When fundamental and technical factors coincide in a hot sector, the demand for the stock increases exponentially.
Stock Advisor Group has a proven strategy for picking quality stocks by combining technical and fundamental analysis. First, our revolutionary software generates buy signals by processing the real-time, daily data of individual stocks. Next, our experts sift through those stocks and pick the ones that are inthe fastest-growing sectors and that also are fundamentally strong. Finally, we alert you to buy the stock when the price is at its perfect entry point.
In order to pick such quality stocks, we have developed special software. The software searches thousands of stocks in various markets in real time and selects a set of stocks that are ready to start an uptrend. To speed up the stock-picking process, the software performs technical analysis. Afterward, our experts step in, narrowing down the list to the one or two best stock picks for that day. When the conditions for a perfect entry arise, we send you an e-mail suggesting that you buy the stock. Our timing and entry points are so accurate that the price of the picked stock will start rising from the moment you buy it. For this reason, our stock-picking service is a perfect solution for short term trading such as swing trading, day trading, and intermediate trading.
Checking the following criteria for each stock pick is one of the most important steps in our stock-picking service.
Earning Per Share
Cash Flow
Annual Growth
Relative Price Strength
Profitability
Industry Leader
Financial Health
Debt
Management
P/E Ratio
Competitive Advantage
Institutional Sponsorship
Direction of the Market Averages
Insiders trading
Industry/Sector
Psychology of Trading
Technical Indicators: Support & Resistance
Saturday, March 8, 2008
A Stock Market Investment Plan That Never Lets You Down
The bulls and bears of the stock market are both tempting and scary to the investors. Speculators are enchanted by the stock market's potential to help them in making quick money with a big M. While those who tread with care and caution, often shy away for fear of losing. However, the stock market is not all about speculative gains or black Tuesdays. It is a place where committed companies look for raising money to fund their activities. Serious investors can actually create wealth not only for themselves, but also for the companies and the nation. A wise way to invest in the stock market is to empower your self with information. You have to know and learn about the company you invest in, from past records and future plans.
Irrespective of what the Wall Street Gurus predict or what the economic indicators like Dow Jones Average say, a simple and foolproof way of knowing that a company is doing well is to keep a track of how much dividend income does it pay to its share holders every year. If the dividend rates have been rising steadily every year, you know you have a safe bet. To benefit from the future prospects of such companies, it is a good idea to rollback the returns into the company. Which means, instead of adding the dividends to your savings, you can invest them in the shares of the same company. That way, you can ensure that the dividends you receive are always higher than what you got last, with a larger number of shares getting added to your investment portfolio every time.
With this kind of an assured investment plan in place, investors with a gambling streak begin to think beyond making a quick gain. While those who were afraid to take risks get wiser.
Let us find out why companies that give ever-increasing cash dividend income are a good choice for investment:
Your Share Holding Goes Up And So does Your Dividend Income.
Your income begins to escalate with your owning more shares every year and the dividend income rising correspondingly.
Your Dividend Income Increases Even If Stock Prices don't.
You are no more at the mercy of the market. Irrespective of what your shares are worth, you keep earning additional cash dividends. In fact, even if the market price dips, you are still at an advantage, as that allows you to reinvest to purchase more shares.
You are not hit by Inflation.
With the dividend income rising every year, you offset the effects of a rising inflation. This particularly provides relief to people who have retired and depend on a regular cash inflow to help them meet their expenses. At this stage one need not rollback the investment into further shares, instead, the cash dividend can be used as a kind of regular pension money.
Start Young
The ingenuity behind this investment strategy is that it protects you from the fluctuations that generally occur in the market. A lower stock market rate only means you buy more to increase your dividends more. It is advisable to start this strategy early in life while you are still working, so that your wealth builds up gradually and constantly over the years. And you are assured of a regular income, as you grow older.
Remember, the success of this proven investment plan depends significantly on the track record of the company you invest in. It should be one that declares a higher dividend at the end of each financial period. A simple way to find that out would be to calculate the dividend yield. You can do that by dividing the annual dividend per share by the price per share. Of course, no investment can be totally free of risks, neither is this one. Keep an eye on the dividend yield, and if that dips, it's a signal for you to opt out of the investment.
