Advertisement |
The $84,000 Difference
What if I told you that starting and following
this simple program could mean an extra $84,000 a year in your
pocket?
That's what happened to Paul H. as soon as he
put just one element of the system into effect.
Learn
more here
|
Wealth |
The More
You Know, the More You're Worth
Knowledge, like interest, compounds over time.
If you are a doctor, lawyer, accountant, writer, plumber,
carpenter, etc. and charge for your services by the hour,
be sure the amount per hour you charge goes up each and
every year. So long as you are getting smarter about your
line of work (and you are if you are paying attention),
the same amount of time you apply toward a problem merits
a higher compensation.
|
|
Health |
Power Up
Your Brain With CoQ10
Dr. Sears tells me that I can maintain (maybe
even boost?) my brainpower by making sure I ingest plenty
of CoQ10. Brain levels of CoQ10, he says, decline after
age 20 and decline even faster when you pass 50. Although
definitive clinical studies are still pending, there is
plenty of preliminary evidence that suggests supplementing
with CoQ10 can vitalize your brain and stave off the problems
of memory loss.
You can find CoQ10 in softgel or capsule
form, online or at health food stores.
|
|
Wisdom |
Is It "Use to"
or "Used to"?
A common mistake that even educated English
speakers make: "Alex use to have a green car."
The grammatically correct way to say this
is: "Alex used to have a green car."
"Used to" is another way of
saying "formerly did."
|
|
Advertisement |
How To Get People
To Send You Their Money!
I know this seems crazy but it's not. It's not
a scheme that you'd be ashamed to be involved in. And I'm not
misleading you in any way. The claims I'm making are factual.
They are all based on experience.
Learn
more here
|
Today's Message |
How to Invest When You
Have Less Than $100,000
by Michael Masterson
In Message #1240, I told you about a man I
met at the ETR Wealth-Building Bootcamp who wanted more
advice on investing in individual stocks and options. When
I discovered that his personal net worth was only about
$18,000 (not counting the value of his home), I was shocked.
Why would anyone with so little in savings take so much
risk?
I found out later that night (by way of a
registration survey) that he wasn't the only one. At least
a third of the conference attendees were small-fry investors.
Interestingly, when asked to rate their interest in various
types of investments, there seemed to be an inverse relationship
between net worth and the stock market. The wealthier attendees
were very interested in real estate, side businesses, and
alternative forms of investing, while the beginners wanted
to make their fortunes by buying and selling stocks.
As I pointed out to the conference attendees the next day
(and to you in Message #1240), unless you have at least
$50,000 to invest in stocks -- and $100,000 is better --
you probably shouldn't be investing in individual stocks.
And you definitely shouldn't be trading options and futures.
At this first wealth-building stage, your
primary focus should be on earning more income by developing
a financially valued skill. (We've talked about this in
many past ETR messages.) The more you earn, the easier it
will be for you to save. And the more you save, the faster
you'll build up a substantial amount of money that you can
invest.
But what should you be doing with your savings
now? What can you do with $25,000? Or $18,000, for that
matter?
There is only one answer: Start a business.
You can't start a capital-intensive business
with $18,000. You can't, for example, open a restaurant
or create a new line of pharmaceuticals. But you can start
a small direct mail business by investing a few thousand
dollars (and a lot of hard work) and see it grow into a
business that's worth a million. I've done it many times.
I've coached people who have done it. Stories are published
in magazines every month about people who have done it.
We've even developed a program to help you do it http://www.agora-inc.com/reports/700SCBMO/W700E628
When you reach the second wealth-building
stage -- when you have between $25,000 and $100,000 to invest
-- you can take a multi-layered approach to your investing.
Here's the portfolio I'm recommending for
stage-two investors in the book I'm writing for John Wiley
& Sons ("Automatic Wealth: 6 Steps to Financial
Independence"):
* Cash
The first money you save should be marked
for emergencies. This needs to be put somewhere safe but
easy to access, like a home safe or a safety deposit box.
The amount you should keep for emergencies depends on your
personal situation: how much you typically spend, how reliable
your income is, etc. As a rule of thumb, though, I'd recommend
about 10% of your net worth. If you have a net worth of
$100,000, that would be $10,000.
