Everyone is trying to give advice on what to do with your money. There are numerous shows, infomercials, etc... Many charge a lot of money and make huge promises and then you find out it was a scam, bad advice, etc... I am going to show you how I averaged 187% returns on all my investments last year and over 500% for the last 3 years. I will tell you how to prosper in 2006 and make it your best year ever. And the best thing is I won't charge you a penny. This is for real and all my advice is easily verified. Make 2006 your best year ever!
1. Fire your commision based financial planner. Get a fee-based financial planner (look them up on Google). Commission based like Prudential, American Express, Allstate, etc... are only going to show you products that give them fat commisions. In otherwords you will not get the help you really need. And a lot or all of your earnings will be negated and squandered on these heavy commissions. You need a non-biased financial planner who will find you the best investments regardles of what company has them. Fire your commission based financial planner.
2. Never ever buy whole life insurance! It is basically a big money maker for the agent (commissioned financial planner) - it is their highest commission product - why do you think they push it so hard? Two words are all you need to remember - TERM LIFE! Buy term for twenty years. You will save a ton and it is dirt cheap! Put your life in gear and you won't have to worry about anything after those twenty years. Remember term life good - whole life bad.
3. Learn to stop impulse buying. If you can't afford to pay cash don't buy it. Tear up your credit cards except for one emergency card. The only purpose of a credit card is to make huge profits for the bank or store that gave you that card. If you have debts get a plan together to get them paid off. A fee based financial advisor can help you with this. Remember, accessories don't make the man, owning your own home and being financially independent does.
4. Take 10% of your disposable income and invest it - pay yourself first - it works. If you can arrange for your employer to take it out of your paycheck or otherwise make it automatic that is best. If you don't see it, you won't miss it. If your employer has a 401K program max it out. Especially if they have a percentage match contribution - thats free money. $50 here and a $100 there may not seem like much, but it will compound fast. And the larger your investments get the more they will make. Ther rich learned that they can only earn so much themselves, but their money can gro to the point where it will earn far more than you could ever earn. Get started saving and investing.
5. Switch your auto insurance to Progressive - Regardless of what the commercials say they are the lowest price, best service, and best deal - period! Do you think your local agent and those paid endorsers work for free - they get paid from your higher fees and commissions (it has to come from somewhere). Remember it adds up - an extra $200 - $800 saved per year from your insurance invested correctly will be worth $20,000 really fast.
6. Invest in DRIPs - Direct Reinvestment Plans. Many of the top companies have these and it allows you to invest for very low or no trading fees (some even give you a discount so it actually ends up paying you just to invest - I like that). Exxon Mobil (XOM) and Cross Timbers Oil Co. (XTO) are hot oil DRIP's. XTO has experienced a more than 1200% growth in the past 3 years. Buy it. You need to have a good, solid play in the oil, energy sector. They don't have the best dividends, but with their growth who cares? I also recommend buying natural gas - Piedmont Natural Gas (PNY) is the steadiest, safest player in this field. Great dividends and rock solid - it won't give you the gains of XTO but will average out some of the peaks and lows. Buy it. Remember to get diversified so find a financial DRIP like Banco Popular (BPOP) - a great spanish bank ripe for a takeover that pays great dividends.
7. For instant diversification, steady growth and solid dividends use an ETF (Exchange Traded Fund). Unlike mutual funds, etf's can be traded throughout the day just like stocks. Choose an ETF that tracks a major or minor stock index (for better diversification). I recommend IJR - it provides the best growth and dividend return of the ETF's. Buy IJR. Remember do not put more than 20% of your investment portfolio under any one stock or ETF - diversification is the key to amassing great wealth.
8. Learn that no matter how hard you work for someone else you will never be paid what you are worth. You will only be paid what you are worth when you realize this and decide to go into business for yourself. Do your homework first and pick something you like that can be turned into a moneymaker. Remember 70% of new small businesses fail mostly due to poor planning. You will make mistakes, we all do, but its how you interpret those mistakes and what you learn from them that makes the difference.
9. Whatever your religion, pray and read your bible. If you trust and have faith in God you will be provided with what you need. The steps above will provide you with financial freedom and wealth. If you let him, God will provide you with understanding, happiness, meaning to life and less stress. Studies have shown that people who pray and have faith are healthier and live longer. What good does all that money do if you can't enjoy it and help others with it? Volunteer. Be a Big Brother. Help others out. Once you have become successful please help others to do the same. Pray, read your bible and volunteer.
There you have it - if you follow this advice you will undoubtedly be well on your way to financial freedom and happiness. And there's more easily proven and helpful advice here than in all those infomercials and books you see on TV like no money down realestate, the greatest vitamin, paytrading, etc... Fire your commissioned investment advisor. Stay away from Whole Life and only purchase Term Life - you will save tons.Learn to pray and read your bible. Do yourself a favor and print this out. If you care about your friends give it to them. Put it in your email lists. If you believe in helping others and making the world a better place then pass it on to everyone you can. These ideas and stock tips will provide you and everyone else with solid gains for years and a greater chance at financial freedom. The best thing is it didn't cost you a cent.
Just do me a favor and visit and promote my sites listed below.
They are more concern with its popularity among media and analysts than the stock itself. Whenever the stock does not perform as expected, they start to blame others than accepting their own mistakes. Let see if ROE worth to be considered.
What is ROE?
ROE is the investment return that shareholders' fund is getting from the company's profits. It can be calculated as the ratio of company's net profit to the average shareholders' equity.
Shareholders' equity is the difference of the assets from its liability, which theoretically is something owned by the shareholders.
For example, ROE of 30 per cent shows that every $10 shareholders' fund in the company will generate $3 net profit in return. It can be explained as the shareholder's return on investment as well.
Why ROE is important?
Look, it is not difficult for the company to achieve the record earnings every year as they can easily earn five per cent return by putting it in cash deposit.
However, good management must use the retained earnings for a greater benefit. Besides, the earnings per share growth can be manipulated from the share buybacks.
On the other hand, ROE indicates how effective the company's management team is in managing shareholder's money. Great management has proven experience in performing 15 to 25 per cent ROE consistently over time. The higher the ROE, the less amount of money is needed to generate the same amount of profits.
Of course you want to invest in a company that can generate $10 million in profits from $50 million fund than the one that can only make $1 million profits from $100 million fund, don't you? I personally love these type of stocks so much.
Having said that, ROE can be manipulated as well. The company can made up their ROE to the attractive level by distributing dividends to its shareholders. Nevertheless, you can minimise the risk by investing in the company that has consistent high ROE.
After all, great investment should have good result consistently right?
After you have analyzed ROE, do not forget to use other financial ratios as well. EPSGR, D/E, liquidity ratio and ROA are proven to be useful in researching the stocks.
Other than that, analyze the stocks qualitatively as well.
Both David Maillie & Zainul Anuar are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
David Maillie has sinced written about articles on various topics from Skin Care, Hair Styles and Wrinkles. David Maillie is an alumni of Cornell University and holds numerous patents including his recently awarded patent for headlight repair, cleaner and restorer. He can be reached at M.D. Wholesale:. David Maillie's top article generates over 74000 views. to your Favourites.
Zainul Anuar has sinced written about articles on various topics from Stock, Finances and Astrology Predictions. Find out step by step stock investing tips, and in. Zainul Anuar's top article generates over 5400 views. to your Favourites.