About the Author: James is a regular finance columnist with RNCOS (http://www.rncos.com). He writes on a wide range of topics, including mutual funds, taxes, credit cards, and IRAs. For further suggestions and comments on the articles and bad credit loans, feel free to question our staff writer at info@rncos.com.
Irrespective of what the Wall Street Gurus predict or what the economic indicators like Dow Jones Average say, a simple and foolproof way of knowing that a company is doing well is to keep a track of how much dividend income does it pay to its share holders every year. If the dividend rates have been rising steadily every year, you know you have a safe bet. To benefit from the future prospects of such companies, it is a good idea to rollback the returns into the company. Which means, instead of adding the dividends to your savings, you can invest them in the shares of the same company. That way, you can ensure that the dividends you receive are always higher than what you got last, with a larger number of shares getting added to your investment portfolio every time.
With this kind of an assured investment plan in place, investors with a gambling streak begin to think beyond making a quick gain. While those who were afraid to take risks get wiser.
Let us find out why companies that give ever-increasing cash dividend income are a good choice for investment:
Your Share Holding Goes Up And So does Your Dividend Income.
Your income begins to escalate with your owning more shares every year and the dividend income rising correspondingly.
Your Dividend Income Increases Even If Stock Prices don't.
You are no more at the mercy of the market. Irrespective of what your shares are worth, you keep earning additional cash dividends. In fact, even if the market price dips, you are still at an advantage, as that allows you to reinvest to purchase more shares.
You are not hit by Inflation.
With the dividend income rising every year, you offset the effects of a rising inflation. This particularly provides relief to people who have retired and depend on a regular cash inflow to help them meet their expenses. At this stage one need not rollback the investment into further shares, instead, the cash dividend can be used as a kind of regular pension money.
Start Young
The ingenuity behind this investment strategy is that it protects you from the fluctuations that generally occur in the market. A lower stock market rate only means you buy more to increase your dividends more. It is advisable to start this strategy early in life while you are still working, so that your wealth builds up gradually and constantly over the years. And you are assured of a regular income, as you grow older.
Remember, the success of this proven investment plan depends significantly on the track record of the company you invest in. It should be one that declares a higher dividend at the end of each financial period. A simple way to find that out would be to calculate the dividend yield. You can do that by dividing the annual dividend per share by the price per share. Of course, no investment can be totally free of risks, neither is this one. Keep an eye on the dividend yield, and if that dips, it's a signal for you to opt out of the investment.
About the Author: James is a regular finance columnist with RNCOS (http://www.rncos.com). He writes on a wide range of topics, including mutual funds, taxes, credit cards, and IRAs. For further suggestions and comments on the articles and bad credit loans, feel free to question our staff writer at info@rncos.com.
A Guide to Preparing for Retirement
It is everyone's hope to be able to retire in relative comfort in their later years, after they've paid their dues and worked hard at their chosen profession for what may seem like the majority of their life. Unfortunately, many people find retirement a much loftier goal than they had originally envisioned... though they've spent years working, it seems that they neglected to build a savings or make plans for the money that they would need for the day-to-day expenses of living.
Luckily, it doesn't take much to establish plans on how to pay for your retirement and those plans can generally be put into action quite easily. Here are a few suggestions that you might want to think about and possibly incorporate into your own retirement plans.
Start Saving Early
The first thing that you can do to help ensure that you'll have the money you need to retire on is to begin saving for your retirement earlier in life. As soon as you can afford to, begin putting money into a savings account that was opened specifically for building up savings for your retirement. Many banks have specialized retirement accounts that offer slightly better interest rates but which carry fines for early or excessive withdrawal. This might be just the thing for individuals who find it difficult to simply leave money in the bank for long periods of time... they can still access the money if needed, but they'll have to pay the fines associated with it as well.
Make Smart Investments
A well-diversified stock portfolio can help to build up a retirement fund as the years go by. Some specialized stock plans (such as IRA's) are even designed for retirement planning and have special features such as tax deferral until the plan is cashed in after retirement. These plans aren't a necessity if you're wanting to help build a retirement fund using the stock market, however; carefully choosing stocks that will likely perform well over a long-term investment that are balanced by mutual funds, precious metal and industrial indexes, and a variety of bonds and other investments can do just as well without a specialized investment plan.