* Equity-Building Real Estate
After you've taken care of your family's emergency
needs, start to develop a portfolio of equity-building real
estate. What is equity-building real estate? It's any property
(other than your home) that is likely to go up in value.
It can be a piece of land that costs you very little to
maintain, or a rental property that brings in enough income
to meet or exceed its expenses. How much equity-building
real estate should you have? If you have a net worth of
$100,000, I'd recommend a bit more than half. Let's say
$60,000.
* Fixed-Income Instruments
Other than cash and real estate, your money
should be in Treasuries, municipal bonds, or quality corporate
paper. Fixed-income investments like these don't provide
a high return, but they are safe.
You'll notice that in this second wealth-building
stage, there are no stocks, options, futures, rare coins,
or derivatives in the portfolio. And there's a good reason
for that. When you have less than $100,000 to invest, your
main goal should be to ensure your capital, not to grow
it at an accelerated rate. As Will Rogers is reported to
have said, "Be more concerned with the return OF your
investment than the return ON your investment."
You will make nothing on your cash and only
about 4% on your tax-free bonds (which will probably be
worth about 6% on a taxable basis). But if you invest reasonably
in real estate, financing 80% of your investments with bank
loans, that larger (60%) part of your portfolio should appreciate
at 15% to 25%. That will give you an overall return of between
12% and 15%.
While you are going through your, pre-$100,000-net-worth
stages of wealth building, a return of 12% to 15% on your
hard-core savings is plenty.
But what do you do with your money when you
pass these first two plateaus? When you have between $100,000
and $1,000,000 to invest? That's what we'll talk about tomorrow. |
|
Today's Action Plan |
| Before you
reach the $100,000-net-worth mark, most of your time should
be devoted to learning and perfecting a financially valued
skill that will allow you to command a much higher salary.
So conservative investments that don't require much of your
attention are ideal.
You've got plenty of other things to keep
you busy right now. Trying to simultaneously develop expertise
in investments like stocks or futures or options is harebrained
(see "Word to the Wise," below) and unnecessary.
|
|
| Advertisement |
Learn about the
world's six best places to live or retire.
Live like royalty on $17 a day.
Own an exotic beachfront getaway for $35,000.
Or a romantic pied-a-terre for under $60,000. Enjoy fine restaurant
dining for $7 per person. Employ a maid or gardener for $2 a
day. Buy comprehensive health insurance for $20 per month. Get
the details in your FREE report now.
Learn
more:
|
The ETR Question Of The Week |
Did You
Ever Steal From Your Boss?
"The ETR Question of the Week"
begins a new series for us. I'm going to ask myself and
the ETR staff some provocative, frank, and sometimes embarrassing
questions. And I'll share our candid answers with you.
I'm hoping you'll share yours with us.
So, to kick it off, here's my confession
. . .
When I was about 14, I worked Saturdays
at the local car wash and Sundays at Mr. Kubick's corner
soda shop. For six hours every Sunday, starting at 6:30
a.m., I served local churchgoers stale pastry and egg
sandwiches on moldy bread. I don't remember how much I
was getting paid, but it wasn't enough to keep me from
stealing.
I never stole from the cash register --
which Mr. Kubick would never have noticed -- but I did
help myself to the collection of two-dollar bills and
silver dollars that he kept behind the counter. Why I
stole them, I don't know. I never spent them. And, needless
to say, I eventually got caught and had to return them.
It was a high-risk, low-return, illegal
activity. As stupid a stunt as I've ever attempted. (And
I've attempted many.)
I wonder, sometimes, why I did it. I didn't
like Mr. Kubick very much. I hated, for example, the way
he kept his store (filthy) and the fact that he sold his
customers old food. But I never said anything about that
to him. And, as far as I know, I never warned any of the
customers about the junk they were eating.
Notwithstanding this habit of thievery,
I was a very reliable and hardworking employee. I was
also -- excepting the two-dollar bills and silver dollars
-- honest. I never took tips that weren't mine and I never
let my friends eat for free.
Then, as now, I thought of myself as a very
good employee. And yet . . . I stole.
