Archive for the 'investment strategy' Category

YOUR Stimulus Plan to Avoid Personal Recession- by David Newby

February 16, 2009

The U.S. government just approved a $797 BILLION stimulus plan Friday night. 25% of it is tax cuts and the rest is new spending. Very little of it is earmarked for housing and mortgage re-terming, which is the sector of the U.S. economy that started the recession in the first place. That plan is slated to come out this week.

BOTTOM LINE: no matter what your political views, how long do you think it will be before this spending helps you out financially? The government is likely going to have to raise taxes eventually to pay for all this new spending. When they do raise your taxes, how will that help you financially?

I strongly encourage you to put together your own PERSONAL stimulus plan to put more money in your pockets NOW and protect what you already have. It’s vital you take massive action to position yourself to not only survive… but to thrive through this recession.

Recessions are the best times to create wealth; protect what you have, seize opportunities, and focus on creating cash flow with your nest egg. That way no matter what the government does you’ll be reaping the rewards of your own stimulus plan. Get some tools for your personal stimulus plan here.

What defines your true ‘net worth’ in a market meltdown?

October 16, 2008

It’s interesting how different people are reacting to the world economy’s gyrations the last few weeks. If you’re planning to retire in the next few years, you might be worried or pissed off or both if you had most of your retirement funds in mutual funds.

I talked with a guy the other day whose friends’ stock broker told him to leave his money in the market in June when he wanted to move everything to cash for awhile. He listened to him, and now I’m sure he’s not glad he did. The whole “dollar cost average” philosophy definitely has alot of flaws- especially if you’re near retirement age.  These unprecedented world conditions are causing alot of stress around the world, and I have an important question for you: what truly defines what you’re worth?

If all you focus on is your material worth, you can get down on yourself pretty easily. Maybe you’re scared out of your mind, worried, or feeling like a loser because your wealth is disappearing before your eyes every day lately.

CNN did a story 2 days ago on a guy in California and two wives who attempted suicide in the last
month because of their economic dispair. I can relate to their feelings of hopelessness.

When I was 16 I came within 1 day of killing myself because I was addicted to stealing, had tried to stop for 2 years unsucessfully, and was about to go to trial for stealing a car. People thought I was a ‘good kid’ and I was ashamed of my secret struggle and what people would think of me if they knew who I really was. (all 3 people in the story worried people would think less of them if they knew about their situation too)

Fortunately for me, in my despair I chose to do something radical to solve my problem: I gave Christ a try to see if I could be delivered from my kleptomania. I was totally skeptical that God could help me, and since that day I haven’t had the urge to steal once. (what a relief!)

So what do the CNN story and my teenage story have to do with you?

I’m not suggesting that giving your life to God is the solution to your economic concerns. What I AM suggesting is that you should do something just as radical as I did to solve your dilemma.

First, realize that you’re NOT your mistakes, and that people in your life who truly love you will love you no matter how bad things may get. Second know that ANY amount of money can be replaced.

You’ve lost 40% of your nestegg in the past year? OK, Let me show you a quick scenario to safely get it back, and protect yourself over the next few bumpy years ahead.

Let’s say you make $200K/yr and pay 30% taxes, you have $500K of equity in your properties,and you have $500K in the stock market. You’re worth $1M now, and a year ago you had $600K of equity and $700K in the market. So you’re $300K down.

SCENARIO #1: You keep following traditional wisdom- pay your house off and keep your money in the market- and 2 years from now you’re worth $800K. You’ve lost another $100K of equity, and your stocks are down 20% to $400K. 3 years ago you were worth $1.3M, and now you’re worth $500K less! It might take you 6-7 more years to get back to where you were in 2007.

It’s no fun to think about, and I want you to be honest with yourself. Imagine yourself “going with the crowd” the next couple years and losing another 20% to 50% of your hard-earned money. Do you really want to take that chance? You are now.

SCENARIO #2: You decide to get in touch with your ‘inner billionaire’ and play the money game to win. You take bold action to protect your equity and diversify and upgrade your investments. You legally lower your taxes to 10%/yr, you protect your equity and make 6%/yr on it in the process, and you MAKE 25%/yr on your investments safely. You invest your extra $40K/yr tax savings.

Two years from now, you’ve made an extra $50K while protecting your equity, you bullet-proofed yourself from lawsuits while lowering your taxes, and you have $840K in investments. You’re worth $1.29M now- you made back all of your 2008 losses in just 2 years- and you’re making over $200K/yr on your investments! Most importantly, you’re $500K ahead of where you would’ve been following the crowd- you’re worth 62% more in just 2 years. While your peers are looking at sleepless nights and having to work their tails off just to get back to where they were in 2008, you sleep well knowing your financial future is is your hands.

Close your eyes and imagine this is your life two years from now. It feels pretty good, doesn’t it.

=====> THE BIG QUESTION <=====

You have a simple choice before you: either take bold action now to protect yourself and start playing to win like in Scenario #2 above, or do what the mediocre majority do and let Wall Street and Washington robber barrons lead you around by your nose like in Scenario #1 above.

What future will you choose for yourself now? If you’ve finally had enough of being pushed around, put your own personal bailout plan in place today and take control of your life.

Now is the time; hem and haw and ‘think this over’ another month and you may have 20% less money to your name. I know you don’t want that.

Get details on your personalized “Market Meltdown Solution” here