Consider Retirement Plans from Work
Most workplaces have some form of retirement plan available for employees, though these plans may vary from one employer to the next. Pension funds, while once quite common, are beginning to be offered less and less often in favor of employer-sponsored investment plans (such as 401(k) plans) and other types of retirement benefits. The various retirement plans that are offered by employers can differ greatly, and there are some employers that offer no retirement benefits at all. It's important to check with your employer before assuming whether any retirement plans are offered or not.
Plan for the Long Term
Whether you're utilizing bank features such as savings accounts and certificates of deposit, considering various investment plans through your preferred broker, or relying on the retirement plans that are offered by your employer, it's important that you keep the long-term goal of having the money that you need to pay for your retirement in mind. Weigh your options carefully and choose the retirement plan or plans (because you can do a little bit of everything if you want to) that are right for you and your retirement funding. Remember, it's never to early to start planning for the days of your retirement... and it's never to late, either.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About the author:John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans. co.uk website.
Luckily, it doesn't take much to establish plans on how to pay for your retirement and those plans can generally be put into action quite easily. Here are a few suggestions that you might want to think about and possibly incorporate into your own retirement plans.
Start Saving Early
The first thing that you can do to help ensure that you'll have the money you need to retire on is to begin saving for your retirement earlier in life. As soon as you can afford to, begin putting money into a savings account that was opened specifically for building up savings for your retirement. Many banks have specialized retirement accounts that offer slightly better interest rates but which carry fines for early or excessive withdrawal. This might be just the thing for individuals who find it difficult to simply leave money in the bank for long periods of time... they can still access the money if needed, but they'll have to pay the fines associated with it as well.
Make Smart Investments
A well-diversified stock portfolio can help to build up a retirement fund as the years go by. Some specialized stock plans (such as IRA's) are even designed for retirement planning and have special features such as tax deferral until the plan is cashed in after retirement. These plans aren't a necessity if you're wanting to help build a retirement fund using the stock market, however; carefully choosing stocks that will likely perform well over a long-term investment that are balanced by mutual funds, precious metal and industrial indexes, and a variety of bonds and other investments can do just as well without a specialized investment plan.
Consider Retirement Plans from Work
Most workplaces have some form of retirement plan available for employees, though these plans may vary from one employer to the next. Pension funds, while once quite common, are beginning to be offered less and less often in favor of employer-sponsored investment plans (such as 401(k) plans) and other types of retirement benefits. The various retirement plans that are offered by employers can differ greatly, and there are some employers that offer no retirement benefits at all. It's important to check with your employer before assuming whether any retirement plans are offered or not.
Plan for the Long Term
Whether you're utilizing bank features such as savings accounts and certificates of deposit, considering various investment plans through your preferred broker, or relying on the retirement plans that are offered by your employer, it's important that you keep the long-term goal of having the money that you need to pay for your retirement in mind. Weigh your options carefully and choose the retirement plan or plans (because you can do a little bit of everything if you want to) that are right for you and your retirement funding. Remember, it's never to early to start planning for the days of your retirement... and it's never to late, either.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About the author:John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans. co.uk website.
401(K) Investing For Your Retirement
The aging of the population and the potential failing of social security has brought the subject of saving for retirement to the forefront for many people. There are many avenues available to acquire the nest egg that we will need to survive on during our golden years. IRA's, mutual funds, annuities and 401(k)'s are just some of the options to research as we prepare for our future.
With all of these choices, the 401(k) is the most popular. The popularity of the 401(k) is due in a large part to the fact that many employers not only offer this option, they also match a certain percentage of your contribution. The amount that employers will match varies from as little as 25% to as much as 100%, although the number of employers that do not match at all is, unfortunately on the rise. Another outstanding benefit a 401(k) offers is that the contributions made by you as an employee are made with pre-tax monies.
A 401(k) plan is also very flexible, giving you choices in regards to your investment strategy. There are some tried and true methods for investing in a 401(k) that depend upon your age at any given time. For example, a young person investing in a 401(k), whether the employer matches or not, has time on their side. This person can invest aggressively, if they feel comfortable doing so. The market will have ups and downs, but the younger the investor the more time is available to ride out these fluctuations in the stock market. As the investor nears retirement, it would be prudent to change the investment strategy to a more conservative approach. This will, in theory make investing money "safer." but still more profitable than a traditional savings account.
