| |
| |
|
Stocks & Mutual Funds Information |
|
|
|
Long-Term Investment In Todays Market?
The stock market is very unstable at this time going up and down while interest rates are so low you want to be a borrower and not a lender. Would you like some suggestions on how can you get the most out of low interest rates while being assured your principal will not disappear while you are trying to make some money? Of course, there is always the danger of borrowing the money and then spending it just because it is there. So, would you also like to know what is the best way to borrow money at today's low rates without spending it? Buy real estate. Not any real estate but real estate that will hold its value, even if single family houses go down. It is apartment buildings. Because apartment rents are still going up, the value of apartment buildings have the best chance of appreciating while everything else goes down. Low interest rates mean that you can have a positive cash flow at real estate purchase prices you would have lost your shirt on, even two years ago. Rates are currently 4.5% to 6.5% interest rates when we used to pay 9% for apartment loans just a few years ago. Apartments have become a better investment for two main reasons. First, carrying costs (interest costs) have been going down. Second, income has been going up, substantially. Can things be better than this? YES IT CAN. I have developed two programs. One is to take people with a small net worth and build an estate or self directed IRA (tax free retirement plan) that is worth up to $800,000 in 15 years and that generates an income of $60,000 per year with both still going up after that. For those that can put together $100,000 to start I have developed a second program where the numbers come in at $1,300,000 net worth, with a $100,000 annual net profit and in only 10 years. Unbelievable? And, with low risk as well! This comes out to be a 25% annual return with no roller coaster stock market ride. I figured out how to do it and it really works. I have done it before and I know many now retired senior citizens that have done it in the past. The problem today with most 50+-year-old baby boomers is that they never got started in build a retirement fund. So now, instead of having the normal 30 years to build a retirement fund, they need to be there in 10-15 years. It might take one year of financial hell to come up with some cash. (That means no money for anything except accumulating cash) But after that, it can be a sweet painless ride to wealth. The best part is the possibility of failure is less than 10%, if my steps are followed First: The money is not touched for 10 years. That is why a trust fund, IRA or a self directed retirement plan is a great place to put this. Second: I have taken my 30 years of real estate experience to develop exactly which properties will give the biggest appreciation and cash flow and also be the best risks. Interestingly, almost everyone I talk to picks the wrong locations to buy until they hear the whole list of criteria. Now that I have told you the lazy man's way to riches, let me tell you the downside. You have to have the correct timing on your purchase. In Dec 2001, everything was in place to do these two programs, in Los Angeles County. Unfortunately, by July 2002, the numbers didn't work any more. They did still work in Florida, for example, but not in Los Angeles. What happens is that prices go up after the rates go down. The seller sees how good a deal the buyer can get and raises the asking prices. So! Your timing to start these programs is very important. Do not be discouraged, though. If the numbers do not work today, it will work sometime tomorrow. The system is sound, and since we are talking long-term wealth accumulation, a little patience can go a long way. About The Author Willard Michlin is an Investor, California Real Estate Broker, Accountant, Financial Distress Consultant, Well known Public speaker and Administrative/Business Consultant. He can be contacted at his Ventura, California office by calling 805-529-9854 or by e-mail at kismetrei@earthlink.net. See other article by Willard at http://www.kismetgroup.com; kismetrei@earthlink.net
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
War Market There is no question that the stock market is being affected by war jitters. When it looks like peace we have a strong rally. Commoditizing the world Let's discuss commodities; with the latest Enron situation, it is important to understand the way things work. A commodity is anything useful, especially a transportable agricultural product or mining product. How To Buy And Hold One of the most believed bits of conventional wisdom from Wall Street is to Buy and Hold. Any stock or mutual fund should be put away for eternity and never sold. Gold Fever Right now there doesn't seem to be any "gold fever". Very few are out looking to strike it rich in this sector. Online Broker Trade History Not Doing the Job Let me start by saying that.. Why This Bear? People are constantly asking me why is the stock market going down. What is causing this bear market? It is relatively simple so don't ask an economist. Emotional Trading The single most expensive stock market trades are those made with emotions, but, of course, you are not an emotional trader are you?Before you bought that stock, mutual fund or Exchange Traded Fund (ETF) you did your research to be sure that what you were buying would return a good profit over the long haul. You bought it and over time you look at it less and less. Index Fund Trading Using Technical Analysis and Swing Trading Strategies Index Fund Trading can be one of the most profitable.. Selling The stock market has been going up for more than 7 months and many investors who held on through the big crash of 2000 are seeing their portfolios get back some of what had disappeared. Is now the time to sell those equities that are 'even' with what you paid for them? No. Market Globalization Just 30 years ago the stock market was a shadow of what it is today. There were many fewer shareholders and the daily volume was a fraction of what it is at present. Shadow Bull As one of my regular readers you know I have been a stock market bear for the past 2 years and have encouraged everyone to put their money into a money market account or a short-term no-load bond fund and for the more adventurous what is called a bear mutual fund that goes up when the market goes down. Just being in cash as outlined in my book would have saved 40% or more of your money. Quality Investment Information: Standing Firm In the Face of Opposition THERE'S SOMETHING TO BE SAID FOR standing firm in the face of opposition. Interestingly, most of the best stock decisions have come at times when the mainstream is saying precisely the opposite. The Stock Market Doesnt Care if You are a Beginner?. Get Prepared to Succeed at Trading Stock trading remains a very competitive field and the stock market doesn't care if you are an experienced stock trader or an aspiring one. The rules and the trading opportunities are the same for all of us, so either youre going to make money when you pick a stock and make a trade, or you are going to lose some of it in favor of the more seasoned traders. Which Way The Market I am hearing predictions by brokers, financial planners, talk show hosts and the talking heads on TV that the market is going back to its old highs - DOW 11,700 and NASDAQ 5000 here we come.It seems to me that in 2000 I heard these same people saying there was no top to the market and were looking into their crystal balls for DOW 30,000 or some other fantastic number. Bottoms Ups If you have talked to a stock broker or financial planner in the last few days I will bet they all agree that there are some great bargains out there and now is the time to start buying in anticipation that the market will go back up. You will also find agreement from the talking heads on CNBC and those talk radio station stock mavens. Making Outsized Returns in the Stock Market - Using the Dow Theory The Dow TheoryCharles H. DowRobert RheaE. Oil Stocks As A Long Term Investment The demand for world oil is increasing while world reserves are decreasing. This is a known fact. Discipline One of the great "secrets" of successful people is discipline and it doesn't make any difference whether it is manufacturing, processing, servicing or investing in the stock market.Before you can have that discipline you must have a successful plan and stick with it. Economists #2 Economists know more about how the fragments of society work than anyone. In school they are taught to break down the economy into its tiniest parts and to quantify each minutiae so it can become part of a formula. Keep Your Profits It looks like we have now entered a new bull phase in the stock market and I have a question for you. Will you give back the profits that you make this time as you did in 2000? You sure don't want to, but you are not going to get any help from your broker.
|
| home | site map |
| © 2006 |
