What Your Adviser Didn’t Tell You About Investing, AQ & A

One of the biggest mistakes entrepreneurs make is to neglect the “cash” portion of their money … many are not even aware that there must be such a thing. The second biggest mistake is to look at how money works in the same way as it does for “big goals” (equities).

The following questions and A’s assumes that portfolios are built around four main ways to reduce economic risk: All securities meet the highest standards, produce additional funds, differ from the “old”, and are traded if the “fair” profit is obtained.

1. Why should a person invest in order to earn money; Aren’t equities better ways to grow?

Yes, the goal of social media is to make “growth”, but most people think of growth as a rise in the market value of their assets. I think about the magnitude of the amount of new capital created by the fulfillment of profits, and the inclusion of profits when the new capital is recouped using “proceeds” to distribute assets.

Most counselors do not see the benefits and warmth and sophistication of the ideas I make … either with a tax code that does worse than what you have found, or a legal system that allows people to sue counselors if looking back shows a wrong turn. probably taken. To be honest, there is no harm in doing so.

Most people would not believe that, in the last 20 years, 100% investment would have been the “three” major “successes” of the “complete return” market … using an annual dividend rate of about 4%. : Percentage per year:

NASDAQ = 1.93%; S & P 500 = 4.30%; DJIA = 5.7%; 4% Closed End Fund (CEF) portfolio = 6.1%

  • * Note: in the last 20 years, CEF taxpayers have provided about 8%, tax-free, less than 6% …

Try looking at it this way. If your record is making less money than you are deducting, something should be sold to cover the expenses you are spending. Most financial advisors would agree that at least 4% (overtime paid) is necessary for retirement … without regard to travel, grandchildren’s education and emergency events. This year alone, more money should come from your head coach.

  • Similar to the standard annuity start-up program, many retirement plans take into account the annual reduction of an adult. On the other hand, the “retirement ready” program leaves the heir leader as it grows its annual retirement income for retirees.

How much should you pay for your purchase?

At least 30% for anyone over the age of 50, then economic divisions such as retirement are growing … In general, no more than 30% in retirement age groups. Bigger responsibilities can be harsh, but is it real wealth to realize that you no longer need to be financially responsible?

As an additional security measure, all investment funds must be included in the Investment Grade Value Stocks and the various group of CEFs, thus ensuring cash flow from the rest of history, on a regular basis. But the secret from day one is to calculate all the dividends based on real estate rather than market value.

  • NOTE: When prices are high, CEFs earn a lot of money and diversity in managed programs that allow them to participate in a less risky market and earn more than their earnings and ETFs.

Using “operating costs” instead of what is happening in the market or from time to time, allows the borrower to know exactly what extras (dividends, interest, deposits and transaction fees) should be invested. This simple approach will ensure that all incomes increase year by year, and will accelerate significantly until retirement, when the distribution of the property remains stable.

  • The distribution of goods should not change based on market or interest rates; The needs they receive and plans to reduce their retirement risk are of paramount importance.

3. How many different types of financial security are available, and

There are several essential types, but the variations are varied. To make it easier, as well as risky, there are US Government Loan and Agency Loans, State and Local Government Securities, Corporate Bond, Loans and Preferred Stock. These are well-known brands, and they usually offer fixed fees that are paid annually or quarterly. (CDs and Money Market Funds are not for money, their only risk and various “opportunities”.)

Flexible reserves included with Mortgage Products, REITs, Unit Trusts, Limited Partnerships, and more. And there are billions of Wall Street mysteries that made up ideas and “traunches”, “hedges”, and other ways that are hard to understand. .at the level needed to invest wisely.

In many cases, high yields indicate a significant risk to individual safety; complex adjustments and adjustments increase the risk quickly. The current yield varies with the type of security, the quality of the provider, the length of time until maturity, and in some cases, the conditions in other companies … and, of course IRE.

4. HHow much does it cost?

Short-term interest rate (IRE, appropriately), start a pot of current yields and make things as fun as the yields on existing interest rates are changing with “different” price movements. Yields vary widely between brands, and currently range between 1% due to market risks of “no risk” up to 10% on oil & gas MLPs and other REITs.

Corporate Bonds are about 3%, stocks favor about 5%, while most CEF taxpayers make up about 8%. Free CEF taxpayers generate about 5.5%.