In the past, only larger companies were able to offer their employees a 401(k) plan for retirement. A 401(k) retirement plan was simply not an option for the self-employed person. Thankfully, this is not the case in today's marketplace. Today there is a plan called Solo 401(k) or individual 401(k). These plans allow business owners with no employees, with only partners or a spouse to set up retirement plans that are very similar to the traditional 401(k) offered by larger, more established companies.
If you leave an employer that you have a 401(k) plan with, you don't need to leave your retirement investing in their hands. You have the option to do a 401(k) rollover, and it is highly recommended that you take advantage of this option. By rolling over a 401(k), you keep control over your investing options, as you should. When a rollover occurs, the money that is in the 401(k) is rolled all together into an approved investment vessel. These include programs such as a SIMPLE IRA, a SEP IRA account as well as another 401(k) to name a few. It is best to speak with a financial advisor who can help you to accurately weigh the pros and cons of each type of investment opportunity that is available to you.
What is almost never recommended is to take out the 401(k) money either all or in part. This is because there will be a 10% penalty on the portion that is withdrawn, if the withdrawal takes place before the age of 59 ?. When a rollover is chosen as a way to deal with accrued 401(k) investment, it should be done as one transaction to avoid any of these penalties or fees.
If you are looking for an investment tool as a way to save for retirement, the first place to look is your employer. Get all the facts from them, find out what they contribute, how much your are allowed to contribute and then speak with a good financial advisor as to what steps to take next.
About the author:Linda Moore writes on a variety of subjects including home ownership,family matters,personal enrichment,protecting your 401 K Retirement nestegg and Retiremen t Annuities
With all of these choices, the 401(k) is the most popular. The popularity of the 401(k) is due in a large part to the fact that many employers not only offer this option, they also match a certain percentage of your contribution. The amount that employers will match varies from as little as 25% to as much as 100%, although the number of employers that do not match at all is, unfortunately on the rise. Another outstanding benefit a 401(k) offers is that the contributions made by you as an employee are made with pre-tax monies.
A 401(k) plan is also very flexible, giving you choices in regards to your investment strategy. There are some tried and true methods for investing in a 401(k) that depend upon your age at any given time. For example, a young person investing in a 401(k), whether the employer matches or not, has time on their side. This person can invest aggressively, if they feel comfortable doing so. The market will have ups and downs, but the younger the investor the more time is available to ride out these fluctuations in the stock market. As the investor nears retirement, it would be prudent to change the investment strategy to a more conservative approach. This will, in theory make investing money "safer." but still more profitable than a traditional savings account.
In the past, only larger companies were able to offer their employees a 401(k) plan for retirement. A 401(k) retirement plan was simply not an option for the self-employed person. Thankfully, this is not the case in today's marketplace. Today there is a plan called Solo 401(k) or individual 401(k). These plans allow business owners with no employees, with only partners or a spouse to set up retirement plans that are very similar to the traditional 401(k) offered by larger, more established companies.
If you leave an employer that you have a 401(k) plan with, you don't need to leave your retirement investing in their hands. You have the option to do a 401(k) rollover, and it is highly recommended that you take advantage of this option. By rolling over a 401(k), you keep control over your investing options, as you should. When a rollover occurs, the money that is in the 401(k) is rolled all together into an approved investment vessel. These include programs such as a SIMPLE IRA, a SEP IRA account as well as another 401(k) to name a few. It is best to speak with a financial advisor who can help you to accurately weigh the pros and cons of each type of investment opportunity that is available to you.
What is almost never recommended is to take out the 401(k) money either all or in part. This is because there will be a 10% penalty on the portion that is withdrawn, if the withdrawal takes place before the age of 59 ?. When a rollover is chosen as a way to deal with accrued 401(k) investment, it should be done as one transaction to avoid any of these penalties or fees.
If you are looking for an investment tool as a way to save for retirement, the first place to look is your employer. Get all the facts from them, find out what they contribute, how much your are allowed to contribute and then speak with a good financial advisor as to what steps to take next.