Apparently, Mr. Kubick, too, thought of
me as a very good employee. After discovering my crime
(and after having been reimbursed by me for it), he never
said another word. I continued to work for him for the
rest of that year. Until, finally, his business became
so slow (eventually only the drunks could stomach his
food) that he was forced to sell it and do something else.
I never got fired. But maybe I should have.
What do you think?
Let us know by posting your thoughts (and
your own story) on "Speak Out" by clicking on
http://speakoutforum.com/forum/viewtopic.php?t=369.
|
|
It's Good to Know |
How FAST
Kids Learn
From third grade on, the average child learns
about 3,000 words a year. Think about that. That amounts
to about eight new words a day. Plus, one study I read concluded
that when children were exposed to more complex speech,
they quickly developed the ability to construct more complex
sentences themselves.
Wow!
|
|
Word to the Wise |
| "Harebrained"
is another word for "foolish."
The first use of this word dates to 1548.
The spelling also has a long history, going back to the
1500s. According to the "American Heritage Dictionary
of the American Language"), "hair" was a
variant spelling of "hare." The "hair"
variant was preserved in Scotland into the 18th century.
As a result, it is impossible to tell exactly when people
began using "hairbrained" in the belief that the
word means "having a hair-sized brain" rather
than "with no more sense than a hare." While "hairbrained"
continues to be used and confused, it should be avoided
in favor of "harebrained," which has been established
as the correct spelling.
Example (as used in Today's Action Plan, above):
"Trying to simultaneously develop expertise in investments
like stocks or futures or options is harebrained and unnecessary."
|
|
| Michael
Masterson
Copyright ETR, LLC, 2004
ALL CONTENTS OF THIS E-MAIL ARE COPYRIGHT
2004 BY ETR, LLC.
ALL RIGHTS RESERVED: REPRODUCING ANY PART OF THIS DOCUMENT
IS PROHIBITED WITHOUT THE EXPRESS WRITTEN CONSENT OF EARLY
TO RISE.
Protected by U.S. Copyright Law {Title 17
U.S.C. Section 101 et seq., Title 18 U.S.C. Section 2319}:
Infringements can be punishable by up to 5 years in prison
and $250,000 in fines.
Are you having trouble receiving Early to
Rise messages? Ensure that Early to Rise gets delivered
to your email box, click below:
http://www.earlytorise.com/whitelisting.htm
If you'd like to suggest Early To Rise to
a friend, please point them to:
http://www.earlytorise.com/SuccessPartnership.htm
To BECOME AN EARLY TO RISE MEMBER, please
visit: http://www.earlytorise.com
or email [EMAIL PROTECTED]
To ADVERTISE in Early to Rise please email
Patrick Coffey at [EMAIL PROTECTED]
NOTE: If URLs do not appear as live links
in your e-mail program, please cut and paste the full URL
into the location or address field of your browser.
Disclaimer:
The inclusion of an ad in ETR does not constitute an explicit
endorsement. It does mean that as far as I know the product
is not a rip-off. When I really like a product and want
you to buy it I'll tell you explicitly. Otherwise, view
these ads the way you would commercials on TV or display
ads in the back of your favorite magazine. Check them out.
Make a decision. If you don't like, ask for a refund. (All
products sold here will carry refunds.)
Please note: We sent this e-mail to:
[EMAIL PROTECTED]
because you or someone using your e-mail address subscribed
to this service.
_____
To unsubscribe, Click
here
To change your email address, Click
here
To cancel or for any other subscription issues,
write us at:
Order Processing Center
Attn: Customer Service
P.O. Box 925
Frederick, MD 21705
_____
Nothing in this e-mail should be considered
personalized investment advice.
Although our employees may answer your general customer
service questions, they are not licensed under securities
laws to address your particular investment situation. No
communication by our employees to you should be deemed as
personalized investment advice.
We expressly forbid our writers from having
a financial interest in any security recommended to our
readers. All of our employees and agents must wait 24 hours
after on-line publication or 72 hours after the mailing
of printed-only publication prior to following an initial
recommendation.
Any investments recommended in this letter
should be made only after consulting with your investment
advisor and only after reviewing the prospectus or financial
statements of the company.
|
|
|
