Are You Secretly Jealous of Your Friends Making 8 to 20+% on Their Investments While You're Stuck Making a Measly 3% in a Saving Account?
Don't feel bad as ... we'll show you the insider secrets of investing money!
Dear Friend,
Most investment experts would agree that the best time to invest is when everyone else is scared to do so... because you can get investments at lower prices. Even better when the market has taken a dramatic hit and is slowly recovering.
Now is that time... most people who had their money invested in the stock market prior to 2008 have lost a substantial amount of money... and are licking their wounds. You see, prior to 2008 everyone was buying and people lost sight of market fundamentals... they just knew that the more money they placed into the stock-market, the more money they would make.
In the space of a few months, the previous highs of around 7000 were replaced with realities of March 2009, when the stock market headed towards 3000.
Fortunately we're now on the side of the cycle, with the market moving through 4000 and heading north. So don't wait until everyone else is on-board this recovery and it's too late. We're not saying to buy everything now, we're just saying that this year will present a once in a decade opportunity to pick up great stocks at bargain basement prices.
At investmoney.com.au, you will find many different investment options and strategies that experienced investors use, latest market updates, and tips on how you can make your money work hard for you.
Update
Investing money is crucial to achieving long term financial success.
Most people are brought up with the concept of working for money… you work for a week and get $1000 from your employer who also provides annual leave and other benefits. There is nothing wrong with this concept as fundamentally that how wealth is initially accumulated as it’s impossible to invest money when you don’t it in the first place.
The problem with working for money is that if you stop working, you’ll stop being paid. It’s also very hard to increase the amount of money you’re getting particularly if you’re on a fixed salary working for a large company. So essentially you are always a few months away from being broke. In fact the term JOB is often referred to as an acronym for “Just Over Broke”
So if you look at your current job, you can reasonably predict how much money you’ll be able to make in 10 years time.
Now imagine if you could achieve all those goals in 5 years without working any harder. This is the premise of investing money… letting it multiply and helping you achieve your goals sooner. Investing money also creates a source of income for when you get older and unable to work for wages.
Just like vacant land, which can be used to build a house, parking lot…. money be used to create projects that in turn produce more money. Investing money is great because once the investment has been made; it does not require additional labor on your behalf. It’s like having a servant working on your behalf, while you’re getting the benefit. By having many of these servants, it is possible to eventually retire and enjoy the fruits of your labors, while all the work is done by your money servants.
There are a number of different ways of investing money, depending on your risk profile and time horizon. One of the fundamental laws of investing is the law of risk and return. Where risk is the variability of the result… something that is risky can move up and down… so it’s very hard to predict where it’s going to end up. Many investors don’t like uncertainty and hence prefer safer investment strategies. For this reason investments which are considered to be safe tend to also attract a very low rate of return.
The lowest rate of return is provided by a government bond because these types of investments are guaranteed by the government. Company shares on the other hand regularly move up and down because they are not guaranteed. This means that if a company experiences financial difficulties or goes into liquidation, the equity potion is likely to be wiped out… with shareholders getting nothing.
Truth be told… investing money is not simple.
Even though there are many financial advisors, they generally don’t provide actionable answers. While they can provide lots of interesting information and statistics, all of them are backward facing… which is an issue because past performance is no indication of future performance.
Just consider this, who could have ever imagined the global financial crisis happening back in 2008? Sure there were issues with the US economy but who would have thought that it would cause the Australian Stock market to fall to 3200? What this all means is that no one really knows what is going to happen next. What people typically do is look at the past and use it to predict the future… which is like driving forward while looking at the rear mirror.
So why do financial planners exist at all? Similar to mortgage brokers, they are there to give you a basic understanding of the financial system. They will also help you understand the reason for investing and suggest a couple of strategies which have been effective in the past of achieving these goals.
Something you should know about financial planners is that are typically not remunerated no on how well your portfolio performer but on how many products they have sold to clients. In other words they have an incentive to sell you products even if these products are likely to decrease in value because it does not matter if your portfolio goes up and down, they will still get their commission.
This means that the majority of financial planner are sales oriented rather advice oriented… because that’s when they get paid. However, to the average Aussie who is not financially educated the sales information might come across as research… even though the aim of this education is to get them to purchase a financial product… rather than to empower them to make a financial decisision.
What makes this time special is the opportunity that has been provided. When you’re dealing with financial markets, you’re dealing with many irrational individuals.
You see when dealing with financial markets, you’re not really dealing with rational players… but with individuals who are motivated by 2 emotions fear and greed. They enter the market to make money and the leave the market because they fear that will loose money.
Another option of investing is property
Where financial advisors can add a lot of value is when dealing with government regulation. In case you’ve ever wondered government legislation (especially concerning taxation) is not made in a bipartisan fashion… in fact it’s created through various political battles, accusations and finally compromises. This is one of the reasons why tax regulation various significantly from year to year… depending on which party is in power.
While changing guidelines are confusing, they do create substantial opportunities for estate planning and tax minimization. I’m sure you wouldn’t mind paying less tax than you have to. Just remember that all of your tax affairs are confidential and you’re fully entitled to structure them in any way you want, providing it does not contradict.
What amazes me (and why this website was originally created) is despite the fact that so much information is being created, most of it is either backward facing, or general and of no use to investors.
Despite all the hoopla expert information available, there is actually a lot of confusion which can be easily resolved.
The truth is any of those free sessions are primarily a way to sell you to a seminar. And what happens in most seminars.