  • The proliferation of revenue opportunities, and there are sales for every type of currency, the best rate, and the most time to invest as you can imagine … not to mention the global opportunity and the list. But without exception, closed funds pay more than ETFs or Mutual Funds … are not around.

All types of bonds are expensive to buy and sell (marking on bonds and new preferences should not be disclosed), especially small, and it is impossible to add to the bond when prices fall. Shares preferred by CEFs are almost equities, and it is easy to trade prices when they go both ways (i.e., it is easier to sell for a profit, or buy more to lower the price and increase yields).

  • During the “economic crisis”, CEF yields (free and taxable) almost doubled … 2012.

5. How do CEFs earn more money?

There are several reasons for this significant difference in yield yields for investors.

  • CEFs are not mutually exclusive funds. It is the private sector that sells the funds that drive the security record. In contrast to joint ventures, depositors buy shares of assets in a company only, and there are a limited number of shares. Mutual funds provide unlimited numbers of shares whose value is always equal to the Net Asset Value (NAV) of the fund.
  • The price of CEF is determined by the strength of the market and can be above or below the NAV … thus, it can, in some cases, be purchased at a lower price.
  • Reconciliation funds focus on a full return; CEF fund managers focus on making money.
  • CEF raises funds through IPOs, and puts the funds in a safe place, most of which are donated as a benefit to the shareholders.
  • A stockbroker can also offer their favorite stocks at a fixed price for a small portion that they know they can find in the market. (for example, they can sell something simple, 3% they like, and invest in bonds that pay 4.5%).
  • Finally, they negotiate bank loans for a very short period of time and use the money to buy long-term securities that pay higher interest rates. In most markets, short-term prices are much lower than in the long run, and credit times are as short as IRE would allow …
  • This “complete lease” has nothing to do with its reputation, and, in the event of a crisis, the manager may suspend the lease temporarily until the fixed interest rate has been paid.

As a result, real capital investment has more revenue than what is provided by IPOs. Participants receive benefits from all items. For more information, read my article “Investing Under The Dome”.

6. What about Annuities, Stable Value Funds, Private REITs, Income ETFs, & Retirement Income Mutual Funds

Annuities have a number of unique features, none of which makes them a good “money”. It’s a great protective blanket if you don’t have enough money to make enough money for yourself. The “flexible” types increase the market risk to the equation (at a higher price), based on the fixed annuity financial values.

  • She is the “mother of all commissions”.
  • They pay penalties that, in fact, hold your money back for up to ten years, depending on the size of the commission.
  • It guarantees you the minimum interest rate on which you can reimburse you for your life expectancy or real life, if longer. If you are hit by a car, the payoff stops.
  • You can pay extra (i.e., reduce your salary) to benefit others or guarantee that your successors will receive something when you die; otherwise, the insurance company gets the rest of it regardless of whether you exit the program.

Stable Value Funds assures you of the lowest yields you can get in a regular market:

  • It includes very short straps to reduce price fluctuations, so in some cases, it may offer less than Money Market Money. Those with a few high-end papers include insurance “wrapper” that guarantees price stability, at an additional cost to the beneficiary.
  • It is designed to promote Wall Street’s erroneous instability in market volatility, risk-free and natural interest-free security.
  • If the prices of the stock market return to “normal” levels, these bad games can end.

Secret REITs are the “father of all commissions”, anonymous portfolios, much lower than those sold publicly in a number of ways. Take the time to read Forbes’ article:
“Choosing Money To Avoid: The Private REIT” and Larry Light.

Income ETFs & Retirement Income Mutual Funds is the second and third best way to participate in the stock market:

  • Provides (or tracks prices) of various personal security portfolios (or shared funds).
  • ETFs are good because they look and feel like stocks and can be bought and sold at any time; The obvious disadvantage of many is that they are bound to follow indices rather than to make money. The few that appear to produce 4% less (just for information and not acceptance) are: BAB, BLV, PFF, PSK, and VCLT.
  • In the case of Retirement Income Mutual Funds, the most popular (Vanguard VTINX) has a 30% stake and offers less than 2% of real money.
  • There are at least 100 “informed” non-taxable and taxable CEFs, as well as 40 or more CEFs and / or CEFs who pay more than the ETF or Mutual Fund.

More questions and answers in Part II of this article …