Whether You Have a Broker or Not, You Need to Educate Yourself on Investments

The first time you took a look at the stock market pages in the newspaper or on TV, you undoubtedly said something close to “Holy cow, I’ll never learn about this stuff.” You then went out and hired a broker so you wouldn’t have to delve into the impossible enigma of the stock market and trading. You needed someone with expert knowledge of investing and trading in the stock market.

That is all well and good. But let’s take another look at it. You are no expert on toxicology, but you know better than to drink from a bottle labeled “arsenic.” That stuff is lethal. You know that if someone suggests you take arsenic for your illness, they are not dealing with your best interest at heart. You will not take their advice because it could definitely be hazardous to your health.

Can you say that about the money you have floating around in the stock market right now? Do you have enough knowledge about stocks and trading to save your own life if things start going downhill? Or are you going to find yourself up a creek without a paddle if it turns out that your broker doesn’t know what they’re doing after all.

Gaining the Necessary Knowledge of the Stock Market can be Intimidating, but…

No one wants to think about their trusted broker making irreparable mistakes with their money, but no one wants to think about being left without a penny when it’s time to retire. It’s just one of those things. Which means you really need to know enough about the stock market to be able to realize when a mistake is being made, or when a new and interesting opportunity presents itself, whether you’re doing your own trading as a rule of thumb or trusting someone else to do it for you.

The most important thing for you to carry away from this is that not only is it important for you to learn the basics of stock market trading, you also need to have enough faith in yourself and your future to recognize that you actually can learn the basics of stock market trading. Really.

Where do you go to Learn, then?

You have probably heard or read stories about people being self-taught investment gurus. These smart, tenacious types supposedly read the financial section of the newspaper every morning to glean everything they can about how the stock market operates. These golden icons of Wall Street become billionaires before the month is over. I would suggest to you that this is undoubtedly an apocryphal tale and you should not be sucked in. You need a formal approach to learning the ropes. You need a program that’s designed and then customized to fit your needs – the kind of program aimed at the rawest beginner so you can learn the ins and outs of the stock market from the ground up. This same program should offer more advanced learning opportunities for you to take advantage of once the basics are clearly understood and practiced. Your program should also provide you a connection with real people who have learned as you have and have ample experience in the market using the very techniques that you are learning.

Lastly, the foremost thing when it comes to choosing any program, know with whom you are working. Know this before you search the net and enter into a business relationship with the first “expert” that comes your way. If you do all this, you will have empowered yourself to successfully handle your financial future.

The Top 2 Reasons You Should Invest in Residential Real Estate

What is the number one reason you should invest in residential real estate? Since the colonization of North America, no other economic asset has produced as much wealth as real estate. And, no other asset has produced as many millionaires as real estate. Ask the likes of Leona Helmsley, the Springs Clan, George Washington, John Jacob Astor, Sam Zell, and others (a number of which are billionaires). They all made their millions in real estate and most had all or at least a large part of their wealth in real estate.

Besides reliability and consistency producing more wealth than any other asset. You should be considering residential real estate for a lot of other good reasons. First, what other asset provides an education in how to care for it in the general every day activities that we all cope with. Paying the gas bill, or electric bill, or water bill are part of having a home and are part of owning residential real estate. Maintenance issues like roof replacement, rotten wood repair, fixing the plumbing, unstopping the toilet, repairing broken locks, and so much more are simply part of every day life and… part of managing residential property. While you may never have leased a home or an apartment to a consumer, the odds are very high that you have completed this exercise yourself and are familiar with the questions asked, the background and credit checks completed, your liabilities if you failed to pay and what the process would be should they have to evict you. You probably already know when rent checks are due, when they are late, and what will occur if not paid on time. You have an idea how to report a maintenance request even if you don’t know what to do with it when you receive it. In fact, you’ve spent a good part of your life to date learning the ins and outs of residential real estate operations and management. Additionally, as an American, you likely already know some or even many of the programs available to you to purchase a home and you have some sense of the loan process you will need to complete for the purchase. What other business can you think of that without additional professional training that you would know so much about?

Because of these two points, no one has created as much wealth as in housing and there is no business you know so much about, you should very seriously consider making residential investing part of your asset portfolio.

2 Low Risk Investing Strategies That Generate 20% or More Per Month

Here are two strategies that will generate low risk residual income with minimal effort.

1. Network Marketing

This is basically where you get paid a commission to recommend a company’s product(s) to the everyday consumer. In everyday network marketing you get paid whenever a sale is made, but let’s take this a step further. Imagine network marketing companies that do not only pay for a one time sale, but pay recurring commissions? By this I am referring to companies that pay commissions on memberships.

If you get involved with network marketing, I recommend only looking for companies that pay recurring fees on memberships or something similar. Here is an example: let’s say Joe’s gym has a rewards program to encourage membership referrals. Monthly membership dues at Joe’s gym are $60 per month. For every person you can refer that signs up for a membership, Joe will split the membership fees with you and pay you $20. Not only will Joe pay you $20 when your friend signs up, Joe will continue to pay you $20 every time your friend pays their $60 each month.

If you can find ten friends that want to be in better health, you will have added $200 per month to your income stream. Do you know 10 or twenty people that would be interested in going to the gym? Or buying a book? Or taking a trip somewhere? This is network marketing in a nutshell. You find a product that you personally like and use, you tell your friends (or strangers if you’re brave enough) about it, and you get paid a commission every time your friend uses the product.

Before you choose a network marketing company, make sure you do some research on the company and understand their business plan and payout structure. The big downside to this is getting wrapped up with a pyramid scheme company. True network marketing is NOT a pyramid scheme strategy. Think about 5 things you really enjoy, then find network marketing companies that offer “recurring” commissions for you to tell people about their products. It’s that simple.

2. Selling options

Statistics show that 80% of options sellers make money while 80% of options buyers lose money. Being an options buyer is a VERY lucrative way to make triple digit gains (200%-300%) in a matter of hours or even minutes. I have experienced triple digit returns as an options buyer firsthand. However, I think greed, leverage and inexperience cause a lot of options buyers to lose money. As you approach retirement age, I think it is better to go with low risk options trading strategies that are stacked in your favor. With an 80% chance of success, I think being an options seller is a better investment choice in the long run. There are many people that use money received from selling options as their primary source of income. With a few mouse clicks you can be on your way to making 20% or more per month.

Stocks can only move in three basic directions, they can go up, down, or stay flat. As an options seller you can still guarantee profits if the stock moves in two out of the three directions. Profiting in the third direction will be determined by the strike price that you choose for your option. To be safe I sell options two strike prices below the current stock price for a bullish strategy, and two prices above for a bearish strategy. You receive less money, but your risk goes down… A LOT. As an options buyer you will only profit if the stock moves in one direction and by a significant amount.

If you don’t have options investing as a part of your retirement strategy, get started on this now!