About the author:Linda Moore writes on a variety of subjects including home ownership,family matters,personal enrichment,protecting your 401 K Retirement nestegg and Retiremen t Annuities
4 tips to spot fake high yield investments
High yield investments are things that produce a yield of more than 2 percent per month. You can find some good mutual funds that produce 30% or higher in any given year, and they would fit the description of a high yield investment.
Unfortunately, mutual funds will never produce these stellar results consistently. Their good performance will cause a flood of money to come knocking on their door, and with a lot more money, it becomes harder to produce big returns.
Online, there are thousands of places that offer high yield investments. As you might expect, the vast majority are scams - simple ponzis set up to look like elaborate operations. Once you have enough experience with high yield investments, you can usually spot the scams with relative ease, but even the best people still get caught in elaborate scams.
Here are the things professional investors look for when looking into high yield investments: Fixed returns. If a program guarantees a time-based return (2% per day, for instance), then it is almost certainly a scam. No one has a crystal ball, and in the high yield community, uncertainty is the major force that prevails. So any one skilled at foreign exchange trading or options trading would never predict they would make 2% each and every day.
No contact information. The high yield investments that are real will always let you know who is behind it, and what they do. In the normal investment world, there is a prospectus for each offering, which describes what the venture is about, and how they make money. A real high yield investment would always give you the name and resumé for the principal people behind the operation. If you don't get a name, phone number and address, it is a scam. No registration. All high yield investments will create profit, and be subject to taxation by some government somewhere in the world. If the persons offering a high yield investment have not bothered to register the venture, then it is most certainly a scam.
No Contract. The high yield investments that promise great things should put things into writing, and have you agree to the terms before they begin to earn you an income. If you find a high yield investment that does not require you to sign a contract, you can be sure they will disappear eventually - along with your money.
The SEC publishes a short description of what to look for, and it is well worth a minute to review it. It is at http://www.sec.gov/investor/pubs/investorfraud.htm You should be aware that investor fraud is at an all-time high, and if you ever find yourself a victim of financial fraud, there is very little chance you will ever see your money again. Governments around the world are overwhelmed by the scams and victim complaints that pour in daily, so the best you can do is file a report, and be happy knowing you reported it.
About The AuthorJack Sinclair teaches people how to make money 24 hours per day. Become a member and get passive income and residual income systems for free at http://www.templarbond.com
Unfortunately, mutual funds will never produce these stellar results consistently. Their good performance will cause a flood of money to come knocking on their door, and with a lot more money, it becomes harder to produce big returns.
Online, there are thousands of places that offer high yield investments. As you might expect, the vast majority are scams - simple ponzis set up to look like elaborate operations. Once you have enough experience with high yield investments, you can usually spot the scams with relative ease, but even the best people still get caught in elaborate scams.
Here are the things professional investors look for when looking into high yield investments: Fixed returns. If a program guarantees a time-based return (2% per day, for instance), then it is almost certainly a scam. No one has a crystal ball, and in the high yield community, uncertainty is the major force that prevails. So any one skilled at foreign exchange trading or options trading would never predict they would make 2% each and every day.
No contact information. The high yield investments that are real will always let you know who is behind it, and what they do. In the normal investment world, there is a prospectus for each offering, which describes what the venture is about, and how they make money. A real high yield investment would always give you the name and resumé for the principal people behind the operation. If you don't get a name, phone number and address, it is a scam. No registration. All high yield investments will create profit, and be subject to taxation by some government somewhere in the world. If the persons offering a high yield investment have not bothered to register the venture, then it is most certainly a scam.
No Contract. The high yield investments that promise great things should put things into writing, and have you agree to the terms before they begin to earn you an income. If you find a high yield investment that does not require you to sign a contract, you can be sure they will disappear eventually - along with your money.
The SEC publishes a short description of what to look for, and it is well worth a minute to review it. It is at http://www.sec.gov/investor/pubs/investorfraud.htm You should be aware that investor fraud is at an all-time high, and if you ever find yourself a victim of financial fraud, there is very little chance you will ever see your money again. Governments around the world are overwhelmed by the scams and victim complaints that pour in daily, so the best you can do is file a report, and be happy knowing you reported it.
