Joseph Hooper Weekly Update For Compound Stock Earnings
..... well .... it seems that all we hear from street financial advisors these days that the way to retire is to save money .... reduce your living style .... put your wife to work (actually the only good thought they have) .... get a job and work till your 80 years old .. etc. etc. ..... they have completely dismissed the concept of making more money or increasing returns on financial assets ....
.... fund money managers are in a complete frenzy for they cannot find any investments with returns of significance .....
.... as usual the financial industry is behind the door giving wrong advice at the wrong time .... as usual ...
... let’s look at some facts via excerpts from some published articles on the viability of reaching your retirement goals through saving .....
Provided by Bloomberg:
“Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said investors may be at a disadvantage for as long as 15 years as the U.S. keeps borrowing rates low to reduce its debt burden.
“Savers are being disadvantaged” when compared with debtors, Gross said during an interview on Bloomberg Television’s “Surveillance Midday” with Tom Keene. “What policy makers are trying to do is rebalance this imbalance, in terms of too much debt and too attractive rates on savings. It’s basically called financial repression. We call it pocket picking.”
NEW YORK (AP) – “The safest corporate debt isn't looking so smart anymore.
“Companies deemed good for the money are raising trillions selling bonds to investors who can't seem to get enough of them. It looks like a great deal for both parties -- until you consider the details.
Some bonds are throwing off interest so puny that investors are already losing money to inflation. Others pay higher rates but won't return your money for more years than you're likely to live. Johnson & Johnson just sold $4.4 billion worth of debt with fixed rates as low as 0.7 percent, 2.5 percentage points less than inflation. The prospect of near-free money was so irresistible to Google Inc., it decided to sell $3 billion worth, even though it already had more than 10 times as much cash at its disposal. And Norfolk Southern Corp. convinced investors to lend it $400 million for 100 years. "When companies start putting out 100-year bonds, you can bet we've hit lows," says Richard Lehmann, a Miami money manager with $100 million under management. He has largely shunned investment grade corporate bonds. "This market has gone from stupid to ridiculous.”
..... so what is left to do? .... ...... well, some of the greatest times in US history is coming upon us...
.... there are going to be fantastic opportunities to make millions .... Check out this thought from the Daily Ticker .....
“The world maybe headed for another recession, but there seems to be no better time to be a millionaire or billionaire. Global wealth hit a record $121.8 trillion high in 2010 or $20 trillion above pre-recession levels, according to a new report by Boston Consulting Group (BCG). And, the number of millionaire households jumped 12.2 percent to about 12.5 million. The trend will continue up to about $162 trillion by 2015, "driven by the performance of the capital markets and the growth of GDP in countries around the world. Wealth will grow fastest in emerging markets," says the report. There are a couple of bright spots for all of you out there that do not fall in to the uber-rich category. The United States is by far home to the most millionaires, according to BCG. In 2010, 5.2 million households in the U.S. had more than a million in assets under management compared to 1.5 million in Japan and 1.1 million in China. And here's the really good news. If you want to make your millions, there is no better time than now, says Steve Siebold, author of the new book How Rich People Think. In the next five years, he predicts the United States will see more self-made millionaires emerge than in any other time in history. "This is the easiest time to become a millionaire in America than I have ever seen by far and I think the wealthy see that an that is why they are getting wealthier," he tells Aaron in the interview above. "But, on the other side, anyone has the chance to become a millionaire in America, more right now than ever before." Why? Because this country has got lots of problems that are in dire need of solutions.
There are all these new ways to get rich, say Siebold. "There are so many new problems to solve. There are so many new opportunities that did not exist before the great recession." Over the course of 27 years Siebold interviewed hundreds of millionaires and high net worth individuals. His book mixes the wisdom and advice of all these people who have created self-made fortunes. Most people don't think like millionaires because we don't look at money in the right way, he says. We tend to learn about money at a very early age from people who don't have any. "We almost have no chance from the beginning because we are programmed by people that don't have any money and don't understand how to think about it," he says.
The Millionaire Mindset There are key differences between the way rich people look at money and the way the rest of us do, according to Siebold:
1.Wealthy people look at money in positive terms and as an opportunities where as most of us live in fear of being laid off or not having enough money for retirement.
2.Instead of worrying about running out of money, soon to be millionaires are thinking how to make more money. World-class performers are finding problems that are profitable to solve. They know that just because a solution hasn't been discovered yet doesn't mean it doesn't exist.
3.Millionaires tend to move towards what they want, rather than move away from what they don't want, which is what the masses most often do.
4.World-class thinkers have the guts to be optimistic right now in these shaky times and reject the middle-class cynicism that plagues the masses. It's not comfortable for a millionaire in the making to forge ahead when everyone around him or her is negative, cynical and unsupportive, yet the great ones push forward and are rewarded with riches for the rest of their lives. Siebold's bottom line: "Take inventory of your consciousness and the way you think about money and ask yourself: Is this the way a rich person thinks or someone in the middle class thinks about money?"
... now .... Not too many of us are going to be inventors and such .... But we can invest in those companies when they go public and then practice our covered call/LEAPS/Credit Spreads/Momentum Trades etc. etc.....
.... in other words think like a winner and not a loser ..... ..... all the advice on how to retire is negative provided by The New York Times:
“Think of the last 10 pieces of personal finance advice you've read. Do any of these sound familiar?
• Cut back on lattes! • The world's top 10 coupons • Don't go on vacation this year!If you boil all the advice down, there are just two ways to improve your financial situation: earn more or cut costs. So why don't more personal finance experts talk about earning more? Because most of them don't know how.” Compound Stock Earnings.
..... don’t think like a loser think like a winner ..... don’t let a loser handle your money ..... you handle you money ....
..... the sad fact is that “saving for retirement” is such a lame thought ....
.... If most folks had the discipline to save ... there would not be so many with no money .... it is just not going to happen....
..... so all the advice from the street types is just falling on deaf ears .... It is just a mental exercise that will never work .... but the street wants you to think it will
.... The only thing that works is using an investment strategy that allows you to start with a minimum investment ... like the CSE techniques .... about $10,000
.... and compound it over a short time ..... 10 years .....to grow into approx $3,500,000 .....
.... it is doable .... it is affordable .... it is human friendly .....It works and people will do it because they don’t have to live like paupers to save a small pittance to try to live on made possible on by denial and misery .....
... so go for it ... think right .... Don’t be poor or hang out with poor folks .... remember poor folks cannot help anybody... much less you.... Compound Stock Earnings
