them that you would like to inspect the property with them at least once a year so that you can personally keep updated.

4. Discuss with your property manager your purpose for owning this property as regards cash flow, costs, future goals (rehabbing or freshening up between tenants, etc) so that they know exactly how you want the property managed.

5. If you find that you cannot get the satisfaction you want from a property management team do not hesitate to finish with them. Before you do though, make sure that it has not just been poor communication that has caused the problem and one which can be fixed quite easily.

As a property investor you are in the business of property investing to make money so you do need to take responsibility of the running of it as a business. You need to treat the property manager as an extension of your business and ensure that there is good and frequent communication between both parties. Don’t do as I have heard being done, not make contact then 12 months later wonder why everything is not going as well as it should be. Insist on those reports and make sure that you are reading them and giving them the tick of approval.…