About The AuthorJack Sinclair teaches people how to make money 24 hours per day. Become a member and get passive income and residual income systems for free at http://www.templarbond.com
Investing in the Stock Market – 9 Power Packed Tips
You have permission to this article either electronically or in print as long as the author bylines are included, with a live link, and the article is not changed in any way. Please provide a courtesy e-mail to charles@thestockopolyplan.com telling where the article was published. (Word Count 804).
Investing in the Stock Market – 9 Power Packed Tips!
1. Do not spread your money too thin.
My friend has a little over $200,000 invested in the stock market through 27 different Mutual funds. In my opinion, 27 Mutual funds is 27 too many collecting load fees, management fees, commission fees, operating and advertising fees. Diversity is important, but just as important is over-diversification. Also, in my opinion, $200,000 should not be put into more than 12 stocks, let alone 27 different Mutual funds.
2. Do not pay commission fees to purchase a stock.
If you are going to invest your hard earned dollars into a company, the least the company could do is provide you a way to invest in their company commission free – and they do!
3. Only purchase those companies that pay a dividend.
The same company that you invest in commission free should also offer you another incentive for you to invest – a dividend for the use of your money.
4. Only purchase those companies that have a history of raising their dividend every year.
The same company should continue rewarding you for your faith in their company by increasing the amount of their dividend every year. Rising dividends are also the proof that the company is doing something right.
5. Dollar-cost average into each stock position.
By dollar-cost averaging (buying the same stock at different prices through the years) you'll never pay too much for the company's stock, even if the initial purchase is at a 52 week high. Have all the dividends from each company rolled back into more shares of each company, until retirement. The companies you invest in should do this for you, automatically, commission free.
6. Forget making a profit; instead focus on the income provided from your stock portfolio.
That's right! Forget making a profit. The burden is now lifted - no more pressure on tryingto make a buck in the stock market. (Instead of trying to bend the spoon, that is impossible, instead just think of the spoonas – omigosh! - I'm in the Matrix!) When you focus on the amount of money your holdings are providing in dividends – and when those companies selected have a history of raising their dividendseach year – a lower stock price allows the dividends that are being rolled back into the stock to accelerate your income. The total value of your portfolio may go lower, but your income from that lower priced portfolio would increase dramatically. Profit by income!
7. Make every stock purchase with the intent that the purchase will be a long-term investment.
Do not trade in and out of your holdings. There have been many up and downs in the stock market. The down markets only accelerate your income. GE has raised their dividend for 28 years in a row. Why sell it? 100 shares of GE ten years ago has turned into 1200 shares today due to stock splits, and that is not counting how many shares you would have now if the dividends were being rolled back into more shares of the stock through those years.
8. Understand that a lower stock price, after your initial purchase may be a blessing in disguise.
The income from your stock holdings should grow every quarter, no matter what the total amount of your stock portfolio is worth. (If your Mutual fund declines in price from one year to the next and if your income is not increasing (accelerating) from that fund, why are you in that fund?) A company pays their dividend not on how much their stock is worth in the market place. For example, a company pays a quarterly dividend of 50 cents a share. A company has little control on how much its stock price is worth in the market place on any given day. You will receive 50 cents a share per quarter whether the stock price is at 50 dollars a share, or drops to $40 a share or goes up to $70. While the stock is down at $40 a share your dividend reinvestment is loading up on more shares.
9. Develop a savings plan to add to your holdings each quarter to help your dividend reinvestments to accumulate more shares on a dollar-cost averaging basis.
The savings could be as little as $5.00 a week. Why put that savings in a savings account at 1.2 percent, when there are so many companies out there that are paying a 4 to 5% dividend yield and increasing their dividend every year? And since none of the companies you are investing in charge a commission, all of that $60.00 a quarter you saved and invested would help your dividend reinvestments to dollar- cost average into your holdings. Every cent you save and invest would work toward your ROI (Return on Investment).
To read the PREFACE from the book 'The Stockopoly Plan' please visit http://www.thestockopolyplan.com
Investing in the Stock Market – 9 Power Packed Tips!
1. Do not spread your money too thin.
My friend has a little over $200,000 invested in the stock market through 27 different Mutual funds. In my opinion, 27 Mutual funds is 27 too many collecting load fees, management fees, commission fees, operating and advertising fees. Diversity is important, but just as important is over-diversification. Also, in my opinion, $200,000 should not be put into more than 12 stocks, let alone 27 different Mutual funds.
2. Do not pay commission fees to purchase a stock.
If you are going to invest your hard earned dollars into a company, the least the company could do is provide you a way to invest in their company commission free – and they do!
3. Only purchase those companies that pay a dividend.
The same company that you invest in commission free should also offer you another incentive for you to invest – a dividend for the use of your money.
4. Only purchase those companies that have a history of raising their dividend every year.
The same company should continue rewarding you for your faith in their company by increasing the amount of their dividend every year. Rising dividends are also the proof that the company is doing something right.
5. Dollar-cost average into each stock position.
By dollar-cost averaging (buying the same stock at different prices through the years) you'll never pay too much for the company's stock, even if the initial purchase is at a 52 week high. Have all the dividends from each company rolled back into more shares of each company, until retirement. The companies you invest in should do this for you, automatically, commission free.
6. Forget making a profit; instead focus on the income provided from your stock portfolio.
That's right! Forget making a profit. The burden is now lifted - no more pressure on tryingto make a buck in the stock market. (Instead of trying to bend the spoon, that is impossible, instead just think of the spoonas – omigosh! - I'm in the Matrix!) When you focus on the amount of money your holdings are providing in dividends – and when those companies selected have a history of raising their dividendseach year – a lower stock price allows the dividends that are being rolled back into the stock to accelerate your income. The total value of your portfolio may go lower, but your income from that lower priced portfolio would increase dramatically. Profit by income!
7. Make every stock purchase with the intent that the purchase will be a long-term investment.
Do not trade in and out of your holdings. There have been many up and downs in the stock market. The down markets only accelerate your income. GE has raised their dividend for 28 years in a row. Why sell it? 100 shares of GE ten years ago has turned into 1200 shares today due to stock splits, and that is not counting how many shares you would have now if the dividends were being rolled back into more shares of the stock through those years.
8. Understand that a lower stock price, after your initial purchase may be a blessing in disguise.
The income from your stock holdings should grow every quarter, no matter what the total amount of your stock portfolio is worth. (If your Mutual fund declines in price from one year to the next and if your income is not increasing (accelerating) from that fund, why are you in that fund?) A company pays their dividend not on how much their stock is worth in the market place. For example, a company pays a quarterly dividend of 50 cents a share. A company has little control on how much its stock price is worth in the market place on any given day. You will receive 50 cents a share per quarter whether the stock price is at 50 dollars a share, or drops to $40 a share or goes up to $70. While the stock is down at $40 a share your dividend reinvestment is loading up on more shares.
9. Develop a savings plan to add to your holdings each quarter to help your dividend reinvestments to accumulate more shares on a dollar-cost averaging basis.
The savings could be as little as $5.00 a week. Why put that savings in a savings account at 1.2 percent, when there are so many companies out there that are paying a 4 to 5% dividend yield and increasing their dividend every year? And since none of the companies you are investing in charge a commission, all of that $60.00 a quarter you saved and invested would help your dividend reinvestments to dollar- cost average into your holdings. Every cent you save and invest would work toward your ROI (Return on Investment).
To read the PREFACE from the book 'The Stockopoly Plan' please visit http://www.thestockopolyplan.com
Start Planning for the Future Today
(ARA) - One of the greatest financial worries of most American families has always been, ?will we have enough money to live comfortably during retirement?? Families with children are also worried about whether they'll be able to afford to send their kids to college.
According to Trends in College Pricing -- a survey of over 3,200 U.S. post-secondary institutions conducted in 2002 -- when a child born in 2003 is ready for college, a four year degree at a public in-state institution will cost $83,169. Four year degrees at public out-of-state and private colleges will cost significantly more, $136,387 and $217,644 respectively. These figures account for a 5 percent college inflation rate.
?After the shock from seeing those numbers for the first time wears off, parents start looking into their options,? says John Walters, executive vice president for The Hartford's Investment Products Division. ?Some will choose to put away money in a savings account every month, others in CDs or mutual funds, but they're really doing themselves a disservice. All of those options are taxable investments and as a result, don't maximize earning potential.?
If you're looking for a college savings plan where your money will grow tax deferred,(1) there are two options out there: the federal government authorized Coverdell Education Savings Account and the 529 College Savings Plans, sponsored by each of the 50 states and certain private institutions.
Coverdell accounts allow you to put away up to $2,000 per year per beneficiary for education related expenses, but they are very limiting. You can have more than one Coverdell set up, but have to keep track of how much you put into each account per year. If you exceed the $2,000 maximum for all accounts, you will face tax consequences; and you can only contribute until the beneficiary is 18.
People who invest in 529 plans have more flexibility. The plans can be opened for anyone considering going to college, including children, relatives and parents. You can even set up an account for yourself. These college savings plans usually require only modest amounts to open; and you can add any sum up to the maximum that each plan authorized. Furthermore, you can gift up to $55,000 to a beneficiary once every 5 years without incurring a federal gift tax. (2)
All 50 states have passed legislation authorizing 529 plans, and most have a college savings plan and/or prepaid plan in operation. ?The nice thing about 529s is you don't have to live in or go to school in the state that is sponsoring your plan,? says Walters.
Hartford Life Insurance Company administers the SMART529 plans offered by the state of West Virginia. Thousands of people from all 50 states have enrolled in SMART529. The plan offers investors access to dozens of investment options, including individual fund options, static portfolios and age-based portfolios. It also offers net asset value transfers, meaning transfers from other 529 plans or Coverdell accounts can be made without an upfront sales charge.
For more information about SMART529 products, visit your financial advisor. If you want to get a better idea of how much college will cost when your child is ready to go, there's an online calculator on the Hartford Investor's Web site. Log onto www.hartfordinvestor.com. Under ?Education Center? on the left hand side of your screen, click on the link that says ?calculators,? then scroll down to the link that says SMART 529 college savings calculator.
According to Trends in College Pricing -- a survey of over 3,200 U.S. post-secondary institutions conducted in 2002 -- when a child born in 2003 is ready for college, a four year degree at a public in-state institution will cost $83,169. Four year degrees at public out-of-state and private colleges will cost significantly more, $136,387 and $217,644 respectively. These figures account for a 5 percent college inflation rate.
?After the shock from seeing those numbers for the first time wears off, parents start looking into their options,? says John Walters, executive vice president for The Hartford's Investment Products Division. ?Some will choose to put away money in a savings account every month, others in CDs or mutual funds, but they're really doing themselves a disservice. All of those options are taxable investments and as a result, don't maximize earning potential.?
If you're looking for a college savings plan where your money will grow tax deferred,(1) there are two options out there: the federal government authorized Coverdell Education Savings Account and the 529 College Savings Plans, sponsored by each of the 50 states and certain private institutions.
Coverdell accounts allow you to put away up to $2,000 per year per beneficiary for education related expenses, but they are very limiting. You can have more than one Coverdell set up, but have to keep track of how much you put into each account per year. If you exceed the $2,000 maximum for all accounts, you will face tax consequences; and you can only contribute until the beneficiary is 18.
People who invest in 529 plans have more flexibility. The plans can be opened for anyone considering going to college, including children, relatives and parents. You can even set up an account for yourself. These college savings plans usually require only modest amounts to open; and you can add any sum up to the maximum that each plan authorized. Furthermore, you can gift up to $55,000 to a beneficiary once every 5 years without incurring a federal gift tax. (2)
All 50 states have passed legislation authorizing 529 plans, and most have a college savings plan and/or prepaid plan in operation. ?The nice thing about 529s is you don't have to live in or go to school in the state that is sponsoring your plan,? says Walters.
Hartford Life Insurance Company administers the SMART529 plans offered by the state of West Virginia. Thousands of people from all 50 states have enrolled in SMART529. The plan offers investors access to dozens of investment options, including individual fund options, static portfolios and age-based portfolios. It also offers net asset value transfers, meaning transfers from other 529 plans or Coverdell accounts can be made without an upfront sales charge.
For more information about SMART529 products, visit your financial advisor. If you want to get a better idea of how much college will cost when your child is ready to go, there's an online calculator on the Hartford Investor's Web site. Log onto www.hartfordinvestor.com. Under ?Education Center? on the left hand side of your screen, click on the link that says ?calculators,? then scroll down to the link that says SMART 529 college savings calculator.
Subscribe to:
Posts (Atom)
